Glif citywire presentation 2013 bq final
Upcoming SlideShare
Loading in...5
×
 

Glif citywire presentation 2013 bq final

on

  • 1,277 views

 

Statistics

Views

Total Views
1,277
Views on SlideShare
1,060
Embed Views
217

Actions

Likes
0
Downloads
12
Comments
0

5 Embeds 217

http://www.citywire.co.uk 151
http://citywire.co.uk 46
http://shakespeare.cw-london.co.uk 8
http://shakespeare 6
http://m.citywire.co.uk 6

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Glif citywire presentation 2013 bq final Glif citywire presentation 2013 bq final Presentation Transcript

  • Lazard Global Lis Infrastructure sted Octobe 2013 er For Professional Investors Only l
  • Warren Buffet Claimed... W B ff t Cl i d “…the perfect investment is an inflation-linked bond with rising cou upons”… An investment combining a low risk of capital los with robust inflation protection and real growth ss For Professional Investors Only l 1 Lazard Asset Management
  • Expected Risk and R t E t d Ri k d Return Expected Return Alternatives Preferred Infrastructure Fixed Income Listed Equities Real Assets: Real Estate, Infrastructure e Cash Expected Volatility Invest in assets w which feature:  Long duration  Inflation-linking  Low risk of capit loss tal only. For illustrative purposes only Expected returns do not represent a promise or guarantee of future results and are subject to change. For Professional Investors Only l 2 Lazard Asset Management
  • Diversification Benefits Correlation – 1 Y C l i Year R lli Rolling 1.2 12 1.0 0.8 0.6 0.4 0.2 02 0.0 -0.2 -0.4 -0.6 -0 8 0.8 -1.0 Aug Dec Apr Aug Dec Apr Aug Dec Apr Aug Dec Apr Aug Dec Apr Aug Dec Apr Aug 2007 2007 2008 2008 2008 2009 2009 2009 2010 2 2010 2010 2011 2011 2011 2012 2012 2012 2013 2013 Lazard Global Listed Infrastructure (GBP Hedge) - Gross v MSCI World Index (Local) Lazard Global Listed Infrastructure (GBP Hedge) - Gross v Citigroup World Government Bond Index All Maturities (Local) As of 30 September 2013 Attribution is based upon a representative portfolio of the Global Listed Infrastructure GBP Hedge strategy and is versus the benchmark noted. Attribution analysis is provided for Infrastructure-GBP s illustrative purposes only, as values are calculated based on daily returns gross of fees. Performance would be lo ower if fees and expenses were included. Past performance is not a reliable indicator of future results. Source: Lazard, USB, MSCI, Citigroup For Professional Investors Only l 3 Lazard Asset Management
  • Inflation P t ti Att ib t I fl ti Protection Attributes of Preferred Infrastructure fP f dI f t t All companies in Lazard’s Preferred Infrastructure Universe have either explicit or implicit inflation p p p linkage in their revenues GLIF Sector CPI Linkage % of CPI Mechanism UK/EUR/Aust Utilities Explicit 100% CPI x RAB Airports Explicit 100% CPI x RAB Toll Roads Explicit +/-100% Toll x (1+CPI) Japan/US Utilities Implicit N/A Nominal Return Japan/US Railroads Implicit N/A Nominal Return Note: RAB = Regulated Asset Base For Professional Investors Only l 4 Lazard Asset Management
  • Dividend Yield Di id d Yi ld Sector Average: 4.37% Max:7.57% Min: 1 1.75% Spark Infrastructure (SKI): 6.5% dividend yield Regulated Asset Base (RAB) $10.0 $ billions $8.0 $6.0 $4.0 $2.0 $0.0 ETSA Citipower p Powercor 20 15 10 5 0 2006 2007 2008 2009 2010 2011 2012 As of 30 September 2012 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 i fi bl l h investment performance of securities referenced h i f f ii f d herein. Source: Lazard forecasts based on Spark Infrastructure Fact Book and AER regulatory determinations For Professional Investors Only l 5 Lazard Asset Management
  • Forecastability: y Stability of Earnings in Times of U Uncertainty Consensus Earnings Per Share 2009e (Rebased to 100 at 31 December 2007) 120 Lazard Global Listed Inf ras structure (AUD Hedge) ex-trusts MSCI World Index 110 100 90 80 70 60 50 40 30 Dec-07 Mar-08 Jun-08 Sep-08 Dec -08 Mar-09 Jun-09 Sep-09 Dec-09 During the recent period of economic uncertainty Preferred Infrastructure company earnings have y demonstrated significantly higher levels of def fensiveness relative to general equities (MSCI). *Data shown for global financial crisis, 31 December 2007 – 31 January 2010. All estimates are based on 31 January 2010 data as reported in March 2010, and are subject to change. Estimates based on historical financial accounts of companies held in the strategy. Lazard Global Listed Infrastructure strategy IG, Note: Global Listed Infrastructure strategy using current market cap weights, and ex-trusts (CEU, MAP, MCG, MI TCL) Source: Lazard, Bloomberg, Reuters, UBS, IBES For Professional Investors Only l 6 Lazard Asset Management
  • Not N t All I f t t Infrastructure is Created E i C ted Equal l Sandow power plant -TXU, Texas, USA Port Washington power plant, Wisconsin, USA Two power plants operators.... but two very different inve estment propositions Key Investment Characteristics Key Investment Ch r t ri ti K In tm nt Characteristics • Subject to market spot price and volume risk • Poor cash flow visibility • Known revenues and profitability: 12.7% p.a. return on equity • Unpredictable revenues • No commodity exposure, no operational risk y p p What Happened? • Long term lease: 25 years • Largest buy-out in history, $35 bn debt being restructured, equity providers to lose substantially all investment • Solid legal protection • “In tennis parlance, this was a major unforced error”* • It delivers 12.7% p.a. return, every year over 25 years What Happened? pp As of 31 December 2012 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 p profitable or equal to the investment p q performance of securities referenced herein. There is no assurance that any securities referenced herein are currently held in the portfolio or that y y p securities sold have not been repurchased. Source: Wisconsin Energy, Luminant *Berkshire Hathaway: W. Buffet, Letter to Berkshire Hathaway shareholders, 2011 For Professional Investors Only l 7 Lazard Asset Management
  • Not N t All I f t t Infrastructure is Created E i C ted Equal… l We believe a strict adherence to our Preferred Infrastructure investment philosophy is critical to delivering on the attractive characteristics of infrastructure. Preferred Non-Preferred Regulated Utility (e.g., Southern Company, Severn Trent) Merchant Electricity Generator (e.g., E.On; Exelon) p y  Monopoly-like assets  Competitive markets  Regulated return  Commodity price volatility  Explicit/implicit inflation pass through  High fixed cost structure = Stable, consistent pattern of return Stable = Volatile, uncertain pattern of return Other examples…  Toll roads  Construction companies, road services  Airports  Airlines, baggage handling  Broadcast towers  Telecommunication service companies  OECD countries ti  E Emerging/Developing countries i /D l i ti The securities identified are not necessarily held by Lazard Asset Management and should not be considered a recommendation or solicitation to purchase or sell these securities. For Professional Investors Only l 8 Lazard Asset Management
  • Global Listed Infrastructure Resources Gl b l Li t d I f t t Global Listed Infr rastructure Team John Mulquiney q y PM/Analyst Sydney 20 stocks Joined 2005 Warryn Robertson y PM/Analyst Sydney 14 stocks Joined 2001 Bertrand Cliquet PM/Analyst London 20 stocks Joined 2004 Matthew Landy PM/Analyst New York 23 stocks Joined 2005 Currency Hedging Professionals based in: London, New York, Chicago, San Francisco, Sydney, Toronto, Montreal, Tokyo, Hong Kong, Bahrain and Frankfurt • New York • Frankfurt • London • Seoul Global T Trading Sydney Edward Keating g Client Portfolio Manager New York Joined 2001 Global Research Resources Team based In New York: • Yvette Klevan PM/Analyst, Fixed Income • Jared Daniels PM/Analyst/Trader, Fixed Income Marketing & Client Service Anthony Rohrlach y Analyst Sydney 22 stocks Joined 2007 New Y York • Tokyo • Sydney Legal/Compliance London  Pre-trade compliance  International compliance skills  Established domestic compliance program Melanie McQuire Product Manager, Sydney Requirements - Global portfolio management skills; Global Equity manageme skills; Infrastructure stock analysis skills; Disciplined investment process ent Investment Team Experience – Over 60 combined years of investment ex xperience; Over 40 years of infrastructure-specific analysis and investing Stocks covered as 30 September 2013 2. Team membership is current as of the date of this document. Personnel data are calculated as of year-end 2012 YTD 2013 experience is not reflected. For Professional Investors Only l 9 Lazard Asset Management
  • Lazard Preferred Infrastruct ture Universe Value Rank by Region 60 Australia Austria Belgium 40 Canada France 20 Germany Hong Kong 0 Italy Japan -20 Mexico New Zealand Portugal -40 South Korea Spain -60 Switzerland United Kingdom -80 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 United States U it d St t The “Value Rank” illustrates the expected returns of ea stock within the Preferred Infrastructure universe. Value Rank ach universe As of 30 September 2013 *Over 3 years, assuming all stocks trade at our valuation in 3 years’ time. The opinions and estimates contained in this graph are based on current information and are subject to change. It should not be assumed that any investment was, or will be profitable. Expected returns do not represent a promise or guarantee of future results and are subject to change. Shown for illustrative purposes only. Each bar represents an indi id al stock’s e pected ret rn per annum for the ne t three years. This is based on a comparison of La ard's Global Listed Infrastructure team’s intrinsic individual expected return ann m next ears Lazard's Infrastr ct re valuation of the stock three years out, the market price of the stock today and the interim forecast dividends. For Professional Investors Only l 10 Lazard Asset Management
  • In Depth Stock Analysis Can Allow Us to Buy Cheap Società Iniziative Autostradali e S i i (SIAS) S i àI i i i A d li Servizi Estim mated EPS and Average Tariff and traffic Growth through 2016 th h 1.20 12.0% 10.0% 1.00 8.0% 6.0% 0.80 4.0% 0.60 2.0% 0.0% 0.40 ‐2.0% ‐4.0% 0.20 ‐6.0% ‐8.0% 8.0% 0.00 2011 EPS (RHS) 2012 2013E 2014E Average change in tariff (LHS) 2015E 2016E Traffic development (LHS) Group EPS to increase over 40% 201 to 2016 despite depressed traffic, 11 p p p , thanks to investment-in nduced tariff increases.  Financial leverage well below sector average and fully pre-financed through 2017 d pre financed  Disposal of Chilean business highlights 50% of m market cap – Completed June 2012 As at 30 September 2013 y y y portfolios, and should not be considered a recommendation or solicitation to purchase or sell this security. , d p y The security identified above is not necessarily held by LAM for all client p It should not be assumed that any investment in this security was, or will be profitable. ntee of future results and are subject to change. The figures above represent expected information. Expected information does not represent a promise or guaran Source: Lazard, Autocamionale della Cisa Spa For Professional Investors Only l 11 Lazard Asset Management
  • Annualised Performance Hist tory Lazard Gl b l Li d I f L d Global Listed Infrastructur C re Composite i 30 Lazard GLIF L d UBS Global 50/50 Infrastructure and Utilities Index (Local) 25.74 MSCI World Index (Local) 25 22.34 20.17 20 14.4 15 12.07 10.96 11.1 10 6.54 7.36 6.81 4.3 5 3.28 0 1 Year As of 30 September 2013 3 Years 5 Years Since Inception Strong performance and diversi ification against global equities, albeit at lower risk with a Beta of 0.6 k, Reporting currency: GBP Performance is presented gross of fees. Please refer to the attached disclosures for performance presented on a net of fee basis and for a description of this composite. The performance quoted represents past performance. Past performance is not a reliable indicator of future results. In ndex performance is shown for illustrative purposes only. Lazard Global Listed Infrastructure is not constructed against a benchmark but it does use the UBS Infrastructure and Ut tilities 50:50 Index for performance comparison purposes. Since inception number 01 Sep 2006 Source: Lazard Asset Management For Professional Investors Only l 12 Lazard Asset Management
  • Lazard Global Listed Infrastru ucture (GBP Hedge) Composite P f C i Performance S Summary Annualized 1 Month Lazard Global Listed Infrastructure (GBP Hedge) QTD YTD 1 Year 3 Years 5 Years Since Inception 01 Sep 2006 4.37 4 37 6.74 6 74 21.44 21 44 25.74 25 74 14.40 14 40 11.10 11 10 6.81 6 81 Broad Market Reference Indices Annualized 1 Month QTD YTD 1 Year 3 Years 5 Years Since Inception 01 Sep 2006 UBS Global 50/50 Infrastructure and Utilities Index (Local) 5.02 4.55 16.13 20.17 10.96 6.54 4.30 Excess Return (bps) -65 +219 +531 +557 +344 +456 +251 MSCI World Index ( SC (Local) ) 3.73 3 3 6.40 6 40 18.85 18 8 22.34 22 34 12.07 12 0 7.36 36 3.28 3 28 Excess Return (bps) +64 +34 +259 +340 +233 +374 +353 Citigroup World Government Bond Index All Maturities (Local) 0.70 0.73 0.07 0.88 2.61 4.09 3.89 Excess Return (bps) +367 +601 +2137 +2486 +1179 +701 +292 As of 30 September 2013 All data in GBP The investment objective is investor inflation (Consumer Price Index) plus 5%, over a 5-year period. Performance is presented gross of fees Please refer to the attached disclosures for performance presented on a net of fee basis and for a description of this composite The fees. composite. performance quoted represents past performance. Past performance is not a reliable indicator of future results. In ndex performance is shown for illustrative purposes only. Lazard Global Listed Infrastructure is not measured versus the performance of any benchmark. For Professional Investors Only l 13 Lazard Asset Management
  • Holdings are Undervalued Lazard Gl b l Li d I f L d Global Listed Infrastructur re Fair Value Assessment £12 21 £125 Lazard GLI: 18% discount to fair value £100 £10 00 £75 £50 £25 £0 £100 invested Lazard's Fair Value Lazard Global List Infrastructure ted The fair value of a £100 investm ment into Lazard Global Listed Infrastructure is worth approximately £121. h Which means, on 30 September 2013, our strategy was trading r at approximately a 18% discount to fair value. % Fair value of stocks held as of 30 September 2013 in GBP. only. Lazard s The information presented is theoretical and is shown for information purposes only It is based on Lazard’s assu umptions underlying the calculation of fair value as at 31 March 2012 and is subject to change should our assumptions change. The information does not represent a promise or guara antee that the stocks will achieve fair value. Source: Lazard Asset Management Pacific. For Professional Investors Only l 14 Lazard Asset Management
  • Appe endix For Professional Investors Only l
  • Holdings by Infrastructure - Sector Lazard Gl b l Li d I f L d Global Listed Infrastructur E i F d re Equity Fund Holdings H ldi Airports Aeroports de Paris Flughafen Zuerich Flughafen Wien Fraport Communications Infrastructure SES Diversified Utilities PG&E Hera Duet SP Ausnet Electricity Utilities Spark Infrastructure Terna Red Electrica Gas Utilities Enagas Snam Tokyo Gas Toho Gas Osaka Gas % of Portfolio f P tf li 18.51 3.94 10.63 7.86 14.19 Holdings H ldi Railroads CSX Corporation Norfolk Southern Corporation Tollroads Macquarie Atlas Roads Group VINCI Macquarie Korea Infrastructure Fund Atlantia Societa Iniziative Autostradali e Servizi Transurban Abertis Infraestructure ASTM Water Utilities California Water Service Group SJW Pennon Group Cash Total As of 30 September 2013. ment for a fully discretionary account. Allocations and security The allocations and specific securities mentioned are based upon a portfolio that represents the proposed investm 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 y securities sold have not been repurchased. Please note that cash is not viewed as a strategic asset. For Professional Investors Only l % of Portfolio f P tf li 7.96 26.40 26 40 6.75 3.76 100.00 16 Lazard Asset Management
  • Portfolio by Country and Se ector Stage 2 Stage 3 Stage 4 Qualitative Risk Ranking Fundamental Analysis and Value Ranking Portfolio Construction Stage 1 Initial Filtering Lazard Global Listed Infrastructure Broken Down by C Company Domicile Portfolio b S t P tf li by Sector Portfolio b C P tf li by Country t United Kingdom 2.8% United States 13.5% Water Utilities 5.4% Australia 15.1% 15 1% Switzerland 4.5% Airports 20.2% Austria 2.7% Spain 3.6% France 8.7% 8 % South Korea 1.4% Communications Infra 3.2% Toll Roads 31.8% 31 8% Diversified Utilities 10.6% Germany 8.2% Luxembourg 3.2% Japan 11.4% Railroads 7.6% Italy 24.8% Portfolio Summary: Gas Utilities 13.8% Electricity Utilities 7.3% Global Asset Diversification (Toll Roads)  29 Companies 9 Infrastructure Sectors  120+ toll road concessions  23 C Countries ti 240+ A Assets t  18 000+ k 18,000+ kms of toll roads f t ll d  14 countries As of 30 September 2013 Weights are calculated ex-cash ex cash. onary account. Allocations are subject to change. The allocations mentioned are based upon a portfolio that represents the proposed investment for a fully discretio Portfolio summary is based on underlying company assets For Professional Investors Only l 17 Lazard Asset Management
  • Financial Statistics Lazard Gl b l Li d I f L d Global Listed Infrastructur re Price to Book Dividend Yield 8 2.5 2.0 6 1.5 4 1.0 2 0.5 Jul-13 Jan-13 Jul-12 Jan-12 Jul-09 Jul-09 Jul-11 Jan-09 Jan-09 Jan-11 Jul-08 Jul-08 Jul-10 Jan-08 Jan-08 Jan-10 Jul-07 Jan-07 Jul-06 Jul-07 EBITDA Interest Cover Jan-06 Jul-13 Jan-13 Jul-12 Jan-12 Jul-11 Jan-11 Jul-10 Jan-10 Jul-09 Jan-09 Jul-08 Jan-08 Jul-07 Jan-07 Jul-06 Jan-06 - EV:EBITDA 8 10 7 6 5 4 3 2 1 As of 30 September 2013 p ategy. g y Estimates based on historical financial accounts of companies held in the Lazard Global Listed Infrastructure stra gy Statistics are calculated using an index style construction methodology. cator of future results. All estimates are based on current information and are subject to change. Past performance is not a reliable indic Source: JPMorgan and Lazard For Professional Investors Only l Jul-13 Jan-13 Jul-12 Jan-12 Jul-11 Jan-11 Jul-10 Jan-10 Jan-07 Jul-06 Jul-13 Jan-13 Jul-12 Jan-12 Jul-11 Jan-11 Jul-10 Jan-10 Jul-09 Jan-09 Jul-08 Jan-08 Jul-07 Jan-07 Jul-06 Jan-06 Jan-06 6 - 18 Lazard Asset Management
  • Preferred Infrastructure North American vs. E N hA i European Price to Earnings Ratios 25.0 23.0 21.0 19.0 17.0 15.0 15 0 13.0 11.0 Dec c-09 Jan n-10 Feb b-10 Mar r-10 Apr r-10 May y-10 Jun n-10 Jul l-10 Aug g-10 Sep p-10 Oct t-10 Nov v-10 Dec c-10 Jan n-11 Feb b-11 Mar r-11 Apr r-11 May y-11 Jun n-11 Jul l-11 Aug g-11 Sep 11 p p-11 Oct t-11 Nov v-11 Dec c-11 Jan n-12 Feb b-12 Mar r-12 Apr r-12 May y-12 Jun n-12 Jul l-12 Aug g-12 Sep p-12 Oct t-12 Nov v-12 Dec c-12 Jan n-13 Feb b-13 Mar r-13 Apr r-13 May y-13 Jun n-13 Jul l-13 Aug g-13 9.0 North American Preferred Infrastructure European Preferred Infrastructure As of 30 September 2013. ental Europe, excluding AWK; CCI & AMT, where data is not Trailing P/E ratio for Global Listed Infrastructure Fund preferred infrastructure stocks in North America & Contine meaningful. meaningful 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 portfolios n purchase or sell these securities. It should not be assumed that any investment in these securities was, or will pro to be, profitable. ove Source: Lazard. For Professional Investors Only l 19 Lazard Asset Management
  • UK I Investment Trusts vs iB xx t tT t iBox (%) 80 60 40 20 0 -20 -40 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2 IBOXX Total Return (£) HICL Infrastructure Company Ltd 3I Infrastructure Plc International Public Partner UK Investment Trust performance has been underpinned by a very favourable interest rate environment As of 30 September 2013 Past performance is not a reliable indicator of future results. 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 y securities sold have not been repurchased. The securities mentioned may not represent the entire portfolio. Source: Bloomberg For Professional Investors Only l 20 Lazard Asset Management
  • Appe endix For Professional Investors Only l
  • Global Equity Investment Res sources Regional E R i l Expertise i Multi-regional ( g (Global / EAFE) ) Eduardo Abreu Jacov Agbaba Lee Ann Alexandrakis Nigel Barrett Michael Bennett David Bliss Nicholas Bratt Irene Cheng Bertrand Cliquet Kun Deng James Donald² Ronald Dornau Laurent Douillet Yury Dubrovsky1 Beatrix Eisenblaetter Sara Fischer Louis Florentin-Lee Steven Fockens Michael Fry Gautam Garg Christopher Hartung Matthew Haynes William Holzer Peter Hunsberger Taras Ivanenko Jai Jacob Robin Jones Peter Kashanek Edward Keating Tjeert Keijzer Ian Kirwan Kipp Kjeldgaard Anthony Knep Christopher Komosa Werner Kraemer Andrew Lacey² Alex Lai Matthew Landy US Dmitri Batsev Frank Bianco1 Christopher Blake Daniel Breslin Rhett Brown Gary B G Buesser Zoe Chen1 James Daly Michael DeBernardis Robert Failla Martin Flood Mark Hudson Miriam Kim Eugene Krishnan Andrew Lacey2 Jerry Liu Bret Miller Sritharan Nadesan1 Siddharth Panjwani1 Prateek Pant1 David Pizzimenti Jessica R J i Rennie i Sean Reynolds1 Henry (Ross) Seiden Christopher Sferruzzo1 Nicholas Sordoni Ronald Temple2 Richard Tutino Christopher Whitney Douglas Workman1 Michael Zaremsky1 Jay Leupp Mark Little Jean-Daniel Malan Stephen Marra Kevin Matthews Thomas McManus Neil Millar Erik Miller Paul Moghtader Andrei Morosanu Jonathan Morris John Mulquiney Euro ope Aaron Barnfather Patricia Biggers Christian Bockris Jelena Boskovic Elias Chrysostomou Alan Clifford Al Cliff d Nathan Cockrell Alan Custis Giles Edwards Marina Erskine-Leacock Alistair Godrich A Ciprian Marin Daniel Rozier Laura Somers-Edgar Lloyd Whit Ll d Whitworth th Jason Williams Susanne Willumsen Barnaby Wilson Dennis Neveling Andrew Norris Hubert Parzecki Michael Per Christopher Pope Michael Powers Ragavan Ramsubramani John Reinsberg Giuseppe Ricotta Anthony Rohrlach David Ronco Edward Rosenfeld Patrick Ryan Craig Scholl Ulrich Schweiger John Sciarra Stephen Scott Victoire Spahn Jeremy Taylor Ronald Temple² Tycho van Wijk Kyle Waldhauer Steve Wreford Ming Zhong Asia-Pacific Thurl Abrahams Matthew Bills Aaron Binsted Andrew Il-Kweon Dong Neal Doying Timothy Griffen Ti th G iff Phillip Hofflin Takako Hoshino Ario Kishida Takayuki Natsume Rob Osborn Warryn Robertson Philippe Tison Shuichi Yoshimura Sh i hi Y hi Tim Zhao Emerging Markets g Georg Benes Thomas Boyle Myung Hwan (Paul) Choi Rohit Chopra Elizabeth Chung Myla Cruz James Donald² Lada Emelianova Donald Floyd Peter Gillespie Mostafa Hassan Xe (Harry) He Robert Horton Alex Ingham Mark Lien Xiaomeng (Michelle) Liu John Mariano Wanna Matanachai Erik McKee Kevin O'Hare Nicolas Rodriguez Brizuela Rodriguez-Brizuela Paul Rogers Stephen Russell Rahwa Senay Anmol Sethy Monika Shrestha Ashish Shrivastava Manish Singhai Sookyum Woo Ben Wulfsohn As of 30 June 2013 1 Due to the nature of their activities, these individuals appear among both equity and fixed income resources. nal 2 Due to the nature of their responsibilities, these individuals have been assigned more than one primary region focus. For Professional Investors Only l 22 Lazard Asset Management
  • Fees – L F Lazard Gl b l Li t d I f t t d Global Listed Infrastructure Equity Fund E it F d Institutional Annual management charge: 0.85% Minimum investment: £ , , £1,000,000 Launch date 27 February 2012 Share Cl Sh Classes Share Class Sedol Number ISIN Number £ Institutional Accumulating Class B5NXD34 IE00B5NXD345 £ Institutional Distributing Class B5NJXH6 IE00B5NJXH66 € Hedged Institutional Accumulating Class B51PLJ4 IE00B51PLJ46 € Hedged Institutional Distributing Class B4552M3 IE00B4552M33 As of 30 June 2013 For Professional Investors Only l 23 Lazard Asset Management
  • Lazard Global Listed Infrastru ucture (GBP Hedge) Composite Di l C i Disclosure N Notes Reporting Date: Composite Inception Date: Reporting Currency: 30 June 2013 01 September 2006 Pound Sterling Composite Description al The composite returns represent the total returns of all fully discretionary, fee-paying, portfolios with a Globa Listed Infrastructure (GBP Hedge) investment mandate and a minimum of £5 million in assets under management. g Calculation of Performance Returns count is fully invested. Lazard Global Listed Infrastructure (GBP Hedge) has foreign currency exposures Lazard's account inclusion policy is the earlier of the first full month or the end of the month in which the acc substantially hedged back to the British Pound. Therefore, the composite returns provided are in hedged British Pound terms only. The returns of the individual portfolios within the composite are time-weighted, based upon monthly portfolio valuations, and include the reinvestment of all earnings as of the payment date. The composite returns are asset-weighted based upon beginning period market values. Additional information regarding policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Composite returns are shown before taxes and the deduction of custody fees (except for mutual funds, which includes all fees). The composite returns are reported net of foreign withholding taxe on dividends, interest and capital gains. The composite returns presented represent past performance and is es not a reliable indicator of future results which may vary. results, vary Fee Schedule 25 Lazard's standard fee schedule for Global Listed Infrastructure (GBP Hedge) accounts is 0.80% of the first £2 million of assets (1.00% if less than £10 million), 0.70% on the next £25 million, 0.65% on the next £50 million, 0.60% on the next £100 million, 0.55% on assets above £200 million. Actual account fees, inclusive of performance-based fees (if applicable) are used in the construction of composite net of fee performance unless otherwise noted. A complete list and description of all Lazard composites is available upon request. Benchmark Information The Lazard Global Listed Infrastructure (GBP Hedge) Composite has no benchmark, as an appropriate index does not exist. GIPS Compliance and Verification Status Lazard Asset Management claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Lazard Asset Management has been independently verified for the period of January 1, 1993 through December 31, 2012. The verificatio reports are available upon request. Verification assesses whether (1) the firm has complied with all the on composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies an procedures are designed to calculate and present performance in compliance with the GIPS standards. nd Verification does not ensure the accuracy of any specific composite presentation. Lazard Asset Management i the "Firm" to which the GIPS Standards apply (Frankfurt office included in Firm definition as of January is 1, 2003). GIPS is a registered trademark of CFA Institute. CFA Institute has not been involved in the prepara ation or review of this presentation. The composite creation date is March 2007. Calendar Annualized QTD Lazard Rate of Return (%; Gross of Fees) Lazard Rate of Return (%; Net of Fees) Composite Standard Deviation (3-yr. Ann.) # of Portfolios Composite Dispersion (Asset Wtd. Std. Dev.) Composite Assets (GBP Millions) Total Firm Assets (GBP Billions) YTD 2012 2011 2010 2009 2008 2007 Sep 06 Dec 06 3.43 3.22 2 13.78 13.36 9.27 2 19.39 18.30 9.63 3 -0.20 -1.12 13.17 3 9.88 8.91 17.58 4 20.68 19.81 17.11 4 -30.60 -31.15 N/A 4 5.65 4.90 N/A 4 13.36 13.36 N/A 1 0.02 0.06 0.15 0.34 0.51 0.40 0.20 N/A N/A 483.1 93.9 93 9 483.1 93.9 93 9 402.3 91.3 91 3 363.0 80.0 80 0 563.7 89.8 89 8 611.4 72.1 72 1 508.8 5 55.5 55 5 740.3 63.8 63 8 10.2 49.9 49 9 For Professional Investors Only l 1 YR 3 YR 5 YR Since Inception 27.39 26.64 15.92 14.88 8.10 7.19 6.05 5.23 24 Lazard Asset Management
  • Biographies Global Listed Infrastructure M agement T Gl b l Li d I f Mana Team John Mulquiney, CFA Senior Vice P id P f li M S i Vi President, Portfolio Manager/Analyst /A l Lazard Asset Management Pacific Co. (Sydney) John is a portfolio manager/analyst with Lazard Ass Management Pacific in Sydney, Australia and has been working in the set investment field since 1997. Prior to joining Lazard in August 2005, John worked at Tyndall Australia and in the Asset and Infrastructure Group at Macquarie Bank, where he undertook transactions and developed valuation models for airports, l l d health f ucture. Most recently John spent f l h four years at Nanyang Ventures, an early l electricity generators, rail projects and h l h infrastru expansion venture capital fund. John holds a PhD from the Australian National University, and a BA (Hons) from Sydney University. He is a Chartered Financial Analyst. Warryn Robertson President, Senior Vice President Portfolio Manager/Analyst Lazard Asset Management Pacific Co. (Sydney) Asset Management Pacific in Sydney, Australia and has been working in the Warryn is a Portfolio Manager/Analyst with Lazard A investment field since 1992. Prior to joining Lazard in April 2001, Warryn was an Associate Director at Capital Partners. d Previously, Warryn worked at PriceWaterhouseCoo opers Corporate Finance. Warryn holds an MBA from the Melbourne Business S h l (M lb r U i r it ) and a B C m U i r it of C b rr B i School (Melbourne University) d B.Com University f Canberra. mm, mm Bertrand Cliquet, CFA Senior Vice President, Portfolio Manager/Analyst Lazard Asset Management Limited (London) Bertrand Cliquet is a Portfolio Manager/Analyst with Lazard Asset Management Limited in London Before joining the Firm in h London. 2004, Bertrand worked for Goldman Sachs Interna ational as a Research Analyst. Earlier, he worked in the Mergers and Acquisitions group at Deutsche Bank, focusing on th utility and retail sectors. He also did an internship at Enskilda Securities he in Paris, where he worked as an analyst covering the r retail sector. Bertrand has been working in the investment field since 1999. He attained a business degree from HEC in Paris, with a major in Finance. Bertrand is fluent in both French and German. h For Professional Investors Only l 25 Lazard Asset Management
  • Biographies Global Listed Infrastructure M agement T Gl b l Li d I f Mana Team Matthew Landy Senior Vice P id P f li M S i Vi President, Portfolio Manager/Analyst /A l Lazard Asset Management LLC (New York) Matthew Landy is a Portfolio Manager/Analyst w with the Global Listed Infrastructure Team. He began working in the investment field in 1995. Prior to joining Lazard in 2 2005, Matt worked in the private equity industry where he was involved in early stage venture capital in Europe and managemen buy-out investing in Australia. Previously he was an Equity Analyst with nt T d ll Investment Management. Matt h a B. C m. and a BA f A from Monash University in Melbourne, A h lb Australia. l Tyndall has Comm d Anthony Rohrlach, CFA Research Analyst Lazard Asset Management Pacific Co. (Sydney) Anthony Analyst Infrastructure team. Anthon is a Research Anal st on the Lazard Global Listed Infrastr ct re team He has been working in the investment field since 1999. Prior to joining Lazard in 2007, Anthony s spent over eight years as a research analyst with UBS, the last three years of which he covered infrastructure and utilities companies. Anthony holds an Honours degree in Finance from the Australian National University. Edward P. Keating Senior Vice President, Client Portfolio Manager Lazard Asset Management LLC (New York) Edward Keating is a Senior Vice President and a Clien Portfolio Manager for Lazard. He began working in the investment field nt in 2001, upon joining Lazard. He has a BA from Iona College For Professional Investors Only l 26 Lazard Asset Management
  • Important Information I t tI f ti All data contained herein is sourced by Lazard Asset Management unless otherwis noted. se Certain information included herein is derived by Lazard in part from an MSCI ind or indices (the “Index Data”). However, MSCI has not reviewed this product dex or report, and does not endorse or express any opinion regarding this product or r 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 wa arranties 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 furth redistributed or used as a basis for other indices or any securities or financial her products. This is a financial promotion and is not intended to be investment advice. In the U this document, which is supplied for information only, is for distribution only UK to professional investors and advisers authorised to carry out business under the F Financial Services and Markets Act 2000. References to Director and other titles of employees of Lazard Asset Management are internal titles and do not necessarily imply any legal status or responsibility. t Securities identified in this document should not be considered as a recommendat tion or solicitation to purchase, sell or hold these securities. It should also not be assumed that any investment in these securities were, or will be, profitable. were be profitable Past performance is not a reliable indicator of future results. Fluctuations in the ra of exchange between the currency in which shares are denominated and the ate currency of investment may have the effect of causing the value of your investmen to diminish or increase. Investors are reminded that the value of investments nt and the income from them is not guaranteed and can fall as well as rise due to mar and currency movements. When you sell your investment you may get back rket less than you originally invested. Yields from bonds reflect in part the risk rating of the bond issuer. Investment in l lower rated bonds increases the risk of default on repayment and the risk to capital of the fund. High yielding assets may carry a greater risk of capital values fa alling or have limited prospects of capital growth or recovery. Investments in emerging markets carry an above-average degree of risk due to the undeveloped nature of the securities markets in those countries. Investors should consider carefully whether or not investment in emerging markets investments is suitable for them and, if so, how substantial a part of their portfolio such investments should be. The Funds invest in financial derivative instruments (“FDI’s”). While the use of F FDI’s can be beneficial, they also involve risks different from, and in certain cases, greater than, the risks presented by more traditional investments. FDI’s may be su ubject to sudden, unexpected and substantial price movements that are not always predictable. FDI’s do not always perfectly or even highly track the value of the sec curities, rates or indices they are designed to track. The use of FDI’s to gain greater exposure to securities, rates or indices than by a direct investment, increase the possibility for profit but also increases the risk of loss. es The Funds are also subject to the risk of the insolvency or default of its counterpa arties to FDI investments. In such events the funds may have limited recourse investments against the counterparty and may experiences losses. This financial promotion is issued and approved by Lazard Asset Management Lim mited, 50 Stratton Street, London W1J 8LL Lazard Asset Management Limited is incorporated in England and Wales with registered number 525667. It is authorise and regulated by the Financial Conduct Authority. ed The contents of this document are confidential and should not be disclosed other than to the person or persons for whom it is intended. For Professional Investors Only l 27 Lazard Asset Management