AXA SPREAD PLUS VEREENVOUDIGD PROSPECTUS
Conform de Europese normen
DEEL A - STATUTAIR
Beknopte voorstelling: ISIN-codes: Aandelen van de klasse "A": FR0010202671 (kapitalisatie) Aandelen van de klasse "NL": FR0010408682 (kapitalisatie) Naam: AXA SPREAD PLUS Juridische vorm: GBF naar Frans recht Compartiment/paraplufonds: NEE/NEE Beheersmaatschappij: AXA INVESTMENT MANAGERS PARIS Financieel, administratief en boekhoudkundig beheerder: AXA INVESTMENT MANAGERS PARIS Boekhoudkundig beheerder en middle-office bij volmacht: STATE STREET BANQUE SA Bewaarder: BNP - PARIBAS SECURITIES SERVICES Financieel Commissaris: MAZARS & GUERARD Verdeler: AXA INVESTMENT MANAGERS PARIS
Informatie betreffende de beleggingen en het beheer: Classificatie: geldmarkt-ICBE in euro Beheerdoelstelling: De doelstelling van het GBF bestaat erin om over zijn aanbevolen beleggingsduur (beleggingshorizon van ten minste 6 maanden) een beter rendement te behalen dan de EURIBOR-index gekapitaliseerd op 3 maanden plus 30bp. Referentie-index: De referentie-index van het GBF is de EURIBOR gekapitaliseerd op 3 maanden. De EURIBOR of Euro Interbank Offered Rate is het interbancaire tarief dat geboden wordt tussen vooraanstaande banken voor de vergoeding van deposito's in de eurozone. Aangezien de ICBE geen indexbeheer hanteert, kunnen de prestaties van de ICBE aanzienlijk afwijken van de referentie-index. Beleggingsstrategie: 1. Gebruikte strategieën: Het beheer bestaat er voornamelijk in om verschillende beleggingsstrategieën en/of arbitragetechnieken toe te passen op de belangrijkste rente- en kredietmarkten van de lidstaten van de OESO, uitgedrukt in euro of in een andere valuta. In geval van een positie in effecten die in een andere valuta zijn uitgedrukt dan de euro, wordt het wisselkoersrisico afgedekt.
1
De strategie van het GBF is - met inachtneming van een minimum en maximum van 0 tot 0,5 voor wat de gevoeligheid ten aanzien van het renterisico betreft - i) het dynamische beheer, hetzij direct, hetzij via financiële termijninstrumenten (in het bijzonder kredietderivaten), van een portefeuille van kredieteffecten (Euro Medium Term Notes, effecten die het resultaat zijn van effectisering, obligaties, geldmarktinstrumenten, ...) van vooraanstaande emittenten die voor aankoop over een ‘Investment Grade’rating beschikken (d.w.z. waarvoor het risico dat de emittent in gebreke blijft gering is) of die naar het oordeel van de beheermaatschappij vergelijkbare kenmerken vertonen, ii) en gebruik te maken van arbitragemogelijkheden toegespitst op het kredietrisico van de emittenten. Het beheerteam bepaalt volledig naar eigen goeddunken en al naargelang zijn eigen verwachtingen de spreiding van het GBF tussen de verschillende bovenvermelde strategieën. Ook de positie in emittenten wordt bepaald volgens de micro- en macro-economische vooruitzichten van de beheermaatschappij (groeiniveau, niveau van de schuldenlast, niveau van de inflatie...) en op basis van de resultaten van het kredietonderzoek naar emittenten (analyse op basis van kwantitatieve gegevens zoals omzet, schuldenlast etc., of kwalitatieve gegevens zoals notering, kwaliteit van het management van de emittenten). Financiële termijninstrumenten worden gebruikt binnen de limiet van één maal de nettoactiva. Deze instrumenten kunnen worden ingeschakeld om de portefeuille een positie of overwogen positie te bezorgen ten aanzien van het kredietrisico of te beschermen tegen het risico dat bepaalde emittenten in gebreke blijven (contracten voor de aankoop of verkoop van beschermingen via kredietderivaten op een of meerdere emittenten, of op indices), om de gevoeligheid van de portefeuille ten aanzien van het renterisico in de hand te houden, ofwel als dekking voor de risico's die gepaard gaan met de rentevoeten of om een positie of een overwogen positie in te nemen ten aanzien van de renterisico's en/of bepaalde van hun parameters of onderdelen. Financiële termijninstrumenten kunnen eveneens worden gebruikt om te profiteren van de kenmerken (in het bijzonder qua liquiditeit en prijs) van deze instrumenten ten opzichte van de financiële instrumenten waarin het GBF direct belegt, of om aanpassingen door te voeren als gevolg van inschrijvingen en terugkopen zodat de positie of de dekking in overeenstemming met de hierboven vermelde gevallen kan worden gehandhaafd. De ICBE kan tot 10% van zijn activa houden in deelbewijzen of aandelen van Franse of Europese gecoördineerde ICBE's met als doel een positie te verkrijgen in verscheidene aandelenklassen, gebruikmakend van de expertise van gespecialiseerde beheerteams, en de liquide middelen te beleggen via geldmarkt-ICBE's. De ICBE kan eveneens beleggen in deelbewijzen of aandelen van ICBE's, ICB's of beleggingsfondsen. Alle gebruikte instrumenten worden vermeld in de gedetailleerde nota. Overigens worden de liquide middelen van het GBF belegd met het oog op liquiditeit, veiligheid en rendement. Ze worden enerzijds beheerd door de aankoop van Franse geldmarktinstrumenten en van effecten uitgegeven op buitenlandse geldmarkten en uitgedrukt in euro of in een andere valuta, die al dan niet op een gereglementeerde markt worden verhandeld, en anderzijds door de tijdelijke verkoop of aankoop van effecten. Alle gebruikte activa worden vermeld in de gedetailleerde nota. Risicoprofiel: Uw geld zal hoofdzakelijk worden belegd in financiële instrumenten geselecteerd door de beheermaatschappij. Deze instrumenten ondergaan de ontwikkelingen en wisselvalligheden van de markt. Algemene opmerking: Het risicoprofiel van het GBP is afgestemd op een beleggingshorizon van meer dan 6 maanden. Net als bij elke andere financiële belegging moeten potentiële beleggers zich bewust zijn van het feit dat de waarde van de activa van de ICBE afhankelijk is van de marktschommelingen en bijgevolg sterk kan variëren (naargelang de politieke, economische en beurssituatie of de specifieke situatie van de emittenten). Blootstelling aan het aandelenrisico is verboden.
2
De vereffeningswaarde van deze ICBE zou regelmatig moeten stijgen aangezien de ICBE een geldmarktfonds is. De Beheermaatschappij garandeert de inschrijvers echter niet dat zij geen verliezen zullen lijden door hun belegging in deze ICBE. Beleggers krijgen het belegde kapitaal mogelijk niet volledig terug. Door een belegging in het GBF wordt de houder voornamelijk blootgesteld aan de hieronder beschreven risico's. De onderstaande opsomming is niet volledig: de beleggers moeten het risico van elke belegging analyseren en zich een eigen oordeel vormen. 1 – Het renterisico: Het renterisico is het risico op een schommeling van de rentevoeten, wat een invloed heeft op de obligatiemarkten. De prijs van een obligatie evolueert bijvoorbeeld doorgaans omgekeerd evenredig met de rentevoeten. De ICBE is voornamelijk belegd in geldmarktinstrumenten. In geval van een stijging van de rentevoeten kan de waarde van de belegde vastrentende activa dalen. 2 - Kredietrisico: Indien de emittenten van bedrijfsobligaties in gebreke blijven of indien hun kwaliteit achteruitgaat (bijvoorbeeld een daling van hun notering), kan de waarde van de schuldeffecten waarin de ICBE is belegd, dalen. 3 – Risico's in verband met kredietderivaten: Indien er gebruik wordt gemaakt van kredietderivaten, zijn de prestaties van het GBF direct gekoppeld aan het voorkomen van kredietgebeurtenissen met een invloed op de onderliggende instrumenten bij transacties die over-the-counter worden verricht. Het GBF kan, zowel via directe beleggingen als via beleggingen in financiële termijninstrumenten met de kenmerken van kredietderivaten, tot 200% van zijn activa blootstellen aan het kredietrisico. Dit brengt het risico met zich mee dat de vereffeningswaarde van de ICBE aanzienlijker en sneller daalt dan die van de markten waarin de ICBE is belegd. 4 – Risico's in verband met het discretionaire beheer: De discretionaire beheerstijl is gebaseerd op de verwachte ontwikkeling van de rentemarkten. De prestaties van de ICBE zijn dus afhankelijk van de verwachtingen ten aanzien van de ontwikkeling van de rentecurve door de beheerder. Aangezien het een discretionair beheer betreft, bestaat het risico dat de beheerder deze ontwikkeling slecht inschat. Het is mogelijk dat het rendement van de ICBE niet overeenkomt met de doelstellingen. 5 - Risico gekoppeld aan de activa die het resultaat zijn van effectisering: De aandacht van de inschrijver wordt gevestigd op het feit dat de ICBE kan gebruikmaken van effecten die het resultaat zijn van effectisering (ABS, MBS, CDO…). Wat dit type actief betreft, loopt de ICBE een risico dat samengaat met de economische situatie van een geografisch gebied en/of een sector. Raadpleeg de gedetailleerde nota voor meer informatie over de risico's. Betrokken inschrijvers en profiel van de gemiddelde belegger: Aandelen van de klasse "A": elke inschrijver, en vooral de beleggers, die willen deelnemen aan de ontwikkeling van de monetaire markten en die tegelijk hun belegging veilig willen stellen. Aandelen van de klasse "NL": voorbehouden voor AXA NL voor de commercialisering in zijn netwerk en via contracten in rekeneenheden. Het bedrag dat redelijkerwijs kan belegd worden in dit fonds is afhankelijk van de persoonlijke situatie van elke houder. Om dit bedrag te bepalen moet elke belegger rekening houden met zijn persoonlijke vermogen, de geldende reglementering en zijn huidige behoeften over een beleggingshorizon van ten minste 6 maanden, maar ook met de mate waarin hij risico's wil nemen of integendeel een voorzichtige belegging wil
3
verzekeren. Er wordt ook sterk aanbevolen om de beleggingen voldoende te diversifiëren, zodat ze niet alleen worden blootgesteld aan de risico's van deze ICBE. De aanbevolen minimale beleggingsduur bedraagt meer dan 6 maanden.
Informatie over kosten, provisies en belastingen: Kosten en provisies: Instap- en uitstapprovisies: De instap- en uitstapprovisies komen bovenop de inschrijvingsprijs die wordt betaald door de belegger of worden afgehouden van de terugbetalingsprijs. De provisies voor de ICBE moeten de kosten compenseren die de ICBE draagt om de toevertrouwde activa te beleggen of te verkopen. De niet-verworven provisies komen toe aan de beheermaatschappij, de verdeler, enz. Kosten ten laste van de belegger bij inschrijvingen en terugkopen (houders van aandelen van de Grondslag klasse "A" of "NL") Instapprovisie niet verworven voor de ICBE Instapprovisie verworven voor de ICBE Uitstapprovisie niet verworven voor de ICBE Uitstapprovisie verworven voor de ICBE
Vereffeningswaarde deelbewijzen Vereffeningswaarde deelbewijzen Vereffeningswaarde deelbewijzen Vereffeningswaarde deelbewijzen
Barema
x
aantal Maximumtarief: 1%
x
aantal
x
aantal
x
aantal
Nihil Nihil Nihil
Operationele kosten en beheerkosten: Hiertoe behoren alle kosten die rechtstreeks aan de ICBE worden gefactureerd, met uitzondering van de transactiekosten. De transactiekosten omvatten de kosten voor tussenpersonen (makelaardij, beursbelasting enz.) en in voorkomend geval de transactieprovisie, die met name kan worden ontvangen door de bewaarder en de beheermaatschappij. De operationele kosten en beheerkosten kunnen worden vermeerderd met: resultaatsprovisies. Deze worden als beloning toegekend aan de beheermaatschappij als de ICBE haar doelstellingen heeft overtroffen. Ze worden gefactureerd aan de ICBE; transactieprovisies gefactureerd aan de ICBE; een deel van de inkomsten uit tijdelijke aankopen en verkopen van effecten. Voor meer details over de daadwerkelijk aan de ICBE gefactureerde kosten kunt u terecht in deel B van het vereenvoudigd prospectus.
4
AANDELEN VAN DE KLASSE "A"
Kosten gefactureerd aan de ICBE Operationele en beheerkosten, taksen en belastingen inbegrepen (inclusief alle kosten behalve transactiekosten, resultaatsprovisie en kosten gekoppeld aan beleggingen in ICBE's of beleggingsfondsen) Resultaatsprovisie Variabele kosten Van toepassing vanaf de oprichtingsdatum van het fonds Referentieperiode: De eerste referentieperiode begint op de dag waarop het fonds is opgericht en eindigt op de laatste beursdag van de maand december 2005. Elke volgende referentieperiode stemt overeen met het boekjaar.
Grondslag
Barema
Nettoactiva
Maximumtarief: 0,50% Deze kosten worden rechtstreeks geboekt op de resultatenrekening van het fonds
Positief verschil tussen het rendement van de ICBE en de referentie-index van ten minste 30 basispunten
Berekeningsmethode: Het verschuldigde bedrag van de variabele beheerkosten wordt berekend op elke vereffeningswaarde. .
Dienstverleners die transactieprovisies ontvangen:
Bewaarder De beheermaatschappij
5
Verdelingspercentage: 25% Er wordt een verdeling van het gerealiseerde rendement boven dat van de referentie-index van het fonds voorzien ten gunste van de beheermaatschappij, volgens de voorwaarden beschreven in de gedetailleerde nota.
Bedrag:
Afhouding transactie
bij
elke
maximaal € 50 all-in.
maximaal 3,5 basispunten
AANDELEN VAN DE KLASSE "NL"
Kosten gefactureerd aan de ICBE Operationele en beheerkosten, taksen en belastingen inbegrepen (inclusief alle kosten behalve transactiekosten, resultaatsprovisie en kosten gekoppeld aan beleggingen in ICBE's of beleggingsfondsen) Resultaatsprovisie Variabele kosten Van toepassing vanaf de oprichtingsdatum van het fonds Referentieperiode: De eerste referentieperiode begint op de dag van de creatie van het nieuwe aandeel en eindigt op de laatste beursdag van de maand december 2006. Elke volgende referentieperiode stemt overeen met het boekjaar.
Grondslag
Barema
Nettoactiva
Maximumtarief: 0,50% Deze kosten worden rechtstreeks geboekt op de resultatenrekening van het fonds
Positief verschil tussen het rendement van de ICBE en de referentie-index van ten minste 30 basispunten
Berekeningsmethod Het verschuldigde bedrag van de variabele beheerkosten wordt berekend op elke vereffeningswaarde. .
Dienstverleners die transactieprovisies ontvangen:
Bewaarder
Bedrag:
Afhouding transactie
bij
De beheermaatschappij
elke
maximaal € 50 all-in.
maximaal 3,5 basispunten
Tijdelijke aankoop en verkoop van effecten: Voor repotransacties en voor effectenleningen kan de vergoeding verdeeld worden tussen de ICBE en de beheermaatschappij. Provisies in natura: De beheermaatschappij heeft soft-commissieakkoorden afgesloten met enkele Franse en buitenlandse makelaars. Overeenkomstig deze akkoorden hanteren de makelaars informatiehulpmiddelen die ook door de beheerders worden gebruikt bij het uitoefenen van hun vak. Meer informatie vindt u in het jaarverslag van de ICBE. Belastingen: belastingstelsel van de ICBE's Als de inschrijving op de deelbewijzen van het GBF gebeurt op basis van de inschrijving op een levensverzekeringscontract, is het belastingstelsel van de levensverzekeringscontracten van toepassing op de inschrijvers.
6
Deze informatie is geen vervanging voor informatie die wordt verkregen in het kader van een individueel fiscaal advies. Waarschuwing: Het belastingstelsel dat van toepassing is op de door de ICBE uitgekeerde sommen of op de latente of gerealiseerde meer- of minderwaarden van de ICBE, hangt af van de fiscale bepalingen die van toepassing zijn op de specifieke situatie van de belegger en/of van het rechtsgebied waarin de fondsen beleggen. Houders die twijfels hebben over hun fiscale situatie, raden we aan een fiscaal adviseur te raadplegen. Commerciële informatie: Voorwaarden voor inschrijving en terugkoop: De bewaarder neemt dagelijks tot 12 uur inschrijvings- en terugkooporders aan die worden uitgevoerd op basis van de volgende vereffeningswaarde (dus tegen een onbekende koers). De inschrijvings- en terugkoopaanvragen worden gecentraliseerd bij BNP – PARIBAS SECURITIES SERVICES (BPSS), op het volgende adres: BNP – PARIBAS SECURITIES SERVICES (BPSS), 66 rue de la Victoire F-75009 Parijs Initiële vereffeningswaarde van de aandelen van de klasse "A": € 10000 Initiële vereffeningswaarde van de aandelen van de klasse "NL": € 100 Minimumbedrag van de eerste inschrijving voor de houders van aandelen van de klasse "A": Nihil. Minimumbedrag van de eerste inschrijving voor de houders van aandelen van de klasse "NL": Nihil. Modaliteiten voor de overgang van één aandelenklasse naar een andere: de nieuwe aandelenklasse is uitsluitend voorbehouden voor AXA NL. Decimalisering: Aandelen van de klasse "A": aandelen deelbaar tot een tienduizendste, uitgedrukt in euro. Aandelen van de klasse "NL": aandelen volledig uitgedrukt in euro. Afsluitingsdatum van het boekjaar: laatste beursdag van Parijs in december. Afsluitingsdatum van het eerste boekjaar: laatste beursdag van Parijs in december 2005. Bestemmingen van het resultaat: Aandelen van de klasse "A": kapitalisatie Aandelen van de klasse "NL": kapitalisatie Datum en periodiciteit voor de berekening van de vereffeningswaarde: dagelijks De vereffeningswaarde zal niet worden bepaald of gepubliceerd op beursdagen die op wettelijke feestdagen vallen. De referentiebeurskalender is die van Euronext Parijs. Plaats en voorwaarden voor publicatie of communicatie van de vereffeningswaarde: kantoren van de beheermaatschappij en de verdeler.
7
Munteenheid van de deelbewijzen: ISIN-codes
Categorieën Bestemming Betrokken rechten van van de inschrijvers deelneming inkomsten
FR0010202671 A FR0010408682 NL
Kapitalisatie Alle inschrijvers Kapitalisatie Voorbehouden
Initiële Munteenheid vereffeningswaarde 10000 Euro 100 Euro
Euro Euro
Decimalisering Minimumbedrag voor de eerste inschrijving Tienduizendsten Nihil Volledige Nihil
voor AXA NL voor de commercialisering in zijn netwerk en via contracten in rekeneenheden.
aandelen
Oprichtingsdatum: Dit GBF werd erkend door de Autorité des Marchés Financiers op 19 april 2005. Het werd opgericht op 12 mei 2005.
Bijkomende informatie: Het volledige prospectus van de ICBE en de laatste jaarlijkse en periodieke documenten worden verstuurd binnen een termijn van één week na eenvoudige schriftelijke aanvraag door de houder aan (postadres): AXA INVESTMENT MANAGERS PARIS Cœur Défense – Tour B - La Défense 4 100, Esplanade du Général de Gaulle F-92932 PARIS LA DEFENSE CEDEX Tel.: +33 (0)1.44.45.70.00 Deze documenten zijn eveneens beschikbaar op de website www.axa-im.fr Voor meer informatie kunt u contact opnemen met: AXA INVESTMENT MANAGERS PARIS Cœur Défense –Tour B - La Défense 4 – 100, Esplanade du Général de Gaulle – F- 92400 Courbevoie of surfen naar de website: www.axa-im.fr. Publicatiedatum van het prospectus: 2 juni 2008 De website van de A.M.F. (www.amf-france.org) bevat aanvullende informatie over de lijst van de reglementaire documenten en alle bepalingen betreffende de bescherming van de beleggers. Dit vereenvoudigd prospectus moet vóór de inschrijving aan de inschrijvers worden overhandigd.
8
DEEL B – STATISTIEKEN Rendement van de ICBE op 31 december 2007: Aandeel NL GBF 31/12/2007 Rendement van Axa Spread Plus van 2006 tot 2007
3,50% 3,00% 2,50% 2,00% 1,50% 1,00% 0,50% 0,00% -0,50% -1,00% -1,50% PERF NETTE
Rendement op jaarbasis AXA Spread Plus 100.00% Euribor 3 mois capi.
2006
2007
3,14%
-0,96%
1 jaar
3 jaar
5 jaar
-0.96% 4.40%
-
-
De prestatieberekening gebeurt netto van de beheersvergoeding rekening houden met de herbelegging van de nettocoupons (indien van toepassing) WAARSCHUWING EN EVENTUELE OPMERKINGEN Prestaties uit het verleden voorspellen dan ook geen toekomstige prestaties Prestaties zijn niet constant in de tijd.. De referentie indicatoren van deel A en deel B van het prospectus kunnen verschillend zijn indien er een wijziging van deze referentie indicator heeft plaatsgevonden tijdens het jaar van publicatie van de prestaties.
9
Voorstelling van de kosten ten laste van de ICBE gedurende het boekjaar afgesloten op 31/12/2006:
Operationele kosten en beheerkosten
0%
Kosten van beleggingen in andere ICBE's of beleggingsfondsen Deze kosten worden bepaald: - op basis van de kosten in verband met de aankoop van ICBE's en beleggingsfondsen - na aftrek van de retrocessie door de beheermaatschappij van de beleggende ICBE
0%
Overige kosten gefactureerd aan de ICBE Deze kosten omvatten: - resultaatsprovisies - transactieprovisies
0%
Totaal gefactureerd aan de ICBE in de loop van het laatste afgesloten boekjaar
0%
0% 0%
0% 0%
De operationele kosten en beheerkosten: Deze kosten dekken alle kosten die rechtstreeks aan de ICBE zijn gefactureerd, met uitzondering van de transactiekosten en eventueel de resultaatsprovisie. De transactiekosten omvatten de bemiddelingskosten (makelaardij, beursbelastingen…) en de transactieprovisie (zie verder). De operationele kosten en beheerkosten omvatten meer bepaald de kosten voor het financiële beheer en het administratieve en boekhoudkundige beheer, de bewaarkosten, de depotkosten en de controlekosten. Kosten voor de aankoop van ICBE's en/of beleggingsfondsen: Bepaalde ICBE's beleggen in andere ICBE's of in beleggingsfondsen naar buitenlands recht (doel-ICBE's). Door de aankoop en het houden van een doel-ICBE (of van een beleggingsfonds) is de kopende ICBE onderworpen aan de volgende twee types kosten: de inschrijvings-/terugkoopprovisies. Het deel van deze provisies verworven voor de doel-ICBE wordt bij de transactiekosten gevoegd en is hier dus niet meegerekend; rechtstreeks aan de doel-ICBE gefactureerde kosten, die indirecte kosten vormen voor de kopende ICBE. In sommige gevallen kan de kopende ICBE retrocessies onderhandelen, dat wil zeggen kortingen op bepaalde van deze kosten. Deze kortingen verminderen het kostentotaal dat de kopende ICBE daadwerkelijk draagt. Andere kosten gefactureerd aan de ICBE: andere kosten die kunnen worden gefactureerd aan de ICBE zijn: transactieprovisies. De transactieprovisie wordt de ICBE aangerekend bij elke portefeuilleverrichting. Het volledige prospectus verschaft meer details over deze provisie. De beheermaatschappij kan deze provisie ontvangen volgens de voorwaarden vermeld in deel A van het vereenvoudigde prospectus. We vestigen de aandacht van de belegger op het feit dat deze andere kosten sterk kunnen variëren van jaar tot jaar en dat de hierin voorgestelde cijfers die van het vorige boekjaar zijn.
10
Informatie over de transacties in de loop van het boekjaar afgesloten op 31/12/2006: Niet van toepassing De transacties tussen de beheermaatschappij voor rekening van de ICBE's die ze beheert en de verbonden ondernemingen vertegenwoordigden op het totaal van de transacties van dit boekjaar: Activaklassen Aandelen Schuldbewijzen
Transacties NVT NVT
WAARSCHUWING EN EVENTUELE OPMERKINGEN Deel B van het vereenvoudigde prospectus wordt elk jaar bijgewerkt, acht werkdagen na de algemene vergadering voor SICAV's, of binnen 3 en een halve maand na de afsluiting van het boekjaar voor GBF's. Met uitzondering van de cijfergegevens over de rendementen zijn de cijfers gecontroleerd door de financiële controleur.
AXA Spread Plus DETAILED MEMORANDUM I – General characteristics: I - 1 Form of the UCITS: Name: AXA Spread Plus Legal status and member-state in which the UCITS has been established: FCP governed by French law Date formed and stipulated term: 12 May 2005, for a term of 99 years. Fund overview: ISIN Codes
Unit classes
Allocation of income
Target Subscribers
Initial net asset value
Base currency
FR0010202671
A
Accumulation
All subscribers
€10000
Euro
FR0010408682
AXA NL
€100
Euro
Accumulation Reserved for AXA NL for distribution within its network and via unitlinked contracts
Minimum initial Decimalisation subscription amount None ten thousandths of units None Whole units
Address for obtaining the latest annual report and semi-annual statement:
The latest annual and semi-annual documents will be issued within one week of a simple written request to this effect submitted by the holder to the following (postal address): AXA INVESTMENT MANAGERS PARIS Cœur Défense –Tour B - La Défense 4 100, Esplanade du Général de Gaulle F-92932 PARIS LA DEFENSE CEDEX Tel.: + 33 (0)1.44.45.70.00
11
For additional information, please contact AXA INVESTMENT MANAGERS PARIS at the address indicated above or access the following web site: www.axa-im.fr. I - 2 Players: Management company: AXA INVESTMENT MANAGERS PARIS, portfolio management company, Cœur Défense – Tour B - La Défense 4 – 100, Esplanade du Général de Gaulle – F-92400 Courbevoie, approved by the French Financial Markets Authority (AMF) under authorisation n° GP 92-08 dated 7 April 1992. Keeper and custodian: BNP – PARIBAS SECURITIES SERVICES (BPSS), Société Anonyme – 3, rue d’Antin – F-75078 Paris Cedex 02/ Postal address: 66 rue de la Victoire, F-75009 Paris. BNP – PARIBAS SECURITIES SERVICES (BPSS) is a credit institution approved by the CECEI (Comité des Etablissements de Crédit des Entreprises d’Investissement). This institution also acts as book-runner for the FCP for the purposes of issue and centralisation (postal address: 66, rue de la Victoire, - F-75009 Paris).
12
Auditor: MAZARS & GUERARD – Exaltis - 61, rue Henri Regnault – 92400 Courbevoie. Promoter: AXA INVESTMENT MANAGERS PARIS, Portfolio Management Company, Cœur Défense – Tour B – La Défense 4 - 100, Esplanade du Général de Gaulle, F-92400 Courbevoie. Additional information is available on the following website: www.axa-im.fr. AXA INVESTMENT MANAGERS PARIS may delegate the marketing of FCP units to third parties duly authorised by it. As the FCP is registered with Euroclear France, its units may be subscribed or redeemed via financial intermediaries not known to the Management Company. Financial, Administration and Accounts Manager: AXA INVESTMENT MANAGERS PARIS, Portfolio Management Company, registered office at Cœur Défense – Tour B – La Défense 4 - 100, Esplanade du Général de Gaulle, F-92400 Courbevoie, as approved by the AMF under no. GP 92-08 on 7 April 1992, will manage the financial, administrative, accounting and middle-office functions of the FCP. AXA INVESTMENT MANAGERS PARIS delegates the FCP accounting & middle office functions to: STATE STREET BANQUE SA, société anonyme, situated at Défense Plaza – 23 – 25, rue Delarivière – Lefoullon – 92064 Paris La Défense Cedex, entered in the Paris Trade and Companies Register as no. 381 728 724. STATE STREET BANQUE SA is a subsidiary of STATE STREET BANQUE. STATE STREET BANQUE is a credit institution approved by the CECEI (Comité des Etablissements de Crédit et des Entreprise d’Investissement) on 28 February 1997 and by the Conseil des Marchés Financiers (subsequently the AMF, French Financial Markets Authority) on 21 July 1997 under authorisation no. GP 97-44. AXA INVESTMENT MANAGERS PARIS does not delegate the FCP’s financial management and administrative functions.
II – Conditions of operation and management II – 1 General characteristics: Characteristics of the units: ISIN Codes: “A” units: FR0010202671 (accumulation) “NL” units: FR0010408682 (accumulation) Nature of rights attached to the class of units: each unit-holder has a co-ownership right on the FCP assets proportionate to the number of units held. Entry in a register or liabilities accounting procedure: all units are in bearer form. There is therefore no requirement to keep a register. The issue account is maintained by BNP- PARIBAS SECURITIES SERVICES (custodian). Voting rights: given that the FCP is a co-ownership of transferable securities, no voting rights are attached to units held. The FCP is managed by the management company on the unit-holder’s behalf.
13
However, any changes in the operation of the FCP are notified to unit-holders individually, in the press or by any other means in accordance with Instruction 2005-02 of 25 January 2005 and any subsequent amendments. Form of units: bearer. Decimalisation: “A” units: units divided into fractions of up to ten thousandths of units and denominated in euro. “NL” units: whole units denominated in euro. Year-end: last trading day in December on the Paris stock exchange. The first accounting year will end on the last trading day in December 2005 on the Paris stock exchange. Applicable tax regime: The FCP shall be subject to the general tax regime applicable to UCITS. The tax regime applicable to dividends and realised or unrealised gains or losses shall depend on the legal status and fiscal residence of investors. If the subscription of FCP units falls within the scope of a life assurance policy, subscribers shall be subject to the tax regime applicable to life assurance policies. This information is not intended to substitute information provided within the scope of a personal tax consultation.
II – 2 Specific provisions: Classification: Monetary euro UCITS Investment objective: The FCP’s objective is to outperform the EURIBOR 3 months capitalised index plus 30bp, over the recommended investment period (investment horizon of a minimum of 6 months). Benchmark indicator: The FCP’s benchmark indicator is the EURIBOR 3 months capitalised index. The EURIBOR 3 months capitalised index is calculated on the basis of the EURIBOR. The EURIBOR or European Interbank Offered Rate is the interbank rate offered among prime banks for the remuneration of deposits in the euro zone. The EURIBOR is calculated by taking a daily average of offered rates on 13 maturities notified by a panel of 57 of the most active banks in the euro zone. It is calculated on a 360-day basis and published at 11 a.m., providing that at least 50% of the panel banks have actually contributed. The average is taken after elimination of 15% of the extreme quotations (the eliminated number is always rounded upwards or downwards) and expressed in the form of three decimals. Given that management of the UCITS is not indexed, the performance of the UCITS may differ significantly from the benchmark indicator.
14
Investment strategy: 1.
On the strategies used:
The strategy primarily involves the implementation of a number of investment and/or arbitrage strategies on leading bond and lending markets of OECD member-states, denominated in euro or other currencies. In the event of exposure on stock denominated in currencies other than the euro, the foreign exchange risk will be covered. The strategy adopted by the FCP - observing an interest rate sensitivity range of between 0 and 0.5 involves i) dynamic management, directly or through the use of forward financial instruments (in particular credit derivatives), of a portfolio of quality credit instruments meeting the “Investment Grade” category on purchase or presenting similar characteristics in the view of the management company, ii) and the availing of arbitrage opportunities centred on issuer credit risks. According to the rating agencies, issuers of “Investment Grade” rating correspond to a rating of between AAA and BBB- on the Standard and Poors scale or AAA and Baa3 on the scale applied by Moody’s or equivalent rating produced by other rating agencies. From this perspective, the management team may opportunistically implement the strategies described below, on the understanding that the allocation of the FCP among the following strategies is decided on an entirely discretionary basis in line with their forecasts:
1. Credit-centred investment strategies: •
• •
Active management of the issuer credit risk through a credit allocation and issuer selection based on a discretionary management process combined with a search for prime papers. Selection and allocation are based on the micro and macro economic forecasts of the management company (growth level, level of deficits, inflation level, etc.) and recommendations arising from credit research on issuers (micro and macro economic analysis based on essential data (quantitative (sales, indebtedness, etc.) or qualitative data (rating, management qualities, etc.)). Strategy of positioning on the issuer credit curve: strategy of investment on an issuer’s credit curve through discretionary selection of the investment maturity. Credit and sector allocation strategies through the implementation of strategies centred on the relative value of credit instruments and/or sectors of all kinds, or between sectors.
2. Strategies involving exposure to or hedging against the issuer credit risk through the use of futures financial instruments, and in particular credit derivatives (CDS…): •
Strategy involving the purchase or sale of protection through credit derivatives on one or more issuers or reference entities, intended, in the event of sale of protections, to expose the portfolio to credit risks and, in the case of purchase of protections, to guard against or anticipate deterioration in one or more issuers or reference entities. These transactions, entered into in the interests of the attainment of investment objectives, are essentially exchange contracts based on the risk of default (“credit default swaps", "first-to-default" or "first loss basket"), on the credit margin ("credit spread forward", "credit spread options") and exchange contracts on total return ("total return swap").
3. Arbitrage strategies centred on the issuer credit risk, in particular through the use of futures financial instruments, and specifically credit derivatives (CDS…): -
15
Arbitrage on the curve of a single issuer Arbitrage between sectors of all kinds, or between an issuer and his sector Arbitrage between different investment media of a single issuer
Basic trade (negative or positive): arbitrage on the difference in price of a single issuer or single reference entity through the physical possession and concomitant negotiation of a credit derivative
2. Assets: Equities: The FCP may not trade on equities markets. Debt securities and money market instruments: The FCP invests in and/or is exposed to bond or credit products in the euro zone or euro-denominated. The FCP may also invest in or be exposed to non-euro denominated bond and/or credit products, in which case the foreign exchange risk is covered. The FCP will invest only in Investment Grade financial products on purchase, i.e. with a minimum rating on purchase of BBB- on the Standard and Poors scale (or Baa3 on the scale applied by Moody’s or equivalent rating produced by other rating agencies). However, the management company retains a subsidiary option of investment in non-rated stock. Up to 100% of the UCITS’ assets may therefore be invested in: - French money market instruments or stock issued on foreign money market denominated in euros or other currencies, traded on regulated markets, in particular: o Euro Medium Term Notes indexed on short-term references o certificates of deposit o commercial paper o Treasury bills - Asset-Backed Securities, for example: - Residential Mortgage Backed Securities (“RMBS”) or stock resulting from the securitisation of residential mortgage loans, - Commercial Mortgage Backed Securities (“CMBS”) or stock resulting from the securitisation of commercial mortgage loans, - Stock resulting from the securitisation of consumer loans (personal loans, student loans, credit card debts, car loans), - Stock resulting from the securitisation of lease agreements, or other corporate assets - Collateralised Debt Obligations (“CDOs”) or stock resulting from the securitisation of corporate or Government debts and/or credit risks or other securitisation operations. - Bonds or debt securities issued or guaranteed by OECD member-States in or outside the euro zone. - Bond or debt securities issued by public or private bodies of OECD Member States in or outside the Euro Zone, of minimum “Investment Grade” rating on purchase (BBB- on the Standard and Poors scale” or Baa3 on the Moody’s scale or equivalent rating from other rating agencies). - Convertible or inflation-linked bonds or debt securities. The UCITS may also invest up to 10% of its assets in: Euro Commercial Papers Government or non-Government bonds or debt securities from non-OECD countries. Risk indicator: The portfolio is managed within an interest-rate sensitivity range between 0 and 0.5.
16
--------------Exceptionally, the UCITS may invest (up to a limit of 10% of its assets) in the following: warrants, shortterm notes, promissory notes, mortgage notes or financial instruments referred to in Article R-214-1 of the French Monetary and Financial Code (Code Monétaire et Financier), not meeting the conditions laid down in Article R-214-2 (Unlisted securities). Shares or units in UCITS or investment funds: The FCP may hold up to 10% of its assets in shares or units in coordinated French or European UCITS. Investment in UCITS or Investment Funds exposes the FCP to diversified classes of assets and thereby allows it to benefit from the expertise of specialist management teams. The UCITS may have any classification, but cannot be exposed to equity risks. UCITS are also used to invest cash items in monetary UCITS. Up to this 10% limit, the FCP may also invest in the following UCITS or investment funds: - shares or units in investment funds subject to foreign law meeting the criteria laid down in the General Regulations of the Financial Markets Authority - shares or units in feeder UCITS, UCITS with simplified investment rules, with or without gearing, UCITS of alternative funds, UCITS with simplified procedures, contractual UCITS, UCITS or investment funds themselves invested, in the amount of over 10%, in shares or units in undertakings for the collective investment of transferable securities or investment funds of UCITS. These UCITS and investment funds may be administered by companies in the AXA Group.
3. Derivatives: To achieve the investment objective, the FCP may invest in the following derivatives in a proportion not exceeding the total value of its assets: Types of markets: Regulated; Organised; Over-the-counter. Risks on which the manager wishes to trade (either directly or through the use of indices): Equity risk; Interest rate risk; Foreign exchange risk (hedging against currency risk); Credit risk; Other risks (specify). Type of intervention (all dealing to be restricted to attainment of investment objective): Hedging; Exposure; Arbitrage; Other (specify). Nature of instruments used: swaps, caps, forward and other futures financial instruments designed to hedge against interest-rate and foreign exchange risks; forward foreign exchange designed to hedge against foreign exchange risks; total return swaps, credit default swaps and other forward financial instruments having the characteristics of credit derivatives hedging against or exposed to the credit risk;
17
•
Strategy of use of derivatives to achieve investment objective:
The FCP may have recourse to forward financial instruments in a proportion not exceeding the total value of its net assets. The use of such instruments may be intended to hedge the portfolio against risks associated with any market, asset, index, instruments, economic and/or financial parameter, apply adjustments as a result of movements in subscriptions and redemptions and/or adapt to certain market conditions (improved liquidity or efficiency of forward financial instruments, for example) acquire exposure or over exposure, in line with the manager's forecasts, to interest-rate and credit risks, always in the interests of attainment of the investment objective. The purpose may therefore be exposure in the form of direct investment or through recourse to forward financial instruments on bond and international credit markets up to a limit of 200% of the value of the assets. 4. Securities with embedded derivatives: The FCP may have recourse to securities with embedded derivatives up to a limit of 100% of the value of net assets. The strategy of recourse to securities with embedded derivatives is the same as that described for derivatives. This relates, for example, to stock purchase and other warrants. 5. Deposits For cash management purposes, the FCP may invest up to 100% of its net assets in deposits with one or more credit institutions. 6. Cash borrowings Within the scope of normal operations, the FCP may on occasion be in a debit position and resort to cash borrowings to a value not exceeding 10% of its assets. 7. Temporary purchases and sales of securities Temporary purchases or sales of securities may take place in accordance with the French Monetary and Financial Code (Code Monétaire et Financier). This must take place within the scope of cash management and/or optimisation of the FCP’s income. These transactions shall consist of advances and loans of securities and/or repurchase and reverse repurchase agreements. Temporary sales of securities (securities lending, repurchase agreements) may be executed on up to 100% of the assets of the UCITS. Temporary purchases of securities (securities loans, reverse repurchase transactions) may be executed on up to 10% of the assets of the FCP. This limit may be increased to 100% in the case of reverse repurchase agreements against cash, providing that the financial instruments involved are not subject to any sale transaction. Additional information on the fees applicable to temporary purchases and sales of securities is provided in the section entitled fees and commissions.
18
Your money will be invested primarily in financial instruments selected by the management company. These instruments will be subject to market fluctuations and contingencies. Risk profile: General Considerations: The FCP’s risk profile is suitable for a minimum investment period of 6 months. Like any financial investment, potential investors must be aware that the value of assets in the UCITS is subject to market fluctuations and may vary substantially (in line with political, economic or stock market conditions or the specific situation of issuers). Exposure to equity risks is prohibited. The net asset value of this UCITS is expected to appreciate regularly by virtue of its monetary classification; the management company is however unable to guarantee that subscribers will not suffer losses as a result of the investment in this UCITS and the capital invested may not be fully recouped. Subscribers to this FCP are exposed to the following primary risks: The risks described below are not exhaustive: it is up to each investor to analyse the risk associated with each investment and form his/her own opinion. 1 – Interest rate risk: The interest-rate risk is the risk of fluctuating interest-rates impacting on the bond markets. By way of example, the price of a bond tends to fluctuate inversely to interest-rate trends. The UCITS is primarily invested in money market instruments; in the event of a rise in interest rates, the value of fixed-rate assets invested may fall. 2 – Credit risk: In the event of default or deterioration the quality of private bond issuers (for example, a reduction in rating), the value of debt securities in which the UCITS is invested may fall. 3 – Risks associated with credit derivatives: The performance of the FCP in the event of recourse to credit derivatives will be directly associated with the occurrence of credit events affecting the securities underlying over-the-counter dealings. The FCP may be exposed through direct investment or recourse to forward financial instruments having the characteristics of credit derivatives, up to a limit of 200% of the assets on credit risks, which may generate a risk of reduction in the net asset value of the UCITS more significant and rapid than that of the markets in which the UCITS is invested. 4 – Risks associated with discretionary management: The discretionary management style is based on forecasts of trends in bond markets. The performance of the UCITS will therefore depend on the manager's predictions of trends in the rates curve. Given that the management policy is discretionary, there is a risk that the manager may incorrectly predict this trend. The UCITS may therefore not perform in line with its objectives. 5 - Liquidity risk The UCITS may, under difficult market circumstances or by reason of an exceptionally high volume of redemption applications or other circumstances of an exceptional nature, be unable to process redemptions within the time limit indicated in the prospectus. Under these circumstances, the management company may, in line with the articles of association of the FCP and if dictated by the interests of unit-holders, suspend subscriptions or redemptions or extend the time limit for settlement.
19
6 – Impact of inflation: The UCITS will be exposed to risks associated with inflation, i.e. the general rise in prices. In effect, the inflation level impacts on interest-rate trends and hence money market instruments 7 – Counterparty risk This is the risk associated with recourse by this UCITS to forward or over-the-counter financial instruments and/or recourse to the temporary sale or purchase of securities. These transactions are concluded with one or more eligible counterparties, potentially exposing this UCITS to a risk of default of one of these counterparties, liable to lead to non-payment. 8 – Risk associated with exposure to forward financial instruments The UCITS may enter into contracts on forward financial instruments subject to an exposure of 100% of the value of the assets. The net asset value of the UCITS may fall more than the markets to which the UCITS is exposed. 9 - Risk associated with investment in certain UCITS The UCITS may invest on a subsidiary basis in certain UCITS or investment funds (UCITS with alternative management policies, UCITS with simplified investment rules...) in relation to which there exists a risk associated with the alternative management policy (i.e., a management policy not correlated to any market index). The UCITS is exposed to a liquidity risk by investing in this type of UCITS or investment funds. 10 - Risk associated with assets resulting from securitisation The attention of the subscriber is drawn to the fact that the UCITS may have recourse to securities resulting from securitisation (ABS, MBS, CDO…). In relation to this type of asset, the UCITS is exposed to a risk associated with the economic situation of a particular geographical area and/or sector. Guarantee or protection: none Target subscribers and investor type profile: “A” units: all investors, particularly those wishing to participate in the evolution of the money markets while seeking a low-risk investment. “NL” units: reserved for AXA NL for distribution within its network and via unit-linked contracts. The amount it is reasonable to invest in this FCP will depend on the personal situation of each unit-holder. In determining this amount, each unit-holder must take account of his personal assets, the relevant regulations, his current requirements over an investment period of six months, but also his desire to take risks or, conversely, favour a prudent investment. He is also strongly recommended to diversify his investments sufficiently to avoid exclusive exposure to the risks of this UCITS. The recommended minimum investment term is 6 months. Conditions of determination and appropriation of income: “A” units: accumulation “NL” units: accumulation Characteristics of shares or units: “A” units: units divided into fractions of up to ten thousandths of units and denominated in euro. “NL” units: whole units denominated in euro.
20
Procedures for subscription and redemption: Subscription and redemption orders are received each day by the custodian up to 12 pm and executed on the basis of the next recorded net asset value (i.e. at price unknown). Subscription and redemption requests are centralised at BNP–PARIBAS SECURITIES SERVICES (BPSS), whose address is as follows: BNP – PARIBAS SECURITIES SERVICES (BPSS), 66 rue de la Victoire F-75009 Paris Initial Net Asset Value of “A” units: €10,000 Initial Net Asset Value of “NL” units: €100 Minimum initial subscription amount for unit holders of “A” units: none Minimum initial subscription amount for unit holders of “NL” units: none Procedure for conversions from one unit class to another unit class: the new unit class is reserved exclusively for AXA NL. Frequency of calculation of net asset value: daily. The net asset value shall not be determined or published on trading days which fall on legal holidays. The calendar of the Paris stock exchange shall be used. Venue for publication of net asset value: offices of the Management Company or promoter. Fees and commissions: Subscription and redemption fees: Subscription and redemption fees augment the subscription price paid by the investor or reduce the redemption price. Fees payable to the FCP serve to offset the costs incurred by the FCP in investing or disinvesting the assets assigned. Fees not paid to the FCP accrue to the Management Company or promoter.
Fees payable by the investor, levied on Basis subscriptions and redemptions (class “A” or “NL” unit holders) Subscription fee not payable to UCITS Subscription fee payable to UCITS Redemption fee not payable to UCITS Redemption fee payable to UCITS
Net asset units Net asset units Net asset units Net asset units
Rate scale
value x number of Maximum rate: 1% value x number of Nil value x number of Nil value x number of Nil
Operation and management fees: These fees cover all costs invoiced directly to the FCP, except transaction costs. Transaction costs include intermediary fees (brokerage, stock market taxes etc.) and movement fees, if any, accruing in particular to the custodian and Management Company.
21
The following charges may apply in addition to operation and administration fees: performance fees: fees payable to the Management Company when the FCP exceeds its objectives. They are charged to the FCP; movement fees charged to the FCP; a proportion of the income from temporary sales or purchases of securities. For further details of effective costs charged to the UCITS, see Part B of the simplified prospectus.
“A” UNITS Fees charged to UCITS Operating and management costs inclusive of tax (including all costs, excluding transaction and performance costs and costs associated with investments in the UCITS or investment fund) Performance fee Variable costs Applicable from fund set-up date Reference period: The first reference period begins at the fund set-up date and ends on the last trading day in December 2005. Each reference period thereafter will correspond to the accounting year.
Basis
Rate scale
Net assets (inc. UCITS)
Maximum rate: 0.50% Costs charged directly to the fund’s profit and loss account
Positive differential between performance of UCITS and benchmark index of at least 30bps.
Calculation methodology: The amount of variable management fees payable will be the subject of a provision in relation to each net asset value.
Service-providers in receipt of movement fees: Custodian Management company
22
Split rate: 25%* A split in the performance achieved over and above the fund’s benchmark index is stipulated in favour of the management company, according to the rules as set out in the detailed memorandum.
Amount
Levied on each transaction
€50 inclusive of tax maximum.
3,5 bps maximum
“NL”UNITS Fees charged to UCITS Operating and management costs inclusive of tax (including all costs, excluding transaction and performance costs and costs associated with investments in the UCITS or investment fund) Performance fee Variable costs Applicable from fund set-up date Reference period: The first reference period begins at the fund set-up date and ends on the last trading day in December 2005. Each reference period thereafter will correspond to the accounting year.
Basis
Rate scale
Net assets (inc. UCITS)
Maximum rate: 0.50% Costs charged directly to the fund’s profit and loss account
Positive differential between performance of UCITS and benchmark index of at least 30bps.
Calculation methodology: The amount of variable management fees payable will be the subject of a provision in relation to each net asset value.
Service-providers in receipt of movement fees: Custodian Management company
Split rate: 25%* A split in the performance achieved over and above the fund’s benchmark index is stipulated in favour of the management company, according to the rules as set out in the detailed memorandum.
Amount
Levied on each transaction
€50 inclusive of tax maximum.
3,5 bps maximum
*Where the performance of the net asset value exceeds the performance of the index, the management company will be entitled to: - 25% of the out-performance for each reference period. The out-performance will be calculated by comparing the trend of the FCP's assets with that of a benchmark fund, taking account of: - the rise in the index, - the same fluctuations in the subscriptions and redemptions recorded in respect of the actual fund. - In the case of under-performance in relation to the index, the provision will be adjusted through writebacks of provisions. Provisions will be capped at the level of allocations. The performance of the benchmark fund is presented in the periodic information documents issued. - Variable management costs shall be definitively payable to the management company at the end of each reference period and in respect of each redemption, pro rata to the units redeemed.
23
Temporary purchases and sales of securities: In relation to repurchase agreements and securities lending, the fees payable are split as follows: the FCP retains 2/3 of the proceeds of repurchase agreements and securities lending and the management company receives 1/3. For all the above transactions, the basis of remuneration will be the net margin realised on each transaction. Fee calculation formulas are available from the management company. Payments in kind: The Management Company has entered into soft-commission agreements with a number of French and foreign brokers. Under the terms of these agreements, the brokers pay for information tools used by managers for professional purposes. For further information, unit-holders are referred to the annual report on the UCITS.
III –Commercial information Information on the FCP can be obtained by direct application to the Management Company at the following postal address: AXA INVESTMENT MANAGERS PARIS Cœur Défense – Tour B – La Défense 4 100, Esplanade du Général de Gaulle F-92932 Paris La Défense Cedex Tel +33 (0)1 44 45 70 00 The net asset value of the UCITS is available on the following website: www.axa-im.fr. The latest annual and semi-annual reports are also available to unit-holders on request from the above Company at the above address. Subscription and redemption requests are centralised at BNP – PARIBAS SECURITIES SERVICES (BPSS), whose address is as follows: BNP – PARIBAS SECURITIES SERVICES (BPSS) 66, rue de la Victoire F-75009 Paris
IV – Investment rules: In compliance with the regulations of the French Monetary and Financial Code (Code Monétaire et Financier). Any amendments to Decree 89-623 will, as soon as implemented, be taken into consideration by the management company in administering the UCITS. The linear method is used to calculate the level of exposure of the UCITS.
24
V – Rules for the valuation and accounting of assets:
The portfolio is valued in relation to each net asset value and on closing of the annual accounts as follows: Transferable securities: Financial instruments and securities traded on a regulated market in France or abroad: •
French, European and foreign securities traded on the Paris stock exchange: closing price at valuation date (external source).
•
Securities traded in the Pacific zone: closing price at valuation date (external source).
•
Securities traded in America: closing price at valuation date (external source).
•
Transferable securities whose price has not been determined at the valuation date are valued at the last officially published price or probable trading value subject to the responsibility of the Management Company.
•
Currencies: foreign securities are converted to euro on the basis of the exchange rate published at 16.00 hrs. in London at the valuation date (external source).
•
Fixed-rate indexed EMTN [Euromarket Medium-term Notes] or bonds: these are valued daily in line with the variance in the rate characteristic of the issuer in relation to a swap curve. In order to value the bond or fixed leg of a swap, a maturity profile representing the different coupon flows is prepared, taking into account the swap/bond characteristics. The flows calculated are then converted to present value using the zero-coupon rate curve, adjusted to take account of the bond’s credit spread. For the variable leg, a maturity profile is also prepared, taking into account agreements specific to this leg. The calculation of flows is based on rate yield curves. The flows are converted to present value on the basis of the zero-coupon rate yield curve.
•
Bonds or EMTN hedging against interest rate risks through a back-to-back swap: the bond and back-to-back rate swap are valued according to the methods and rate yield curve described above.
•
Variable or adjustable-rate EMTN or bonds: these are valued at the ex-coupon price. Where only the margin relating to the security is available, the ex-coupon price is calculated through the Bloomberg method.
However, the following instruments are valued according to the specific methods described below: UCITS units or shares
25
•
UCITS units or shares are valued at the last known net asset value (external source for UCITS not valued by AXA).
•
Some foreign undertakings for collective investment may be valued according to time-scales incompatible with determination of the fund’s net asset value. Under these circumstances, they are valued on the basis of weekly estimates prepared by the administrators of these undertakings, under the overall control and responsibility of the Management Company.
Negotiable debt securities:
- Negotiable debt securities with a maturity of less than three months: •
Negotiable debt securities with a term of less than three months at issue or whose residual term falls below three months at the net asset value calculation date are valued according to the simplified method (linearisation). In case of the occurrence of a credit event affecting the issuer’s credit, the simplified method is abandoned and the negotiable debt security valued at the market price using the method applied to negotiable debt securities whose maturity exceeds three months.
•
With specific reference to a negotiable debt security indexed on a variable rate benchmark (essentially the EONIA [Euro Overnight Index Average]), an entry in the UCITS’ account will record the impact of the market movement (calculated in line with the issuer’s market spread, i.e. the spread representing the issuer’s intrinsic characteristics).
- Negotiable debt securities whose exceeds three months:
These are valued on the basis of an actuarial method, the present value rate adopted being that applied to issues of equivalent securities subject, where applicable, to a spread representing the issuer’s intrinsic characteristics (issuer’s market spread).
The market rates used are: - for the Euro, the official Euribor rates, -for USD, the Fed Funds swap curve (OIS method), -for GBP, the SONIA swap curve (OIS method).
The present value rate is a rate interpolated (by linear interpolation) between the two closest quotation periods framing the security’s maturity.
Temporary purchases and sales of securities
- Lending/borrowing:
- Securities lending: Securities lent are valued at market value; the debt representing the securities lent is valued in line with the contractual provisions.
- Securities borrowing: The debt representing the securities borrowed is valued in line with the contractual provisions.
- Repurchase transactions:
- Reverse repurchase agreements: the debt representing the securities involved is valued in line with the contractual provisions.
26
- Repurchase agreements: the securities involved are valued at market value; the debt representing the securities involved is valued in line with the contractual provisions.
Financial instruments not traded on a regulated market:
These are valued subject to the responsibility of the Management Company at their probable trading value.
Forward financial instruments:
FUTURES contracts:
Futures are valued on the basis of the settlement price (or last price) at the valuation date.
- These contracts are recorded in relation to their market value, determined according to the principles laid down above, as off-balance sheet liabilities and shown in the risk exposure tables. Options are expressed in the form of their underlying equivalents as off-balance sheet liabilities and shown in the risk exposure tables. Swaps
•
Interest rate swaps against the EONIA, FED FUNDS or SONIA (external source): - Interest rate swaps with a maturity of less than three months:
Swaps with a maturity of less than three months at the date they are concluded or date of the net asset value calculation are valued by a linear method. Where the swap is not backed by a specific asset and in the event of a sharp variation in interest rates, the linear method is abandoned and the swap valued according to the method reserved for interest rate swaps whose maturity exceeds three months.
- Interest rate swaps whose maturity exceeds three months:
These are valued according to the return cost method. On each calculation of net asset value, interest rate and/or currency swaps are valued at market value according to the price calculated on the conversion of the future cash flows into present value (principal and interest) at the interest and/or exchange rate prevailing on the market. The present value conversion is based on the zero-coupon rate yield curve. The market rate is the actuarial rate corresponding to the residual term of the swap, observed on the market at the revaluation date. This rate is known as the return rate. This price is adjusted to take account of risk of non-repayment.
27
If the residual maturity of the swap falls below three months, the linearisation method is applied.
•
Interest rate swaps against a EURIBOR or LIBOR benchmark: These are valued at the market price calculated on conversion of future flows to present value on the basis of the zero-coupon rate yield curve.
Valuation of swaps in statement of off-balance sheet liabilities:
- swaps with a maturity of less than three months: nominal + accrued interest differential, - swaps with a maturity exceeding three months, . fixed rate/variable rate swaps: valuation of fixed rate leg at market price, . variable rate/fixed rate swaps: valuation of variable rate leg at market price.
•
Index swaps are valued at market value in line with closing prices for the indices swapped. Complex index swaps are valued at market value in line with prices calculated by the counterparties, under the overall control and responsibility of the Management Company.
•
Asset swaps are valued at market value in line with prices calculated by the counterparties, under the overall control and responsibility of the Management Company.
•
Credit swaps are valued at market value in line with prices published by the market operators, under the overall control and responsibility of the Management Company. These prices are obtained by an independent service-provider.
•
Contracts for difference (CFD): CFDs are valued at market value in line with closing prices at the date of valuation of the underlying securities. The market value of corresponding lines shows the differential between the market value and strike price of the underlying securities.
Other instruments
•
Complex securities are valued at market value in line with prices calculated by the counterparties, under the overall control and responsibility of the Management Company.
•
Synthetic products: securities denominated in foreign currencies and hedged by a currency swap against the euro, concluded with a single counterparty or otherwise, are analysed as synthetic products providing that they meet the following conditions: the swap must be concluded simultaneously with the acquisition of the security and have the same value and maturity. By analogy with the option offered under current regulations, there is no separate registration of the foreign exchange security and associated swap contract, merely overall accounting of the synthetic product in euro. They are subject to an overall valuation at the market rate and/or at price of the currency resulting from the swap, within the scope of the contractual provisions.
Financial instruments whose price has not been ascertained at the valuation date or whose price has been adjusted are valued at the probable trading value under the overall responsibility of the management Company. These valuations and the relevant justifications must be notified to the auditor within the scope of the audits to be carried out.
28
Accounting methods Income is recorded applying the coupons received method. Trading charges are recorded in specific accounts of the UCITS and not added to the cost price of transferable securities (fees excluded). The WACC (or Weighted Average Cost of Capital) is adopted as the securities liquidation method. However, the FIFO (First In, First Out) method is used in the case of derivatives.
INVESTMENT FUND
AXA SPREAD PLUS (FCP offered to the public) _____
Custodian
:
Management Company (reg. office):
BNP PARIBAS SECURITIES SERVICES 3, rue d’Antin F-75002 PARIS
AXA INVESTMENT MANAGERS PARIS Cœur Défense – Tour B - La Défense 4 100, Esplanade du Général de Gaulle F-92400 Courbevoie
REGULATIONS _________ Approved by French Financial Markets Authority (l’Autorité des Marchés Financiers, A.M.F.). on 19 April 2005 (AMF authorisation date) Updated 1 September 2005 Updated 2 January 2006
29
Updated 20 December 2006
30
SECTION I ASSETS AND UNITS
Article 1 – Co-ownership units The co-owners’ rights are represented by units, each unit corresponding to the same fraction of the Fund’s assets. Each unit-holder has a co-ownership right in relation to the Fund’s assets proportionate to the number of units held.
The Fund’s term is 99 years from the date of its approval by the French Financial Markets Authority (AMF), except in the event of early dissolution or extension as set forth in the present management regulations.
The Fund reserves the right to issue different classes of units. The characteristics of the different classes of units and their eligibility requirements are specified in the simplified prospectus and detailed memorandum of the FCP.
The different classes of units may: -
benefit from different dividend policies (distribution or accumulation); be denominated in different currencies; charge different management fees; charge different subscription and redemption fees; have a different nominal value.
The Fund may merge or divide the units.
The Board of Directors of the Management Company may decide that the units shall be sub-divided into tenths, hundredths, thousandths, ten thousandths or even hundred thousandths, such subdivisions being referred to as fractions of units.
31
The provisions of the regulations governing the issue and redemption of units shall apply to fractions of units whose value shall always be proportionate to that of the units they represent. Unless otherwise provided for, all other provisions of the regulations relating to units shall apply to fractions of units without any need to make a specific provision to this effect.
Finally, the Board of Directors of the Management Company may decide, at its own discretion, to either merge or sub-divide the units by issuing new units which shall be allocated to unit-holders in exchange for their existing units.
If the Fund is a feeder UCITS, the unit-holders of this feeder UCITS will be issued with the same information as if they held units or shares in the master UCITS.
Article 2 – Minimum capital Units may not be redeemed if the assets of the FCP or sub-fund fall below 300,000 Euro (160,000 Euro in the case of funds targeted at a maximum of 20 holders or an investor category whose characteristics are precisely defined in the simplified prospectus and detailed memorandum); under these circumstances, unless the value of the assets is reinstated, the Management Company shall take the necessary measures to merge or dissolve the Fund within a period of thirty days. Article 3 – Issue and redemption of units Units are issued each time a subscription is received on the basis of their net asset value plus a subscription fee, where applicable. Subscriptions and redemptions are executed according to the conditions and procedures defined in the simplified prospectus and in the detailed memorandum. FCP units may be admitted to an official stock exchange listing in accordance with legislation currently in force. Subscriptions must be paid up in full at the net asset value calculation date. Subscriptions may be in the form of cash and/or contribution in kind in the form of transferable securities. The Management Company is entitled to refuse any securities offered and, to this effect, must announce its decision within seven days of the date on which the securities were tendered. If accepted, the securities contributed in kind are valued according to the rules laid down in Article 4 and the subscription is based on the first recorded net asset value following acceptance of the securities concerned. Redemptions will be in cash only, except in the event of liquidation of the Fund when unit-holders have agreed to be reimbursed in securities or the simplified prospectus and detailed memorandum stipulate an option of redemption by the remittance of securities, to be valued according to the rules laid down in Article 4. The redemption price will be payable by the custodian within 5 days of the unit valuation date.
32
However, if in exceptional circumstances the redemption requires the prior sale of assets held in the Fund, this deadline may be extended to a maximum of 30 days. With the exception of succession or an inter vivos gift, the sale or transfer of units between unit-holders or unit-holders and third parties is treated as a redemption followed by a subscription; if this involves a third party, the sale or transfer value must, if necessary, be made up by the beneficiary to at least the initial minimum subscription value stipulated in the simplified prospectus and detailed memorandum. By application of Article L.214-30 of the Code Monétaire et Financiers, the French Financial and Monetary Code, the redemption of units by the FCP and the issue of new units may be provisionally suspended by the Management Company in exceptional circumstances and if dictated by the interests of unit-holders. If the net assets of the FCP fall below the minimum threshold set by the regulations, no redemptions shall take place. The minimum subscription conditions are stipulated in the simplified prospectus and detailed memorandum. The FCP may cease to issue units by application of Article L.214-30, paragraph 2 of the French Monetary and Financial Code under the following circumstances: • the UCITS is targeted at a maximum of 20 unit-holders; • the UCITS is targeted at an investor category whose characteristics are precisely defined in the simplified prospectus and detailed memorandum applicable to the UCITS; • in objective situations leading to the termination of subscriptions, such as the attainment of a maximum issue of units or shares, the attainment of maximum number of assets or the expiry of a specific subscription period. These objective situations are defined in the detailed memorandum for the UCITS. Article 4 – Calculation of net asset value The net asset value of units is calculated in accordance with the valuation rules specified in the simplified prospectus and detailed memorandum. Contributions or redemptions in kind will be restricted to securities or contracts eligible for inclusion in the UCITS’s assets; they will be valued according to the valuation rules applicable to calculation of the net asset value laid down in the simplified prospectus and detailed memorandum.
33
SECTION II OPERATION OF THE FUND Article 5 – The Management Company The Fund is managed by the Management Company in accordance with the policy defined for the Fund. The Management Company shall act in all circumstances on behalf of unit-holders and may exclusively exercise the voting rights attached to securities held in the Fund. Article 5a - Operating Rules The instruments and deposits eligible for inclusion in the Fund's assets and applicable investment rules are described in the simplified prospectus and detailed memorandum. Article 6 - Custodian The custodian is responsible for custody of the assets held in the Fund, processing of orders from the Management Company in relation to the purchase and sale of securities and the exercise of subscription and allotment rights attached to the securities held in the Fund. The custodian is responsible for all collections and payments. The custodian must ensure that decisions taken by the Management Company are lawful. Where applicable, the custodian must take any protective measures deemed necessary. In the event of a dispute with the Management Company, the custodian shall notify the AMF to this effect. If the Fund is a feeder UCITS: The custodian must have entered into an information exchange agreement with the custodian of the master UCITS. If also custodian of the master UCITS, the custodian must prepare appropriate specifications. Article 7 – The Auditor An auditor has been appointed by the Board of Directors of the Management Company for a term of six financial years with the approval of the AMF. The auditor carries out any checks and audits laid down in law and, in particular, certifies as necessary the authenticity and regularity of the financial statements and the accounting information contained in the annual report. The auditor shall be subject to re-appointment. The auditor shall inform the AMF and FCP’s Management Company of any irregularities or misrepresentations ascertained during the performance of his mission. The auditor shall supervise the valuation of assets and determination of exchange parities in the event of a conversion, merger or split. The auditor shall assess all contributions in kind and assume responsibility for preparation of a report on the relevant valuation and remuneration. The auditor shall certify the accuracy of the composition of the assets and other information prior to publication. The auditor’s fees are determined by mutual agreement of the auditor and Board of Directors of the Management Company on the basis of a work schedule stipulating the functions required.
34
In the event of liquidation, the auditor shall value the assets and prepare a report on the terms and conditions of liquidation. The auditor will certify the situations on which the distribution of interim dividends is based. It the Fund is a feeder UCITS: The auditor must have entered into an information exchange agreement with the auditor of the Master UCITS. If the auditor acts for both the feeder and master UCITS, the auditor must draw up an appropriate work schedule. The auditor's fees shall be included in the management fees. Article 8 - Financial statements and annual report At the end of each financial year, the Management Company prepares financial statements and a report on the Fund’s management during the past financial year. The list of assets and liabilities is certified by the custodian and all the above documents are reviewed by the auditor. The Management Company shall make these documents available to unit-holders within four months of the financial year-end and notify them of their income entitlement: the documents are posted out at the express request of unit-holders or made available at the offices of the Management Company.
SECTION III PROCEDURES FOR APPROPRIATION OF NET INCOME Article 9 – Appropriation of net income The net income for the financial year is equivalent to the value of interest, arrears, dividends, premiums and bonuses, directors’ fees and any income generated by the securities held in the Fund’s portfolio, plus income generated by temporary cash holdings, less management fees and borrowing costs. Distributable income is equivalent to the net income for the financial year plus retained earnings, adjusted to take account of positive or negative accruals relating to the year ended. The Management Company decides on the appropriation of net income. For each class of unit, the simplified prospectus and detailed memorandum require the FCP to adopt one of the following methods: - pure accumulation: Distributable income shall be accumulated in full each year, with the exception of amounts subject to compulsory distribution by law. - pure distribution: The income shall be distributed in full, rounded upwards or downwards as applicable. The Management Company may decide during the year to distribute one or more interim dividends up to the limit of net income recorded at the date of the decision to this effect. - accumulation and/or distribution:
35
The Management Company decides on the appropriation of net income each year. The Management Company may decide during the year to distribute one or more interim dividends up to the limit of net income recorded at the date of the decision to this effect.
SECTION IV MERGER - SPLIT - DISSOLUTION - EXTENSION - LIQUIDATION Article 10 - Merger - Split The Management Company may transfer all or part of the Fund’s assets to another UCITS under its management or split the Fund into two or more mutual funds under its management. Such mergers or splits may only be carried out one month after unit-holders have been notified to this effect. Such mergers or splits shall give rise to the issue of a new certificate indicating the number of units held by each unit-holder. Article 11 - Dissolution - Extensions •
If the Fund’s assets remain below the value stipulated in Article 2 above for thirty days, the Management Company shall notify the AMF to this effect and, except in the event of a merger with another FCP, dissolve the Fund.
•
The Management Company may dissolve the Fund prematurely; it shall inform unit-holders of its decision and, as of that date, subscription and redemption orders shall no longer be accepted.
•
The Management Company shall also dissolve the FCP if a request is made for the redemption of all units, if the custodian’s appointment is terminated and no other custodian has been appointed, or at the expiry of the Fund’s term, unless extended.
The Management Company will inform the AMF by post of the dissolution date and procedure. The Management Company will then forward the auditor's report to the AMF. The extension of the Fund's term may be decided by the Management Company by agreement with the custodian. This decision must be taken at least 3 months in advance of the expiry of the Fund’s term and notified to the unit-holders and the AMF. Article 12 - Liquidation In the event of dissolution, the custodian or, where applicable, the Management Company, shall be responsible for the liquidation procedures. They shall for this purpose be vested with full powers to sell the Fund’s assets, pay off any creditors and distribute the available balance to unit-holders in cash or securities. The auditor and custodian shall continue to perform their duties until the completion of liquidation procedures. SECTION V DISPUTES Article 13 – Jurisdiction – Election of domicile All disputes relating to the Fund, arising during its term or in the course of its liquidation among unitholders or between unit-holders and the Management Company or custodian, shall be subject to the jurisdiction of the competent courts.
36
