AXA Investment Managers

Herbst 2016

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` Equity markets and the long-term story

` Why allocate to small caps

` Why you need a specialist active manager

` Why choose AXA Investment Managers

` Why invest in small caps now

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Equity markets are increasingly volatile … making asset allocation increasingly difficult

You can find opportunity in volatility, if you know where to look

Challenges shouldn’t obscure the longer-term investment case for equities, particularly smaller companies

growth for longer Slower

markets Volatile

2

Investors often overlook smaller companies

of current small cap investors plan to allocate more to small caps in 2016

35% Potential to boost

Source: 2016 Citywire Survey

Portfolio

Diversification

parts of economy fastest-growing Exposure to

3

performance

... and 28% of investors not currently invested in small cap, plan to do so in 2016.

Historically, small caps have tended to outperform large caps

Small caps tend to provide stronger returns when large cap returns are modest

This chart shows US data. *Based on the period 1926-1929 **Based on the period 2010 – February 2015 Notes: Source: BofA Merrill Lynch Global Investment Strategy (February 2015), Ibbotson, Bloomberg, DataStream, Global Financial Data The figures provided relate to previous months or years and past performance is not a reliable indicator of current or future performance.

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Average annual return

1920’s* 1930’s 1940’s 1950’s 1960’s 1970’s 1980’s 1990’s 2000’s 2010’s**

Large Cap +19.2% -0.1% +9.2% +19.4% +7.8% +5.9% +17.6% +18.2% -0.9% +15.5%

Small Cap -4.5% +1.4% +20.7% +16.9% +15.5% +11.5% +15.8% +15.1% +6.3% +17.5%

Difference -23.7% +1.5% +11.5% -2.5% +7.7% +5.6% -1.8% -3.1% +7.2% +2%

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Global indices: rolling 3-year largest drawdown, peak to trough

Time is your friend… over the longer-term small caps have been no more volatile than large caps

Source: Rosenberg Equities, S&P, MSCI, DataStream. Total return drawdown, 3-year rolling. As at 31.12.15 The figures provided relate to previous months or years and past performance is not a reliable indicator of current or future performance.

-70,00%

-60,00%

-50,00%

-40,00%

-30,00%

-20,00%

-10,00%

0,00%

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S&P World S&P Small MSCI EM

Why allocate to small caps

Why investors should structurally allocate to small caps

15% of the global equity investment universe

Small companies often lead innovation

Offer earnings growth

premium over the

long-term

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1 2 3

Source 1: JP Morgan, December 2015

Majority of fund buyers only allocate 6 - 10% to small caps*, structurally underweight to 15% of the equity universe

*Source: Citywire Survey 2016 Source: Bloomberg, Datastream, Factset and JP Morgan; December 2015

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Miss out on potential returns from 90% of companies globally:

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Global equities by region, by number of stocks

Large caps

Small/mid caps 200 1877

Japan 806 3358

US/Canada

36 434

Australia/NZ

456 2219

W. Europe

56 436

Lat Am

308 5007

Asia ex-Japan

Central and Eastern Europe, Middle East and Africa

115 1474

Small caps usually have a natural bias towards the fastest growing part of the company life cycle

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Companies cluster where innovation is

possible

2

Company evolution:

Small companies often lead innovation We believe that we are in a phase of immense innovation

Source McKinsey Research - December 2014. Shown for illustrative purposes only and should not be considered as advice or a recommendation.

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2 In

nova

tion

Innovation Water power Mechanization

Textiles Commerce

Steam Power Railroad

Steel Cotton

Electricity Chemicals Internal

combustion engine

Petrochemicals Electronics Aviation Space

Digital Networks Biotechnology

Software Information technology

Sustainability Radical resource

Productivity Whole system

design Biomimicry

Green Chemistry Industrial ecology

Renewable energy Green

nanotechnology

1st wave

2nd wave

3rd wave

4th wave

5th wave

6th wave Waves of Innovation

1785 1845 1900 1950 1990 2020

Small caps have offered an earnings growth premium over the long-term

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Long-term global aggregate operating income growth

Source: JP Morgan, June 2015. The figures provided relate to previous months or years and past performance is not a reliable indicator of current or future performance

2.4% Small and mid caps have posted average earnings

growth 2.4% higher than large caps since

1990

23/27 Small caps have

outperformed large caps over 23 of the last 27

years

3

Earnings premium: Earnings persistency:

Forecasted long-term growth in small caps is larger

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P/E: Price/Earnings ratio. EPS: Earnings per share. PEG: Price/Earnings to Growth Source: FactSet at 29/02/2016, assuming small cap is universe of stocks with market cap $0.25bn to $5bn. The base universe is taken from Datastream Europe Index for Europe and Russell 2000 Index for US. Note that MSCI World index captures large and mid cap stocks, whereas MSCI World Small Cap is dedicated to small caps. The figures provided relate to previous months or years and past performance is not a reliable indicator of current or future performance.

Fundamental Factor MSCI World Index MSCI World Small Cap

Fwd P/E 14.45x 15.10x

Est 3-5 Yr EPS Growth 8.9 10.0

Long Term PEG 1.62 1.51

Small cap valuations provide cheaper access to growth

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Why you need a specialist active manager

Why investors should choose a specialist active manager

Experience shows that small caps are inherently more inefficiently priced, and require specialist knowledge

Active managers can select the most compelling businesses in a stock-specific universe

Active managers can benefit from small cap M&A premium

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1

2

3

Shrinking sell-side coverage of small caps Typically under-researched and under-owned

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Small caps are inherently more inefficiently priced

Average Number of Analysts by Capitalization*: December 2014

Source: Rosenberg Equities as of October 2014. Large Cap >$10 bil market cap. , Mid Cap between $10 bil .- $2 bil., Small Cap <$2 bn. *According to IBES (Institutional Brokers' Estimate System)

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Small caps often define their own growth trajectories Active managers can identify opportunities in stock-specific universe

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Source: Citi Investment Research & Analysis (Based on S&P and BMI Indices Top 100-Large Caps & Bottom 100=Small Caps) as of June 2014.

of small caps’ share price move is related to

idiosyncratic factors

2

60%

… versus small caps Large caps

80% of large caps’ share

price move is correlated with macro factors

80%

40%

20%

60%

Large caps Small capsMacro factors Stock-specific factors

Smaller companies are more likely to benefit from M&A

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Larger companies seeking to acquire growth or a niche capability

3

Entrepreneurs selling out when businesses grow beyond a certain point

Lower interest rates are making funding more accessible

2015 was the strongest year for M&A volumes on record; third consecutive year of increases

Source: Bloomberg, February 2016

Why choose AXA Investment Managers

Why investors choose AXA Investment Managers

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Our exceptional research capability unlocks more investment opportunities

Our Small cap DNA fosters long-term performance

Our Small cap strategies have generally outperformed across the 3 and 5-year horizons

1

2

3

* Please note that past performance is not a reliable indicator of current or future performance

*

Our research capability unlocks more investment opportunities

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12,000 global small caps

1,000 direct contacts with management teams

Source: AXA IM; February 2016

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AXA IM currently manages €27bn of small cap assets (€4bn of which in dedicated small cap products), placing long-term drivers of risk at the heart of our investment process

40+ years of knowledge and experience to remain resilient through all market cycles over time

Our small cap DNA fosters long-term performance Long-term view of investing in the early stages of growth

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Source: AXA IM, February 2016; 40 years refer to Framlington’s small cap investing experience

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Our range of small cap strategies has generally outperformed across the 3 and 5-year horizons

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Source: AXA IM as at 29/02/2016. Basis: NAV, gross income reinvested, gross of fees in EUR (except for AXA Framlington Japan which is net income reinvested). AXA WF Funds are Luxembourg SICAVs. The figures provided relate to previous months or years and past performance is not a reliable indicator of current or future performance.

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Note that these Funds may involve risks relating to geopolitics, liquidity, credit, derivatives, counterparties, leverage, currency, emerging markets, portfolio concentration, operational risks, risks linked to method and model, and others. Further explanation of the risks associated with investment can be found in the prospectus of each individual Fund

Absolute return % pa

Relative Return % pa

1Y 3Y 5Y 1Y 3Y 5Y SI Inception Date Fund Name

Global Rosenberg -5.88 15.03 13.73 2.16 2.61 3.23 2.15 Oct-99 AXA Rosenberg Global Small Cap Equity Alpha

Global Framlington -2.76 14.31 - 6.35 3.78 - 3.54 Jan-13 AXA WF Framlington Global Small Cap

US Rosenberg -8.94 15.98 14.60 3.28 3.53 3.27 3.91 Jul-87 AXA Rosenberg US Small Cap Equity Alpha Fund

UK Framlington 3.88 22.07 19.38 9.33 7.00 6.16 7.47 Apr-01 AXA Framlington UK Smaller Companies

Europe Rosenberg -4.71 14.62 12.38 -1.23 -0.03 1.06 0.63 Oct-96 AXA Rosenberg Pan European Small Cap Equity Alpha Fund

Europe Framlington 8.85 18.11 14.05 16.58 8.13 6.41 1.92 Mar-01 AXA WF Framlington Europe Small Cap

Europe Microcap Framlington 2.64 19.84 10.68 4.09 6.74 0.72 -1.22 Mar-05 AXA WF Framlington Europe MicroCap

Japan Rosenberg -0.03 11.91 9.27 -2.07 -1.33 -0.46 0.32 Sep-96 AXA Rosenberg Japan Small Cap Equity Alpha Fund

Japan Framlington 7.95 21.70 12.48 14.21 10.89 6.94 3.78 Feb-84 AXA Framlington Japan

Asia Rosenberg -10.12 2.86 7.68 -1.54 2.16 5.12 3.79 Oct-06 AXA Rosenberg Pacific ex Japan Small Cap Equity Alpha Fund

Small caps present a significant opportunity for alpha

Source: AXA IM as at 31.12.15; AXA WF Framlington European Small Cap F EUR; AXA Rosenberg Global Small Cap Alpha Fund. The figures provided relate to previous months or years and past performance is not a reliable indicator of current or future performance. Cumulative performance calculations are gross of fees, based on the reinvestment of dividends. An investor’s return will be reduced by the management fees and other expenses

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3

100% MSCI Index

100% Rosenberg Global Small Cap

100% MSCI World Small Cap Index

0%

2%

4%

6%

8%

10%

12%

13% 15% 17% 19%

An

nu

alis

ed lo

ng

ter

m r

etu

rn

Volatility

100% MSCI Europe Index

100% Framlington European Small Cap

100% EuroStoxx

Small Index

0%

2%

4%

6%

8%

10%

12%

18% 19%

An

nu

alis

ed lo

ng

ter

m r

etu

rn

Volatility

Small caps tend to offer a significant increase in alpha with a moderate impact on risk, while also lowering beta relative to large-cap equities

Efficient frontier examples

Why small caps?

Source: 2016 Citywire Survey

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point into asset class Attractive entry

Innovation & growth areas in economy

appreciation Potential long-term capital

in equity portfolio Diversification

AXA World Funds - Framlington Europe Small Cap Additional Risks

Credit Risk: risk that issuers of debt securities held in the Sub-Fund may default on their obligations or have their credit rating downgraded, resulting in a decrease in the Net Asset Value.

Liquidity Risk: risk of low liquidity level in certain market conditions that might lead the Sub-Fund to face difficulties valuing, purchasing or selling all/part of its assets and resulting in potential impact on its net asset value.

Counterparty Risk: risk of bankruptcy, insolvency, or payment or delivery failure of any of the Sub-Fund's counterparties, leading to a payment or delivery default.

Impact of any techniques such as derivatives: certain management strategies involve specific risks, such as liquidity risk, credit risk, counterparty risk, legal risk, valuation risk, operational risk and risks related to the underlying assets.

The use of such strategies may also involve leverage, which may increase the effect of market movements on the Sub-Fund and may result in significant risk of losses.

Additional risks mentioned in Fund-specific slides

AXA Rosenberg Global Small Cap Alpha Fund Additional Risks

Derivatives: derivatives can be more volatile than the underlying asset and may result in greater fluctuations to the Sub-Fund's value. In the case of derivatives not traded on an exchange they may be subject to additional counterparty and liquidity risk.

Geopolitical Risk: investments issued or traded on markets in different countries may involve the application of different standards and rules (including local tax policies and restrictions on investments and movement of currency), which may be subject to change. The Sub-Fund's value may therefore be impacted by those standards/rules (and any changes to them) as well as the political and economic circumstances of the country/region in which the SubFund is invested.

Liquidity Risk: some investments may trade infrequently and in small volumes. As a result the fund manager may not be able to sell at a preferred time or volume or at a price close to the last quoted valuation. The fund manager may be forced to sell a number of such investments as a result of a large redemption of units in the SubFund. Depending on market conditions, this could lead to a significant drop in the Sub-Fund's value and in extreme circumstances lead the Sub-Fund to be unable to meet its redemptions.

Operational Risk: the Sub-Fund is subject to the risk of loss resulting from inadequate or failed internal processes, people or systems or those of third parties such as those responsible for the custody of the Sub-Fund's assets.

Risk linked to Method and Model: attention is drawn to the fact that the Sub-Fund's strategy is based on the utilisation of a proprietary share selection model. The effectiveness of the model is not guaranteed and the utilisation of the model may not result in the investment objective being met.

Stock Lending: the Sub-Fund may enter into securities lending agreements and as a result be subject to increased counterparty risk. Should the counterparty fail financially, the securities received will be called upon. However in the event of significant market volatility at the time of default the value of those securities received could fall below the value of the lent securities. In this instance the manager would not have sufficient cash to purchase the equivalent value of securities lent out which could result in a significant negative impact on the Sub-Fund's value.

Further explanation of the risks associated with an investment in this Sub-Fund can be found in the prospectus.

Characteristics disclosure:

The price/earnings data forecast is based on IBES 1-year forward earnings estimates. Dividend yield is not guaranteed and will change in the future. Please note that in this report, the specified benchmark excludes certain benchmark constituent securities that Rosenberg Equities deems not to have sufficient publicly available accounting data for valuation purposes. As such, please note that the “benchmark” portfolio characteristics shown in this report are calculated in good faith by Rosenberg Equities based on the adjusted benchmark, and therefore, deviate from the portfolio characteristics of the full, unadjusted official benchmark. Premium and discounts are calculated by the ratio of fund compared to equity benchmark, for example if benchmark has an forward earnings yield of 8% and the fund 9.5% the premium is 19% or (9.5% - 8%) / 8% = 19%. The descriptions set forth above represent investment objectives and possible characteristics only. Dividend yield and Beta exhibits are based on data from representative accounts. The representative account was chosen on the basis of adequate assets under management and an investment setup that is typical enough to effectuate a fair comparison. No representation is made that Rosenberg Equities will achieve the objectives and characteristics set forth above. An investor’s experience may vary. Past performance is not a guide to future performance. Benchmark” refers to the external index provider benchmark specified above or elsewhere in this presentation. For the purposes of this slide, the specified benchmark excludes certain benchmark constituent securities that Rosenberg equities deems not to have sufficient publicly available accounting data for valuation purposes. As such, please note that the above “benchmark” portfolio characteristics are calculated in good faith by Rosenberg Equities based on the adjusted benchmark and therefore, deviate from the portfolio characteristics of the full, unadjusted benchmark.

Any MSCI information herein may only be used for your internal use, it may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.mscibarra.com).

Morningstar: The information, data, analyses and opinions (“Information”) contained herein (1) include the propriety information of Morningstar; (2) may not be copied or redistributed; (3) do not constitute investment advice; (4) are provided solely for informational purposes; (5) are not warranted to be complete, accurate or timely; and (6) may be drawn from fund data published on various dates. Morningstar is not responsible for any trading decisions, damages or other losses related to the Information or its use. Please verify all of the Information before using it and don’t make any investment decision except upon the advice of a professional financial adviser. Past performance is no guarantee of future results. The value and income derived from investments may go down as well as up.”

Other important information

Please note the following information and read the latest prospectus including the general and special terms and conditions of the fund respectively the articles of association, which are the only relevant basis for the purchase of fund units/shares. Any transaction on the basis of information or explanation which is not contained within the prospectus is carried out exclusively on risk of the buyer. You will receive the latest prospectus, Key Investor Information Document (“KIID”), and the most re-cent annual and semi-annual report upon request free of charge and in paper form at AXA Invest-ment Managers Deutschland GmbH • Bleichstrasse 2-4 • 60313 Frankfurt/Main or from our distribution partners or under www.axa-im.de. The data, figures, declarations, analysis, predictions, concepts and any other information provided in this document is provided by AXA Investment Managers Deutschland GmbH / its affiliated companies and based on our state of knowledge at the time of its creation. The mentioned information may be amended at any time without notice. Due to the simplification the information in this document can be subjective. As far as we refer to information of third parties we point out that we do not overtake any liability for its content, for the correctness, completeness, topicality and adequacy of these data even if we use only such data which we consider to be reliable. Nevertheless, unintended erroneous statements or presentations may occur. A liability or guarantee for the up-to-dateness, correctness and completeness of the allocated information cannot be assumed neither by AXA Investment Managers Deutschland GmbH nor its affiliated companies. Performance results of the past are no indicator for any future returns or trends. The value and in-come derived from investments may go down as well as up. Furthermore commissions and costs have an adverse effect on the performance of a fund. The information in this document is provided for information purposes only, and shall not be construed as legal or tax advice by AXA Investment Managers Deutschland GmbH / its affiliated companies, nor shall it be construed as a solicitation to buy or a recommendation to invest. An invest-ment or other decision may not be made on the only basis of this document. Prior to any transaction potentially interested parties must carefully consider the appropriateness of their investments to their specific situation and ensure that they understand the risks involved in their investment decisions. As part of this individual consultation you will also be informed of costs and fees associated with the purchase of one of the mentioned products. While providing investment services, AXA Investment Managers Deutschland GmbH and/or its affiliates may receive or grant benefits (commissions, fees or other payments as well as all monetary benefits). We point out that this document does not comply with the requirements of the respective applicable directive 2004/39/EG or 2014/65/EU (MiFID/MiFID II) and the related directives and regulations. Therefore, this document is not suitable for any kind of sales services, consulting or financial services vis-à-vis retail clients. The information in this document is exclusively addressed to distributors who receive this document directly from AXA Investment Managers Deutschland GmbH / its affiliated companies for their information purpose only. It is to be treated strictly confidential. The recipients are not allowed to pass this document and the information contained herein on to a third party, in whole or in partial, without the prior written consent of AXA Investment Managers Deutschland GmbH / its affiliated companies. Additional information for investors in Austria: The current sales prospectuses of the AXA WF Umbrellas as well as the Key Investor Information Documents were published in electronic form on www.axa-im.at on February 2016 and by deposition at AXA Investment Managers Deutschland GmbH, Bleichstrasse 2-4, 60313 Frankfurt am Main, as well as at the information centre and paying agent UniCredit Bank Austria, Schottengasse 6-8 in 1010 Wien. The current sales prospectus of the AXA WF Umbrellas were published in electronic form on www.axa-im.at on November 2015 and by deposition at AXA Investment Managers Deutschland GmbH, Bleichstraße 2-4, 60313 Frankfurt am Main, as well as at the information centre and paying agent UniCredit Bank Austria, Schottengasse 6-8 in 1010 Wien. Investors and interested persons in Austria receive the prospectus, the fund rules (Fondsbestimmungen) and the annual and semi-annual report of the AXA WF Umbrellas free of charge at AXA Investment Managers Deutschland GmbH, at the information centre and paying agent mentioned above and on www.axa-im.at. With this information and paying agent, further information and documents regarding the product may be examined as well as redemption requests may be filed. The issue prices and redemption prices are published in the “Wiener Zeitung” every trading day and are also available at this information centre and paying agent and on www.axa-im.at. Date: 18.10.2016

Disclaimer

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