AXA WORLD FUNDS A LUXEMBOURG INVESTMENT FUND ...
AXA WORLD FUNDS A LUXEMBOURG INVESTMENT FUND ...
AXA WORLD FUNDS A LUXEMBOURG INVESTMENT FUND ...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
The Equity Sub-Funds: their objective is to achieve long-term capital growth, measured in the relevant Reference<br />
Currency, from actively managed portfolios of listed equity and equity-related securities or of derivative instruments<br />
on such securities. The income yields of the Equity Sub-Funds are of secondary importance. The investment policies<br />
of each of the Equity Sub-Funds are structured so as to offer investors a clear choice of risk/reward profile. The<br />
Equity Sub-Funds are managed by management teams being part of <strong>AXA</strong> Investment Managers expertises “<strong>AXA</strong><br />
Framlington” and/or “<strong>AXA</strong> Rosenberg”.<br />
The Bond Sub-Funds: their objective is to achieve a mix of income and capital growth measured in the relevant<br />
Reference Currency by investing in fixed and floating rate securities as identified by the objective of each Sub-Fund.<br />
The Bond Sub-Funds are managed by management teams being part of <strong>AXA</strong> Investment Managers expertise “<strong>AXA</strong><br />
Fixed Income”.<br />
The Mixed Sub-Funds: their objective is to achieve medium or long term capital and income growth measured in the<br />
relevant Reference Currency, by investing in a diversified portfolio of equities, bonds and ancillary cash as identified<br />
by the specific objective of each Sub-Fund. The income yields of the Mixed Sub-Funds are of secondary importance.<br />
The investment policy of each Mixed Sub-Fund is structured so as to offer investors a clear choice of risk/reward<br />
profile. The Mixed Sub-Funds are managed by management teams being part of <strong>AXA</strong> Investment Managers<br />
expertises “<strong>AXA</strong> Framlington” and/or “<strong>AXA</strong> Rosenberg” and/or “<strong>AXA</strong> Fixed Income”.<br />
The Liquidity Sub-Funds: their objective is to provide low income but stable value, by investing exclusively in high<br />
quality short-term negotiable debt securities within their respective currency areas. The Liquidity Sub-Funds normally<br />
achieve a lower rate of return over the long term than Equities Sub-Funds and Bond Sub-Funds. The Liquidity Sub-<br />
Funds are managed by management teams being part of <strong>AXA</strong> Investment Managers expertise “<strong>AXA</strong> Fixed Income”.<br />
In order to meet the aims of each Sub-Fund, it is intended in normal circumstances to maintain a policy of being<br />
invested in the relevant assets. Unless otherwise specified in the Appendices, each Sub-Fund may for hedging<br />
and/or efficient portfolio management purposes, also expose itself to such assets through the use of derivative<br />
instruments within the limits set forth in the section "Investment Restrictions" and employ techniques and instruments<br />
relating to Transferable Securities and Money Market Instruments as more fully described in the section “Special<br />
Investment and Hedging Techniques and Instruments”.<br />
There can be no assurance that the Company's or Sub-Funds’ investment will be successful or that the investment<br />
objectives of the Company or Sub-Funds will be achieved.<br />
Please refer to the section “General Risk Considerations” and to the relevant sections in the above<br />
Appendices for further risk considerations relating to any Sub-Fund.<br />
III - RISK MANAGEMENT PROCESS<br />
In accordance with the Law of 2010 and the applicable regulations, the Company shall use a risk-management<br />
process which enables it to assess the exposure of each Sub-Fund to market, liquidity and counterparty risks, and to<br />
all other risks, including operational risks, which are material for the Sub-Funds.<br />
As part of the risk management process, the Company uses the commitment approach to monitor and measure the<br />
global exposure of each Sub-Fund unless otherwise provided for under the relevant Appendix. This approach<br />
measures the global exposure related to positions on financial derivatives instruments (“FDIs”) and other efficient<br />
portfolio management techniques which may not exceed the total net value of the portfolio of the relevant Sub-Fund.<br />
The internal auditor of the Company and the Management Company will verify the aforesaid procedures and the<br />
management control framework.<br />
IV - GENERAL RISK CONSIDERATIONS<br />
As for any financial investment, potential investors should be aware that the value of the assets of the Sub-Funds<br />
may strongly fluctuate. The Company does not guarantee Shareholders that they will not suffer losses resulting from<br />
their investments.<br />
Equity Sub-Funds are generally more volatile than Bond Sub-Funds and Mixed Sub-Funds but may also achieve<br />
greater returns. Investors should be aware that equity-linked securities may comprise warrants and should refer<br />
below for risk considerations linked to warrants.<br />
All Sub-Funds are potentially exposed to the general risk referred below. Risks generated by the use of hedging and<br />
income enhancement strategies may also apply to all Sub-Funds. For specific risk considerations relating to any<br />
Sub-Fund, please refer to the “Special Risk Considerations” section.<br />
351
Change language