With regard to the investment target, the investment company will invest at least 80% of the assets in selected companies that are domiciled in Europe or that are listed at an European stock exchange. The term “Europe” includes all countries which are included in the MSCI Europe index. Upon investment, the companies' market capitalization shall not exceed EUR 1bn. Fund management will focus on companies whose capitalization is in the lower third of the respective regional market.

In the long run, the fund shall represent a highly concentrated portfolio that usually contains securities of not more than 40 companies.

The elimination of general risks of investments in equities and specific risks of investments in “MicroCap equities”, namely credit and liquidity risks, cannot be warranted even despite thorough analysis of the issues and the issuing companies. Aspects like sustainability of the capital structure, the feasibility of the company's business model or the management's quality play an important role in analyzing the attractiveness of a company. However, this kind of analysis should lead to an early visibility of the aforementioned risks.

The fund will invest only in equities that are denominated in Euro; otherwise, the currency exposure will be hedged by the use of derivative instruments. In spite of these hedging activities, it cannot be ruled out that currency movements might negatively influence the fund's performance. This possible influence stems from hedging costs and a possible over- or underhedge due to price variations in the underlying assets.

Kind of fund: mutual fund for institutional investors

ISIN: DE000A0H1FW8, WKN: A0H1FW

Date of issue: June 1 st , 2006

Custodian: LRP Landesbank Rheinland-Pfalz
Große Bleiche 54-56
D-55098 Mainz

Investment horizon: medium-term to long-term

Fund currency: Euro

Issuing subscription price: 100 Euro

Initial charge: 2 %

Annual charge: 1,0 % p. a. plus a participation of 10% of the outperformance versus Citigroup 3M Euro Deposit

Redemption Fee: The calculation of the NAV per share will include a redemption fee of 2% of NAV. With regard to a written and irrevocable repurchase notification within 90 days to a month's end, the repurchase fee will not be imposed. The investment company assumes that within this period of time, the eventual liquidation of assets can be realized without disadvantages for remaining investors.

Minimum amount of initial subscription: EUR 1m, subsequent subscription will be accepted from EUR 100k.

Fiscal year end: March 31 st

Distribution policy: reinvesting

• Lazard Asset Management (Deutschland) GmbH
  Alte Mainzer Gasse 37
  D-60311 Frankfurt am Main
  fondsmarketing@lazard.com
  



Source: Lazard Asset Management (Deutschland) GmbH. This publication is for information only and is not intended to constitute investment advice.

Investors are reminded that the value of shares and the income from them can go down as well as up and that they may not get back the full amount invested especially over the short term. Past performance is not necessarily a guide to future returns.