Investment Focus

Quality-Driven Growth: An Enduring Combination

Over the past several years, market observers and participants have focused to the point of obsession on the performance and possible trajectories of growth and value . In our view, however, the quiet, steady dominance of a third style makes the debate beside the point. International quality stocks have consistently outperformed their regional growth and value peers for the last two decades. Quality-driven has been an enduring combination. Done properly, we believe it has the potential to identify companies across many sectors and industries with high levels of financial productivity, lasting competitive advantages, and reinvestment opportunities for growth. Collectively, we believe companies with these characteristics can deliver a consistent pattern of performance through different investment cycles. 2

Introduction market environments, with the notable exception of very strong rising markets, which tend to favor value stocks. When comparing against Study after study has shown that investors are not very good at timing growth, the MSCI ACWI ex-USA Quality Index has outperformed the market, but the conversation around style investing shows that its counterpart Growth Index in 96% of the three-year periods when they nevertheless spend an awful lot of time trying to do it. As growth growth was underperforming and 74% of the periods when it was stocks soared over the last decade-plus, pundits asked whether the outperforming. world had permanently shifted to favor high-growth technology stocks over businesses heavy on assets in the physical world, which often fall in the value category. But even very short periods in which value Exhibit 1 started to pull ahead elicited a frenzy of speculation about whether the Quality Outperformed International and US Benchmarks for valuations of growth stocks, many of which are not very profitable, the Last 20 Years had finally flown too close to the sun. Quality vs. the Broader Market in US and International Equities 1. 8 We propose that investors need not try to puzzle out the answer to any of those questions; they need only turn their attention to quality, an Cumulative Excess Return (Quality/International) oft-forgotten third style. Quality international stocks have beaten both 1. 5 the broader market and growth and value styles for the last 20 years (Exhibit 1). In what we think is a testament to the power of investing in high-quality companies anywhere in the world, the same pattern 1. 2 has held true in the United States. In some ways, it is understandable that the market focuses on growth Cumulative Excess Return (Quality/US) 0.9 and value despite the consistency of quality stocks’ performance. 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 There is a pleasing symmetry to the performance of the two styles over the last 20 years. In hindsight, value stocks were the best choice for As of 31 December 2020 Quality refers to MSCI ACWI ex-USA Quality Index; International refers to MSCI investors between 2000 and 2009, while growth stocks took the lead ACWI ex USA Index; US refers to MSCI ACWI Index. thereafter (Exhibit 2). The performance quoted represents past performance. Past performance is not a reliable indicator of future results. The indices mentioned are unmanaged and have no When thinking about growth in the 2020s, however, it becomes clear fees. One cannot invest directly in an index. All data is in USD. Information and opinions presented have been obtained or derived from sources to us that deciding between these two perspectives isn’t strictly neces- believed by to be reliable. Lazard makes no representation as to their accuracy sary or even wise. Our analysis of three-year rolling returns suggests or completeness. All opinions expressed herein are as of the published date and are subject to change. there is no clear pattern to outperformance in growth or value stocks, Source: FactSet while quality stocks have outperformed consistently in all kinds of

Exhibit 2 Value Led the ‘00s; Growth Took Over in the ‘10s 2000–2010 Was the Decade for Value 2010–2020 Was the Decade for Growth

MSCI ACWI ex-USA: Growth vs. Value MSCI ACWI ex-USA: Growth vs. Value 1.2 1.8

12/31/00–12/31/10 12/31/10–12/31/20 MSCI ACWI ex-USA Value 6.59% MSCI ACWI ex-USA Growth 6.94% MSCI ACWI ex-USA Value 2.78% 1.0 MSCI ACWI ex-USA Growth 4.39% 1.5 +220 bps +416 bps

0.8 1.2

Cumulative Excess Return (Growth/Value)

Cumulative Excess Return (Growth/Value) 0.6 0.9 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

As of 31 December 2020 The performance quoted represents past performance. Past performance is not a reliable indicator of future results. The indices mentioned are unmanaged and have no fees. One cannot invest directly in an index. All data is in USD. 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 published date and are subject to change. Source: FactSet 3

But let’s assume that we’re in the real world, and investors don’t have to stick with either value or growth; instead, they can switch their allocations at any time. Even an investor who was able to perfectly Even an investor who was able to time the switch to growth from value dominance in August 2009 would have done better investing in quality for the duration (Exhibit perfectly time the switch to growth 3). While the past doesn’t always promise a similar future, we believe from value dominance in August 2009 it does support the notion that the performance of quality stocks has been independent from that of either value or growth. would have done better investing in Still more data suggests that something special is at work in qual- quality for the duration. ity investing. While international data only goes back two decades, US data on quality stocks goes back to the 1970s, and the quality outperformance trend even holds up with a nearly half-century time horizon. Indeed, 1976 is the last time it would have been a bad time Financial productivity is crucial to long-term growth because it for investors with a long-term investment horizon to put their money generates the cash necessary for a business to reinvest in itself. The in quality stocks (Exhibit 4). right companies can seize on opportunities for growth, when led by the right management teams, who choose to reinvest in the business. The Definition of Quality Perhaps they build a new factory to add much-needed capacity, invest in research that can keep the pipeline of new products stocked, build Quality means different things to different people. MSCI constructs its out their sales force in brand-new markets, or expand into promising quality index by looking for companies with high and stable financial new product lines. We believe all of these choices and many others productivity and low financial leverage. However, any index is back- can actually help ensure that a high-quality, growing company keeps ward-looking: It can only tell investors which companies have been producing strong returns well into the future. high quality in the past. Our focus is squarely on the most financially productive businesses, as we believe high financial productivity is the Not every business can reinvest productively, however. Some mature driver of the earnings stability, cash generation, and low financial lever- businesses would only dilute the returns that made the business age that typify quality companies. But we also focus our fundamental attractive in the first place if they spent money on new factories or research on companies we think can likely continue to generate high increased the ranks of their sales forces. Such companies may be better returns in the future, creating the compounding effect that drives our off returning value to shareholders in the form of higher quality growth approach. Lazard International Quality Growth invests or buybacks. We believe experienced investment teams must in 40 to 50 of the world’s most financially productive companies, assess both a company’s opportunities to reinvest in ways that stand which are generally sourced from the top 30% of all international com- to generate more cash flow in the future and the competence of the panies in terms of cash flow return on investment (CFROI). management to seize those opportunities.

Exhibit 3 Exhibit 4 Quality Stocks Outperformed Both Value and Growth in the Quality Has Consistently Outperformed for Long-Term ‘00s and the ‘10s Investors

Quality vs. Value/Growth Switch in International Markets Rolling 10-Year Returns (Annualized, %) 4 (%) 6 MSCI ACWI ex-USA Growth MSCI ACWI ex-USA Value MSCI ACWI ex-USA Quality 3 MSCI ACWI ex-USA Value until August 2009, then MSCI ACWI ex-USA Growth

4 2

1

2 0

0 -1 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 1985 1990 1995 2000 2005 2010 2015 2020

As of 31 December 2020 As of 31 December 2020 The performance quoted represents past performance. Past performance is not a The performance quoted represents past performance. Past performance is not a reliable indicator of future results. The indices mentioned are unmanaged and have no reliable indicator of future results. The indices mentioned are unmanaged and have no fees. One cannot invest directly in an index. All data is in USD. fees. One cannot invest directly in an index. All data is in USD. Information and opinions presented have been obtained or derived from sources 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 believed by Lazard to be reliable. Lazard makes no representation as to their accuracy or completeness. All opinions expressed herein are as of the published date and are or completeness. All opinions expressed herein are as of the published date and are subject to change. subject to change. Source: FactSet Source: FactSet 4

Our research has shown that the durability of a company’s competi- tive advantage is also hugely important to long-term returns. These . Exhibit 5 advantages include: Financial Productivity Matters Most for Firms with a • Proprietary technology Wide Moat • Strong network effects Valuation (Price/Book) 6

• Valuable brands Competitive Advantage Period • Bank of proprietary, difficult-to-assemble, and valuable data 1 year 5 years 10 years 4 • Scale • Large installed base 2 • Regulatory barriers to entry • Niche industries • Producing a critical component at low cost 0 0 5 10 15 20 25 30 • Low-cost production Financial Productivity (Return on Equity, %)

Exhibit 5 highlights the fact that even very high financial productivity For illustrative purposes only. The chart depicts a theoretical example of the war- ranted valuation of one stock. The calculations to arrive at the values in the chart are doesn’t matter much to a stock’s valuation if it only has a very short based on the mathematical relationship between financial productivity, as measured window in which to dominate its competitors. However, the benefits by return on equity, and valuation, as measured by a price-to-book ratio. of high financial productivity accumulate in a non-linear fashion for a Source: Lazard company that can hold off its competitors for a decade or more. Further analysis demonstrates that given a choice between a financially productive company that can double its growth rate and one that can . double the length of time it enjoys an unassailable competitive advan- Exhibit 6 tage, investors should consider choosing the latter (Exhibit 6). (The best The Length of the Competitive Advantage Period Matters More than Growth Rate choice of all, in our view, of course, is a company that can do both.) Impact on Warranted Price/Book (%) 250 Exposure to Growth with an Insistence 15% ROE 20% ROE 25% ROE on Profits: The Lazard Approach to 200 International Quality Growth 150 As a driver of value, our analysis shows that the length of the competitive advantage period Our process for identifying quality growth companies focuses on 100 is more important than the growth rate. identifying what we call Compounders for reasons that the name makes obvious. These companies three characteristics: (1) very 50 high levels of financial productivity, (2) the opportunity and skill to 0 reinvest cash in a way that augments future growth potential, and (3) Double Growth to 20% Double Advantage Double Growth to 20% Period to 20 Years and Double Advantage a competitive advantage that we believe will endure longer than the Period to 20 Years market currently expects. For illustrative purposes only. The values in this chart are derived from the same mathematical analysis used in Exhibit 5. Please see the disclosure in that chart for As part of our of every potential Compounder, we more detail. also consider its performance on environmental, social, and governance Source: Lazard (ESG) measures. A company that attracts controversy over the way it treats its workers, customers, shareholders, members of its broader community, or the environment is a company that puts its high levels of over 90% since inception in 2016. Second, it means that our stan- of financial productivity at intolerably high risk, in our view. And in a dards meaningfully differ from those of many growth strategies, which more subtle analysis, one must also question whether a company that is are willing to invest in companies that are not currently very profitable poorly governed or mistreats either the environment or human stake- (or profitable at all) in the hopes that their fast growth will eventually holders truly has a competitive advantage or is merely getting ahead by lead to profits. We are only interested in companies that are highly skating on thinner ice than its more prudent peers. For these reasons, profitable now and seem likely to stay that way based on clearly identi- ESG is fully integrated into our fundamental analysis of every stock we fied competitive advantages. We feel that our unique quality-driven consider for our portfolio. approach is a key reason that the Lazard International Quality Growth strategy’s rolling monthly one-year returns have consistently beaten While we believe several aspects of our investment process are unique those of the benchmark since inception (Exhibit 7). and material, the most important of these is our insistence that our investments rank among the market’s most financially productive Zooming in, it’s important to note that our strategy has also done well companies. The result of that is two-fold. First, our portfolio had high compared to international stocks as a whole in a variety of different returns on equity compared to the benchmark—an average premium market environments. The Lazard International Quality Growth strat- 5

Exhibit 7 Exhibit 8 International Quality Growth: Consistent Outperformance A Selection of Morningstar Foreign Large Cap Growth Funds Since Inception International Quality Growth: Sales Growth and Valuation Generally in Line with Peers … Lazard International Quality Grow- th Return (%) 40 Valuation (P/E) 50 30

20 40

Lazard International 10 30 Quality Growth

0 -20 -10 0 10 20 30 40 20 -10 10 MSCI ACWI -20 ex-USA MSCI ACW ex-USA Index Return (%) 0 As at 31 December 2020. 0 5 10 15 20 Since Inception: 01 Jan 2016 Sales Growth (%) All data in USD. Performance is preliminary and presented gross of fees. Please refer to “GIPS® With Superior Financial Productivity … Standards Composite Information” for additional information, including net-of-fee results. The performance quoted represents past performance. Past performance is Valuation (P/E) not a reliable indicator of future results. 50 Source: Lazard

40 egy has historically outperformed its benchmark, the MSCI ACWI ex-USA Index, in rising markets (106% upside capture), and held its 30 value relatively well in falling markets (75% downside capture) over Lazard International the last five years. In our view, the downside capture number is impor- 20 Quality Growth tant to explaining quality’s persistent advantage over time. In times of trouble, investors have tended to flock to companies that have shown 10 they can consistently generate profits and cash flows. MSCI ACWI ex-USA

Meanwhile, it should be noted for investors looking to maintain or 0 expand exposure to growth that our strategy had similar sales growth 0 5 10 15 20 and valuation characteristics to our peers in the Morningstar growth Financial Productivity (CFROI, %) category with over $500 million in assets (Exhibit 8). Thus, we believe And with Less Variability our portfolio provides investors with the characteristics they may Coefficient of Variability (%) seek in the growth portion of their overall asset allocation, but our 30 insistence on high financial productivity also provides a differentiated twist. Based on our analysis of the peer group, our portfolio had the MSCI ACWI ex-USA highest and most consistent overall financial productivity, as measured by our preferred metric (CFROI). (Please see important information 20 below regarding the peer group.)

Lazard International Conclusion 10 Quality Growth We believe that investors who are devoting time and energy to thinking about the fate of growth strategies, particularly vis-a-vis-value strategies, would do well to remember that revenue is not the only way to measure 0 growth. The Lazard International Quality Growth strategy searches for 0 5 10 15 20 companies that produce high levels of cash flow and can reinvest that Financial Productivity (CFROI, %) cash to produce even more, compounding their profitability over time. As of 31 December 2020 unless otherwise noted. That, too, is growth. Our focus on financial productivity as a measure Please see important disclaimers regarding the Peer Group on page 6. Source: Lazard, HOLT, FactSet, Morningstar Foreign Large Growth of the quality of a company has led to consistently positive performance Fund Universe in both rising and falling markets and outperformance over many years relative to both value and growth. At a time when the future of growth and value are endlessly debatable, investing in quality growth may pro- vide investors with an attractive third option. 6

Important Information about the Peer Group Selected Morningstar Foreign Large Cap Growth Funds – Peer Group

• American Century International Gr C • Fidelity® Diversified International • MFS International Intrinsic Value R1 • American Century NT International Gr G • Fidelity® International Capital Apprec • Inst International Opp C • American Funds Europacific Growth 529C • Fidelity® Series International Growth • Morgan Stanley Inst Intl Advtg C • American Funds International Vntg F-2 • Franklin Intl Growth C • Neuberger Berman International Eq C • Artisan International Investor • Goldman Sachs GQG Ptnrs Intl Opps C • PGIM Jennison International Opps C • Baillie Gifford International Alpha I • Harbor International Growth Inv • Thornburg International Growth C • Baillie Gifford International Growth I • International Growth C • TIAA-CREF International Opps Retl • BBH Partner Fund - International Eq I • Invesco Oppenheimer International Gr C • Vanguard International Growth Inv • BNY Mellon International C • JHancock International Growth C • Vanguard Intl Div Apprec Idx Adm • ClearBridge International Growth C • JNL/Invesco International Growth A • Virtus Vontobel Foreign Opportunities C • Destinations International Equity Z • JNL/WCM Focused International Equity A • WCM Focused International Growth Inv • Fidelity Advisor® Diversified Intl C • JOHCM International Select II • William Blair Instl International Gr • Fidelity Advisor® International Discv C • JPMorgan International Focus C • William Blair International Growth N • Fidelity Advisor® International Growth C • Lazard International Quality Growth • William Blair International Ldrs N • Fidelity Advisor® Intl Capital App C • MFS International Growth R1

The Sales Growth Peer Analysis, the Financial Productivity Peer Analysis, and the Variability of Financial Productivity Analysis (the “Peer Analyses”) are for illustrative purposes only. The Peer Analyses compare current portfolio-level data from the Lazard International Quality Growth strategy and to portfolio-level data from a selection of Morningstar Foreign Large Cap Growth Funds. The Lazard International Quality Growth strategy is designed to invest in attractively valued companies with sustainably high financial productivity. The Morningstar Foreign Large Cap Growth Funds are a collection of funds identified by Morningstar as investing internationally with Large Cap Growth style characteristics. For pur- poses of the Peer Analyses, the Peer Group is defined as those funds in the Morningstar Foreign Large Cap Growth Funds that maintain an international securities identification number (ISIN) and have greater than USD500m. In addition, Lazard Asset Management LLC (“LAM”) managed funds have been removed from the Peer Group given LAM does not consider its own managed products to compete amongst each other. No other screening criteria was applied to the Morningstar Foreign Large Cap Growth Funds to create the Peer Group. The Peer Analyses do not compare the performances of the Peer Group to the Lazard International Quality Growth strategy. Rather, they are designed to compare the aggregate price to earnings valuation versus sales growth statistics for each portfolio of securities represented in the Peer Analyses. There are material factors that the Peer Analysis illustra- tions do not attempt to capture. These include, but are not limited to, the application of fees, expenses and other transaction costs that may impact the Peer Group and Lazard International Quality Growth strategy differently (and in turn have an impact on price to earnings valuation and cash flow return on investment) and the difference between the Peer Group being comprised of funds and the Lazard International Quality Growth strategy lacking an association with any particular investment vehicle. Type of investment vehicle has a material impact on a strategy’s price to earnings valuation and cash flow return on investment due to various factors, including but not limited to, fees and expenses (as described above), investment guidelines, investment size, cash requirements, currency denomination, regulatory considerations and liquidity constraints. Included in the Peer Analyses is the aggregate price to earnings valuation versus sales growth of the constituents of the MSCI ACWI ex USA Index (the “Index”). The Index is the benchmark for the Lazard International Quality Growth strategy. The Index is a market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. The MSCI ACWI ex USA Index is maintained by Morgan Stanley Capital International and is comprised of stocks from 22 developed countries (excluding the US) and 26 emerging markets. It is important to note that the Index is not managed and has no fees. One cannot invest directly in the Index. Source: Morningstar Foreign Large Cap Growth Fund Universe, FactSet, Credit Suisse HOLT. This document is intended only for persons residing in jurisdictions where its distribution or availability is consistent with local laws and Lazard’s local regulatory authorizations. The Lazard entities that have issued this document are listed below, along with important limitations on their authorized activities. 7

This content represents the views of the author(s), and its conclusions may vary from those held elsewhere within Lazard Asset Management. Lazard is committed to giving our investment professionals the autonomy to develop their own investment views, which are informed by a robust exchange of ideas throughout the firm.

Notes 1 As of 31 December 2020.

Important Information Published on 27 April 2021. The performance quoted represents past performance. Past performance does not guarantee future results. Mention of these securities should not be considered a recommendation or solicita- tion to purchase or sell the 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. The MSCI All Country World ex-USA Index (ACWI ex-US) is a free-float-adjusted, market capitalization–weighted index designed to measure the performance of developed and emerging equity markets outside the United States. The index is unmanaged and has no fees. One cannot invest directly in an index. The MSCI ACWI ex-USA Value Index captures large and mid cap securities exhibiting overall value style characteristics across 22 Developed and 27 Emerging Markets countries*. The value investment style characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price and yield. The MSCI ACWI ex USA-Growth Index captures large and mid cap securities exhibiting overall growth style characteristics across 22 Developed Markets (DM) countries and 26 Emerging Markets (EM) countries*. The growth investment style characteristics for index construction are defined using five variables: long-term forward EPS growth rate, short-term forward EPS growth rate, current internal growth rate and long-term historical EPS growth trend and long-term historical sales per share growth trend. The MSCI ACWI ex USA-Quality Index is based on MSCI ACWI ex USA, its parent index, which includes large and mid cap stocks across 22 Developed Market (DM) and 27 Emerging Markets (EM) countries*. The index aims to capture the performance of quality growth stocks by identifying stocks with high quality scores based on three main fundamental variables: high return on equity (ROE), stable year-over-year earnings growth and low financial leverage. The MSCI USA Index is designed to measure the performance of the large and mid-cap segments of the US market. The index covers approximately 85% of the free float-adjusted market capi- talization in the US. The index is unmanaged and has no fees. One cannot invest directly in an index. The MSCI USA Quality Index is based on the MSCI USA Index, its parent index, which includes large and mid cap stocks in the US equity market. The index aims to capture the performance of quality growth stocks by identifying stocks with high quality scores based on three main fundamental variables: high return on equity (ROE), stable year-over-year earnings growth and low finan- cial leverage. The indices mentioned are unmanaged and have no fees. One cannot invest directly in an index. All data is in USD. This document reflects the views of Lazard Asset Management LLC or its affiliates (“Lazard”) based upon information believed to be reliable as of the publication date. There is no guarantee that any forecast or opinion will be realized. This document is provided by Lazard Asset Management LLC or its affiliates (“Lazard”) for informational purposes only. Nothing herein constitutes investment advice or a recommendation relat- ing to any security, commodity, derivative, service or investment product. Investments in securities, derivatives and commodities involve risk, will fluctuate in price, and may result in losses. Certain assets held in Lazard’s investment portfolios, in particular portfolios, can involve high degrees of risk and volatility when compared to other assets. Similarly, certain assets held in Lazard’s investment portfolios may trade in less liquid or efficient markets, which can affect investment performance. Past performance does not guaran- tee future results. This document is provided by Lazard Asset Management LLC or its affiliates (“Lazard”) for informational purposes only. Nothing herein constitutes investment advice or a recommendation relating to any security, commodity, derivative, investment management service, or investment product. Investments in securities, derivatives, and commodities involve risk, will fluctuate in price, and may result in losses. Certain assets held in Lazard’s investment portfolios, in particular alternative investment portfolios, can involve high degrees of risk and volatility when com- pared to other assets. Similarly, certain assets held in Lazard’s investment portfolios may trade in less liquid or efficient markets, which can affect investment performance. Past performance does not guarantee future results. This document is intended only for persons residing in jurisdictions where its distribution or availability is consistent with local laws and Lazard’s local regulatory authorizations. The Lazard enti- ties that have issued this document are listed below, along with important limitations on their authorized activities. Australia: Issued by Lazard Asset Management Pacific Co., ABN 13 064 523 619, AFS License 238432, Level 39 Gateway, 1 Macquarie Place, Sydney NSW 2000, which is licensed by the Australian Securities and Investments Commission to carry on a business. This document is intended for wholesale investors only. Canada: Issued by Lazard Asset Management (Canada) Inc., 30 Rockefeller Plaza, New York, NY 10112 and 130 King Street West, Suite 1800, Toronto, Ontario M5X 1E3, a registered portfolio manager providing services to non-individual permitted clients. 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. EU Member States: 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), One Harbour View Street, 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 only on behalf of “professional investors” as defined under the Hong Kong Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) and its subsidiary legislation. Korea: Issued by Lazard Korea Asset Management Co. Ltd., 10F Seoul Finance Center, 136 Sejong-daero, Jung-gu, Seoul, 100-768. 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 docu- ment 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, #25-01 One Raffles Place Tower 1, Singapore 048616. Company Registration Number 201135005W, which provides services only to “institutional investors” or “accredited investors” as defined under the Securities and Futures Act, Chapter 289 of Singapore. Switzerland: Issued by Lazard Asset Management Schweiz AG, Usteristrasse 9, CH-8001 Zurich. United Kingdom: Issued or approved 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), providing services only to persons classified as eligible counterparties or professional clients under the rules of the FCA. United States: Issued by Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, NY 10112.

LR51755