Semi-Annual Fund Report - AXA Life Insurance Singapore

AXA ACHIEVE
Semi-Annual Fund Report
AXA WM – Talents Fund
11/2011
AXA Wealth Management Singapore Private Limited
Company Reg. No. 200210502W
8 Shenton Way #27-02 AXA Tower
Singapore 068811
AXA Customer Centre #B1-01
Tel: 6880 5500 Fax: 6880 5501
www.axalife.com.sg
30 September 2011

Dear Valued client,
We are pleased to present AXA WM – Talents Fund Annual Report for the period ending 30 September
2011.
Volatile global markets
Over the course of the 12 months ending September 2011, the Emerging Markets continued to boom
and stock markets showed strong volatility with solid performances until June 2011. A sharp drop
however, was recorded in the last quarter due to the concerns of the sovereign debt of the United States
and the debt crises in the Euro zone.
Strong belief in innovation
The underlying fund manager believes that no financial valuation model could have captured the
continuing innovation and brilliance Steve Jobs has brought to Apple. Hence, trusting these gifted
and brave entrepreneurs enables investors to benefit from the flow of innovative ideas executed by the
visionary entrepreneurs they invest in. This approach also requires being able to overlook rich valuations
and resist in periods when the entrepreneur’s project is not clearly understood by the market. Just as
Apple’s move in the online music business was criticised by many analysts, the AXA WM Talents team
chose to trust Steve Jobs vision over the analysts’ criticism.
Continued commitment from the Talents team
The fund’s founder and CIO Charles Firmin-Didot and team continue to have their personal assets
invested in the Talents strategy as they believe that the gifted entrepreneurs they chose will create
value by reacting fast, using arising opportunities and being more creative to produce long-term superior
performance.
We hope that you would find this report beneficial and insightful. We strongly advise you to seek the
expertise of your AXA Financial Planner to continue delivering quality financial advice to meet your wealth
management need.
Yours sincerely
Glenn Williams
Chief Executive Officer

contents
general information
section page this section explains:
1 general information 3 • details of parties involved
2 definitions 4 • meaning of fund terminologies used in this report
3 underlying fund
manager’s report
4 fund performance 6
5 schedule of
investments
5 • market review & outlook - underlying fund
6
7
7
10
11
11
12
12
12
12
12
12
12
12
12
• investment objective
• table of performance
• portfolio statement
• geographical classification of underlying fund
• industrial classification of underlying fund
• asset class classification of underlying fund
• top 10 holdings of underlying fund
• expense ratio
• turnover ratio
• amount of subscriptions & redemptions
• soft dollar commission
• derivatives
• investments in collective investment schemes
• borrowings
• related-party transactions
• any other information that will adversely affect the
valuation of the fund
Manager
AXA Wealth Management Singapore Pte Ltd
8 Shenton Way AXA Tower #27-02
Singapore 068811
(Company Registration No. 200210502W)
Directors of the Manager
Mark Stamper
Kevin John Wright (appointed with effect from 27 September 2011)
Glenn John Williams
Trustee/Registrar
RBC Dexia Trust Services Singapore Limited
20 Cecil Street #28-01 Equity Plaza
Singapore 049705
(Company Registration No. 199504677Z)
Auditor
PricewaterhouseCoopers LLP
8 Cross Street #17-00
PWC Building
Singapore 048424
Fund Administrator
State Street Bank and Trust Company
168 Robinson Road
#33-01 Capital Tower
Singapore 068912
6 financial statements 13
14
14
15
• statement of total return
• balance sheet
• portfolio statement
• notes to the financial statements

definitions
underlying fund manager’s report
“Fund”
“Manager”
“Sub-Fund”
“Underlying Fund”
“Underlying Fund
Manager”
refers to AXA ACHIEVE. The Fund is an umbrella fund currently comprising of one
Sub-Fund, namely the AXA WM – Talents Fund, a Singapore-dollar denominated
open-ended non-specialised collective investment scheme.
refers to AXA Wealth Management Singapore Pte Ltd (Company Registration
No. 200210502W).
means the AXA WM – Talents Fund. The Sub-Fund is a feeder fund and invests
all or substantially all of its assets into the Underlying Fund.
means the AXA World Funds - Framlington Talents. The Underlying Fund is a Sub-
Fund of the AXA World Funds domiciled in Luxembourg (denominated in Euros).
refers to AXA Funds Management S.A.
For the one year period ending 30 September 2011, the AXA WM - Talents Fund posted a return of -
14.49%.
Among the worst performance impactors were our Chinese names like Choada Modern, and Suntech
Power despite the fact of the company just having been recognized as a New Sustainability Champion by
World Economic Forum. Their share prices currently seem not to reflect their low valuations.
In Japan, Softbank’s shares fell as they will no longer be exclusive only seller of Apple products.
Fortunately good news came from other names:
Private company HBI (Elior) has improved its results significantly and its valuation was raised 27% above
our cost and we initiated the sale of our entire holding.
Bolloré sold its TV channels Direct8 and Direct Star to Vivendi for Euro 460 million. Most analysts
had thought these channels were worthless as they cost money to the group. It also tested its Autolib
service, Paris’ electric car sharing programme.
Amazon introduced its highly anticipated tabled Fire, which seems to be attractively priced and could
pose a threat to current market leaders in this space.
Most of the portfolio is invested in companies that in our opinion can create value regardless of
economic growth in the developed world: 38% of the portfolio is invested in holding companies of flexible
entrepreneurs who know how to grow in tough economic environments by building new businesses and
playing the cycle well (Odet, Aker, Immsi). 4% is invested in “new growth companies” that mostly depend
on the success of their new ventures rather than on the overall economic environment (Tanzanian, Aker
Bio, Soitec…), 9% in emerging markets companies and 48% in established growth companies (such as
Dell).
As of 30 September 2011, the portfolio is invested 59% in Europe, 23% in North America, 6% in Japan,
8% in Asia ex Japan, and 4% in other countries.
Source: AXA Investment Managers

fund performance
schedule of investments
investment objective
The investment objective of the AXA WM – Talents Fund is to achieve long-term capital growth from an
actively managed portfolio of listed equity and equity-related securities or of derivative instruments on
such securities. The aim of the Fund is to achieve its objectives through an exposure to international
equities, by investing all or substantially all of its assets as a feeder fund into Luxembourg domiciled AXA
World Funds - Framlington Talents (“the Underlying Fund” denominated in Euros).
table of performance
as at 30 September 2011
AXA WM –
Talents Fund
MSCI World
Index
1 mth
(%)
3 mths
(%)
6 mths
(%)
YTD
(%)
1 yr^
(%)
3 yrs^
(%)
5 yrs^
(%)
10 yrs^
(%)
since
commencement
(ann)^*%
-3.28 -18.06 -23.38 -18.06 -14.49 -4.15 -12.33 N/A -7.83
-0.93 -11.38 -13.11 -10.31 -4.73 -2.56 -5.47 N/A -1.61
Source: Lipper
Performance figures are calculated on a single pricing basis, with all dividends and distributions reinvested, taking
into account all charges which would have been payable upon such reinvestment. Investors should note that the past
performance of the manager of the Fund, AXA Wealth Management Ptd Ltd, is not necessarily indicative of its future
performance or that of the Fund
* Launch Date : 28 February 2005
Fund Start Date : 13 April 2005
^ Annual Compounded return
portfolio statement
as at 30 September 2011
Description Market Value (SGD) % of NAV
Units in AXA World Funds - Framlington Talents 2,444,533 101.71
Net Current Assets (41,139) (1.71)
Net assets attributable to unitholders 2,403,394 100.00
geographical classification of underlying fund
as at 30 September 2011
Country Market Value (Euro) % of NAV
Bermuda
Frontline Ltd 481,818 0.29
Bermuda Total 481,818 0.29
Brazil
Itau Unibanco Holding SA 1,828,405 1.10
Brazil Total 1,828,405 1.10
Canada
Fairfax Financial Holdings Ltd 2,430,887 1.47
North American Palladium Ltd 857,237 0.51
Research In Motion Ltd 1,085,247 0.66
Canada Total 4,373,371 2.64
Chile
CIA Pesquera Camanchaca SA 217,254 0.13
Chile Total 217,254 0.13
China
Alibaba.Com Ltd 928,260 0.56
Baidu Inc 848,478 0.51
Cogo Group Inc 607,246 0.37
Fosun International Ltd 1,717,339 1.04
Sohu.Com Inc 741,766 0.45
Suntech Power Holdings Co Ltd 2,093,636 1.26
China Total 6,936,725 4.19
France
Casino Guichard Perrachon SA 3,737,790 2.26
Eramet 1,421,550 0.86
Etablissements Maurel Et Prom 1,955,081 1.18
Financiere De L’Odet 15,492,263 9.36
Iliad SA 2,580,300 1.56
Lafarge SA 2,088,800 1.26
Soitec 776,672 0.46
France Total 28,052,456 16.94

schedule of investments
schedule of investments
Country Market Value (Euro) % of NAV Country Market Value (Euro) % of NAV
Germany
Porsche Automobil Holding 3,875,550 2.34
Wacker Chemie AG 1,598,740 0.97
Germany Total 5,474,290 3.31
Hong Kong
Chaoda Modern Agriculture Holdings Ltd 1,179,248 0.71
China Mining Resources Group Ltd 1,018,250 0.62
Hong Kong Total 2,197,498 1.33
India
United Breweries Holdings Ltd 1,150,971 0.70
India Total 1,150,971 0.70
Italy
Assicurazioni Generali SpA 1,812,000 1.09
Immsi SpA 7,523,557 4.55
Italy Total 9,335,557 5.64
Japan
Livedoor Co Ltd 393 0.00
Rakuten Inc 2,030,796 1.23
Softbank Corp 7,109,246 4.29
Usen Corp 258,441 0.16
Japan Total 9,398,876 5.68
Luxembourg
HBI 18,170,154 10.98
Orco Property Group 2,231,598 1.35
Luxembourg Total 20,401,752 12.33
Norway
Aker ASA 9,777,567 5.91
Aker Biomarine ASA 4,445,807 2.69
Orkla ASA 2,304,349 1.38
Norway Total 16,527,723 9.98
Russia
United Co Rusal Plc 3,189,172 1.93
Russia Total 3,189,172 1.93
Singapore
Raffles Education Corp Ltd 382,712 0.23
Singapore Total 382,712 0.23
South Africa
African Rainbow Minerals Ltd 1,799,499 1.09
South Africa Total 1,799,499 1.09
South Korea
LG Corp 1,856,238 1.12
South Korea Total 1,856,238 1.12
Spain
Acciona SA 3,869,400 2.34
Banco Santander SA 6,243,573 3.77
Spain Total 10,112,973 6.11
Switzerland
Glencore International Plc 745,981 0.45
Roche Holding Ag 5,282,487 3.19
Switzerland Total 6,028,468 3.64
United States
Amazon.Com Inc 2,607,641 1.58
Charles Schwab Corp 1,533,794 0.92
Danaher Corp 3,189,360 1.93
Dell Inc 9,587,570 5.79
Expedia Inc 992,784 0.60
Fedex Corp 1,889,511 1.13
Google Inc 1,932,446 1.17
Liberty Media Corp - Liberty Capital 1,187,822 0.72
Linkedin Corp 583,287 0.35
Netflix Inc 729,803 0.44
Oracle Corp 1,107,924 0.67
Paychex Inc 993,149 0.60
Plug Power Inc 96,163 0.06
Sandisk Corp 952,368 0.58
Starbucks Corp 2,796,643 1.69
Wells Fargo & Co 1,830,970 1.11
United States Total 32,011,235 19.34
Portfolio of Investments 161,756,993 97.72
Net Current Assets 3,771,329 2.28
Net Assets 165,528,322 100.00

schedule of investments
schedule of investments
industrial classification of underlying fund
as at 30 September 2011
Market Value
Industry Classification (Euro) % of NAV
Diversified Financials 18,170,154 10.98
Air Freight & Logistics 17,381,774 10.50
Automobiles 11,399,107 6.89
Metals & Mining 10,749,028 6.49
Computers & Peripherals 10,539,939 6.37
Commercial Banks 9,902,948 5.98
Diversified Financial Services 9,777,567 5.91
Industrial Conglomerates 7,349,947 4.44
Wireless Telecommunication Services 7,109,246 4.29
Internet & Catalog Retail 6,361,023 3.84
Pharmaceuticals 5,282,487 3.19
Internet Software & Services 5,034,631 3.04
Biotechnology 4,445,807 2.69
Insurance 4,242,887 2.56
Electric Utilities 3,869,400 2.34
Food & Staples Retailing 3,737,790 2.26
Semiconductors & Semiconductor Equipment 2,870,308 1.73
Hotels, Restaurants & Leisure 2,796,643 1.69
Diversified Telecommunication Services 2,580,300 1.56
Oil, Gas & Consumable Fuels 2,436,899 1.47
Real Estate Management & Development 2,231,598 1.35
Construction Materials 2,088,800 1.26
Communications Equipment 1,692,493 1.02
Chemicals 1,598,740 0.97
Capital Markets 1,533,794 0.93
Media 1,446,263 0.87
Food Products 1,396,502 0.84
Beverages 1,150,971 0.70
Software 1,107,924 0.67
IT Services 993,149 0.60
Diversified Consumer Services 382,712 0.23
Electrical Equipment 96,162 0.06
Portfolio of Investments 161,756,993 97.72
Net Current Assets 3,771,329 2.28
Net Asset 165,528,322 100.00
asset class classification of underlying fund
as at 30 September 2011
Asset class Market Value (Euro) % of NAV
Equities 156,922,143 94.80
Depository Receipts 4,770,519 2.88
Warrants 64,331 0.04
Grand Total 161,756,993 97.72
top 10 holdings of underlying fund
No. Description Market Value (Euro) % of NAV
as at September 30, 2011**
1 HBI 18,170,154 10.98
2 Financiere De L’Odet 15,492,263 9.36
3 Aker ASA 9,777,567 5.91
4 Dell Inc 9,587,570 5.79
5 Immsi SpA 7,523,557 4.55
6 Softbank Corp 7,109,246 4.29
7 Banco Santander SA 6,243,573 3.77
8 Roche Holding AG 5,282,487 3.19
9 Aker Biomarine ASA 4,445,807 2.69
10 Porsche Automobil Holding 3,875,550 2.34
No. Description Market Value (Euro) % of NAV
as at September 30, 2010**
1 Financiere De L’Odet 23,153,056 10.57
2 Softbank Corp 12,144,344 5.54
3 Immsi SpA 11,475,000 5.24
4 North Amer Palladium Ltd 11,195,673 5.11
5 Dell Inc 10,984,996 5.01
6 Aker ASA 9,276,242 4.23
7 HBI 7,893,922 3.61
8 Acciona SA 7,470,000 3.41
9 United Co Rusal Plc 6,949,693 3.17
10 Chaoda Modern Agriculture 6,334,055 2.89
** Information extracted from the underlying fund - AXA World Funds - Framlington Talents.
10
11

schedule of investments
financial statements
expense ratio
1 Oct 2010 to 1 Oct 2009 to
30 Sept 2011 (%) 30 Sept 2010 (%)
AXA WM - Talents Fund (Singapore level fund) (A) 4.09 3.83
AXA World Funds - Framlington Talents (Underlying fund) (B) 1.63 1.64
Rebate from Underlying Fund (C) 0.77 0.76
Expense Ratio [(A+B)-C] 4.95 4.71
Expense Ratio is calculated in accordance with IMAS’ guidelines, and is stated on an annualised basis. The expense
ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange
gains/losses, front or back end loads arising for the purchase of sale of other schemes and tax deducted at source or
arising out of income received.
turnover ratio
1 Oct 2010 to 1 Oct 2009 to
30 Sept 2011 (%) 30 Sept 2010 (%)
AXA WM - Talents Fund (Singapore level fund) 4.87 4.34
AXA World Funds - Framlington Talents (Underlying fund) 27.26 25.06
amount of redemptions and subscriptions for the period
1 Apr 2011 to
30 Sept 2011 (S$)
Subscriptions 52,079
Redemptions 187,622
soft dollar commission
Nil
derivatives - feeder fund
See note 5 of notes to the financial statements on page 17.
statement of total return
for the half year ended 30 September 2011 (unaudited)
6 months 6 months
ended
ended
30 Sep 2011 30 Sep 2010
Note S$ S$
Income
Management fee rebate income 2.2 11,221 14,395
Less: Expenses 2.3
Accounting and reporting fees 5,686 7,972
Management fee 22,101 28,995
Registrar fee 23,892 19,520
Trustee fee 5,014 4,403
Other expenses 7,266 14,449
Total 63,959 75,339
Net loss (52,738) (60,944)
Net loss on value of investment
Net realised loss on investment sold (108,111) (168,358)
Net change in fair value of investment (614,875) 81,620
Net realised (loss)/gain on financial derivatives contracts (529) 75
Net change in fair value of financial derivatives contracts - (250)
Net foreign exchange differences 13 111
Net loss on value of investment (723,502) (86,802)
Total deficit for the period (776,240) (147,746)
investments in collective investment schemes
Please refer to the “schedule of investments” on page 7.
borrowings
Not applicable.
related-party transactions
See note 9 of notes to the financial statements on page 21.
any other material information that will adversely affect the valuation of the fund
Nil
The accompanying notes form an integral part of these financial statements.
12
13

financial statements
financial statements
balance sheet
as at 30 September 2011 (unaudited)
Assets
The accompanying notes form an integral part of these financial statements.
14
As at
As at
30 Sep 2011 31 Mar 2011
Note S$ S$
Investment 2,444,533 3,392,770
Receivables 3 2,139 2,857
Cash and bank balances 10,000 10,000
Total assets 2,456,672 3,405,627
Liabilities
Bank overdrafts 541 11,536
Payables 4 52,737 78,914
Net assets attributable to unitholders 6 2,403,394 3,315,177
Total liabilities 2,456,672 3,405,627
portfolio statement
as at 30 September 2011 (unaudited)
Percentage of
total net assets
Holdings Fair value attributable to unitholders
as at as at as at as at
30 Sep 2011 30 Sep 2011 30 Sep 2011 31 Mar 2011
Units S$ % %
Primary – By Geography
Quoted
Luxembourg
AXA World Funds - Framlington Talents 6,887 2,444,533 101.71 102.34
Investment 2,444,533 101.71 102.34
Other net liabilities (41,139) (1.71) (2.34)
Net assets attributable to unitholders 2,403,394 100.00 100.00
Secondary - By Industry
As the AXA WM - Talents Fund invests wholly into an offshore mutual fund which is domiciled in Luxembourg
and denominated in Euro, it is not meaningful to classify the investments into investment fund by industry.
notes to the financial statements
for the half year ended 30 September 2011 (unaudited)
These notes form an integral part of and should be read in conjunction with the accompanying financial
statements.
1. General information
AXA ACHIEVE (the “Fund”) is a Singapore-authorised umbrella collective investment scheme constituted
by a Trust Deed dated 17 February 2005 as amended by a first Supplemental Deed dated 27 January
2006, between AXA Wealth Management Singapore Pte Ltd (the “Manager”) and RBC Dexia Trust Services
Singapore Limited (the “Trustee”). The Trust Deed is governed by the laws of the Republic of Singapore.
At the date of this report, the Fund currently comprises one Sub-Fund, namely AXA WM – Talents Fund
(the “Sub-Fund”). The Sub-Fund invests all or substantially all of its assets as a feeder fund into AXA
World Funds – Framlington Talents (the “Underlying Fund”). The Sub-Fund was first offered for sale on
28 February 2005.
2. Summary of significant accounting policies
2.1 Basis of presentation
The financial statements, expressed in Singapore dollars, have been prepared under the historical
cost convention, as modified by the revaluation of financial assets at fair value through profit or loss,
and in accordance with the recommendations of Statement of Recommended Accounting Practice
7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of
Singapore.
2.2 Recognition of income
Management fee rebate income is recognised when the right to receive payment is established.
2.3 Expenses charged to the Sub-Fund
All direct expenses relating to the Sub-Fund are charged directly to the Statement of Total Return.
Management fee is paid to the Manager while trustee fee and registrar fee is paid to the Trustee
and Registrar.
2.4 Distribution policy
The Managers have the absolute discretion to determine whether a distribution is to be made. In
such an event, an appropriate amount will be transferred to a distribution account to be paid out
on the distribution date. The amount shall not be treated as part of property of the Sub-Fund. The
Manager does not propose any distribution to unitholders for the half year ended 30 September
2011. (For the half year ended 30 September 2010 : Nil).
2.5 Investment
Investment is classified as financial assets at fair value through profit or loss. Purchases of
investment are recognised on the trade date and are initially recorded at fair value.
Investment is subsequently carried at fair value. The fair value used for the investment held by
the Sub-Fund is the current market quoted net asset value of the underlying fund at balance sheet
date. Net change in fair value of investment is recognised in the Statement of Total Return.
Investment is derecognised on the trade date of disposal. The resultant realised gains and losses
on the sales of investment is computed on the basis of the difference between the weighted
average cost and selling price net of transaction costs and are recognised in the Statement of Total
Return.
15

financial statements
financial statements
2.6 Foreign currencies
(i) Functional and presentation currency
The Fund’s investors are mainly from Singapore with the subscriptions and redemptions of the
units denominated in Singapore dollars. The performance of the Sub-Fund is measured and
reported to the investors in Singapore dollars. The Manager considers the Singapore dollar as the
currency which most faithfully represents the economic effects of the underlying transactions,
events and conditions for the Sub-Fund. The Sub-Fund’s functional and presentation currency
is the Singapore dollar.
(ii) Transactions and balances
Foreign currency transactions are translated to Singapore dollars using the exchange rates
prevailing at the dates of the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the translation at year-end exchange rates
of monetary assets and liabilities denominated in foreign currencies are recognised in the
Statement of Total Return.
2.7 Cash and bank balances and bank overdrafts
Cash and bank balances comprise cash on hand and deposits with financial institutions which are
subject to an insignificant risk of changes in value. Bank overdrafts represent borrowings by the
Sub-Fund.
2.8 Receivables
Receivables are initially recognised at fair value, plus transaction costs and subsequently carried
at amortised cost, using the effective interest method.
2.9 Payables
Payables are initially recognised at fair value and subsequent carried at amortised cost, using the
effective interest method.
2.10 Financial derivatives
Financial derivatives are entered for the purposes of efficient portfolio management, tactical
asset allocation or specific hedging of financial assets held as determined by the Manager and in
accordance with the provisions of the Trust Deed.
Financial derivatives outstanding at the end of the financial year are measured at their fair values
using the marked-to-market method and the resultant gains and losses are recognised in the
Statement of Total Return.
2.11 Income tax
AXA WM - Talents Fund was granted the status of Designated Unit Trust on 17 February 2005
and therefore, the following income is exempted from tax in accordance with Section 35(12) and
35(12A) of the Singapore Income Tax Act (Cap. 134) (“Income Tax Act”) by Inland Revenue Authority
of Singapore:
(i) gains or profits derived from Singapore or elsewhere from the disposal of securities;
(ii) interest (other than interest for which tax has been deducted under section 45 of the Income Tax
Act);
(iii) dividends derived from outside Singapore and received in Singapore;
(iv) gains or profits derived from foreign exchange transactions, transactions in futures contracts,
transactions in interest rate or currency forwards, swaps or option contracts and transactions
in forwards, swaps or option contracts relating to any securities or financial index; and
(v) distributions from foreign unit trusts derived from outside Singapore and received in
Singapore.
16
3. Receivables
30 Sep 2011 31 Mar 2011
S$ S$
Management fee rebate receivable 1,619 2,337
Due from unitholders 520 520
2,139 2,857
4. Payables
30 Sep 2011 31 Mar 2011
S$ S$
Accrued expenses 52,737 78,914
5. Fair value of financial derivatives contracts
Financial derivative contracts comprise spot and forward exchange contracts for the sale and purchase of
foreign currencies. As at 30 September 2011 and 31 March 2011, there were no outstanding financial
derivatives contracts.
6. Net assets attributable to unitholders
30 Sep 2011 31 Mar 2011
S$ S$
At the beginning of the period/year 3,315,177 4,231,655
Operations
Change in net assets attributable to unitholders
resulting from operations (776,240) 267,294
Unitholders’ contributions/(withdrawals)
Creation of units 52,079 121,146
Cancellation of units (187,622) (1,304,918)
Change in net assets attributable to unitholders
resulting from net creation and cancellation of units (135,543) (1,183,772)
Total decrease in net assets attributable to unitholders (911,783) (916,478)
At the end of the period/year 2,403,394 3,315,177
Units in issue (note 7) 4,099,773 4,300,704
Net asset attributable to unitholders per unit $0.59 $0.77
17

financial statements
financial statements
7. Units in issue
30 Sep 2011 31 Mar 2011
Units
Units
Units at beginning of the period/year 4,300,704 5,961,249
Units created 73,503 174,477
Units cancelled (274,434) (1,835,021)
Units at the end of the period/year 4,099,773 4,300,704
8. Financial risk management
The overall responsibility for the implementation of the Sub-Fund’s financial risk management policies lies
with the Investment Manager of the Underlying Fund, AXA Funds Management S.A. (“Underlying Manager”)
who amongst other things, focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the financial performance of the Underlying Fund.
The Sub-Fund’s investments are significantly affected by changes to market economies, market interest
rates, foreign exchange fluctuations, regulation and political developments depending on the countries the
Underlying Fund invests into. Specific guidelines on exposures to certain geographic regions or industries
are in place for the Underlying Fund to reduce the Underlying Fund’s risk exposures.
The following is a summary of the main risk and risk management policies:
8.1 Foreign exchange risk
The Sub-Fund invests in securities denominated in currencies other than Singapore dollars.
Consequently, it may be affected by exchange rate regulations or changes in the exchange rate
between the Singapore dollar and such other currencies. In managing exchange rate risks, the
Manager may, at his discretion, implement a currency management strategy either to reduce
currency volatility or to adjust the currency exposures of the Sub-Fund.
The table below summaries the Sub-Fund’s exposure to currency risk:
as at 30 September 2011
SGD EURO USD Total
Assets
Investment - 2,444,533 - 2,444,533
Receivables 520 1,619 - 2,139
Cash and bank balances 10,000 - - 10,000
10,520 2,446,152 - 2,456,672
Liabilities
Bank overdrafts - 541 - 541
Payables 49,839 - 2,898 52,737
Net assets attributable to unitholders 2,403,394 - - 2,403,394
2,453,233 541 2,898 2,456,672
Net financial assets/(liabilities) (2,442,713) 2,445,611 (2,898) -
As at 31 March 2011
SGD EURO USD Total
Assets
Investment - 3,392,770 - 3,392,770
Receivables 520 2,337 - 2,857
Cash and bank balances 10,000 - - 10,000
10,520 3,395,107 - 3,405,627
Liabilities
Bank Overdrafts - 11,536 - 11,536
Payables 68,430 - 10,484 78,914
Net assets attributable to unitholders 3,315,177 - - 3,315,177
3,383,607 11,536 10,484 3,405,627
Net financial assets/(liabilities) (3,373,087) 3,383,571 (10,484) -
Currency exposure net of those
denominated in the functional currency - 3,383,571 (10,484) 3,373,087
Investment, which is a significant item in the balance sheet, is exposed to currency risk and other
price risk. The Manager has considered the impact of currency risk sensitivity on non-monetary
assets as part of price risk sensitivity analysis.
As at 30 September 2011 and 31 March 2011, the Sub-Fund does not hold substantial monetary
assets/liabilities. Changes in foreign exchange rates on monetary assets/liabilities will not result
in a significant change in the net asset value of the Sub-Fund. Consequently, no separate sensitivity
analysis on foreign currency risk has been presented.
8.2 Price risk
To manage risks associated with fluctuations in the pricing of the Underlying Fund’s assets, the
Underlying Fund’s investments are monitored by the Underlying Manager on a regular basis such
as to assess changes in fundamentals and valuation. Guidelines are also set to reduce the
Underlying Fund’s risk exposures to various geographies or industries; alternatively, the Underlying
Fund may be hedged through derivative strategies.
The Sub-Fund’s sensitivity to the market is measured using its beta, a ratio that describes how the
expected return of a portfolio is correlated to the return of the financial market as a whole. The
monthly Sub-Fund price movements are measured against the price movement of the benchmark,
which is its Underlying Fund’s benchmark, MSCI World Index, to derive the beta. As at 30 September
2011, the Sub-Fund’s beta was 0.72 (31 March 2011 : 0.90).
The table below summarises the impact of increases/decreases from the Sub-Fund’s underlying
investments in equities on the Sub-Fund’s net assets attributable to the unitholders as at 30
September 2011 and 31 March 2011. The analysis was based on the assumptions that the
index components within the benchmark increased/decreased by a reasonable possible shift,
with all variables held constant and that the fair value of the Sub-Fund’s equity investment moved
according to the beta.
Currency exposure net of those
denominated in the functional currency - 2,445,611 (2,898) 2,442,713
18
19

financial statements
financial statements
Impact of 5% (31 March 2011:6%)
movement in benchmark
Fund Benchmark 30 Sep 2011 31 Mar 2011
S$ S$
AXA WM - Talents Fund MSCI World Index 86,522 179,020
8.3 Liquidity risk
The Sub-Fund is exposed to daily cancellation of units. It therefore invests the majority of its assets
through the Underlying Fund in investments that are traded in an active market and can be readily
disposed of.
To ensure that the Underlying Fund maintains sufficient cash and cash equivalents and to meet
its obligations, the Underlying Manager takes reasonable efforts to purchase relatively well traded
securities. A typical approach to addressing a less liquid security would be to limit its exposure to
a level where the Underlying Manager can liquidate its position without a substantial impact to its
value. Balances due within 12 months equal their carrying balances, as the impact of discounting
is not significant.
As at 30 September 2011 and 31 March 2011, all financial liabilities are payable within the next
three months.
8.4 Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes
in market interest rates. Fixed deposits have short term to maturity and have minimal exposure
to interest rate risk. Investment funds that invest in equity securities may be subject to interest
rate risk as any interest rate change may affect the equity risk premium at varying degrees. To
manage this risk, the Underlying Manager analyses how interest rate changes may affect different
industries and securities and then seeks to adjust the Underlying Fund’s portfolio investments
accordingly. However, the effects of changes in interest rates on the Sub-Fund’s portfolio may not
be quantified as the relationship between interest rates and the value of the equity securities is
indirect. Hence, no separate sensitivity analysis has been presented.
8.5 Credit risk
Credit risk is the risk that counterparty will fail to perform contractual obligations, either in whole
or in part, under a contract. Concentrations of credit risk are minimised primarily by ensuring
counterparties, together with the respective credit limits, are approved.
As such, the Fund does not have a concentration of credit risk that arises from an exposure
to a single counterparty. Furthermore, the Fund does not have a material exposure to group
of counterparties which are expected to be affected similarly by changes in economic or other
conditions. All transactions in the Underlying Fund are settled/paid upon delivery using approved
brokers. The risk of default is considered minimal, as delivery of securities is only made once
the broker has received payment. Payment is made on a purchase once the securities have been
received by the broker. The trade will fail if either party fails to meet its obligation.
Credit risk also arises from cash and cash equivalents and derivative positions held with financial
institutions. The tables below summarize the credit rating of banks and custodians in which the
Fund’s assets are held as at 30 September 2011 and 31 March 2011.
20
21
Credit Rating
Source of
Credit rating
30 September 2011
Bank
State Street Bank A+ S&P
31 March 2011
Bank
State Street Bank A+ S&P
8.6 Capital management
The Sub-Fund’s capital is represented by the net assets attributable to unitholders. The Sub-Fund
strives to invest the subscriptions of redeemable participating units in investments that meet
the Sub-Fund’s investment objectives while maintaining sufficient liquidity to meet unitholder
redemptions.
9. Related party transactions
The Manager of the Fund is AXA Wealth Management Singapore Pte Ltd, the Manager of the Underlying
Fund is AXA Funds Management S.A. and the Trustee is RBC Dexia Trust Services Singapore Limited.
Related party transactions during the period:
6 months 6 months
ended
ended
30 Sep 2011 30 Sep 2010
S$ S$
Fee rebate from Underlying Manager 11,221 14,395
Fee paid to Manager 22,101 28,995
Fee paid to Trustee 5,014 4,403
10. Financial ratios
1 Oct 2010 to 1 Oct 2009 to
30 Sep 2011 30 Sep 2010
% %
Expense ratio 1 4.95 4.71
(excludes performance fee of underlying fund)
Expense ratio 1 5.01 6.30
(includes performance fee of underlying fund)
Turnover ratio 2 4.87 4.43
1 The expense ratio is calculated in accordance with IMAS’ guidelines on the disclosure of expense ratios. The expense
ratio does not include (where applicable) brokerage and other transaction costs, foreign exchange gains/losses,
front or back end loads arising from the purchase or sale of other funds and tax deducted at source or arising out
of income received. The expense ratio has incorporated both the AXA WM - Talents Fund (SG) and the unaudited
weighted expense ratio of AXA World Funds - Framlington Talents (Lux).
2 The turnover ratio is calculated in accordance with the formula stated in the “Code on Collective Investment
Schemes”.

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