LAZARD PATRIMOINE
OPPORTUNITIES SRI

Dynamic asset allocation

The Sub-fund's assets are allocated on a discretionary basis to optimise the portfolio's balance between risk and return, with a dynamic portfolio allocation as part of a tactical approach taking into account changes over the short and medium-term (horizon of a few weeks and a few months respectively).

Medium-term tactical adjustments are based on our fundamental analysis of the global economic cycle, growth in the main geographical regions, and the valuation of the different asset classes and markets. The aim is to generate returns by taking advantage of relative changes in situation in the different asset classes (equities, fixed-income, credit, forex). Short-term tactical adjustments are based on an analysis of the different risks that can impact the behaviour of the assets in the short term.

These two tactical management approaches, involving a short- and medium-term horizon, are complementary and decorrelated.

SRI management

The sub-fund promotes environmental and/or social characteristics within the meaning of Article 8 of Regulation (EU) 2019/2088 (the “SFDR”).

The Sub-Fund is managed in accordance with the principles of the SRI label defined by the French Ministry of the Economy and Finance. The inclusion of environmental, social and governance (ESG) criteria influences the analysis of portfolio companies, stock selection and weighting.

ESG analysis is based on a proprietary model shared by the teams in charge of financial management in the form of an internal ESG grid. Based on the various data provided by our ESG partners (non-financial analysis agencies, external service providers, etc.), annual reports and reports on the social responsibility (CSR) of each company and direct exchanges with them, the analysts responsible for monitoring each stock draw up an internal ESG rating based on a quantitative and qualitative approach. This ESG rating takes into account the companies' main negative impacts in terms of sustainability, or Principal Adverse Impacts (carbon emissions, energy consumption, water consumption, waste production) and the risks likely to affect their own sustainability, or Sustainability Risks (regulatory and physical risks, reputational risk through, among other factors, monitoring of controversies).

The information relating to the main negative impacts on the sustainability factors is published in the periodic SFDR reports of the Sub-Fund.

Each E, S and G pillar is rated from 1 to 5 (5 being the best rating) based on at least ten relevant key indicators per dimension. The company's overall ESG rating summarises the scores for each pillar according to the following weighting: 30% for Environment and Social and 40% for Governance. ESG ratings are directly integrated into the valuation models used by the equity teams.

The proportion of issuers covered by an ESG analysis in the portfolio must be at least 90%, excluding bonds and other debt securities issued by public or quasi-public issuers and cash held on an ancillary basis, and social impact assets (which are therefore capped at 10% of total assets).

As part of SRI management, the following impact indicators are reported at least once a year:

• • Environmental criterion:
  •   - Carbon footprint
  •   - Carbon emissions reduction initiatives
• • Social criterion:
  •   - % of women in senior management positions
• • Human rights criterion:
  •   - % of signatories to the United Nations Global Compact
• • Governance criterion:
  •   - % of independent directors

REMINDER OF RISKS FOR INVESTORS

Risk of capital loss: There is no guarantee of the Sub-fund's performance or protection of capital. As such, the investor may not get back the full amount of the initial investment during redemption.
Risk related to discretionary management: Discretionary management is based on anticipation of market trends. The Sub-fund’s performance is dependent both on the selection of securities and UCI picked by the manager and the manager’s asset allocation. There is therefore a risk that the manager will not select the best performing securities and that the asset allocation is not optimal.
Equity risk: Share price fluctuations may have a negative impact on the Sub-fund’s net asset value. The Sub-fund’s net asset value may decrease during periods in which the equity markets are falling.
Market capitalisation risk: The volume of small- and mid-cap stocks traded on the stock market is lower than that of large caps, which means they can be more significantly impacted by market movements than large caps. The Sub-fund's net asset value may decline quickly and sharply.
Emerging country risk: The operational and supervisory standards applicable to emerging markets may differ from those on international markets, as a result there is a risk that this may affect the Sub-fund's net asset value.
Foreign exchange risk: The Sub-fund may invest in securities and other UCI that in turn are authorised to acquire instruments denominated in currencies other than the fund's base currency. The value of these instruments may fall if the exchange rates vary, which may lead to a decrease in the Sub-fund’s net asset value. Where units (or shares) denominated in a currency other than the fund's base currency have been hedged, the foreign exchange risk is residual as a result of systematic hedging, potentially leading to a performance gap between the different units (or shares).
Liquidity risk: The risk that a financial market cannot absorb transaction volumes due to trading volumes being too low or pressure on the markets. Such a situation may impact the pricing or timing when the Sub-fund liquidates, initiates or modifies positions and thus cause a decline in the Sub-fund’s net asset value.
Derivative financial instrument risk: The risk arising from the Sub-fund's use of forward financial instruments (derivatives), which may lead to a bigger decrease in the net asset value than on the markets or in the underlying assets in which the Sub-fund has invested.
Counterparty risk: This type with one or more counterparties potentially exposes the Sub-fund to a risk of insolvency of one or more of these counterparties, which could lead to default on payment and cause a decrease in the Sub-fund's net asset value.
Risk related to overexposure: The Sub-fund may use forward financial instruments (derivatives) to generate overexposure and thus bring the Sub-fund’s exposure above its net asset value. Depending on the transactions, the impact of a decrease (purchase of exposure) or increase (sale of exposure) in the derivative’s underlying instrument may be amplified and thus amplify any decrease in the Sub-fund’s net asset value.
Sustainability risk: Any environmental, social or governance event or situation that, if it occurs, could have an actual or potential negative impact on the value of the investment. Specifically, the negative effects of sustainability risks can affect issuers via a range of mechanisms, including: 1) lower revenues; 2) higher costs; 3) damage or impairment of asset value; 4) higher cost of capital; and 5) fines or regulatory risks. Due to the nature of sustainability risks and specific issues such as climate change, the likelihood of sustainability risks impacting returns on financial products is likely to increase in the longer term.
ESG investment risk and methodological limitations: Extra-financial criteria can be integrated into the investment process using data provided by external providers or directly reported by our analysts, notably in our proprietary ESG analysis grid. Data may be incomplete or inaccurate due to the lack of international standards or systematic verification by external third parties. It can be difficult to compare data because issuers do not necessarily publish the same indicators. The unavailability of data may also force management not to include an issuer in the portfolio. The management company may therefore exclude securities of certain issuers for extra-financial reasons, regardless of market opportunities.

DISCLAIMER

This is a marketing communication and is not intended to constitute investment advice.
Lazard Patrimoine Opportunities SRI is a sub-fund of Lazard Multi-Assets, a French open-ended investment company with variable capital (Société d’investissement à capital variable) authorized and regulated as UCITS by the Autorité des marchés financiers and managed by Lazard Frères Gestion SAS.

Copies of the full Prospectus, the relevant Key Information Documents (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs Regulation) and the most recent Report and Accounts are available in English, French and other languages where appropriate, on request from the address below and visible on Lazard frères Gestion’s website. Investors and potential investors should read and note the risk warnings in the Prospectus and relevant PRIIPS KID. Investment decisions should be based on review of all fund documentations, final investment decisions should not be made based on this communication alone.
Additional information about Lazard Frères Gestion ESG policy is available under the following link Our approach - Lazard Frères Gestion - France (EN) or on Lazard Frères Gestion website. Lazard Freres Gestion reserves the right to withdraw this fund from marketing at any time and without notice. The fund is actively managed.

Past performance is not a reliable indicator of future results. The value of investments and the income from them can fall as well as rise and you may not get back the amount you invested. Any yield quoted is gross and is not guaranteed. It is subject to fees, taxation (particularly where presented gross of fees and taxes, which is specifically relevant for retail clients with Belgian residence) and charges within the Fund and the investor will receive less than the gross yield. There can be no assurance that the Fund's objectives or performance target will be achieved. Any views expressed herein are subject to change.

For any information about how to subscribe or redeem, please contact your Financial Advisor or the Lazard representative at the details below. Subscriptions may only be based on the current prospectus.
The net asset values (NAVs) are published daily on the website www.fundinfo.com and on the website of the management company.
The returns from your investment may be affected by changes in the exchange rate between the Fund's base currency, the currency of the Fund's investments, your share class and your home currency.
The tax treatment of each client will vary, and you should seek professional tax advice.
The investor rights document is available under the following link Legal information - Lazard Frères Gestion - France (EN) (lazardfreresgestion.fr).
For any complaints, please contact the representative of the LFM, LAM, or LFG office for your country. In addition, you can lodge a complaint or appeal with the Financial Ombudsman (North Gate II, Boulevard du Roi Albert II, n° 8, bte.2, 1 000 Brussels, Tel: +32 2 545 77 70, Ombudsman@OmbudsFin.be, www.ombudsfin.be).
The contents of this document are confidential and should not be disclosed other than to the person or persons for whom it is intended.