11th December 2012

AXA Sterling Credit Short Duration Bond Fundg

Nicolas Trindade, Fund Manager

Robert Bailey Head of UK SalesRobert Bailey, Head of UK Sales

This communication is for professional advisers only and must not be relied upon by retail clients. Circulation must be restricted accordingly.

AXA Sterling Credit Short Duration Bond Fund

Nicolas Trindade, CFA – Lead Portfolio Manager

Joined AXA IM in 2006

Sterling Credit Portfolio Manager running both retail and institutional funds, with responsibility for coverage of the Insurance sector within our credit research organisationour credit research organisation

Also Deputy Portfolio Manager for the AXA flagship Sterling Corporate Bond and Sterling Strategic Bond funds

Holds a Master’s degree in IT Engineering from TELECOM SudParis (France) and is a CFA charterholder

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Source: AXA IM as at 30/11/2012.

The London based investment team

Theo ZemekGlobal Head of Fixed Income

Graham NicolGlobal Head of Credit

Chris IggoChief Investment Officer

James GledhillGlobal Head of High Yield

Sterling Inflation, Aggregate

& RatesSterling Credit European & Global

High Yield

A stable investment team with an average experience of 15 years

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Source: AXA IM as at 30/11/2012.

A stable investment team with an average experience of 15 years

AXA Sterling Credit Short Duration Bond Fund

Aims to provide consistent and incremental returns, by:

Focussing on income generation and capital preservation

Reducing volatility Reducing volatility

Maximising risk-adjusted yield

An actively managed non-benchmark driven strategy

Superior risk-adjusted opportunitiesSuperior risk adjusted opportunities

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Fund characteristics

Investment objective To generate a yield in excess of cash whilst limiting volatility

Investment universe Predominantly short-dated sterling-denominated investment grade corporate bonds (maturity <5 years). Any non-sterling exposure is hedged back to sterling

Size £67 0mSize £67.0m

Yield to worst1 1.71%

Underlying yield1 2.80%

Duration2 2.24 years

Average rating3 A-

Split GBP / EUR 94% / 6%Split GBP / EUR 94% / 6%

Number of holdings 97

Source: AXA IM / State Street as at 30/11/2012. (1) Yield is for the Z shareclass, net of fees & tax. (2) Duration calculations include cash held within the portfolio, use the next-call method for all Financials in the portfolio and duration-to-worst for all other holdings. (3) Average rating is based on the portfolio of assets and is calculated using the worst of S&P, Moody’s and Fitch. Data is unaudited and sourced from our front office portfolio management system, ThinkFolio®. Please note that the yield calculations are based on the portfolio of assets and may NOT be representative of what clients invested in the fund may receive as a distribution yield.4 16236

Fund performance

Cumulative performance since inception (net of management fees):

Yearly performance

2011 2.55%

YTD 2012 6.45%

PerformancePerformance

1 Month 0.18%

3 Months 1.21%

6 Months 3.61%

1 Year 7 50%1 Year 7.50%

Since launch 9.00%

Strong performance in line with investment objective

5

Source: AXA IM as at 30/11/2012. Performance is presented net of fees and gross of tax, for the Z share class since its launch in November 2010. Cumulative performance has been rebased to 100. Past performance is not a guide to future performance.

Strong performance in line with investment objective

Fund performance and the investable universe

Performance since inception (gross of management fees):

Annualised FundShort-dated £

Credit universe*

Performance 4.82% 5.84%

Volatility 1 86% 3 49%Volatility 1.86% 3.49%

Ratio 2.58 1.67

Up-market capture ratio: 68%

Down-market capture ratio: 36%o a et captu e at o 36%

Strong risk-adjusted performance driven by active managementSource: AXA IM as at 30/11/2012. *BofA ML Sterling Corporate & Collateralized 1-5 Yrs Index (UC0V). Performance is presented gross of fees & tax, for the Z share class since its launch in November 2010. The fund has no formal benchmark; UC0V is shown for comparative purposes only. **Cumulative performance has been rebased to 100. Past performance is not a guide to future performance.

Strong risk adjusted performance driven by active management

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The key tension is between the strong liquidity provided by central banks / supportive supply & demand balance…

Government yield vs Credit spreads European IG weekly fund flowsGovernment yield vs. Credit spreads European IG weekly fund flows

Central banks actions & strong technicals have been driving spreads tighter and yields lowerdriving spreads tighter and yields lower

Source: AXA IM / Bloomberg / Morgan Stanley research as at 30/11/2012. *BofA Merrill Lynch Sterling Corporate & Collateralized Index.

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… and the weak macro backdrop & deteriorating fundamentals

Weak macro backdrop starts impacting top-line results with disappointing revenue trends and weak guidance

Source: AXA IM as at 06/12/2012.

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European sovereign concerns are being translated into the credit world

Volatility is likely to continue and diversification is paramounty y pSource: AXA IM / Bloomberg as at 30/11/2012.

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Investment grade corporates are resilient

Announced M&A transactions (last 12 months) Net leverageAnnounced M&A transactions (last 12 months) Net leverage

Corporates still cautious, with a focus on balance sheet strengthp gSource: AXA IM / Morgan Stanley research as at 03/12/2012.

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Banks are on the road to recovery

Core T1 Ratio Loans to deposit ratioCore T1 Ratio Loans to deposit ratio

Focus on de-risking, deleveraging and balance sheet strengthg g g gSource: AXA IM / Morgan Stanley research as at 29/10/2012.

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Challenging liquidity in the Sterling corporate bond market

Primary dealer holdings of corporate bonds

Minimising transaction costs is paramountg pSource: AXA IM / Morgan Stanley Research as at 03/12/2012.

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Our investment views in action

- Steep gilt curve

- Cash being invested in the 3-

- Successful LTROs providing

liquidity for banks

- Increasing exposure to senior- Bearish view on Europe

- Decreasing exposure to financials

and peripheral countries

5yrs bucket- Increasing exposure to senior

financials

OOption Adjusted Sppread (O

AS)

Active sector allocation is a positive contributor to performanceSource: AXA IM / Bloomberg as at 30/09/2012. Totals may not add up to 100% due to rounding.

Active sector allocation is a positive contributor to performance

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Multi-dimensional diversification and attractive liquidity profile

49%50%

60%

Breakdown by maturity Breakdown by country

38%40%

45%

37%

30%

40%

50%

26%

20%

25%

30%

35%

1%

14%

0%

10%

20%

Cash 0-1 Years 1-3 Years 3-5 Years

1%

13% 13%

8%

0%

5%

10%

15%

Cash UK US W. Europe P. Europe Other

LT2, 9%

28%

25%

30%

Breakdown by sector*

Senior, 19% 10%13%

11%

4%

15%

4%7%

5%

10%

15%

20%

1%3% 3%

4%<1%

4%

0%

5%

Source: AXA IM as at 30/11/2012. *ML Level 3 breakdown for Financials and Industrials; ML Level 2 breakdown for the remainder of the fund. TMT: Technology, Media, Telecommunications. All breakdowns exclude currency forwards and futures. Data is unaudited and sourced from our front office portfolio management system, ThinkFolio®.

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Disclaimer

This communication is intended for Investment Professional use only and should not be relied upon by retail clients. Circulation must be restricted accordingly. Any reproduction of this information, in whole or in part, is prohibited.

This communication does not constitute an offer to sell or buy any units in the Fund. It should not be regarded as an offer, solicitation, invitation or recommendation to subscribe for any AXA investment service or product and is provided to you for information purposes only. The views expressed do not constitute investment advice and do not necessarily represent the views of any company within the AXA Investment Managers Group and may be subject to change without notice. No representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy reliability or completeness of the information contained hereinthe accuracy, reliability or completeness of the information contained herein.

Information relating to investments may have been based on research and analysis undertaken or procured by AXA Investment Managers UK Limited for its own purposes and may have been made available to other expertises within the AXA Investment Managers Group who in turn may have acted upon it. Whilst every care is taken over these comments, no responsibility is accepted for errors and omissions that may be contained therein It is therefore not to be taken as a recommendation to enter into any investment transactions Information in this document may be updatedtherein. It is therefore not to be taken as a recommendation to enter into any investment transactions. Information in this document may be updated from time to time and may vary from previous or future published versions of this document.

AXA Investment Managers does not offer legal, investment, tax or other advice on the suitability of these funds or services for investors, who should take appropriate professional advice and make their own assessment of the merits, risks and tax consequences prior to investing. The value of investments and the income from them can fluctuate and investors may not get back the amount originally invested. Past performance is not y g g y pnecessarily indicative of future returns. Target returns and volatility are not guaranteed. Investment returns may be subject to foreign currency exchange risks. Investments in newer markets and smaller companies offer the possibility of higher returns but may also involve a higher degree of risk.

Issued by AXA Investment Managers UK Limited which is authorised and regulated by the Financial Services Authority. Registered in England and y g g y y g gWales No: 01431068. Registered Office: 7 Newgate Street, London EC1A 7NX. Telephone calls may be recorded for quality assurance purposes.

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