Lazard Global Managed Volatility Fund AUG Commentary 2021 Market Overview e global equity markets continued their historic recovery with a seventh straight monthly gain in August. Momentum was strong as many indices posted multiple all-time highs during the month. e United States, overcoming a decline in consumer condence, continued to lead the major equity markets. Federal Reserve Chairman Jerome Powell calmed investors’ fear of a sharp curtailment in the central bank’s stimulus programs while indicating that economic strength was sufficient for the Fed to consider a modest reduction in its bond repurchase program. e euro area reported surprisingly strong GDP growth for the second quarter, outpacing most major economies, including those of China and the United States. Corporate earnings in Europe recovered further as vaccinations increased and the economy continued to reopen. European sell-side analysts raised their earnings estimates at a historically high rate. Japan also posted a positive month but trailed other markets; its economy grew more than expected in the second quarter, counteracting the effects of the spike in COVID-19 cases that had caused a sell-off in July. e spike will likely temper growth in the third quarter. e favorable economic news and low interest rates benetted the emerging markets, which outpaced the developed markets in August. Sector performance showed only modest dispersion in August, with every sector except materials posting a positive return. Financials were the strongest sector for the month and have taken leadership from energy for the year. Global factor performance was also relatively muted in the month. Risk measures showed mixed results as lower beta stocks and stocks with higher volatility over the past year outperformed. Other factor measures exhibited regional differences: e United States favored value and sentiment measures at the expense of growth and quality, while Europe and Japan were the mirror opposite, and growth and quality measures were rewarded. Portfolio Review e Lazard Global Managed Volatility Fund gained 1.98% in August (Net of fees in USD terms), trailing its MSCI World Index benchmark by 0.51%. Both stock selection and sector positioning accounted for the shortfall. Selection outperformed in ve of eleven sectors, led by industrials and information technology. Holdings in communication services and consumer discretionary detracted the most. Sector positioning was helped by the underweights to energy and materials, which was more than offset by the underweight to information technology and overweight to consumer staples. Regionally, selection was strongest in Canada and Sweden, and weakest in the US and Asia ex-Japan. Stocks that made the largest contribution to return included omson Reuters Corp., as second quarter results beat analysts' estimates, with higher sales across its main divisions, and as the company raised its annual revenue forecast. Underscoring its outlook, which was fueled by a recovering global economy, the global news and information company said it would buy back up to USD1.2 billion of its shares. Net prot at Novo Nordisk increased by 10% in the rst six months of 2021. e growth is driven by all geographical areas within International Operations as well as North America Operations, and by all therapy areas, in particular by their portfolio of GLP-1 treatments. e strong nancial performance in the rst half of 2021 and the initial substantial demand for their obesity drug, Wegovy, in the US, enabled them to raise their outlook for the full year. Second quarter sales at Ajinomoto rose by 11% year on year, while business prots rose by 15%. Sales rose signicantly during the quarter as a result of the demand for household products during the pandemic. Prot levels were high as a result of cost controls and by an increase in strategic spending on marketing, which was offset by increased sales. Detractors in the month included Clorox, as second quarter sales dropped 9%. Consumer demand for cleaning supplies pulled back, while the company projected more declines in scal 2022 and outlined guidance for earnings that is below analysts' expectations. We sold our position. Rio Tinto committed USD 2.4 billion in July to its Jadar project in Serbia, as global miners push into metals needed for the green energy transition, including lithium. Once completed, the Jadar project would help make Rio a top-10 lithium producer, just as demand for electric vehicles booms. However, opposition to the project is growing, because of concerns about environmental damage and protest rallies have become more frequent. Dollar General reported lower second quarter earnings, due in part to decreased numbers of shoppers in its stores; however, they raised the lower end of its scal 2021 earnings outlook and declared a quarterly dividend. Lazard Global Managed Volatility Fund Important Information This document is provided for information only and is not intended to constitute investment advice. All data contained herein are sourced by Lazard Asset Management or affiliates unless otherwise noted. The Lazard Global Managed Volatility Fund is a sub- fund of Lazard Global Active Funds plc, an open-ended investment company with variable capital structured as an umbrella fund with segregated liability between sub-funds incorporated with limited liability and is authorised and regulated as UCITS by the Central Bank of Ireland. 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