Lazard Fund Managers Limited Lazard Investment Funds · Company Information and Director’s...

Lazard Fund Managers Limited

Lazard Investment FundsInterim Report & Financial StatementsFor the period ended 31 March 2020

2

Contents

Company Information and Director’s Report* 3

Notes to the Financial Statements of all Sub-funds* 5

Lazard Developing Markets Fund 6

Lazard Emerging Markets Fund 13

Lazard European Alpha Fund 20

Lazard European Smaller Companies Fund 27

Lazard Global Equity Income Fund 34

Lazard Managed Balanced Fund 41

Lazard Managed Equity Fund 50

Lazard Multicap UK Income Fund 56

Lazard UK Omega Fund 63

Lazard UK Smaller Companies Fund 70

Management & Professional Services* 77

* Collectively these pages together with the Investment Manager's Reports, Portfolio Statements and Fund Facts of the individual Sub-funds comprise the AuthorisedCorporate Directors' Report. Information specific to each Sub-fund is detailed within its respective section.

Lazard Investment Funds – Interim Report and Financial Statements March 2020

3

CompanyLazard Investment FundsRegistered Number IC42

Registered Office50 Stratton StreetLondon W1J 8LL

DirectorThe Authorised Corporate Director (‘ACD’) is Lazard Fund Managers Limited which is the sole director.

Board of Directors of the ACDJeremy Taylor John ReinsbergNathan PaulHemen Victor Tseayo (appointed 20 November 2019 as an independent, non-executive director)Nicholas Ian Emmins (appointed 20 November 2019 as an independent, non-executive director)

Director’s ReportThe Director presents its report and financial statements of the Lazard Investment Funds ('the Company') for the period ended31 March 2020.

IncorporationThe Company is an open-ended investment company (OEIC) with variable capital incorporated in England under registrationnumber IC42. The Company is authorised by the Financial Conduct Authority (FCA) as a UCITS Scheme as defined in theCollective Investment Schemes Sourcebook (COLL), with ten constituent parts; Lazard Developing Markets Fund, LazardEmerging Markets Fund, Lazard European Alpha Fund, Lazard European Smaller Companies Fund, Lazard Global EquityIncome Fund, Lazard Managed Balanced Fund, Lazard Managed Equity Fund, Lazard Multicap UK Income Fund, Lazard UKOmega Fund, and Lazard UK Smaller Companies Fund. All of these Sub-funds have their own investment objective and policy.

The Company’s investment and borrowing powers and restrictions are prescribed by the Open-Ended Investment CompaniesRegulations 2001 (SI 2001/1228) and the COLL as issued and amended by the FCA. Each Sub-fund can have several shareclasses with different characteristics. As a consequence each share class has a different price. There is a single price for buying,selling and switching shares in each share class of the Sub-funds. This price is derived from the net asset value of each Sub-fundattributable to the relevant share class.

The financial statements have been prepared to cover the period from 1 October 2019 to 31 March 2020.

The shareholders are not liable for the debts of the Company. Each Sub-fund would, if it were a separate investment companywith variable capital, be a securities scheme.

Principal ActivitiesThe Company’s principal activity is to carry on business as an open-ended investment company.

The Company is structured as an umbrella company so that the Scheme Property of the Company may be divided among two or more Sub-funds. The assets of a Sub-fund belong exclusively to that Sub-fund and cannot be used to discharge directly orindirectly the liabilities of, or claims against, any other person or body, including the Company or any other Sub-fund, and shallnot be available for any such purpose. New Sub-funds may be established from time to time by the ACD with the approval of the FCA and the agreement of the Depositary. If a new Sub-fund is introduced, a new prospectus will be prepared to set out therequired information in relation to that Sub-fund.

Changes to the ProspectusThe prospectus was updated on 20 January 2020. The investment policy and objectives of the Sub-funds have been updated, andthe closure threshold for the EA share class in the Lazard UK Omega Fund was changed from £200m to £300m.


Company Information and Director’s Report

4

Securities Financing Transactions RegulationThe Securities Financing Transactions Regulation, as published by the European Securities and Markets Authority, aims toimprove the transparency of the securities financing markets.

During the period to 31 March 2020 and at the balance sheet date, the Company did not use SFTs or total return swaps, as suchno disclosure is required.

Holdings in other Sub-funds of the CompanyAs at 31 March 2020, no Sub-funds held shares in any other Sub-fund of the Company.

ResultsThe results for each Sub-fund are set out in detail in the relevant section of this report.

On behalf of the ACDJeremy Taylor

26 May 2020


Company Information and Director’s Report continued

5

Accounting policies

Basis of accountingThe financial statements of the Company comprise the financial statements of each of the Sub-funds and have been prepared on agoing concern basis in accordance with United Kingdom Generally Accepted Accounting Practice (UK GAAP) and the Statement ofRecommended Practice “Financial Statements of UK Authorised Funds” issued by the Investment Management Association (nowknown as the Investment Association) in May 2014 (the “SORP”). In applying UK GAAP, the financial statements have beenprepared in compliance with Financial Reporting Standard 102 (FRS 102).

All accounting policies used to prepare the interim financial statements are as per the audited financial statements for the year ended30 September 2019.


Notes to the Financial Statements of all Sub-funds

6

Investment Manager’s ReportInvestment Objective

The objective of the Lazard Developing Markets Fund (the “Sub-fund”) is to seek long-term capital growth through adiversified portfolio primarily of equity and equity related shares and securities including warrants, depositary receipts,preference shares and other transferable securities.

Investment ReviewOver the six-month period ending 31 March 2020, the Sub-fund returned -22.68% in sterling terms, against the MSCIEmerging Markets Index, which returned -15.08%(1).

Investment PolicyThe Sub-fund will invest at least 70% in equity and equity-related securities of, or relating to, companies domiciled,incorporated, listed in, or which have a significant portion of their business in Developing Market Countries (as defined inthe Prospectus). Such securities may include exchange traded and over-the-counter common and preferred stocks, warrants,rights (which are issued by a company to allow holders to subscribe for additional securities issued by that company),depositary receipts and preference shares. The Sub-fund is actively managed and may invest in any industry sector.

Market reviewDeveloping markets equities experienced a volatile and highly turbulent six months to 31 March 2020. The periodbegan with worries over trade concerns between China and the United States dominating markets and ended with the coronavirus pandemic devastating world economic activity and markets. This further perpetuated itself into a crude oil price war between Saudi Arabia and Russia caused by disagreement over production cuts.

Demonstrations in Chile and Colombia in late 2019 over social issues held back some share prices there. However,pension reform legislation in Brazil bolstered Latin American markets before year end. All Latin American marketswere severely hit by expectations of lower economic growth once COVID-19 became a global pandemic and manycountries were put on lock down.

Russian stock prices were strong in late 2019 on shareholder-friendly measure like share buybacks and cancellations.Greek shares benefited from optimism over a new government. This dramatically changed in early 2020 as thecoronavirus spread through Europe. Tourism markets such as Greece witnessed sharp stock price weakness. Lower crude oil prices severely hit Russian shares. Central bank interest rate cuts across most markets did not cushion the blow, undermining equity prices.

A phase one trade agreement in late 2019 between China and the United States greatly improved economicexpectations and increased share prices across Asia. Central bank measures to stimulate the market as well as aggressive quarantine measures also acted to support the Chinese market. As a result, the Chinese market was the only emerging market to rise over the six months.


Lazard Developing Markets Fund

All data contained herein is sourced by Lazard Asset Management unless otherwise noted as at 31 March 2020.

(1) Source: Lazard Asset Management, NAV to NAV Price, net income reinvested in sterling, A Accumulation share class net of fees, to 31 March 2020.

Figures refer to past performance which is not a reliable indicator of future results.

7

Portfolio Review

What contributed to Returns• An overweight to the information technology sector, as well as stock selection within Mexico contributed positively

• NetEase, a Chinese publisher of online and PC-based games, reported strong fourth quarter results, and is expected to experience robust 2020 returns given a strong game pipeline and being a beneficiary of social distancing practicesduring the COVID-19 outbreak

• Anhui Conch, a Chinese cement manufacturer, was expected to benefit from increased infrastructure spending as part of a Chinese stimulus package

• China Construction Bank, a Chinese bank, outperformed the market on the back of optimism that the coronaviruspandemic had peaked in China and that the bank was well positioned given its high-quality loan book and strongcapital position

What detracted from Returns• An underweight exposure to China hurt returns, as did stock selection in India and the financials, communication

services, consumer discretionary, and information technology sectors

• Banco do Brasil, a Brazilian bank, is expected to experience pressure on growth amid economic pressure from COVID-19

• Sberbank, a Russian bank, was hurt by negative country-related sentiment as Saudi Arabia and Russia entered into an oil price war that coincided with a steep decline in demand and a subsequent plunge in oil prices

• Bank Mandiri, an Indonesian bank, fell along with the Indonesian market on the back of coronavirus concerns following the first fatalities in the country

OutlookThe COVID-19 pandemic is likely to be a factor in the short term, with the potential for economic news and investorsentiment to worsen until we see a flattening of infection curves and positive developments on treatments and vaccines tomanage the virus in future years. Emerging markets depend on growth. The economic growth premium that was expected to move back in emerging markets’ favour over developed markets this year has likely been delayed until infection ratesbegin to plateau across the developing world. While we expect global economic growth to return within the next year, thispossibility makes security selection within the asset class even more critical going forward.


Lazard Developing Markets Fund continued

8

Brazil (10.47%) 1,859 6.40Banco Bradesco ADR 83,069 270 0.93Duratex 94,300 136 0.47Notre Dame Intermedica Participacoes 41,487 290 1.00PagSeguro Digital 12,900 201 0.69Petroleo Brasileiro pref. 88,507 192 0.66Rumo 190,416 580 2.00Stone 10,800 190 0.65

Canada (1.04%) 315 1.08First Quantum Minerals 78,037 315 1.08

China (27.25%) 10,553 36.32Alibaba ADS 13,182 2,065 7.11Anhui Conch Cement ‘H’ 54,500 305 1.05Beijing Enterprises Water 824,000 258 0.89China State Construction 601,611 359 1.24CNOOC 320,240 271 0.93Focused Photonics Hangzhou 168,120 229 0.79Momo ADR 30,448 532 1.83NetEase ADR 2,900 750 2.58New Oriental Education ADR 8,427 736 2.53Ping An Insurance 73,500 582 2.00Shenzhen Inovance Technology 118,800 349 1.20Tencent 55,200 2,183 7.51Trip.com ADR 14,444 274 0.94Weibo ADR 6,441 172 0.59Wuliangye Yibin 43,900 575 1.98Zhongsheng 121,000 339 1.17Zto Express (Cayman) 'A' 26,983 574 1.98

Colombia (2.97%) 329 1.13Bancolombia 16,441 329 1.13

Hong Kong (2.19%) 932 3.21China Gas 107,000 300 1.03SJM 429,000 292 1.01Techtronic Industries 65,259 340 1.17

India (10.10%) 2,381 8.20HDFC Bank ADS 15,719 487 1.68ICICI Bank ADR 69,135 473 1.63Motherson Sumi Systems 306,351 199 0.68Mphasis 30,131 212 0.73Reliance Industries 40,457 474 1.63Shriram Transport Finance 25,950 179 0.62UPL 101,392 357 1.23

Indonesia (1.95%) 460 1.58Bank Rakyat Indonesia 3,079,000 460 1.58

Mexico (1.60%) 305 1.05Grupo Financiero Banorte 136,900 305 1.05

Peru (2.55%) 491 1.69Credicorp 4,256 491 1.69

Philippines (1.76%) 661 2.27BDO Unibank 292,390 480 1.65International Container Terminal Services 152,641 181 0.62

Portugal (2.38%) – –

Russia (8.08%) 1,212 4.17Mail.ru GDR 25,067 328 1.13Novatek GDR 2,059 192 0.66Sberbank 135,762 262 0.90Yandex 'A' 15,686 430 1.48

South Africa (4.01%) 796 2.74Capitec Bank 11,693 465 1.60Standard Bank 71,626 331 1.14

Portfolio statementas at 31 March 2020

Market Value % of NetHolding £’000 Assets



9

South Korea (10.67%) 3,400 11.70NCsoft 1,348 582 2.00Samsung Biologics 1,714 547 1.88Samsung Electronics 49,244 1,558 5.36S-Oil 6,640 251 0.87WONIK IPS 28,012 462 1.59

Taiwan (7.68%) 3,878 13.35Airtac International 54,000 647 2.23ASE Technology 160,220 250 0.86Bizlink 104,000 454 1.56Catcher Technology 46,950 244 0.84Chroma ATE 104,000 341 1.17Hiwin Technologies 40,000 213 0.73Largan Precision 2,328 237 0.82MediaTek 29,000 253 0.87Silicon Motion Technology ADR 19,018 562 1.94Taiwan Semiconductor Manufacturing 93,000 677 2.33

United Arab Emirates (1.44%) – –

United Kingdom (1.16%) 476 1.64KAZ Minerals 135,638 476 1.64

Portfolio of investments (97.30%) 28,048 96.53

Net other assets (2.70%) 1,009 3.47

Net assets attributable to Shareholders 29,057 100.00

Unless otherwise stated, all holdings are quoted in ordinary shares and listed on a recognised exchange.

The percentages in brackets show the equivalent comparative holdings as at 30.09.19.

Portfolio statement continuedas at 31 March 2020




10

Statement of total returnfor the period ended 31 March 2020

Statement of change in net assets attributable to Shareholdersfor the period ended 31 March 2020

The difference between the opening net assets and the comparative closing net assets is the second half of the year.

Balance sheetas at 31 March 2020

31.03.20

£’000 £’000

31.03.19

£’000 £’000

IncomeNet capital (losses)/gains Revenue

Expenses Interest payable and similar charges

Net expense before taxationTaxation

Net expense after taxation

Total return before distributions

Distributions

Change in net assets attributable to Shareholders from investment activities

(7,515) 212 (213) —

(1) (12)

(13)

(7,528)

—

(7,528)

3,113 215(273)—

(58) (48)

(106)

3,007

—

3,007

31.03.20

£’000 £’000

31.03.19

£’000 £’000

Opening net assets attributable to ShareholdersAmounts receivable on creation of sharesAmounts payable on cancellation of shares


Closing net assets attributable to Shareholders

63,195 3,987

(30,597) (26,610) (7,528)

29,057

37,746 15,915(1,186)

14,7293,007

55,482

31.03.20

£’000 £’000

30.09.19

£’000 £’000

AssetsFixed assetsInvestments

Current assetsDebtors Cash and bank balances

Total other assets

Total assets

LiabilitiesCreditorsBank OverdraftsDistribution payable Other creditors

Total other liabilities

Total liabilities

Net assets attributable to Shareholders

28,048

244 870

1,114

29,162

(1) —

(104) (105)

(105)

29,057

61,489

3611,480

1,841

63,330

—(2)

(133)(135)

(135)

63,195



11



Notes to the Financial Statements

Accounting policiesThe accounting policies for the Sub-fund are those disclosed in the notes to the financial statements of all Sub-funds on page 5.

Fund facts as at 31 March 2020

Operating Charges (OC) March 2020

A Income shares 1.20%A Accumulation shares 1.20%B Income shares 1.70%B Accumulation shares 1.70%C Income shares 1.05%C Accumulation shares 1.05%

The Operating Charges (OC) represent the annual operating expenses of the Sub-fund expressed as a percentage of average net assets - it does not include initial charges orperformance fees. The OC includes the annual management charge and also the following charges which are deducted directly from the Sub-fund: Registration fees,Depositary fees, Safe Custody fees, Audit fee, FCA fee, Distribution fees, Issuance fees, Non-audit fees, and Custodial transaction fees where applicable. The OC isexpressed as an annual percentage rate.

Synthetic Risk and Reward Indicator (SRRI)

The risk and reward category is calculated using historic data and may not be a reliable indicator of the Sub-fund’s future risk profile. The risk and reward category may shiftover time and is not a target or guarantee.The lowest category (i.e. category 1) does not mean “risk free”.The Sub-fund appears in the higher risk category on the risk and reward indicator.This is because the Sub-fund invests primarily in shares, whose values tend to have higher price fluctuations.The returns from your investment may be affected by changes in the exchange rate between the Sub-fund's base currency, the currency of the Sub-fund's investments, yourshare class and your home currency.Developing markets may also have less developed political, economic and legal systems and there is a higher risk that the Sub-fund may not get back its money.The Sub-fund may invest in units or shares of other investment Sub-fund’s. Such other Sub-fund’s may themselves be subject to their own fees and expenses.There is no capital guarantee or protection of the value of the Sub-fund. The value of your investment and the income from it can go down as well as up and you may not getback the amount you originally invested.See “Risk Factors” in the UCITS Prospectus for more information about risks.

Number of Shares in Circulation

Distribution Information

A sharesA shortfall for Income and Accumulation shares arose because expenses exceeded the revenue of the class. This being the case there is no distribution payable on 31 May 2020.

B sharesA shortfall for Income and Accumulation shares arose because expenses exceeded the revenue of the class. This being the case there is no distribution payable on 31 May 2020.

C sharesThe distribution payable on 31 May 2020 is 0.0141p net per share for C Income shares and 0.0199p net per share for C Accumulation shares.

Typically Lower Rewards Typically Higher Rewards

Lower Risk Higher Risk

1 2 3 4 5 6 7

Shares in circulation at period endMar 2020 Sep 2019 Sep 2018

A Income sharesA Accumulation sharesB Income sharesB Accumulation sharesC Income sharesC Accumulation shares

9,897 26,538,086

43,879 98,494 159,444

1,344,431

12,03747,306,513

45,086100,645200,507

1,335,585

15,71530,295,592

40,87199,379138,828

1,261,877

12

Fund facts continuedas at 31 March 2020

Net Asset Value (pence per share)

Risk warningIt is important to remember that past performance is not a guide to the future. The value of shares and the income from them can go down as well as up. An investor may get backless than their original investment.

For the six month period endedMar 2020 Mar 2019 Mar 2018

A Income sharesOpening net asset value per shareClosing net asset value per share% Change in net asset value per share

A Accumulation sharesOpening net asset value per shareClosing net asset value per share% Change in net asset value per share

B Income sharesOpening net asset value per shareClosing net asset value per share% Change in net asset value per share

B Accumulation sharesOpening net asset value per shareClosing net asset value per share% Change in net asset value per share

C Income sharesOpening net asset value per shareClosing net asset value per share% Change in net asset value per share

C Accumulation sharesOpening net asset value per shareClosing net asset value per share% Change in net asset value per share

123.7198.88

-20.07%

129.01103.11-20.08%

121.7197.04

-20.27%

123.5798.52

-20.27%

121.4097.09

-20.02%

129.26103.40-20.01%

114.39119.704.64%

118.55124.054.64%

112.62117.554.38%

114.12119.114.37%

112.28117.594.73%

118.60124.194.71%

120.11122.822.26%

124.21127.022.26%

118.61120.992.01%

120.16122.572.01%

118.31121.092.35%

124.06126.972.35%



13


The objective of the Lazard Emerging Markets Fund (the “Sub-fund”) is to seek long term capital growth.

Investment ReviewOver the six-month period ending 31 March 2020, the Sub-fund returned -22.68% in sterling terms, against the MSCIEmerging Markets Index, which returned -15.08%(1).

Investment PolicyThe Sub-fund will invest at least 70% in the equity and equity-related securities of, or relating to, companiesdomiciled, incorporated, listed in, or which have a significant portion of their business in Emerging Market Countries(as defined in Prospectus). Such securities may include exchange traded and over-the-counter common and preferredstocks, warrants, rights (which are issued by a company to allow holders to subscribe for additional securities issued bythat company), depositary receipts and preference shares. The Sub-fund is actively managed and may invest in anyindustry sector.

Market reviewEmerging markets equities experienced a volatile and highly turbulent six months to 31 March 2020. The period began with worries over trade concerns between China and the United States dominating markets and ended with the coronavirus pandemic devastating world economic activity and markets. This further perpetuated itself into a crude oil price war between Saudi Arabia and Russia caused by disagreement over production cuts.

Demonstrations in Chile and Colombia in late 2019 over social issues held back some share prices there. However,pension reform legislation in Brazil bolstered Latin American markets before year end. All Latin American marketswere severely hit by expectations of lower economic growth once COVID-19 became a global pandemic and manycountries were put on lock down.

Russian stock prices were strong in late 2019 on shareholder-friendly measure like share buybacks and cancellations.Greek shares benefited from optimism over a new government. This dramatically changed in early 2020 as thecoronavirus spread through Europe. Tourism markets such as Greece witnessed sharp stock price weakness. Lowercrude oil prices severely hit Russian shares. Central bank interest rate cuts across most markets did not cushion theblow, undermining equity prices.

A phase I trade agreement in late 2019 between China and the United States greatly improved economic expectationsand increased share prices across Asia. Central bank measures to stimulate the market as well as aggressive quarantinemeasures also acted to support the Chinese market. As a result, the Chinese market was the only emerging market torise over the six months.


Lazard Emerging Markets Fund




14

Portfolio Review

What contributed to Returns• An overweight to the information technology sector, as well as stock selection within Mexico contributed positively

• NetEase, a Chinese publisher of online and PC-based games, reported strong fourth quarter results, and is expected to experience robust 2020 returns given a strong game pipeline and being a beneficiary of social distancing practicesduring the COVID-19 outbreak

• Anhui Conch, a Chinese cement manufacturer, was expected to benefit from increased infrastructure spending as part of a Chinese stimulus package

• China Construction Bank, a Chinese bank, outperformed the market on the back of optimism that the coronaviruspandemic had peaked in China and that the bank was well positioned given its high-quality loan book and strongcapital position

What detracted from Returns• An underweight exposure to China hurt returns, as did stock selection in India and the financials, communication

services, consumer discretionary, and information technology sectors

• Banco do Brasil, a Brazilian bank, is expected to experience pressure on growth amid economic pressure from COVID-19

• Sberbank, a Russian bank, was hurt by negative country-related sentiment as Saudi Arabia and Russia entered into an oil price war that coincided with a steep decline in demand and a subsequent plunge in oil prices

• Bank Mandiri, an Indonesian bank, fell along with the Indonesian market on the back of coronavirus concerns following the first fatalities in the country

OutlookThe COVID-19 pandemic is likely to be a factor in the short term, with the potential for economic news and investorsentiment to worsen until we see a flattening of infection curves and positive developments on treatments and vaccines tomanage the virus in future years. Emerging markets depend on growth. The economic growth premium that was expected to move back in emerging markets’ favour over developed markets this year has likely been delayed until infection rates begin to plateau across the developing world. While we expect global economic growth to return within the next year, this possibility makes security selection within the asset class even more critical going forward.


Lazard Emerging Markets Fund continued

15

Brazil (9.14%) 31,331 5.52Ambev ADR 1,350,950 2,517 0.44Banco do Brasil 2,470,862 10,712 1.89BB Seguridade Participacoes 1,865,000 7,206 1.27CCR 3,835,110 6,995 1.23Cielo 3,741,032 2,583 0.46IRB Brasil Resseguros 876,400 1,318 0.23

China (19.71%) 145,000 25.57AAC Technologies 1,275,662 5,329 0.94Anhui Conch Cement ‘H’ 2,327,269 13,040 2.30Baidu ADR 83,240 6,762 1.19China Construction Bank 'H' 43,251,103 28,487 5.02China Merchants Bank ‘H’ 2,834,500 10,308 1.82China Mobile ADR 689,536 20,948 3.69China Shenhua Energy 'H' 3,274,827 5,023 0.89CNOOC 13,223,375 11,172 1.97ENN Energy 633,500 4,944 0.87Hengan International 1,419,000 8,608 1.52NetEase ADR 42,710 11,038 1.95Ping An Insurance 529,500 4,193 0.74Sinopharm 2,460,555 4,439 0.78Weichai Power 8,273,588 10,709 1.89

Egypt (1.25%) 6,947 1.23Commercial International Bank GDR 2,396,203 6,947 1.23

Hong Kong (1.37%) 7,217 1.27ASM Pacific Technology 963,400 7,217 1.27

Hungary (2.02%) 10,082 1.78OTP Bank 431,239 10,082 1.78

India (11.18%) 59,936 10.57Axis Bank 1,252,147 5,046 0.89Bajaj Auto 191,706 4,108 0.72Bharat Petroleum 898,921 2,984 0.53Bharti Infratel 2,345,313 4,000 0.71Coal India 2,596,597 3,870 0.68HCL Technologies 1,783,306 8,230 1.45Hero Moto 288,645 4,863 0.86Infosys ADR 1,150,517 7,618 1.34Oil & Natural Gas 5,459,825 3,946 0.70Tata Consultancy Services 561,309 10,879 1.92UPL 1,248,582 4,392 0.77

Indonesia (5.14%) 20,431 3.60Astra 22,712,000 4,312 0.76Bank Mandiri Persero 33,937,310 7,854 1.38PT Telekomunikasi Indonesia ADR 531,300 8,265 1.46

Luxembourg (0.79%) 3,369 0.60Ternium ADR 352,520 3,369 0.60

Malaysia (0.43%) 1,392 0.25British American Tobacco - Malaysia 725,500 1,392 0.25

Mexico (3.82%) 23,383 4.12America Movil ADR 1,376,717 13,080 2.31Grupo Mexico 3,844,503 5,741 1.01Kimberly-Clark de Mexico 3,686,300 4,562 0.80

Netherlands (0.00%) 8,049 1.42Unilever 203,485 8,049 1.42

Pakistan (0.72%) 2,920 0.52Habib Bank 2,202,505 1,102 0.20Pakistan Petroleum 5,188,478 1,818 0.32

Philippines (0.76%)

Portugal (0.22%) 4,477 0.79Galp Energia 486,941 4,477 0.79





16

Russia (9.51%) 46,674 8.23Alrosa 10,663,196 7,017 1.24Gazprom ADR 1,247,931 4,669 0.82Magnit GDR 616,008 4,452 0.79Mobile Telesystems ADR 1,262,610 7,739 1.36PJSC Lukoil ADR 168,868 8,169 1.44Sberbank 7,580,114 14,628 2.58

South Africa (6.51%) 29,953 5.28Anglo American 164,084 2,324 0.41Bidvest 578,647 3,820 0.67Life Healthcare 4,450,351 3,698 0.65Nedbank 484,494 1,808 0.32Sanlam 1,510,326 3,484 0.61Shoprite 943,943 5,323 0.94Standard Bank 732,108 3,388 0.60Vodacom 1,156,077 6,108 1.08

South Korea (15.31%) 84,021 14.82Coway 142,359 5,451 0.96Hyundai Mobis 64,853 7,282 1.28KB Financial 385,808 8,831 1.56KT&G 99,409 4,913 0.87Samsung Electronics 795,408 25,162 4.44Shinhan Financial 490,400 9,276 1.64SK Hynix 418,697 23,106 4.07

Taiwan (5.31%) 28,366 5.00Catcher Technology 839,000 4,363 0.77Hon Hai Precision Industry 4,363,368 8,122 1.43Novatek Microelectronics 169,000 775 0.14Taiwan Semiconductor Manufacturing 2,074,889 15,106 2.66

Thailand (1.68%) 8,130 1.43Kasikornbank 1,783,000 3,987 0.70Siam Cement 520,350 4,143 0.73

Turkey (3.27%) 11,723 2.07KOC 3,404,395 5,591 0.99Tupras-Turkiye Petrol Rafinerileri 663,714 6,132 1.08

United Kingdom (0.71%) 5,002 0.88Mondi 362,175 5,002 0.88


Net other assets (1.15%) 28,665 5.05








17





31.03.20

£’000 £’000

31.03.19

£’000 £’000

IncomeNet capital (losses)/gains Revenue


Net revenue before taxationTaxation

Net revenue after taxation


Distributions


(167,809) 11,009 (4,113)

—

6,896 (459)

6,437

(161,372)

(5,734)

(167,106)

10,230 12,286(5,265)

(1)

7,020(1,622)

5,398

15,628

(5,419)

10,209

31.03.20

£’000 £’000

31.03.19

£’000 £’000


Change in net assets attributable to Shareholders from investment activitiesRetained distribution on accumulation sharesUnclaimed distributions


885,587 116,504 (271,550)

(155,046)

(167,106) 3,633 —

567,068

1,025,532 49,982 (92,803)

(42,821)

10,209 2,650

1

995,571

31.03.20

£’000 £’000

30.09.19

£’000 £’000



Total other assets

Total assets

LiabilitiesCreditorsDistribution payable Other creditors


Total liabilities


538,403

4,047 31,459

35,506

573,909

(1,672) (5,169)

(6,841)

(6,841)

567,068

875,433

2,383 19,047

21,430

896,863

(7,104) (4,172)

(11,276)

(11,276)

885,587



18







A Income shares 1.09%A Accumulation shares 1.09%B Income shares 1.59%B Accumulation shares 1.59%S Income shares 0.94%S Accumulation shares 0.94%

The Operating Charges (OC) represent the annual operating expenses of the Sub-fund expressed as a percentage of average net assets - it does not include initial charges or performance fees. The OC includes the annual management charge and also the following charges which are deducted directly from the Sub-fund: Registration fees,Depositary fees, Safe Custody fees, Audit fee, FCA fee, Distribution fees, Issuance fees, Non-audit fees, and Custodial transaction fees where applicable. The OC isexpressed as an annual percentage rate.


The risk and reward category is calculated using historic data and may not be a reliable indicator of the Sub-fund’s future risk profile. The risk and reward category may shiftover time and is not a target or guarantee.The lowest category (i.e. category 1) does not mean “risk free”.The Sub-fund appears in the higher risk category on the risk and reward indicator.This is because the Sub-fund invests primarily in shares, whose values tend to have higher price fluctuations.The returns from your investment may be affected by changes in the exchange rate between the Sub-fund’s base currency, the currency of the Sub-fund's investments, yourshare class and your home currency.Emerging markets may also have less developed political, economic and legal systems and there is a higher risk that the Sub-fund may not get back its money.The Sub-fund may invest in units or shares of other investment Sub-fund’s. Such other Sub-fund’s may themselves be subject to their own fees and expenses.There is no capital guarantee or protection of the value of the Sub-fund. The value of your investment and the income from it can go down as well as up and you may not getback the amount you originally invested.See “Risk Factors” in the UCITS Prospectus for more information about risks.



A sharesThe distribution payable on 31 May 2020 is 1.9957p net per share for A Income shares and 2.5516p net per share for A Accumulation shares.

B sharesThe distribution payable on 31 May 2020 is 1.3031p net per share for B Income shares and 1.5727p net per share for B Accumulation shares.

S sharesThe distribution payable on 31 May 2020 is 0.8902p net per share for S Income shares and 1.0247p net per share for S Accumulation shares.



1 2 3 4 5 6 7


A Income sharesA Accumulation sharesB Income sharesB Accumulation sharesS Income sharesS Accumulation shares

30,897,972 99,871,435 5,100,283 5,734,448

111,124,508 97,038,243

36,062,131104,530,1766,585,7427,633,901

238,752,04271,668,140

44,588,969117,563,18517,945,3158,689,366

330,443,06153,294,687

19









S Income sharesOpening net asset value per shareClosing net asset value per share% Change in net asset value per share

S Accumulation sharesOpening net asset value per shareClosing net asset value per share% Change in net asset value per share

280.76216.22-22.99%

358.90278.94-22.28%

282.12217.40-22.94%

340.80264.19-22.48%

113.6487.50

-23.00%

130.11101.21-22.21%

271.48274.231.01%

339.27344.461.53%

272.83275.571.00%

323.78327.911.28%

109.88110.991.01%

122.81124.791.61%

291.89300.763.04%

357.87370.103.42%

293.30302.223.04%

343.22354.073.16%

118.15121.733.03%

129.35133.873.49%



20


The objective of the Lazard European Alpha Fund (the “Sub-fund”) is to achieve capital growth at a rate greater thanthat of the FTSE World Europe ex UK Index, measured in sterling.

Investment ReviewOver the six-month period ending 31 March 2020, the Sub-fund returned -16.90% in sterling terms, against the FTSE WorldEurope ex UK Index, which returned -16.74%(1).

Investment PolicyThe Sub-fund will invest at least 80% in equities and equity-related securities (namely, shares, common and preferredstock, warrants and rights). The Sub-fund will typically consist of between 45 to 60 holdings in European companies.The Sub-fund is actively managed and may invest in companies in any industry sector and of any market capitalisation.

Market reviewEuropean markets had risen strongly in the final quarter of 2019, with investor sentiment at the end of year becomingmore optimistic with geopolitical risks appearing to moderate, as well as the signing of a ‘phase one’ trade deal betweenthe US and China and the result of the UK general election, helping boost markets. Market confidence remained highinto the start of 2020, until markets fell sharply in February and March as the coronavirus (COVID-19) spread acrossthe globe, weighing heavily on both markets and the global economy. Italy, Spain and France were some of the worstaffected regions on the continent. Governments all across Europe moved to stricter measures to slow the transmissionof the virus, leading to significantly reduced business activity. Early manufacturing PMI data across the euro zonesupported the view that Europe is heading into recession. In an attempt to provide support to both markets and the economy unprecedented monetary and fiscal measures were announced. For example, the G20 Governmentsannounced $5 trillion of support in total, while the US Federal Reserve cut rates to zero and committed to unlimitedexpansion of bond purchasing programs to backstop the US economy (a key indicator of the health of the globaleconomy). The European Central Bank also announced a substantial bond purchasing program to help supportEuropean markets (although it kept rates in the negative territory they were already at).

All sectors performed negatively over the period, with the exception of the more defensive health care sector. The worst performing sectors were financials and oil & gas, with the latter driven by falling oil prices as the coronavirus pandemic weighed heavily on demand, and Saudi Arabia decided to raise oil production after a breakdown in Russia-OPEC talks.


Lazard European Alpha Fund


(1) Source: Lazard Asset Management, NAV to NAV Price, net income reinvested in sterling, A Income share class net of fees, to 31 March 2020.


21

Portfolio Review

What contributed to Returns• Stock selection in basic materials, technology and financials

• An overweight position in German-listed business Scout24, which is Europe’s leading online classified advertisingbusiness, contributed to performance

• Not owning industrial business Airbus contributed to performance as the airline industry experienced a sharp downfallas a result of the challenging market environment

What detracted from Returns• Stock selection in industrials, utilities and consumer goods

• An underweight to pharmaceutical group Roche and lack of exposure to consumer goods giant Nestlé hurt performance,as both defended well during the market sell-off

• French listed utilities business Engie detracted largely as a result of lockdown measures due to COVID-19

OutlookThe global spread of the Coronavirus Disease 2019 (COVID-19) has created a significant amount of market volatility andsubsequently a steep sell-off in equity markets. While the situation remains incredibly fluid, and the full impact of thepandemic on companies’ valuations and earnings is not yet fully known, we believe that some companies that are able toweather this event-driven shock offer a rare opportunity to invest in attractive businesses at historically low valuations.Companies with strong balance sheets, healthy margins, established and sustainable cash flows, and lower financial leverageshould be better positioned relative to peers during and after this global health emergency. We continue to believe that ouractive, bottom-up, fundamental stock selection approach is best suited to uncovering investment opportunities at attractivevaluations and avoiding unintended risks, even during these unprecedented times.


Lazard European Alpha Fund continued

22

Austria (2.49%) 731 1.14BAWAG 32,922 731 1.14

Belgium (1.24%) – –

Denmark (2.81%) 3,461 5.40Carlsberg series 'B' shares 15,232 1,400 2.18Genmab 6,021 980 1.53Vestas Wind Systems 16,470 1,081 1.69

Finland (2.48%) 1,233 1.92Nordea Bank 122,473 556 0.87Sampo series 'A' shares 28,780 677 1.05

France (30.97%) 14,500 22.61Atos 24,569 1,339 2.09AXA 43,016 600 0.93BNP Paribas 40,361 982 1.53ENGIE 172,202 1,434 2.24Faurecia 22,959 555 0.86LVMH Moët Hennessy 8,004 2,397 3.74Orange 82,550 813 1.27Safran 8,928 633 0.99Saint-Gobain 37,025 726 1.13Sanofi 40,632 2,881 4.49SPIE 53,810 436 0.68Vivendi 98,598 1,704 2.66

Germany (16.61%) 13,258 20.68Adidas (Regd.) 4,165 761 1.19Beiersdorf 9,981 812 1.27Delivery Hero 7,809 468 0.73Deutsche Post (Regd.) 39,310 861 1.34Deutsche Wohnen 30,431 925 1.44Knorr-Bremse 8,522 609 0.95Porsche non-voting preference shares 30,028 1,024 1.60Rational 670 286 0.45SAP 31,144 2,820 4.40Scout24 26,082 1,259 1.96Symrise 19,808 1,483 2.31Vonovia 49,270 1,950 3.04

Ireland (2.38%) 509 0.79Ryanair 62,419 509 0.79

Italy (3.16%) 3,309 5.16Banca Farmafactoring 134,702 564 0.88Cerved Information Solutions 74,441 357 0.56Enel 368,117 2,065 3.22UniCredit 51,075 323 0.50

Luxembourg (0.63%) 437 0.68ArcelorMittal 56,954 437 0.68

Netherlands (11.83%) 7,779 12.13ASML 8,466 1,816 2.83Koninklijke DSM 22,037 2,018 3.15Prosus 24,775 1,384 2.16Unilever 50,876 2,012 3.14Wolters Kluwer 9,665 549 0.85

Norway (3.61%) 564 0.88Equinor 56,080 564 0.88

Portugal (2.08%) 1,672 2.61EDP Energias 106,994 346 0.54Galp Energia 144,216 1,326 2.07

Spain (0.00%) 2,296 3.58Banco Santander 596,803 1,171 1.83Bankinter 121,305 359 0.56Inditex 36,724 766 1.19





23

Sweden (3.33%) 970 1.51Epiroc AB 49,313 393 0.61Hexagon series 'B' shares 16,667 577 0.90

Switzerland (11.95%) 9,618 15.00ABB 116,698 1,654 2.58Alcon 28,778 1,183 1.84Flughafen Zuerich 6,627 602 0.94Novartis 62,061 4,130 6.44Roche Holding 6,102 1,597 2.49VAT Group 4,049 452 0.71

United Kingdom (2.68%) 2,925 4.56Linde 11,536 1,640 2.56RELX 74,166 1,285 2.00


Net other assets (1.75%) 864 1.35








24





31.03.20

£’000 £’000

31.03.19

£’000 £’000

IncomeNet capital losses Revenue





Distributions


(12,796) 528 (367) —

161 (106)

55

(12,741)

(79)

(12,820)

(5,577) 501(367)—

134(79)

55

(5,522)

(80)

(5,602)

31.03.20

£’000 £’000

31.03.19

£’000 £’000




80,067 742

(3,920) (3,178) (12,820)

561

64,126

88,837 1,225 (6,139)

(4,914)(5,602)

57 3

78,381

31.03.20

£’000 £’000

30.09.19

£’000 £’000



Total other assets

Total assets

LiabilitiesCreditorsBank overdraftsDistribution payable Other creditors


Total liabilities


63,262

720 617

1,337

64,599

(3) (22) (448)

(473)

(473)

64,126

78,665

4,282916

5,198

83,863

—(510)

(3,286) (3,796)

(3,796)

80,067



25










The risk and reward category is calculated using historic data and may not be a reliable indicator of the Sub-fund’s future risk profile. The risk and reward category may shiftover time and is not a target or guarantee.

The lowest category (i.e. category 1) does not mean “risk free”.

The Sub-fund appears in the higher risk category on the risk and reward indicator.

This is because the Sub-fund invests primarily in shares, whose values tend to have higher price fluctuations.

The returns from your investment may be affected by changes in the exchange rate between the Sub-fund's base currency, the currency of the Sub-fund's investments, yourshare class and your home currency.

The Sub-fund may invest in units or shares of other investment Sub-fund’s. Such other Sub-fund’s may themselves be subject to their own fees and expenses.

There is no capital guarantee or protection of the value of the Sub-fund. The value of your investment and the income from it can go down as well as up and you may not getback the amount you originally invested.

See “Risk Factors” in the UCITS Prospectus for more information about risks.




B sharesA shortfall for Income and Accumulation shares arose because expenses exceeded the revenue of the class. This being the case there is no distribution payable on 31 May 2020.




1 2 3 4 5 6 7



592,2984,721,9951,115,841116,357

2,134,0034,441,410

600,5744,772,9861,141,036155,589

2,253,9194,623,343

709,46814,990

1,307,268187,120

2,533,1825,730,091

26











772.04644.43-16.53%

101.6584.85

-16.53%

773.87644.42-16.73%

884.68736.64-16.73%

766.82639.92-16.55%

931.98778.99-16.42%

770.28722.93-6.15%

99.6993.56-6.15%

772.25722.99-6.38%

872.08816.41-6.38%

765.09718.03-6.15%

911.83856.81-6.03%

781.63748.47-4.24%

———

782.84748.61-4.37%

874.05835.80-4.38%

776.25743.44-4.23%

907.07870.62-4.02%



27


The objective of the Lazard European Smaller Companies Fund (the “Sub-fund”) is to achieve capital growth byinvesting in European Smaller Companies.

Investment ReviewOver the six-month period ending 31 March 2020, the Sub-fund returned -19.38% in sterling terms, against the MSCI EuropeSmall Cap Index, which returned -20.49%(1).

Investment PolicyThe Sub-fund will invest at least 70% in equity and equity-related securities (namely, common and preferred stock,convertible securities, warrants and rights) of European smaller companies, being generally companies within themarket capitalisation range of the MSCI Europe Small Cap Index. The Sub-fund is actively managed and, at thediscretion of the ACD, the Sub-fund may retain its investments in companies which were within that bracket at thetime of acquisition but which grow beyond it in the course of time. The Sub-fund uses the index as a measure ofmarket capitalisation of companies, but is not constrained to invest in companies within the Index. The Sub-fund mayinvest in any industry sector.

Market reviewThe European markets rose strongly in the fourth quarter of 2019 as several factors that had been plaguing equitiesappeared to dissipate. The debilitating effect of the US-China trade dispute throughout the summer seemed to come to some sort of resolution and a further escalation of tariff activities appears to be unlikely. Both the European CentralBank (ECB) and the US Federal Reserve cut interest rates in September. The United Kingdom (UK) had a nationalelection in which a workable majority was achieved by the Conservative party, which brought more clarity, and perhapsfinality, to the long running saga surrounding Britain’s departure from the European Union.

European markets then fell sharply in the first quarter of 2020 as the worldwide effects of the COVID-19 virus havebeen wreaking havoc on the global economies. The efforts to stem the virus including social distancing, isolation andquarantine have hit nearly all sectors and aspects of the economy. Accordingly, both the European Central Bank (ECB)and the US Federal Reserve have engaged in supportive expansionary measures along with fiscal policies enacted byvarious governments, which were designed to mitigate the impact of the virus on consumers and businesses.

In this context, small company returns far underperformed large company returns in European equities for the period as investors avoided the economic sensitivity of small companies as well are their diminished liquidity. The strongestperforming sectors over the period were the defensive sectors such as IT and healthcare. More consumer exposedsectors such as Consumer Discretionary underperformed, while Energy had the weakest performance for the period, as both a demand and supply shocks rattled the industry. On a country basis, the market was led by Denmark andBelgium, while Norway and the Netherlands trailed the pack.


Lazard European Smaller Companies Fund




28

Portfolio Review

What contributed to Returns• Stock selection in the financials, industrials and information technology sectors, as well as within the UK and Germany

• Smart Metering Group, a UK supplier of meters for gas and electricity usage, was one of the portfolio’s biggest winnersduring the period. Sentiment for the company was lifted after the company sold a portion of their assets to anindependent third party. This lifted the shares as the proceeds reduced their debt load and confirmed the intrinsicvalue of their assets

• Flatex, an online trading platform provider, had a solid start to the year as they made good progress on their businessplan of growth with profitability and announced a complimentary acquisition. The shares advanced as the market hasrewarded this business model and is seen as a secular grower even in this difficult environment

What detracted from Returns• Stock selection in the consumer discretionary, health care and energy sectors, as well as stock selection within Spain

and Belgium, and underweight to Switzerland

• Hyve, a UK based exhibition and events planner, detracted from performance over the period. With the demise of thetravel industry and the reticence of consumers to aggregate due to the virus, this business model has been interrupted.Unfortunately, prior to the virus, the company acquired another company that elevated it leverage. Whilst this level ofleverage may have been appropriate in previous times, this has now become an issue and the company’s equity hassuffered accordingly. Given the challenges the company faced, the portfolio management team decided to exit theshareholding

• UK vacation services provider, On The Beach, fell during the period as fears of the Coronavirus spread, potentiallyreducing the demand for vacation tour services

OutlookThe New Year that brought optimism to the equity markets which was fuelled by continued low rates, solid economic growthand a clarified political situation, was abruptly interrupted by the coronavirus pandemic. As cases continue to rise, it seemsimplausible to consider that the capital markets will have measure of consistent support. However, at some point the marketswill bottom and begin to “look through” the current situation and imagine an economy that is not impaired by the virus. Theportfolio aims to be evenly balanced to be able to participate in the market’s advance while defending in a potentialretracement. Attention must be paid to operating and financial leverage in the portfolio companies and companies must havethe liquidity and cash flow in order to survive in the current crisis. The portfolio managers aim to find business models thatcan thrive in the current environment and will emerge stronger. In this increasingly complex environment, we believe thatour active, bottom-up stock selection approach focused on company fundamentals is best suited to uncovering investmentopportunities at attractive valuations.


Lazard European Smaller Companies Fund continued

29

Austria (1.09%) 2,583 1.34BAWAG 116,371 2,583 1.34

Belgium (6.79%) 12,177 6.33Barco 19,524 2,429 1.26Fagron 190,927 3,029 1.58Kinepolis 120,949 3,543 1.84Shurgard Self Storage 135,438 3,176 1.65

Denmark (1.61%) 5,471 2.84 Netcompany 45,733 1,701 0.88Royal Unibrew 64,625 3,770 1.96

Finland (2.58%) 5,575 2.90Altia 318,410 2,088 1.09Kojamo 228,330 3,487 1.81

France (3.97%) 6,854 3.56Chargeurs 232,846 1,904 0.99Kaufman & Broad 93,678 2,319 1.20Rubis 78,108 2,631 1.37

Germany (13.69%) 28,059 14.57Aroundtown 804,298 3,224 1.68CompuGroup Medical 52,371 2,579 1.34Dermapharm SE 136,654 4,530 2.35Flatex 184,825 4,432 2.30JOST Werke 150,084 2,915 1.51LEG Immobilien 37,831 3,428 1.78Patrizia Immobilien 205,129 3,787 1.97TeamViewer 99,084 3,164 1.64

Ireland (3.93%) 3,634 1.89Dalata Hotel 611,761 1,337 0.70Glenveagh Properties 4,688,813 2,010 1.04Total Produce 383,437 287 0.15

Italy (7.65%) 12,384 6.43Banca Generali 134,591 2,259 1.17Cerved Information Solutions 385,720 1,850 0.96El.En. 130,525 1,848 0.96Illimity Bank 223,401 1,240 0.64Italgas 586,357 2,575 1.34Tinexta 320,784 2,612 1.36

Jersey (1.80%) 4,839 2.51JTC 1,138,679 4,839 2.51

Luxembourg (1.05%) 2,047 1.06Stabilus 70,637 2,047 1.06

Netherlands (5.44%) 11,673 6.06Aalberts Industries 99,736 1,909 0.99Arcadis 169,671 2,176 1.13ASM International 42,601 3,443 1.79Euronext 30,622 1,836 0.95Van Lanschot 233,365 2,309 1.20

Norway (0.00%) 977 0.51TGS Nopec Geophysical 108,861 977 0.51

Portugal (1.18%) 2,516 1.31Corticeira Amorim 343,773 2,516 1.31

Spain (3.87%) 7,503 3.90Applus Services 274,424 1,421 0.74Construcciones y Auxiliar de Ferrocarriles 66,171 1,651 0.86Indra Sistemas 356,768 2,366 1.23Merlin Properties 339,726 2,065 1.07





30

Sweden (11.25%) 25,272 13.13Arjo AB 755,857 3,020 1.57Fastighets Balder 'B' 100,214 2,912 1.51Granges 401,326 1,621 0.84HEXPOL 370,217 1,790 0.93Karnov 1,131,616 4,606 2.39Lifco 41,444 1,224 0.64Lindab 343,613 2,154 1.12Nobina 491,396 2,144 1.11Nordic Entertainment 97,662 1,652 0.86Recipharm 264,669 2,191 1.14Stillfront 55,046 1,958 1.02

Switzerland (1.16%) 5,284 2.74 Cembra Money Bank 31,104 2,312 1.20Kardex 26,453 2,972 1.54

United Kingdom (28.37%) 51,023 26.50Ascential 1,026,970 2,530 1.31Auto Trader 633,245 2,780 1.44Bellway 82,505 1,776 0.92Big Yellow 318,651 3,174 1.65Clinigen 120,008 648 0.34Dechra Pharmaceuticals 99,813 2,346 1.22Electrocomponents 467,177 2,410 1.25GB 262,460 1,525 0.79Hunting 675,585 1,182 0.61IMI 332,093 2,482 1.29On the Beach 996,463 2,190 1.14Pennon 349,149 3,790 1.97Polypipe 689,126 3,156 1.64Rentokil Initial 469,298 1,819 0.94Rightmove 382,256 1,863 0.97Sabre Insurance 881,588 2,557 1.33Secure Income 628,378 2,017 1.05Smart Metering Systems 730,923 4,824 2.51Synthomer 1,004,009 2,420 1.26Volution 2,632,527 4,028 2.09Weir 208,876 1,506 0.78










31





31.03.20

£’000 £’000

31.03.19

£’000 £’000



Net expense before taxationTaxation

Net expense after taxation


Distributions


(44,401) 1,076 (1,217)

—

(141) (21)

(162)

(44,563)

(19)

(44,582)

(33,881) 1,080(1,339)

—

(259)(34)

(293)

(34,174)

—

(34,174)

31.03.20

£’000 £’000

31.03.19

£’000 £’000


Dilution adjustment Change in net assets attributable to Shareholders from investment activitiesRetained distribution on accumulation shares


246,650 9,450

(19,022) (9,572)

21 (44,582)

17

192,534

313,845 28,531(39,607)

(11,076) —

(34,174)—

268,595

31.03.20

£’000 £’000

30.09.19

£’000 £’000



Total other assets

Total assets

LiabilitiesCreditorsBank overdraftsOther creditors


Total liabilities


187,871

1,815 3,436

5,251

193,122

(28) (560)

(588)

(588)

192,534

235,376

8,997 8,700

17,697

253,073

—(6,423)

(6,423)

(6,423)

246,650



32







A Accumulation shares 1.05%B Accumulation shares 1.55%C Accumulation shares 0.80%



The risk and reward category is calculated using historic data and may not be a reliable indicator of the Sub-fund’s future risk profile. The risk and reward category may shiftover time and is not a target or guarantee.The lowest category (i.e. category 1) does not mean “risk free”.The Sub-fund appears in the higher risk category on the risk and reward indicator.This is because the Sub-fund invests primarily in shares, whose values tend to have higher price fluctuations.The returns from your investment may be affected by changes in the exchange rate between the Sub-fund's base currency, the currency of the Sub-fund's investments, yourshare class and your home currency.It may not be possible to sell the shares of smaller companies as easily as those of larger companies and this may cause the share class price to fall.The Sub-fund may invest in units or shares of other investment Sub-fund’s. Such other Sub-fund’s may themselves be subject to their own fees and expenses.There is no capital guarantee or protection of the value of the Sub-fund. The value of your investment and the income from it can go down as well as up and you may not getback the amount you invested.See “Risk Factors” in the UCITS Prospectus for more information about risks.



A sharesA shortfall for Accumulation shares arose because expenses exceeded the revenue of the class. This being the case there is no distribution payable on 31 May 2020.

B sharesA shortfall for Accumulation shares arose because expenses exceeded the revenue of the class. This being the case there is no distribution payable on 31 May 2020.

C sharesThe distribution payable on 31 May 2020 is 0.1764p net per share for C Accumulation shares.



1 2 3 4 5 6 7


A Accumulation sharesB Accumulation sharesC Accumulation shares

27,267,764471,637

9,632,052

27,821,693550,338

10,533,551

27,188,5981,036,40618,090,599

33




For the six month period ended

Mar 2020 Mar 2019 Mar 2018




639.63519.38-18.80%

590.79478.51-19.00%

621.28505.13-18.69%

687.07612.72-10.82%

637.80567.35-11.05%

665.71594.41-10.71%

679.59656.50-3.40%

634.03610.95-3.64%

656.82635.29-3.28%



34


The objective of the Lazard Global Equity Income Fund (the “Sub-fund”) is to seek to generate substantial income aswell as long term capital growth.

Investment ReviewOver the six-month period ending 31 March 2020, the Sub-fund returned -20.51% in sterling terms, against the MSCI AllCountry World Index, which returned -14.86%(1).

Investment PolicyThe Sub-fund will invest at least 70% in global equities and equity related securities, including common and preferredstock and depositary receipts.

Market reviewIn the fourth quarter of 2019, world equity markets rose on improved investor confidence in the global economicoutlook. The New Year began on a strong note with continued equity market gains driven by optimism an improvingtrade outlook and US monetary stimulus would support a rebound in corporate earnings growth. However, the rapidglobal spread of the coronavirus and the social distancing restrictions implemented in response to it gradually reducedthis optimism and triggered a volatile selloff in global equities. By the end of the period global equities were sharplylower, a substantial portion of the global population was effectively confined to their home, weekly unemploymentclaims in the US significantly rose and a sharp decline in global growth in the first half of 2020 was accepted asinevitable by most economists. In addition, oil prices fell 60% to the lowest levels in over 15 years as Saudi Arabia andRussia failed to reach agreement to cut oil production in response to the sharp decline in demand. With energycompanies a substantial component of the global debt market, the sudden oil price decline put additional pressure oncredit markets already challenged from broader market environment concerns.

During the period more defensive groups such as pharmaceuticals, software, communications services and consumerstaples displayed resilience. Energy was the worst performing sector as virus-related demand concerns werecompounded by Saudi and Russia’s surprising inability to agree on a production cut. Financials also lagged, particularlybanks, on concerns over credit deterioration and pressures from very low rates. More cyclical industries such as miningand industrials also lagged.


Lazard Global Equity Income Fund




35

Portfolio Review

What contributed to Returns• Stock selection in the communication services sector contributed to performance. The portfolio’s underweight in

materials also benefited performance as it was one of the worst performing sectors

• The holding in of gaming company Nintendo contributed to performance as demand for stay at home games shouldremain strong in current environment

• NetLink NBN, a broadband network operator in Singapore, also performed well as its revenue from recurringbusinesses such as providing internet access should be relatively insulated from the pandemic and could see an increase in demand as remote working becomes more prevalent

What detracted from Returns• Stock selection in the industrials and consumer discretionary sectors hurt performance

• Shares in airplane manufacturer Boeing fell in response to delays related to the recertification of the 737 MAX, weakerdemand for new aircraft as a result of the COVID-19 pandemic, and the likelihood of the company needing to raiseadditional capital

• Children’s Place, a children’s clothing retailer, declined sharply as the company announced store closures and reducedhours of operation in response to COVID-19

OutlookIn the near term, the COVID-19 crisis is likely to impact global GDP more severely than the previously experienced globalfinancial crisis. At this stage, it seems unlikely therapies can be proven, distributed and administered widely enough to curtailsocial distancing before June. With this expectation in place, the economic outlook is for a marked decrease in global growthat least through the third quarter of 2020. The big question mark is how much lasting damage to the economy is incurred inthat time. This question is not easily answered as it encompasses considerations such as behavioural finance and psychology,as consumers take time to feel safe returning to social settings, reassess the optimal level of savings, and reconsider healthhabits.

The good news is that policymakers have acted much more forcefully and quickly to deliver monetary and fiscal stimulus.Absent widespread testing and therapies for COVID-19, we are unlikely to exit the crisis, but never before have so manypeople globally responded to the same challenge simultaneously with such intensity and scientific and technological input.We are optimistic that human ingenuity will measure up to the task at hand in time. In the interim, we are very pleased tosee the support being delivered to the financial system, markets and the economy. We expect a “lower for longer” rateenvironment to be an ongoing tailwind for the long term demand for equities as we move back towards a typical economicenvironment in 2021.

We continue to analyse a range of scenarios for each company and for the COVID-19 pandemic. We cannot predict theduration of the downturn with precision, but we are taking advantage of the uncertainty to position the strategy for long-termgrowth and protection during market falls.


Lazard Global Equity Income Fund continued

36

Australia (1.03%) 958 1.29 Alumina 1,334,233 958 1.29

Brazil (3.14%) 1,112 1.49 BB Seguridade Participacoes 287,847 1,112 1.49

Canada (0.99%) 844 1.13 Toromont Industries 24,288 844 1.13

China (3.32%) 2,918 3.92 JNBY Design 1,432,500 1,006 1.35 Ping An Insurance 241,500 1,912 2.57

Denmark (0.00%) 1,551 2.08 Topdanmark 48,034 1,551 2.08

France (7.07%) 2,591 3.48 ENGIE 138,028 1,149 1.54 Gaztransport & Technigaz 17,174 1,000 1.34 Saint-Gobain 22,534 442 0.60

Germany (0.84%) — —

Greece (0.00%) 1,366 1.84 OPAP 222,797 1,366 1.84

Hong Kong (1.87%) 687 0.92 Hang Seng Bank 49,900 687 0.92

Israel (1.48%) — —

Italy (1.81%) 3,626 4.87 Banca Farmafactoring 613,441 2,568 3.45 Enel 188,629 1,058 1.42

Japan (3.33%) 2,865 3.85 Fanuc 9,500 1,036 1.39 Nintendo 5,900 1,829 2.46

Mexico (1.31%) 627 0.84 Aeroportuario del Centro Norte 228,700 627 0.84

Netherlands (1.16%) — —

Norway (2.07%) 1,521 2.04 Mowi 124,884 1,521 2.04

Portugal (0.54%) 761 1.02 Galp Energia 82,784 761 1.02

Russia (1.48%) 2,475 3.32 Moscow Exchange MICEX-RTS 1,529,852 1,526 2.05PJSC 19,617 949 1.27

Singapore (5.67%) 1,884 2.53 NetLink NBN Trust 3,694,700 1,884 2.53

South Africa (0.45%) — —

South Korea (2.39%) 1,518 2.04 Samsung Electronics 47,999 1,518 2.04

Switzerland (1.64%) 3,667 4.92 ABB (Regd.) 129,493 1,835 2.46 Novartis (Regd.) 27,525 1,832 2.46

Taiwan (2.06%) 1,372 1.84 Taiwan Semiconductor Manufacturing ADS 35,593 1,372 1.84

United Kingdom (3.70%) 2,813 3.78 National Grid 90,360 855 1.15 Rio Tinto (UK Regd.) 30,251 1,125 1.51 Tesco 364,360 833 1.12





37

United States (51.86%) 38,245 51.34 Accenture 10,815 1,424 1.91 Applied Materials 30,560 1,129 1.52 Blackstone Mortgage Trust 'A' 31,127 466 0.63 Bristol-Myers Squibb 14,212 638 0.86 Brixmor Property 62,504 476 0.64 Chevron 11,313 660 0.89 Cisco Systems 71,831 2,276 3.06 Citizens Financial 48,511 736 0.99 Coca-Cola 39,430 1,406 1.89 Intercontinental Exchange 18,559 1,209 1.62 Johnson & Johnson 24,795 2,619 3.52 JPMorgan Chase 16,536 1,202 1.61 Kimberly-Clark 13,741 1,417 1.90 Lowe's 21,510 1,493 2.00 McDonald's 4,999 666 0.89 Medtronic 23,441 1,708 2.29 MetLife 40,310 994 1.33 Microsoft 21,610 2,747 3.69 Mondelez International 29,315 1,184 1.59 PacWest Bancorp 58,007 837 1.12 Pfizer 78,907 2,077 2.79 Potlatch 54,775 1,381 1.85 Progressive 15,900 947 1.27 Prologis 13,477 873 1.17 Public Storage 10,271 1,640 2.20 Raytheon 18,260 1,931 2.59 Texas Instruments 17,087 1,377 1.85 Valero Energy 23,316 851 1.14 Verizon Communications 43,408 1,881 2.53










38





31.03.20

£’000 £’000

31.03.19

£’000 £’000






Distributions


(21,552) 1,677 (428) —

1,249 (126)

1,123

(20,429)

(1,487)

(21,916)

(5,011) 2,211(465)(1)

1,745(142)

1,603

(3,408)

(2,020)

(5,428)

31.03.20

£’000 £’000

31.03.19

£’000 £’000




101,925 1,651 (7,551)

(5,900) (21,916)

379 2

74,490

117,405 1,504

(10,364) (8,860)(5,428) 488 3

103,608

31.03.20

£’000 £’000

30.09.19

£’000 £’000



Total other assets

Total assets



Total liabilities


73,401

705 1,253

1,958

75,359

(641) (228)

(869)

(869)

74,490

101,118

4,0941,535

5,629

106,747

(741)(4,081)

(4,822)

(4,822)

101,925



39










The risk and reward category is calculated using historic data and may not be a reliable indicator of the Sub-fund’s future risk profile. The risk and reward category may shiftover time and is not a target or guarantee.The lowest category (i.e. category 1) does not mean “risk free”.The Sub-fund appears in the higher risk category on the risk and reward indicator.This is because the Sub-fund invests primarily in shares, whose values tend to have higher price fluctuations.The returns from your investment may be affected by changes in the exchange rate between the Sub-fund's base currency, the currency of the Sub-fund's investments, yourshare class and your home currency.High yielding assets may carry a greater risk of capital values falling or have limited prospects of capital growth or recovery.The Sub-fund may invest in the securities of emerging markets. These markets may be less developed than others and so there is a greater risk that the Sub-fund mayexperience greater volatility, delays in buying, selling and claiming ownership of its investments. Emerging markets may also have less developed political, economic and legalsystems and there is a higher risk that the Sub-fund may not get back its money.The Sub-fund may invest in units or shares of other investment Sub-fund’s. Such other Sub-fund’s may themselves be subject to their own fees and expenses.The annual management charge is deducted from the capital of the Sub-fund. This may increase the amount of income available for distribution from the Sub-fund but mayconstrain or erode potential for capital growth.There is no capital guarantee or protection of the value of the Sub-fund. The value of your investment and the income from it can go down as well as up and you may not getback the amount you originally invested.See “Risk Factors” in the UCITS Prospectus for more information about risks.




B sharesThe distribution payable on 31 May 2020 is 0.9281p net per share for B Income shares and 1.6744p net per share for B Accumulation shares.




2,663,767 242,272

1,983,379 1,756,024 60,807,976 10,838,326

6,014,002249,152

2,066,0181,947,90361,554,85411,525,443

8,933,970346,278

2,554,4412,288,64171,447,39812,397,554



1 2 3 4 5 6 7

40











109.2884.61

-22.58%

196.84155.10-21.21%

102.8879.46

-22.76%

184.52145.03-21.40%

108.3984.04

-22.47%

194.57153.50-21.11%

109.38104.29-4.65%

187.89182.67-2.78%

103.4998.43-4.89%

177.01171.67-3.02%

108.22103.31-4.54%

185.26180.33-2.66%

108.13103.34-4.43%

176.83172.49-2.45%

102.8098.01-4.66%

167.43162.91-2.70%

106.72102.13-4.30%

173.92169.86-2.33%



41


The objective of the Lazard Managed Balanced Fund (the “Sub-fund”) is to achieve capital growth whilst maintaininga reasonable yield.

Investment ReviewOver the six-month period ending 31 March 2020, the Sub-fund returned -13.69% in sterling terms, against the compositebenchmark of the 50% FTSE All-Share Index, 25% MSCI All Countries World Index and 25% FTSE UK Government AllStocks Index, which returned -14.35%.(1).

Investment PolicyThe Sub-fund will invest in a diversified portfolio of equities and bonds. The Sub-fund will typically invest between40% - 85% in equities. The portfolio of the Sub-fund consists of three core components: UK Equity Diversified, GlobalEquity Select and UK Aggregate Bond.

Market reviewDuring the final quarter of 2019, UK equities performed well as the Conservative Party’s landslide win in the generalelection helped to dispel some of the uncertainty that has weighed on domestic equities since the European Union (EU)referendum vote in 2016. Sterling also rallied in the aftermath of the Conservatives victory, reaching highs not seen sinceMay 2018. Market confidence remained high into the start of 2020, until markets fell sharply in February and March as thecoronavirus (COVID-19) spread across the globe, weighing heavily on both markets and the global economy. To tackle theeconomic challenge of the virus outbreak, new UK Chancellor Rishi Sunak announced fiscal stimulus packages of almost£60bn. Supplementing these fiscal measures, the Bank of England (BoE) cut rates by 50 bps to 0.25% on 12 March, andfollowing this just a week later with an emergency rate cut to 0.1%, the lowest level in the central bank’s 325-year history.The BoE provided further support by restarting its bond purchasing program. UK manufacturing economic data showed alikely significant contraction as output dropped at the sharpest pace since July 2012.

Global equities exhibited similar behaviour, posting a strong final quarter of 2019 and the beginning of 2020, buoyed byaccommodative central bank policies and the reaching of a “phase-one” agreement in the trade war between the USand China, only to fall significantly as the coronavirus outbreak spread from Asia to Europe and the US. A stimuluspackage of $2tn was agreed by the US government in an effort to backstop the economy during the challengingeconomic environment. The US Federal Reserve cut rates to zero and committed to unlimited expansion of bondpurchasing programs in an attempt to provide further support to the US economy, whilst the European Central Bankalso announced a substantial bond purchasing program to help support European markets (although it kept rates in thenegative territory they were already at).

For the fixed income component of the portfolio, 10-year UK government bond yields traded in a range of 0.16% and0.87% with a sharp increase in volatility following the escalation of the corona crisis towards the end of the reportingperiod. Credit spreads widened sharply in March due to investors concerns regarding solvency of firms with mostEuropean governments starting to implement extensive measures of social distancing and lockdowns.


Lazard Managed Balanced Fund




42

Portfolio Review

What contributed to Returns• Among UK holdings, stock selection in consumer services and basic materials contributed positively. As the result of

the ongoing macro environment there was a clear level of increased buying and also the shift from offline to onlinegrocery shopping where Ocado is a clear net beneficiary

• UK-listed Smart Metering Systems performed well after announcing that it had conditionally sold a minority of thegroup’s meter assets, as well as announcing a new and enhanced dividend policy

• Health care business Thermo Fisher Scientific favourably as the broader sector defended during the period

• In the fixed income component, security selection in the retail sector as well as an overweight position in the energysector contributed to performance

What detracted from Returns• Among UK holdings, stock selection in industrials and consumer goods. EasyJet detracted from relative performance as

a result of the developing coronavirus global health emergency impacting and causing an immediate substantial declinein airline activity

• UK-listed advertising and media company WPP also detracted from relative returns due to global macro concerns

• Defence training and development business CAE Inc detracted over the period as a result of the global macroenvironment

• In the fixed income component, an overweight in the banking sector and an underweight of UK government bondsdetracted from performance

OutlookThe global economic backdrop has undoubtedly worsened in the wake of the coronavirus outbreak and has led to significantuncertainty around corporate profitability in the short term. We think ultimately there will be a natural end to this globalpandemic, in the same way that there was for SARS, MERS, and Zika outbreaks. There are hopes that in response to thevirus, more frequent and reliable testing procedures will be rolled out and that eventually a vaccine will be found to helpcalm market sentiment. A crucial point of note is how the situation unfolds as restrictions begin to be lifted and whether thisleads to a second wave of cases. In the meantime, much looser monetary policy by central banks in the form of quantitativeeasing and rate cuts, combined with significant fiscal stimulus packages, should create the potential for a strong economicrecovery in the second half of the year. Within equities, we believe the current market environment represents a generationalbuying opportunity, similar to what was seen during the Global Financial Crisis. Whilst it may be too soon to add furtherexposure currently due to the significant uncertainty in the market, we are closely assessing companies that fulfil ourinvestment criteria of strong balance sheets, good returns, and sustainable dividends, which are now trading at attractivevaluations that we haven’t seen for many years.

Central banks across the globe have acted decisively to prevent an immediate solvency crisis of corporates due to thestandstill of big parts of the economic life. Direct or indirect provision of liquidity through central banks or states have sharplyreduced the risk of an immediate rise in defaults. However, rising debt levels will be inevitable and the coming recession willlikely prove to be a hard burden for companies with weaker credit profiles. Given the central bank backstop and attractivevaluation of corporate credit, we expect credit spreads continue to tighten and are likely to increase our spread exposure,especially towards issuers with strong balance sheets and defensive business models.


Lazard Managed Balanced Fund continued

43

Equities (67.93%) 19,880 64.86

Belgium (0.66%) — —

Canada (2.18%) 470 1.53CAE 7,298 74 0.24Canadian National Railway 2,040 126 0.41Dollarama 5,697 125 0.41National Bank of Canada 4,738 145 0.47

China (0.94%) 505 1.65Alibaba ADS 778 122 0.40China Gas 44,800 126 0.41Tencent 6,500 257 0.84

Finland (0.33%) — —

France (0.41%) — —

Germany (0.74%) 378 1.23Merck 1,215 100 0.32Symrise 2,046 153 0.50TeamViewer 3,900 125 0.41

Guernsey (0.24%) 81 0.26Trian Investors 88,523 81 0.26

Hong Kong (1.16%) 358 1.17AIA 30,400 222 0.73Hang Seng Bank 9,900 136 0.44

Ireland (0.10%) 11 0.04Hostelworld 20,898 11 0.04

Israel (0.49%) 130 0.42Bank Leumi Le-Israel 29,166 130 0.42

Japan (2.17%) 380 1.24Kansai Paint 6,500 99 0.32Nintendo 500 155 0.51Yamaha 4,000 126 0.41

Netherland (1.05%) 457 1.49NXP Semiconductors 1,590 106 0.35Wolters Kluwer 6,191 351 1.14

Singapore (0.55%) — —

South Africa (1.14%) 316 1.03Anglo American 14,962 212 0.69Distell 16,679 58 0.19Sanlam 19,832 46 0.15

South Korea (0.00%) 149 0.49LG Household & Healthcare 201 149 0.49

Sweden (1.22%) 363 1.18Assa Abloy 'B' 5,788 88 0.29Epiroc 'A' 19,362 154 0.50Hexagon 'B' 3,492 121 0.39

Switzerland (2.10%) 640 2.09ABB (Regd.) 9,472 134 0.44Alcon 1,805 74 0.24Coca-Cola HBC 6,028 105 0.34IWG 13,496 23 0.08Novartis (Regd.) 2,662 177 0.58Partners 228 127 0.41

Taiwan (0.45%) 162 0.53Taiwan Semiconductor 4,197 162 0.53

United Kingdom (31.78%) 9,534 31.11

Oil & Gas Producers (4.13%) 868 2.83BP 148,173 509 1.66Cairn Energy 31,182 24 0.08Premier Oil 96,377 17 0.05Royal Dutch Shell 'B' (UK Regd.) 23,423 318 1.04





44

Oil Equipment, Services & Distribution (0.16%) — —

Chemicals (0.68%) 94 0.31Synthomer 38,956 94 0.31

Mining (1.19%) 316 1.03Rio Tinto (UK Regd.) 8,504 316 1.03

Construction & Materials (0.54%) 157 0.51Breedon 70,361 47 0.15Melrose Industries 49,131 45 0.15Volution 42,537 65 0.21

Aerospace & Defence (0.13%) 67 0.22Babcock International 17,521 67 0.22

General Industrials (0.23%) — —

Industrial Engineering (0.48%) 51 0.17Weir 7,091 51 0.17

Industrial Transportation (0.07%) — —

Support Services (1.17%) 458 1.49Bunzl 4,300 70 0.23Essentra 14,872 39 0.13PageGroup 9,325 34 0.11Rentokil Initial 26,175 101 0.33Sanne 8,286 51 0.17Serco 58,086 71 0.23Smart Metering Systems 5,370 35 0.11Travis Perkins 6,427 57 0.18

Beverages (2.99%) 783 2.55Coca-Cola European Partners 4,526 137 0.44Diageo 24,998 646 2.11

Food Producers (2.05%) 766 2.50Associated British Foods 6,569 119 0.39Unilever 15,902 647 2.11

Household Goods & Home Construction (0.33%) 387 1.26Bellway 2,062 44 0.14Reckitt Benckiser 4,037 248 0.81Taylor Wimpey 81,300 95 0.31

Tobacco (0.61%) 236 0.77British American Tobacco 8,554 236 0.77

Health Care Equipment & Services (0.43%) 120 0.39Smith & Nephew 8,341 120 0.39

Pharmaceuticals & Biotechnology (2.33%) 967 3.16AstraZeneca 7,643 551 1.80GlaxoSmithKline 27,461 416 1.36

Personal Goods (0.10%) 75 0.24Burberry 5,668 75 0.24

Food & Drug Retailers (1.01%) 698 2.28J Sainsbury 46,277 97 0.32Ocado 8,178 100 0.33Tesco 219,027 501 1.63

General Retailers (0.00%) 200 0.65Dixons Carphone 64,794 51 0.17Next 1,192 49 0.16Pets at Home 38,898 100 0.32

Media (2.72%) 688 2.25Ascential 23,540 58 0.19Future 8,475 85 0.28RELX 23,160 401 1.31S4 Capital 24,260 36 0.12WPP 19,539 108 0.35

Travel & Leisure (2.00%) 172 0.56Compass 9,447 119 0.39easyJet 9,266 53 0.17





45

Fixed Line Telecommunications (0.16%) — —

Mobile Telecommunications (0.88%) 272 0.89Vodafone 241,013 272 0.89

Gas, Water & Multiutilities (0.31%) 128 0.42Severn Trent 5,600 128 0.42

Banks (2.51%) 490 1.60Barclays 153,534 144 0.47HSBC (UK Regd.) 58,792 267 0.87Standard Chartered 17,803 79 0.26

Life Insurance (1.60%) 459 1.50Aviva 26,265 70 0.23Prudential 37,657 389 1.27

Real Estate Investment & Services (0.09%) 52 0.17Helical Bar 14,803 52 0.17

Real Estate Investment Trusts (0.65%) 184 0.60Derwent London 3,296 108 0.35Shaftesbury 12,265 76 0.25

Financial Services (2.03%) 846 2.763i 16,663 132 0.43Calisen 21,479 38 0.12Hargreaves Lansdown 6,605 91 0.30IMI 11,484 86 0.28Legal & General 55,270 107 0.35London Stock Exchange 2,287 166 0.54Man 80,996 101 0.33Paragon 17,760 59 0.19RSA Insurance 15,736 66 0.22

Software & Computer Services (0.20%) — —

United Arab Emirates (0.12%) 63 0.21Network International 16,081 63 0.21

United States (20.10%) 5,883 19.19Accenture 1,794 236 0.77Alphabet 'A' 346 324 1.06AmerisourceBergen 2,788 199 0.65Aon ‘A’ 2,272 302 0.99Boston Scientific 6,233 164 0.53Cisco Systems 4,254 135 0.44Coca-Cola 8,069 288 0.94Dollar General 1,418 173 0.56Ferguson 2,408 122 0.40Honeywell International 945 102 0.33Intercontinental Exchange 3,649 238 0.78IQVIA 2,876 250 0.82Johnson & Johnson 2,763 292 0.95Kimberly-Clark 1,675 173 0.56Lowe's 1,458 101 0.33McDonald's 1,452 194 0.63Microsoft 2,981 379 1.24Motorola Solutions 1,980 212 0.69Palo Alto Networks 745 99 0.32Procter & Gamble 2,362 210 0.68PTC 4,040 199 0.65Rockwell Automation 993 121 0.39S&P Global 986 195 0.64Texas Instruments 2,056 166 0.54Thermo Fisher Scientific 1,700 388 1.27Visa 2,143 278 0.91Zoetis 3,616 343 1.12





46

Fixed Interest (30.74%) 10,081 32.89

Government Stocks (12.02%) 4,778 15.59UK Treasury 1.5% 22/7/2047 £400,000 466 1.52UK Treasury 1.75% 07/9/2037 £500,000 583 1.90UK Treasury 3.25% 22/1/2044 £1,100,000 1,670 5.45UK Treasury 4.25% 07/9/2039 £200,000 326 1.06UK Treasury 4.5% 07/12/2042 £900,000 1,587 5.18UK Treasury 4.75% 07/12/2030 £100,000 146 0.48

Corporate Bonds (18.72%) 5,303 17.30Abertis Infraestructuras 3.375% 27/11/2026 £200,000 191 0.62APT Pipelines 3.125% 18/7/2031 £100,000 97 0.32AT&T 2.9% 04/12/2026 £200,000 206 0.67Aviva 5.125% 04/6/2050 £100,000 96 0.31Banco Santander 1.75% 17/2/2027 £300,000 272 0.89Barclays 3.25% 17/1/2033 £100,000 87 0.28Comcast 1.875% 20/2/2036 £200,000 184 0.60Comcast 5.5% 23/11/2029 £100,000 129 0.42Commerzbank 1.75% 22/1/2025 £200,000 182 0.59Compass 2% 05/9/2025 £100,000 99 0.32CYBG 4% 03/9/2027 £100,000 93 0.30Danske Bank 2.25% 14/1/2028 £200,000 185 0.60Deutsche Bank 2.625% 16/12/2024 £200,000 181 0.59Deutsche Telekom International Finance 2.5% 10/10/2025 £200,000 203 0.66Discovery Communications 2.5% 20/9/2024 £100,000 98 0.32DS Smith 2.875% 26/7/2029 £100,000 94 0.31Gatwick Funding 3.25% 26/2/2048 £100,000 88 0.29Glencore Finance Europe 3.125% 26/3/2026 £100,000 88 0.29Go-Ahead 2.5% 06/7/2024 £100,000 92 0.30Goldman Sachs 3.125% 25/7/2029 £150,000 143 0.47HBOS Sterling Finance 7.881% Perpetual £30,000 46 0.15Heathrow Funding 2.75% 09/8/2051 £100,000 82 0.27Henkel AG & 1.25% 30/9/2026 £200,000 185 0.60HSBC 2.256% 13/11/2026 £100,000 96 0.31InterContinental Hotels 2.125% 24/8/2026 £100,000 78 0.26Koninklijke KPN 5% 18/11/2026 £100,000 111 0.36Legal & General 5.125% 14/11/2048 £100,000 102 0.33Logicor Financing Sarl 2.75% 15/1/2030 £100,000 91 0.30National Grid Electricity Transmission 2% 16/9/2038 £200,000 188 0.61Nationwide Building Society 1% 24/1/2023 £100,000 95 0.31Nationwide Building Society 3.25% 20/1/2028 £100,000 102 0.33Orange 5.375% 22/11/2050 £100,000 145 0.47Scottish Hydro Electric Transmission 2.25% 27/9/2035 £200,000 189 0.62Societe Generale 1.875% 03/10/2024 £100,000 94 0.31Sovereign Housing Capital 2.375% 04/11/2048 £200,000 198 0.65SP Transmission 2% 13/11/2031 £200,000 191 0.62United Utilities Water Finance 2% 03/7/2033 £200,000 192 0.63Verizon Communications 4.75% 17/2/2034 £100,000 121 0.40Vodafone 3.375% 08/8/2049 £100,000 94 0.31Volkswagen International Finance 3.375% 16/11/2026 £100,000 95 0.31










47





31.03.20

£’000 £’000

31.03.19

£’000 £’000






Distributions


(5,170) 379 (153) —

226 (13)

213

(4,957)

(279)

(5,236)

(341) 438(150)—

288(12)

276

(65)

(341)

(406)

31.03.20

£’000 £’000

31.03.19

£’000 £’000


Change in net assets attributable to Shareholders from investment activitiesRetained distribution on accumulation shares


36,074 3,222 (3,629)

(407) (5,236) 219

30,650

36,0336,939 (7,898)

(959)(406)278

34,946

31.03.20

£’000 £’000

30.09.19

£’000 £’000



Total other assets

Total assets



Total liabilities


29,961

192 731

923

30,884

(57) (177)

(234)

(234)

30,650

35,595

263 922

1,185

36,780

(76) (630)

(706)

(706)

36,074



48







A Income shares 0.89%A Accumulation shares 0.89%B Income shares 1.39%



The risk and reward category is calculated using historic data and may not be a reliable indicator of the Sub-fund’s future risk profile. The risk and reward category may shiftover time and is not a target or guarantee.The lowest category (i.e. category 1) does not mean “risk free”.The Sub-fund appears in the moderate risk category on the risk and reward indicator.This is because the Sub-fund invests primarily in assets, whose values tend to have moderate price fluctuations.The returns from your investment may be affected by changes in the exchange rate between the Sub-fund's base currency, the currency of the Sub-fund's investments, yourshare class and your home currency.Investment in lower rated bonds increases the risk of default on repayment and the risk to capital of the Sub-fund.The Sub-fund may invest in units or shares of other investment Sub-fund’s. Such other Sub-fund’s may themselves be subject to their own fees and expenses.50% of the annual management charge is deducted from the capital of the Sub-fund. This may increase the amount of income available for distribution but may constrain orerode potential for capital growth.There is no capital guarantee or protection of the value of the Sub-fund. The value of your investment and the income from it can go down as well as up and you may not getback the amount you originally invested.See “Risk Factors” in the UCITS Prospectus for more information about risks.




B sharesThe distribution payable on 31 May 2020 is 1.1652p net per share for B Income shares.



1 2 3 4 5 6 7


A Income sharesA Accumulation sharesB Income shares

3,650,10011,718,806365,410

3,310,49812,253,631284,072

5,491,19311,553,875257,095

49



Risk warningIt is important to remember that past performance is not a guide to the future. The value of shares and the income from them can go down as well as up. An investor may get back less than their original investment.





184.98158.29-14.43%

240.30207.51-13.65%

177.54151.77-14.52%

176.31174.58-0.98%

224.30224.22-0.04%

169.66167.78-1.11%

167.03166.20-0.50%

208.00208.810.39%

161.14160.12-0.63%



50


The objective of the Lazard Managed Equity Fund (the “Sub-fund”) is to achieve capital growth.

Investment ReviewOver the six-month period ending 31 March 2020, the Sub-fund returned -18.48% in sterling terms, against the compositebenchmark of 50% FTSE All-Share Index and 50% FTSE World ex-UK Index, which returned -18.33%(1).

Investment PolicyThe Sub-fund is actively managed and will invest in a diversified portfolio of global equities, with at least 50% of thescheme property invested in the shares of UK companies and will consist of two core components: UK Equity Alphaand Global Equity Select.

Market reviewDuring the final quarter of 2019, UK equities performed well as the Conservative Party’s landslide win in the generalelection helped to dispel some of the uncertainty that has weighed on domestic equities since the European Union(EU) referendum vote in 2016. Sterling also rallied in the aftermath of the Conservatives victory, reaching highs notseen since May 2018. Market confidence remained high into the start of 2020, until markets fell sharply in Februaryand March as the coronavirus (COVID-19) spread across the globe, weighing heavily on both markets and the globaleconomy. To tackle the economic challenge of the virus outbreak, new UK Chancellor Rishi Sunak announced fiscalstimulus packages of almost £60bn. Supplementing these fiscal measures, the Bank of England (BoE) cut rates by 50 bps to 0.25% on 12 March, and following this just a week later with an emergency rate cut to 0.1%, the lowest levelin the central bank’s 325-year history. The BoE provided further support by restarting its bond purchasing program. UK manufacturing economic data showed a likely significant contraction as output dropped at the sharpest pace sinceJuly 2012.

Global equities exhibited similar behaviour, posting a strong final quarter of 2019 and the beginning of 2020, buoyed by accommodative central bank policies and the reaching of a “phase-one” agreement in the trade war between the US and China, only to fall significantly as the coronavirus outbreak spread from Asia to Europe and the US. A stimuluspackage of $2tn was agreed by the US government in an effort to backstop the economy during the challengingeconomic environment. The US Federal Reserve cut rates to zero and committed to unlimited expansion of bondpurchasing programs in an attempt to provide further support to the US economy, whilst the European Central Bankalso announced substantial quantitative easing measures (although it kept rates in the negative territory they werealready at).

All sectors performed negatively over the period, with oil & gas, financials and industrials falling the most over theperiod, whilst more defensive areas such as utilities and health care performed relatively better. Oil prices suffered their worst quarter in history in Q1 2020 as the coronavirus pandemic weighed heavily on demand and Saudi Arabiadecided to raise oil production after a breakdown in Russia-OPEC talks.


Lazard Managed Equity Fund




51

Portfolio Review

What contributed to Returns• In the United Kingdom, stock selection and an overweight in consumer services, and stock selection in financials

and basic materials

• Internationally, stock selection in financials and industrials; also stock selection in Germany and Japan

• Health care business Thermo Fisher Scientific contributed positively as the broader sector defended during the period

• Consumer and personal goods business Kao Corp defended well as a result of the macro environment

What detracted from Returns• In the United Kingdom, stock selection in consumer goods and an underweight in utilities

• Internationally, stock selection within technology and health care; also stock selection in France and Netherlands

• Advertising and media company WPP detracted as a result of global macro concerns

• Marks and Spencer underperformed, indicating lower profit for the full-year and suspending its dividend

OutlookThe global economic backdrop has undoubtedly worsened in the wake of the coronavirus outbreak and has led to significantuncertainty around corporate profitability in the short term. We think ultimately there will be a natural end to this globalpandemic, in the same way that there was for SARS, MERS, and Zika outbreaks. There are hopes that in response to thevirus, more frequent and reliable testing procedures will be rolled out and that eventually a vaccine will be found to helpcalm market sentiment. A crucial point of note is how the situation unfolds as restrictions begin to be lifted and whether thisleads to a second wave of cases. In the meantime, much looser monetary policy by central banks in the form of quantitativeeasing and rate cuts, combined with significant fiscal stimulus packages, should create the potential for a strong economicrecovery in the second half of the year.

As investors, we believe the current market environment represents a generational buying opportunity, similar to what wasseen during the Global Financial Crisis. Whilst it may be too soon to add further exposure currently due to the significantuncertainty in the market, we are closely assessing companies that fulfil our investment criteria of strong balance sheets, good returns, and sustainable dividends, which are now trading at attractive valuations that we haven’t seen for many years.


Lazard Managed Equity Fund continued

52

Australia (1.39%) 359 0.53BHP Billiton 28,683 359 0.53

Belgium (1.13%) — —

Canada (3.40%) 1,808 2.64CAE 24,130 243 0.35Canadian National Railway 10,165 629 0.92Dollarama 15,960 351 0.51National Bank of Canada 19,135 585 0.86

Finland (0.72%) — —

France (0.59%) — —

Germany (1.26%) 1,063 1.56Merck 3,160 261 0.38Symrise 6,110 457 0.67TeamViewer 10,800 345 0.51

Guernsey (0.77%) 562 0.82Trian Investors 610,785 562 0.82

Hong Kong (1.70%) 1,201 1.76AIA 106,400 777 1.14Hang Seng Bank 30,800 424 0.62

Israel (0.74%) 453 0.66Bank Leumi Le-Israel 101,529 453 0.66

Japan (3.24%) 1,850 2.71Kansai Paint 20,500 314 0.46Kao 10,300 677 0.99Nintendo 1,400 434 0.64Yamaha 13,500 425 0.62

Jersey (0.62%) 408 0.60Sanne 66,450 408 0.60

Netherlands (5.45%) 2,578 3.77NXP Semiconductors 4,515 302 0.44Royal Dutch Shell 'B' (UK Regd.) 85,570 1,163 1.70Wolters Kluwer 19,606 1,113 1.63

Singapore (0.73%) — —

South Africa (0.95%) 857 1.25Anglo American 60,520 857 1.25

Sweden (1.80%) 1,258 1.84Assa Abloy 'B' 23,420 356 0.52Epiroc 58,841 469 0.69Hexagon 'B' 12,499 433 0.63

Switzerland (3.50%) 2,168 3.17ABB (Regd.) 25,959 368 0.54Alcon 5,182 213 0.31Coca-Cola HBC 38,507 668 0.98Novartis (Regd.) 8,124 541 0.79Partners 678 378 0.55

United Arab Emirates (0.70%) 287 0.42Network International 73,584 287 0.42

United Kingdom (40.63%) 31,667 46.313i 84,095 666 0.97Ascential 200,804 495 0.72Ashtead 44,117 779 1.14Associated British Foods 44,025 797 1.17AstraZeneca 28,677 2,069 3.03Barclays 688,792 648 0.95BP 477,901 1,641 2.40Breedon 579,756 387 0.57British American Tobacco 15,718 433 0.63Burberry 29,250 387 0.57Cairn Energy 156,589 121 0.18Calisen 248,100 444 0.65Coca-Cola European Partners 18,720 565 0.83





53

United Kingdom (continued)Diageo 74,229 1,919 2.81Dixons Carphone 387,676 302 0.44Essentra 59,212 156 0.23GlaxoSmithKline 100,475 1,521 2.22Hargreaves Lansdown 37,314 516 0.75HSBC (UK Regd.) 276,813 1,257 1.84IMI 66,030 494 0.72J Sainsbury 367,749 774 1.13Land Securities 59,752 332 0.48London Stock Exchange 10,266 747 1.09Next 7,147 291 0.43Paragon 113,702 378 0.55Pets at Home 156,604 401 0.59Prudential 106,863 1,103 1.61Reckitt Benckiser 20,550 1,264 1.85Rentokil Initial 108,278 420 0.61Rio Tinto (UK Regd.) 34,966 1,300 1.90RSA Insurance 117,151 493 0.72S4 Capital 172,848 259 0.38Segro 69,735 533 0.78Severn Trent 41,391 943 1.38Smith & Nephew 34,911 500 0.73Standard Chartered 89,024 397 0.58Synthomer 215,013 518 0.76Taylor Wimpey 409,523 481 0.70Tesco 547,039 1,251 1.83Unilever 40,989 1,668 2.44Vodafone 1,249,069 1,411 2.06WPP 109,860 606 0.89

United States of America (27.97%) 20,064 29.34Accenture 5,945 783 1.15Alphabet 'A' 1,363 1,277 1.87AmerisourceBergen 13,620 972 1.42Boston Scientific 18,510 487 0.71Cisco Systems 14,180 449 0.66Coca-Cola 34,720 1,238 1.81Dollar General 4,395 535 0.78Ferguson 14,481 732 1.07Honeywell International 4,520 488 0.71Intercontinental Exchange 15,450 1,006 1.47IQVIA 9,565 832 1.22Johnson & Johnson 9,630 1,017 1.49Kimberly-Clark 8,555 882 1.29Lowe's 3,965 275 0.40McDonald's 4,365 582 0.85Microsoft 10,545 1,341 1.96Motorola Solutions 6,715 721 1.05Palo Alto Networks 2,130 282 0.41Procter & Gamble 10,050 892 1.30PTC 11,485 565 0.83Rockwell Automation 3,200 388 0.57S&P Global 2,889 571 0.84Texas Instruments 5,735 462 0.68Thermo Fisher Scientific 5,610 1,281 1.87Visa 7,054 916 1.34Zoetis 11,480 1,090 1.59










54





31.03.20

£’000 £’000

31.03.19

£’000 £’000






Distributions


(14,806) 946 (409)

—

537 (41)

496

(14,310)

(496)

(14,806)

(2,327)1,114 (396)

—

718(36)

682

(1,645)

(682)

(2,327)

31.03.20

£’000 £’000

31.03.19

£’000 £’000


Change in net assets attributable to Shareholders from investment activitiesRetained distribution on accumulation shares


79,574 10,654 (7,575)

3,079 (14,806)

530

68,377

79,6874,733 (5,175)

(442) (2,327)

675

77,593

31.03.20

£’000 £’000

30.09.19

£’000 £’000

AssetsFixed assets

Investments Current assets

Debtors Cash and bank balances

Total other assets

Total assets

LiabilitiesCreditors

Other creditors Total other liabilities

Total liabilities


66,583

908 1,994

2,902

69,485

(1,108) (1,108)

(1,108)

68,377

77,420

157 2,163

2,320

79,740

(166) (166)

(166)

79,574



55







A Accumulation shares 1.07%



The risk and reward category is calculated using historic data and may not be a reliable indicator of the Sub-fund’s future risk profile. The risk and reward category may shiftover time and is not a target or guarantee.The lowest category (i.e. category 1) does not mean “risk free”.The Sub-fund appears in the higher risk category on the risk and reward indicator.This is because the Sub-fund invests primarily in shares, whose values tend to have higher price fluctuations.The returns from your investment may be affected by changes in the exchange rate between the Sub-fund's base currency, the currency of the Sub-fund’s investments, yourshare class and your home currency.The Sub-fund may invest in units or shares of other investment Sub-fund’s. Such other Sub-fund’s may themselves be subject to their own fees and expenses.There is no capital guarantee or protection of the value of the Sub-fund. The value of your investment and the income from it can go down as well as up and you may not getback the amount you originally invested.See “Risk Factors” in the UCITS Prospectus for more information about risks.



A sharesThe distribution payable on 31 May 2020 is 2.4301p net per share for A Accumulation shares.





1 2 3 4 5 6 7

Shares in circulation at period end

Mar 2020 Sep 2019 Sep 2018

A Accumulation shares 21,814,458 20,777,783 21,805,668



382.97313.45

-18.15%

365.44357.52-2.17%

329.21329.520.09%

56


The objective of the Lazard Multicap UK Income Fund (the “Sub-fund”) is to achieve a reasonable level of incomecombined with capital growth from a portfolio of securities primarily made up of equity investments listed in theUnited Kingdom.

Investment ReviewOver the six-month period ending 31 March 2020, the Sub-fund returned -24.95% in sterling terms, against the FTSE All-Share Index, which returned -22.02%(1).

Investment PolicyThe Sub-fund will invest at least 70% in the shares of UK companies, being those which are incorporated, domiciled orconduct a significant portion of their business in the UK. The Sub-fund will not be restricted in respect of choice ofinvestments by company size or industry. The Sub-fund may also invest in companies which are listed, quoted ortraded in the UK. Up to a maximum of 20% of the Sub-fund may be invested in equities listed outside the UnitedKingdom and in other securities, either listed in the United Kingdom or listed on other exchanges outside the UnitedKingdom, including but not limited to preference shares, convertibles, fixed income or shares in listed open and closedend funds.

Market reviewDuring the final quarter of 2019, UK equities performed well as the Conservative Party’s landslide win in the generalelection helped to dispel some of the uncertainty that has weighed on domestic equities since the European Union(EU) referendum vote in 2016. Sterling also rallied in the aftermath of the Conservatives victory, reaching highs notseen since May 2018. Market confidence remained high into the start of 2020, until markets fell sharply in Februaryand March as the coronavirus (COVID-19) spread across the globe, weighing heavily on both markets and the globaleconomy. To tackle the economic challenge of the virus outbreak, new UK Chancellor Rishi Sunak announced fiscalstimulus packages of almost £60bn. These stimulus packages included grants paying up to 80% of workers’ salaries to prevent job losses, including the self-employed, as well as tax cuts for businesses and increased social securityspending. The government also offered £330bn of loan guarantees for companies financed through new debt issuance.Supplementing these fiscal measures, the Bank of England (BoE) cut rates by 50 bps to 0.25% on 12 March, andfollowing this just a week later with an emergency rate cut to 0.1%, the lowest level in the central bank’s 325-yearhistory. The BoE provided further support by restarting its bond purchasing program. UK manufacturing economic data showed a likely significant contraction as output dropped at the sharpest pace since July 2012.

All sectors performed negatively over the period, with the exception of the more defensive utilities sector. Oil & gas,consumer services and telecommunications fell the most over the period. Oil prices suffered their worst quarter inhistory in Q1 2020 as the coronavirus pandemic weighed heavily on demand and Saudi Arabia decided to raise oilproduction after a breakdown in Russia-OPEC talks.


Lazard Multicap UK Income Fund




57

Portfolio Review

What contributed to Returns• Stock selection in basic materials, oil & gas and technology

• Mining business Rio Tinto defended well given the macro uncertainty

• Food retailer Tesco added value over the period. Despite the current difficult economic environment caused by thevirus related shutdown, the company benefitted from increased consumer spending due to the shift from out of hometo in home calorie consumption. In addition, the market reacted favourably to news that the sale of Tesco’s operationsin Asia had been agreed at the top end of expectations

What detracted from Returns• Stock selection in financials, industrials and consumer services

• Financial and real estate business Land Securities detracted as the company announced that the COVID-19 pandemichad led to a material shortfall in rent collections and reduced visitor numbers among its retail and leisure destinations

• Banking group Barclays detracted due to the market sell-off, rate cuts by the Bank of England, and an announcementby the Prudential Regulatory Authority for UK banks to suspend dividends and buybacks until the end of 2020


As investors, we believe the current market environment represents a generational buying opportunity, similar to what wasseen during the Global Financial Crisis, with some areas of the market now having fallen by half or more in the last monthalone. Whilst it may be too soon to add further exposure currently due to the significant uncertainty in the market, we areclosely assessing companies that fulfil our investment criteria of strong balance sheets, good returns, and sustainabledividends, which are trading at attractive valuations that we haven’t seen for many years.


Lazard Multicap UK Income Fund continued

58

Oil & Gas Producers (14.62%) 5,388 10.19 BP 832,289 2,858 5.41 Diversified Gas & Oil 583,478 504 0.95 Royal Dutch Shell 'B' (UK Regd.) 149,000 2,026 3.83

Chemicals (1.07%) 574 1.09 Synthomer 238,182 574 1.09

Mining (6.75%) 3,967 7.50 Anglo American 97,455 1,380 2.61 Rio Tinto (UK Regd.) 69,602 2,587 4.89

Construction & Materials (1.62%) 424 0.80 Melrose Industries 235,528 215 0.41 Norcros 166,495 209 0.39

Electronic & Electrical Equipment (0.64%) 308 0.58 DiscoverIE 62,788 308 0.58

Aerospace & Defence (0.00%) 419 0.79Babcock International 109,536 419 0.79

Industrial Engineering (0.99%) 359 0.68 Weir 49,760 359 0.68

Industrial Transportation (0.21%) — —

Support Services (5.03%) 2,204 4.17 Essentra 117,894 310 0.59 Ferguson 10,725 542 1.03 Gateley 271,456 312 0.59 Northgate 156,725 218 0.41 SThree 154,948 355 0.67 Sureserve 805,787 306 0.58 Vianet 224,229 161 0.30

Beverages (4.10%) 2,089 3.95 Diageo 80,805 2,089 3.95

Food Producers (4.37%) 2,545 4.81 Unilever 62,522 2,545 4.81

Household Goods & Home Construction (2.39%) 2,948 5.58 Bellway 24,106 519 0.98 Headlam 123,548 380 0.72 Reckitt Benckiser 21,258 1,307 2.47 Taylor Wimpey 631,365 742 1.41

Tobacco (2.12%) 1,837 3.48 British American Tobacco 66,619 1,837 3.48

Health Care Equipment & Services (1.76%) 740 1.40 Smith & Nephew 51,590 740 1.40

Pharmaceuticals & Biotechnology (9.20%) 5,961 11.28 AstraZeneca 34,782 2,509 4.75 GlaxoSmithKline 195,862 2,966 5.61 Sanofi 6,847 486 0.92

Food & Drug Retailers (2.20%) 1,690 3.20 Tesco 739,439 1,690 3.20

General Retailers (0.28%) 898 1.70 DFS Furniture 131,965 153 0.29 Dixons Carphone 482,087 376 0.71 Next 9,058 369 0.70

Media (3.60%) 694 1.31 Nahl 357,380 140 0.26 WPP 100,429 554 1.05

Travel & Leisure (4.93%) 428 0.81 easyJet 49,499 283 0.54 Hostelworld 272,540 145 0.27

Mobile Telecommunications (3.77%) 2,038 3.86 Vodafone 1,804,071 2,038 3.86

Gas, Water & Multiutilities (2.01%) 2,180 4.12 ENGIE 60,997 508 0.96 National Grid 176,697 1,672 3.16





59

Banks (8.33%) 4,278 8.09 Barclays 1,108,296 1,043 1.97 HSBC (UK Regd.) 473,741 2,152 4.07 Lloyds Banking 1,474,121 472 0.89 Standard Chartered 136,945 611 1.16

Nonlife Insurance (1.70%) 880 1.67 Randall & Quilter Investment 223,141 335 0.64 RSA Insurance 129,581 545 1.03

Life Insurance (7.41%) 4,183 7.91 Aviva 221,712 595 1.12 Legal & General 455,835 883 1.67 Phoenix 164,375 1,030 1.95 Prudential 162,290 1,675 3.17

Real Estate Investment & Services (1.01%) 512 0.97 Belvoir Lettings 309,459 285 0.54 Palace Capital 130,349 227 0.43

Real Estate Investment Trusts (1.39%) 857 1.62 Land Securities 154,152 857 1.62

Financial Services (5.94%) 2,588 4.90 Arrow Global 140,740 149 0.28 Brewin Dolphin 211,422 463 0.88 IMI 69,414 519 0.98 Intermediate Capital 46,087 413 0.78 Network International 47,492 185 0.35 Paragon 145,791 484 0.92 XPS Pensions 344,147 375 0.71

Software & Computer Services (1.19%) 720 1.36 Computacenter 29,214 418 0.79 FDM 40,923 302 0.57










60





31.03.20

£’000 £’000

31.03.19

£’000 £’000






Distributions


(18,076) 1,208 (380) —

828 —

828

(17,248)

(1,182)

(18,430)

(2,742) 1,528(379)—

1,14915

1,164

(1,578)

(1,522)

(3,100)

31.03.20

£’000 £’000

31.03.19

£’000 £’000




67,946 5,221 (2,621)

2,600 (18,430)

743 2

52,861

72,478 982

(3,527)(2,545) (3,100) 940 3

67,776

31.03.20

£’000 £’000

30.09.19

£’000 £’000



Total other assets

Total assets

LiabilitiesCreditorsBank overdraftsDistribution payable Other creditors


Total liabilities


51,709

659 1,008

1,667

53,376

(3) (244) (268)

(515)

(515)

52,861

67,015

228 1,094

1,322

68,337

—(294) (97)

(391)

(391)

67,946



61







A Income shares 0.83%A Accumulation shares 0.83%B Income shares 1.33%B Accumulation shares 1.33%



The risk and reward category is calculated using historical data and may not be a reliable indicator of the Sub-fund’s future risk profile. The risk and reward category may shift over time and is not a target or guarantee.The lowest category (i.e. category 1) does not mean "risk free".The Sub-fund appears in the higher risk category on the risk and reward indicator.This is because the Sub-fund invests primarily in shares, whose values tend to have higher price fluctuations.The returns from your investment may be affected by changes in the exchange rate between the Sub-fund's base currency, and the currency of the Sub-fund's investments, your share class and your home currency.High yielding assets may carry a greater risk of capital values falling or have limited prospects of capital growth or recovery.The Sub-fund may invest in units or shares of other investment Sub-fund’s. Such other Sub-fund’s may themselves be subject to their own fees and expenses.The annual management charge is deducted from the capital of the Sub-fund. This will increase the income from the Sub-fund but may constrain or erode potential for capital growth.There is no capital guarantee or protection of the value of the Sub-fund. The value of your investment and the income from it can go down as well as up and you may not get back the amount you originally invested.See "Risk Factors" in the UCITS Prospectus for more information about risks.



A sharesThe distribution payable on 31 May 2020 is 5.7053p net per share for A Income shares and 9.9991p net per shares for A Accumulation shares.

B sharesThe distribution payable on 31 May 2020 is 5.2130p net per share for B Income shares and 12.8217p net per shares for B Accumulation shares.



1 2 3 4 5 6 7


A Income sharesA Accumulation sharesB Income sharesB Accumulation shares

3,198,564 629,109

1,172,933 2,429,331

2,614,249635,399

1,203,1572,489,896

2,813,788614,843

1,318,5412,648,228

62









654.53484.73-25.94%

1,137.77859.49-24.46%

599.18442.61-26.13%

1,461.751,101.46-24.65%

677.12649.24-4.12%

1,120.691,099.26-1.91%

622.99595.84-4.36%

1,447.021,415.81-2.16%

689.30654.99-4.98%

1,091.151,056.50-3.18%

637.42604.15-5.22%

1,416.011,367.57-3.42%



63


The objective of the Lazard UK Omega Fund (the “Sub-fund”) is to achieve long-term capital growth through aportfolio of primarily UK listed stocks.

Investment ReviewOver the six-month period ending 31 March 2020, the Sub-fund returned -24.85% in sterling terms, against the FTSE All-Share Index, which returned -22.02%(1).

Investment PolicyThe Sub-fund is actively managed and will invest at least 70% of its value in equities (i.e. shares) and equity-relatedsecurities (namely, common and preferred stock, including securities subject to an initial public offering, convertiblesecurities, warrants and rights) of companies that are domiciled, incorporated, or which have a significant portion oftheir business primarily in the UK.

The Sub-fund will typically hold a concentrated portfolio of between 25 and 35 securities. The Sub-fund may alsoinvest in companies which are listed, quoted or traded in the UK.

Market reviewDuring the final quarter of 2019, UK equities performed well as the Conservative Party’s landslide win in the generalelection helped to dispel some of the uncertainty that has weighed on domestic equities since the European Union(EU) referendum vote in 2016. Sterling also rallied in the aftermath of the Conservatives victory, reaching highs notseen since May 2018. Market confidence remained high into the start of 2020, until markets fell sharply in Februaryand March as the coronavirus (COVID-19) spread across the globe, weighing heavily on both markets and the globaleconomy. To tackle the economic challenge of the virus outbreak, new UK Chancellor Rishi Sunak announced fiscalstimulus packages of almost £60bn. These stimulus packages included grants paying up to 80% of workers’ salaries to prevent job losses, including the self-employed, as well as tax cuts for businesses and increased social securityspending. The government also offered £330bn of loan guarantees for companies financed through new debt issuance.Supplementing these fiscal measures, the Bank of England (BoE) cut rates by 50 bps to 0.25% on 12 March, andfollowing this just a week later with an emergency rate cut to 0.1%, the lowest level in the central bank’s 325-yearhistory. The BoE provided further support by restarting its bond purchasing program. UK manufacturing economic data showed a likely significant contraction as output dropped at the sharpest pace since July 2012.

All sectors performed negatively over the period, with the exception of the more defensive utilities sector. Oil & gas,consumer services and telecommunications fell the most over the period. Oil prices suffered their worst quarter inhistory in Q1 2020 as the coronavirus pandemic weighed heavily on demand and Saudi Arabia decided to raise oilproduction after a breakdown in Russia-OPEC talks.


Lazard UK Omega Fund


(1) Source: Lazard Asset Management, NAV to NAV Price, net income reinvested in sterling, C Accumulation share class net of fees, to 31 March 2020.


64

Portfolio Review

What contributed to Returns• Stock selection within consumer services, oil & gas and basic materials, as well as the overweight to consumer goods

• An overweight position in Pets at Home Group also contributed favourably during the month as a net beneficiary of thecurrent environment and the defensive nature of the business

• Food retailers Tesco and Sainsbury contributed positively as both companies benefitted from increased consumerspending due to stockpiling by customers as lockdown measures hit the UK. In addition, Tesco’s operations in Asiawere sold-off for an amount at the top end of expectations

What detracted from Returns• Stock selection in consumer goods and industrials, and the underweight to health care

• Consumer services retail business Marks and Spencer hurt performance having retraced all of the outperformance postthe general election. During the period it reported mixed third-quarter sales, with its food business performing well,whilst the clothing and home lines were weak

• Banking group Barclays detracted due to the market sell-off, rate cuts by the Bank of England, and an announcementby the Prudential Regulatory Authority for UK banks to suspend dividends and buybacks until the end of 2020




Lazard UK Omega Fund continued

65

Oil & Gas Producers (13.84%) 10,462 6.97BP 3,046,320 10,462 6.97

Chemicals (4.77%) 2,962 1.97Synthomer 1,229,070 2,962 1.97

Mining (6.13%) 11,109 7.40Anglo American 367,644 5,206 3.47Rio Tinto (UK Regd.) 158,786 5,903 3.93

Construction & Materials (0.00%) 2,463 1.64Breedon 3,686,955 2,463 1.64

Industrial Engineering (2.18%) — —

Support Services (4.47%) 6,719 4.48Ferguson 74,286 3,755 2.50Rentokil Initial 764,538 2,964 1.98

Beverages (9.24%) 10,896 7.26Coca-Cola HBC 193,005 3,351 2.23Diageo 291,878 7,545 5.03

Food Producers (5.93%) 10,895 7.26Associated British Foods 200,358 3,629 2.42Unilever 178,515 7,266 4.84

Household Goods & Home Construction (2.44%) 6,316 4.21Reckitt Benckiser 59,570 3,663 2.44Taylor Wimpey 2,259,281 2,653 1.77

Personal Goods (0.00%) 2,827 1.88Burberry 213,599 2,827 1.88

Pharmaceuticals & Biotechnology (4.45%) 17,377 11.58AstraZeneca 121,644 8,776 5.85GlaxoSmithKline 568,044 8,601 5.73

Food & Drug Retailers (5.01%) 10,337 6.89J Sainsbury 1,809,016 3,806 2.54Tesco 2,856,925 6,531 4.35

General Retailers (0.00%) 6,119 4.08Next 61,731 2,514 1.68Pets at Home 1,407,298 3,605 2.40

Media (7.02%) 3,387 2.26WPP 614,409 3,387 2.26

Travel & Leisure (4.32%) 3,100 2.07InterContinental Hotels 43,561 1,530 1.02International Consolidated Airlines (UK Regd.) 729,964 1,570 1.05

Mobile Telecommunications (4.98%) 6,149 4.10Vodafone 5,442,228 6,149 4.10

Banks (9.22%) 7,045 4.70Barclays 4,551,249 4,283 2.86Standard Chartered 619,488 2,762 1.84

Life Insurance (5.37%) 7,519 5.01Prudential 728,629 7,519 5.01

Real Estate Investment Trusts (0.00%) 3,116 2.08Land Securities 560,171 3,116 2.08





66

Financial Services (8.96%) 20,015 13.343i 433,702 3,436 2.29Calisen 1,695,444 3,031 2.02Hargreaves Lansdown 187,819 2,599 1.73IMI 448,778 3,354 2.24London Stock Exchange 48,325 3,514 2.34Trian Investors 4,436,201 4,081 2.72










67





31.03.20

£’000 £’000

31.03.19

£’000 £’000






Distributions


(49,456) 3,023 (727) —

2,296 —

2,296

(47,160)

(2,297)

(49,457)

(14,487) 3,599(774)—

2,825—

2,825

(11,662)

(2,825)

(14,487)

31.03.20

£’000 £’000

31.03.19

£’000 £’000


Dilution adjustmentChange in net assets attributable to Shareholders from investment activitiesRetained distribution on accumulation sharesUnclaimed distributions


196,579 15,191 (13,773)

1,418 8

(49,457) 1,486

6

150,040

221,364 29,305(45,674)

(16,369)—

(14,487) 1,649

5

192,162

31.03.20

£’000 £’000

30.09.19

£’000 £’000



Total other assets

Total assets



Total liabilities


148,813

4,609 871

5,480

154,293

(859) (3,394)

(4,253)

(4,253)

150,040

193,298

6774,331

5,008

198,306

(1,493)(234)

(1,727)

(1,727)

196,579



68







A Income shares 1.05%A Accumulation shares 1.05%B Income shares 1.55%B Accumulation shares 1.55%C Income shares 0.80%C Accumulation shares 0.80%EA Income shares 0.55%EA Accumulation shares 0.55%



The risk and reward category is calculated using historical data and may not be a reliable indicator of the Sub-fund’s future risk profile. The risk and reward category may shiftover time and is not a target or guarantee.The lowest category (i.e. category 1) does not mean “risk free”.The Sub-fund appears in the higher risk category on the risk and reward indicator.This is because the Sub-fund invests primarily in shares, whose values tend to have higher price fluctuations.The returns from your investment may be affected by changes in the exchange rate between the Sub-fund's base currency, and the currency of the Sub-fund's investments, yourshare class and your home currency.In view of the concentrated nature of the Sub-fund’s portfolio of investments, the level of risk is expected to be higher than for broader based portfolios and the net asset valuemay be more volatile.The Sub-fund may invest in units or shares of other investment Sub-fund’s. Such other Sub-fund’s may themselves be subject to their own fees and expenses.There is no capital guarantee or protection of the value of the Sub-fund. The value of your investment and the income from it can go down as well as up and you may not getback the amount you originally invested.See “Risk Factors” in the UCITS Prospectus for more information about risks.




B sharesThe distribution payable on 31 May 2020 is 1.7261p net per share for B Income shares and 1.9800p net per share for B Accumulation shares.C sharesThe distribution payable on 31 May 2020 is 2.5426p net per share for C Income shares and 3.1064p net per share for C Accumulation shares.EA sharesThe distribution payable on 31 May 2020 is 1.3975p net per share for EA Income shares and 1.5885p net per share for EA Accumulation shares.



1 2 3 4 5 6 7


A Income sharesA Accumulation sharesB Income sharesB Accumulation sharesC Income sharesC Accumulation sharesEA Income sharesEA Accumulation shares

3,044,2923,159,5854,591,108386,237

10,129,45624,373,80632,397,34039,895,780

3,145,9223,344,9754,764,244421,653

12,120,89823,973,50028,381,83537,918,074

3,450,9734,105,6665,568,5441,549,84512,593,04325,774,29422,158,37744,775,324

69











EA Income sharesOpening net asset value per shareClosing net asset value per share% Change in net asset value per share

EA Accumulation sharesOpening net asset value per shareClosing net asset value per share% Change in net asset value per share

219.66164.11-25.29%

269.23203.92-24.26%

219.21163.89-25.24%

251.41189.96-24.44%

220.02164.32-25.32%

268.67203.76-24.16%

109.2381.55

-25.34%

124.1694.28

-24.07%

235.13219.04-6.84%

279.39263.53-5.68%

234.66218.59-6.85%

262.25246.71-5.93%

235.50219.40-6.84%

278.11262.65-5.56%

116.90108.91-6.83%

128.21121.23-5.44%

230.13227.37-1.20%

266.40265.60-0.30%

229.62226.91-1.18%

251.30249.92-0.55%

230.50227.74-1.20%

264.50264.05-0.17%

114.42113.04-1.21%

121.63121.58-0.04%



70


The objective of the Lazard UK Smaller Companies Fund (the "Sub-fund") is to achieve capital growth at a rate greaterthan that of the Numis Smaller Companies Index.

Investment ReviewOver the six-month period ending 31 March 2020, the Sub-fund returned -22.42% in sterling terms, against the NSCI ex-Investment Companies Index, which returned -27.08%(1).

Investment PolicyThe Sub-fund is actively managed and will invest at least 80% of its value in equities (i.e. shares) and equity-relatedsecurities (namely, common and preferred stock - including securities subject to an initial public offering - convertiblesecurities, warrants and rights) of companies that are domiciled, incorporated or have a significant portion of theirbusiness in the UK.

The Sub-fund will invest at least 80% of its assets in UK companies which form part of the bottom 10% - by marketcapitalisation - of the UK market).

Market reviewDuring the final quarter of 2019, UK small company equities performed well as the Conservative Party’s landslide win in the general election helped to dispel some of the uncertainty that has weighed on domestic equities since theEuropean Union (EU) referendum vote in 2016. Sterling also rallied in the aftermath of the Conservatives victory,reaching highs not seen since May 2018. Market confidence remained high into the start of 2020, until markets fellsharply in February and March as the coronavirus (COVID-19) spread across the globe, weighing heavily on bothmarkets and the global economy. To tackle the economic challenge of the virus outbreak, new UK Chancellor RishiSunak announced fiscal stimulus packages of almost £60bn. These stimulus packages included grants paying up to 80% of workers’ salaries to prevent job losses, including the self-employed, as well as tax cuts for businesses andincreased social security spending. The government also offered £330bn of loan guarantees for companies financedthrough new debt issuance. Supplementing these fiscal measures, the Bank of England (BoE) cut rates by 50 bps to0.25% on 12 March, and following this just a week later with an emergency rate cut to 0.1%, the lowest level in thecentral bank’s 325-year history. The BoE provided further support by restarting its bond purchasing program. UKmanufacturing economic data showed a likely significant contraction as output dropped at the sharpest pace since July 2012.

All sectors performed negatively over the period with oil & gas, consumer goods and consumer services falling themost, whilst technology and telecommunications performed relatively better. Oil prices suffered their worst quarter inhistory in Q1 2020 as the coronavirus pandemic weighed heavily on demand and Saudi Arabia decided to raise oilproduction after a breakdown in Russia-OPEC talks.


Lazard UK Smaller Companies Fund


(1) Source: Lazard Asset Management, NAV to NAV Price, net income reinvested in sterling, A Income share class net of fees, to 31 March 2020.


71

Portfolio Review

What contributed to Returns• Stock selection in industrials and health care, as well as an underweight in consumer services and overweight in

technology

• Smart Metering Systems contributed positively after announcing that it had conditionally sold a minority of the group’smeter assets, as well as announcing a new and enhanced dividend policy

• Video games label Team17 Group added value after releasing full-year revenue ahead of market expectations and also anet beneficiary of the lockdown measures in the UK due to COVID-19

What detracted from Returns• Stock selection in technology and financials, as well as a lack of exposure within telecommunications

• Housing development business Vistry Group also underperformed due to the challenging market environment

• City Pub Group underperformed over the period as its operations were disrupted by COVID-19 related restrictions




Lazard UK Smaller Companies Fund continued

72

Oil & Gas Producers (3.60%) 317 2.29Cairn Energy 157,239 122 0.88Diversified Gas & Oil 211,228 182 1.32Premier Oil 74,924 13 0.09

Oil Equipment, Services & Distribution (1.10%) 121 0.88Hunting 69,073 121 0.88

Chemicals (2.77%) 339 2.45Elementis 148,289 73 0.53Synthomer 110,573 266 1.92

Mining (1.84%) 320 2.31Centamin 178,880 217 1.57Kenmare Resources 49,267 101 0.73Petra Diamonds 225,874 2 0.01

Construction & Materials (5.33%) 1,007 7.28Galliford Try 98,333 129 0.93Keller 26,997 142 1.03Norcros 93,297 117 0.85Polypipe 57,570 264 1.91Tekmar 102,662 100 0.72Volution 166,872 255 1.84

Aerospace & Defence (1.15%) 82 0.59Senior 117,155 82 0.59

Electronic & Electrical Equipment (3.40%) 541 3.91Dialight 43,511 93 0.67Discoverie 50,192 246 1.78Morgan Advanced Materials 103,097 191 1.38Xaar 51,244 11 0.08

Industrial Engineering (1.06%) 133 0.96Bodycote 23,508 133 0.96

Industrial Metals & Mining (0.65%) 101 0.73Ferrexpo 85,855 101 0.73

Industrial Transportation (1.29%) 63 0.46Braemar Shipping Services 66,067 63 0.46

Support Services (16.20%) 2,062 14.91Alpha Financial Markets Consulting 92,010 106 0.77Biffa 135,119 243 1.76Equiniti 102,609 182 1.32Essentra 64,455 169 1.22Gateley 128,385 148 1.07Johnson Service 104,040 107 0.77Keywords 9,778 141 1.02Northgate 82,228 114 0.82Sanne 35,422 217 1.57Smart Metering Systems 37,976 251 1.81SThree 87,196 200 1.45Sureserve Group 266,064 101 0.73Vianet 115,750 83 0.60

Automobiles & Parts(0.00%) 32 0.23Aston Martin Lagon 16,252 32 0.23

Food Producers (0.00%) 105 0.76Greencore 63,792 105 0.76

Household Goods & Home Construction (3.02%) 330 2.39Headlam 64,176 198 1.43Vistry 22,999 132 0.96

Personal Goods (1.30%) 106 0.77Superdry 22,566 24 0.18Watches of Switzerland 43,987 82 0.59

Health Care Equipment & Services (1.75%) 132 0.95PureTech Health 55,061 132 0.95

Pharmaceuticals & Biotechnology (2.24%) 426 3.08Allergy Therapeutics 345,554 26 0.19Genus 6,717 219 1.58Vectura 187,752 181 1.31





73

Food & Drug Retailers (1.24%) 164 1.19Clinigen 30,407 164 1.19

General Retailers (2.87%) 511 3.69boohoo.com 53,043 101 0.73DFS Furniture 93,619 109 0.79Pets at Home 79,713 204 1.47Topps Tiles 267,084 97 0.70

Media (3.77%) 598 4.32Future 24,296 243 1.76Nahl 233,907 92 0.66S4 Capital 68,623 103 0.74The Pebble Group 200,069 160 1.16

Travel & Leisure (7.19%) 549 3.97City Pub 127,838 84 0.61City Pub Rights 29,054 15 0.11Go-Ahead 11,783 97 0.70Goals Soccer Centres* 198,204 — 0.00Gym 115,806 163 1.18Hostelworld 125,470 67 0.48Mitchells & Butlers 67,475 123 0.89Thomas Cook* 244,741 — 0.00

Nonlife Insurance (1.38%) 189 1.37Randall & Quilter Investment 125,698 189 1.37

Life Insurance (1.14%) — —

Real Estate Investment & Services (6.29%) 1,103 7.98Belvoir Lettings 182,516 168 1.22Helical Bar 59,989 210 1.52LSL Property Services 125,468 200 1.45Palace Capital 67,354 118 0.85Savills 19,384 160 1.16U and I 139,801 111 0.80Urban & Civic 65,580 136 0.98

Real Estate Investment Trusts (5.68%) 425 3.07Safestore 46,870 300 2.17Workspace 16,416 125 0.90

Financial Services (11.02%) 1,692 12.23AFH Financial 86,549 216 1.56Arrow Global 81,373 86 0.62Boku 147,422 118 0.85Brewin Dolphin 98,834 216 1.56IntegraFin 50,947 222 1.61Intermediate Capital 12,107 108 0.78IP 133,110 67 0.48Morses Club 153,466 56 0.40Paragon 75,516 251 1.82RM 111,153 156 1.13XPS Pensions 179,754 196 1.42

Software & Computer Services (8.80%) 1,351 9.77Alfa Financial Software 124,771 96 0.69Blue Prism 9,120 102 0.74Computacenter 16,109 230 1.66FDM 24,521 181 1.31GB 33,957 197 1.42IMImobile 72,190 235 1.70SDL 39,434 153 1.11Team17 27,550 157 1.14

Technology Hardware & Equipment (1.72%) 246 1.78IQE 138,426 37 0.27Spirent Communications 100,352 209 1.51




Unless otherwise stated, all holdings are quoted in ordinary shares and listed on a recognised exchange. The percentages in brackets show the equivalent comparative holdings as at 30.09.19.

* Suspended security





74





31.03.20

£’000 £’000

31.03.19

£’000 £’000






Distributions


(2,105) 273 (164)

—

109 (2)

107

(1,998)

(107)

(2,105)

(5,685) 394 (216)

—

178—

178

(5,507)

(178)

(5,685)

31.03.20

£’000 £’000

31.03.19

£’000 £’000


Dilution adjustmentChange in net assets attributable to Shareholders from investment activities


39,857 470

(24,629) (24,159)

238 (2,105)

13,831

45,538 91

(322) (231)

—(5,685)

39,622

31.03.20

£’000 £’000

30.09.19

£’000 £’000

AssetsFixed assets

Investments Current assets

Debtors Cash and bank balances

Total other assets

Total assets

LiabilitiesCreditors

Bank overdraftsDistribution payable Other creditors


Total liabilities


13,045

90 779

869

13,914

(3) (56) (24)

(83)

(83)

13,831

38,979

183 1,351

1,534

40,513

—(587) (69)

(656)

(656)

39,857



75







A Income shares 1.12%B Income shares 1.63%C Income shares 0.88%



The risk and reward category is calculated using historical data and may not be a reliable indicator of the Sub-fund’s future risk profile. The risk and reward category may shiftover time and is not a target or guarantee.The lowest category (i.e. category 1) does not mean “risk free”.The Sub-fund appears in the higher risk category on the risk and reward indicator.This is because the Sub-fund invests primarily in shares, whose values tend to have higher price fluctuations.The returns from your investment may be affected by changes in the exchange rate between the Sub-fund's base currency, and the currency of the Sub-fund's investments, yourshare class and your home currency.In view of the concentrated nature of the Sub-fund’s portfolio of investments, the level of risk is expected to be higher than for broader based portfolios and the net asset valuemay be more volatile.It may not be possible to sell the shares of smaller companies as easily as those of larger companies and this may cause the share price to fall.The Sub-fund may invest in units or shares of other investment Sub-fund’s. Such other Sub-fund’s may themselves be subject to their own fees and expenses.There is no capital guarantee or protection of the value of the Sub-fund. The value of your investment and the income from it can go down as well as up and you may not getback the amount you originally invested.See “Risk Factors” in the UCITS Prospectus for more information about risks.



A sharesThe distribution payable on 31 May 2020 is 6.0987p net per share for A Income shares.

B sharesThe distribution payable on 31 May 2020 is 1.0908p net per share for B Income shares.

C sharesThe distribution payable on 31 May 2020 is 8.7063p net per share for C Income shares.



1 2 3 4 5 6 7


A Income sharesB Income sharesC Income shares

568,688 143,624 221,321

1,695,320145,784237,227

1,699,089165,974257,296

76








1,917.851,481.56-22.75%

1,916.141,481.49-22.68%

1,917.841,480.86-22.79%

2,145.791,877.77-12.49%

2,143.891,876.09-12.49%

2,145.761,877.77-12.49%

2,089.321,994.32-4.55%

2,087.211,992.52-4.54%

2,089.271,994.27-4.55%



77

Management & Professional Services

Authorised Lazard Fund Managers LimitedCorporate 50 Stratton Street

Director (ACD) London W1J 8LLTelephone 020 7588 2721Dealing 0370 606 6408www.lazardassetmanagement.com

(Authorised and regulated by the Financial Conduct Authority)(Member of The IA)

Investment Lazard Asset Management LimitedAdviser 50 Stratton Street

London W1J 8LLwww.lazardassetmanagement.com

(Authorised and regulated by the Financial Conduct Authority)(Member of The IA)

Depositary The Bank of New York Mellon (International) LimitedOne Canada SquareLondon E14 5AL

(Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority)

Independent PricewaterhouseCoopers LLPAuditors Atria One, 144 Morrison Street

Edinburgh EH3 8EX

Registrar The Bank of New York Mellon (International) LimitedCapital House, 2 Festival SquareEdinburgh EH3 9SU

(Authorised and regulated by the Financial Conduct Authority)

Prospectus Copies of the latest Prospectus are available free of charge from the ACD at the above address or you can e-mail [email protected].

Key Investor Copies of Key Investor Information Documents are available free of Information charge from the ACD at the above address or you can e-mail [email protected].

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