Client NamePresentation Title

1
CONFIDENTIAL
DECEMBER 2003
LAZARD LLC
Operational Environment at Lazard Asset Management
Kevin Dooley Nii Nortei Lokko
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Lazard Intro

• Financial services partnership that is best known
  for MA advisory services
• Other competencies include asset management and
  corporate restructuring
• Negatively affected by recent recession
  decrease in MA and IPOs
• Also in reorganization mode after merger of 3
  autonomous Lazard offices

Window of Opportunity for Lazard Asset Management
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3
Internal Processes
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4
Internal Processes Contd.

• Back Office Issues
• Complex integrated systems
• Inefficient use of personnel
• Non-uniform visibility of information

• Risk Management Issues
• Differences in system update affecting risk
• New group formed to centralize risk management
  but short-staffed

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5
Risk Management Soft Dollar Analysis

• Subject To
• The entire set of Brokers for variable X has to
  be used
• Each Broker will have at least 100,000 allocated
• No Broker shall exceed 750,000

The soft dollar ratio of broker X The dollar
expense of market data service Y Bear, Goldman
Sachs, ETrade, SP Securities,
B.O.N.Y. Bloomberg, Factset, Baseline, MSCI,
Russell Mellon
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