As at 31/05/10

Monthly Market Review by Sector

The best performing sectors in the FTSE All-Share Index were Health Care, Consumer Goods and Telecommunications. The worst performing sectors were Oil & Gas, Consumer Services and Financials.

What Helped the Fund

• Overweight Aggreko (Support Services)
• Overweight Experian (Support Services)
• Overweight Shire (Pharmaceuticals & Biotechnology)

What Hurt the Fund

• Not owning AstraZeneca (Pharmaceuticals & Biotechnology)
• Not owning British American Tobacco (Tobacco)
• Underweight BHP Billiton (Mining)

Outlook

The UK market outlook is still highly uncertain. The sovereign debt concerns in Continental Europe and to a lesser extent in the UK, combined with tightening fiscal policy, mean that continuing volatility is likely. The clouded macro picture only serves to focus our attention on our bottom-up stock picking approach. We continue to seek attractively valued, financially productive companies with resilient cash flows, strong balance sheets and dominant market positions capable of performing in a variety of market environments.

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

Source: Lazard Asset Management Ltd and Lipper Hindsight. Portfolio information as at 31/05/10.

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.