SMART INVESTMENT

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SMART INVESTMENT
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Contents

• AXA Investment Managers
• Markets Today
• Investment Opportunities
• Smart Investment
• Global Recovery Fund
• Hedged Global Bond Fund
• Wrap up

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AXA Investment Managers

• US 240 billion assets under management
• Global organization
• 11 offices worldwide
• 1,500 employees worldwide
• 430 investment professionals
• Part of AXA Group
• 17th in Fortune Magazines Top 500
• US 60 billion market capitalization

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Markets Today

• Current market conditions
• Economic slowdown
• Global recession
• Business sentiments poor
• Consumer confidence low

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Markets Today

• Fall in global markets
• Restrictive monetary policies (interest rates)
• Hike in oil prices
• Technology sector melt-down
• Terrorist attacks

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Markets Today

• So why are we here today?
• OPPORTUNITIES
• Markets tend to overact to bad news
• Exaggerated fall in prices
• Increased volatility
• Markets readjust themselves leading to a rebound
  in prices

OPPORTUNITIES FOR PROFIT
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Investment Opportunities

• Financial Panic of October 1987
• Drastic fall in prices
• Global recession outlook
• but ...
• Markets recovered
• 30 month bull market

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Investment Opportunities
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Investment Opportunities
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Investment Opportunities
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Investment Opportunities

• Conditions are right for a recovery
• Drivers for stimulate economy
• Easing monetary policies
• Fiscal policies
• Drop in energy prices
• Pick up in global inventories
• Global effort to stimulate world economy
• Delayed effect of drivers

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Product Lead In

• Recurring Single Premium
• Dollar Cost Averaging

SMART INVESTMENT
Hedged Global Bond Fund 40
Global Recovery Fund 60

• Resilience towards bear markets
• Opportunities for growth

• Added security and stability
• Reduce volatility

SMART INVESTMENT
SUITABLE FOR ALL INVESTORS
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Global Recovery Fund

• Why Global Recovery Fund
• Resilient towards bear markets
• Long term capital growth (though recovery stocks)

MICROPAL

• Definition of Recovery Stock
• Stock has under-performed compared to other
  similar stocks
• ... but has potential to out-perform in the
  future

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Global Recovery Fund

• Key Requirements
• Low valuations (ie the stock must be cheap)
• Catalyst for change
• Usually 1-rated by analyst

MICROPAL

• Investment Style Neutral
• Flexible
• Diversification
• More opportunities

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Global Recovery Fund
MICROPAL
Bought stock several times since February. Stock
has outperform benchmark (especially IT
index) Dell -3 versus Benchmark -20

• RESILIENCE AS WELL AS PERFORMANCE
• GLOBAL RESEARCH IDENTIFIES BEST STOCK WITHIN
  EACH SECTOR

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Global Recovery Fund
MICROPAL
Sold in Sept when Sony was outperforming benchmark
Bought on under-performance in 4 blocks. Fund at
this stage was growing due to new cash inflow.
RESULT HIGHER OUT-PERFORMANCE
DISCIPLINE BUYING AND SELLING PROCESS (Buy low,
sell high)
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Global Recovery Fund
MICROPAL
Sold _at_ 60.1
Bought _at_ 20, stock deep in oversold
territory Since then, stock has outperformed
rest of IT sector
WORLD LEADER IN ITS FIELD 1-RATED STOCK
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Global Recovery Fund
After Sep 11 Before Sep 11 3 year cumulative
return 5.9 23.3
MICROPAL
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Global Recovery Fund
RESILIENCE!
MICROPAL
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Global Recovery Fund

• AWARDS!
• Global Equity Fund Manager of the Year 2001 -
  International Money Marketing Magazine
• MICROPAL
• A rating by SP Fund Research

MICROPAL
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Product Lead In (Recap)
SMART INVESTMENT
SUITABLE FOR ALL INVESTORS
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Hedged Global Bond Fund

• What do we mean by Hedged?
• Fluctuation of currencies
• Returns from currencies converted to USD
• USD - strong and stable

• Benefits of hedging
• Exposure to wider range of investments
• Fluctuations among various currencies removed

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Hedged Global Bond Fund

• Bonds
• Safe and secure
• Added security and stability
• Reduce volatility
• Diversification of asset class
• Geographical diversification

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Hedged Global Bond Fund
Market Values by Currency (as at 09 Sept 2001)
AUD
SEK
CAD
GBP
1
1
3
EUR
5
25
JPY
17
EUR
USD
JPY
GBP
CAD
SEK
AUD
USD
48
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Hedged Global Bond Fund
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Act Now

• Invest Smart!
• Prices have fallen drastically
• Opportunity to buy low and sell high

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Act Now

• Invest Smart!
• Professional services
• Reputable / Proven track record
• Research and analysis
• Diversification
• Exposure to global markets and sectors
• Balanced investments
• Do not try to time the market
• Markets move quickly and unexpectedly
• Dollar cost averaging through recurring single
  premiums

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Conclusion

• Markets moving toward recovery, volatility
  expected
• Product selection crucial
• Smart Investment
• Global Recovery Fund
• High resilience
• Potential to capitalize on recovery
• Diversification across markets and sectors
• Hedged Global Bond Fund
• Dollar cost averaging