AXA WORLD FUNDS A LUXEMBOURG INVESTMENT FUND ...

Appendix 58: AXA WORLD FUNDS – MONEY MARKET EURO
Name of the Sub-Fund AXA WORLD FUNDS – MONEY MARKET EURO
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 try to provide low income but stable value. The Sub-Fund normally
achieves a lower rate of return over the long term than Equities Funds and Bond Funds.
Typical investors would seek low income but stable value in euro.
Investment policy:
This Sub-Fund is a short-term money market fund and the implementation of the strategy will be
achieved, according to the regulations, with:
� limited interest rate risk considered as sensitivity to interest rates. Weighed Average Maturity of the
assets is less than or equal to 60 days,
� limited liquidity and credit risk. The residual maturity of the assets does not exceed 397 days and
the Weighed Average Life until maturity of the assets does not exceed 120 days.
The Investment Manager will seek to achieve the objectives of the Sub-Fund by investing exclusively in
high-quality negotiable short-term debt securities, time deposits and Money Market Instruments
denominated in EUR. Short-term debt securities and Money Market Instruments will be rated short-term
Investment Grade at the date of purchase, ie. rated at least A-2 or rated Investment Grade at the date of
purchase, i.e. rated at least A-3 if issued or guaranteed by certain European entities or authorities,
according to Standard & Poor’s (or equivalent rating according to any other rating agency or, if the
instrument is not rated, an equivalent quality as determined by the Management Company’s internal
rating process). The securities in which the Sub-Fund invests shall have an initial or residual maturity of
less than 12 months, taking into account the financial instruments connected therewith or, provided that
pursuant to the terms and conditions of issue governing such securities, the interest rate applicable
thereto is adjusted at least annually on the basis of market conditions.
The Sub-Fund will invest not more than 10% of its net assets in units of UCITS and/or other UCIs � .
For efficient portfolio management purposes, this Sub-Fund may also expose itself to such assets
through the use of derivative instruments within the limits set forth in the section “Investment
Restrictions”.
The Reference Currency of the Sub-Fund is EUR.
Use of Derivatives:
In order to achieve its management objectives, the Sub-Fund may engage in the credit derivatives market
by entering, i.a., into credit default swaps in order to sell or buy protection. A credit default swap “CDS” is
a bilateral financial contract in which one counterparty (the protection buyer) pays a periodic fee in return
for a contingent payment by the protection seller following a credit event of a reference issuer. The
protection buyer acquires the right to sell a particular bond or other designated reference obligations
issued by the reference issuer for its par value or the right to receive the difference between par value
and market price of the said bond or other designated reference obligations (or some other designated
reference or strike price) when a credit event occurs. A credit event is commonly defined as bankruptcy,
insolvency, receivership, material adverse restructuring of debt, or failure to meet payment obligations
when due. The International Swap and Derivatives Association (ISDA) has produced standardised
� Such paragraph shall take effect as from 1 st October 2012.
340