For professional investors only and must not be relied upon by retail clients. Circulation must be restricted accordingly.

For professional investors only and must not be relied upon by retail clients. Circulation must be restricted accordingly.

With a history dating back to 1979, the AXA Distribution range of Funds seeks to offer cautious investors long-term investment performance, while looking to reduce portfolio volatility. While each Fund differs in terms of its own specific investment focus or remit, all are managed in accordance with the AXA Distribution investment model. A clearly defined, consistent strategy The aim of the entire AXA Distribution Fund range is to achieve a growing income, with some prospects for capital growth, over the medium to long term. To this end, the AXA Distribution strategy revolves around two key elements investing in quality, stable assets, while maintaining a diversified central asset mix that is broadly consistent over time. Focus on reducing investment volatility over time Investing in quality assets is fundamental to the AXA Distribution investment strategy. The logic here is simple the higher the quality of the Fund s assets, the greater the potential for reducing volatility and delivering long-term performance for the more cautious investor. AXA Distribution Funds invest in a mixture of quality equity and fixed income assets (and cash in some cases). This diversification of assets can help to reduce volatility by spreading risk. A long-term successful track record The flagship AXA Distribution strategy has a track record that spans over 35 years, and spawned a family of similarly structured funds. Each of the Funds within the AXA Distribution range is characterised by a 3 AXA DISTRIBUTION FUND RANGE

diversified central asset mix. This provides a stable platform from which we believe we can build long-term performance, whatever the prevailing market and economic conditions. An investment in quality assets Blue chip equities: The Fund manager looks to invest in companies with robust, proven business models, favouring those with strong competitive positions, good cash generation, healthy balance sheets and capable, committed management. Buying quality companies when they are out of favour, or those that are trading at a discount to their intrinsic value, is a key aim. Once a stock is added to the portfolio, it is generally held for the long-term, in order to fully realise its value for investors. Inflation-linked bonds: Significant exposure to inflation-linked bonds is a defining characteristic of the AXA Distribution Fund range and is a key element of the strategy, due to the distinct risk/return characteristics these bonds offer. Not only do they provide returns that rise in line with inflation, but their generally low performance correlation with other major asset classes, means they are an excellent portfolio diversifier. Experienced investment team The entire Distribution range is overseen by Jim Stride, 39 year industry veteran, who is co-manager across the range with Jamie Forbes-Wilson, Matthew Huddart and William Howard. The AXA Distribution investment management team is, in turn, fully supported by a large team of specialist portfolio managers and analysts within the wider business. AXA DISTRIBUTION FUND RANGE 4

AXA Distribution Fund The flagship AXA Distribution Fund seeks growing income and capital growth through longer-term investment performance, while looking to reduce overall volatility. The Fund Manager looks to maintain a strict focus on investing in quality assets particularly blue-chip names as part of a long-term strategy. Larger companies tend to offer not only greater global exposure and business diversification than their smaller counterparts, but also greater yield. The Fund is also diversified via an asset mix that includes Index-linked bonds, UK gilts and cash, its asset allocation remaining broadly unchanged over time. Furthermore, the Fund s fixed income allocation is typically dominated by index-linked gilts, which tend to offer the most stable, real returns regardless of the prevailing economic conditions. Consistent approach to asset allocation and stock selection A core focus on quality blue chip assets Index-linked gilts to reduce market volatility Fund analysis Launch date 16/05/08 IA sector IA Mixed Investment 20-60% Shares Investment manager AXA Investment Managers UK Ltd Central asset mix Cash 3% UK Gilts 7% Co-Fund Managers Pay dates Jim Stride Jamie Forbes-Wilson 31 July, 31 Oct, 31 Jan, 30 Apr Index-linked Gilts 35% UK Equities 55% Distribution method Dividend Source: AXA Investment Managers as at 31 March 2016. 5 AXA DISTRIBUTION FUND RANGE

AXA Defensive Distribution Fund The AXA Defensive Distribution Fund also looks to achieve growing income with reduced overall volatility, but is further structured with the more cautious investor in mind. While savers were once compensated for rising inflation with higher interest rates that made savings more attractive, the current environment of low interest rates, coupled with the long-term threat of rising inflation, does not make for an ideal backdrop. The Fund Managers therefore look to provide an alternative to cash on deposit that remains defensive. The Fund invests in equities to provide the possibility of long-term returns ahead of inflation, yet its more generous total allocation to bonds UK index-linked gilts in particular and increased cash level make it the most cautious option within our Distribution range. Most conservative of the AXA Distribution range of Funds Aimed at very risk-averse investors Majority invested in fixed income assets Fund analysis Launch date 03/10/08 IA sector Investment manager Co-Fund Managers Pay dates Distribution method IA Mixed Investment 0-35% Shares AXA Investment Managers UK Ltd Jim Stride Matthew Huddart 31 July, 31 Oct, 31 Jan, 30 Apr Interest Central asset mix Cash 9% UK Gilts 7% UK Equities 29% Index-linked Gilts 55% Source: AXA Investment Managers as at 31 March 2016. AXA DISTRIBUTION FUND RANGE 6

AXA Ethical Distribution Fund The AXA Ethical Distribution Fund, like the flagship Distribution Fund, seeks growing income and capital growth, while looking to reduce overall volatility, but addresses investor preferences in terms of lifestyle investing aspirations. Its asset allocation is the same, but it invests exclusively in an ethically-screened universe of companies using our same cautious approach. The universe is screened by global market-leaders EIRIS 1, who assess each company s environmental, social and governance (ESG) performance. While the Fund s central asset mix mirrors that of the AXA Distribution Fund, given the strict responsible investment selection criteria the equity portfolio has a bias towards mid-size and smaller companies by market capitalisation. Strict ethical screening criteria as determined by EIRIS Diversified asset mix of quality ethical UK equities, gilts and cash AXA Investment Managers is a signatory to the UNPRI 2 Fund analysis Launch date 28/11/08 IA sector IA Mixed Investment 20-60% Shares Investment manager AXA Investment Managers UK Ltd Central asset mix Cash 3% UK Gilts 7% Co-Fund Managers Pay dates Jim Stride Matthew Huddart 31 July, 31 Jan Index-linked Gilts 35% UK Equities 55% Distribution method Dividend Source: AXA Investment Managers as at 31 March 2016. 1 EIRIS is a leading not-for-profit organisation which carries out global research into ESG and other ethical issues. 2 UNPRI (United Nations Principles for Responsible Investment). Instigated by the United Nations, the UNPRI provides a framework for investment managers and asset owners to incorporate ESG issues into their investment and ownership policies and practices. 7 AXA DISTRIBUTION FUND RANGE

AXA Global Distribution Fund The AXA Global Distribution Fund comprises a broadly diversified portfolio of global equities and global inflation-linked bonds. The geographic equities universe includes North America, Europe (including the UK), Asia, Japan and Latin America, and in our search for income we tend to favour dividend-paying companies. The global inflation-linked universe includes bonds issued by the UK, US, Canadian, Swedish, German, French, Japanese, Brazilian and Australian governments. A wide variety of currencies can impact a fund s net asset value, so approximately 50% of the AXA Global Distribution Fund s total assets are either sterling/euro-denominated, or hedged back into sterling. Offers exposure to global stockmarkets Truly diversified portfolio of blue chip assets Offers exposure to global inflation-linked bonds from issuing governments Fund analysis Central asset mix Launch date 16/05/08 IA Sector IA Mixed Investment 20-60% Shares Investment manager Co-Fund Managers Pay dates AXA Investment Managers UK Ltd Jim Stride William Howard 31 July, 31 Jan Global Inflationlinked Bonds 45% Global Equities 55% Distribution method Dividend Source: AXA Investment Managers as at 31 March 2016. AXA DISTRIBUTION FUND RANGE 8

AXA Lifetime Distribution Fund The latest addition to the Distribution range, the AXA Lifetime Distribution Fund aims to provide a monthly income stream for cautious investors, coupled with the potential for long-term capital growth. The Fund is a cautiously-managed portfolio focusing on high quality UK companies paying regular dividends and index-linked gilts, which help keep the portfolio s returns in line with inflation. Investors can select to take the income generated or to reinvest it through the purchase of accumulation units with the aim of enhancing potential capital growth. The index-linked gilts held within the Fund are bought on a Buy and Maintain basis, helping to reduce transaction fees and offering a cost-efficient solution for investors. Flexibility to take a monthly income or build long-term capital growth Diversified portfolio of high quality UK equities Index-linked gilts to help tackle inflation and dampen volatility Fund analysis Central asset mix Launch date 02/03/15 IA sector IA Mixed Investment 20-60% Shares Investment manager Co-Fund Managers AXA Investment Managers UK Ltd Jim Stride Jamie Forbes - Wilson UK Index-linked gilts 45% UK Equities 55% Pay dates Last day of each month Distribution method Dividend Source: AXA Investment Managers as at 31 March 2016. 9 AXA DISTRIBUTION FUND RANGE

Investment team Jim Stride Director, Head of UK Equities Jim was appointed Managing Director in 1997 and is also Head of UK Equities. Jim joined the company in 1981 as a fund manager, having worked as an analyst with Panmure Gordon & Co. for two years. His career began in 1976 as a portfolio analyst with the Post Office Staff Superannuation Fund. Jim graduated from the London School of Economics with a BSc (Econ) specialised in Accounting and Finance. Jamie Forbes-Wilson Investment Manager, UK Equities Jamie has been responsible for managing income strategies at AXA IM Framlington Equities since 2009, and is also involved in several UK equity segregated institutional mandates. Jamie joined AXA Framlington in 2003 and was previously responsible for charity, pension and private client portfolios. Prior to AXA IM, he worked as a private client portfolio manager at Brewin Dolphin. Jamie has a BA (Hons) in Economic History and Politics from Exeter University and is a Chartered Fellow of the CISI. Matthew Huddart Investment Manager, UK Equities Matthew is a member of the UK Distribution team and has been involved in the UK Distribution range as an analyst then portfolio manager since 2000. He started his investment career in 1998. Matthew has a BSc. (Hons) in Mathematics and is a CFA charterholder. William Howard Investment Manager, UK Equities William is lead portfolio manager on the AXA WF Framlington Global High Income. William has 28 years investment experience. Prior to joining AXA IM he was Managing Director at Goldman Sachs from 2005-2009. Other previous roles include portfolio manager/analyst at Templeton Investment Council and Senior International Portfolio Manager at Tennessee Consolidate Retirement System. William is a CFA Charterholder and has a BA in International Studies from Rhodes College and a Master in Business Administration from Goizueta Business School, Emory University. AXA DISTRIBUTION FUND RANGE 10

11 AXA DISTRIBUTION FUND RANGE The AXA Distribution range of Funds offers investors a long-term perspective on investing in financial markets.

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This document is for professional advisers only and must not be relied upon or distributed to retail clients. Circulation must be restricted accordingly. The value of investments and the income from them can fluctuate and investors may not get back the amount originally invested. Past performance is not a guide to future performance. Charges in exchange rates will affect the value of investments made overseas. Fixed income securities are subject to interest rate risk, credit risk, prepayment risk and market risk. High yield securities are subject to a greater risk of loss of principal and interests than higher-rated, investment grade fixed income securities. Investments in newer markets and smaller companies offer the possibility of higher returns but may also involve a higher degree of risk. An initial charge is usually made when you purchase units. This is intended for investors seeking a medium to long term investment i.e. typically 5-10 years. This document does not constitute an offer to sell or buy any units in the Fund. Information relating to investments is based on research and analysis undertaken or procured by AXA Investment Managers UK Ltd for its own purposes and may have been made available to other members of the AXA Investment Managers group of companies which, in turn, may have acted on it. Whilst every care is taken over these comments, no responsibility is accepted for errors and omissions that may be contained herein. It is therefore not to be taken as a recommendation to enter into any investment transactions. Please note: all performance and other statistical data provided in this document is provided by AXA Investment Managers and is unaudited. As such, it may subject to change without notice. Issued by AXA Investment Managers UK Ltd registered in England No. 01431068. The registered office address is 7 Newgate Street, London EC1A 7NX. AXA Investment Managers UK Ltd (119368) is authorised and regulated by the Financial Conduct Authority under the account shown. A member of the IA. Telephone calls may be recorded or monitored for quality. AXA IM London Corporate Communications London 20616 05/2016 05/2016 Design & Production: AXA IM London Corporate Communications www.axa-im.co.uk