As at 30/09/08

Monthly Market Review by Sector

The best performing industries within the global equity market were Consumer Staples, Health Care and Financials. The worst performing industries were Materials, Industrials and Energy.

What Helped the Fund

• HSBC (UK)
• British Energy (UK)
• Bank of New York Mellon (International)
• Duration Positioning (Fixed Income)

What Hurt the Fund

• Rio Tinto (UK)
• Royal Dutch Shell B (UK)
• BAE Systems (International)
• Credit Exposure (Fixed Income)

Outlook

The frequent changes to the global financial narrative render it inappropriate to make any forward-looking statements on the short-term direction of the UK and global stock markets. However, we remain true to our long established investment principles that have served us well across a range of market conditions. We continue to rigorously research stocks to identify those companies generating high or improving financial productivity whilst trading at attractive valuations. We believe adherence to this approach will enable us to continue to add value to our clients’ portfolios over the long term.

Past performance should not be taken as guide to future returns.

Source: Lazard Asset Management Ltd and Lipper Hindsight. Portfolio information as at 30/09/08.

This is a financial promotion and is not intended to constitute investment advice.

The Lazard Managed Balanced Fund is a sub-fund of Lazard Investment Funds, a UK-authorised Open Ended Investment Company (“OEIC”) and UCITS.

Investors are reminded that the value of shares and the income from them can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested. Fluctuations in the rate of exchange between the currency in which shares are denominated and currency of investment may have the effect of causing the value of investment to diminish or increase.

**50% of the annual management charge is deducted from the capital of the fund. This will increase the income from the fund but may constrain or erode potential capital growth. The increased income will lead to increased potential income tax liability.

The information provided should not be considered as a recommendation or solicitation to purchase, sell or hold these securities. It should also not be assumed that any investment in these securities was or will be, profitable.

The Authorised Corporate Director of the fund is Lazard Fund Managers Limited, which is authorised and regulated by the Financial Services Authority (“FSA”) and is a member of IMA.

This financial promotion is issued and approved by Lazard Asset Management Limited, 50 Stratton Street, London W1J 8LL.

Lazard Asset Management Limited is incorporated in England and Wales with registered number 525667. It is authorised and regulated by the Financial Services Authority.