City of Naples General Employees', Police, & Firefighters' Retirement

City of Naples General Employees’, Police, & Firefighters’ Retirement System Lazard International Equity Select Plus ADR (ACW ex-US)

April 27, 2018

Michael Powers Managing Director, Portfolio Manager/Analyst

Frank Sposato Director

This presentation and all research and materials enclosed are property of Lazard Asset Management LLC. 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 completeness. All opinions expressed herein are as of the date of this presentation and are subject to change. Table of Contents

I. Firm Overview, Investment Process, Philosophy and Objectives

II. Market Overview & Portfolio Review

III. Outlook

IV. Emerging Markets Equity Portfolio

V. Summary

VI. Appendix

− Biographies − Disclosures

1 Lazard Asset Management TAB Lazard Asset Management

NORTH AMERICA EUROPE Boston Dublin Montreal Frankfurt New York Geneva San Francisco Hamburg Toronto London Madrid Milan Zurich

Hong Kong Seoul Singapore Sydney Tokyo Dubai ASIA PACIFIC MIDDLE EAST

1848 750+ 300+ 14 $222.4 Lazard Founded Employees1 Investment Personnel Countries Billion AUM1

1 As of 31 December 2017. Includes those of Lazard Asset Management LLC (New York) and its affiliates, but do not include those of Lazard Frères Gestion (Paris) or other asset management businesses of Lazard Ltd. 3 Lazard Asset Management Business Model

Lazard conducts two primary businesses:

. Asset Management

. Financial Advisory

Our central focus is on providing advice, whether it is in the form of investment management, or in connection with a wide range of strategic and financial matters

Lazard’s advisory model differentiates us from many global financial institutions

4 Lazard Asset Management Lazard’s Investment Organization

Ashish Bhutani Chief Executive Officer

John Reinsberg James Donald Ron Temple International/Global Equities Emerging Market Equity Strategies Multi Asset/US Equity Strategies Fixed Income

Oversight Committee Investment Council Management body for the investment platform that Senior investment professionals focused on: provides: • Providing investment leadership and sharing insight • Oversight for investment processes and products • Monitoring communication among investment • Reporting line for investment professionals platforms and regions

5 Lazard Asset Management Assets Under Management

By Client Type By Investment Mandate

Multi Asset Alternatives 3.2% 1.3% Global Equity Real Assets 11.8% 6.1%

Other² 19.9%

Corporate Fixed Income 39.0% 12.2% Individual International 8.6% Equity US Equity 24.5% 11.4% Endowments & Foundations Public/ Asia-Pacific Emerging 3.5% Government Equity Markets Equity Labor/Taft- 21.5% 4.2% 22.8% Hartley European 3.2% Insurance Equity 4.2% 2.4%

Total Firm Assets Under Management1: $222.4 billion

1 As of 31 December 2017. Assets under management include those of Lazard Asset Management LLC (New York) and its affiliates, but do not include those of Lazard Frères Gestion (Paris) or other asset management businesses of Lazard Ltd. 2 Other represents clients invested in hedge funds, mutual funds, and other investment vehicles for which client type is not reported. 6 Lazard Asset Management Assets Under Management Global/International Equity

Lazard Global/International Equity Assets (in US$ billions) Japanese Equity $4.1 Australian Equity Korean Equity $5.1 $0.1 Asian Equity U.K. Equity $0.3 $2.0 Global Equity $27.0 European Equity $3.5

Global Listed Infrastructure $13.4 Emerging Markets Equity $52.2

International Equity $54.4

Total Global/International Equity Assets: $162.0 billion; 72.8% of Total Firm Assets

As of 31 December 2017. 7 Lazard Asset Management Lazard Equity Investment Resources Sector Expertise

Financials Health Care Nigel Barrett Thurl Abrahams Dmitri Batsev Jelena Boskovic Daniel Breslin Rhett Brown Adrian Cheung John Mariano Elias Chrysostomou Henry (Ross) Seiden Gautam Garg Nicholas Sordoni Philipp Hofflin Jay Leupp Mark Lien Consumer Jonathan Morris Industrials Aaron Binsted Stephen Russell Matthew Bills Christopher Blake Guillaume Samama Jimmie Bork Thomas Boyle Rahwa Senay Antoine Champenier Rohit Chopra Monika Shrestha Michael DeBernardis Elizabeth Chung Ronald Temple Lada Emelianova Nathan Cockrell Peter Gillespie Myla Cruz Kevin Matthews Marina Erskine-Leacock Erik McKee Jay Levy Keith Mori Jerry Liu Andrei Morosanu Jake (Jaeyub) Myung Kevin O'Hare Dennis Neveling Dylan Petrich Rob Osborn Power Technology, Media, David Pizzimenti William Parry Daniel Rozier Sookyum (Celine) Woo Georg Benes Telecom Victoire Spahn Shuichi Yoshimura Bertrand Cliquet Giles Edwards Jason Tin James Donald Donald Floyd Philippe Tison Alistair Godrich Jenny Hardy Peter Hunsberger Robert Horton Eugene Krishnan Alex Ingham Matthew Landy Ario Kishida Neil Millar Edward Lund Jacob (Ryan) Mims Bret Miller John Mulquiney Takayuki Natsume Warryn Robertson Paul Rogers Anthony Rohrlach Jeremy Taylor Ben Wulfsohn Christopher Whitney Tim Zhao

As of 31 December 2017. 8 Lazard Asset Management Portfolio Management Lazard International Equity Select

Portfolio Management Team Focused Resources

Years in Years at Years in Years at Joined Years in International Emerging Markets Industry Lazard Industry Lazard Lazard Industry Eduardo Abreu 12 9 Thomas Boyle 20 7 Aaron Barnfather 23 9 Rohit Chopra 21 18 Nigel Barrett 28 10 Elizabeth Chung 23 7 Michael G. Fry Jimmie Bork 6 1 Myla Cruz 9 9 Managing Director, 2005 36 Jelena Boskovic 10 7 James Donald 34 21 Portfolio Manager/Analyst Elias Chrysostomou 15 7 Lada Emelianova 19 7 Nathan Cockrell 22 10 Donald Floyd 22 6 Marina Erskine-Leacock 16 13 Peter Gillespie 25 10 Robert Failla 24 14 Robert Horton 24 6 Michael Bennett Alistair Godrich 9 9 Arif Joshi 19 7 Managing Director, Jenny Hardy 6 2 Mark Lien 27 9 1992 31 Portfolio Manager/Analyst Peter Hunsberger 28 26 John Mariano 19 7 Robin Jones 15 14 Andrei Morosanu 18 18 Ario Kishida 28 6 Kevin O'Hare 26 16 Mark Little 25 20 Stephen Russell 20 6 Edward Lund 2 2 Monika Shrestha 20 14 Giles Edwards, CFA, CIMA Neil Millar 11 11 Sookyum (Celine) Woo 13 7 Senior Vice President, Jonathan Morris 28 9 Ben Wulfsohn 26 16 2008 14 Portfolio Manager/Analyst Dennis Neveling 11 11 John Reinsberg 36 25 Daniel Rozier 6 6 Adam Rubinstein 12 12 Guillaume Samama 7 7 Kevin J. Matthews, CFA Paul Selvey-Clinton 11 3 Managing Director, 2001 16 Victoire Spahn 10 7 Jeremy Taylor 21 14 Portfolio Manager/Analyst Barnaby Wilson 19 18 Regional Resources Michael Powers Managing Director, 1990 27 Portfolio Manager/Analyst Europe US Asia

Team membership is current as of the date of this document. Personnel data are calculated as of year-end 2016; YTD 2017 experience/tenure is not reflected. 9 Lazard Asset Management Investment Philosophy, Objectives and Process

Our Investment Philosophy Our Investment Process . Focus on those companies that are financially productive and inexpensively valued Idea Fundamental Portfolio . Add value through stock selection and portfolio Sourcing Analysis Construction management

Our Investment Objectives Risk/Reward Analysis . Outperform relevant benchmark over a full market Extensive Company Research cycle

. Participate in rising markets; preserve capital in Lazard’s investment process for research and portfolio falling markets construction is presented here as sequential steps; in practice the process is neither static, nor sequential, but ongoing. . Outperform our investment competitors . Seek consistent results

Lazard's investment process is presented here in sequential steps for illustrative purposes only. In practice, the process is not sequential and will, as needed, weigh certain criteria over others. 10 Lazard Asset Management Investment Process Example Rexam Plc

Idea Sourcing: Return on Capital 2013 Valuation Financial . Lazard screening process identifies Rexam as attractive investment candidate 2012 (%) 2013 (%) P/E EV/EBITDA Risk . Consumer analyst confirms Rexam’s relative attraction on several metrics v. peers Ball Corp 13.5 14.0 11.0 8.0 medium • Lazard as a long-term investor in Ball Corp (direct competitor to Rexam) has Crown Holdings 17.0 18.0 10.8 7.8 medium developed insight into the packaging industry Average 15.3 16.0 10.9 7.9 medium Fundamental Research View: Rexam Plc 10.0 12.5 8.0 5.3 low . Rexam is well positioned as global leader in beverage can oligopoly (23% market share) As of September 2011 . In comparison to Ball Corp., Rexam opportunity to increase returns, operating margins and realize more consistent return of capital to shareholders EBIT Breakdown 2008 EBIT Breakdown 2013 Plastics, . Met with new Rexam’s CEO Plastics, 10% 34% • Addressed operating margin and capital deployment opportunities Beverage Beverage • Stressed importance of cash returns to shareholders Cans, Cans, 66% 90% . Follow-up meetings and calls with Rexam’s management team (CEO/CFO) . Management view on cash returns to shareholders changed direction . Lazard industry knowledge and insight led to differentiated view on Rexam fundamentals: As of 2008 As of February 2012 • Lazard expectation of stronger underlying business fundamentals and improved capital returns Operating margin • Improved business mix, return profile and cash returns is, in our view, likely to lead 14% to a meaningful re-rating 12%

Portfolio Construction: 10%

. Comparison with other stocks in the portfolio (relative valuation, conviction) 8% . Initial purchase in August/September 2011, added on improved margins and returns 6% highlighted in November 2011 results H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 08 08 09 09 10 10 11 11 12 12 13 13 . Significant add in February 2012 after strong operating results, announced sale of plastics business REX (bev cans) CCK BLL As of July 2011

Source: Company Reports, LAM Estimates The information provided in this material is for illustrative purposes only and should not be considered a recommendation or solicitation to purchase or sell any security. Estimated data is not a promise or guarantee of future results and is subject to change. There is no assurance that any securities referenced herein will remain in the account’s portfolio or that securities sold have not been repurchased. The securities discussed may not represent the account’s entire portfolio. It should not be assumed that any of the referenced securities were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. 11 Lazard Asset Management Three Levels of Risk Monitoring A Solid Foundation

Risk Management

International Equity Select Portfolio Management Oversight Committee Risk Management Team Team

. Stock – accounting validation . Monitors investment strategy . Multi-factor sensitivity analysis . Diversification and portfolio . Liquidity analysis . Portfolio construction . Attribution analysis • Corporate governance • Macro environment • Political factors

12 Lazard Asset Management Distinguishing Features Lazard International Equity Strategies

• Robust bottom up relative value culture and process . Buy stocks, not markets . Relative Value trade-off between financial productivity and valuation . Borderless alpha generation . Strong emerging markets expertise

• Exploiting market inefficiencies . Sustainability of returns . Structural change . Short term focus on news flow

• Flexibility of implementation . Market Cap . Geography . Sectors

• Historically consistent and attractive pattern of performance . Downside protection with upside participation . Attractive risk-adjusted returns

Information and opinions are current as of the date of this document. 13 Lazard Asset Management TAB International Market Summary – 2018Q1

• Higher long-term rates briefly unnerved investors early in the quarter • Trade war concern dampened sentiment later in the quarter • Negative developed market local returns somewhat offset by positive currencies • International corporate profits continue to exceed market returns • Tech, EM and growth stocks continued to lead • Stock selection drove Q1 and 1-year outperformance as investors rewarded fundamentals

• MSCI EAFE Index: -1.5% QTD (+14.8% 1 Year)

• MSCI ACW ex-US Index: -1.2% QTD (+16.5% 1 Year)

Corporate earnings accelerating, but caution warranted given risks

Information and opinions as of 31 March 2018 and are subject to change. The indices listed above are unmanaged and have no fees. It is not possible to invest in an index. The MSCI EAFE Index (Europe, Australasia, Far East) is a free-float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the United States and Canada. The MSCI All Country World ex-US Index (ACWI ex-US) is a free-float-adjusted market capitalization–weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. 15 Lazard Asset Management The performance quoted represents past performance. Past performance is not a reliable indicator of future results. Source: Lazard, MSCI Market Performance (US Dollar) – 2018Q1 MSCI ACWI ex-US

MSCI ACWI ex-US Sector Performance MSCI Country Performance

12.4 Brazil 1.8 Information Technology 9.4 Russia 5.4 Italy 1.2 Utilities 1.8 China 1.4 MSCI Emerging Markets -0.3 Health Care 1.0 Netherlands 0.8 Japan -1.0 Consumer Discretionary 0.3 France -0.5 South Korea -1.1 Financials -0.8 USA -1.0 MSCI ACWI -1.2 MSCI ACWI ex-US -1.2 MSCI ACWI ex-US -1.4 Hong Kong -1.6 Industrials -1.5 MSCI EAFE -1.7 Spain -1.7 Real Estate -2.0 MSCI Europe -2.4 Sweden -1.8 Energy -3.6 Germany -3.9 United Kingdom -2.8 Consumer Staples -4.3 Switzerland -5.9 Ireland -2.9 Materials -6.2 Australia -7.0 India -4.1 Telecom Services -7.4 Canada -6 -4 -2 0 2 4 -10 -5 0 5 10 15 % Return % Return

As of 31 March 2018 All performance presented in USD The performance quoted represents past performance. Past performance is not a reliable indicator of future results. For illustrative purposes only. This information is not representative of any product or strategy managed by Lazard. The index is unmanaged and has no fees. One cannot invest directly in an index. Source: MSCI 16 Lazard Asset Management Performance Summary City of Naples General Employees’ Retirement System

Performance as of 31 March 2018 (%) Annualized Since Inception 2018Q1 1 Year 3 Years 5 Years 10 Years 30 Nov 2000 City of Naples General Employees’ Retirement System 0.85 18.64 7.35 6.69 4.30 5.60 Linked Index¹ -1.18 16.53 6.18 5.89 2.70 4.80 Excess Returns (bps) +203 +211 +117 +80 +160 +80

Lazard Emerging Markets Equity Portfolio (Net) 2.05 18.33 8.62 3.86 3.47 n/a MSCI Emerging Markets Index 1.42 24.93 8.81 4.99 3.02 n/a

Calendar Year Performance (%)

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 City of Naples General Employees’ Retirement System 26.83 1.58 -0.76 -5.94 16.23 22.56 -8.72 10.42 28.01 -36.62 Linked Index¹ 27.19 4.50 -5.66 -3.87 15.29 16.83 -13.71 11.15 41.45 -45.53 Excess Returns (bps) -36 -292 +490 -207 +94 +573 +499 -73 -1344 +891

Lazard Emerging Markets Equity Portfolio (Net) 28.02 20.52 -20.16 -4.16 -0.80 22.36 -17.75 22.81 69.82 -47.88 MSCI Emerging Markets Index 37.28 11.19 -14.92 -2.19 -2.60 18.22 -18.42 18.88 78.50 -53.33

Portfolio Composition as of 31 March 2018 Market Value % of Portfolio

Equity $ 2,969,063 72.3%

Lazard Emerging Markets Equity Portfolio $ 994,666 24.2%

Cash and Equivalents $ 143,002 3.5%

Total Portfolio $ 4,106,731 100.0%

Reporting Currency: US Dollar 17 Lazard Asset Management 1 The benchmark is now a linked index consisting of the MSCI EAFE Index from inception through 3 April 2007 and the MSCI ACWI ex-US thereafter. Performance is presented gross of fees unless indicated otherwise. The performance quoted represents past performance. Past performance is not a reliable indicator of future results. Performance Summary City of Naples Police Officers’ Retirement System

Performance as of 31 March 2018 (%) Annualized Since Inception 2018Q1 1 Year 3 Years 5 Years 10 Years 30 Nov 2000 City of Naples Police Officers’ Retirement System 0.84 18.66 7.36 6.69 4.29 5.66 Linked Index¹ -1.18 16.53 6.18 5.89 2.70 4.80 Excess Returns (bps) +202 +213 +118 +80 +159 +86

Lazard Emerging Markets Equity Portfolio (Net) 2.05 18.33 8.62 3.86 3.47 n/a MSCI Emerging Markets Index 1.42 24.93 8.81 4.99 3.02 n/a

Calendar Year Performance (%)

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 City of Naples Police Officers’ Retirement System 26.86 1.58 -0.76 -5.75 15.93 22.45 -8.70 10.47 28.03 -36.67 Linked Index¹ 27.19 4.50 -5.66 -3.87 15.29 16.83 -13.71 11.15 41.45 -45.53 Excess Returns (bps) -33 -292 +490 -188 +64 +562 +501 -68 -1342 +886

Portfolio Composition as of 31 March 2018 Market Value % of Portfolio

Equity $ 2,643,128 72.0%

Lazard Emerging Markets Equity Portfolio $ 888,790 24.2%

Cash and Equivalents $ 137,971 3.8%

Total Portfolio $ 3,669,889 100.0%

Reporting Currency: US Dollar 18 Lazard Asset Management 1 The benchmark is now a linked index consisting of the MSCI EAFE Index from inception through 3 April 2007 and the MSCI ACWI ex-US thereafter. Performance is presented gross of fees unless indicated otherwise. The performance quoted represents past performance. Past performance is not a reliable indicator of future results. Performance Summary City of Naples Firefighters’ Retirement System

Performance as of 31 March 2018 (%) Annualized Since Inception 2018Q1 1 Year 3 Years 5 Years 10 Years 30 Nov 2000 City of Naples Firefighters’ Retirement System 0.86 18.70 7.39 6.71 4.32 5.67 Linked Index¹ -1.18 16.53 6.18 5.89 2.70 4.80 Excess Returns (bps) +204 +217 +121 +82 +162 +87

Lazard Emerging Markets Equity Portfolio (Net) 2.05 18.33 8.62 3.86 3.47 n/a MSCI Emerging Markets Index 1.42 24.93 8.81 4.99 3.02 n/a

Calendar Year Performance (%)

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 City of Naples Firefighters’ Retirement System 26.88 1.58 -0.74 -5.87 16.18 22.51 -8.72 10.45 27.98 -36.54 Linked Index¹ 27.19 4.50 -5.66 -3.87 15.29 16.83 -13.71 11.15 41.45 -45.53 Excess Returns (bps) -31 -292 +492 -200 +89 +568 +499 -70 -1347 +899

Portfolio Composition as of 31 March 2018 Market Value % of Portfolio

Equity $ 2,882,656 72.6%

Lazard Emerging Markets Equity Portfolio $ 960,812 24.2%

Cash and Equivalents $ 124,745 3.1%

Total Portfolio $ 3,968,213 100.0%

Reporting Currency: US Dollar 19 Lazard Asset Management 1 The benchmark is now a linked index consisting of the MSCI EAFE Index from inception through 3 April 2007 and the MSCI ACWI ex-US thereafter. Performance is presented gross of fees unless indicated otherwise. The performance quoted represents past performance. Past performance is not a reliable indicator of future results. Attribution by Sector Lazard International Equity Select ADR vs. MSCI EAFE Index

(bps) 1 Year: 500 376 400 300 200 131 112 66 66 60 55 100 30 6 0 -100 -4 -7 -25 -200 -116

Telecom Real Consumer Information Consumer Health Financials Industrials Services Estate Discretionary Technology Energy Utilities Materials Staples Care Cash Total Active Weight (%)1 -6.3 6.4 0.0 -0.4 1.1 1.9 0.1 -1.9 -5.6 1.2 -0.6 4.0 Sector Allocation (bps) 8 16 5 2 4 26 4 5 -21 -3 1 -25 20 Stock Selection (bps) 124 96 61 64 56 30 26 1 18 -4 -116 0 356 Total Effect (bps) 131 112 66 66 60 55 30 6 -4 -7 -116 -25 376 2018Q1: (bps) 200 159 150 100 61 60 50 19 19 22 994 3 0 -4 -50 -19 -24

Telecom Consumer Real Health Consumer Information Financials Industrials Materials Services Staples Energy Estate Care Discretionary Utilities Technology Cash Total Active Weight (%)1 -6.6 8.3 -5.7 -0.7 -0.1 0.4 -0.3 -0.7 1.3 -1.6 1.2 4.5 Sector Allocation (bps) 4012000-1-22 -622233 Stock Selection (bps) 57 60 7 19 9 9 5 5 -6 -13 -27 0 126 Total Effect (bps) 61 60 19 19 9 9 4 3 -4 -19 -24 22 159

As of 31 March 2018. All data shown in USD and reflects rounding. 1 Active weight reflects the Lazard International Equity Select ADR average weight subtracted by the MSCI EAFE Index average weight. The allocations mentioned are based upon a portfolio that represents the proposed investment for a fully discretionary account. Allocations are subject to change. Attribution is based upon a representative portfolio and is versus the benchmark noted. Attribution analysis is provided for illustrative purposes only, as values are calculated based on 20 Lazard Asset Management returns gross of fees. Performance would be lower if fees and expenses were included. Past performance is not a reliable indicator of future results. This information is for illustrative purposes only and is supplemental to the “GIPS® Composite Information.” Source: Lazard, MSCI Attribution by Region Lazard International Equity Select Plus ADR (ACW ex-US) vs. MSCI ACWI ex-US

1 Year: (bps) 300 181 209 200 131 100 59 44 12 0 -100 -35 -38 -200 -144

Continental Emerging Japan Asia ex-Japan North America Europe Middle East United Kingdom Markets Cash Total Active Weight (%)1 -2.5 -5.2 -4.2 1.4 -0.4 8.4 -1.3 3.7 Region Allocation (bps) -4 45 49 -3 12 -36 -4 -38 21 Stock Selection (bps) 185 86 9 47 0 1 -140 0 188 Total Effect (bps) 181 131 59 44 12 -35 -144 -38 209

2018Q1: (bps) 200 174

150

100 43 39 50 28 26 15 12 10 1 0 Continental Emerging Asia ex-Japan Japan Europe North America United Kingdom Markets Middle East Cash Total Active Weight (%)1 -4.7 -3.4 4.0 -4.1 6.3 -1.5 -0.3 3.6 Region Allocation (bps) 12 -5 2 27 -18 -3 1 15 31 Stock Selection (bps) 31 44 27 -1 30 13 0 0 143 Total Effect (bps) 43 39 28 26 12 10 1 15 174

As of 31 March 2018. All data shown in USD and reflects rounding. 1 Active weight reflects the Lazard International Equity Select Plus ADR (ACW ex-US) average weight subtracted by the MSCI ACWI ex-US average weight. *During the one year period, the portfolio's weighted emerging market return was +18.3% versus +24.9% for the MSCI Emerging Markets index. During the 1st quarter of 2018, the portfolio’s weighted emerging market return was +2.0% versus +1.4% for the MSCI Emerging Markets index. The allocations mentioned are based upon a portfolio that represents the proposed investment for a fully discretionary account. Allocations are subject to change. 21 Attribution is based upon a representative portfolio and is versus the benchmark noted. Attribution analysis is provided for illustrative purposes only, as values are calculated based on Lazard Asset Management returns gross of fees. Performance would be lower if fees and expenses were included. Past performance is not a reliable indicator of future results. Source: Lazard, MSCI Foreign Currencies – 2018Q1

(%)

10 8.1 8 5.9 6 4.6 4.6 3.7 4 2.8 2.7 2.5 2.4 2.2 1.9 1.9 1.9 2 0.4 0.1 0

-2 -1.7 -2.1 -2.4 -4 Euro Swiss Franc British Pound Danish Krone Brazilian Real Mexican Peso Japanese Yen Swedish Krona Canadian Dollar Australian Dollar Singapore Dollar Singapore Norwegian Krone Taiwanese Dollar Taiwanese South Korean Won South Korean South African Rand New Zealand Dollar New Zealand MSCI EM Currency Index MSCI EAFE Currency Index MSCI EAFE Currency

Foreign Currencies continue to be a tailwind in 2018

As of 31 March 2018 Currencies presented constitute Bloomberg’s “Major Currencies” and versus USD. The MSCI EAFE Currency Index and the MSCI EM Currency Index sets the weights of each currency equal to the relevant weight in the MSCI EAFE Index and MSCI EM Index, 22 Lazard Asset Management respectively. The indices listed are unmanaged and have no fees. It is not possible to invest in an index. The performance quoted represents past performance. Past performance is not a reliable indicator of future results. Source: Bloomberg High Exposure to UK Domiciled Stocks Lazard International Equity Select

% of Revenue Generated Outside of the United Kingdom

British American Tobacco

Shire Royal Dutch Shell

Prudential

Unilever

Informa

Compass Ashtead

Ferguson

Aon

RELX

0% 25% 50% 75% 100%

Most of “UK” Exposure is Outside the UK

Source: Most Recent Annual Reports, Factset, Lazard Estimates The securities mentioned are not necessarily held by Lazard for all client portfolios, and their mention should not be considered a recommendation or solicitation to purchase or sell these securities. 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 23 Lazard Asset Management 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. Japan High correlation between Yen/USD and Nikkei 225

Japanese Yen per U.S. Dollar Nikkei 225 (rhs)

130 ¥26,000 ¥24,000 120 ¥22,000 ¥20,000 110 ¥18,000 100 ¥16,000 ¥14,000 90 ¥12,000 ¥10,000 80 ¥8,000 70 ¥6,000 Mar‐11 Mar‐12 Mar‐13 Mar‐14 Mar‐15 Mar‐16 Mar‐17 Mar‐18 Positives: Negatives: • Japan benefits from global growth • Strong yen, Abe trouble and trade concerns • Employment is strong • Wage growth is weak • BOJ is accommodative • Hints of tapering • Tax cut incentive • Many companies reluctant to raise costs for short-term tax break • GPIF driven corporate governance • Rising cash balances are hurting ROE’s

Alpha driven by stock selection

Information and opinions as of 31 March 2018 and are subject to change. The performance quoted represents past performance. Past performance is not a reliable indicator of future results. Source: Bloomberg 24 Lazard Asset Management Portfolio Direction Sector and Regional Active Weights

International Equity Select Plus ADR (ACW ex-US) (%)

Sector¹ vs 31 Dec 31 Mar YTD Change in Region vs 31 Dec 31 Mar YTD Change in MSCI EAFE 2017 2018 Active Weight MSCI ACWI ex-US 2017 2018 Active Weight Continental Financials -6.2 -5.5 0.7 3.7 4.7 1.0 Europe

Energy 0.5 0.9 0.4 Emerging Markets -1.9 -1.1 0.8 Information 1.5 1.8 0.3 Technology North America -4.4 -4.0 0.4

Industrials 9.3 9.5 0.2 Asia ex-Japan -4.9 -4.6 0.3

Materials -5.6 -5.5 0.1 Middle East -0.3 -0.3 0.0

Real Estate -0.2 -0.3 -0.1 United Kingdom 7.2 6.4 -0.8 Consumer Staples 0.2 0.1 -0.1 Japan -2.6 -3.9 -1.3 Utilities -1.5 -1.7 -0.2 Cash & 3.3 2.7 -0.6 Equivalents Health Care 0.2 -0.1 -0.3

Consumer 2.0 1.6 -0.4 Discretionary

Telecom Services -0.4 -0.9 -0.5

As of 31 March 2018 1 Represents the Portfolio re-weighted excluding Lazard Emerging Markets Equity Portfolio and cash. The allocations mentioned are based upon a portfolio that represents the proposed investment for a fully discretionary account. Allocations are subject to change. Allocations are subject to change. Source: Lazard, MSCI 25 Lazard Asset Management Holdings by Sector City of Naples General Employees’ Retirement System

% of % of MSCI % of % of MSCI % of % of MSCI Portfolio1 EAFE Portfolio1 EAFE Portfolio ACWI ex-US Industrials 9.6 Consumer Industrials 24.2 14.6 Emerging Markets 24.2 25.5 Discretionary 14.3 12.6 ABB Lazard Emerging Markets Equity Portfolio (Instl) Information Compass Ashtead 1.8 Technology Continental Assa Abloy Informa Canadian National Railway Michelin Deutsche Post Consumer 1.7 Richemont Ferguson Discretionary Ryohin Keikaku Komatsu Sony Makita Energy 0.9 Valeo RELX Consumer Staples 11.2 11.1 Ryanair Anheuser-Busch InBev Safran Consumer British American Tobacco VINCI 0.1 Staples Carlsberg Wolters Kluwer Kao Information Unilever Technology 8.4 6.6 Health Care -0.2 Energy 6.2 5.3 Accenture Royal Dutch Shell SAP Statoil Tokyo Electron Real Estate -0.3 Suncor Ubisoft Financials 15.4 21.0 Materials 2.5 8.0 ABN AMRO BHP Aon Real Estate 3.2 3.5 Telecom Services -0.8 DBS Daiwa House Nordea Telecom Services 3.0 3.8 Prudential KDDI Utilities -1.7 Sampo Telenor SMFG Utilities 1.6 3.3 Health Care 10.0 10.2 Red Electrica Materials -5.5 Fresenius Total Portfolio 100.0 100.0 Genmab Medtronic Novartis Financials -5.6 Shire

-10 -5 0 5 10 15

Active Weight (%)

As of 31 March 2018 1 Represents the Portfolio re-weighted excluding the Lazard Emerging Markets Equity Portfolio and cash. Cash is 3.5% of the portfolio. Allocations and security selection are subject to change. The information provided in this material should not be considered a recommendation or solicitation to purchase or sell any security. There is no assurance that any securities referenced herein will remain in the account’s portfolio or that securities sold have not been repurchased. The securities discussed may not represent the account’s entire portfolio. It should not be assumed that any of the referenced securities were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. Please note that cash is not viewed as a strategic asset class. 26 Lazard Asset Management Source: Lazard, MSCI Holdings by Country City of Naples General Employees’ Retirement System

% of % of MSCI % of % of MSCI % of % of MSCI Portfolio ACWI ex-US Portfolio ACWI ex-US Portfolio ACWI ex-US United Kingdom 6.1 Australia 1.8 4.5 Japan 12.9 16.8 Switzerland 3.6 5.3 BHP Daiwa House ABB Austria 0.0 0.2 Kao Novartis Belgium 1.6 0.8 KDDI Richemont Anheuser-Busch InBev Komatsu United Kingdom 17.9 11.8 Canada 2.2 6.2 Makita Aon Continental Europe 4.5 Canadian National Railway Ryohin Keikaku Ashtead Suncor SMFG British American Tobacco Denmark 2.1 1.2 Sony Compass Carlsberg Tokyo Electron Ferguson Genmab Netherlands 2.8 2.5 Informa Middle East -0.3 Finland 1.9 0.7 ABN AMRO Prudential Sampo Wolters Kluwer RELX France 7.0 7.4 New Zealand 0.0 0.1 Royal Dutch Shell Michelin Norway 2.4 0.5 Shire Safran Statoil Unilever Emerging Markets -1.3 Ubisoft Telenor Total Developed 72.3 74.5 Valeo Portugal 0.0 0.1 Emerging Markets 24.2 25.5 VINCI Singapore 1.6 0.9 Lazard Emerging Markets Equity Portfolio (Instl) Germany 5.3 6.6 DBS Cash & Equivalents 3.5 0.0 Continental Spain 1.1 2.2 Total Portfolio 100.0 100.0 Japan -3.9 Deutsche Post Red Electrica Fresenius Sweden 2.7 1.8 SAP Assa Abloy Hong Kong 0.0 2.5 Nordea Ireland 5.4 0.3 Accenture North America -4.0 Medtronic Ryanair Israel 0.0 0.3 Italy 0.0 1.7

Asia ex-Japan -4.7

-10 -5 0 5 10 Active Weight (%)

As of 31 March 2018 The information provided in this material should not be considered a recommendation or solicitation to purchase or sell any security. There is no assurance that any securities referenced herein will remain in the account’s portfolio or that securities sold have not been repurchased. The securities discussed may not represent the account’s entire portfolio. It should not be assumed that any of the referenced securities were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. Please note that cash is not viewed as a strategic asset class. Source: Lazard, MSCI 27 Lazard Asset Management TAB Outlook

• Global Markets still close to all-time highs despite recent pullback • Investors more balanced in assessing market risks and opportunities • International corporate profits exceeded market returns but rates are up • Geo-political concerns have yet to rattle investors • Valuations are improving outside the US

• As the market continues to shift back to fundamentals, we expect the following to do well: − Higher quality − Moderately defensive − Relative value − Non-US equity

29 Lazard Asset Management Information and opinions as of 31 March 2018 and are subject to change. Relative Value MSCI Regions

Forward P/E1 Forward ROE (%)1 Dividend Yield (%) EAFE 14.0 11.0 3.2

US 17.3 16.7 1.9

United Kingdom 13.4 12.4 4.2

Continental Europe 14.4 11.9 3.2

Asia ex-Japan 15.3 10.4 3.9

Japan 13.3 9.1 2.1

Emerging Markets 12.6 13.2 2.4

International markets are attractive vs US

As of 31 March 2018 1 Forward Price/Earnings is defined as Price/Earnings FY1 and Forward Return on Equity as Return on Equity NTM. The figures above represent expected returns. Expected returns do not represent a promise or guarantee of future results and are subject to change. Source: Lazard, Factset, MSCI 30 Lazard Asset Management MSCI EAFE to MSCI USA

US/EAFE PE NTM Premium or Discount 20.0%

15.0%

10.0% MSCI EAFE Premium to MSCI US

5.0%

0.0%

‐5.0%

‐10.0%

‐15.0%

‐20.0% MSCI EAFE Discount to MSCI US

‐25.0% Sep‐98 Sep‐99 Sep‐00 Sep‐01 Sep‐02 Sep‐03 Sep‐04 Sep‐05 Sep‐06 Sep‐07 Sep‐08 Sep‐09 Sep‐10 Sep‐11 Sep‐12 Sep‐13 Sep‐14 Sep‐15 Sep‐16 Sep‐17 Mar‐98 Mar‐99 Mar‐00 Mar‐01 Mar‐02 Mar‐03 Mar‐04 Mar‐05 Mar‐06 Mar‐07 Mar‐08 Mar‐09 Mar‐10 Mar‐11 Mar‐12 Mar‐13 Mar‐14 Mar‐15 Mar‐16 Mar‐17 Mar‐18

EAFE near deepest discount to US in 20 years

As of 31 March 2018 Source: Factset, MSCI 31 Lazard Asset Management Corporate Profits Drove International Stock Returns

% Contribution to Returns (1 Year) 80%

60%

40%

20%

‐20%

‐40%

‐60% MSCI EAFE MSCI USA MSCI United Kingdom MSCI Japan MSCI Europe ex UK MSCI Pacific ex JP MSCI EM (Emerging Markets)

Multiple Expansion/Contraction EPS Growth Price Change

As of 31 March 2018 The performance quoted represents past performance. Past performance is not a reliable indicator of future results. For illustrative purposes only. This information is not representative of any product or strategy managed by Lazard. The index is unmanaged and has no fees. One cannot invest directly in 32 Lazard Asset Management an index. Source: MSCI, Factset, Lazard Purchasing Managers Indices

EZ 56 US UK 54 Japan

52 China 50

46 Jul‐17 Jul‐16 Jul‐15 Jan‐18 Jan‐17 Jan‐16 Jun‐17 Jun‐16 Jun‐15 Oct‐17 Oct‐16 Oct‐15 Apr‐17 Apr‐16 Apr‐15 Sep‐17 Feb‐18 Sep‐16 Feb‐17 Sep‐15 Feb‐16 Dec‐17 Dec‐16 Dec‐15 Aug‐17 Aug‐16 Aug‐15 Nov‐17 Nov‐16 Nov‐15 Mar‐18 Mar‐17 Mar‐16 May‐17 May‐16 May‐15

U.K. U.S. Japan China Eurozone Expansion/Contraction

Global economy still expanding

As of 31 March 2018. Source: Bloomberg, Markit, Nikkei, Caixin 33 Lazard Asset Management Stronger Growth, Continued Low Rates

Developed Markets (ex‐US) 3.0

2.5 Growth 2.4%

2.0

1.5 %

1.0 Rates 0.8% 0.5

0.0 12/2012 03/2013 06/2013 09/2013 12/2013 03/2014 06/2014 09/2014 12/2014 03/2015 06/2015 09/2015 12/2015 03/2016 06/2016 09/2016 12/2016 03/2017 06/2017 09/2017 12/2017 ‐0.5

Government Yield ‐ 10 Year Real Gross Domestic Product (Percent Change Vs. 1 Year Ago)

How Much Longer is this Ideal Scenario Sustainable?

As of 31 December 2017 34 Lazard Asset Management Source: Factset Regional aggregate is calculated using real GDP weighted averages, fixed to 2016. Countries included are those that make up the MSCI EAFE Index. Daily Volatility Number of Days with at Least 1% Price Move

160

140

120

100

60 # of Trading Days 40

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q2018 (Annualized)

MSCI EAFE MSCI EM S&P 500

MSCI EAFE MSCI EM S&P 500 2007-2016 78 87 73 Average 2017 9218 1Q2018 40 72 92 Annualized

Non-US Volatility Moving Back Towards Normal Levels

As of 31 March 2018 Source: Factset, S&P, MSCI 35 Lazard Asset Management Elevated Global Risks

• Global manufacturing PMI down for 3 months Caution Warranted • Has Eurozone growth peaked? ‒ German manufacturing orders experienced largest monthly drop in 2 years ‒ German 10-yr bund yield dropped from 0.75% to 0.50% ‒ Weaker Eurozone retail sales ‒ Citi Economic Surprise Index for Eurozone dropping • Japan’s cold weather streak • Taiwan manufacturing growth slows to 5-year low Equity Market Volatility • VIX up 81% in 1Q, highest level in 6 years “Risk-On or Risk-Off” • “Tech Wreck” • Trade battle or trade war (China and Mexico) • US mid-terms • Debate over Eurozone reforms (Germany vs. France vs. Italy) Political Battlegrounds • To Brexit or not to Brexit • China’s Xi open-ended presidency • Gulf regional conflict (MBS visit/Saudi recognizes Israel) • MSCI Emerging Markets: China “A” Share Inclusion • FTSE Global Equity Index: Recognizes Saudi Arabia as Index Changes: “secondary emerging market” • Saudi Aramco IPO

Information and opinions as of 31 March 2018 and are subject to change. 36 Lazard Asset Management MSCI EAFE vs MSCI US: Rolling 3 Year Returns

40 MSCI EAFE Outperforms

‐10

‐20

MSCI US Outperforms ‐30 Dec‐72 Dec‐73 Dec‐74 Dec‐75 Dec‐76 Dec‐77 Dec‐78 Dec‐79 Dec‐80 Dec‐81 Dec‐82 Dec‐83 Dec‐84 Dec‐85 Dec‐86 Dec‐87 Dec‐88 Dec‐89 Dec‐90 Dec‐91 Dec‐92 Dec‐93 Dec‐94 Dec‐95 Dec‐96 Dec‐97 Dec‐98 Dec‐99 Dec‐00 Dec‐01 Dec‐02 Dec‐03 Dec‐04 Dec‐05 Dec‐06 Dec‐07 Dec‐08 Dec‐09 Dec‐10 Dec‐11 Dec‐12 Dec‐13 Dec‐14 Dec‐15 Dec‐16 Dec‐17 Since Dec 1969: MSCI US +9.2 % MSCI EAFE +8.9 % Non-US and US Markets Take Turns Outperforming

As of 31 March 2018. Information and opinions are as of the date of this communication and are subject to change. Returns are annualized. The performance quoted represents past performance. Past performance is not a reliable indicator of future results. This information is for illustrative purposes only and does not represent any product or strategy managed by Lazard. It is not possible to invest directly in an index. 37 Lazard Asset Management 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. Source: MSCI, Lazard TAB Lazard Emerging Markets Equity Portfolio Performance Institutional Shares

Annual Performance (%)

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Lazard Emerging Markets Equity 28.02 20.52 -20.16 -4.16 -0.80 22.36 -17.75 22.81 69.82 -47.88 33.05 Portfolio

MSCI Emerging Markets Index 37.28 11.19 -14.92 -2.19 -2.60 18.22 -18.42 18.88 78.50 -53.33 39.38

Excess Return (bps) -926 +933 -524 -197 +180 +414 +67 +393 -868 +545 -633

Annualized Performance (%) Annualized Since Inception 2018 Q1 1 Year 3 Years 5 Years 10 Years 18 Jul 1994 Lazard Emerging Markets Equity Portfolio 2.05 18.33 8.62 3.86 3.47 7.40

MSCI Emerging Markets Index 1.42 24.93 8.81 4.99 3.02 6.07

Excess Return (bps) +63 -660 -19 -113 +45 +133

Reporting Date: 31 March 2018. All data in USD 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.LazardAssetManagement.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. The MSCI Emerging Markets Index is comprised of emerging market securities in countries open to non-local investors. The index is unmanaged and has no fees. One cannot invest directly in an index 39 Lazard Asset Management Outperformance/Underperformance Rolling 5 Year Annualized Returns Since Inception

Lazard Emerging Markets Equity Portfolio vs. MSCI Emerging Markets Index

EM Rolling 5 Year Returns (%) 45

-45 -35 -25 -15 -5 5 15 25 35 45 -5 MSCI EM Rolling 5 Year Returns (%)

-15

-25

-35

-45

As of 31 December 2017. All data in USD. Portfolio inception is 1 August 1994. 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.LazardAssetManagement.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 Source: Lazard, MSCI 40 Lazard Asset Management Performance in Different Market Conditions

I. II. III. IV. V. VI. VII. VIII. IX. Investing Flight Recovery Return to “Chindia Mania” Credit Recovery Taper Improving Mania to Safety Fundamentals Squeeze Tantrum/ Fundamentals Cumulative Return (%) Momentum 160 Outperformance 144.4

140 129.8 122.3 120 113.3 108.1 98.9 100

57.4 60 54.8

40 33.1 27.4 17.5 19.8 20

-20 -18.2 -24.1 -40 -37.3 -42.0 -60 -57.0 -61.6 -80 1Jan 98 - 1 Apr 00 - 1 Apr 03 - 1 Jan 05 - 1 Jun 07 - 1 Nov 07 - 1 Mar 09 - 1 May 13 - 1 Jan 16 - 31 Mar 00 31 Mar 03 31 Dec 04 31 May 07 31 Oct 07 28 Feb 09 30 Apr 13 31 Dec 15 31 Mar 18

Lazard Emerging Markets Equity Mutual Fund (Institutional)

MSCI Emerging Markets Index

As of 31 March 2018. All data in USD. 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.LazardAssetManagement.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 Source: Lazard, MSCI 41 Lazard Asset Management Investment Characteristics Forward Looking Lazard Emerging Markets Equity Portfolio

Trailing One-Year: 4 12 20 20 8

3.2 3.2 15.9 15.2 6.2 9.0 14.6 3 8.6 15 15 8 2.4 7.0 11.7 12.0 4.8 4.6 10.2 2 10 10 4

4 1 5 5

0 0 0 0 0 Dividend Price/ Price/ Return Free Cash Yield (%) Cash Flow Earnings on Equity (%) Flow Yield (%) Forward Looking: 15 14.0 18 15.9 12.6 13.2 10.4 10 12 11.0

5 6

Lazard Emerging Markets Equity Portfolio

MSCI Emerging Markets Index 0 0 Forward Price/ Forward Return on MSCI EAFE Index Earnings¹ Equity % Portfolio remains attractively priced with superior financial productivity

As of 31 March 2018. 1 Forward P/E is defined as P/E FY1 Investment characteristics are based upon the Lazard Emerging Markets Equity Portfolio. Forward-looking figures represent expected returns. Expected returns do not represent a promise or guarantee of future results and are subject to change. Source: Lazard, MSCI, I/B/E/S 42 Lazard Asset Management Top 10 Contributors/Detractors by Performance Attribution Lazard Emerging Markets Equity Portfolio

Punjab National Banco do Brasil Bank 2018 Q1 54 -48 . Key Contributors NetEase Sberbank • Stock selection in the Financials, Materials and -42 40

China Construction Telecom sectors (80 bps) and in Mexico, Russia and CCR Bank -30 South Africa (180 bps) helped performance. 29 Telekomunikasi • Greater-than-index exposure to Brazil and Russia Naspers* Indonesia 29 (90 bps) was additive -24 . Key Detractors Cielo Shoprite Holdings -20 29 • Stock selection within IT and Energy detracted from Alibaba* LUKOIL returns (-85 bps) and in China and Korea (-85 bps) -19 28

• Greater-than-index exposure to Indonesia and Petrobras Bajaj Auto Distribuidora -19 Turkey detracted as well (-45 bps) 25

BAT Malaysia ALROSA -18 22

ENN Energy Axis Bank Holdings -18 Top 10 Attribution: +286 17

Bottom 10 Attribution: -256 Itau Unibanco* America Movil -17 15

bps -100 -50 0 50 100bps

As of 31 March 2018. * Not currently held in the portfolio. Attribution is based upon the Lazard Emerging Markets Equity Portfolio and is versus the benchmark noted. Attribution analysis is provided for illustrative purposes only, as values are calculated based on returns gross of fees. Performance would be lower if fees and expenses were included. Past performance is not a reliable indicator of future results. The securities mentioned are not necessarily held by Lazard for all client portfolios, and their mention should not be considered a recommendation or solicitation to purchase or sell these securities. 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. 43 Lazard Asset Management Helped/Hurt Lazard Emerging Markets Equity Portfolio

2018 Q1

What Helped What Hurt

. Banco do Brasil, a Brazilian bank, reported good earnings and . Punjab National Bank, an Indian state bank, fell after bank fraud management reiterated its focus on profitable growth. was recently uncovered.

. Shares of China Construction Bank, a Chinese bank, gained on . NetEase, a Chinese publisher of computer and online games the back of an improving outlook for the Chinese economy, and web portal, experienced profit taking on the back of which is expected to lead to better margins and stable asset expectations for weaker fourth quarter results. quality. . Shares of CCR, a Brazilian toll road operator, declined following . Sberbank, the largest banking group in Russia, performed well allegations that CCR executives overpaid for sponsorship after posting strong earnings and providing a positive outlook. contracts during the 2009-2012 period to fund political campaigns. . Shares of Taiwan Semiconductor Manufacturing (TSMC), a Taiwanese semiconductor manufacturer, performed well due to . Telekomunikasi Indonesia, an Indonesian telecom services expectations for strong demand for 7nm chips in 2018 and company, announced fourth quarter results that highlighted a continued strong demand for bitcoin mining chips. challenging market due to tougher competition.

. Lukoil, a Russian energy company, announced fourth quarter . China Mobile, a Chinese telecom services company, lagged earnings that demonstrated good cost control and strong cash due to concerns over increased regulatory risks, which would flow generation. potentially result in increased investment.

. Stock selection within South Africa added value. . Stock selection in the information technology sector hurt relative performance.

As of 31 March 2018. The allocations and specific securities mentioned are based upon the Lazard Emerging Markets Equity Portfolio. Allocations and security selection are subject to change. The securities mentioned are not necessarily held by Lazard for all client portfolios, and their mention should not be considered a recommendation or solicitation to purchase or sell these securities. 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. 44 Lazard Asset Management Relative Weights vs. Index¹ Lazard Emerging Markets Equity Portfolio

Sector Country

7.2 Russia 6.1 Telecommunication Services 4.7 South Africa

5.7 Financials 3.4 Brazil

3.0 Turkey 0.6 Energy 2.7 Indonesia

0.0 Consumer Staples 1.6 Pakistan

1.5 Hungary -0.4 Industrials 1.5 Argentina

-0.7 Utilities 0.8 India

0.8 Egypt -0.7 Consumer Discretionary 0.5 Mexico

-2.0 Health Care -0.3 Philippines

-1.2 Thailand -2.8 Real Estate -1.2 Korea

-3.4 Materials -2.1 Malaysia -7.2 Taiwan -5.2 Information Technology -13.7 China

-8 -4 0 4 8 (%) -15 -10 -5 0 5 10 (%)

As of 31 March 2018. Index is defined as the MSCI Emerging Markets Index. The countries shown are countries Lazard Emerging Markets Equity Portfolio holds a position in. Allocations are based upon the portfolio. Allocations and security selection are subject to change. Source: MSCI 45 Lazard Asset Management Trading Activity and Top Ten Positions Lazard Emerging Markets Equity Portfolio

2018 Q1 Buy/Sells Top Ten Positions

Bought %of Lazard . Hengan China Construction Bank 4.8 . Sabesp Samsung Electronics 4.2 Sberbank 4.2 Sold Taiwan Semiconductor Manufacturing 3.8 . Suzano Papel e Celulose Tata Consultancy Services 3.2 SK Hynix 3.1 Banco do Brasil 2.8 China Mobile 2.5 LUKOIL 2.2 America Movil 2.2 Total 33.1 Total Number of Holdings 73

We continue to find very attractive relative value in the existing portfolio holdings

As of 31 March 2018. The allocations and specific securities mentioned are based upon the Lazard Emerging Markets Equity Portfolio. Allocations and security selection are subject to change. The securities mentioned are not necessarily held by Lazard for all client portfolios, and their mention should not be considered a recommendation or solicitation to purchase or sell these securities. 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. 46 Lazard Asset Management Holdings by Country Lazard Emerging Markets Equity Portfolio

% of % of MSCI % of % of MSCI % of % of MSCI Portfolio EM Index Portfolio EM Index Portfolio EM Index Czech Republic 0.0 0.2 Argentina 1.5 0.0 Indonesia 4.7 2.6 52.4 Egypt 0.9 0.1 YPF Astra International Commercial International Bank Brazil 10.8 7.5 South/East Asia Bank Mandiri Greece 0.0 0.3 Ambev Semen Indonesia Hungary 1.8 0.3 Banco do Brasil Telekomunikasi Indonesia 72.9 OTP Bank BB Seguridade Korea 13.9 15.1 Poland 0.0 1.2 CCR Coway Qatar 0.0 0.5 Cielo Russia 10.8 3.6 Localiza Rent A Car Hanwha Life Insurance 29.0 ALROSA Petrobras Distribuidora Hyundai Mobis KB Financial Group Europe/Middle Gazprom SABESP KT & G East/Africa Lukoil Chile 0.0 1.2 Magnit Colombia 0.0 0.4 Samsung Electronics 14.6 Mobile TeleSystems Mexico 3.4 2.9 Shinhan Financial Group Sberbank America Movil SK hynix South Africa 11.5 6.8 Grupo Mexico Malaysia 0.4 2.5 Bidvest Group Kimberly-Clark de Mexico British American Tobacco Malaysia 15.8 Imperial Holdings Peru 0.0 0.4 Pakistan 1.7 0.1 Life Healthcare Group Total Latin America 15.8 12.4 Habib Bank Holdings Latin America China 16.2 29.9 Oil & Gas Development Nedbank Group AAC Technologies Holdings Pakistan Petroleum 12.4 PPC Baidu Philippines 0.7 1.0 Sanlam China Construction Bank PLDT Shoprite Holdings China Mobile Taiwan 4.6 11.8 Standard Bank Group China Shenhua Energy Vodacom Group Hon Hai Precision Industry 2.9 CNOOC Woolworths Holdings ENN Energy Holdings Taiwan Semiconductor Manufacturing Cash and Turkey 4.0 1.0 Hengan International Group Thailand 1.3 2.4 Equivalents Akbank NetEase Kasikornbank 0.0 Koc Holding Weichai Power Siam Cement Tupras India 8.9 8.1 Total South/East Asia 52.4 72.9 Turk Telekomunikasyon Axis Bank Cash and Equivalents 2.9 0.0 Turkcell 0 20406080 Bajaj Auto Total Portfolio 100.0 100.0 Turkiye Is Bankasi HCL Technologies (%) Portfolio United Arab Emirates 0.0 0.6 Hero Motocorp Total Europe/Middle 29.0 14.6 Punjab National Bank MSCI Emerging Markets Index East/Africa Tata Consultancy Services

As of 31 March 2018. The allocations and specific securities mentioned are based upon the portfolio. Allocations and security selection are subject to change. The securities mentioned are not necessarily held by Lazard for all client portfolios, and their mention should not be considered a recommendation or solicitation to purchase or sell these securities. 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. Please note that cash is not viewed as a strategic asset class. Source: Lazard, MSCI 47 Lazard Asset Management Holdings by Sector Lazard Emerging Markets Equity Portfolio

% of % of MSCI % of % of MSCI % of % of MSCI 29.7 Financials Portfolio EM Index Portfolio EM Index Portfolio EM Index 24.0 Consumer Discretionary 8.7 9.5 Financials 29.7 24.0 Information Technology 22.6 27.8 Astra International Akbank AAC Technologies Holdings Information 22.6 Bajaj Auto Axis Bank Baidu Technology 27.8 Coway Banco do Brasil Cielo 10.7 Hero Motocorp Bank Mandiri HCL Technologies Telecom Services BB Seguridade Hon Hai Precision Industry 4.6 Hyundai Mobis Imperial Holdings China Construction Bank NetEase Commercial International Bank Samsung Electronics Consumer 8.7 Petrobras Distribuidora Discretionary Habib Bank SK Hynix 9.5 Woolworths Holdings Hanwha Life Insurance Taiwan Semiconductor Manufacturing 7.8 Consumer Staples 6.4 6.4 Kasikornbank Tata Consultancy Services Energy 7.2 Ambev KB Financial Group Materials 3.9 7.3 British American Tobacco Malaysia Nedbank Group ALROSA 6.4 Hengan International Group Consumer Staples OTP Bank Grupo Mexico 6.4 Kimberly-Clark de Mexico Punjab National Bank PPC KT & G Sanlam 4.8 Semen Indonesia Industrials Magnit Sberbank Siam Cement 5.2 Shoprite Holdings Shinhan Financial Group Real Estate 0.0 2.8 Energy 7.8 7.2 Standard Bank 3.9 Telecom Services 10.7 4.6 Materials China Shenhua Energy Turkiye Is Bankasi 7.3 America Movil CNOOC Health Care 0.8 2.8 China Mobile 1.6 Life Healthcare Group Holdings Utilities Gazprom Mobile TeleSystems Industrials 4.8 5.2 2.4 LUKOIL PLDT Bidvest Group 0.8 Oil & Gas Development Telekomunikasi Indonesia Health Care Pakistan Petroleum CCR 2.8 Turk Telekomunikasyon Tupras Koc Holding Turkcell YPF Localiza Rent A Car Vodacom Group Real Estate 2.8 Weichai Power Utilities 1.6 2.4 ENN Energy Holdings 2.9 Cash & Equivalents SABESP 0.0 Cash and Equivalents 2.9 0.0 0 10203040 Total Portfolio 100.0 100.0 (%) Portfolio

MSCI Emerging Markets Index

Robust bottom-up relative value investment process . Favorable trade-off between valuation and financial productivity . Focus on both valuation and financial productivity helps avoid "value traps" . Borderless alpha generation capability

Seeks to provide a strong pattern of performance . Aims to achieve downside protection, good upside participation . Seeks attractive risk adjusted returns

Complete opportunity set . Use full capitalization spectrum to seek attractive ideas . Strong emerging markets expertise

Information and opinions are current as of the date of this document. 50 Lazard Asset Management TAB Biographies International Equity Select Management Team

Michael G. Fry Managing Director, Portfolio Manager/Analyst Lazard Asset Management Limited (London) Michael G. Fry is a Portfolio Manager/Analyst on various international equity teams. He began working in the investment field in 1981. Prior to joining Lazard in 2005, Michael was Head of Global Equity Portfolio Management, Global Head of Equity Research and Head of Australian Equities with UBS Global Asset Management, and was also previously with Armstrong Jones Fund Management, Schroder Investment Management, and Price Waterhouse in Australia. He has a BE from Flinders University, Australia. Michael is a member of the Institute of Chartered Accountants in Australia and an associate of the Financial Services Institute of Australasia.

Michael A. Bennett Managing Director, Portfolio Manager/Analyst Lazard Asset Management LLC (New York) Michael Bennett is a Managing Director of Lazard Asset Management and a Portfolio Manager/Analyst on various international equity teams. He also coordinates the activities of Lazard Asset Management's Investment Council. Michael began working in the investment field in 1986. Prior to joining Lazard in 1992, Michael was with G.E. Investment Corporation, Keith Lippert Associates and became a CPA while at Arthur Andersen. He has an MBA from University of Chicago and a BS in Accounting from New York University.

Giles Edwards, CFA, ACMA Senior Vice President, Portfolio Manager/Analyst Lazard Asset Management LLC (London) Giles Edwards is a Portfolio Manager/Analyst on the International Equity, International Equity Select, and International Concentrated teams. Prior to joining the investment teams, he was a Research Analyst with a background in media, automotive, and services. Prior to joining Lazard in 2008, Giles wasa Management Accountant at BSkyB, completing his CIMA qualifications. He has a BA (Hons) in Politics and Economics from the University of Newcastle upon Tyne.

Kevin J. Matthews, CFA Managing Director, Portfolio Manager/Analyst Lazard Asset Management LLC (New York) Kevin Matthews is a Portfolio Manager/Analyst on various international equity teams. Prior to joining the investment teams, he was a Research Analyst with a background in financials, automotive, aerospace, and capital goods sectors. He began working in the investment field in 2001 when he joined Lazard. Kevin has a BA in Politics and Philosophy from St. Chad's College, Durham University. He is a Mentor/Supporter at Minds Matter NYC, a Member of the Board of HERE Theatre, a Corporate Leader at the Council on Foreign Relations, a WSET Advanced Level holder, and an Ironman Triathlete.

Michael Powers Managing Director, Portfolio Manager/Analyst Lazard Asset Management LLC (New York) Michael Powers is a Portfolio Manager/Analyst on various international equity teams. He began working in the investment field in 1990 when he joined Lazard. Michael has an MBA from Long Island University and a BA from Brown University.

52 Lazard Asset Management Biographies Emerging Markets Equity Management Team

James Donald, CFA Managing Director, Portfolio Manager/Analyst Lazard Asset Management LLC (New York) James Donald is a Portfolio Manager/Analyst on the Emerging Markets Equity team and Head of the Emerging Markets Group. He is also a member of the International Equity Select with Emerging Markets team. Since joining Lazard in 1996, James has been instrumental in developing and coordinating the emerging markets activities at Lazard. He began working in the investment field in 1983. Prior to joining Lazard, James was a Portfolio Manager with Mercury Asset Management. He has a BA (Hons) in history from the University of Western Ontario. James is a board member of EMpower, a charity of investment professionals focused on adolescents, health care, and women’s issues in emerging markets countries, as well as a member of the 20-20 Investments Association, an investor group that is focused on emerging markets.

Rohit Chopra Managing Director, Portfolio Manager/Analyst Lazard Asset Management LLC (New York) Rohit Chopra is a Portfolio Manager/Analyst on the Emerging Markets Equity team, focusing on consumer and telecommunications research and analysis. He began working in the investment field in 1996. Prior to joining the Firm in 1999, Rohit was with Financial Resources Group, Deutsche Bank and Morgan Stanley. He has a BS in Finance and Information Systems from New York University and also studied at the London School of Economics and Political Science. Rohit has been accepted as a Young Global Leader (YGL) in 2016 by the World Economic Forum, which engages the top political, business, and other leaders of society to shape the global future.

Monika Shrestha Director, Portfolio Manager/Analyst Lazard Asset Management LLC (New York) Monika Shrestha is a Portfolio Manager/Analyst on the Emerging Markets Equity team, responsible for research coverage of companies in the financials sector. She began working in the investment field in 1997. Prior to joining Lazard in 2003, Monika was a principal at Waterview Advisors and a Corporate Finance Analyst with Salomon Smith Barney. She has an MBA from Harvard Business School, a BSE in Computer Science and Engineering and a BS in Economics (with a concentration in Finance) from the University of Pennsylvania.

53 Lazard Asset Management Biographies Emerging Markets Equity Management Team

Elizabeth S. Chung Senior Vice President, Research Analyst Lazard Asset Management LLC (New York) Elizabeth Chung is a Research Analyst on the Emerging Markets Equity team, responsible for research coverage of companies in the telecommunications and consumer sectors. She began working in the investment field in 1994 as a senior associate at Scudder, Stevens & Clark. Prior to joining Lazard in 2010, Elizabeth was a Director and Investment Analyst at UBS Global Asset Management where she was a member of a team that managed various international equity strategies. Prior to UBS, Elizabeth was responsible for Asia ex-Japan research sales at Credit Suisse and Merrill Lynch. She has an MBA in Finance and Accounting from the Columbia Business School and a BA in International Relations from Boston University.

Lada Emelianova Senior Vice President, Research Analyst Lazard Asset Management LLC (New York) Lada Emelianova is a Research Analyst on the Emerging Markets Equity team, responsible for research coverage of companies in the materials sector. She began working in the investment field in 1998 as a senior investment analyst in the Alternative Assets group at CIBC World Markets. Prior to joining Lazard in 2010, Lada was a Portfolio Manager at Newgate Capital Management responsible for their EMEA investments. She also co-managed Newgate's Global Resource Fund. Prior to Newgate, Lada was an analyst at Libra Advisors LLC, an equity long/short hedge fund. She has a MALD degree in International Business and Finance from the Fletcher School of Law and Diplomacy at Tufts University and Harvard University, as well as a MA in Natural Resource Management from Tufts University. She also has a MS, Summa Cum Laude, in Seismology and Geophysics from Moscow State University.

Donald Floyd Director, Research Analyst Lazard Asset Management LLC (New York) Donald Floyd is a Research Analyst on the Emerging Markets Equity team, responsible for research coverage of companies in the technology and industrials sectors. Donald began working in the investment field in 1995. Prior to joining Lazard in 2011, he worked at Royal Bank of Scotland and Citigroup in AsiaPAC Equity Sales focusing on the technology sector with a Taiwan/China bias. Prior to that, Donald was Head of Asia Technology Research at Lehman Brothers and CLSA based in Taiwan. Previously, he worked in the industry at Teradyne and M.I.T.'s Artificial Intelligence Lab. Donald has an MBA from Babson College and a BS in Electrical Engineering from Carnegie Mellon University.

54 Lazard Asset Management Biographies Emerging Markets Equity Management Team

Ben Wulfsohn, CFA Director, Research Analyst Lazard Asset Management LLC (New York) Ben Wulfsohn is a Research Analyst on the Emerging Markets Equity and Emerging Markets Small Cap Equity teams. He is responsible for research coverage of the emerging markets utilities, energy and health care sectors, as well as client communications. Ben began working in the investment industry in 1991. Prior to joining Lazard in 2001, Ben was Director of Marketing Support with Weiss, Peck & Greer, LLC and an Investment Consultant for Segal Advisors, Inc. He has a BSC (Hons) in Physics from the University of London, Queen Mary College.

55 Lazard Asset Management Important Information

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 market securities carry special 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 market countries can be extremely volatile; performance can also be influenced by political, social, and economic factors affecting companies in emerging market countries. 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. The MSCI Index Data may not be further redistributed or used as a basis for other indices or any securities or financial products.

This material is for informational purposes only. It is not intended to, and does not constitute financial advice, fund management services, an offer of financial products or to enter into any contract or investment agreement in respect of any product offered by Lazard Asset Management and shall not be considered as an offer or solicitation with respect to any product, security, or service in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or unauthorized or otherwise restricted or prohibited. This document reflects the views of Lazard Asset Management LLC or its affiliates (“Lazard”) and sources believed to be reliable as of the publication date. There is no guarantee that any projection, forecast, or opinion in this material will be realized. Past performance does not guarantee future results. This document is for informational purposes only and does not constitute an investment agreement or investment advice. References to specific strategies or securities are provided solely in the context of this document and are not to be considered recommendations by Lazard. Investments in securities and derivatives involve risk, will fluctuate in price, and may result in losses. Certain securities and derivatives in Lazard’s investment strategies, and alternative strategies in particular, can include high degrees of risk and volatility, when compared to other securities or strategies. Similarly, certain securities in Lazard’s investment portfolios may trade in less liquid or efficient markets, which can affect investment performance.

Australia: FOR WHOLESALE INVESTORS ONLY. Issued by Lazard Asset Management Pacific Co., ABN 13 064 523 619, AFS License 238432, Level 39 Gateway, 1 Macquarie Place, Sydney NSW 2000. Dubai: Issued and approved by Lazard Gulf Limited, Gate Village 1, Level 2, Dubai International Financial Centre, PO Box 506644, Dubai, United Arab Emirates. Registered in Dubai International Financial Centre 0467. Authorised and regulated by the Dubai Financial Services Authority to deal with Professional Clients only. Germany: Issued by Lazard Asset Management (Deutschland) GmbH, Neue Mainzer Strasse 75, D-60311 Frankfurt am Main. Hong Kong: Issued by Lazard Asset Management (Hong Kong) Limited (AQZ743), Unit 29, Level 8, Two Exchange Square, 8 Connaught Place, Central, Hong Kong. Lazard Asset Management (Hong Kong) Limited is a corporation licensed by the Hong Kong Securities and Futures Commission to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. This document is only for “professional investors” as defined under the Hong Kong Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) and its subsidiary legislation and may not be distributed or otherwise made available to any other person. Japan: Issued by Lazard Japan Asset Management K.K., ATT Annex 7th Floor, 2-11-7 Akasaka, Minato-ku, Tokyo 107-0052. People's Republic of China: Issued by Lazard Asset Management. Lazard Asset Management does not carry out business in the P.R.C. and is not a licensed investment adviser with the China Securities Regulatory Commission or the China Banking Regulatory Commission. This document is for reference only and for intended recipients only. The information in this document does not constitute any specific investment advice on China capital markets or an offer of securities or investment, tax, legal, or other advice or recommendation or, an offer to sell or an invitation to apply for any product or service of Lazard Asset Management. Singapore: Issued by Lazard Asset Management (Singapore) Pte. Ltd., 1 Raffles Place, #15-02 One Raffles Place Tower 1, Singapore 048616. Company Registration Number 201135005W. This document is for “institutional investors” or “accredited investors” as defined under the Securities and Futures Act, Chapter 289 of Singapore and may not be distributed to any other person. South Korea: Issued by Lazard Korea Asset Management Co. Ltd., 10F Seoul Finance Center, 136 Sejong-daero, Jung-gu, Seoul, 100-768. United Kingdom: FOR PROFESSIONAL INVESTORS ONLY. Issued by Lazard Asset Management Ltd., 50 Stratton Street, London W1J 8LL. Registered in England Number 525667. Authorised and regulated by the Financial Conduct Authority (FCA). United States: Issued by Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, NY 10112.

56 Lazard Asset Management