AXA WORLD FUNDS A LUXEMBOURG INVESTMENT FUND ...

Furthermore, there may be an imperfect correlation between derivatives instruments used as hedging vehicles and
the investments or market sectors to be hedged. This might result in an imperfect hedge of these risks and a
potential loss of capital.
In addition, the use of derivatives can involve significant economic leverage and may, in some cases, involve
significant risks of loss. The low initial margin deposits normally required to establish a position in such instruments
permits leverage. As a result, a relatively small movement in the price of the underlying contract may result in a profit
or a loss that is high in proportion to the amount of assets actually placed as initial margin and may result in unlimited
further loss exceeding any margin deposited. The global exposure to the said instruments may not exceed 100 % of
the Net Asset Value of the relevant Sub-Fund in the case of Sub-Funds using the commitment approach in order to
control the market risk associated with the use of derivatives instruments. Accordingly, the global risk associated with
the investments of the Sub-Fund may amount to 200 % of the Net Asset Value of the Sub-Fund. As temporary
borrowings may be allowed up to a maximum of 10%, the global risk may never exceed 210 % of the Net Asset
Value of the relevant Sub-Fund. The risk associated with the use of derivatives instruments may not exceed the level
of value-at-risk indicated in the relevant Appendix of each Sub-Fund using the value-at-risk approach in order to
control the risk associated with the use of said instruments.
Also, the ability to use these strategies may be limited by market conditions and regulatory limits and there can be no
guarantee that any of these strategies will meet their expected target.
10. Counterparty risks
Some Sub-Funds are exposed to counterparty risks associated to counterparties with which, or brokers, dealers and
exchanges through which, they deal, whether they engage in exchange-traded or OTC transactions, or repos and
stock-lending operations. In the case of insolvency or failure of any such party, such a Sub-Fund might recover, even
in respect of property specifically traceable to it, only a pro rata share of all property available for distribution to all of
such party’s creditors and/or customers. Such an amount may be less than the amounts owed to the Sub-Fund.
11. Liquidity risks
Some markets, on which Sub-Funds may invest, may prove at time to be insufficiently liquid. This affects the market
price of such a Sub-Fund’s securities and therefore its Net Asset Value.
Furthermore, there is a risk that, because of a lack of liquidity and efficiency in certain markets due to unusual market
conditions or unusual high volumes of repurchase requests or other reason, Sub-Funds may experience some
difficulties in purchasing or selling holdings of securities and, therefore, meeting subscriptions and redemptions in the
time scale indicated in the Prospectus.
In such circumstances, the Management Company may, in accordance with the Company's Articles and in the
investors’ interest, suspend subscriptions and redemptions or extend the settlement timeframe.
12. Management risk
For any given Sub-Fund, there is a risk that investment techniques or strategies are unsuccessful and may incur
losses for the Sub-Fund. Shareholders will have no right or power to participate in the day-to-day management or
control of the business of the Sub-Funds, nor an opportunity to evaluate the specific investments made by the Sub-
Funds or the terms of any of such investments.
Past performance is not a reliable indicator as to future performance. The nature of and risks associated with the
Sub-Fund’s future performance may differ materially from those investments and strategies historically undertaken by
the portfolio manager. There can be no assurance that the portfolio manager will realise returns comparable to those
achieved in the past or generally available on the market.
13. Risk on Cross Class Liabilities for all share classes (Standard, Redex and SolEx)
Although there is an accounting attribution of assets and liabilities to the relevant Class, there is no legal segregation
with respect to Classes of the same Sub-Fund. Therefore, if the liabilities of a Class exceed its assets, creditors of
said Class of the Sub-Fund may seek to have recourse to the assets attributable to the other Classes of the same
Sub-Fund.
As there is an accounting attribution of assets and liabilities without any legal segregation amongst Classes, a
transaction relating to a Class could affect the other Classes of the same Sub-Fund.
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