Annualized Returns
Name 3-Month YTD 1-Year 3-Year 5-Year 10-Year Since Inception (%; Gross of fees) (06/01/2004) Lazard Emerging Markets Equity Select ADR - SMA 7.6 -15.9 -15.9 20.6 3.1 N/A 14.7 (%; Net of fees) Lazard Emerging Markets Equity Select ADR - SMA 6.8 -18.4 -18.4 17.0 0.0 N/A 11.3 MSCI Emerging Markets Index 4.4 -18.4 -18.4 20.1 2.4 N/A 13.1
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 Emerging Markets Index
Number of Securities		43			810
Current Dividend Yield (%)		3.4			2.1
Average Weighted Market Cap ($ billions)		23.1			38.0
Turnover – Trailing 12 Months (%)		32.6			N/A

Characteristics

Equity	97.4
Cash and Equivalents	2.6
Argentina	4.1
Banco Macro Bansud (ADR)
YPF Spon ADR
Brazil	22.4
Banco Do Brasil (ADR)
Cemig (ADR)
Cielo (ADR)
Companhia de Bebidas das Americas (Spon ADR)
Siderurgica Nacional (Spon ADR)
Ultrapar Participacoes (ADR)
Usiminas (ADR)
Vale (ADR)
China	5.4
China Construction (ADR)
NetEase.com (ADR)
Weichai Power Co Ltd - Unsp ADR
Egypt	4.3
Commercial International Bank (ADR)
Orascom Construction Industries ADR
India	2.2
Infosys Technologies (ADR)
Indonesia	9.6
Bank Mandiri (ADR)
Semen Gresik (ADR)
Telekomunik Indonesia (ADR)
United Tractors (ADR)
Mexico	10.2
America Movil (ADR; Ser L)
Desarrolladora Homex (ADR)

Mexico (cont.)
Femsa (ADR)
Grupo Televisa (ADR)
Kimberly-Clark de Mexico (ADR)
Philippines	2.9
Philippine Long Distance Telephone (ADR)
Russia	5.9
Mobile Telesystems (ADR)
Oriflame Cosmetics (ADR)
South Africa	17.5
Bidvest Group Ltd - Spons ADR
Kumba Iron Ore (ADR)
Massmart Holdings (ADR)
Nedbank Group (ADR)
Pretoria Portland Cement (ADR)
Sanlam (ADR)
Shoprite Holdings (ADR)
Standard Bank Group (ADR)
Tiger Brands (ADR)
South Korea	2.5
Shinhan Financial Group (ADR)
Taiwan	3.6
Advanced Semiconductor Engineering (ADR)
Taiwan Semiconductor Manufacturing (ADR)
Turkey	6.9
Akbank (ADR)
Koc Holding (ADR)
Turkcell Iletisim Hizmetleri (ADR)

1. Investment characteristics are based upon a portfolio that represents the proposed investment for a fully discretionary account. Source: Lazard, MSCI.
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.

Share prices experienced mixed performance across the developing world in the first quarter of 2011. Following two years of a powerful rebound, in which investors felt comfortable adding to their holdings based upon the higher economic growth prospects, the environment suddenly changed. The strong demand had created inflationary pressures which appeared to frighten investors from the asset class in January and February, and, coupled with uprisings in several Middle Eastern countries, led to underperformance compared to developed markets. Due in part to the Japanese earthquake in March, emerging markets equities then outperformed equities in the industrialized countries. The MSCI Emerging Markets Index increased by a little over 2% over the quarter, as shares in Eastern Europe rose dramatically more than in Asia or, especially, Latin America.

Latin American markets witnessed mixed fortunes over the quarter. Argentinean, Chilean, and Peruvian shares were the worst performers, hurt by concerns over corporate issues in the former and Presidential candidate Humala moving into the lead in the Presidential election in the latter. Helped by robust commodity prices, Brazilian shares rose modestly. Mexican shares were relatively lackluster, despite better economic performance by its dominant trading partner, the United States.

A significant variation in performance also occurred in Asian markets over the quarter. South Korean shares, in particular automobile and electronics stocks, appeared to benefit from competitive opportunities following the Japanese earthquake. Despite inflationary worries, Indonesian equities rebounded strongly. Thai and Malaysian stocks also rallied, helped by impressive economic performance. High inflation and government scandals had an adverse effect on Indian shares. Taiwanese stocks, following a strong period, suffered from a quarter-end collapse in technology.

Apart from Turkey and Egypt, impressive performance was registered across most of Eastern Europe, the Middle East, and Africa. Share prices rose sharply in Russia as crude oil prices moved decisively higher. Equities in Hungary and the Czech Republic recovered on less persistent concerns over the condition of the European Union. Elsewhere, the weakest markets were in Turkey, where the central bank applied unorthodox monetary policy, and in Egypt, which experienced an extraordinary uprising, ultimately ending the rule of President Hosni Mubarak.

Due to the strong oil price, energy was by far the best performing sector for the quarter. The health care, information technology, consumer staples, industrials, and financials sectors were the weakest performers over the quarter.

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. Emerging market securities carry special risks, such as less developed or less efficient trading markets, a lack of company information, and differing auditing and legal standards. The securities markets of emerging market countries can be extremely volatile; performance can also be influenced by political, social, and economic factors affecting companies in emerging market countries.

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.