Benefits of investing in the Lazard Select Australian Equity Fund (W Class)

The significant features of the Fund are that it has a professionally managed active investment strategy and gives investors access to the returns from Australian equities.

Lazard believes some of the significant benefits of investing in the Fund are:

• Investment Return - the Fund aims to achieve a return for investors that meets or exceeds the Fund's stated investment return objective.

• Expertise - the Fund is managed by a team of investment professionals who have many years of experience managing Australian equity strategies. They also have access to LAM's global investment professionals.

• Liquidity - investors have timely access to their investment and are normally provided with daily Fund valuations (daily unit prices).

• Systems - the investment professionals have access to investment and risk management systems and processes to which ordinary investors usually do not have access.

• Access to investments - multiple investors are pooled into a relatively large Fund which provides investors with access to investment opportunities and diversity which they usually can't achieve by investing on their own.

• Reporting - regular reporting is provided to investors including balances, fact sheets and annual tax statements.

Risk level

High

Investor suitability

Investors seeking an investment return objective similar to the Fund and are comfort- able with the risks of investing, as described in the PDS.

About the Fund

The Lazard Select Australian Equity Fund is a highly concentrated portfolio that will hold between 12 and 30 of our "best ideas." It is an actively managed portfolio that typically invests in Australian equities that we believe are trading below their intrinsic value. It is a high conviction portfolio with high active share and low beta characteristics over time. The Fund's objective is to achieve total returns (including income and capital appreciation and before the deduction of fees and taxes) that exceed those of the S&P/ASX 200 Accumulation Index by 5% per annum over rolling five-year periods.

Key features

• High Conviction: Benchmark unconstrained, with high active share and best ideas

• Disciplined Value' Investment Approach: Longer-term Independent thinking

• Stability and Experience: Team together at Lazard for more than 18 years

Investment Philosophy

Lazard believes that emotions move share prices away from their intrinsic value. We also believe that in time, supply and demand tend toward balance, encouraging reversion towards the mean in a range of variables such as interest rates, currencies, economic growth, profit margins, returns on capital and valuations. Lazard uses the principles of mean reversion in establishing its assessment of the intrinsic value of shares. We seek to exploit opportunities through objective, independent research and disciplined execution in order to reward investors willing to take the longer view.

How we invest your money

The investment strategy of the Fund is to provide investors with access to companies listed on the Australian Securities Exchange that Lazard believes are out of favour and trading below their intrinsic value. The number of stocks will generally range from 12 to 30 which means Lazard makes active investment decisions as to which stocks the Fund holds. The actual number of stocks will typically depend on our assessment of the relative value of the companies that we can invest in.

The Fund may retain securities which were listed on the Australian Securities Exchange when acquired, even if those securities subsequently cease to be listed on that market. The Fund, however, will not add to such holdings except as part of any type of corporate action. If these securities are denominated or pay dividends in a currency other than Australian dollars, the Fund will not generally hedge the currency exposure back to Australian dollars.

The Fund may also invest in initial public offerings which are expected to be listed within 3 months from the date of purchase.

Asset classes and range

• Equities of companies listed or to be listed, predominantly on the Australian Securities Exchange: 95% to 100%

Within this range the Fund may also invest up to 10% in the equities of companies listed on the New Zealand Stock Exchange.

• Cash: 0% to 5%