Lazard Global Investment Funds plc Interim Report and Unaudited Financial Statements For the financial period ended 30 September 2020 Contents Directors and Other Information .................................................................................... 4 Investment Manager’s Report ........................................................................................ 6 Statement of Comprehensive Income ......................................................................... 23 Statement of Financial Position ................................................................................... 27 Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders ........................................................................................... 31 Notes to the Financial Statements ............................................................................... 35 Portfolios of Investments ............................................................................................. 79 Statements of Major Changes in Investments ........................................................... 135 LAZARD GLOBAL INVESTMENT FUNDS PLC Lazard Global Investment Funds plc Financial period ended 30 September 2020 3 Directors and Other Information Registered Office Distributors 6th Floor Lazard Asset Management Limited 2 Grand Canal Square 50 Stratton Street Dublin 2 London W1J 8LL D02 A342 United Kingdom Ireland Lazard Asset Management (Deutschland) GmbH Registration Number: 467074 Neue Mainzer Strasse 75 Manager 60311 Frankfurt am Main Germany Lazard Fund Managers (Ireland) Limited 6th Floor Lazard Asset Management Securities LLC 2 Grand Canal Square 30 Rockefeller Plaza Dublin 2 NY 10112-6300 D02 A342 USA Ireland Investment Managers Lazard Asset Management Schweiz AG Usteristrasse 9 Lazard Asset Management LLC CH-8001 Zurich 30 Rockefeller Plaza Switzerland New York NY 10112-6300 Lazard Asset Management (Singapore) Pte. Limited USA 1 Raffles Place Lazard Global Convertibles Recovery Fund *** #15-02, One Raffles Place Tower 1 Lazard Emerging Markets Bond Fund Singapore 048616 Lazard Emerging Markets Local Debt Fund Lazard Emerging Markets Total Return Debt Fund Lazard Asset Management (Hong Kong) Limited Lazard Emerging Markets Debt Blend Fund Unit 7, Level 20 Lazard Emerging Markets Debt Unrestricted Blend Fund 1 Harbour View Street, Central, Lazard Emerging Markets Corporate Debt Fund Hong Kong Lazard Commodities Fund Lazard Diversified Return Fund Lazard Frères Gestion Lazard European Alternative Fund 25 Rue de Courcelles Lazard Rathmore Alternative Fund 75008 Paris Lazard US Fundamental Alternative Fund * France Lazard Opportunities Fund * Lazard Global Hexagon Equity Fund * Lazard Fund Managers (Ireland) Limited, Spanish Branch Lazard Asset Management (Deutschland) GmbH Paseo de la Castellana 140 Neue Mainzer Strasse 75 Madrid 28046 60311 Frankfurt am Main Spain Germany Lazard Fund Managers (Ireland) Limited, Belgian Branch Lazard Scandinavian High Quality Bond Fund Avenue Louise 326 Lazard European High Yield Fund ** 1050 Brussels Depositary Belgium State Street Custodial Services (Ireland) Limited Lazard Fund Managers (Ireland) Limited, Dutch Branch 78 Sir John Rogerson’s Quay Mondriaan Tower Dublin 2 Amstelplein 54 D02 HD32 26th Floor Ireland 1096 BC Amsterdam Administrator, Registrar and Transfer Agent Netherlands State Street Fund Services (Ireland) Limited Lazard Gulf Limited 78 Sir John Rogerson’s Quay Gate Village 1 Dublin 2 Level 2, Office 206 D02 HD32 Dubai International Financial Centre Ireland Dubai * Closed to new investors. P.O. Box 506644 United Arab Emirates LAZARD GLOBAL INVESTMENT FUNDS PLC ** Not yet seeded. *** Launched on 17 August 2020. Lazard Global Investment Funds plc Financial period ended 30 September 2020 4 Directors and Other Information (continued) Paying Agent in Switzerland Legal Advisers as to Irish Law NPB Neue Privat Bank AG William Fry Limmatquai 1/am Bellevue 2 Grand Canal Square P.O. Box Dublin 2 CH-8022 Zürich D02 A342 Switzerland Ireland Directors Legal Advisers as to English Law Gavin Caldwell (Irish)*/** MacFarlanes LLP Andreas Hübner (German) 20 Cursitor Street Daniel Morrissey (Irish)*/** London EC4A 1LT Jeremy Taylor (British)** United Kingdom * Independent Directors. Authorised Representative in Switzerland ** Members of the Audit Committee. ACOLIN Fund Services AG Leutschenbachstrasse 50 All Directors are Non-Executive. CH - 8050 Zürich All Directors of the Company are also Directors of the Manager. Switzerland Secretary Currency Manager Wilton Secretarial Limited State Street Bank Europe Limited 6th Floor 20 Churchill Place 2 Grand Canal Square London E14 5HJ Dublin 2 United Kingdom D02 A342 Ireland Independent Auditors PricewaterhouseCoopers Chartered Accountants and Registered Auditors One Spencer Dock North Wall Quay Dublin 1 D01 X9R7 Ireland This Interim Report and Unaudited Financial Statements (the "Reports and Accounts") may be translated into other languages. Any such translation shall only contain the same information and have the same meaning as the English language Report and Accounts. To the extent that there is any inconsistency between the English language Report and Accounts and the Report and Accounts in another language, the English language Report and Accounts will prevail, except to the extent (and only to the extent) that it is required by law of any jurisdiction where the shares are sold, that in an action based upon disclosure in a Report and Accounts in a language other than English, the language of the Report and Accounts on which such action is based shall prevail. Any disputes as to the terms of the Report and Accounts, regardless of the language of the Report and Accounts, shall be governed by and construed in accordance with the laws of Ireland. LAZARD GLOBAL INVESTMENT FUNDS PLC Lazard Global Investment Funds plc Financial period ended 30 September 2020 5 Investment Manager’s Report Lazard Global Convertibles Recovery Fund Investment Review Over the period from inception 17 August 2020 to 30 September 2020, the Lazard Global Convertibles Recovery Fund (the “Fund”) returned -1.10% in US dollar terms 1. Market Review Since inception to September 2020, global equity markets receded, as investor optimism wavered due to new uncertainties. Despite economic headwinds, world stock markets have trended upward since March, thanks largely to the willingness of investors to look beyond discouraging developments and instead focused on the months ahead, when they hoped that corporate earnings will recover and a vaccine will be found for the coronavirus. The ultra-accommodative monetary policy stances adopted by key central banks, combined with the massive amounts of fiscal stimulus supplied by governments, have served as a backstop for the world economy and buoyed market confidence. In September, however, investors were confronted with a new set of worries, leading to the first decline for global equity markets since March. In the US, September proved to be a volatile, risk-off month, due largely to growing anxiety about the possibility of a contested presidential election result and signs that political dysfunction will impede the enactment of another coronavirus relief bill. Investors were also worried that after five consecutive months of gains, US stock prices had grown too expensive. Despite the market sell-off in the month, the solid gain recorded by the S&P 500 Index in the third quarter marked the best back-to-back quarterly performance for the benchmark since 2009. Across the Atlantic, European equity markets pulled back as the rising number of coronavirus cases across the continent, uncertainty about the future availability of credit from the European Central Bank, and the renewed possibility that the UK might leave the European Union without a trade agreement in place all weighed on risk sentiment. Portfolio Review What Contributed to Returns: • The positions in the transportation sector, in particular cruise operators, contributed positively during the period as booking for 2021 remain on a solid footing • Our exposure to healthcare added to performance as some issuers published encouraging data on key products pipeline • Our selection in North America was additive, generating positive performance on the backdrop of declining US equities prices during the period What Detracted from Returns: • Our positions in the communication sector detracted, in particular in China were competition in the social network and short video space intensified • Our exposure to industrials, in particular in Europe, detracted to performance due to a mix of company specific news and overall sector weakness • Finally, the exposure to energy, and in particular to US Oil and Gas, detracted as oil prices declined globally Outlook We currently observe a high convexity within the asset class, which makes it particularly relevant during volatile times. Convertible bonds have the potential to offer investors a way to participate in rebounds in the equity market while benefiting from a reduced chance of capital impairment, thanks to their bond component. Currently, we observe many undervalued convertible bonds from an equity and/or credit standpoint and expect a continued equity recovery during the coming months. While we believe that the equity recovery will continue, we expect intermittent cycles of sector rotations. These rotations will be especially pronounced between companies involved in cloud computing and e-commerce, as well as those that have