OBJECTIFDIVIDENDESMIN VAR

VALENCIA | OCTOBER 2016

LAZARD FRÈRES GESTION

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www.lazardfreresgestion.es

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Lazard Frères Gestion

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The opinion expressed above is up to date as of the time of this presentation and is likely to change.

The stocks presented above may not be present in the portfolio.

Quotes

We will fulfill the price stability mandate given to us.

But if other actors do not take the necessary measures

in their policy domains, we may need to dive deeper into

our operational framework and strategy to do so.”

27 August 2016

Benoît Cœuré

German multinational Henkel and French drugmaker

Sanofi are set to pay, pardon collect, a yield of minus

0.05% on new issues of short-dated bonds. The German

household products is set to sell €500 million of two-

year bonds that yield negative 0.05 percent, while Sanofi

will be paid to issue three-year debt.”6 September 2016

The result for the first quarter is below our expectations

(…) we had to cope with significant strains on our

investment result. ”

10 May 2016

CFO Jörg Schneider

Do you know the only thing that gives me pleasure? It’s

to see my dividends coming in. ”

21 January 2016 - Tryg - Q4 2015 Investor presentation

John D. Rockefeller (1839 – 1937)

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Management process (1/2)

Innovative approach to reduce volatility and optimise the return

Portfolio construction

I N V E S T M E N T U N I V E R S E

Eurozone equities (>75%)

Around 6,000 stocks | All sectors | All capitalisations

MINIMUM VARIANCE APPROACH

FINANCIAL ANALYSIS

DIVIDENDFILTER

Proprietary model

Lazard

Selection of stocks with sustainable and

growing dividends

Ex ante target volatility at

least 30% lower than

the volatility of the Euro Stoxx

Around 850 stocks

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Management process (2/2)

Innovative approach to reduce volatility and optimise the return

Propretary models

OPTIMISED

PORTFOLIO

Around 60 stocks

Discretionary validation of stocks and their weightings by the manager under a double constraint

Return ratio

Portfolio volatility reduced

Liquidity of stocks

Daily portfolio adjustment

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Performance drivers

Quarterly development: Increase Reduction

We recommend that the investor divide his holdings between high-grade bonds and leading common stocks.”

Benjamin Graham

Volatility

killers

Performance

enhancers

31,6%

65,6%

▲

▼

Source: Lazard

Portfolio excluding cash as of June 30th, 2016

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-30%

-25%

-20%

-15%

-10%

-5%

0%

Aug-13 Aug-14 Aug-15 Aug-16

Drawdown Euro Stoxx Drawdown Objectif Dividends Min Var

Drawdown analysisThe minimum variance approach aims to reduce downward trends

Maximum drawdown: Objectif Dividendes Min Var -16,5% (reached on 11th feb. 2016) | Euro Stoxx nd: -25,9% (reached on 11th feb. 2016)

Source: Lazard

Change of management of Objectif Dividendes Min Var on July 31st, 2013

As of August 31st, 2016

Drawdown on a daily basis

Upcapture and downcapture as of July 31st, 2016 on a monthly basis

Past performance is not a guarantee of future performance

These performances are only indicative and are measured at the end of the recommended investment period

52,7%

81,7%

UPCAPTURE

DOWNCAPTURE

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88

90

92

94

96

98

100

102

01/06/2016 07/06/2016 13/06/2016 19/06/2016 25/06/2016 01/07/2016

Objectif Dividendes Min Var Euro Stoxx nd

Brexit

Outperformance

Performance during the month of June(base 100 as of June 1st, 2016)

Past performance is not indicative of future performance.

The above performance data is for information purposes only and should be assessed over the recommended investment period.

Only one holding listed in United Kingdom | Portfolio weight: 0,6%

Source: Lazard

As of August 31st, 2016

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-2,9%

15,0%13,8%

0,8%

12,2%

9,7%

-3,5%

10,3%

4,1%

-1,8%

8,2%

10,2%

2016 YTD 2015 2014 1 year 3 years 5 years

Objectif Dividendes Min Var Euro Stoxx nd

(1) On a weekly basis

Source Morningstar: Comparison universe including open-end funds distributed in Europe, referenced in the Morningstar database at the calculation

date in the category Eurozone Large-Cap Equity, priority to the institutional share class.

Past performance does not guarantee future performance.

These performance data are provided for information purposes only and should be assessed over the recommended investment period.

Performances and risk ratios

Sources: Lazard, Morningstar

Performance as of August 31st, 2016

1st quartile

106 / 456

Overall

1st quartile

43 / 439

1st quartile

2 / 426

1st quartile

52 / 447

1st quartile

5 / 422

2nd quartile

158 / 394

Risks1 Standard deviation TrackingInformation ratio Beta Alpha

Fund Index error

1 year 13,6% 19,0% 8,0% 0,32 0,67 1,68

3 years 13,0% 17,5% 6,6% 0,56 0,70 5,99

-30%

ANNUAL PERFORMANCE ANNUALIZED PERFORMANCE

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Conclusion

OBJECTIF DIVIDENDES MIN VAR

Fund Manager/Analyst model

Management based on stock picking

Proprietary fundamental analysis

Continuous monitoring through the process

The dividend yield, a key component of performance

This yield by itself does not provide protection

Minimum Variance approach to limit drawdowns

Search for performance through financial analysis

EQUITY RESEARCH

Lazard Frères GestionINVESTMENT STRATEGY

Min Var Dividends

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1 2 3 4 5 6 7

Recap of the risks of Objectif Dividendes Min Var

As the mutual fund provides no guarantee, it follows market fluctuations which means the capital invested may not be recovered.

Risk of capital loss: The mutual fund may not achieve its objectives and the investor may not recover the capital invested.

Risk linked to discretionary management: The mutual fund's performance will depend on the companies that the manager chooses. There is a

risk that the manager may not select the best performing companies.

Risk linked to equity markets: Equity market fluctuations may lead to significant changes in the net asset value that may have a significant

negative impact on the performance during an undefined period. Accordingly, the mutual fund's net asset value is likely to decrease if equity

markets fall. The mutual fund is exposed to companies whose capitalisation size < be small. These companies may present risks for investors

because of their specific features.

Counterparty risk: This is the risk linked to this mutual fund's use of forward financial, over-the-counter instruments, and/or the use of

transactions of temporary purchases and sales of securities. These transactions entered into with one or several eligible counterparties potentially

expose the mutual fund to a risk that one of these counterparties may default, which may lead to a payment default.

Interest rate risk: The part of the portfolio invested in fixed income instruments may be affected by upward or downward movements in interest

rates. When long-term interest rates rise, bond prices fall. These movements may lead to a decrease in the net asset value.

Credit risk: This is the possible risk of a deterioration in the issuer's credit quality that may have a negative impact on the price of the security

and therefore on the mutual fund's net asset value.

Currency risk: The mutual fund may hold securities or funds denominated in a currency other than the euro. Fluctuations in the euro against

another currency may reduce the mutual fund's net asset value.

Risk scale:

The exposure to the equity market explains the UCITS' ranking in this category. The historical data used may not give a reliable indication of the

UCITS' future risk profile. Nothing guarantees that the category in question will remain unchanged, and the ranking is likely to change over time.

The lowest category is not synonymous with a risk-free investment. The capital is not guaranteed.

For more information on the product features, please refer to the prospectus available on the website

www.lazardfreresgestion.fr or from our company on request

Appendices

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Dividends Min Var TeamEuropean equities

Distinctive Fund Manager/Analyst model, enhancing reactivity

9years average experience

at Lazard Frères Gestion

9Fund managers/analysts

and 3 portfolio manager assistants

16years average experience

in financial markets

An

aly

sis

Man

agem

ent

Integration of our in-house fundamental research

Large Caps analysis Small Caps analysisHead of Equity

Management & Research

Régis

Bégué

Scander

Bentchikou

Axel

Laroza

Stanislas

Coquebert de

Neuville

Thomas

Brenier

Arnaud

Brossard

Jean-François

Cardinet

James

Ogilvy

Annabelle

Vinatier

Retail

Capital goods

Technology

Building

materials

Alpha Europe

SRI Euro

Equity

Expansion

Materials and

basic resources

Semiconductors

Information

technologies

Core Large

Caps Euro

Equity

Expansion

Health care

Utilities

Media

Core Large Caps

Euro

Alpha Euro

Alpha Monde

Banks

Insurance

Real estate

Dividendes Min Var

Recovery Eurozone

Real Estate

Chemicals

Food and

beverage

Consumer goods

Core Large

Caps Euro

Recovery

Eurozone

Automotive

Oil support

services

Telecoms

Nordic Large

Caps

Nordic Small

Caps

All sectors

Micro Caps Euro

Small Caps Euro

Small Caps France

Mid Caps Europe

PEA-PME

This organizational chart is valid as at the date of this brochure, regularly updated information is available

online at www.lazardfreresgestion.fr or on request from our offices.

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What makes us stand out

Management based on stock selection

Fund Manager/Analyst model

Continuous monitoring through the investment process

Proprietary fundamental analysis

$11.1 Bn

Lazard | European Equities AuM

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Lazard Frères GestionAwarded for 7 years in a row

2010 2011 2012 2013 2014 2015 2016

Lazard Frères Gestion is the only asset management company to stay in the top 10 for 7 years in a row

Europerformance Awards –Alpha League Table

Ranking of French asset managers based on risk-adjusted performance*

7th 1st2nd 3rd 6th 4th 5th

Source: European Funds Trophy / EuroPerformance – a SIX Company, December 2015

* Methodologies are available from the organisers

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Disclaimer

This document is non contractual and is being provided solely by way of information.

It presents analyses and descriptions prepared by Lazard Frères Gestion SAS on the basis of general information and statistics obtained from public

sources.

These analyses and descriptions are provided solely by way of indication, and do not constitute a guarantee as to future performance. Their

interpretation may vary according to the methods used. Moreover, the instruments and securities referred to in this document are subject to market

fluctuations, and therefore no guarantee can be given as regards their performance and evolution in the future.

The analyses and descriptions contained in this document shall not be interpreted as being advice or recommendations on the part of Lazard Frères

Gestion SAS. This document does not constitute an offer or invitation to purchase or sell, nor an encouragement to invest in any of the instruments or

securities referred to herein.

Management methods presented in this document do not constitute an exclusive approach and Lazard Frères Gestion SAS reserves the right to use any

other method which it deems appropriate. The presentations are the intellectual property of Lazard Frères Gestion SAS.

Moreover, some of the services and investments referred to in this document can present particular risks, and they are not therefore necessarily adapted

to all investors.

Therefore, all persons must assess independently the risks attached to the services and/or investments. With regards to the services and/or products

referred to in this document, all investors shall refer to the conditions offered by Lazard Frères Gestion SAS to its clients.

Moreover, any person wanting to invest in the undertakings for collective investment in transferable securities (UCITS) mentioned in this document is

required to consult the prospectus approved by the French AMF (“Autorité des Marchés Financiers”) that is provided to all subscribers and which is

available on simple request from Lazard Frères Gestion SAS. The information contained in this document has not been independently verified or

audited by the statutory auditors of the UCITS concerned.

The financial and legal nature of the information provided is for informational purposes and hence does not constitute/represent an opinion. The reader

is strongly advised to submit these views to a competent and dedicated office of consultants, specialised in the field of law/fiscal prior to any

application.