AXA WORLD FUNDS SICAV - Hong Kong Offering Memorandum - A LUXEMBOURG INVESTMENT FUND - Morningstar Asia - 香港
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
AXA WORLD FUNDS SICAV A LUXEMBOURG INVESTMENT FUND Hong Kong Offering Memorandum April 2022
Contents Sub-Fund Descriptions 3 Framlington Digital Economy 5 Framlington Europe Real Estate Securities 7 Framlington Global Real Estate Securities 9 Framlington Euro Selection 11 Framlington American Growth 13 Framlington Emerging Markets 15 Framlington Evolving Trends 17 Framlington Global Convertibles 19 Framlington Longevity Economy 21 Global Factors – Sustainable Equity 23 Asian High Yield Bonds 25 Asian Short Duration Bonds 27 Global High Yield Bonds 29 Global Inflation Bonds 31 Global Strategic Bonds 33 US High Yield Bonds 35 ACT Emerging Markets Short Duration Bonds Low Carbon 37 Notes on Sub-Fund’s Costs 40 Risk Descriptions 45 Risk Management Process 57 More about Derivatives 65 More about Efficient Portfolio Management 68 General Investment Rules for UCITS 72 Investing in the Sub-Funds 77 The SICAV 86 The Management Company 89 Terms with Specific Meanings 94 Hong Kong Offering Memorandum Page 2 of 97 AXA World Funds
A Word to Potential Investors
All Investments Involve Risk
Sub-Fund Descriptions An investment in AXA World Funds involves risk, including the
possibility that investors could lose money. AXA World Funds
All of the funds described on the following cannot guarantee the performance of, or any future return on,
the Shares. For more information, see "Risk Descriptions”.
pages are sub-funds of AXA World Funds. Before investing in any Sub-Fund, investors should assess how
well its objective and risk characteristics align with their own
AXA World Funds exists to provide financial circumstances and tolerance for investment risk.
Investors should also inform themselves about all applicable
investors, through the Sub-Funds, with legal, tax and foreign exchange considerations associated with
their investment, such as those imposed by the jurisdictions in
access to a diverse range of investments, which investors live or have tax residence. We recommend that
every investor consult an investment adviser and a tax adviser
strategies and worldwide financial markets. before investing.
Who Can Invest in Sub-Funds of AXA
The investment objective and policy of each World Funds
The AXA World Funds and its Sub-Funds as described in this
Sub-Fund begin on the next page. In document have been authorized by the SFC. The SFC
authorization is not a recommendation or endorsement of the
addition, all Sub-Funds are subject to the AXA World Funds and the Sub-Funds nor does it guarantee the
commercial merits of the AXA World Funds and the Sub-Funds
general investment policies and restrictions or their performance. It does not mean the AXA World Funds
and the Sub-Funds are suitable for all investors nor is it an
that appear, at the end of this “Sub-Fund endorsement of their suitability for any particular investors or
class of investors.
Descriptions” section, notably in “General The Shares are not registered in the US; thus they are not
offered to US Persons, Benefit Plan Investors and Canadian
Investment Rules for UCITS”. Prohibited Investors, as defined in this document.
For more information on Shareholder restrictions, including
which Sub-Funds and Share Classes investors may be eligible
The management company, which has to invest in see “Available Share Classes” in section “Investing
in the Sub-Funds”.
overall management responsibility for AXA
Which Information to Rely On
World Funds, and the investment managers,
In deciding whether to invest in any of these Sub-Funds,
which handle the day-to-day management of investors should rely only on the information in this document,
the Product Key Facts Statements of the Sub-Funds, the
the Sub-Funds, are all AXA Group Articles of Incorporation and the most recent financial report(s).
By buying Shares in any of these Sub-Funds, investors are
considered to have accepted the terms described in these
companies. More information about AXA documents. If investors are in any doubt about these
documents, please seek independent professional advice.
World Funds and other service providers
Together, all these documents contain the only approved
can be found in sections “The SICAV” and information about AXA World Funds and the Sub-Funds. The
Board is liable for any statements or information about AXA
World Funds and its Sub-Funds that is contained in these
“The Management Company”. documents. The directors of the SICAV whose names appear
in “Members of the Board of Directors” section of this document
have taken all reasonable care to ensure that the facts stated
in this document and the Product Key Facts Statements of the
Sub-Funds are true and accurate in all material respects and
that there are no material facts the omission of which would
make misleading statement herein, whether fact or opinion.
The directors accept responsibility accordingly.
Investors should note that websites cited or referred to in this
document and the Product Key Facts Statements of the Sub-
Funds have not been reviewed by the SFC and may contain
information of the funds not authorized by the SFC.
Hong Kong Offering Memorandum Page 3 of 97 AXA World FundsSustainable Investments and promotion of ESG characteristics
The SICAV and all its Sub-Funds comply with AXA Investment Managers’ (“AXA IM’s”) Sectorial Exclusion policies encompassing
areas such as Controversial Weapons, Climate Risks, Soft Commodities and Ecosystem Protection & Deforestation, as described
in the policy document. Certain Sub-Funds also apply the AXA IM’s Environmental, Social and Governance standards policy (“ESG
Standards”), according to which the Investment Manager aims at integrating the ESG Standards in the investment process by
applying specific sectorial exclusions such as tobacco and white phosphorus weapons and by excluding investments in securities
issued by companies in violation of international norms and standards such as the United Nations Global Compact Principles or the
OECD guidelines for Multinational Enterprises; as well as investments in companies which are involved in severe ESG-related
incidents and investments in issuers with a Low ESG quality. Instruments issued by countries where serious specific categories of
violations of Human Rights are observed are also banned. These policies (together “Policies”) are available on the website:
https://www.axa-im.com/responsible-investing/sector-investment-guidelines. The Sub-Funds applying ESG Standards and/or
having a non-financial objective of outperforming the ESG score of their respective benchmark or their investment universe and/or
promoting ESG characteristics qualify as “Article 8 products” according to Regulation (EU) 2019/2088 of the European Parliament
and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (“SFDR”). The Sub-
Funds which have Sustainable Investment as their non-financial objective and are managed in line with a sustainable and/or thematic
impact investing approach qualify as “Article 9 products” according to SFDR.
All the Sub-Funds of the SICAV are categorized as “Article 8” or “Article 9” as set out in the relevant Sub-Fund Descriptions. The
table below indicates for each concerned Sub-Fund the classification “Article 8” or “Article 9” as per SFDR:
Sub-Fund’s name SFDR Category
Framlington Digital Economy Article 8
Framlington Europe Real Estate Securities Article 8
Framlington Global Real Estate Securities Article 8
Framlington Euro Selection Article 9
Framlington American Growth Article 8
Framlington Emerging Markets Article 8
Framlington Evolving Trends Article 9
Framlington Global Convertibles Article 8
Framlington Longevity Economy Article 8
Global Factors – Sustainable Equity Article 9
Asian High Yield Bonds Article 8
Asian Short Duration Bonds Article 8
Global High Yield Bonds Article 8
Global Inflation Bonds Article 8
Global Strategic Bonds Article 8
US High Yield Bonds Article 8
ACT Emerging Markets Short Duration Bonds Low Carbon Article 9
Where the above Sub-Funds categorized as Article 8 promote environmental characteristic, it should be noted that they do not at this
stage take into account the EU criteria for environmentally sustainable economic activities as defined by the EU Taxonomy Regulation
and their portfolio alignment with such EU Taxonomy Regulation is not calculated. Therefore, the “do no significant harm” principle
does not apply to any of the investments of these Sub-Funds at this stage.
While the above Sub-Funds categorized as article 9 do have a sustainable investment objective, these Sub-Funds do not at
this stage commit to a minimum underlying investments qualifying as environmentally sustainable as per Article 3 of the EU
Taxonomy Regulation. Based on available data, we estimate that such environmentally sustainable investments would
represent less than 5% of each Sub-Fund’s assets.
Hong Kong Offering Memorandum Page 4 of 97 AXA World FundsAXA World Funds —
Framlington Digital Economy
Investment Objective and Strategy Exclusion and ESG Standards Policies with the exception of
derivatives and underlying eligible UCIs, as described in the
Objective documents available on the website: https://www.axa-
To seek long-term growth of your investment, in USD, from an im.com/responsible-investing/sector-investment-guidelines.
actively managed listed equity and equity-related securities (such The ESG analysis coverage rate within the portfolio is at least
as American Depositary Receipts (ADRs) listed in the US, Global 90% of the net assets of the Sub-Fund, with the exception of
Depositary Receipt (GDRs) and P-Notes) portfolio, in line with a bonds and other debt securities issued by public issuers, cash
socially responsible investment (SRI) approach. held on an ancillary basis, and Solidarity Assets. The ESG
scoring methodology is described in the following link:
Investment Strategy https://www.axa-im.com/responsible-investing/framework-and-
The Sub-Fund is actively managed and references MSCI AC scoring-methodology.
World Total Return Net (the “Benchmark”) for comparative The ESG data used in the investment process are based on ESG
purposes only. The Benchmark is chosen as it is a global equity methodologies which rely in part on third party data, and in some
benchmark whose performance is comparable to that of the Sub- cases are internally developed. They are subjective and may
Fund which essentially invests in equities of companies anywhere change over time. Despite several initiatives, the lack of
in the world that operate within the digital economy sector. The harmonised definitions can make ESG criteria heterogeneous. As
Investment Manager has full discretion over the composition of such, the different investment strategies that use ESG criteria and
the portfolio of the Sub-Fund and can take exposure to ESG reporting are difficult to compare with each other. Strategies
companies, countries or sectors not included in the Benchmark. that incorporate ESG criteria and those that incorporate
There are no restrictions on the extent to which the Sub-Fund’s sustainable development criteria may use ESG data that appear
portfolio and performance may deviate from the ones of the similar but which should be distinguished because their
Benchmark. calculation method may be different.
The Sub-Fund invests in equities of companies anywhere in the The Sub-Fund may also invest up to 20% of net assets in money
world that operate within the digital economy sector. market instruments and up to 10% of net assets in A Shares listed
Specifically, at all times the Sub-Fund invests at least two thirds in the Shanghai Hong-Kong Stock Connect.
of its net assets in equities and equity-related securities of The Sub-Fund may invest up to 10% of net assets in UCITS
companies active in the overall value chain of the digital economy, and/or UCIs.
from the customers’ initial discovery of products and services, to
the buying decision and then the final payment and delivery, and Derivatives and Efficient Portfolio Management Techniques
also in the technology enablers providing support and data The Sub-Fund may use derivatives for efficient portfolio
analysis to develop companies’ digital presence. Investments management and hedging.
may include companies of any market capitalisation (including
small and/or micro-capitalisation companies). The Sub-Fund does not use total return swaps.
The Sub-Fund is not subject to any limitation on the portion of its All derivatives usage will be consistent with the terms in “More
net assets that may be invested in any one country or region, about Derivatives”.
including emerging markets (such as Taiwan, India, South Korea, For the purpose of efficient portfolio management, the Sub-Fund
Argentina, Brazil and South Africa). uses, as part of its daily investment management activity, the
The Sub-Fund seeks to achieve its objective through following techniques (as a % of net assets):
investments in securities that have implemented good practices • securities lending: expected, 0-20%; max, 90%
in terms of managing their environmental impacts, governance By entering into securities lending, the Sub-Fund seeks to
and social (“ESG”) practices, by using a socially responsible enhance yield on daily basis (the assets on loan will generate
investment ‘selectivity’ approach which consists of selecting an incremental return for the Sub-Fund).
best issuers in the investable universe composed of equities
Main types of assets in scope are equities.
listed on global markets, based on their extra-financial ratings
with a focus on the Environmental pillar (“E scores”). The ‘Best- The Sub-Fund uses neither securities borrowing transactions nor
in-universe’ selectivity approach, which is bindingly applied at all repos/reverse repos. All efficient portfolio management
times, consists in reducing by, at least, 20% the initial investable techniques will be consistent with the terms in “More about
universe, by excluding non-ESG compliant issuers based on Efficient Portfolio Management”.
AXA IM’s Sectorial Exclusion and ESG Standards Policies and
Management Process
the worst issuers based on AXA IM’s ESG scoring methodology,
in particular, the worst issuers based on their E scores. The Investment Manager uses a strategy that combines macro-
economic, sector and company specific analysis. The Investment
For illustrative purpose only, the ESG criteria may be carbon
footprint and/or water intensity for the environmental aspect, Manager selects securities by applying a 2-step approach: 1/
health, safety and/or management of human resources and defining the eligible universe after application of a first exclusion
gender equality for the social aspect, remuneration policy and/or filter, as described in AXA IM's Sectorial Exclusion and ESG
global ethics for the governance aspect. Standards Policies, followed by a second ‘Best-in-universe’ filter,
The scope of the eligible securities is reviewed every 6 months at designed to eliminate the worst issuers from the investable
the latest, as described in the transparency code of the Sub-Fund universe defined for ESG purposes on the basis of their extra
available at https://www.axa-im.com/fund-centre. financial rating calculated on the basis of the AXA IM ESG scoring
methodology, in particular, the worst issuers based on their E
In addition, in the securities selection process, the Investment scores; 2/ a rigorous analysis and selection of high quality
Manager bindingly applies at all times AXA IM’s Sectorial
Hong Kong Offering Memorandum Page 5 of 97 AXA World Fundscompanies which typically include strong management teams, Global Exposure Commitment approach.
robust business models and where the expanding digital
economy is expected to have a material positive impact on their Additional Features
financial results on a mid to long term basis.
SFDR category Article 8 product
Reference Currency USD.
NAV Calculation Frequency Daily.
Risks Sub-Fund Business Day Orders to subscribe, switch or redeem
Risk Profile risk of capital loss. Sub-Fund Shares are processed every day that is a full bank
Business Day in Luxembourg, the United Kingdom and the United
Risk Factors The Sub-Fund is subject to the risks described in States of America.
“General Risks”, as well as to the following specific risks
Subscription, Switching and Redemption Orders All orders
(described in “Specific Risks”):
are processed on a Forward Pricing Basis.
• Global investments risk
• Emerging markets risk Investment Manager AXA Investment Managers UK Limited
• Investments in specific sectors or asset classes risk (London).
• Investments in small and/or micro-capitalisation universe Inception 24 October 2017.
risk
• Investment through the Stock Connect program risk
• Derivative and leverage risk
• ESG risk
Sustainability Risks Given the Sub-Fund’s Investment
Strategy and risk profile, the likely impact of the Sustainability
Risks on the Sub-Fund’s returns is expected to be medium.
Maximum one-off charges Maximum recurrent charges taken from
taken when you invest the Sub-Fund over a year
Entry Management Fee
Class Applied Service Fee
Charge
A 5.50% 1.50% 0.50%
See “Notes on Sub-Fund’s Costs” following the last Sub-Fund Description. As at the date of the Hong Kong Offering Memorandum, Class A Capitalisation (USD) and Class A
Capitalisation (HKD Hedged 95%) are available to the Hong Kong investors.
Hong Kong Offering Memorandum Page 6 of 97 AXA World FundsAXA World Funds —
Framlington Europe Real Estate Securities#
Investment Objective and Strategy Derivatives and Efficient Portfolio Management Techniques
The Sub-Fund may use derivatives for efficient portfolio
Objective management and hedging.
To seek long-term growth of your investment, in EUR, from an For the avoidance of doubt, the Sub-Fund’s net derivative
actively managed listed equity, equity-related securities and exposure may be up to 50% of the Sub-Fund’s net asset value.
derivatives on such securities portfolio. The net derivative exposure is calculated in accordance with the
Investment Strategy SFC Code on Unit Trusts and Mutual Funds and the requirements
and guidance issued by the SFC which may be updated from time
The Sub-Fund is actively managed in order to capture
to time.
opportunities in the regulated European real estate markets, by
mainly investing in equities of companies that are part of the FTSE The Sub-Fund does not use total return swaps.
EPRA/NAREIT Developed Europe Capped 10% Total Return All derivatives usage will be consistent with the terms in “More
benchmark index (the “Benchmark”) universe. As part of the about Derivatives”.
investment process, the Investment Manager has broad For the purpose of efficient portfolio management, the Sub-Fund
discretion over the composition of the Sub-Fund’s portfolio and uses, as part of its daily investment management activity, the
can take, based on its investment convictions, large overweight or following techniques (as a % of net assets):
underweight positions on the countries or companies compared
to the Benchmark’s composition and/or take exposure to • securities lending: expected, 0-30%; max, 90%
companies, countries or sectors not included in the Benchmark, By entering into securities lending, the Sub-Fund seeks to
even though the Benchmark constituents are generally enhance yield on daily basis (the assets on loan will generate
representative of the Sub-Fund’s portfolio. Thus, the deviation an incremental return for the Sub-Fund).
from the Benchmark is likely to be significant. Main types of assets in scope are equities.
The Sub-Fund invests in equities of companies that are in the real The Sub-Fund uses neither securities borrowing transactions
estate sector. nor repos/reverse repos.
Specifically, at all times the Sub-Fund invests at least two-thirds All efficient portfolio management techniques will be consistent
of net assets in transferable securities of companies that are in with the terms in “More about Efficient Portfolio Management”.
the real estate sector, and are domiciled or do most of their
business in Europe. The Sub-Fund invests mainly in securities Management Process
that are negotiated on European regulated markets. On an The Investment Manager combines a "bottom-up" research
ancillary basis, the Sub-Fund may invest on markets outside the process for selecting securities and, to a lesser extent, a "top-
Europe. The Sub-Fund may invest in equity securities of any down" approach for geographical asset allocation. The
market capitalisation (including small and micro-sized Investment Manager uses a strategy that combines macro-
companies). economic, industry analysis and company selection. The
The Sub-Fund may invest up to 5% of net assets in UCITS and/or securities selection process relies on a rigorous analysis of the
UCIs. companies’ business model, growth prospects, underlying assets
and risk/return profile.
The Sub-Fund always aims at outperforming the ESG scoring of
the investment universe as defined by the Benchmark, both Reference Currency EUR.
ESG scores of the Sub-Fund and the Benchmark being
calculated on a weighted average basis. The AXA IM’s ESG
scoring methodology is described in the following link: Risks
https://www.axa-im.com/responsible-investing/framework-and- Risk Profile High risk of capital loss.
scoring-methodology. For the sake of clarity, the Benchmark is
a broad market index that does not necessarily consider in its Risk Factors The Sub-Fund is subject to the risks described in
composition or calculation methodology the ESG characteristics “General Risks”, as well as to the following specific risks
promoted by the Sub-Fund. (described in “Specific Risks”):
• Investments in specific sectors or asset classes risk
The ESG analysis coverage rate within the portfolio is at least
• Investments in real estate securities and REITs risk
80% of the net assets of the Sub-Fund, this rate being calculated
according to the weighted average assets allocation mix within • Investments in specific countries or geographical zones risk
the investment universe between minimum 90% ESG analysis • Eurozone political, regulatory, economic and convertibility
coverage rate for securities issued in developed countries risks
and/or rated Investment Grade and minimum 75% ESG analysis • Derivative and leverage risk
coverage rate for securities issued in emerging countries, from • Distribution out of/effectively out of capital risk
small and micro-capitalization universe and/or rated Sub- • Investments in small and/or micro-capitalisation universe
Investment Grade. risk
• ESG risk
In addition, in the securities selection process, the Investment
Manager bindingly applies at all times AXA IM’s Sectorial Sustainability Risks Given the Sub-Fund’s Investment
Exclusion and ESG Standards Policies with the exception of Strategy and risk profile, the likely impact of the Sustainability
derivatives and underlying eligible UCIs, as described in the Risks on the Sub-Fund’s returns is expected to be low.
documents available on the website: https://www.axa- Method for Calculating Global Exposure Commitment
im.com/responsible-investing/sector-investment-guidelines. The approach.
ESG criteria contribute to, but are not a determining factor in, the
Investment Manager's decision making.
Hong Kong Offering Memorandum Page 7 of 97 AXA World FundsAdditional Features
SFDR category Article 8 product
NAV Calculation Frequency Daily.
Sub-Fund Business Day Orders to subscribe, switch or redeem
Sub-Fund Shares are processed every day that is a full bank
Business Day in Luxembourg.
Subscription, Switching and Redemption Orders All orders
are processed on a Forward Pricing Basis.
Investment Manager AXA Real Estate Investment Managers
SGP.
Inception 16 Aug 2005.
# AXA World Funds – Framlington Europe Real Estate Securities
is authorized under the SFC Code on Unit Trusts and Mutual
Funds but not under the Code on Real Estate Investment Trusts.
SFC authorization is not a recommendation or endorsement of
the Sub-Fund nor does it guarantee the commercial merits of the
Sub-Fund or its performance. It does not mean the Sub-Fund is
suitable for all investors nor is it an endorsement of its suitability
for any particular investors or class of investors.
Maximum one-off charges Maximum recurrent charges taken from
taken when you invest the Sub-Fund over a year
Entry Management Fee
Class Applied Service Fee
Charge
A 5.50%* 1.50% 0.50%
F 2.00% 0.75% 0.50%
See “Notes on Sub-Fund’s Costs” following the last Sub-Fund Description. As at the date of the Hong Kong Offering Memorandum, Class A Capitalisation (EUR), Class A Capitalisation
(USD Hedged 95%), Class A Distribution quarterly “fl” (USD Hedged 95%), Class A Distribution quarterly “fl” (HKD Hedged 95%) and Class F Capitalisation (EUR) are available to
the Hong Kong investors. For the currency hedged share class(es), the class currency will be hedged at least at 95% against the reference currency of the Sub-Fund. Please refer to
the “Dividend Policy” sub-section in the “Investing in the Sub-Funds” section for details on the dividend policy for the Distributing Shares.
* 5.25% maximum for Class A Distribution quarterly (USD Hedged 95%) and Class A Distribution quarterly (HKD Hedged 95%)
Hong Kong Offering Memorandum Page 8 of 97 AXA World FundsAXA World Funds —
Framlington Global Real Estate Securities #
Investment Objective and Strategy
Objective Derivatives and Efficient Portfolio Management
Techniques
To seek long-term growth of your investment, in EUR, from an
actively managed listed equity, equity-related securities and The Sub-Fund may use derivatives for efficient portfolio
derivatives portfolio. management, hedging and investment. For the avoidance of
doubt, the Sub-Fund’s net derivative exposure may be up to 50%
Investment Strategy of the Sub-Fund’s net asset value. The net derivative exposure is
The Sub-Fund is actively managed in order to capture calculated in accordance with the SFC Code on Unit Trusts and
opportunities in the international real estate market, by mainly Mutual Funds and the requirements and guidance issued by the
investing in equities of companies that are part of the FTSE SFC which may be updated from time to time.
EPRA/NAREIT Developed Total Return Net benchmark index The Sub-Fund may expose itself via derivatives to equities,
(the “Benchmark”) universe. As part of the investment process, equity-related securities, bonds and other fixed income
the Investment Manager has broad discretion over the instruments, indexes and currencies. The Sub-Fund does not use
composition of the Sub-Fund’s portfolio and can take, based on total return swaps.
its investment convictions, large overweight or underweight
All derivatives usage will be consistent with the terms in “More
positions on the countries or companies compared to the
about Derivatives”.
Benchmark’s composition and/or take exposure to companies,
countries or sectors not included in the Benchmark, even though For the purpose of efficient portfolio management, the Sub-Fund
the Benchmark constituents are generally representative of the uses, as part of its daily investment management activity, the
Sub-Fund’s portfolio. Thus, the deviation from the Benchmark is following techniques (as a % of net assets):
likely to be significant. • securities lending: expected, 0-20%; max, 90%
The Sub-Fund invests in equities of real estate companies By entering into securities lending, the Sub-Fund seeks to
anywhere in the world. enhance yield on daily basis (the assets on loan will generate
Specifically, at all times the Sub-Fund invests at least two-thirds an incremental return for the Sub-Fund).
of net assets in transferable securities issued by companies Main types of assets in scope are equities.
engaged in the real estate sector. The Sub-Fund uses neither securities borrowing transactions
The Sub-Fund may invest in equity securities of any market nor repos/reverse repos.
capitalisation (including small and micro-sized companies). All efficient portfolio management techniques will be consistent
The Sub-Fund is not subject to any limitation on the portion of its with the terms in “More about Efficient Portfolio Management”.
net assets that may be invested in any one country or region.
Management Process
The Sub-Fund may invest up to 10% of net assets in UCITS
and/or UCIs. The Investment Manager combines a "bottom-up" research
process for selecting securities and, to a lesser extent, a "top-
The Sub-Fund always aims at outperforming the ESG scoring of down" approach for geographical and thematic asset allocation.
the investment universe as defined by the Benchmark, both The securities selection process relies on a rigorous analysis of
ESG scores of the Sub-Fund and the Benchmark being sector, companies’ business model, management quality, growth
calculated on a weighted average basis. The AXA IM’s ESG prospects, underlying assets and risk/return profile.
scoring methodology is described in the following link:
https://www.axa-im.com/responsible-investing/framework-and- Reference Currency EUR.
scoring-methodology. For the sake of clarity, the Benchmark is
a broad market index that does not necessarily consider in its
composition or calculation methodology the ESG characteristics
Risks
promoted by the Sub-Fund. Risk Profile High risk of capital loss.
The ESG analysis coverage rate within the portfolio is at least Risk Factors The Sub-Fund is subject to the risks described in
80% of the net assets of the Sub-Fund, this rate being calculated “General Risks”, as well as to the following specific risks
according to the weighted average assets allocation mix within (described in “Specific Risks”):
the investment universe between minimum 90% ESG analysis • Emerging markets risk
coverage rate for securities issued in developed countries • Global investments risk
and/or rated Investment Grade and minimum 75% ESG analysis • Investments in specific sectors or asset classes risk
coverage rate for securities issued in emerging countries, from • Investments in real estate securities and REITs risk
small and micro-capitalization universe and/or rated Sub- • Derivatives and leverage risk
Investment Grade. • Distribution out of / effectively out of capital risk
In addition, in the securities selection process, the Investment • Investments in small and/or micro-capitalisation universe
Manager bindingly applies at all times AXA IM’s Sectorial risk
Exclusion and ESG Standards Policies with the exception of • ESG risk
derivatives and underlying eligible UCIs, as described in the Sustainability Risks Given the Sub-Fund’s Investment Strategy
documents available on the website: https://www.axa- and risk profile, the likely impact of the Sustainability Risks on the
im.com/responsible-investing/sector-investment-guidelines. The Sub-Fund’s returns is expected to be low.
ESG criteria contribute to, but are not a determining factor in, the
Investment Manager's decision making. Method for Calculating Global Exposure Commitment
approach.
Hong Kong Offering Memorandum Page 9 of 97 AXA World FundsAdditional Features
SFDR category Article 8 product
NAV Calculation Frequency Daily.
Sub-Fund Business Day Orders to subscribe, switch or redeem
Sub-Fund Shares are processed every day that is a full bank
Business Day in Luxembourg and the United States of America.
Subscription, Switching and Redemption Orders All orders
are processed on a Forward-Forward Pricing Basis.
Investment Manager AXA Real Estate Investment Managers
SGP.
Inception 29 Aug 2006.
# AXA World Funds – Framlington Global Real Estate Securities
is authorized under the SFC Code on Unit Trusts and Mutual
Funds but not under the Code on Real Estate Investment Trusts.
SFC authorization is not a recommendation or endorsement of
the Sub-Fund nor does it guarantee the commercial merits of the
Sub-Fund or its performance. It does not mean the Sub-Fund is
suitable for all investors nor is it an endorsement of its suitability
for any particular investors or class of investors.
Maximum one-off charges Maximum recurrent charges taken from
taken when you invest the Sub-Fund over a year
Entry
Class Management Fee Applied Service Fee
Charge
A 5.50% 2.00% 0.50%
F 2.00% 1.00% 0.50%
See “Notes on Sub-Fund’s Costs” following the last Sub-Fund Description. As at the date of the Hong Kong Offering Memorandum, Class A Capitalisation (USD), Class A Distribution
monthly “st” (USD) and Class F Capitalisation (USD) are available to Hong Kong investors. Please refer to the “Dividend Policy” sub-section in the “Investing in the Sub-Funds” section
for details on the dividend policy for the Distributing Shares.
Hong Kong Offering Memorandum Page 10 of 97 AXA World FundsAXA World Funds —
Framlington Euro Selection
https://www.axa-im.com/responsible-investing/framework-and-
Investment Objective and Strategy scoring-methodology.
Objective The ESG data used in the investment process are based on ESG
To seek both long-term growth of your investment, in EUR, and a methodologies which rely in part on third party data, and in some
Sustainable Investment objective with an environmental focus, cases are internally developed. They are subjective and may
from an actively managed listed equity, equity-related securities change over time. Despite several initiatives, the lack of
and derivatives portfolio, in line with a socially responsible harmonised definitions can make ESG criteria heterogeneous. As
investment (SRI) approach. such, the different investment strategies that use ESG criteria and
ESG reporting are difficult to compare with each other. Strategies
Investment Strategy that incorporate ESG criteria and those that incorporate
The Sub-Fund is actively managed in order to capture sustainable development criteria may use ESG data that appear
opportunities in the Euro zone equities market, by mainly similar but which should be distinguished because their
investing in equities of companies that are part of the EURO calculation method may be different.
STOXX Total Return Net benchmark index (the “Benchmark”)
universe. As part of the investment process, the Investment The Sub-Fund invests mainly in equities of large and medium
Manager has broad discretion over the composition of the Sub- sized companies based in the Eurozone.
Fund’s portfolio and can take, based on its investment Specifically, at all times the Sub-Fund invests at least 66% of net
convictions, large overweight or underweight positions on the assets in equities that are denominated in EUR. The Sub-Fund
countries, sectors or companies compared to the Benchmark’s may invest up to 10% of net assets in companies not based in the
composition and/or take exposure to companies, countries or Eurozone. The Sub-Fund may invest in equity securities of any
sectors not included in the Benchmark, even though the market capitalisation (including small and micro-sized
Benchmark constituents are generally representative of the Sub- companies).
Fund’s portfolio. Thus, the deviation from the Benchmark is likely The Sub-Fund may invest up to one-third of net assets in money
to be significant. market instruments and up to 10% in bonds, including convertible
For the sake of clarity, the Benchmark is a broad market index bonds and Sub-Investment Grade and/or unrated sovereign debt
which is not aligned with the Sustainable Investment objective of securities issued or guaranteed by any single country.
the Sub-Fund, but is used as a reference for its financial objective. The Sub-Fund may invest up to 10% of net assets in UCITS
and/or UCIs.
The Sub-Fund seeks to achieve its objective through
investments in sustainable securities that have implemented Derivatives and Efficient Portfolio Management
good practices in terms of managing their environmental impacts, Techniques
governance and social (“ESG”) practices, by using a socially
The Sub-Fund may use derivatives for efficient portfolio
responsible investment ‘selectivity’ approach taking into account
management and hedging.
non-financial criteria which consists of selecting best issuers in
the investable universe based on their extra-financial ratings For the avoidance of doubt, the Sub-Fund’s net derivative
with a focus on the Environment pillar (“E scores”). The ‘Best-in- exposure may be up to 50% of the Sub-Fund’s net asset value.
universe’ selectivity approach, which is bindingly applied at all The net derivative exposure is calculated in accordance with the
times, consists in excluding, at least, 20% of the issuers with the SFC Code on Unit Trusts and Mutual Funds and the requirements
lowest E scores within the investment universe as defined by the and guidance issued by the SFC which may be updated from time
Benchmark, with the exception of bonds and other debt to time.
securities issued by public issuers, cash held on an ancillary The Sub-Fund does not use total return swaps.
basis and Solidarity Assets. All derivatives usage will be consistent with the terms in “More
For illustrative purpose only, the E criteria may be carbon about Derivatives”.
footprint, water intensity, use of natural resources in companies’ For the purpose of efficient portfolio management, the Sub-Fund
operations, protection of ecosystems and/or companies’ activities, uses, as part of its daily investment management activity, the
products and services resolving climate change challenges for following techniques (as a % of net assets):
the environmental aspect. • securities lending: expected, 0-30%; max, 90%
The scope of the eligible securities is reviewed every 6 months By entering into securities lending, the Sub-Fund seeks to
at the latest, as described in the transparency code of the Sub- enhance yield on daily basis (the assets on loan will generate an
Fund available at https://www.axa-im.com/fund-centre. incremental return for the Sub-Fund).
Main types of assets in scope are bonds and equities.
In addition, in the securities selection process, the Investment
Manager bindingly applies at all times AXA IM’s Sectorial The Sub-Fund uses neither securities borrowing transactions nor
Exclusion and ESG Standards Policies with the exception of repos/reverse repos.
derivatives and underlying eligible UCIs, as described in the All efficient portfolio management techniques will be consistent
documents available on the website: https://www.axa- with the terms in “More about Efficient Portfolio Management”.
im.com/responsible-investing/sector-investment-guidelines.
Management Process
The ESG analysis coverage rate within the portfolio is at least The Investment Manager selects investments by applying a 2-
90% of the net assets of the Sub-Fund, with the exception of step approach: 1/ defining the eligible universe after application of
bonds and other debt securities issued by public issuers, cash a first exclusion filter, as described in AXA IM's Sectorial Exclusion
held on an ancillary basis, and Solidarity Assets. The AXA IM’s and ESG Standards Policies, followed by a second ‘Best-in-
ESG scoring methodology is described in the following link: universe’ filter, designed to eliminate the worst issuers (i.e. at
Hong Kong Offering Memorandum Page 11 of 97 AXA World Fundsleast, 20% of the issuers with the lowest E scores) from the Sustainability Risks Given the Sub-Fund’s Investment Strategy
investment universe on the basis of their extra financial rating and risk profile, the likely impact of the Sustainability Risks on the
calculated on the basis of the AXA IM ESG scoring methodology; Sub-Fund’s returns is expected to be low.
2/ using a strategy that combines macro-economic, sector and
Method for Calculating Global Exposure Commitment
company specific analysis that relies on a rigorous analysis of the
companies’ business model, management quality, growth approach.
prospects and risk/return profile. Please refer to “Sustainability
Risks” in the “Risk Descriptions” section for more details on the Additional Features
sectorial and normative exclusions and AXA IM ESG scoring
methodology. SFDR category Article 9 product
Reference Currency EUR. NAV Calculation Frequency Daily.
Risks Sub-Fund Business Day Orders to subscribe, switch or redeem
Sub-Fund Shares are processed every day that is a full bank
Risk Profile High risk of capital loss. Business Day in Luxembourg.
Risk Factors The Sub-Fund is subject to the risks described in Subscription, Switching and Redemption Orders All orders
“General Risks”, as well as to the following specific risks are processed on a Forward Pricing Basis.
(described in “Specific Risks”):
Investment Manager AXA Investment Managers Paris.
• Investments in small and/or micro capitalisation universe risk
• Investments in specific countries or geographical zones risk Inception 1 Apr 1988.
• Eurozone political, regulatory, economic and convertibility
risks
• Derivatives and leverage risk
• ESG risk
Maximum one-off charges taken Maximum recurrent charges taken from
when you invest the Sub-Fund over a year
Entry
Class Management Fee Applied Service Fee
Charge
A 5.50% 1.50% 0.50%
See “Notes on Sub-Fund’s Costs” following the last Sub-Fund Description. As at the date of the Hong Kong Offering Memorandum, Class A Capitalisation (EUR) is available
to the Hong Kong investors.
Hong Kong Offering Memorandum Page 12 of 97 AXA World FundsAXA World Funds —
Framlington American Growth
Investment Objective and Strategy By entering into securities lending, the Sub-Fund seeks to
enhance yield on daily basis (the assets on loan will generate an
Objective incremental return for the Sub-Fund).
To seek long-term growth of your investment, in USD, from an Main types of assets in scope are bonds and equities.
actively managed listed equity, equity-related securities and The Sub-Fund uses neither securities borrowing transactions nor
derivatives portfolio. repos/reverse repos.
Investment Strategy All efficient portfolio management techniques will be consistent
The Sub-Fund is actively managed in order to capture with the terms in “More about Efficient Portfolio Management”.
opportunities in North American equities market, by investing at Management Process
least one third of its net assets in equities of companies that are
part of the S&P 500 Total Return Net benchmark index (the The Investment Manager uses a strategy that combines macro-
“Benchmark”) universe. As part of the investment process, the economic, sector and companies’ specific analysis. The securities
Investment Manager has broad discretion over the composition of selection process relies on a rigorous analysis of the companies’
the Sub-Fund’s portfolio and can take, based on its investment business model, management quality, profitability, growth
convictions, large overweight or underweight positions on the prospects and risk/return profile.
sectors or companies compared to the Benchmark’s composition Reference Currency USD.
and/or take exposure to companies, countries or sectors not
included in the Benchmark, even though the Benchmark Risks
constituents are generally representative of the Sub-Fund’s
portfolio. Thus, the deviation from the Benchmark is likely to be Risk Profile High risk of capital loss.
significant. Risk Factors The Sub-Fund is subject to the risks described in
The Sub-Fund invests in equities of American companies “General Risks”, as well as to the following specific risks
(including companies in the United States of America, Canada (described in “Specific Risks”):
and Mexico) of any capitalisation, that, the Investment Manager • Investments in small and/or micro-capitalisation universe
believes, appear to offer above-average profitability and growth risk
prospects. • Investments in specific countries or geographical zones risk
Specifically, at all times the Sub-Fund invests at least two-thirds • Derivatives and leverage risk
of net assets in equities and equity-related securities of • ESG risk
companies that are domiciled or do most of their business in the
Americas. Sustainability Risks Given the Sub-Fund’s Investment Strategy
and risk profile, the likely impact of the Sustainability Risks on the
The Sub-Fund may invest up to one-third of net assets in money
Sub-Fund’s returns is expected to be medium.
market instruments and up to 10% in bonds, including convertible
bonds and Sub-Investment Grade and/or unrated sovereign debt Method for Calculating Global Exposure Commitment
securities issued or guaranteed by any single country. approach.
The Sub-Fund may invest up to 10% of net assets in UCITS
and/or UCIs. Additional Features
In the securities selection process, the Investment Manager
SFDR category Article 8 product
bindingly applies at all times AXA IM’s Sectorial Exclusion and
ESG Standards Policies with the exception of derivatives and NAV Calculation Frequency Daily.
underlying eligible UCIs, as described in the documents available
on the website: https://www.axa-im.com/responsible- Sub-Fund Business Day Orders to subscribe, switch or redeem
investing/sector-investment-guidelines. Sub-Fund Shares are processed every day that is a full bank
Business Day in Luxembourg and the United States of America.
Derivatives and Efficient Portfolio Management
Techniques Subscription, Switching and Redemption Orders All orders
are processed on a Forward Pricing Basis.
The Sub-Fund may use derivatives for efficient portfolio
management and hedging. Investment Manager AXA Investment Managers UK Limited
For the avoidance of doubt, the Sub-Fund’s net derivative (London).
exposure may be up to 50% of the Sub-Fund’s net asset value. Inception 1 Oct 2009.
The net derivative exposure is calculated in accordance with the
SFC Code on Unit Trusts and Mutual Funds and the requirements
and guidance issued by the SFC which may be updated from time
to time.
The Sub-Fund does not use total return swaps.
All derivatives usage will be consistent with the terms in “More
about Derivatives”.
For the purpose of efficient portfolio management, the Sub-Fund
uses, as part of its daily investment management activity, the
following techniques (as a % of net assets):
• securities lending: expected, 0-20%; max, 90%
Hong Kong Offering Memorandum Page 13 of 97 AXA World FundsMaximum one-off charges taken Maximum recurrent charges taken from
when you invest the Sub-Fund over a year
Entry
Class Management Fee Applied Service Fee
Charge
A 5.50% 1.70% 0.50%
See “Notes on Sub-Fund’s Costs” following the last Sub-Fund Description. As at the date of the Hong Kong Offering Memorandum, Class A Capitalisation (USD) is available to Hong
Kong investors.
Hong Kong Offering Memorandum Page 14 of 97 AXA World FundsAXA World Funds —
Framlington Emerging Markets
Investment Objective and Strategy im.com/responsible-investing/sector-investment-guidelines. The
ESG criteria contribute to, but are not a determining factor in, the
Objective Investment Manager's decision making.
To seek long-term growth of your investment, in USD, from an
Derivatives and Efficient Portfolio Management
actively managed listed equity, equity-related securities and
Techniques
derivatives portfolio.
The Sub-Fund may use derivatives for efficient portfolio
Investment Strategy management and hedging.
The Sub-Fund is actively managed in order to capture For the avoidance of doubt, the Sub-Fund’s net derivative
opportunities in emerging market equities worldwide, by mainly exposure may be up to 50% of the Sub-Fund’s net asset value.
investing in equities of companies that are part of the MSCI The net derivative exposure is calculated in accordance with the
Emerging Markets Total Return Net benchmark index (the SFC Code on Unit Trusts and Mutual Funds and the requirements
“Benchmark”) universe. As part of the investment process, the and guidance issued by the SFC which may be updated from time
Investment Manager has broad discretion over the composition of to time.
the Sub-Fund’s portfolio and can take, based on its investment
The Sub-Fund does not use total return swaps.
convictions, large overweight or underweight positions on the
countries, sectors or companies compared to the Benchmark’s All derivatives usage will be consistent with the terms in “More
composition and/or take exposure to companies, countries or about Derivatives”.
sectors not included in the Benchmark, even though the For the purpose of efficient portfolio management, the Sub-Fund
Benchmark constituents are generally representative of the Sub- uses, as part of its daily investment management activity, the
Fund’s portfolio. Thus, the deviation from the Benchmark is likely following techniques (as a % of net assets):
to be significant. • securities lending: expected, 0-20%; max, 90%
The Sub-Fund invests in equities of companies in emerging By entering into securities lending, the Sub-Fund seeks to
markets. enhance yield on daily basis (the assets on loan will generate an
Specifically, the Sub-Fund invests at least two-thirds of net assets incremental return for the Sub-Fund).
in equities and equity-related securities of companies that are Main types of assets in scope are bonds and equities.
domiciled or do most of their business in emerging countries.
Emerging countries are generally considered low or middle The Sub-Fund uses neither securities borrowing transactions nor
income countries by the World Bank or countries included in any repos/reverse repos.
recognised emerging market index. Investment is made in All efficient portfolio management techniques will be consistent
developing countries in companies which in the Investment with the terms in “More about Efficient Portfolio Management”.
Manager’s opinion, show above average profitability,
management quality and growth. The Sub-Fund may invest in Management Process
equity securities of any market capitalisation (including small and The Investment Manager uses a strategy that combines macro-
micro-sized companies). economic, sector and companies’ specific analysis. The securities
The Sub-Fund may invest up to one-third of net assets in money selection process relies on a rigorous analysis of the companies’
market instruments, up to 10% in A Shares listed in the Shanghai business model, management quality, growth prospects and
Hong Kong Stock Connect and up to 10% in bonds, including risk/return profile.
convertible bonds and Sub-Investment Grade and/or unrated Reference Currency USD.
sovereign debt securities that might be issued or guaranteed by
any single country (including its government and any public or
local authority there). Risks
The Sub-Fund may invest up to 10% of net assets in UCITS Risk Profile High risk of capital loss.
and/or UCIs.
Risk Factors The Sub-Fund is subject to the risks described in
The Sub-Fund always aims at outperforming the ESG scoring of “General Risks”, as well as to the following specific risks
the investment universe as defined by the Benchmark, both (described in “Specific Risks”):
ESG scores of the Sub-Fund and the Benchmark being • Emerging markets risk
calculated on a weighted average basis. The AXA IM’s ESG • Derivatives and leverage risk
scoring methodology is described in the following link: • Investments in small and/or micro-capitalisation universe
https://www.axa-im.com/responsible-investing/framework-and- risk
scoring-methodology. For the sake of clarity, the Benchmark is • ESG risk
a broad market index that does not necessarily consider in its
composition or calculation methodology the ESG characteristics Sustainability Risks Given the Sub-Fund’s Investment Strategy
promoted by the Sub-Fund. and risk profile, the likely impact of the Sustainability Risks on the
Sub-Fund’s returns is expected to be medium.
The ESG analysis coverage rate within the portfolio is at least
75% of the net assets of the Sub-Fund. Method for Calculating Global Exposure Commitment
approach.
In addition, in the securities selection process, the Investment
Manager bindingly applies at all times AXA IM’s Sectorial
Exclusion and ESG Standards Policies with the exception of Additional Features
derivatives and underlying eligible UCIs, as described in the SFDR category Article 8 product
documents available on the website: https://www.axa-
NAV Calculation Frequency Daily.
Hong Kong Offering Memorandum Page 15 of 97 AXA World FundsSub-Fund Business Day Orders to subscribe, switch or redeem
Sub-Fund Shares are processed every day that is a full bank
Business Day in Luxembourg and Hong Kong.
Subscription, Switching and Redemption Orders All orders
are processed on a Forward-Forward Pricing Basis.
Investment Manager AXA Investment Managers Asia Limited
(Hong Kong SAR).
Inception 27 Nov 2007.
Maximum one-off charges taken Maximum recurrent charges taken from
when you invest the Sub-Fund over a year
Entry
Class Management Fee Applied Service Fee
Charge
A 5.50% 1.70% 0.50%
See “Notes on Sub-Fund’s Costs” following the last Sub-Fund Description. As at the date of the Hong Kong Offering Memorandum, Class A Capitalisation (USD) and Class A
Capitalisation (EUR) are available to Hong Kong investors.
Hong Kong Offering Memorandum Page 16 of 97 AXA World FundsAXA World Funds —
Framlington Evolving Trends
Investment Objective and Strategy some cases are internally developed. They are subjective and
may change over time. Despite several initiatives, the lack of
Objective harmonised definitions can make ESG criteria heterogeneous.
To seek both long-term growth of your investment, in USD, and a As such, the different investment strategies that use ESG criteria
sustainable investment objective, from an actively managed listed and ESG reporting are difficult to compare with each other.
equity, equity-related securities and derivatives portfolio, in line Strategies that incorporate ESG criteria and those that
with a socially responsible investment (SRI) approach.. incorporate sustainable development criteria may use ESG data
that appear similar but which should be distinguished because
Investment Strategy their calculation method may be different.
The Sub-Fund is actively managed in order to capture The Sub-Fund invests essentially in equities of companies
opportunities in worldwide equity markets, by mainly investing in anywhere in the world.
equities of companies that are part of MSCI AC World Total Specifically, the Sub-Fund invests essentially (i.e. at least 66% of
Return Net Index (the “Benchmark”) universe. As part of the net assets) in equities and equity-related securities of high quality
investment process, the Investment Manager has broad companies selected by reference to factors including, but not
discretion over the composition of the Sub-Fund’s portfolio and limited to, earnings potential (e.g. gross and net margins), level of
can take, based on its investment convictions, large overweight or free cash flow, balance sheet structure and sustainable or
underweight positions on the countries, sectors or companies improving profitability to identify upside potential worldwide
compared to the Benchmark’s composition and/or take exposure benefiting from one or more of the following five major growth
to companies, countries or sectors not included in the Benchmark, themes that are deemed by the Investment Manager to
even though the Benchmark constituents are generally demonstrate future growth potential for equity investors: (i)
representative of the Sub-Fund’s portfolio. Thus, the deviation ageing and lifestyle; (ii) automation; (iii) CleanTech (i.e. energy
from the Benchmark is likely to be significant. For the sake of transition and natural resource optimisation); (iv) connected
clarity, the Benchmark is a broad market index which is not consumer (i.e. e-commerce value chain and digital
aligned with the sustainable investment objective of the Sub- transformations); and (v) transitioning societies (i.e. the
Fund, but is used as a reference for its financial objective. economic inclusion and changing consumption patterns in
The Sub-Fund seeks to achieve its objective through investments both developed and in particular emerging markets). The Sub-
in sustainable securities that have implemented good practices in Fund may invest up to 100% of net assets in equity securities
terms of managing their environmental impacts, governance and of any capitalisation (including small and/or micro-capitalisation)
social (“ESG”) practices, by using a socially responsible
investment ‘selectivity’ approach taking into account non- and in any market (including emerging markets) or sector.
financial criteria which consists of selecting best issuers in the The Sub-Fund may invest up to 10% in convertible securities and
investable universe based on their extra-financial ratings with a up to 10% in A Shares via the Shanghai Hong Kong Stock
focus on the Environment pillar (“E scores”). The ‘Best-in- Connect.
universe’ selectivity approach, which is bindingly applied at all
times, consists in reducing by, at least, 20% of the investment The Sub-Fund’s available cash is invested with the objective of
universe as defined by the Benchmark, by excluding non-ESG achieving liquidity and security. The Sub-Fund may invest up to
compliant issuers based on AXA IM’s Sectorial Exclusion and 10% of net assets in money market instruments, money market
ESG Standards Policies and the worst issuers based on AXA UCITS and deposits.
IM’s ESG scoring methodology, in particular, the worst issuers
based on their E scores (where applicable, to the exception of The Sub-Fund may invest up to 10% of net assets in UCITS
bonds and other debt securities issued by public issuers, cash and/or UCIs.
held on an ancillary basis and Solidarity Assets).
For illustrative purpose only, the ESG criteria may be carbon Derivatives and Efficient Portfolio Management
footprint and/or water intensity for the environmental aspect, Techniques
health, safety and/or management of human resources and The Sub-Fund may use derivatives for efficient portfolio
gender equality for the social aspect, remuneration policy and/or management.
global ethics for the governance aspect.
For the avoidance of doubt, the Sub-Fund’s net derivative
The scope of the eligible securities is reviewed every 6 months
at the latest, as described in the transparency code of the Sub- exposure may be up to 50% of the Sub-Fund’s net asset value.
Fund available at https://www.axa-im.com/fund-centre. The net derivative exposure is calculated in accordance with the
SFC Code on Unit Trusts and Mutual Funds and the requirements
In the securities selection process, the Investment Manager and guidance issued by the SFC which may be updated from time
bindingly applies at all times AXA IM’s Sectorial Exclusion and to time.
ESG Standards Policies with the exception of derivatives and
underlying eligible UCIs, as described in the documents The Sub-Fund does not use total return swaps.
available on the website: https://www.axa-im.com/responsible- All derivatives usage will be consistent with the terms in “More
investing/sector-investment-guidelines. about Derivatives”.
The ESG analysis coverage rate within the portfolio is at least For the purpose of efficient portfolio management, the Sub-Fund
90% of the net assets of the Sub-Fund, with the exception of uses, as part of its daily investment management activity, the
bonds and other debt securities issued by public issuers, cash following techniques (as a % of net assets):
held on an ancillary basis, and Solidarity Assets. The AXA IM’s • securities lending: expected, 0-20%; max, 90%
ESG scoring methodology is described in the following link:
https://www.axa-im.com/responsible-investing/framework-and- By entering into securities lending, the Sub-Fund seeks to
scoring-methodology. enhance yield on daily basis (the assets on loan will generate an
incremental return for the Sub-Fund).
The ESG data used in the investment process are based on
ESG methodologies which rely in part on third party data, and in Main types of assets in scope are equities.
Hong Kong Offering Memorandum Page 17 of 97 AXA World FundsYou can also read
