AXA WORLD FUNDS A LUXEMBOURG INVESTMENT FUND ...

9. Risks linked to investments in small and micro capitalisation universe
Investing in the small and micro capitalisation universe implies specific liquidity risk.
10. Risk of Net Asset Value fall
Under certain market conditions, the Net Asset Value increase of certain Sub-Funds may be very low or even
negative.
11. Risks associated with Absolute Return Strategies
Absolute Return Strategies consist of several possible sub-strategies such as, but not restricted to, (i) attempts to
take advantage of realised (or anticipated) market inefficiencies or discrepancies between markets and/or sectors
and/or currencies and/or other financial instruments or (ii) taking directional positions on markets and/or sectors
and/or currencies and/or other financial instruments. The volatility of the markets and/or sectors and/or currencies
and/or other financial instruments that are used in pursuing those strategies allows for the possibility that the
implemented strategies do not always perform as interpreted by the manager. In this case, the Net Asset Value of
the Sub-Fund may decrease. Additionally, those strategies may use leverage, hence magnifying gains and losses,
and/or gains and losses from derivatives. Moreover, these strategies may imply use of instruments, having a more
limited liquidity or investments within less liquid markets such as emerging markets. As such, the Sub-Fund may be
exposed to a liquidity risk by investing in these types of Absolute Return Strategies.
12. Risks associated with Funds of Funds
A Sub-Fund, which is established as a fund of funds will invest in funds as part of its investment policy. These
investments may result in the Sub-Fund being subject to multiple layers of management fees or other fees.
Furthermore, such a Sub-Fund may be subject to valuation risk due to the manner in which the Sub-Fund’s target
investments are themselves valued.
13. Convertible Securities Risk
Certain Sub-Funds may invest in convertible securities which are securities generally offering fixed interest or
dividend yields which may be converted either at a stated price or stated rate for common or preferred stock.
Although to a lesser extent than with fixed income securities generally, the market value of convertible securities
tends to decline as interest rates rise. Because of the conversion feature, the market value of convertible securities
also tends to vary with fluctuations in the market value of the underlying common or preferred stock.
VI - INVESTMENT RESTRICTIONS
The Company shall, based upon the principle of risk spreading, have power to determine the investment policy for
the investments for each Sub-Fund.
Except to the extent that more restrictive rules are provided for in connection with a specific Sub-Fund as described
in the relevant Appendices, the investment policy shall comply with the rules and restrictions laid down hereafter.
Each Sub-Fund as well as any one sub-fund of UCITS referred to below shall be considered as a separate UCITS for
the purpose of the present section.
A. Investments in the Company shall comprise only one or more of the following:
(1) Transferable Securities and Money Market Instruments listed or dealt in on a Regulated Market;
(2) Transferable Securities and Money Market Instruments dealt in on an Other Regulated Market in a Member
State;
(3) Transferable Securities and Money Market Instruments admitted to official listing on a stock exchange in an
Other State or dealt in on an Other Regulated Market in an Other State;
(4) Recently issued Transferable Securities and Money Market Instruments, provided that:
i the terms of issue include an undertaking that application will be made for admission to official listing
on a Regulated Market, a stock exchange in an Other State or on an Other Regulated Market as
described under (1)-(3) above;
ii such admission is secured within one year of the issue;
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