Annualized Returns
Name 3-Month YTD 1-Year 3-Year 5-Year 10-Year Since Inception (%; Gross of fees) (01/01/1994) Lazard International Equity Select ADR - SMA 0.5 0.5 39.3 -5.2 3.5 3.6 7.2 (%; Net of fees) Lazard International Equity Select ADR - SMA -0.2 -0.2 35.1 -8.1 0.4 0.5 4.1 MSCI EAFE Index 0.9 0.9 54.4 -7.0 3.8 1.3 5.1
Performance is presented gross and net of all fees. Net of fees performance has been calculated using a 3.0% fee assumption. Gross of fee performance is presented as supplementary information, as performance excludes transaction costs. Please refer to the disclosures for important additional details of this composite. The performance quoted represents past performance. Past performance does not guarantee future results.

		Lazard			MSCI EAFE Index			S&P 500 Index
Number of Securities		47			952			500
Current Dividend Yield (%)		2.9			2.9			1.9
Average Weighted Market Cap ($ billions)		62.3			45.0			83.9
Turnover – Trailing 12 Months (%)		43.7			N/A			N/A

Characteristics

Equity	95.0
Cash and Equivalents	5.0
Australia	1.8
BHP (ADR)
Belgium	2.6
Anheuser-Busch InBev (ADR)
Canada	3.0
Barrick Gold
Rogers Communications Cl B
Denmark	2.0
Novo Nordisk (ADR)
Finland	1.0
Nokia (ADR)
France	9.7
BNP Paribas (ADR)
LVMH Moet Hennessy Louis Vuitton (ADR)
Sanofi-Aventis (ADR)
Total (ADR)
Germany	2.1
SAP (ADR)
Hong Kong	3.4
Esprit Holdings (ADR)
Sun Hung Kai Properties (ADR)
Ireland	1.5
CRH (ADR)
Italy	1.4
Eni (ADR)
Japan	14.0
Canon (ADR)
Fanuc (ADR)
Hoya (ADR)
Mitsubishi Estate (ADR)

Japan (cont.)
Nomura Holdings (ADR)
Sumitomo Mitsui Financial Group (ADR)
Yahoo Japan (ADR)
Netherlands	1.1
Heineken (ADR)
Singapore	1.6
Singapore Telecommunications (ADR)
Sweden	1.7
Assa Abloy (ADR)
Switzerland	15.2
Credit Suisse Group (ADR)
Nestle (ADR)
Novartis (ADR)
Roche Holdings (ADR)
UBS (ADR)
Xstrata (ADR)
Zurich Financial Services (ADR)
United Kingdom	33.2
BAE Systems (ADR)
Barclays (ADR)
BG Group (ADR)
BP (ADR)
British American Tobacco (ADR)
GlaxoSmithKline (ADR)
HSBC Holdings (ADR)
Imperial Tobacco Group (ADR)
Lloyds TSB Group (ADR)
Prudential (ADR)
Tesco (ADR)
Tullow Oil (ADR)
Unilever (ADR)
Vodafone Group (ADR)
William Morrison Supermarket (ADR)

1. Investment characteristics are based upon a portfolio that represents the proposed investment for a fully discretionary account. Source: Lazard, MSCI, Standard & Poor’s.
2. The allocations mentioned are based upon a portfolio that represents the proposed investment for a fully discretionary account. Allocations are subject to change.
3. The allocations and specific securities mentioned are based upon a portfolio that represents the proposed investment for a fully discretionary account. Allocations and security selection are subject to change. The securities mentioned are not necessarily held by Lazard for all client portfolios, and their mention should not be considered a recommendation or solicitation to purchase or sell these securities. It should not be assumed that any investment in these securities was, or will prove to be, profitable, or that the investment decisions we make in the future will be profitable or equal to the investment performance of securities referenced herein. There is no assurance that any securities referenced herein are currently held in the portfolio or that securities sold have not been repurchased. Please note that cash is not viewed as a strategic asset class.

International stock markets were volatile, but finished the first quarter of 2010 slightly higher amid the continuing global economic recovery. During the period, investors witnessed many developments, including intensifying sovereign default risk in Europe, tightening credit conditions in China, monetary policy tightening in Australia and India, proposals to overhaul the financials sector, and landmark health care legislation in the United States.

European markets declined amid continuing concerns over the possible repercussions of the debt crisis in Greece, despite the European Union’s proposed solution. Furthermore, concerns remained about possible contagion should the situation in Greece deteriorate. Overall, U.S. equities performed well amid the improving economic outlook, while most Asian markets were also higher on continued economic resilience. Australian markets benefited from the strong demand for raw materials, and Japan, which ramped up its quantitative easing measures, also rose during the period.

Information technology was the best-performing sector during the quarter, thanks to resilient demand for consumer electronics. Industrials and materials were also among the better-performing sectors, benefiting from the continued economic recovery. The traditionally defensive utilities and telecom services sectors, however, were among the worst performers, as investors favored cyclical sectors during the quarter.

In currency markets, the U.S. dollar strengthened relative to European currencies due to the relative strength in the U.S. economy and the deteriorating situation in Greece. The U.S. dollar, however, weakened relative to the Australian dollar due to the increasing interest rate differential.

The International Equity Select ADR strategy finished the quarter with a positive performance, but slightly underperformed the MSCI EAFE Index. In the financials sector, a French bank was weak amid regulatory concerns, while an insurance company declined due to its large potential purchase of a life insurance business unit, which would require a large share issue. In the consumer staples sector, a branded and packaged consumer goods company declined during the quarter due to profit-taking following the sharp appreciation of the stock in 2009. A defense and aerospace company in the industrials sector, which declined due to concerns surrounding the defense budgets of the United Kingdom and the United States, hurt the strategy’s performance as well.

Conversely, the strategy benefited from no holdings in the utilities sector, which declined as investors rotated into more cyclical industries. Stock selection in the consumer discretionary sector helped returns as well. A clothing retailer and a luxury goods group both appreciated due to optimism that the improving economy would further lift the companies’ sales.

Equity securities will fluctuate in price; the value of your investment will thus fluctuate, and this may result in a loss. Securities in certain non-domestic countries may be less liquid, more volatile, and less subject to governmental supervision than in one’s home market. The values of these securities may be affected by changes in currency rates, application of a country’s specific tax laws, changes in government administration, and economic and monetary policy.

Certain information included herein is derived by Lazard in part from an MSCI index or indices (the “Index Data”). However, MSCI has not reviewed this product or report, and does not endorse or express any opinion regarding this product or report or any analysis or other information contained herein or the author or source of any such information or analysis. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any Index Data or data derived therefrom. The MSCI Index Data may not be further redistributed or used as a basis for other indices or any securities or financial products.