AXA WF Subordinated Bonds I EUR Acc

Over the recommended holding period, to seek an annualized positive return, in EUR, net of fees, higher than the index composed of 25% ICE BofA Euro Non-Financial Subordinated Index + 55% ICE BofA Euro Subordinated Financial Index + 20% ICE BofA Contingent Capital Index (the “Benchmark”), from an actively managed subordinated debt portfolio and aim at not exceeding a 10% annual volatility under normal market conditions. This annualized return is an objective and is not guaranteed. Investment Policy The Sub-Fund is actively managed without reference to any benchmark in order to capture opportunities in the US investment grade corporate bonds market. The following investment decisions are undertaken after comprehensive macroeconomic and microeconomic analysis of the market: - sector allocation- duration positioning (duration measures, in number of years, the portfolio's sensitivity to interest rate variations)- yield curve positioning (the yield curve illustrates the relationship between investment term and bond yield)- issuer selection- instrument selection The Sub-Fund invests mainly in short duration transferable debt securities rated investment grade, issued by corporations and denominated in USD. The remaining part of the assets may be invested in transferable debt securities other than short duration. The Sub-Fund will be managed with an interest rate duration ranging from 0 to 4. The duration is an indicator measuring the impact of a variation of 1% of the market interest rates on the value of the Sub-Fund. The Sub-Fund may invest up to 15% of its net assets in (i) mortgage and asset backed securities rated investment grade, transferable debt securities issued by governments or public institutions and/or bonds denominated in non-USD currency and (ii) short duration transferable debt securities rated sub-investment grade, issued by governments, corporations or public institutions and denominated in USD. Investment grade securities will be rated at least BBB- by Standard & Poor's or equivalent rating by Moody's or Fitch or if unrated then deemed to be so by the Investment Manager. Sub-investment grade securities will be rated between BB+ and B- by Standard & Poor's or equivalent rating by Moody's or Fitch or if unrated then deemed to be so by the Investment Manager. In case of downgrade below B- by Standard & Poor's or equivalent rating by Moody's or Fitch or if unrated then deemed to be so by the Investment Manager, securities will be sold within 6 months. If two different ratings of rating agencies exist, the lower rating will be considered, if more than two different ratings of rating agencies exist, the second highest rating will be considered. The total assets of the Sub-Fund may be invested in or exposed to callable bonds. The Sub-Fund may also invest up to 25% of net assets in subordinated debt securities issued by banks, insurance companies and non-financial corporates. The Sub-Fund may, up to 10%, hold distressed and defaulted securities as a result of their rating downgrade, if they are considered to be consistent with the Sub-Fund's objective. These securities are expected to be sold within 6 months unless specific events prevent the Investment Manager from sourcing their liquidity. The selection of credit instruments is not exclusively and mechanically based on their publicly available credit ratings but also on an internal credit or market risk analysis. The decision to buy or sell assets is also based on other analysis criteria of the Investment Manager. The Sub-Fund may invest in Money Market Instruments. The Sub-Fund may invest its net assets in 144A securities, in a substantial way depending on the opportunity. Derivatives (including Credit Default Swaps) may be used for efficient portfolio management or hedging purposes. The Sub-Fund is a financial product that promotes environmental and/or social characteristics within the meaning of article 8 of the Regulation (EU) 2019/2088 of 27 November 2019 on sustainability-related disclosures in the financial sector. Income For Capitalisation share classes (Cap), the dividend is reinvested. Sub-Fund Currency The reference currency of the Sub-Fund is EUR. Investment Horizon This Sub-Fund may not be suitable for investors who plan to withdraw their contribution within 5 years. Processing of subscription and redemption orders The subscription, conversion or redemption orders must be received by the Registrar and Transfer Agent on any Valuation Day no later than 3 p.m. Luxembourg time. Orders will be processed at the Net Asset Value applicable to such Valuation Day. The investor's attention is drawn to the existence of potential additional processing time due to the possible involvement of intermediaries such as Financial Advisers or distributors. The Net Asset Value of this Sub-Fund is calculated on a daily basis.