AXA WORLD FUNDS A LUXEMBOURG INVESTMENT FUND ...

Appendix 20: AXA WORLD FUNDS – FRAMLINGTON HYBRID RESOURCES
Name of the Sub-Fund AXA WORLD FUNDS – FRAMLINGTON HYBRID RESOURCES
(Previously named AXA World Funds – Hybrid Resources)
Management Company AXA Funds Management S.A. (Luxembourg)
Investment Manager AXA Investment Managers Paris
Sub-delegation None
Promoted by AXA Investment Managers
Objectives and Investment Policy
Investment objective:
The objective of the Sub-Fund is to achieve long-term capital growth. Typical investors would seek long
term capital growth measured in USD from an actively managed portfolio of equities linked to the
commodities sector and Money Market Instruments and cash covering the use of a range of commodity
index or sub-index related financial derivatives instruments.
Investment policy:
The “hybrid resources” strategy refers to the process of gaining an exposure to the commodities universe
through a hybrid combination of equities and financial derivatives instruments the underlying of which
consists of commodity indices and/or sub-indices.
The Investment Manager will seek to achieve the objective of the Sub-Fund by investing up to 100% of its
assets (i.e. from 0% to 100% of its assets) directly in international equities and equity related instruments
issued by all cap companies operating, directly or indirectly, in the commodity sectors or generally linked
to the commodity sectors and/or up to 100% of its assets (i.e. from 0% to 100% of its assets) through
financial derivatives instruments based on commodity indices and/or sub-indices, taking into account that
the Sub-Fund will use Money Market Instruments and cash covering in full at all times the use of a range
of financial derivatives instruments based on commodity indices and/or sub-indices. Asset allocation
among the asset classes will be actively managed.
- The equity portion of the Sub-Fund’s assets shall be actively managed in accordance with a
strategy combining a “bottom-up” research process which aims at selecting securities and to a lesser
extent a “top-down” approach in view of geographical and sub-sectors asset allocation.
- The commodity portion (i.e. commodity index or sub-index related financial derivative instruments)
of the Sub-Fund’s assets shall be actively managed by means of actively varying the weighting of the
commodity sub-sectors (i.e. Energy, Precious Metals, Industrial Metals, Livestock and Agriculture) in
relation to the commodity benchmark portion (i.e. the S&P GSCI Light Energy Total Return USD, as the
same may be re-named or replaced from time to time) of the benchmark index (active overlay) while
taking into account the principles of risk diversification at all times. The weighting of the five commodity
sub-sectors shall be determined on the basis of an analysis of the respective outlook of the five
commodity sub-sectors and shall be made within predefined limits which may vary in accordance with the
commodity benchmark construction.
For that purpose, the Sub-Fund will enter into a range of derivative instruments including, but not limited
to, swaps (for example, index swaps), options, futures and forward contracts relating to commodity
indices and/or sub-indices.
Each such commodity index or sub-index will comprise the prices for futures contracts on commodities
(exchange traded financial instruments settled in cash).
The Sub-Fund will cover the use of derivatives instruments by holding Money Market Instruments, money
market funds, cash, negotiable debt securities and debt or interest rate payments, synthetic Money
Market Instruments such as:
- physical investment in equities which performance is exchanged against money market linked
performance;
- physical investment in fixed income which performance is exchanged against money market linked
performance.
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