SMART INVESTMENT

2

Contents

AXA Investment Managers

Markets Today

Investment Opportunities

Smart Investment

Global Recovery Fund

Hedged Global Bond Fund

Wrap up

3

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 Magazine’s Top 500

US$ 60 billion market capitalization

4

Markets Today

Current market conditions

Economic slowdown

Global recession

Business sentiments poor

Consumer confidence low

5

Markets Today

Fall in global markets

Restrictive monetary policies (interest rates)

Hike in oil prices

Technology sector melt-down

Terrorist attacks

6

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”

7

Investment Opportunities

Financial Panic of October 1987

Drastic fall in prices

Global recession outlook

but ...

Markets recovered

30 month bull market

8

Investment Opportunities

FINANCIAL PANIC 1987

200

220

240

260

280

300

320

340

360

380

Sep

-87

Nov

-87

Jan-

88

Mar

-88

May

-88

Jul-8

8

Sep

-88

Nov

-88

Jan-

89

Mar

-89

May

-89

Jul-8

9

Sep

-89

Nov

-89

Jan-

90

Mar

-90

May

-90

Jul-9

0

9

Investment Opportunities

ASIAN FINANCIAL CRISIS

60

70

80

90

100

110

120

May

-97

Jul-

97

Sep

-97

Nov

-97

Jan-

98

Mar

-98

May

-98

Jul-

98

Sep

-98

Nov

-98

Jan-

99

Mar

-99

May

-99

Jul-

99

Sep

-99

Nov

-99

Jan-

00

Mar

-00

May

-00

10

SINCE JULY 2000, MARKETS HAVE FALLEN BY 30% (MSCI WORLD)

600

700

800

900

1000

1100

1200

Jun-

00

Jul-0

0

Aug-

00

Sep-

00

Oct

-00

Nov

-00

Dec

-00

Jan-

01

Feb-

01M

ar-0

1

Apr-

01

May

-01

Jun-

01

Jul-0

1

Aug-

01

Sep-

01

Oct

-01

Nov

-01

Dec

-01

Jan-

02

Feb-

02M

ar-0

2

Investment Opportunities

??

11

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

12

SMART INVESTMENT

Product Lead In

Global RecoveryFund60%

Hedged GlobalBond Fund

40%

Resilience towards bear markets

Opportunities for growth

Added security and stability

Reduce volatility

Recurring Single Premium

Dollar Cost Averaging

“SMART INVESTMENT”

SUITABLE FOR ALL INVESTORS

13

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

14

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

15

DELL

5

10

15

20

25

30

35

Jan-

01

Feb-

01

Feb-

01

Mar

-01

Mar

-01

Apr-0

1

Apr-0

1

May

-01

May

-01

Jun-

01

Jun-

01

Jul-0

1

Jul-0

1

Aug-

01

Aug-

01

Aug-

01

Sep-

01

Sep-

01

Oct-0

1

Pric

eof

Del

l

Dell FT World GBP

MICROPAL

Bought stock several times since February. Stock has outperform benchmark (especially IT index)

Dell = -3% versus Benchmark = -20%

Global Recovery Fund

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

16

SONY

0

2000

4000

6000

8000

10000

12000

14000

Jun-0

0

Jul-0

0

Aug-0

0

Sep-0

0

Oct-0

0

Nov-0

0

Dec-0

0

Jan-0

1

Feb-0

1

Mar-0

1

Apr-0

1

May-0

1

Jun-0

1

Jul-0

1

Aug-0

1

Sep-0

1

()

Pric

eof

Sony

Yen

Sony FT World Y

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

Global Recovery Fund

DISCIPLINE BUYING AND SELLING PROCESS (Buy low, sell high)

17

MICROPAL

CISCO SYSTEMS

0

10

20

30

40

50

60

70

80

90

Mar-0

0

Apr-0

0

May-0

0

Jun-0

0

Jul-0

0

Aug-0

0

Sep-0

0

Oct-0

0

Nov-0

0

Dec-0

0

Jan-01

Feb-0

1

Mar-0

1

Apr-0

1

May-0

1

Jun-0

1

Jul-0

1

Aug-0

1

Sep-0

1

Price

ofof

Cisc

oSy

stem

s

Cisco Systems FT World GBP

Sold @ 60.1

Bought @ 20, stock deep in oversold territory

Since then, stock has outperformed rest of IT sector

Global Recovery Fund

WORLD LEADER IN ITS FIELD1-RATED STOCK

18

Global Recovery Fund

30th September 98 To 28th September 01, Bid-Bid, Gross, Based In U S Dollar, Calculation Indexed

Off-bid uses actual prices. Curr-chg uses bid-bid adjusted for current spread. The value of your units may go down as well as up. Past performance is not necessarily a guide to the

future.

Sun Life GP Global Recovery (OS) 5.86

FTSE Act Wld Index (GBP) (NX) 3.90

77.5

85.0

92.5

100.0

107.5

115.0

122.5

130.0

137.5

145.0

152.5

160.0

167.5

Price Indexed

Percent Change

-22.5

-15.0

-7.5

0.0

7.5

15.0

22.5

30.0

37.5

45.0

52.5

60.0

67.5

99 Apr Jul Oct 00 Apr Jul Oct 01 Apr Jul

After Sep 11 Before Sep 113 year cumulative return 5.9% 23.3%

MICROPAL

19

Global Recovery Fund29th September 00 To 28th September 01, Bid-Bid, Gross, Based In U S

Dollar, Calculation Indexed

Off-bid uses actual prices. Curr-chg uses bid-bid adjusted for current spread. The value of your units may go down as well as up. Past performance is not necessarily a guide to the

future.

Sun Life GP Global Recovery (OS) -25.65

FTSE Act Wld Index (GBP) (NX) -28.05

60

65

70

75

80

85

90

95

100

105

110

Price Indexed

Percent Change

-40

-35

-30

-25

-20

-15

-10

-5

0

5

10

01 Apr Jul

MICROPAL

RESILIENCE!

20

Global Recovery Fund

AWARDS!

“Global Equity Fund Manager of the Year 2001” - International Money Marketing Magazine

MICROPAL

‘A’ rating by S&P Fund Research

MICROPAL

21

Product Lead In (Recap)

“SMART INVESTMENT”

SUITABLE FOR ALL INVESTORS

SMART INVESTMENT

Global RecoveryFund60%

Hedged GlobalBond Fund

40%

22

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

23

Hedged Global Bond Fund

Bonds

Safe and secure

Added security and stability

Reduce volatility

Diversification of asset class

Geographical diversification

24

Hedged Global Bond Fund

Market Values by Currency (as at 09 Sept 2001)

EUR25%

USD48%

JPY17%

GBP5%

CAD3%

SEK1%

AUD1%

EUR

USDJPY

GBP

CAD

SEKAUD

25

Hedged Global Bond Fund

SINCE INCEPTION, RATE OF RETURN = 9.6% PER ANNUM

-5.0

0.0

5.0

10.0

15.0

20.0

PORTFOLIO BENCHMARK

26

Act Now

Invest Smart!

Prices have fallen drastically

Opportunity to buy low and sell high

FINANCIAL PANIC 1987

200

220

240

260

280

300

320

340

360

380

Se

p-8

7

No

v-8

7

Ja

n-8

8

Ma

r-8

8

Ma

y-8

8

Ju

l-8

8

Se

p-8

8

No

v-8

8

Ja

n-8

9

Ma

r-8

9

Ma

y-8

9

Ju

l-8

9

Se

p-8

9

No

v-8

9

Ja

n-9

0

Ma

r-9

0

Ma

y-9

0

Ju

l-9

0

27

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

28

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