As at 30/09/08

Monthly Market Review by Sector

The best performing sectors in the FTSE All-Share Index were Utilities, Consumer Goods and Health Care. The worst performing industries were Basic Material, Technology and Industrials.

What Helped the Fund

• Underweight HBOS (Banks)
• Underweight Anglo American (Mining)
• Overweight Persimmon (Household Goods)

What Hurt the Fund

• Overweight Cairn Energy (Oil & Gas Producers)
• Overweight Charter (Industrial Engineering)
• Underweight Tesco (Food & Drug Retailers)

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 UK Alpha 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 the currency of investment may have the effect of causing the value of your investment to diminish or increase. In view of the concentrated nature of certain portfolios, the level of risk is expected to be higher than for more broadly based portfolios.

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.