In the first quarter of 2026, the Lazard International Equity Portfolio showcased its robustness by achieving a 0.3% net-of-fees gain, surpassing the MSCI EAFE Index's 1.2% dip. This impressive performance is not an isolated event; over the preceding year, the portfolio surged by 23.7%, once again outpacing the MSCI EAFE Index's 21.3% growth. This sustained success highlights the strategic acumen behind its stock selections, which have consistently delivered value even amidst fluctuating market conditions and a period characterized by the prominence of lower-quality investments.

The global equities market, particularly non-U.S. segments, continued its upward trajectory into the first quarter, building on a strong performance in 2025. Despite a 30% rally in the previous year, international equities experienced only a modest 1% decrease, even with a notable decline in March. This resilience suggests a robust underlying strength in global markets, where non-U.S. assets are increasingly showing their capacity for growth and stability. The rising oil prices during this period added another layer of complexity to the market dynamics, influencing various sectors and investment strategies.

Amidst ongoing geopolitical uncertainties and macroeconomic shifts, the fund's defensive, stock-picking strategy is well-suited for the foreseeable future. The investment team remains focused on identifying high-quality companies and those demonstrating significant improvement, positioning the portfolio to capitalize on market transitions toward more fundamentally driven valuations. This approach emphasizes deep analysis and careful selection, aiming to secure long-term value for investors by navigating market volatility with strategic precision.