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AXA IM FIXED INCOMEINVESTMENTSTRATEGIES(Fonds Commun de Placement)

R.C.S. Luxembourg B-32.223AXA Funds Management S.A.

Audited Annual Reportas at 31 December 2012

AXA IM Fixed Income Investment Strategies A mutual investment fund organised under the laws of the Grand Duchy of Luxembourg

Audited Annual Report as at 31 December 2012

AXA IM Fixed Income Investment Strategies

Audited Annual Report as at 31 December 2012

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No subscription can be received on the sole basis of the present report. Subscriptions are only valid if made on the sole basis of the current Full and Simplified Prospectuses supplemented by the application form, the Key Investor Information Documents ("KIID"), the latest annual report and the latest semi-annual report if published hereafter.


Table of contents

3

General Information 4

Information to Unitholders 6

Foreign Distribution 7

Directors' Report 10

Audit Report 16

Financial Statements

Statement of Net Assets 18

Statement of Operations and Changes in Net Assets 20

Statistics 22

AXA IM Fixed Income Investment Strategies - US Short Duration High Yield Schedule of Investments and Other Net Assets 25 Industrial Classification 32

AXA IM Fixed Income Investment Strategies - US Corporate Bonds Schedule of Investments and Other Net Assets 33 Industrial Classification 38

AXA IM Fixed Income Investment Strategies - US Libor Plus Schedule of Investments and Other Net Assets 39 Industrial Classification 43

AXA IM Fixed Income Investment Strategies - Europe Short Duration High Yield Schedule of Investments and Other Net Assets 44 Industrial Classification 48

Notes to the Financial Statements 49

Additional Unaudited Appendix 58


General Information

4

Registered Address of the Fund

49, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg

Management Company

AXA Funds Management S.A., 49, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg

Board of Directors of the Management Company

Chairman Mr Michael Reinhard, Global Head of Operational Support and Service Management, AXA Investment Managers Deutschland GmbH, residing in Frankfurt, Germany

Members Mr Paul de Cooman, Chief Executive Officer, AXA Luxembourg S.A., residing in Luxembourg (resigned on 27 March 2012)

Mr Bruno Durieux, NORCEE Finance Office, AXA Belgium S.A., residing in Brussels, Belgium

Mr Steve Gohier, General Manager and Compliance and Risk Officer, AXA Funds Management S.A., residing in Luxembourg

Mr Christof Jansen, General Manager and Third Parties Relationship Manager, AXA Funds Management S.A., residing in Luxembourg

Mrs Tatiana Pécastaing-Pierre, Chief Operating Officer AXA IM Distribution, AXA Investment Managers Paris, residing in Paris, France

Mr Christian Rabeau, Chief Investment Officer, AXA Investment Managers Paris, residing in Paris, France

Investment Managers

AXA Investment Managers Inc, One Fawcett Place, Greenwich, CT, 06830 U.S.A.

AXA Investment Managers Paris, Coeur Défense, Tour B, La Défense 4, 100, Esplanade du Général de Gaulle, F-92400 Courbevoie, France

AXA Investment Managers UK Limited, 7 Newgate Street, London EC1A 7NX, United Kingdom

Custodian, Registrar and Transfer Agent, Domiciliary, Administrative and Paying Agent

State Street Bank Luxembourg S.A., 49, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg

Promotor

AXA Investment Managers, Coeur Défense, Tour B, La Défense 4, 100, Esplanade du Général de Gaulle, F-92400 Courbevoie, France


General Information

5

Auditor

PricewaterhouseCoopers, Société coopérative, 400, route d’Esch, L-1471 Luxembourg, Grand Duchy of Luxembourg

Legal Advisor

Arendt & Medernach, 14, rue Erasme, L-2082 Luxembourg, Grand Duchy of Luxembourg


Information to Unitholders

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The Full and Simplified Prospectuses, as well as the Key Investor Information Documents (“KIID”), the Articles of Association and any other information published are available at the registered office of the Management Company, the Custodian, the Registrar and Transfer Agent.

The semi-annual and annual reports can be obtained at the address of the Custodian. Information on the issue and redemption prices is given by the Custodian.

These documents may also be downloaded from the website www.axa-im-international.com.

The net asset value of the Fund is determined on a daily basis. The financial year of the Funds ends on 31 December of each year.


Foreign Distribution

7

Regarding the Distribution of the Fund in Austria

The Paying Agent in the Republic of Austria is Erste Bank der Österreichischen Sparkassen AG, Graben 21, A-1010 Vienna.

As at 31 December 2012, all Sub-Funds are registered in Austria.

Regarding the Distribution of the Fund in Belgium

The Paying and representative Agent in Belgium is CACEIS Investor Services, Avenue du Port, Havenlaan 86C b 320, B-1000 Brussels.

As at 31 December 2012, the following Sub-Funds are registered in Belgium:

AXA IM Fixed Income Investment Strategies - US Short Duration High Yield AXA IM Fixed Income Investment Strategies - US Corporate Bonds AXA IM Fixed Income Investment Strategies - Europe Short Duration High Yield

Regarding the Distribution of the Fund in Chile

The representative is Latin America Asset Management Advisors Ltda., Av. Providencia 1760, 23rd Floor, Providencia, Santiago de Chile, Chile.

As at 31 December 2012, the following Sub-Fund is registered in Chile:

AXA IM Fixed Income Investment Strategies - US Short Duration High Yield

Regarding the Distribution of the Fund in Denmark

There is no representative in Denmark.

As at 31 December 2012, the following Sub-Funds are registered in Denmark:


Regarding the Distribution of the Fund in France

BNP Paribas Securities Services, 3, rue d’Antin, F-75002 Paris, is responsible for providing financial services in France.

As at 31 December 2012, all Sub-Funds are registered in France.

Regarding the Distribution of the Fund in Germany

Investors residing in Germany may obtain the Full and Simplified Prospectuses, the latest annual report or the latest semi-annual report, if published thereafter, free of charge from the Information Agent in Germany, JP Morgan AG, Junghofstrasse 14, D-60311 Frankfurt am Main. They may also request the net asset value per unit, the latest issue, conversion and redemption prices, a detailed schedule of changes in investments as well as any other financial information relating to the Fund available to Unitholders at the registered office of the Management Company.



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Regarding the Distribution of the Fund in Germany (continued)

The Paying Agent for Germany is JP Morgan AG, Junghofstrasse 14, D-60311 Frankfurt am Main.

As at 31 December 2012, all Sub-Funds are registered in Germany.

Regarding the Distribution of the Fund in Italy

There is no representative in Italy.

As at 31 December 2012, the following Sub-Funds are registered in Italy:


Regarding the Distribution of the Fund in The Netherlands

There is no representative in The Netherlands.

As at 31 December 2012, all Sub-Funds are registered in the Netherlands.

Regarding the Distribution of the Fund in Peru

The representative in Peru is Latin America Asset Management Advisors Ltda., Av. Providencia 1760, 23rd Floor, Providencia, Santiago de Chile, Chile.

As at 31 December 2012, the following Sub-Fund is registered in Peru:


Regarding the Distribution of the Fund in Singapore

There is no representative in Singapore.

As at 31 December 2012, the following Sub-Fund is registered in Singapore:


Regarding the Distribution of the Fund in Spain

The representative in Spain is AXA Ibercapital Agencia de Valores AV SAU, Camino Fuente de la Mora, n 1, E-28050 Madrid.

As at 31 December 2012, the following Sub-Funds are registered in Spain:




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Regarding the Distribution of the Fund in Sweden

The Paying Agent in Sweden is Skandinaviska Enskilda Banken AB, Sergels Torg 2, SE-106 40 Stockholm.

As at 31 December 2012, the following Sub-Funds are registered in Sweden:


Regarding the Distribution of the Fund in Switzerland

The representative in Switzerland is BNP Paribas Securities Services, Paris, Branch of Zurich, Selnaustrasse 16, CH-8002 Zurich, Switzerland.

The Paying Agent in Switzerland is BNP Paribas Securities Services, Paris, Branch of Zurich, Selnaustrasse 16, CH-8002 Zurich, Switzerland.

As at 31 December 2012, the following Sub-Funds are registered in Switzerland:



Directors' Report

10

Dear Unitholders,

The Board of Directors of the Management Company is pleased to report on the progress of your Fund for the financial year ended on 31 December 2012.

The Financial markets in 2012

In economic and financial terms, 2012 looks to have been a pivotal year. The European financial system was brought to the edge of collapse, an event that could have unleashed a swath of unpredictable recessionary consequences on the global economy. Despite plenty of prevarication from European governments, sheer determination to save the continent’s economy allowed the worst to be avoided through the following three sets of decisions:

– a partial Greek debt settlement that, although insufficient, did succeed in averting what would have been the first official default of a European Union member state;

– a decisive change in the ECB’s monetary policy with its President, Mario Draghi, doing what was necessary to restore confidence on the money markets and to reduce risk premiums on short-term interest rates for the most fragile countries;

– the development of closer and more coordinated monitoring of European banks through a European banking union.

These measures, taken during summer 2012, dispelled much of the mistrust that had been building on the financial markets and that had led traders to seek protection at any price (i.e. with excessively low interest rates) in German and French government bonds, which at one point even provided negative yields!

However, although the threat of systemic risk may have receded, the negative consequences of cyclical risks, which are linked to changes in the economic growth cycle, came into play throughout the second half of 2012. As stricter fiscal policy slowed government investment, an increasing tax burden weighed on consumer purchasing power and banks’ debt reduction policies reduced the availability of credit, Europe saw weak growth in its economic activity. Northern European countries may have managed to maintain marginal growth, but their southern counterparts found themselves facing deep recessions that, as 2012 came to a close, were still making their consequences felt. These included commercial bankruptcies, increasing unemployment and falling living standards.

Financial markets managed to record broadly positive performances in 2012 because, as soon as it became clear in the summer that the eurozone had a future, they began to expect a gradual improvement in the economic and financial situation. The improvement in US growth (although sluggish and above all weak in job creation) together with the slight upturn in China (whose demand for capital goods fuels the whole of Asia) allow us to imagine a brighter 2013. European businesses in general and the region’s diversified companies in particular have already benefited from this, and investors have begun to reassess them (in terms of both equity and credit) in view of their still very reasonable valuation levels. Conversely, government bond markets saw a much more uneven 2012, as distressed countries were only able to obtain finance at extremely high interest rates, while stronger countries were characterised by their safe-haven status and excessively low rates.

As well as being a pivotal year, 2012 also illustrated a gap in expectations between the financial markets and the so-called “real” economy.


Directors' Report

11

Performance Commentary - 2012

• AXA IM FIXED INCOME INVESTMENT STRATEGIES – US SHORT DURATION HIGH YIELD 1 January 2012 to 31 December 2012

Following a relatively muted total return in 2011, the Merrill Lynch U.S. High Yield Master II Index rallied strongly in 2012, returning an impressive +15.58% for the year. Several factors contributed to the outperformance of risk assets in 2012, including continued support from global central banks, healthy corporate fundamentals, modest economic growth domestically, strong demand from mutual funds, record setting new issuance, and an extremely low default rate environment. The High Yield Index started 2012 off with a bang, returning +5.25% in the first two months of the year, the strongest start to a calendar year since 2001, which returned +7.95% to start the year. With the exception of just March (-0.09%) and May (-1.21%), the balance of 2012 produced positive monthly total returns, eight of which returned over +1.00%. Net inflows into high yield mutual funds reached nearly $26 billion in 2012, more than double last year’s inflows. In the primary market, strong demand for the asset class helped to drive record new issuance. Overall, a total of 682 new issues totaling $344 billion priced during 2012, significantly exceeding the 465 issues totaling $219 billion that were priced in 2011. For the full year, 14 bond-only issuers, 16 loan-only borrowers, and five companies with both bonds and loans outstanding defaulted. By par amount, $20.6 billion in bonds and loans defaulted in 2012, only slightly lower than the $20.9 billion recorded in 2011. Of the total defaulted debt, bonds accounted for 62% in 2012 (down from 88% in 2011), while loans accounted for 38% (up from 12% in 2011). The par-weighted high yield default rate decreased to 1.1% at 2012 year-end, down from 1.8% as of the end of 2011 and significantly below the long-term average high yield default rate of 4.2%.

2012 proved to be an impressive year for riskier assets. High Yield outperformed most other asset classes in 2012, including U.S. Corporates (+10.37%) and Treasuries (+2.16%), however only slightly underperformed U.S. Equities (+16.00%). Within the U.S. High Yield asset class, riskier bonds outperformed for the year overall, as CCC-and-lower rated credits returned +20.27%, followed by B-rated and BB-rated, which returned +15.02% and +14.36%, respectively. All sectors within U.S. High Yield produced positive returns in 2012, led by strong rebounds in the Banking (+29.16%), Insurance (+26.45%) and Real Estate (+20.34%) sectors. Despite a relatively brief mid-year selloff, at which point the High Yield Index’s yield-to-worst widened to over 8.00%, the ensuing rally through the remainder of the year brought the Index’s yield-to-worst to 6.08% at year-end, 216 bps tighter overall. Theé Index’s Option Adjusted Spread followed a similar pattern, resulting in an overall decline of 192 bps to 531 bps at year-end. The High Yield Index’s average price steadily rose throughout 2012, increasing by $6.26 overall to end the year at $104.35.

AXA IM’s U.S. Short Duration High Yield Fund performed well during 2012, capturing just shy of half of the overall market’s robust +15.58% return. Our up-in-quality positioning and the shorter duration nature of our holdings limited the total upside of the Fund, and as a result, could not keep pace with the strong high yield market rally. The yield-to-worst of the Fund (exclusive of cash) tightened by 263 bps during the year to 3.54%, while the spread of the Fund likewise tightened by 262 bps to 319 bps as the 3-Year Treasury tightened by only 1 bps to 0.35%. The portfolio duration (using a calculation of modified duration-to-worst) declined only slightly from 1.6 to 1.5.

Position count increased to 319 positions and the portfolio remains well diversified. We believe that diversification of portfolio holdings is important for the Fund and helps to manage credit risk. Our top holdings, both 1.1% positions, were Cequel Communications and Aramark Corp. At year-end, approximately 63% of the portfolio was invested in securities in excess of three years, but which we expect to be redeemed early. This is up roughly 12% from the previous year and continues to express our overall positive view of the high yield market, and the short duration portion of the market in particular. That being said, we remain cognizant of potential volatility driven by political headlines, such as the ongoing Fiscal Cliff saga. With an overall positive technical within the market, coupled with the prolonged low interest rate environment, companies continue to be encouraged to proactively address debt maturing in excess of three years.


Directors' Report

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• AXA IM FIXED INCOME INVESTMENT STRATEGIES – US CORPORATE BONDS 1 January 2012 to 31 December 2012

The AXA IM Fixed Income Investment Strategies - US Corporate Bonds Fund out-performed its benchmark, the Barclays Capital US Corporate Intermediate index in 2012. The portfolio’s relative out-performance during the year was primarily driven by a positive security selection effect. The portfolio’s out-performance was also driven to a lesser extent by a positive sector allocation effect which was due to the portfolio’s overweight positioning in the Financial Institutions sector which outperformed the broader market during 2012. The positive factors discussed above were partially offset by the negative impact of cash drag during the year.

For the full year of 2012 the US corporate bonds asset class generated significant positive total and excess returns. During 2012 the Barclays Capital US Intermediate Corporate index posted a total return of positive 8.84% and an excess return of positive 6.80%. During the full year period, within the Intermediate Corporate Index the Financial Institutions sector (positive 1,117 bps of excess return) out-performed both the Industrial (positive 412 bps of excess return) and Utility (positive 480 bps of excess return) sectors. The average OAS of the Barclays Capital US Corporate Intermediate index stood at 231 bps as of the end of 2011 and declined to 124 bps as of December 31, 2012. The performance of US corporate bonds during 2012 was largely driven by a combination of macro headlines which included continued economic growth in the US, improvements in the European sovereign debt news-flow, and continued easy monetary policy and extraordinary interventions by central banks. The strong technical demand for the US corporate bonds asset class during 2012 was also driven by investors’ search for yield in the current low interest rate environment.

The portfolio finished 2012 with 232 positions. As of year end, the average yield to maturity of the portfolio stood at 2.28% versus the benchmark yield to maturity of 2.06%. The average option adjusted spread of the portfolio as of year end was 145 bps versus the benchmark average OAS of 124. The portfolio’s average effective duration was 4.52as of year end 2012 which was approximately in-line with the benchmark duration of 4.55. The portfolio’s sector allocation remains aligned with our strategic recommended positioning including a continued overweight to the Financial Institutions sector and a slight overweight to the Banking sector specifically. Within the broad Industrial sector, the portfolio remains overweight the Real Estate sector which trades at relatively wide spread levels, and underweight several of the more defensive sectors which trade at tighter spread levels including Consumer Non-Cyclical and Capital Goods. The portfolio remains underweight the more defensive Utility sector. The portfolio maintains a relative overweight to the lower rated triple-B portion of the market.

The average S&P credit rating of the portfolio was BBB+ as of year end versus the benchmark’s average of A-. The portfolio continued to benefit from active participation in the new issue market throughout 2012.

• AXA IM FIXED INCOME INVESTMENT STRATEGIES – US LIBOR PLUS 1 January 2012 to 31 December 2012

After a dismal second half of 2011, investors returned to non agency US RMBS in 2012. This move was sustained by expectations of improved housing market conditions as well as attractive yields offered by the asset class after the reversal of 2011.

Signs that housing prices were to bottom in the near future, expectations that government support to homeowners will ultimately play out, and expectations that US economy may gradually recover and overcome unemployment allowed investors to consider more optimistic view to the long depressed non agency sector.

The continued support of the Federal Reserve Bank to market liquidity through purchases of agencies RMBS, the imbalance of demand and supply in non agencies (where redemptions are not compensated by new issuance) gave strong technical support.

In this context, non agency bonds and ABX indices experienced strong appreciation in 2012.

2012 performance of US Libor Plus Fixed Income Investment Strategies I USD was 106.62%.


Directors' Report

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• AXA IM FIXED INCOME INVESTMENT STRATEGIES – EUROPE SHORT DURATION HIGH YIELD 1 January 2012 to 31 December 2012

The year under review has seen a particularly strong performance from the European High Yield generally but also for the short duration startegy. It has not been without the odd setback along the way but given the political and economic headwinds that have been faced volatility has also been relatively benign. It would be nice to believe that the source of this strength has been a strong macro economic background but actually the European economy has been firing on, at best, 3 of 4 cylinders. In reality we have the actions of the Central Banks generally and, more recently the ECB in particular, to thank for smoothing the ride.

The second half of 2011 was a weak one for risk markets so we entered 2012 with attractive valuations and began very strongly. The European Central Bank’s (ECB) Long Term Refinancing Operation (LTRO) was successful in convincing markets that there was support for the liquidity of banks. The ECB can do little about individual bank solvency but they could and did provide solvent banks ample liquidity. This action began a relatively sustained rally in bank debt which broadly continued through the year. The fund will invest in short dated bank debt (it will not buy perpetual debt). Often this can still be investment grade but with yields that are competitive with the better quality high yield. Through the year we have tended to have around 11% of the fund invested in this area even though it constitutes perhaps 25% of our short duration universe. We tend to limit the exposure not because of default risk but because even the shorter dated bonds can show quite high volatility to adverse macro headlines and we wish to limit this volatility within the fund.

As the year progressed into April and May the limits of the LTRO became more obvious. While the ability of banks to fund had been massively improved, the associated aim of lending into the real economy was far less successful. Weak GDP numbers began to emerge from most European countries, particularly the periphery, while uncertainty about Greece’s future was exacerbated by the need for a second election. Looking back now from a distance of 6 months plus it is tempting to wonder what all the fuss on Greece was about but the reality is that few problems have been solved, they have simply been deferred. In the interim, European governments have since been forced to forgive interest payments for Greece and to most observers it will eventually be necessary to write off significant amounts of the public money that has been leant to Greece – probably after the German elections later this year.

Economically more important was the spotlight being shone on the lack of economic growth in Italy and Spain. Italy has one of the better balanced budgets in Europe but begin the crisis with the greatest debt burden. Spain began with a low initial level of debt but is running a large budget deficit which it is struggling to control. It is further burdened by a banking sector which has not been robustly restructured and a difficult political problem of loosely controlled spending at a local government level. Government bonds in these countries began to rise above 6% at 10years and corporate bonds in these countries weakened significantly. In general the fund has been underweight in the peripheral countries but we do have holdings in, for example, Fiat and Wind (Italian telecom) together with a number of the regional utilities.

So far there has been little resolution to these problems from the politicians. Ultimately the only institution with the power to help in the short term is the ECB who have the power to impact the symptoms of the problem – high government bonds yields in Italy and Spain – quite dramatically. Mario Dragi signalled in late July that they would do what needed to be done. This was the single most important development to date. Without this support 2H 2012 would have been very different. So great is the ability of the ECB to influence markets that Spain has not actually been required to ask for support as yet. That said while these actions have undoubtedly stabilised markets there is much more to do to return economies to growth and stabilise government debt burdens.

Focusing on high yield companies specifically corporate performance has been pretty good. Results reported in Q1 held up well. While still reasonable, Q2 and the balance of the year was been more mixed and, in general, some of the more cyclical areas such as chemicals and steel have seen some weakness in operating performance as the European economies have failed to pick up. Acelor Mittal, for example, was downgraded into the High Yield universe and specialist steel company Schmolz and Bickenbach reported weak results. European auto sales have been particularly affected by the economic weakness and overall uncertainty in an industry that continues to have excess capacity.


Directors' Report

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There have been small blips. Nobina, a bus company, negotiated a 25% reduction in debt in return for a higher coupon and the equity in the company resulting in a modest loss in value for debt holders. These negatives where overwhelmed by wide ranging general improvement and, in particular, gain in value when eAccess (Telecoms) was taken over by the much better rated Softbank from Japan. Credit markets have been very active. While the smallest companies may be struggling to access capital from banks it is freely available to the large companies which can come to debt capital markets.

Uncertainty over the Euro continues to hang over corporate decision making and caution is the prevailing sentiment. Generally though, corporate balance sheets have been repaired since the events of Q4 2008 and debt is in general lower and of longer maturity. This continues to be supported by robust new issue activity, much of which is driven by refinancing of short term bonds and loans into longer term debt. This activity is an important background for short duration strategies. Given the level of confidence in the market we have seen fewer M&A driven deals. Default rates have continued to remain very low running at a rate of about 2% depending on how one chooses to measure it.

Market Outlook

The European macro outlook is weak and there remain big issues hanging over markets. For the time being the issues of Greece and Spain seem to have been put to one side by the market but they are far from resolved. Some elements of the fiscal cliff in the US have been resolved but the bulk of the conversation has really just been pushed out until March. More positively, perhaps the decline in the rate of growth in China has been stabilised and Central Banks continue to operate a very stimulatory policy.

Despite this muted economic outlook we remain positive on high yield and short duration approaches. On fundamentals we expect the default rate to remain low. In the main this is because of the relatively cautious approach that companies are taking to risk. Typically default peaks occur when management expectation are materially different from the actual outcome i.e when management are planning for a very positive future and yet the outcome is weak. Currently we expect the outcome to be weak but crucially company management are also planning and preparing for that to be the case. This is not great for “animal spirits” and economic growth but it should mean that default rates remain low.

From a valuation perspective High Yield yields are historically low but this is mostly a function of extraordinarily low government bond yields. The spread or premium over governments paid for lending to a risky corporate is actually at about the average level over time despite the fact that default rates are at a low level and we expect them to continue to remain low.

Finally the technical situation is positive. There are significant flows of money in financial markets looking for yield that would typically previously have been invested in government and investment grade bonds. We continue to see flows from such sources into high yield and short duration in particular and expect this to continue as we remain in this low interest rate environment.

We are far from complacent. We continue to manage our exposure to financials as a % of the portfolio and have a cautious approach to peripheral risk where we continue to expect sentiment to be volatile and economic performance to be weakest. We will not see returns in 2013 as strong as in 2012 but we continue to expect reasonable returns with the majority of return coming through the coupon income.

Fund Events

As of 31 December 2012, the Fund consists in 4 activated Sub-Funds which are presented to you here above.

Moreover, we specify the following modifications implemented in the prospectus on 2012:

- Subscription, redemption and conversion of units (One Platform).

- Insertion of a sub-section dedicated to the use of nominees under the section relating to the subscription of units of the prospectus.


Directors' Report

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- Insertion under the section relating to the redemption of units of the prospectus, a sub-section providing that the units of the sub-funds may be held (i) by a French fund in which AXA Investment Managers is a majority shareholder and/or (ii) by companies which are part of the AXA group of companies and/or (iii) by investment funds which are managed by investment management companies in which AXA IM group directly or indirectly holds a shareholding for the purposes of building a track record or a specific marketing action on the Sub-Fund.

- This new provision does not prevent units of a sub-fund from being held by other investors including external seed investors.

- Update of information (e.g. list of the members of the Board of Directors, wording of the sections dedicated to the Fund, to the management of the Fund, etc.).

- AXA IM Fixed Income Investment Strategies – US Corporate Bonds: Creation of a new class of units within the sub-fund and removal of the minimum subscriptions and holding requirements applicable to class E units.

- AXA IM Fixed Income Investment Strategies – Europe Short Duration High Yield: Creation of a new class of units within the sub-fund and removal of the minimum subscriptions and holding requirements applicable to class E units.

Please note that the Prospectus has been amended in consequence with a latest version dated August 2012.

Management Company Events

We present to you hereafter the events occurred during the financial year ending on 31 December 2012 within the Board of Directors of the Management Company, AXA Funds Management S.A.:

- On 27 March 2012, the mandate of Mr. Paul de Cooman has not been renewed by the annual general unitholders’ meeting.

As 31 December 2012, the Board of Directors of the Management Company was composed as follows:

- Mr. Michael Reinhard, as Chairman, - Mr. Bruno Durieux, - Mr. Steve Gohier, - Mr. Christof Jansen, - Mrs. Tatiana Pécastaing-Pierre, - Mr. Christian Rabeau.

The Board of the Management Company Luxembourg, 26 April 2013

Note : The figures stated in this report are historical and not necessarily indicative of future performance.

PricewaterhouseCoopers, Société coopérative, 400 Route d’Esch, B.P. 1443, L-1014 Luxembourg T: +352 494848 1, F:+352 494848 2900, www.pwc.lu

Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n°10028256) R.C.S. Luxembourg B 65 477 - TVA LU25482518

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Audit Report To the Unitholders of AXA IM Fixed Income Investment Strategies We have audited the accompanying financial statements of AXA IM Fixed Income Investment Strategies and of each of its sub-funds, which comprise the statement of net assets and the statement of investments and other net assets as at 31 December 2012 and the statement of operations and changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements.

Responsibility of the Board of Directors of the Management Company for the financial statements The Board of Directors of the Management Company is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the Management Company determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the “Réviseur d’entreprises agréé” Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the “Commission de Surveillance du Secteur Financier”. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the “Réviseur d’entreprises agréé”, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the “Réviseur d’entreprises agréé” considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the Management Company, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of AXA IM Fixed Income Investment Strategies and of each of its sub-funds as of 31 December 2012, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements.

Emphasis of matter

We draw attention to Note 2 d) to the Financial Statements relating to the valuation of certains assets. This note explains that, in the absence of a liquid market, the assets of AXA IM Fixed Income investment Strategies - US Libor Plus have been subject to a valuation process described therein. Its exposure as at 31 December 2012 to assets subject to such valuation process is further disclosed in Note 2 d) to the Financial Statements. Our opinion is not qualified in respect of this matter.

Other matters

Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole.

PricewaterhouseCoopers, Societe cooperative Luxembourg, 26 April 2013 Represented by

_ Regis alcourant

17


Statement of Net Assets as at 31 December 2012

The accompanying notes form an integral part of these financial statements.

18

Combined AXA IM Fixed Income Investment Strategies


US Short Duration High Yield

US Corporate Bonds

USD USD USD

ASSETS

Investment portfolio at cost (note 2e) 13,531,389,463 12,491,159,972 507,569,233

Unrealised appreciation/(depreciation) on investment (14,470,371) 79,074,081 28,117,015

Investment portfolio at market value (note 2d) 13,516,919,092 12,570,234,053 535,686,248

Cash and cash equivalent 482,573,190 456,246,400 18,300,262

Receivables resulting from sales of investments 3,246,166 - 3,246,166

Receivables resulting from subscriptions 246,071,189 203,704,083 5,729,175

Interest accruals 233,876,305 218,828,101 6,371,799

Net unrealised appreciation on forward foreign exchange contracts (note 2g, 10) 26,709,309 22,583,274 2,551,342

Other receivables 135,006 122,397 -

Total assets 14,509,530,257 13,471,718,308 571,884,992

LIABILITIES

Bank overdraft 1,380,382 - -

Payables resulting from purchases of investments 5,098,383 - 3,246,166

Payables resulting from redemptions 105,285,721 97,193,728 6,822,120

Net unrealised depreciation on open futures contracts (note 2h, 11) 656 - 656

Accrued expenses 9,922,316 9,347,475 307,521

Other payables 90,098 - 4,179

Total liabilities 121,777,556 106,541,203 10,380,642

NET ASSET VALUE 14,387,752,701 13,365,177,105 561,504,350


Statement of Net Assets as at 31 December 2012


19



US Libor Plus Europe Short Duration High Yield

USD EUR

157,731,449 283,585,603

(130,841,692) 6,943,664

26,889,757 290,529,267

1,810,322 4,701,763

- -

12 27,711,891

244,679 6,377,520

56,319 1,148,455

6,081 4,938

29,007,170 330,473,834

- 1,044,082

- 1,400,965

- 960,496

- -

- 202,193

618 64,519

618 3,672,255

29,006,552 326,801,579


Statement of Operations and Changes in Net Assets for the year ended 31 December 2012


20

Combined AXA IM Fixed Income Investment Strategies


US Short Duration High Yield

US Corporate Bonds

USD USD USD

NET ASSET VALUE AT THE BEGINNING OF THE YEAR 7,132,898,308 * 6,822,125,282 241,233,137

INCOME

Interest on investment portfolio, net 677,859,642 647,124,924 16,632,210

Interest on current accounts 454,377 431,141 16,068

Securities lending income (note 14) 896,056 823,058 1,147

Total income 679,210,075 648,379,123 16,649,425

EXPENSES

Redex fees (note 6) 8,308 - 8,308

Transaction fees (note 9) 72,561 41,393 8,354

Accounting fees 1,695,512 1,594,899 68,874

Custody fees (note 8) 750,685 700,576 31,266

Distribution fees (note 1e) 1,544,706 1,391,375 93,464

General administration fees (note 8) 264,927 249,204 10,762

Hedging fees (note 7) 1,835,206 1,791,867 41,854

Legal fees 105,967 99,681 4,303

Management fees (note 5) 68,719,492 65,833,435 1,886,740

Professional fees 63,578 59,808 2,581

Publication and printing fees 21,194 19,936 861

Registrar and transfer agent fees (note 8) 3,242,666 3,050,245 131,722

Regulatory fees 10,595 9,967 429

Taxation (note 4) 2,410,823 2,268,572 95,361

Total expenses 80,746,220 77,110,958 2,384,879

NET INCOME FROM INVESTMENTS 598,463,855 571,268,165 14,264,546

Net realised gain/(loss)

- on sales of investments (note 2f) (100,075,183) (79,125,887) 649,254

- on spot foreign exchange 108,211,134 107,994,689 (2,965)

- on forward foreign exchange contracts (note 2g, 10) (32,625,659) (31,342,736) (993,223)

- on futures (note 2h, 11) 1,206,182 - 1,206,182

Net realised gain/(loss) for the year (23,283,526) (2,473,934) 859,248

Net change in unrealised appreciation

- on investments (note 2f) 233,967,255 168,547,565 19,566,292

- on forward foreign exchange contracts (note 2g, 10) 100,351,072 94,099,340 4,360,064

- on futures (note 2h, 11) 43,617 - 43,617

Net change in net assets for the year resulting from operations 909,542,273 831,441,136 39,093,767

Net proceeds from subscriptions/redemptions 6,443,076,048 5,804,599,027 283,011,594

Equalisation (note 3) 197,131,033 181,462,053 3,647,812

Dividends paid (note 13) (294,894,961) (274,450,393) (5,481,960)

NET ASSET VALUE AT THE END OF THE YEAR 14,387,752,701 13,365,177,105 561,504,350

* With the exchange rates prevailing as at 31 December 2011, this amount was equal to USD 7,131,846,485.


Statement of Operations and Changes in Net Assets for the year ended 31 December 2012


21



US Libor Plus Europe Short Duration High Yield

USD EUR

24,169,106 34,317,184

4,195,259 7,493,564

2,669 3,403

- 54,346

4,197,928 7,551,313

- -

2,358 15,472

4,239 20,800

1,731 12,943

- 45,282

664 3,250

1,281 154

264 1,300

13,246 745,836

158 780

53 260

8,106 39,780

27 130

2,596 33,503

34,723 919,490

4,163,205 6,631,823

(21,893,078) 222,773

169,232 37,953

(261,863) (21,055)

- -

(21,985,709) 239,671

36,838,816 6,818,376

225,585 1,260,178

- -

19,241,897 14,950,048

36,230 268,836,645

- 9,092,473

(14,440,681) (394,771)

29,006,552 326,801,579


Statistics - Total Net Assets

22

Currency Total Net Assets as at

31 December 2012

Total Net Assets as at

31 December 2011

Total Net Assets as at

31 December 2010


USD 13,365,177,105 6,822,125,282 9,662,502,454

AXA IM Fixed Income Investment Strategies - US Corporate Bonds

USD 561,504,350 241,233,137 232,305,309

AXA IM Fixed Income Investment Strategies - US Libor Plus

USD 29,006,552 24,169,106 35,509,981

AXA IM Fixed Income Investment Strategies - Europe Short Duration High Yield

EUR 326,801,579 34,317,184 -


Statistics - Number of Units and Net Asset Value per Unit

23

Number of Units as at

31 December 2012

Net Asset Value per Unit as at

31 December 2012


31 December 2011


31 December 2010


A Capitalisation EUR Hedged 8,758,330.298 150.97 141.00 135.27

A Capitalisation USD 11,664,953.607 160.35 149.11 143.59

A Distribution EUR Hedged 23,715,435.593 91.07 91.11 94.08

A Distribution GBP Hedged 182,049.043 111.24 111.15 115.02

A Distribution USD 13,547,055.756 96.88 96.66 100.16

B Capitalisation CHF Hedged 1,564,081.210 114.60 107.82 104.97

B Capitalisation EUR Hedged 4,290,069.254 153.36 143.69 138.25

B Capitalisation USD 2,630,112.796 137.63 128.38 124.00

B Distribution EUR Hedged 1,370,184.046 94.56 94.61 97.61

B Distribution GBP Hedged 92,873.153 97.81 97.35 100.74

B Distribution USD 350,856.443 103.96 103.76 107.52

E Capitalisation EUR Hedged 1,747,135.783 114.77 108.24 104.84

E Capitalisation USD 518,122.119 111.20 104.40 101.50

F Capitalisation CHF Hedged 2,561,414.531 113.95 107.49 104.78

F Capitalisation EUR Hedged 5,181,103.646 133.12 125.08 120.73

F Capitalisation USD 8,603,658.542 132.83 124.25 120.36

F Distribution EUR Hedged 2,082,615.499 93.95 94.04 97.19

I Capitalisation EUR Hedged 3,866,974.613 141.10 132.49 127.80

I Capitalisation USD 936,687.540 152.96 143.02 138.49

I Distribution USD 765,624.867 98.36 98.23 101.84


A Capitalisation CHF Hedged 4,808.000 104.83 - -

A Capitalisation EUR Hedged 677,612.608 126.27 115.48 108.95

A Capitalisation EUR Hedged Redex 145,585.560 105.95 98.92 100.91

A Capitalisation USD 550,962.770 169.18 154.23 146.15


E Capitalisation EUR Hedged 211,111.580 107.54 99.32 -

E Capitalisation USD 83,798.254 105.32 - -

F Capitalisation CHF Hedged 17,643.760 104.03 - -

F Capitalisation CHF Hedged Redex 12,989.215 106.35 100.21 -

F Capitalisation EUR Hedged 405,129.684 113.26 104.08 98.72

F Capitalisation USD 519,271.383 113.03 103.55 98.61

I Capitalisation EUR Hedged 14,998.622 108.67 - -

I Capitalisation USD 246,803.805 128.72 117.58 111.65

I Distribution USD 13,708.929 102.92 - -


A Distribution EUR Hedged 809,612.365 4.78 4.02 5.86


I Distribution EUR Hedged 12,669.691 5.55 4.67 6.83

I Distribution USD 1,199,639.881 5.69 4.76 6.98


A Capitalisation EUR 544,589.885 114.88 101.77 -

A Capitalisation USD Hedged 284.170 115.02 101.49 -

B Capitalisation CHF Hedged 19,500.000 101.54 - -

B Capitalisation EUR 866,108.582 114.40 101.64 -

B Capitalisation USD Hedged 9,522.126 106.65 - -

B Distribution EUR 100,399.000 103.31 - -

E Capitalisation EUR 537,408.582 113.34 101.37 -


Statistics - Number of Units and Net Asset Value per Unit

24

Number of Units as at

31 December 2012


31 December 2012


31 December 2011


31 December 2010

AXA IM Fixed Income Investment Strategies - Europe Short Duration High Yield (continued)

F Capitalisation EUR 325,025.565 113.90 101.51 -

F Capitalisation USD Hedged 3,734.030 101.49 - -

M Capitalisation EUR 468,284.000 115.61 101.94 -


Schedule of Investments and Other Net Assets as at 31 December 2012 (in USD)

25


Description Quantity/ Nominal

Value

Market Value % of net

assets

I. TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR DEALT IN ON ANOTHER REGULATED MARKET

USD Bonds

Advanced Micro Devices Inc 6% 05/01/2015 42,637,000 39,812,299 0.30

Advanced Micro Devices Inc 8.125% 15/12/2017 74,873,000 68,695,978 0.51

Aercap Aviation Solution 6.375% 30/05/2017 26,809,000 28,283,495 0.21

AES Corp 7.75% 01/03/2014 32,139,000 34,388,730 0.26

AES Corp 7.75% 15/10/2015 18,405,000 20,751,638 0.16

AES Corp 9.75% 15/04/2016 67,710,000 81,252,000 0.61

Affinia Group Inc 9% 30/11/2014 48,834,000 48,956,085 0.37

Air Lease Corp 4.5% 15/01/2016 77,744,000 78,910,160 0.59

Air Lease Corp 5.625% 04/01/2017 71,750,000 76,413,750 0.57

Aircastle Ltd 6.75% 15/04/2017 40,611,000 43,656,825 0.33

Aircastle Ltd 9.75% 01/08/2018 27,378,000 31,074,030 0.23

Ally Financial Inc 3.125% 15/01/2016 63,942,000 64,224,624 0.48





Alphabet Holding Co Inc 7.75% 11/01/2017 24,233,000 25,020,572 0.19

AMC Entertainment Inc 8.75% 06/01/2019 36,335,000 40,422,688 0.30

American Axle + Mfg Inc 7.875% 03/01/2017 17,910,000 18,581,625 0.14

American Axle + Mfg Inc 9.25% 15/01/2017 56,020,000 62,462,300 0.47

Antero Resources Finance 9.375% 12/01/2017 48,946,000 53,962,965 0.40

Aramark Corp 8.5% 01/02/2015 141,663,000 142,726,888 1.06

Aramark Holdings Corp 8.625% 01/05/2016 39,199,000 39,790,905 0.30

Arcelormittal 4.50% 25/02/2017 35,115,000 35,413,513 0.26

Arcelormittal 5.375% 01/06/2013 23,630,000 23,933,740 0.18

Arcelormittal 9% 15/02/2015 77,121,000 86,031,715 0.64

Arcelormittal USA Llc 6.5% 15/04/2014 11,400,000 11,850,699 0.09


Value


assets

USD Bonds (continued)

Arvinmeritor Inc 10.625% 15/03/2018 11,725,000 12,281,938 0.09

Arvinmeritor Inc 8.125% 15/09/2015 20,825,000 22,022,438 0.16

Audatex North America 6.75% 15/06/2018 56,727,000 60,981,525 0.46

Avis Budget Car Rental 9.63% 15/03/2018 28,733,000 32,180,960 0.24

Avis Budget Car Rental Llc 4.875% 15/11/2017 48,640,000 49,612,800 0.37

B+G Foods Inc 7.625% 15/01/2018 9,205,000 9,895,375 0.07

Ball Corp 7.125% 01/09/2016 17,376,000 18,679,200 0.14

Bausch & Lomb Inc 9.875% 01/11/2015 34,232,000 35,430,120 0.27

Belo Corp 8% 15/11/2016 30,780,000 33,665,625 0.25

Berry Petroleum Co 10.25% 01/06/2014 41,353,000 46,005,212 0.34

Berry Plastics Corp 0.00% 15/09/2014 6,040,000 6,070,200 0.05



Bill Barrett Corp 9.875% 15/07/2016 42,662,000 46,501,580 0.35

Bio Rad Laboratories Inc 8% 15/09/2016 14,925,000 16,301,025 0.12

Boise Fin Co 9% 01/11/2017 20,446,000 22,388,370 0.17

Bombardier Inc 144A 6.3% 01/05/2014 21,980,000 23,051,525 0.17

Boyd Gaming Corp 6.75% 15/04/2014 43,321,000 43,321,000 0.32

Brunswick Corp 11.25% 01/11/2016 51,968,000 58,918,720 0.44

Burger King Corp 9.875% 15/10/2018 27,385,000 31,492,750 0.24

BWAY Holding Co 10% 15/06/2018 5,894,000 6,571,810 0.05

Cablevision Systems Corp 8.625% 15/09/2017 90,686,000 106,215,977 0.79

Calpine 7.25% 15/10/2017 36,852,000 39,431,640 0.30

Calpine Construction Fin Co 8% 01/06/2016 95,968,000 102,685,759 0.77

Cardtronics Inc 8.25% 01/09/2018 12,776,000 14,245,240 0.11

Case New Holland Inc 7.75% 01/09/2013 67,677,000 70,722,465 0.53

Castle (Am) & Co 12.75% 15/12/2016 11,000,000 12,870,000 0.10

CB Richard Ellis Service 11.625% 15/06/2017 37,006,000 40,891,630 0.31

CCO Holdings Capital Corp 7.25% 30/10/2017 68,687,000 75,298,124 0.56



26



Value


assets


CCO Holdings Capital Corp 7.875% 30/04/2018 15,269,000 16,509,606 0.12

CDW Llc & Cdw Fin Corp 12.535% 12/10/2017 68,292,000 73,328,535 0.55

Celanese US Holdings Llc 6.625% 15/10/2018 35,793,000 39,551,265 0.30

Centene Corp 5.75% 06/01/2017 28,703,000 30,999,240 0.23

Century Aluminum Company 8% 15/05/2014 7,230,820 7,339,282 0.05

Cequel Co Holdings I/Cap 8.625% 15/11/2017 138,131,000 148,145,497 1.10

Chesapeake Energy Corp 7.625% 15/07/2013 22,081,000 22,743,430 0.17


Chiquita Brands Intl Inc 7.5% 01/11/2014 15,280,000 15,356,400 0.11

Cincinnati Bell Inc 8.25% 15/10/2017 13,544,000 14,695,240 0.11

Cinemark Usa Inc 8.625% 15/06/2019 2,110,000 2,347,375 0.02

CIT Group Inc 4.25% 15/08/2017 69,064,000 71,507,692 0.54

CIT Group Inc 4.75% 15/02/2015 74,315,000 77,659,175 0.58

CIT Group Inc 5% 15/05/2017 31,500,000 33,468,750 0.25

CIT Group Inc 5.25% 01/04/2014 70,465,000 73,283,600 0.55

Citizens Communications Co 6.25% 15/01/2013 42,946,000 43,045,849 0.32

CKE Restaurants Inc 11.375% 15/07/2018 48,092,000 55,546,260 0.42

Clear Channel Communications 5.75% 15/01/2013 65,748,000 65,912,370 0.49

Cnh Capital Llc 3.875% 11/01/2015 57,762,000 59,783,670 0.45

Cnh Capital Llc 6.25% 11/01/2016 42,236,000 46,776,370 0.35

Coffeyville Resources 10.875% 01/04/2017 37,173,000 41,076,165 0.31

Colonial Realty Ltd Partnership 6.15% 15/04/2013 11,002,000 11,142,727 0.08

Colonial Realty Ltd Partnership 6.25% 15/06/2014 5,089,000 5,421,358 0.04

Commercial Metals Co 5.625% 15/11/2013 33,027,000 34,182,945 0.26

Concho Resources Inc 8.625% 01/10/2017 37,069,000 40,544,219 0.30

Consol Energy Inc 8% 01/04/2017 11,015,000 11,978,812 0.09


Value


assets


Constellation Brands Inc 8.375% 15/12/2014 41,882,000 46,907,840 0.35

Corrections Corp of America 7.75% 01/06/2017 46,444,000 49,520,915 0.37

Crown Americas Capital Corp II 7.625% 15/05/2017 52,434,000 55,711,125 0.42

Crown Castle Intl Corp 9% 15/01/2015 38,639,000 41,012,401 0.31

CSC Holdings Llc 8.5% 15/04/2014 41,832,000 45,492,300 0.34

D.R. Horton Inc 5.625% 15/09/2014 26,480,000 28,002,600 0.21

D.R. Horton Inc 6.875% 01/05/2013 25,411,000 25,919,220 0.19

DAE Aviation Holdings Inc 11.25% 01/08/2015 30,505,000 31,496,412 0.24

Darling International 8.5% 15/12/2018 23,000,000 26,536,250 0.20

Deluxe Corp 5.125% 01/10/2014 16,525,000 17,268,625 0.13

Dematic SA 8.75% 01/05/2016 22,565,000 24,172,756 0.18

Denbury Resources Inc 9.75% 01/03/2016 38,950,000 41,384,375 0.31

Digicel SA 10.5% 15/04/2018 48,868,000 54,243,480 0.41

Digicel SA 12% 01/04/2014 56,890,000 62,152,325 0.47

Dish Corp 4.625% 15/07/2017 79,530,000 83,307,675 0.62

Dole Food Inc 13.875% 15/03/2014 20,994,700 23,356,604 0.17

Dole Food Inc 8% 01/10/2016 28,881,000 30,180,645 0.23

Dole Food Inc 8.75% 15/07/2013 14,420,000 14,996,800 0.11

Dollar General Corp 4.125% 15/07/2017 16,434,000 17,337,870 0.13

Drill Rigs Holdings Inc 6.5% 10/01/2017 13,707,000 13,707,000 0.10

Dupont Fabros Technology 8.5% 15/12/2017 54,370,000 59,807,000 0.45

Echostar DBS Corp 6.625% 01/10/2014 57,664,000 62,277,120 0.47

Echostar DBS Corp 7% 01/10/2013 18,903,000 19,706,378 0.15

El Paso Corp 6.875% 15/06/2014 72,265,000 77,748,613 0.58

Encore Acquisition Co 9.5% 01/05/2016 12,086,000 13,052,880 0.10

Equinix Inc 8.125% 01/03/2018 59,696,000 66,038,700 0.49

Felcor Lodging Lp 10% 01/10/2014 66,193,000 76,783,880 0.57

FMG Resources (August 2006) Pty Ltd 6.375% 01/02/2016 29,510,000 30,690,400 0.23



27



Value


assets


FMG Resources Aug 2006 6% 01/04/2017 40,240,000 41,246,000 0.31

FMG Resources August 2006 Pty Ltd 144A 7% 01/11/2015 92,177,000 97,246,735 0.73

Ford Motor Credit Co Llc 12% 15/05/2015 58,830,000 72,728,588 0.54

Ford Motor Credit Co Llc 2.5% 15/01/2016 22,900,000 23,344,237 0.17




Forest Oil Corp 8.5% 15/02/2014 30,185,000 32,147,025 0.24

Freeport Mcmoran Copper & Gold 1.4% 13/02/2015 20,000,000 19,967,140 0.15

Freescale Semiconductor Inc 8.875% 15/12/2014 24,909,000 25,189,226 0.19

Fresenius Fresenius Medical Care US Company 9% 15/07/2015 27,206,000 31,490,945 0.24

Fresenius Medical Care US Company 6.875% 15/07/2017 31,958,000 36,591,910 0.27

Frontier Communications 8.25% 01/05/2014 53,493,000 57,839,306 0.43

Gannett Co Inc 8.75% 15/11/2014 69,416,000 78,266,540 0.59

General Motors Corp 6.75% 01/12/2014 18,201,000 19,662,049 0.15

Georgia Gulf Corp 9% 15/01/2017 43,752,000 48,892,860 0.37

GMAC Inc 8 6.75% 01/12/2014 15,129,000 16,414,965 0.12

Graphic Packaging Intl Inc 9.5% 15/06/2017 55,306,000 60,007,010 0.45

GXS Worldwide Inc 9.75% 15/06/2015 17,482,000 18,290,542 0.14

Hanesbrands Inc 8% 15/12/2016 29,803,000 32,783,300 0.25

Harley Davidson Funding 1.15% 15/09/2015 25,954,000 26,036,041 0.19

HCA Inc 5.75% 15/03/2014 36,290,000 38,059,138 0.28

HCA Inc 6.75% 15/07/2013 30,430,000 31,380,938 0.23

HCA Inc 8.5% 15/04/2019 83,774,000 93,722,162 0.70

Hexion US Finance and Nexion Nova Scotia Finance FRN 15/11/2014 22,230,000 20,896,200 0.16

Host Hotels & Resorts Lp 5.875% 15/06/2019 41,960,000 45,946,200 0.34

Host Hotels & Resorts Lp 9% 15/05/2017 25,990,000 27,939,250 0.21


Value


assets


Igate Corp 9% 01/05/2016 67,741,000 73,668,338 0.55

Ineos Finance Plc 9% 15/05/2015 73,357,000 78,216,901 0.59

Infor US Inc 11.5% 15/07/2018 65,376,000 76,816,800 0.57

Ingles Markets Inc 8.875% 15/05/2017 21,686,000 23,258,235 0.17

Inmarsat Finance Plc 7.375% 01/12/2017 70,594,000 76,065,035 0.57

Intelsat Jackson Hldg 7.25% 04/01/2019 65,323,000 70,630,494 0.53

Intelsat Ltd 6.5% 01/11/2013 48,044,000 49,965,760 0.37

Interline Brands Inc 10% 15/11/2018 35,984,000 39,042,640 0.29

International Wire Group 8.5% 15/10/2017 20,800,000 21,112,000 0.16

Interpublic Group of Companies Inc 10% 15/07/2017 20,930,000 22,970,675 0.17

Intl Lease Finance Corp 4.88% 01/04/2015 86,974,000 89,691,938 0.67




Iron Mountain Inc 8% 15/06/2020 4,978,000 5,289,125 0.04

Iron Mountain Inc 8.375% 15/08/2021 17,004,000 18,959,460 0.14

Jabil Circuit Inc 7.75% 15/07/2016 6,433,000 7,590,940 0.06

Jarden Corp 8% 01/05/2016 27,112,000 28,942,060 0.22

JBS USA Llc/ JBS USA Fin Inc 11.625% 01/05/2014 116,029,000 129,952,479 0.96

JC Penney Corp Inc 6.875% 15/10/2015 9,840,000 9,569,400 0.07

Jones Group Inc 5.13% 15/11/2014 13,000,000 13,373,750 0.10

Kansas City Southern 12.5% 04/01/2016 13,340,000 14,674,000 0.11

Kansas City Southern 8% 02/01/2018 21,774,000 24,223,575 0.18

KB Home 5.75% 01/02/2014 23,216,000 24,144,640 0.18

Kinder Morgan Energy Partners Lp 5.7% 01/05/2016 11,659,000 12,804,415 0.10

Knight Ridder Inc 4.625% 01/11/2014 27,566,000 27,738,288 0.21

Lamar Media Corp 7.875% 15/04/2018 19,985,000 22,158,369 0.17

Lamar Media Corp 9.75% 01/04/2014 8,229,000 9,062,186 0.07



28



Value


assets


Lennar Corp 5.5% 01/09/2014 45,030,000 47,731,800 0.36

Level 3 Financing Inc 10% 02/01/2018 56,970,000 63,806,400 0.48

Limited Brands Inc 6.9% 15/07/2017 39,445,000 45,460,362 0.34

Magnachip Semiconductor SA 10.5% 15/04/2018 15,387,000 17,310,375 0.13

Mandalay Resort Group 7.625% 15/07/2013 20,878,000 21,399,950 0.16

Manitowoc Company Inc 8.5% 11/01/2020 6,000,000 6,765,000 0.05

Manitowoc Company Inc 9.5% 15/02/2018 68,196,000 76,209,030 0.57

Masco Corp 7.125% 15/08/2013 20,000,000 20,583,640 0.15

MDC Holdings Inc 5.375% 15/12/2014 6,350,000 6,798,964 0.05

Methanex Corp 6% 15/08/2015 2,550,000 2,757,284 0.02

MGM Mirage 13% 15/11/2013 47,952,000 53,286,660 0.40

MGM Mirage 5.875% 27/02/2014 38,867,000 40,616,015 0.30

MGM Resorts Intl 10.375% 15/05/2014 27,415,000 31,321,638 0.23

MGM Resorts Intl 6.625% 15/07/2015 101,730,000 109,614,074 0.82

Michaels Stores Inc 11.375% 01/11/2016 25,540,000 26,753,150 0.20

Michaels Stores Inc 7.75% 11/01/2018 14,520,000 16,008,300 0.12

Mirror Pic SA 9% 11/01/2016 30,000,000 30,300,000 0.23

MMI International Ltd 8% 01/03/2017 28,372,000 30,216,180 0.23

Mohawk Industries Inc 6.375% 15/01/2016 16,365,000 18,512,906 0.14

Mylan Inc 7.625% 15/07/2017 43,420,000 48,823,662 0.37

NBTY Inc 9% 10/01/2018 49,244,000 56,076,605 0.42

NCL Corp Ltd 11.75% 15/11/2016 76,837,000 87,209,995 0.65

Neiman Marcus Group Inc 10.375% 15/10/2015 49,600,000 50,457,584 0.38

Newfield Exploration Co 7.125% 15/05/2018 23,219,000 24,612,140 0.18

Nexstar/Mission Broadcst 8.875% 15/04/2017 3,352,000 3,695,580 0.03

Nielsen Finance Llc/Co 7.75% 15/10/2018 42,282,000 47,461,545 0.36

Nord Anglia Education Uk 10.25% 01/04/2017 21,830,000 24,231,300 0.18

Nova Chemicals 8.625% 11/01/2019 4,649,000 5,305,671 0.04

Nova Chemicals Corp 8.375% 01/11/2016 22,547,000 24,801,700 0.19


Value


assets


Novelis Inc 8.375% 15/12/2017 90,109,000 99,795,718 0.75

Nuveen Investments Inc 5.5% 15/09/2015 70,965,000 67,771,575 0.51

Nxp Funding Llc 9.75% 01/08/2018 56,807,000 66,109,146 0.49

Oshkosh Corp 8.25% 01/03/2017 42,029,000 46,336,972 0.35

Packaging Dynamics Corp 8.75% 01/02/2016 39,412,000 41,382,600 0.31

Paetec Holding Corp 8.875% 30/06/2017 20,636,000 22,235,290 0.17

Paetec Holding Corp 9.875% 01/12/2018 23,950,000 27,542,500 0.21

Penn Virginia Corp 10.375% 15/06/2016 33,238,000 35,232,280 0.26

Penske Truck Leasing 2.5% 07/11/2014 9,041,000 9,138,625 0.07


Penske Truck Leasing/Ptl 3.125% 11/05/2015 15,525,000 15,849,053 0.12

Petco Animal Supplies In 9.25% 12/01/2018 66,219,000 73,834,185 0.55

Petco Holdings Inc 8.5% 15/10/2017 24,052,000 24,833,690 0.19

Petrohawk Energy Corp 10.5% 01/08/2014 5,629,000 5,969,605 0.04

Petrohawk Energy Corp 7.875% 01/06/2015 25,353,000 26,485,950 0.20

Pinnacle Entertainment 8.625% 01/08/2017 30,176,000 32,552,360 0.24

Pinnacle Foods Fin Llc 9.25% 01/04/2015 72,762,000 74,126,288 0.55

Plains Exploration & Production 7.625% 01/06/2018 34,624,000 36,614,880 0.27

Plains Exploration & Production Co 10% 01/03/2016 28,388,000 30,375,160 0.23

Plains Exploration & Production Co 8.625% 15/10/2019 10,678,000 12,199,615 0.09

Plastipak Holdings Inc 10.625% 15/08/2019 5,085,000 5,835,038 0.04

Plastipak Holdings Inc 8.5% 15/12/2015 40,878,000 41,695,560 0.31

Polypore International 7.5% 15/11/2017 17,980,000 19,643,150 0.15

Prestige Brands Inc 8.25% 04/01/2018 1,504,000 1,665,680 0.01

ProLogis Inc 7.625% 15/08/2014 6,564,000 7,183,930 0.05

Pulte Homes Inc 5.25% 15/01/2014 28,083,000 29,206,320 0.22



29



Value


assets


QEP Resources Inc 6.05% 01/09/2016 23,423,000 24,696,626 0.18

Quebec Media 7.75% 15/03/2016 7,105,000 7,300,388 0.05

Quicksilver Resources Inc 11.75% 01/01/2016 32,188,000 31,946,590 0.24



QVC Inc 7.125% 15/04/2017 50,203,000 52,657,475 0.39

Range Resources Corp 7.25% 01/05/2018 36,434,000 38,437,870 0.29

RBS Global Inc and Rexnord Corp 8.5% 05/01/2018 93,919,000 102,606,508 0.77

Realogy Corp 11.5% 15/04/2017 28,995,000 31,532,062 0.24

Realogy Corp 12% 15/04/2017 14,873,000 16,174,388 0.12

Realogy Corp 12.375% 15/04/2015 23,526,000 24,349,410 0.18

Realogy Corp 9% 15/01/2020 3,054,000 3,527,370 0.03

Regal Entertainment Group 9.125% 15/08/2018 48,387,000 54,193,440 0.41

Revlon Consumer Prods 9.75% 15/11/2015 26,209,000 27,716,018 0.21

Reynolds Group Issuer Inc/Reynold 7.125% 15/04/2019 86,682,000 93,724,912 0.70

Rouse Company Llc 6.75% 09/11/2015 45,286,000 47,606,908 0.36

Royal Caribbean Cruises Ltd 11.875% 15/07/2015 22,190,000 26,960,850 0.20

Royal Caribbean Cruises Ltd 6.875% 01/12/2013 25,900,000 27,162,625 0.20

Royal Caribbean Cruises Ltd 7% 15/06/2013 38,580,000 39,737,400 0.30

RRI Energy Inc 7.625% 15/06/2014 48,051,000 51,534,698 0.39

RSC Equipment Rental Inc Holdings 10.25% 15/11/2019 8,740,000 10,182,100 0.08

Ryland Group 5.375% 15/01/2015 2,693,000 2,854,580 0.02

Sally Holdings 6.88% 15/11/2019 65,728,000 72,958,080 0.55

Sandridge Energy Inc 9.875% 15/05/2016 16,891,000 18,284,508 0.14

Sappi Papier Holding GmbH 7.75% 15/07/2017 22,293,000 24,382,969 0.18

SBA Telecommunications 8.25% 15/08/2019 7,379,000 8,282,928 0.06

Schaeffler Finance BV 7.75% 15/02/2017 74,721,000 83,313,915 0.62


Value


assets


Scientific Games Intl Inc 8.125% 15/09/2018 9,365,000 10,348,325 0.08

Scientific Games Intl Inc 9.25% 15/06/2019 48,560,000 54,265,800 0.41

Seadrill Ltd 5.625% 15/09/2017 94,686,000 94,449,285 0.71

Seagate Hdd Cayman 7.75% 15/12/2018 68,607,000 75,724,976 0.57

Seagate Technology 6.8% 10/01/2016 20,339,000 22,881,375 0.17

Seagate Technology Intl 10% 01/05/2014 53,168,000 57,487,900 0.43

Sealed Air Corp 7.875% 15/06/2017 48,212,000 51,647,105 0.39

Sealed Air Corp 8.125% 15/09/2019 4,628,000 5,241,210 0.04

Sealy Corp 10.875% 15/04/2016 21,314,000 22,646,125 0.17

Select Medical Corp 7.625% 01/02/2015 5,928,000 5,942,820 0.04

Sequa Corp 7% 15/12/2017 24,325,000 24,598,656 0.18

Service Corp Intl 6.75% 01/04/2015 24,244,000 26,789,620 0.20

Sheridan Group Inc 12.5% 15/04/2014 7,333,586 6,123,544 0.05

Sinclair Television Group 8.375% 15/10/2018 11,895,000 13,352,138 0.10

Sinclair Television Group 9.25% 01/11/2017 48,912,000 54,047,760 0.40

Sirius Xm Radio Inc 8.75% 04/01/2015 37,205,000 42,320,688 0.32

Smithfield Foods Inc 7.75% 07/01/2017 21,581,000 25,249,770 0.19

Spectrum Brands Inc 9.5% 15/06/2018 4,000,000 4,580,000 0.03

Speedy Cash Intermediate Hldgs Corp 10.75% 15/05/2018 4,171,000 4,462,970 0.03

Spirit Aerosystems Inc 7.5% 01/10/2017 51,476,000 55,336,700 0.41

Sprint Nextel Corp 6% 12/01/2016 76,782,000 83,308,470 0.62

Sprint Nextel Corp 9.125% 03/01/2017 11,950,000 14,130,875 0.11

SPX Corp 7.625% 15/12/2014 63,562,000 69,918,200 0.52

Standard Pacific Corp 10.75% 15/09/2016 36,860,000 46,075,000 0.34

Stater Brothers Holdings 7.75% 15/04/2015 23,601,000 24,191,025 0.18

Steel Dynamics Inc 6.75% 01/04/2015 42,899,000 43,649,732 0.33

Steinway Musical Instruments Inc 7% 01/03/2014 6,555,000 6,579,647 0.05



30



Value


assets


Sungard Data Systems Inc 4.875% 15/01/2014 15,196,000 15,746,855 0.12

Sunstate Equipment Co Inc 12% 15/06/2016 11,660,000 12,621,950 0.09

Susser Holdings & Financ 8.5% 15/05/2016 22,552,000 24,074,260 0.18

Swift Energy Co 7.13% 01/06/2017 26,650,000 27,582,750 0.21

Targa Resources Partners 7.875% 15/10/2018 2,271,000 2,498,100 0.02

Telesat Canada 6% 15/05/2017 90,961,000 95,850,154 0.72

Tenet Healthcare Corp 10% 01/05/2018 53,192,000 60,771,860 0.45

Tenet Healthcare Corp 7.375% 01/02/2013 38,030,000 38,457,838 0.29

Tenet Healthcare Corp 9.25% 02/01/2015 45,851,000 51,697,002 0.39

Tenneco Inc 7.75% 15/08/2018 8,342,000 9,092,780 0.07

Tesoro Corp 4.25% 10/01/2017 77,503,000 80,603,120 0.60

TMX Finance Llc/Titlemax Finance 13.25% 15/07/2015 30,635,000 34,158,025 0.26

Toll Brothers Fin Corp 4.95% 15/03/2014 7,000,000 7,275,611 0.05

Tomkins Llc/Tomkins Inc 1% 01/10/2018 31,015,000 34,891,875 0.26

Toys R Us Inc 10.375% 15/08/2017 60,910,000 63,803,225 0.48

Toys R Us Property Co I 10.75% 15/07/2017 44,054,000 47,688,455 0.36

TransDigm Inc 7.75% 15/12/2018 100,217,000 111,240,869 0.83

TransUnion Co 11.375% 15/06/2018 94,274,000 110,300,579 0.82

Triumph Group Inc 8.625% 15/07/2018 28,229,000 31,475,335 0.24

TRW Automotive Inc 144A 7% 15/03/2014 31,530,000 33,421,800 0.25

TRW Automotive Inc 8.88% 01/12/2017 12,724,000 14,060,020 0.11

TW Telecom Holdings Inc 8% 01/03/2018 45,669,000 50,235,900 0.38

Unisys Corp 6.25% 15/08/2017 15,682,000 16,779,740 0.13

United Airlines Inc 12% 01/11/2013 34,533,000 34,878,330 0.26

United Airlines Inc 9.875% 01/08/2013 33,684,000 33,978,735 0.25

United Rentals North America Inc 9.25% 15/12/2019 11,772,000 13,478,940 0.10

Valeant Pharmaceuticals 6.5% 15/07/2016 85,727,000 90,549,144 0.68


Value


assets




Videotron Ltee 9.125% 15/04/2018 41,543,000 44,347,152 0.33

Warner Chilcott Plc 7.75% 15/09/2018 47,792,000 51,137,440 0.38

Wendy SA International 6.2% 15/06/2014 28,243,000 29,866,972 0.22

West Corp 11% 15/10/2016 88,854,000 92,630,295 0.69

Western Refining Inc 11.25% 15/06/2017 51,359,000 56,430,701 0.42

Westinghouse Air Brake Tech 6.875% 31/07/2013 13,230,000 13,659,975 0.10

Whirlpool Corp 8.6% 01/05/2014 21,856,000 23,944,297 0.18

Windstream Corp 7.875% 11/01/2017 22,060,000 24,982,950 0.19

Windstream Corp 8.125% 01/08/2013 43,200,000 45,036,000 0.34

WireCo Worldgroup Inc 9.50% 15/05/2017 40,204,000 42,817,260 0.32

Wynn Las Vegas Llc/Corp 7.875% 01/11/2017 50,726,000 55,291,340 0.41

XM Satellite Radio Inc 7.625% 11/01/2018 29,588,000 33,064,590 0.25

Yankee Acquisition Corp 8.5% 15/02/2015 2,484,000 2,502,630 0.02

12,494,972,068 93.48

TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR DEALT IN ON ANOTHER REGULATED MARKET

12,494,972,068 93.48



31

The accompanying notes form an integral part of these financial statements. (*) This classification regroups the securities that are not admitted to an official exchange listing or not dealt in on another regulated market.


Value


assets

II. OTHER TRANSFERABLE SECURITIES (*)

USD Bonds

New Academy Finance Co 8% 15/06/2018 46,130,000 46,937,275 0.35

Southern Star Central Corp 6.75% 03/01/2016 4,773,000 4,868,460 0.04

Tops Holding Corporation and Tops Markets 8.875% 15/12/2017 22,500,000 23,456,250 0.18

75,261,985 0.57

TOTAL OTHER TRANSFERABLE SECURITIES 75,261,985 0.57

Total Investment in Securities 12,570,234,053 94.05

Cash and cash equivalent 456,246,400 3.41

Other Net Assets 338,696,652 2.54

TOTAL NET ASSETS 13,365,177,105 100.00


Industrial Classification as at 31 December 2012

32

% of net assets

Industrial 23.09 Financial Services 14.52 Oil and Gas 5.68 Communications 5.35 Media 3.89 Healthcare 2.61 Retail 2.57 Food and Beverages 2.54 Lodging 2.50 Containers and Packaging 2.32 Technology 2.19 Building Materials and Products 2.15 Electrical Appliances and Components 2.03 Pharmaceuticals and Biotechnology 2.01 Commercial Services and Supplies 1.91 Real Estate 1.78 Hotels, Restaurants and Leisure 1.59 Miscellaneous Manufacture 1.46 Traffic and Transportation 1.37 Energy and Water Supply 1.31 Consumer, Cyclical 1.07 Metals and Mining 1.01 Entertainment 0.95 Automobiles 0.94 Banks 0.92 Semiconductor Equipment and Products 0.83 Textiles, Garments and Leather Goods 0.77 Mechanical Engineering and Industrial Equipments 0.71 Chemicals 0.67 Aerospace and Defence 0.59 Pipelines 0.58 Advertising 0.41 Paper and Forest Products 0.35 Basic Materials 0.33 Household Products and Wares 0.24 Trucking and Leasing 0.23 Distribution and Wholesale 0.18 Internet, Software and IT Services 0.14 Diversified Services 0.13 Financial, Investment and Other Diversified Companies 0.08 Consumer, Non-cyclical 0.05

94.05



33



Value


assets


USD Bonds

Abbvie Inc 1.75% 11/06/2017 1,333,000 1,349,132 0.24

ABN Amro Bank NV 4.25% 02/02/2017 3,050,000 3,334,199 0.59

Acuity Brands Lighting Inc 6% 15/12/2019 1,000,000 1,147,422 0.20

Adobe Systems Inc 4.75% 01/02/2020 2,350,000 2,639,858 0.47

ADT Corp 2.25% 15/07/2017 1,185,000 1,176,893 0.21

AES Corp 9.75% 15/04/2016 2,250,000 2,700,000 0.48

Aircastle Ltd 6.75% 15/04/2017 2,250,000 2,418,750 0.43

Allegheny Technologies Inc 9.375% 01/06/2019 1,015,000 1,295,376 0.23

Altria Group Inc 9.25% 06/08/2019 2,300,000 3,210,110 0.57

America Movil SAB de CV 5% 30/03/2020 2,500,000 2,925,825 0.52

American Express Co 7% 19/03/2018 4,468,000 5,652,252 1.01

American Intl Group Inc 5.45% 18/05/2017 4,775,000 5,495,657 0.98

AmerisourceBergen Corp 3.5% 15/11/2021 1,600,000 1,725,179 0.31

Amgen Inc 3.875% 15/11/2021 1,800,000 1,985,560 0.35

Anheuser Busch InBev Worlwide 7.75% 15/01/2019 2,350,000 3,148,582 0.56

Apache Corp 3.625% 01/02/2021 1,000,000 1,094,404 0.19

Arcelormittal 4.50% 25/02/2017 2,800,000 2,823,803 0.50

Aristotle Holding Inc 3.5% 15/11/2016 2,300,000 2,461,515 0.44

AT&T Inc 5.5% 01/02/2018 4,550,000 5,427,213 0.97

Autozone Inc 6.5% 15/01/2014 500,000 528,082 0.09

Aviation Capital Group Corp 7.125% 15/10/2020 2,500,000 2,643,172 0.47

Avnet Inc 4.875% 12/01/2022 4,600,000 4,712,097 0.84

Bank of America Corp 4.5% 01/04/2015 6,450,000 6,878,700 1.24



Barclays Bank Plc 5.2% 10/07/2014 1,000,000 1,064,479 0.19

Barrick North America Finance LLC 6.8% 15/09/2018 2,400,000 2,966,786 0.53


Value


assets


Baxter Intl Inc 4% 01/03/2014 600,000 623,414 0.11

BB&T Corp 5.2% 23/12/2015 1,600,000 1,782,456 0.32

Bear Stearns Cos Inc 7.25% 01/02/2018 1,000,000 1,254,605 0.22

Bemis Company Inc 5.65% 01/08/2014 1,000,000 1,070,942 0.19

Blackstone Holdings Fin Co Llc 5.875% 15/03/2021 2,350,000 2,661,359 0.47

Boeing Co 5.8% 15/01/2013 600,000 601,127 0.11

BP Capital Plc 3.561% 01/11/2021 1,900,000 2,062,570 0.37

Brandywine Oper Partners 7.5% 15/05/2015 2,000,000 2,246,856 0.40

Broadcom Corp 2.7% 01/11/2018 2,850,000 3,058,372 0.54

Burlington Northern Santa Fe 3.45% 15/09/2021 1,500,000 1,621,514 0.29

CA Inc 5.375% 01/12/2019 2,600,000 2,971,537 0.53

Capital One Cap IV 6.745% 17/02/2037 600,000 600,000 0.11

Capital One Fin Corp 5.5% 01/06/2015 3,650,000 4,024,950 0.72

Caterpillar Financial SE 2.85% 01/06/2022 2,900,000 2,980,704 0.53

CBS Corp 5.75% 15/04/2020 2,825,000 3,396,280 0.60

CeLlco Part/Veri Wireless 8.5% 15/11/2018 1,800,000 2,479,716 0.44

CeLlco Part/Veri Wirelss 5.55% 01/02/2014 800,000 840,093 0.15

CenturyLink Inc 6.45% 15/06/2021 2,500,000 2,773,515 0.49

Choice Hotels Intl Inc 5.7% 28/08/2020 1,000,000 1,090,000 0.19

Citigroup Inc 4.45% 10/01/2017 5,500,000 6,099,182 1.09

Citigroup Inc 5.5% 15/10/2014 3,000,000 3,218,970 0.57

Citigroup Inc 6.125% 15/05/2018 5,300,000 6,359,831 1.13

Citigroup Inc 6.375% 12/08/2014 2,600,000 2,811,006 0.50

Citizens Communications Co 6.25% 15/01/2013 2,550,000 2,555,929 0.46

City National Corp 5.25% 15/09/2020 1,200,000 1,341,854 0.24

Cnh Capital Llc 6.25% 11/01/2016 2,500,000 2,768,750 0.49

Comcast Corp 5.7% 15/05/2018 1,250,000 1,504,806 0.27

Comerica Bank 5.75% 21/11/2016 2,450,000 2,837,580 0.51

Commcast Cable Communication Holdings 8.375% 15/03/2013 600,000 609,621 0.11



34



Value


assets


Commonwealth Edison Co 1.95% 01/09/2016 1,700,000 1,755,462 0.31

Commonwealth REIT 5.875% 15/09/2020 1,500,000 1,599,111 0.28

Conagra Foods Inc 2.1% 15/03/2018 1,265,000 1,268,712 0.23

Conocophillips 4.75% 01/02/2014 400,000 418,256 0.07

Corn Products Intl Inc 3.2% 01/11/2015 1,500,000 1,575,468 0.28

Costco Wholesale Corp 1.7% 15/12/2019 2,625,000 2,635,983 0.47

CVS Caremark Corp 2.75% 12/01/2022 3,811,000 3,844,613 0.68

Daimlerchrysler Finance North America Llc 2.25% 31/07/2019 3,400,000 3,438,281 0.61

Devon Energy Corporation 4% 15/07/2021 2,290,000 2,544,598 0.45

DirecTV Holdings Llc 3.55% 15/03/2015 1,000,000 1,052,468 0.19

Discovery Communications 3.7% 01/06/2015 1,000,000 1,065,937 0.19

Dollar General Corp 4.125% 15/07/2017 572,000 603,460 0.11

Dominion Resources Inc VA New 5% 15/03/2013 800,000 807,619 0.14

Dow Chemical Co 8.55% 15/05/2019 3,250,000 4,401,891 0.78

Dr Pepper Snapple Group 2% 15/01/2020 1,341,000 1,342,189 0.24

Duke Realty LP 7.375% 15/02/2015 2,600,000 2,901,124 0.52

Eastman Chemical Company 3.6% 15/08/2022 1,974,000 2,077,331 0.37

Ecolab Inc 4.35% 08/12/2021 2,000,000 2,242,474 0.40

El Paso Corp 6.5% 15/09/2020 750,000 852,454 0.15

Energy Transfer Partners 5.20% 01/02/2022 3,300,000 3,780,764 0.67

Ensco Plc 3.25% 15/03/2016 2,700,000 2,865,480 0.51

Enterprise Products Operating 5.2% 01/09/2020 1,800,000 2,156,974 0.38

Erac USA Fin Co 2.75% 01/07/2013 1,250,000 1,263,441 0.23

Federated Retail Holdings Inc 5.9% 01/12/2016 508,000 597,522 0.11

Fidelity National Financial Inc 5.5% 09/01/2022 986,000 1,096,334 0.20

Fidelity National Financial Inc 6.6% 15/05/2017 1,500,000 1,692,648 0.30

Fifth Third Bancorp 3.625% 25/01/2016 1,500,000 1,603,944 0.29


Value


assets


Fifth Third Bank Cincinnati 4.75% 01/02/2015 2,800,000 3,003,557 0.53

First Horizon National 5.375% 15/12/2015 1,500,000 1,634,924 0.29

First Niagara Financial Group Inc 6.75% 19/03/2020 2,200,000 2,612,698 0.47

First Tenn Bank 5.65% 01/04/2016 1,500,000 1,635,642 0.29



France Telecom SA 2.75% 14/09/2016 3,350,000 3,519,915 0.63

France Telecom SA 4.375% 08/07/2014 500,000 526,433 0.09

GATX Corp 4.75% 15/05/2015 2,500,000 2,672,620 0.48

General Electric Capital Corp 4.8% 01/05/2013 1,500,000 1,522,137 0.27



Georgia Power Company 5.7% 06/01/2017 3,000,000 3,602,991 0.64

Gilead Sciences Inc 4.4% 01/12/2021 2,500,000 2,862,535 0.51

Goldman Sachs Group Inc 3.63% 07/02/2016 1,750,000 1,853,920 0.33

Goldman Sachs Group Inc 5.125% 15/01/2015 1,750,000 1,880,907 0.33

Goldman Sachs Group Inc Mtn 7.5% 15/02/2019 600,000 757,325 0.13

Harley Davidson Funding 5.75% 15/12/2014 2,000,000 2,185,332 0.39

Heineken NV 1.4% 10/01/2017 2,520,000 2,515,378 0.45

Hess Corp 8.13% 15/02/2019 1,500,000 1,980,356 0.35

HSBC USA Inc 5% 27/09/2020 2,300,000 2,521,147 0.45

Huntington National Bank 6.6% 15/06/2018 1,000,000 1,098,490 0.20

Hyatt Hotels Corps 5.75% 15/08/2015 1,100,000 1,208,256 0.22

Hyundai Capital Services Inc 4.375% 27/07/2016 1,700,000 1,829,880 0.33

IBM Corp 1.25% 06/02/2017 3,400,000 3,439,488 0.61

Icahn Enterprises Fin Corp 8% 15/01/2018 1,750,000 1,885,625 0.34

Indiana Michigan Power Co 7% 15/03/2019 1,600,000 2,028,504 0.36

ING US Inc 5.5% 15/07/2022 2,333,000 2,543,220 0.45



35



Value


assets


Inmarsat Finance Plc 7.375% 01/12/2017 2,250,000 2,424,375 0.43

Intl Game Technology 7.5% 15/06/2019 1,500,000 1,781,314 0.32


Jefferies Group Inc 8.5% 15/07/2019 1,000,000 1,200,000 0.21

John Deere Capital Corp 2.25% 17/04/2019 2,500,000 2,579,872 0.46

JP Morgan Chase & Co 2.05% 24/01/2014 1,700,000 1,727,356 0.31

JP Morgan Chase & Co 4.5% 24/01/2022 5,800,000 6,566,326 1.18

JP Morgan Chase Bank 4.625% 10/05/2021 3,100,000 3,549,599 0.63

JP Morgan Chase Bank 6% 05/07/2017 3,500,000 4,108,926 0.73

Kaiser Foundation Hospital 3.5% 01/04/2022 1,050,000 1,112,474 0.20

Keycorp 5.1% 24/03/2021 2,200,000 2,573,688 0.46

Keycorp Mtn 3.75% 13/08/2015 2,800,000 2,998,075 0.53

Kohls Corp 6.25% 15/12/2017 2,000,000 2,399,932 0.43

Kraft Food Inc 5.375% 10/02/2020 1,072,000 1,298,972 0.23

Kraft Foods Group Inc 3.50% 06/06/2022 1,000,000 1,072,558 0.19

Kraft Foods Group Inc 5.375% 02/10/2020 1,178,000 1,419,662 0.25

Kroger Co 2.20% 15/01/2017 1,500,000 1,551,712 0.28

Lloyds TSB Bank Plc 4.875% 21/01/2016 3,600,000 3,975,966 0.71

Lorillard Tobacco Company 6.875% 01/05/2020 1,000,000 1,223,301 0.22

M&I Marshall & Ilsley Bank 4.85% 16/06/2015 1,500,000 1,613,868 0.29

Macquarie Bank Ltd 3.45% 27/07/2015 3,400,000 3,537,516 0.63

Macys Retail Holdings Inc 2.875% 15/02/2023 3,923,000 3,861,625 0.69

Manulife Financial Corp 3.4% 17/09/2015 3,210,000 3,377,273 0.60

Marathon Oil Corp 2.8% 11/01/2022 2,080,000 2,103,421 0.37

Marriott Intl Inc New 6.2% 15/06/2016 2,600,000 3,001,430 0.53

Marsh & Mclennan Cos Inc 5.75% 15/09/2015 137,000 153,678 0.03

Masco Corp 5.95% 15/03/2022 975,000 1,085,469 0.19

Mattel Inc 5.625% 15/03/2013 1,000,000 1,010,013 0.18

Mcdonald Corp 1.875% 29/05/2019 1,116,000 1,139,686 0.20


Value


assets


MDC Holdings Inc 5.375% 01/07/2015 547,000 588,547 0.10

MDC Holdings Inc 5.625% 01/02/2020 1,000,000 1,096,079 0.20

Merck & Co Inc 5% 30/06/2019 2,700,000 3,261,157 0.58

Merrill Lynch & Co 6.875% 25/04/2018 2,000,000 2,413,970 0.43

Met Life Global Funding I 1.7% 29/06/2015 3,950,000 4,034,475 0.72

Morgan Stanley 5.375% 15/10/2015 2,000,000 2,175,664 0.39

Morgan Stanley 6.25% 28/08/2017 1,250,000 1,432,316 0.26

Motiva Enterprises Llc 5.75% 15/01/2020 2,500,000 3,039,935 0.54

Nasdaq OMX Group Inc 5.25% 16/01/2018 2,700,000 2,954,343 0.53

National City Bank 5.8% 07/06/2017 1,500,000 1,771,930 0.32

National Rural Utilities Cooperative Fin 5.45% 10/04/2017 2,000,000 2,345,618 0.42

Nationwide Financial Services Inc 5.375% 25/03/2021 2,750,000 2,950,742 0.53

Newmont Mining Corp 3.5% 15/03/2022 3,050,000 3,167,477 0.56

News America Inc 4.5% 15/02/2021 3,250,000 3,728,494 0.66

Nextera Energy Capital 1.611% 01/06/2014 1,338,000 1,352,862 0.24

Nissan Motor Acceptance Corp 4.5% 30/01/2015 1,000,000 1,070,074 0.19

Noble Energy Inc 8.25% 01/03/2019 2,250,000 2,958,170 0.53

Norfolk Southern Corp 5.75% 15/01/2016 900,000 1,024,911 0.18

Occidental Petroleum Corp 1.75% 15/02/2017 1,000,000 1,026,512 0.18

Omnicom Group Inc 4.45% 15/08/2020 1,000,000 1,117,137 0.20


People's United Financial Inc 3.65% 12/06/2022 1,867,000 1,885,860 0.34

Pepsiamericas Inc 4.375% 15/02/2014 600,000 625,374 0.11

Petro Canada 6.05% 15/05/2018 2,000,000 2,435,424 0.43

Pfizer Inc 5.35% 15/03/2015 2,000,000 2,203,794 0.39

Philip Morris Intl Inc 6.875% 17/03/2014 500,000 538,607 0.10

Phillips 66 4.3% 04/01/2022 3,075,000 3,452,112 0.61



36



Value


assets


Plains All Amer Pipeline 3.65% 01/06/2022 2,450,000 2,605,891 0.46

PNC Preferred Funding Trust 6.517% 31/12/2049 1,000,000 840,000 0.15

Praxair Inc 2.45% 15/02/2022 2,000,000 2,019,776 0.36

ProLogis Inc 7.625% 15/08/2014 1,125,000 1,231,250 0.22

Protective Life Corp 7.375% 15/10/2019 1,000,000 1,219,626 0.22

Prudential Financial Inc 5.1% 20/09/2014 2,100,000 2,248,800 0.40

Rabobank Nederland 3.875% 02/08/2022 1,850,000 2,000,090 0.36

Realty Income Corp 6.75% 15/08/2019 2,000,000 2,484,206 0.44

Regions Financial Corp 7.75% 10/11/2014 2,050,000 2,278,165 0.41

Rio Tinto Fin USA Ltd 3.5% 02/11/2020 2,500,000 2,662,855 0.47

Roche Holdings Inc 5% 01/03/2014 382,000 401,421 0.07

Roper Industries Inc 3.125% 15/11/2022 2,916,000 2,949,689 0.53

Roper Industries Inc 6.25% 01/09/2019 750,000 899,407 0.16

Royal Bank of Scotland Plc 4.375% 16/03/2016 3,800,000 4,115,073 0.73

Ryder System Inc 3.15% 02/03/2015 1,850,000 1,911,562 0.34

Sempra Energy 2.30% 01/04/2017 1,750,000 1,819,120 0.32

Sempra Energy 8.9% 15/11/2013 1,100,000 1,176,936 0.21

Snap-On Inc 4.25% 15/01/2018 1,000,000 1,120,519 0.20

Statoil ASA 3.125% 17/08/2017 850,000 922,594 0.16

Steelcase Inc 6.375% 15/02/2021 1,300,000 1,390,174 0.25

SunTrust Banks Inc 3.5% 20/01/2017 3,700,000 3,977,615 0.71

SVB Financial Group 5.375% 15/09/2020 1,500,000 1,692,588 0.30

Svenska Handelsbanken AB 3.125% 12/07/2016 2,800,000 2,973,569 0.53

Symantec Corp 2.75% 15/06/2017 1,562,000 1,608,141 0.29

Target Corp 2.90% 15/01/2022 3,000,000 3,195,054 0.57

Teco Fin Inc 4% 15/03/2016 1,500,000 1,605,129 0.29

Thermo Fisher Scientific Inc 3.2% 01/03/2016 2,350,000 2,497,726 0.44

Time Warner Cable Inc 6.75% 01/07/2018 2,500,000 3,127,108 0.56


Value


assets


Time Warner Inc 3.15% 15/07/2015 3,000,000 3,174,228 0.57

Timken Co 6% 15/09/2014 750,000 801,794 0.14

Toll Brothers Fin Corp 5.95% 15/09/2013 620,000 637,254 0.11

Transcanada Pipelines Ltd 3.8% 01/10/2020 2,500,000 2,801,208 0.50

Transocean Inc 5.05% 15/12/2016 2,100,000 2,340,549 0.42

Tyco Flow Control International 1.875% 15/09/2017 1,231,000 1,235,987 0.22

Tyson Foods Inc 4.5% 15/06/2022 1,077,000 1,174,376 0.21

UDR Inc 4.25% 01/06/2018 2,850,000 3,110,082 0.55

Union Bank of California 3% 06/06/2016 2,350,000 2,489,997 0.44

United Technologies Corp 5.375% 15/12/2017 600,000 714,049 0.13

Vale Overseas Ltd 6.25% 23/01/2017 2,265,000 2,621,529 0.47

Valero Energy Corp 4.5% 01/02/2015 3,500,000 3,745,508 0.67

Validus Holdings Ltd 8.875% 26/01/2040 1,000,000 1,357,519 0.24

Verizon Communications Inc 6.1% 15/04/2018 2,000,000 2,462,376 0.44

Viacom Inc 4.375% 15/09/2014 1,000,000 1,059,998 0.19

Vornado Realty Lp 5% 15/01/2022 2,450,000 2,715,337 0.48

Wachovia Bank Natl Assn 6% 15/11/2017 4,500,000 5,402,848 0.96

WalMart Stores Inc 2.25% 08/07/2015 1,500,000 1,562,456 0.28

Watson Pharmaceuticals 3.25% 10/01/2022 2,520,000 2,585,152 0.46

WEA Finance LLC 5.75% 02/09/2015 3,000,000 3,351,411 0.60

Weatherford Intl Ltd 4.95% 15/10/2013 600,000 617,594 0.11

Wellpoint Inc 3.3% 15/01/2023 2,430,000 2,505,998 0.45

Wells Fargo & Company 2.625% 15/12/2016 5,500,000 5,810,409 1.03

Western Union Co 2.875% 12/10/2017 1,555,000 1,542,593 0.27

Western Union Co 5.93% 01/10/2016 1,400,000 1,539,593 0.27

Westlake Chemical Corp 3.6% 15/07/2022 2,146,000 2,165,305 0.39

Whirlpool Corp 8.6% 01/05/2014 1,000,000 1,095,548 0.20



37



Value


assets


Williams Partners Lp 3.35% 15/08/2022 3,000,000 3,052,884 0.54

Willis North America Inc 7% 29/09/2019 2,000,000 2,364,846 0.42

Wyndham Worldwide 4.25% 01/03/2022 3,518,000 3,648,588 0.65

Xerox Corp 4.5% 15/05/2021 1,000,000 1,063,311 0.19

523,614,653 93.25


523,614,653 93.25


USD Bonds

Electricité de France 5.5% 26/01/2014 2,350,000 2,468,901 0.44

Goodman Funding PTY LTD 6.375% 12/11/2020 3,800,000 4,324,807 0.77

Post Apartment Homes Lp 3.375% 12/01/2022 3,500,000 3,499,528 0.62

PPL Capital Funding Inc 3.5% 12/01/2022 1,750,000 1,778,359 0.32

12,071,595 2.15


Total Investment in Securities 535,686,248 95.40



TOTAL NET ASSETS 561,504,350 100.00



38

% of net assets

Financial Services 18.74 Banks 17.60 Industrial 12.24 Communications 5.56 Energy and Water Supply 4.84 Insurance 3.61 Financial, Investment and Other Diversified Companies 3.46 Oil and Gas 3.33 Real Estate 2.79 Technology 2.45 Food and Beverages 2.31 Chemicals 1.75 Metals and Mining 1.47 Traffic and Transportation 1.43 Media 1.41 Healthcare 1.36 Pharmaceuticals and Biotechnology 1.32 Building Materials and Products 1.07 Retail 0.91 Consumer, Non-cyclical 0.85 Agriculture 0.67 Diversified Services 0.53 Hotels, Restaurants and Leisure 0.53 Internet, Software and IT Services 0.53 Mechanical Engineering and Industrial Equipments 0.50 Pipelines 0.50 Electrical Appliances and Components 0.48 Utilities 0.44 Lodging 0.41 Savings and Loans 0.34 Basic Materials 0.23 Tobacco and Alcohol 0.22 Semiconductor Equipment and Products 0.21 Advertising 0.20 Textiles, Garments and Leather Goods 0.20 Containers and Packaging 0.19 Office and Business Equipment 0.19 Toys, Games and Hobbies 0.18 Aerospace and Defence 0.13 Consumer, Cyclical 0.11 Miscellaneous Manufacture 0.11

95.40



39

The accompanying notes form an integral part of these financial statements. (*) This classification regroups the securities that are not admitted to an official exchange listing or not dealt in on another regulated market. (**) Please refer to the note 2d) regarding the valuation of the Sub-Fund AXA IM Fixed Income Investment Strategies - US Libor Plus.


Value


assets

OTHER TRANSFERABLE SECURITIES (*)

USD Mortgage and Asset Backed Securities

**Asset Backed Secs Corp Hm Eqty 1.7936% 25/03/2035 441,681 5,060 0.02

**Bear Stearns Alt A Tr 1.8686% 25/11/2034 580,176 8,891 0.03

**Bear Stearns Alt A Tr 2006 8 B2 0.7436% 25/02/2034 417,175 2,282 0.01

**Bear Stearns Asst Bck Secs I 2.0186% 25/12/2034 920,647 830,393 2.86

**Chase Fdg Loan Acquisition Tr 1.4936% 25/05/2034 370,655 213,784 0.74

**Chase Funding Mortgage Loan 1.6136% 25/07/2033 732,247 588,868 2.03

**First Franklin Mtg Ln Tr 1.5436% 25/01/2035 505,068 24,529 0.08

**GSAA Home Equity Trust 0.9936% 25/03/2035 1,000,000 206,552 0.71

**JP Morgan Mortgage Acquisition Corp 0.9436% 25/07/2035 1,600,000 1,245,547 4.30

**Park Pl Secs Inc 1.3936% 25/02/2035 3,500,000 2,872,332 9.91

**Park Pl Secs Inc 1.4936% 25/01/2035 1,757,702 807,685 2.78

**Saco I Trust 2.0186% 25/12/2035 1,550,414 1,103,052 3.80

**Structured Adj Rate Mtg Ln Tr 0.7436% 25/03/2035 494,689 12,744 0.04

**Structured Asset Secs Corp 1.3936% 25/07/2034 658,669 12,518 0.04



**Structured Mtg Loan Tr 0.9936% 25/11/2034 438,552 16,813 0.06

Acacia Cdo 11 Ltd 1.79625% 15/03/2047 3,326,023 168,297 0.58

Ameriquest Mtg Secs Inc 0.9736% 25/11/2033 1,110,121 705,593 2.43

Ameriquest Mtg Secs Inc 1.3436% 25/04/2034 642,842 35,999 0.12







Value


assets

USD Mortgage and Asset Backed Securities (continued)

Argent Secs Inc 1.7436% 25/02/2034 493,453 27,633 0.10

Argent Secs Inc 2.2436% 25/04/2034 215,219 12,052 0.04

Argent Secs Inc 4.0436% 25/10/2033 93,859 5,256 0.02

Asset Backed Fdg Corp 1.7936% 25/07/2033 149,366 19,761 0.07




Ayresome Cdo I Ltd 1% 08/12/2045 3,000,000 0 0.00

Bank of America Fdg Corp 1.38485% 20/12/2034 1,162,923 65,124 0.22

Bank of America Fdg Corp 2.694916% 25/05/2035 2,495,959 66,892 0.23

Bank of America Fdg Corp 6.75% 20/11/2032 233,302 223,316 0.77

Bank of America Inc 2.800035% 25/11/2033 725,544 12,697 0.04

Bank of America Inc 2.836701% 25/12/2033 210,636 1,053 0.00

Bayview Coml Asset Tr 1.0936% 25/07/2037 1,749,502 124,740 0.43

Bayview Coml Asset Tr 1.2436% 25/07/2037 1,982,769 86,449 0.30

Bayview Finl Revolving Asset 4.6936% 28/05/2039 3,644,164 204,073 0.70



Bayview Finl Revolvng Asset Tr 4.0936% 28/05/2039 7,318,331 409,827 1.41

Bayview Finl Secs Co Llc 1.3436% 28/08/2044 1,421,877 188,114 0.65

Bayview Finl Secs Co Llc 1.5436% 28/08/2044 710,939 94,057 0.32

Bear Stearns Alt A Tr 2.0186% 25/04/2034 493,080 65,234 0.22

Bear Stearns Asst Bck Secs I 1.4936% 25/11/2034 222,070 29,380 0.10

Bear Stearns Inc 4.82922% 25/10/2025 199,715 166,213 0.57

C Bass Cbo V Ltd 1.1236% 25/01/2035 186,993 10,472 0.04

C Bass Cbo V Ltd 7.469% 22/09/2036 1,421,973 1,251,336 4.32

C Bass Cbo XI Ltd 3.24625% 15/09/2039 741,000 0 0.00



40



Value


assets


Cederwoods Ltd 0.8936% 25/02/2052 7,080,358 138,067 0.48

Chase Funding Mortgage Loan 2.1386% 25/11/2032 1,150,376 152,195 0.52

Citigroup Funding Mortgage Loan Trust 1.8936% 25/12/2033 2,500,000 1,589,000 5.49

Citigroup Funding Mortgage Loan Trust 2.3186% 25/11/2034 666,767 37,339 0.13

Citigroup Funding Mortgage Loan Trust B1 1.933767% 25/08/2035 953,088 203,462 0.70

Citigroup Funding Mortgage Loan Trust B2 1.933767% 25/08/2035 264,945 5,431 0.02

Conseco Fin Home Equity LN Tr B1 5.5283% 15/05/2033 503,698 28,207 0.10

Conseco Fin Home Equity LN Tr M1 2.0283% 15/05/2033 897,784 570,631 1.97

Conseco Fin Securitizations 5.5283% 15/04/2032 295,009 16,845 0.06

Conseco Fin Securitizations Co 3.0283% 15/04/2032 722,622 95,603 0.33

Crédit Suisse First Boston Mortgage 2.54264% 25/11/2032 103,877 44,892 0.15

Crédit Suisse First Boston Mortgage 2.58426% 01/01/2033 159,267 101,230 0.35

Crédit Suisse First Boston Mtg 3.7936% 25/08/2033 14,849 832 0.00

Crédit Suisse First Boston Mtg 4.0436% 25/06/2033 325,950 18,253 0.06

Cwabs Inc 1.1436% 25/04/2036 3,000,000 168,000 0.58

Cwabs Inc 1.3936% 25/06/2035 2,080,000 116,480 0.40

Cwabs Inc 1.9936% 25/11/2033 150,938 8,453 0.03

Cwabs Inc 2.0936% 25/01/2034 428,703 24,007 0.08

Cwabs Inc 2.6936% 25/10/2033 1,173,964 65,742 0.23

Cwabs Inc 2.7936% 25/10/2034 613,760 34,371 0.12

Cwabs Inc 2.9186% 25/07/2033 537,884 30,122 0.10

Cwabs Inc 2.9186% 25/12/2033 518,714 29,048 0.10

Cwabs Inc 3.0686% 25/09/2033 60,655 3,397 0.01

Cwabs Inc 4.8% 25/05/2032 38,215 36,029 0.12

Cwalt Inc 1.3936% 25/08/2034 3,610,080 202,164 0.70


Value


assets


Cwalt Inc 2.0436% 25/02/2035 644,529 36,094 0.12

Cwalt Inc 2.40722% 25/06/2034 999,444 55,969 0.19

Cwalt Inc 6C 2.1436% 25/05/2034 1,021,612 57,210 0.20

Cwalt Inc J9 2.1436% 25/10/2034 304,370 17,045 0.06

Empire Fdg Home Ln Owner Tr 7.46% 25/06/2024 336,729 34 0.00



Fed Hm Ln Owner Tr 7.81% 11/09/2023 4,840 0 0.00

Fieldstone Mortgage Investment Trust 2.8436% 25/10/2035 1,430,000 80,080 0.28

Finance America Mortgage Loan Trust 2.3936% 25/08/2034 274,319 15,362 0.05

First Nationwide Trust 2.5436% 25/08/2032 188,259 24,907 0.09

First Plus Home LN Owner Trust 7.93% 10/04/2023 104,561 10 0.00

First Republic Mortgage Loan Trust 0.9783% 15/11/2030 170,904 114,914 0.40

First Republic Mortgage Loan Trust 1.3283% 15/11/2032 253,583 177,967 0.61

Firstplus Global Issuance 7.69% 11/09/2023 250,586 25 0.00

Firstplus Global Issuance 9% 10/12/2024 459,729 46 0.00

Firstplus Global Issuance Co 7.63% 10/01/2024 272,468 27 0.00




Firstplus Golbal Issuance Co 9.02% 11/09/2023 20,312 2 0.00

Firstplus Home Ln Owner Tr 7.32% 10/11/2023 82,302 8 0.00







41



Value


assets




GS Mtg Secs Corp 1.1936% 25/12/2034 336,012 18,817 0.06

GS Mtg Secs Corp 1.5436% 25/03/2035 1,725,000 96,600 0.33

GS Mtg Secs Corp 4.7186% 25/08/2033 119,357 6,684 0.02

GS Mtg Secs Corp 5.08368% 25/06/2034 1,825,651 102,236 0.35

Harborview Mortgage Loan Trust 1.2146% 19/02/2034 687,220 38,484 0.13

Harborview Mortgage Loan Trust 1.43485% 20/06/2035 1,317,071 73,756 0.25

Homebanc Mortgage Trust 1.0936% 25/03/2036 768,925 101,729 0.35

Homebanc Mortgage Trust 2.0186% 25/08/2029 259,458 14,530 0.05

Homestar Mortgage Acceptance 1.9436% 25/06/2034 773,593 43,321 0.15

Impac Cmb Tr 2.2436% 25/09/2037 1,065,814 141,007 0.49

Impac Cmb Tr 4.7936% 25/10/2033 335,775 18,803 0.06

Irwin Whole Ln Home Equity Tr 3.2936% 25/01/2035 241,515 31,952 0.11

Irwin Whole Ln Home Equity Tr 3.2936% 25/11/2032 374,576 49,556 0.17

Keystone Owner Tr 7.91% 25/01/2029 815,803 45,685 0.16

Long Beach Mortgage Loan Trust 1.7936% 25/03/2034 289,822 38,343 0.13






Master Adj Rate Mortgage Trust 2.0436% 25/03/2034 2,164,760 121,227 0.42

Mellon Residential Fdg Corp 1.5283% 15/08/2032 213,559 132,448 0.46

Mellon Residential Fdg Corp 2.57618% 15/08/2032 273,793 168,744 0.58

Mellon Residential Fdg Corp 2.616% 15/06/2030 1,228,913 918,378 3.17

Morgan Stanley Abs Cap I 1.5436% 25/09/2034 395,760 22,163 0.08


Value


assets


Morgan Stanley Abs Cap I 3.3686% 25/03/2034 198,798 11,133 0.04

Morgan Stanley Abs Cap I Inc 5.1686% 27/12/2032 320,812 17,966 0.06

Morgan Stanley Dean Witter Cap I Tr 3.70722% 25/10/2032 200,408 11,223 0.04

New Centy Home Equity Ln Tr 2.7686% 25/11/2033 207,808 27,493 0.09

New Centy Home Equity Ln Tr 3.0236% 25/10/2033 297,261 39,328 0.14

Newcastle Cdo Viii1 Ltd 1.0436% 25/11/2052 11,250,000 1,800,000 6.22

Nomura Asset Accep Corp 1.4436% 25/11/2034 457,101 25,598 0.09

Nomura Asset Accep Corp 1.6436% 25/11/2034 30,384 3 0.00

Novastar Home Equity Ln Tr 3.0686% 25/09/2033 884,846 117,065 0.40

Novastar Mtg Fdg Tr 0.8836% 25/01/2036 2,000,000 112,000 0.39

Novastar Mtg Fdg Tr 3.2936% 25/12/2033 193,295 10,825 0.04

Option One Mortgage Loan Trust 0.9836% 25/05/2035 6,500,000 364,000 1.25

Option One Mortgage Loan Trust 2.9936% 25/05/2034 260,618 14,595 0.05



Resi Fin Ltd Partnership 1.9763% 10/02/2036 852,562 563,884 1.94

Residential Funding Sec Corp 2.7936% 25/07/2041 1,329,285 175,864 0.61

Resix Fin Ltd 15.7763% 10/03/2035 1,123,054 1,190,549 4.11

Resix Fin Ltd 21.7763% 10/03/2035 574,005 643,115 2.22

Saybrook Pt Cbo Ltd 0.98611% 25/02/2031 424,442 101,866 0.35

Semt B3 1.627351% 20/04/2033 636,646 127,329 0.44

Sequoia Mortgage Trust 1.33485% 20/02/2030 585,390 21,074 0.07

Sequoia Mortgage Trust 1.603051% 20/09/2032 356,828 39,251 0.14

Sequoia Mortgage Trust 11 1.607715% 20/10/2033 565,366 180,917 0.62

Structured Adj Rate Mtg Ln Tr 1.3936% 25/09/2034 1,238,494 69,356 0.24

Structured Adj Rate Mtg Ln Tr 2.1436% 25/09/2034 55,083 6 0.00

Structured Asset Invt Ln Tr 4.7936% 25/10/2033 28,579 1,600 0.01



42



Value


assets


Structured Asset Invt Ln Tr BC12 2.9186% 25/11/2033 173,103 9,694 0.03

Structured Asset Invt Ln Tr BC13 2.9186% 25/11/2033 165,949 9,293 0.03

Structured Asset Mortgage Investment 1.4846% 19/03/2034 1,486,130 196,615 0.68

Structured Asset Mortgage Investment 1.4846% 19/10/2034 587,634 77,744 0.27

Structured Asset Secs Corp 1.2436% 25/04/2034 492,163 65,113 0.22





Structured Asset Secs Corp 5.16% 25/03/2034 4,356,955 576,425 1.99

Structured Mtg Ln Tr 1.3936% 25/10/2034 942,397 52,774 0.18

Terwin Mortgage Trust 1.7436% 25/07/2034 330,115 43,674 0.15

Terwin Mortgage Trust 2.6436% 25/07/2034 181,563 10,168 0.04

Washington Mutual Mortgage Pass Through 1.40834% 25/11/2042 104,862 21,514 0.07




Value


assets



Wells Fargo Home Equity Asset 1.4436% 25/11/2035 923,000 51,688 0.18

Wells Fargo Mortgage Backed Secs Tr 2.70921% 25/07/2034 274,049 6,577 0.02

26,889,757 92.70




Other Net Assets 306,473 1.06




43

% of net assets

Mortgage and Asset Backed Securities 92.70

92.70


Schedule of Investments and Other Net Assets as at 31 December 2012 (in EUR)

44



Value


assets


CHF Bonds

Matterhorn Mobile SA 15/05/2019 625,000 527,760 0.16

Sunrise Communications 5.625% 31/12/2017 867,000 749,559 0.23

Sunrise Communications 7% 31/12/2017 2,383,000 2,137,578 0.65

3,414,897 1.04

EUR Bonds

Abengoa SA 9.625% 25/02/2015 2,400,000 2,547,840 0.78

AEM SpA 4.875% 30/10/2013 1,025,000 1,053,712 0.32

Agrokor DD 10% 07/12/2016 2,906,000 3,218,395 0.98

Amer Intl Grp 4.375% 26/04/2016 1,000,000 1,082,880 0.33

ArcelorMittal 8.25% 03/06/2013 275,000 282,419 0.09

Arcelormittal 9.375% 03/06/2016 1,850,000 2,246,353 0.69

Ardagh Glass Finance 9.25% 01/07/2016 1,700,000 1,843,650 0.56

Ardagh Packaging Finance 7.375% 15/10/2017 1,625,000 1,781,812 0.55

ASIF III (Jersey) Ltd 4.75% 11/09/2013 300,000 307,720 0.09

Assicurazioni Generali 4.875% 11/11/2014 500,000 529,555 0.16

Barclays Bank Plc 6% 23/01/2018 2,250,000 2,557,465 0.78

Beverage Packaging Holding 8% 15/12/2016 2,600,000 2,642,120 0.81

Bite Finance Intl BV Regs 4.926% 15/03/2014 2,816,000 2,731,520 0.84

Bombardier Inc 7.25% 15/11/2016 2,050,000 2,162,750 0.66

Bormioli Rocco Holdings SA Regs 10% 01/08/2018 1,675,000 1,783,875 0.55

Cablecom Luxembourg SCA REGS 8% 01/11/2016 300,000 311,430 0.10

Calcipar SA 2.75% 01/07/2014 1,891,000 1,872,090 0.57

Carlson Wagonlit BV 7.5% 15/06/2019 1,270,000 1,362,075 0.42

Central European Media Enterprises Ltd Regs 11.625% 15/09/2016 1,195,000 1,263,712 0.39



Value


assets

EUR Bonds (continued)

Citigroup Inc INTL 4.75% 12/11/2013 300,000 310,203 0.09

Conti-Gummi Finance BV REGS 6.5% 15/01/2016 1,198,000 1,283,663 0.39

Conti-Gummi Finance BV Regs 7.125% 15/10/2018 770,000 824,936 0.25

Conti-Gummi Finance BV REGS 8.5% 15/07/2015 550,000 595,048 0.18

Convatec Healthcare 7.375% 15/12/2017 2,000,000 2,170,000 0.66

Credit Agricole SA 5.971% 01/02/2018 850,000 964,991 0.30

CRH Finance BV EMTN 7.375% 28/05/2014 200,000 217,989 0.07

Crown European Holdings SA Regs 7.125% 15/08/2018 3,000,000 3,307,500 1.01

Cyfrowy Polsat Finance 7.125% 20/05/2018 1,600,000 1,758,056 0.54

Danske Bank AS 6% 20/03/2016 700,000 706,650 0.22

eAccess Ltd 8.375% 01/04/2018 1,997,000 2,251,618 0.69

Eco-Bat Finance Plc 7.75% 15/02/2017 2,020,000 2,141,200 0.66

EDP Finance 4.625% 13/06/2016 1,500,000 1,549,282 0.47

Faurecia Emtn 9.375% 15/12/2016 831,000 968,780 0.30

FCE Bank Plc EMTN 7.25% 15/07/2013 100,000 103,230 0.03

Fiat Finance & Trade SA 6.625% 15/02/2013 700,000 704,200 0.22

Fiat Finance & Trade SA EMTN 6.125% 08/07/2014 1,620,000 1,673,363 0.51

Fiat Finance & Trade SA Gmtn 6.375% 01/04/2016 1,080,000 1,109,868 0.34

Food Corp Ltd 8.75% 01/03/2018 1,550,000 1,722,438 0.53

Fortis Bank SA 5.757% 04/10/2017 1,800,000 2,029,617 0.62

Franz Haniel & CIE Gmbh EMTN 6.75% 23/10/2014 530,000 580,414 0.18

Freenet AG 7.125% 20/04/2016 2,060,000 2,328,354 0.71

Fresenius Finance 5.5% 31/01/2016 600,000 624,000 0.19

Fresenius Fresenius Medical Care US Company 8.75% 15/07/2015 1,372,000 1,614,844 0.49

Gas Natural Capital Markets 5.25% 09/07/2014 700,000 739,028 0.23

Gazprom SA (Gaz Capital SA) 5.875% 06/01/2015 1,050,000 1,149,592 0.35

Gazprom SA 6.605% 13/02/2018 900,000 1,074,123 0.33



45



Value


assets


GCL Poly Energy Holdings 9.375% 15/04/2018 1,000,000 1,077,500 0.33

Gecina SA Emtn 4.5% 19/09/2014 550,000 582,015 0.18

Geo Travel Finance 10.375% 05/01/2019 1,500,000 1,545,000 0.47

GMAC Inc 7.5% 21/04/2015 1,250,000 1,372,188 0.42

Goldman Sachs Group Inc 5.125% 24/04/2013 300,000 304,612 0.09

Goodyear Tire & Rubber 6.75% 15/04/2019 643,000 694,440 0.21

Gruppo EditorialeL'Espresso S.P.A 5.125% 27/10/2014 594,000 617,919 0.19

Havas SA 5.5% 04/11/2014 1,000,000 1,069,880 0.33

HBos 4.875% 20/03/2015 4,075,000 4,228,955 1.30

HeidelbergCement AG 7.5% 31/10/2014 500,000 550,750 0.17

HeidelbergCement Finance 8% 31/01/2017 2,660,000 3,140,662 0.96

HeidelbergCement Finance BV EMTN 6.75% 15/12/2015 1,452,000 1,627,889 0.50

Heidelberger Druckmaschinen 9.25% 15/04/2018 780,000 686,400 0.21

Hertz Hldgs Netherlands BV Regs 8.5% 31/07/2015 2,730,000 2,948,400 0.90

Iliad SA 4.875% 01/06/2016 700,000 754,711 0.23

Ineos Finance Plc REGS 9.25% 15/05/2015 3,068,000 3,307,304 1.01

Ineos Group Holdings Plc REGS 7.875% 15/02/2016 1,225,000 1,217,650 0.37

Interxion Holding NV 9.5% 12/02/2017 2,874,000 3,166,343 0.97

Intesa Sanpaolo SpA 4.875% 07/10/2015 2,700,000 2,857,113 0.87

Intl Personal Fin Plc 11.5% 06/08/2015 2,172,000 2,476,080 0.76

Iron Mountain Inc 6.75% 15/10/2018 2,634,000 2,693,265 0.82

ISS Financing Plc 8.875% 15/05/2016 1,500,000 1,554,000 0.48

Kabel Deutsch Holding AG 6.5% 31/07/2017 1,000,000 1,095,000 0.34

Kabel Deutschland Gmbh 6.5% 29/06/2018 3,324,000 3,602,385 1.10

Kerling Plc 10.625% 01/02/2017 1,756,000 1,694,540 0.52

Kuka AG 8.75% 15/11/2017 1,400,000 1,602,300 0.49

Lafarge SA 8.875% 27/05/2014 950,000 1,041,418 0.32

Lecta Sa 8.875% 15/05/2019 1,210,000 1,303,775 0.40

Levi Strauss & Co 7.75% 15/05/2018 2,050,000 2,214,000 0.68


Value


assets


Lottomatica SpA 5.375% 05/12/2016 500,000 552,028 0.17

Mapfre SA 5.125% 16/11/2015 2,300,000 2,407,249 0.74

Mark IV Europe Lux SCA 8.875% 15/12/2017 795,600 857,259 0.26

Matterhorn Mobile SA 15/05/2019 2,100,000 2,150,322 0.66

Merrill Lynch & Co 4.625% 02/10/2013 300,000 307,968 0.09

Metsa Board Oyj 8.75% 01/04/2013 940,000 955,510 0.29

Mol Magyar Olajes Gazipari Rt 3.875% 05/10/2015 800,000 820,944 0.25

Morgan Stanley 3.75% 01/03/2013 200,000 201,110 0.06

Morgan Stanley 4.5% 29/10/2014 1,150,000 1,214,716 0.37

Nara Cable Funding Limited 8.875% 01/12/2018 1,650,000 1,683,000 0.51

New World Resources NV REGS 7.375% 15/05/2015 2,100,000 2,152,500 0.66

New World Resources NV Regs 7.875% 01/05/2018 1,442,000 1,497,517 0.46

Nexans SA 5.75% 05/02/2017 1,450,000 1,555,125 0.48

Nordenia Hldgs GmbH Regs 9.75% 15/07/2017 2,300,000 2,665,125 0.82

Numericable Finance 12.375% 15/02/2019 920,000 1,092,500 0.33

Numericable Finance 15/10/2018 1,100,000 1,133,000 0.35

Obrascon Huarte Lain SA 7.375% 28/04/2015 2,000,000 2,162,500 0.66

OI European Group 6.875% 31/03/2017 2,036,000 2,117,440 0.65

Ontex IV 7.5% 15/04/2018 2,000,000 2,140,000 0.65

Orion Engineered Carbons 10% 15/06/2018 1,980,000 2,202,750 0.67

Oxea Finance 9.625% 15/07/2017 3,643,844 4,026,448 1.23

Peri GmbH 5% 06/08/2015 2,600,000 2,737,816 0.84

Peugeot SA 4% 28/10/2013 775,000 783,240 0.24

Peugeot SA 8.375% 15/07/2014 650,000 702,122 0.21

Phoenix PIB Finance BV REGS 9.625% 15/07/2014 2,000,000 2,206,160 0.68

Piaggio & Co SpA 7% 12/01/2016 1,600,000 1,719,000 0.53

Picard Bondco 9% 10/01/2018 2,580,000 2,881,860 0.88

Polish Telev Holding BV Regs 11.25% 15/05/2017 1,441,000 1,577,895 0.48

Prologis Intl Funding 5.875% 23/10/2014 1,946,000 2,097,983 0.64



46



Value


assets


Rallye SA 5.875% 24/03/2014 2,500,000 2,613,550 0.80

Rallye SA 7.625% 04/11/2016 900,000 1,034,550 0.32

RCI Banque SA 4% 11/07/2013 300,000 304,647 0.09

Renault S.A. 4.625% 25/05/2016 1,750,000 1,834,294 0.56

Renault SA 6% 13/10/2014 800,000 853,344 0.26

Rexel SA 8.25% 15/12/2016 2,519,000 2,768,381 0.85

Royal Carribean Cruises Ltd 5.625% 27/01/2014 1,975,000 2,054,000 0.63

Safilo Capital International SA REGS 9.625% 15/05/2013 90,000 90,271 0.03

Santan Consumer Finance 3.25% 20/06/2014 600,000 604,662 0.19

Santander International Debt SA Unipersonal EMTN 2.875% 20/09/2013 450,000 453,825 0.14

Santander Intl Debt SA 4.25% 04/07/2014 1,400,000 1,428,581 0.44

Schaeffler Finance BV 7.75% 15/02/2017 2,700,000 3,024,027 0.93

SGL Carbon Se 1% 16/05/2015 935,000 930,325 0.28

Smurfit Kappa Acquisitions REGS 7.25% 15/11/2017 3,110,000 3,366,575 1.03

SNS Bank NV Emtn 3.625% 18/07/2013 700,000 707,161 0.22

Societe Des Autoroutes Paris-Rhin-Rhone EMTN 7.5% 12/01/2015 200,000 224,805 0.07

Societe Generale Emtn 6.625% 27/04/2015 1,000,000 1,097,839 0.34

SPCM SA 5.5% 15/06/2020 650,000 689,000 0.21

Styrolution Group GmbH 7.625% 15/05/2016 1,250,000 1,306,250 0.40

Techem GmbH 6.125% 10/01/2019 1,100,000 1,185,250 0.36

Telecom Italia SpA 6.75% 21/03/2013 300,000 303,572 0.09

Telefonica Emisiones SAU 3.406% 24/03/2015 550,000 569,278 0.17

Tereos Europe SA 6.375% 15/04/2014 3,337,000 3,541,391 1.08

TRW Automotive Inc REGS 6.375% 15/03/2014 1,535,000 1,611,750 0.49

TVN Finance Corp Iii Ab 7.875% 15/11/2018 220,000 234,850 0.07

UBS AG 4.5% 16/09/2019 2,700,000 2,776,424 0.85

Unione di Banche Italiane SCPA EMTN 3.875% 28/02/2013 650,000 652,054 0.20

Unitymedia GmbH 9.625% 01/12/2019 3,330,000 3,744,585 1.15


Value


assets


UPC Holding 8.375% 15/08/2020 1,000,000 1,124,000 0.34

UPC Holding BV Regs 9.75% 15/04/2018 950,000 1,021,250 0.31

Viridian Group Fundco II 11.125% 01/04/2017 750,000 787,500 0.24

Wendel 4.875% 04/11/2014 350,000 366,289 0.11

Wendel 4.875% 21/09/2015 1,100,000 1,160,445 0.36

Wendel 4.875% 26/05/2016 250,000 265,250 0.08

Wind Acquisition Fin SA 11.75% 15/07/2017 1,700,000 1,793,500 0.55

Ziggo Bond Company BV 8% 15/05/2018 2,060,000 2,276,300 0.70

Ziggo Fin B.V. 6.125% 15/11/2017 973,000 1,044,759 0.32

216,671,415 66.31

GBP Bonds

Allied Domecq Financial Services Plc EMTN 6.625% 12/06/2014 300,000 391,342 0.12

Aviva Plc 9.5% 20/06/2016 900,000 1,358,702 0.42


Boparan Finance Plc 9.875% 30/04/2018 2,000,000 2,773,668 0.85

Cable & Wireless Intl Fin NV 8.625% 25/03/2019 880,000 1,204,285 0.37

Care UK Health & Social Care Newco Limited 9.75% 01/08/2017 1,400,000 1,838,930 0.56

Countrywide Holdings Ltd 10% 08/05/2018 380,000 475,922 0.15

Daily Mail & General Trust Plc 5.75% 07/12/2018 750,000 975,349 0.30

Daily Mail & General Trust Plc 7.5% 29/03/2013 270,000 334,116 0.10

DFS Furniture Holdings Plc 9.75% 15/07/2017 2,036,000 2,699,207 0.83

Dixons Retail Plc 8.75% 08/03/2015 1,250,000 1,659,466 0.51

Enterprise Inns Plc 6% 03/02/2014 385,000 475,128 0.15

Enterprise Inns Plc 6.5% 06/12/2018 720,000 856,880 0.26

Exova 10.5% 15/10/2018 1,645,000 2,100,443 0.64

FCE Bank Plc 4.825% 15/02/2017 500,000 660,759 0.20

FCE Bank Plc EMTN 5.125% 16/11/2015 1,450,000 1,913,571 0.59

Gala Group Finance Plc 8.875% 09/01/2018 1,000,000 1,301,302 0.40



47



Value


assets

GBP Bonds (continued)

Gaz Capital SA EMTN 6.58% 31/10/2013 300,000 378,859 0.12

Goldman Sachs Group Inc 5.25% 15/12/2015 759,000 1,007,850 0.31

Infinis Plc 9.125% 15/12/2014 1,830,000 2,275,172 0.70

Iron Mountain Inc 7.25% 15/04/2014 184,000 225,669 0.07

ITV Plc 7.375% 05/01/2017 1,526,000 2,070,757 0.63

JP Morgan Chase & Co 30/05/2017 2,550,000 2,906,102 0.89

Ladbrokes Group Fin Plc 7.625% 05/03/2017 2,650,000 3,642,731 1.11

Lafarge SA Emtn 10% 30/05/2017 1,275,000 1,871,147 0.57

Lloyds TSB Bank Plc 6.625% 30/03/2015 210,000 276,249 0.08

Matalan Finance Ltd 8.875% 29/04/2016 2,310,000 2,931,917 0.90

Morgan Stanley 5.75% 14/02/2017 440,000 594,067 0.18

National Express Group 6.25% 13/01/2017 600,000 818,785 0.25

National Westminster Bank 7.875% 09/09/2015 2,200,000 2,967,964 0.91

Pipe Holdings Plc Regs 9.5% 01/11/2015 1,090,000 1,411,760 0.43

QBE Insurance Group Ltd 6.125% 28/09/2015 1,300,000 1,752,681 0.54

Santander Uk Plc 6.5% 09/09/2015 475,000 626,139 0.19

Smiths Group Plc 7.25% 30/06/2016 74,000 104,482 0.03

Spirit Issuer 6.582% 28/12/2027 435,000 491,654 0.15

Taylor Wimpey Plc 10.375% 31/12/2015 1,906,000 2,596,728 0.79

Telecom Italia SpA 5.625% 29/12/2015 1,200,000 1,558,132 0.48

Telecom Italia SpA 7.375% 15/12/2017 400,000 555,694 0.17

UBM Plc 6.5% 23/11/2016 630,000 877,469 0.27

UPM Kymmene Corp 6.625% 23/01/2017 1,060,000 1,395,784 0.43

Virgin Media Fin Plc 8.875% 15/10/2019 2,968,000 4,128,818 1.26

Virgin Media Secured Fin 7% 15/01/2018 280,000 371,217 0.11

William Hill Plc Emtn 7.125% 11/11/2016 2,851,000 3,866,775 1.18

64,432,127 19.72


Value


assets

USD Bonds

FMG Resources August 2006 Pty Ltd 144A 7% 01/11/2015 770,000 614,439 0.19

Fresenius Fresenius Medical Care US Company 9% 15/07/2015 800,000 700,400 0.21

Nord Anglia Education Uk 10.25% 01/04/2017 2,500,000 2,098,932 0.64

3,413,771 1.04


287,932,210 88.11


EUR Bonds

Boardriders SA REGS 8.875% 15/12/2017 1,310,000 1,382,050 0.42

1,382,050 0.42

GBP Bonds

Spirit Issuer 5.86% 28/12/2021 1,075,000 1,215,007 0.37

1,215,007 0.37




Bank overdraft (1,044,082) (0.32)





48

% of net assets

Banks 44.14 Financial Services 5.23 Communications 3.30 Internet, Software and IT Services 2.50 Containers and Packaging 2.48 Media 2.38 Building Materials and Products 2.35 Food and Beverages 2.18 Commercial Services and Supplies 1.86 Holding Companies 1.64 Chemicals 1.59 Retail 1.53 Automobiles 1.50 Paper and Forest Products 1.46 Engineering and Construction 1.44 Entertainment 1.35 Energy and Water Supply 1.16 Hotels, Restaurants and Leisure 1.16 Textiles, Garments and Leather Goods 1.10 Oil and Gas 0.94 Metals and Mining 0.85 Technology 0.85 Real Estate 0.82 Electrical Appliances and Components 0.80 Miscellaneous Manufacture 0.69 Consumer, Cyclical 0.64 Healthcare 0.59 Insurance 0.58 Metal Fabricate and Hardware 0.57 Household Products and Wares 0.55 Mortgage and Asset Backed Securities 0.37 Mechanical Engineering and Industrial Equipments 0.21 Basic Materials 0.09

88.90


Notes to the Financial Statements as at 31 December 2012

49

Note 1 General

a) Fund’s details

AXA IM Fixed Income Investment Strategies (the “Fund”) has been established in Luxembourg as a mutual investment fund (“Fonds Commun de Placement”) with separate Sub-Funds each constituting a separate portfolio of assets and liabilities. The Fund was created for an indefinite term in Luxembourg on 12 March 2004. The Fund is registered pursuant to Part I of the Law of 17 December 2010 on undertakings for collective investment.

The Management Company (AXA Funds Management S.A.) was incorporated on 21 November 1989 for an undetermined period of time and is registered in the register of commerce and companies of Luxembourg under the number B-32.223. Its Articles of Association were published in the “Mémorial” of 26 January 1990. The latest Consolidated Articles of Association were deposited in the register of commerce and companies of Luxembourg on 26 May 2006. The VAT number is LU 197 76 305.

The Management Company is registered pursuant to chapter 15 of the law of 17 December 2010.

The Board of Directors of the Management Company has confirmed its adherence to the ALFI's Code of conduct and to the standards of corporate governance described in this code.

b) 2012 Fund’s Summary

During the year ended 31 December 2012, classes of units have been launched in the following Sub-Funds:

• AXA IM Fixed Income Investment Strategies - US Corporate Bonds

- Class « A » --- Capitalisation in CHF Hedged - Class « E » --- Capitalisation in USD - Class « F » --- Capitalisation in CHF Hedged - Class « I » --- Capitalisation in EUR Hedged - Class « I » --- Distribution in USD

• AXA IM Fixed Income Investment Strategies - Europe Short Duration High Yield

- Class « B » --- Capitalisation CHF Hedged - Class « B » --- Capitalisation USD Hedged - Class « F » --- Capitalisation USD Hedged - Class « B » --- Distribution in EUR

c) Sub-Funds list

As at 31 December 2012, the Fund consists of 4 active Sub-Funds:

Sub-Funds Currency

AXA IM Fixed Income Investment Strategies - US Short Duration High Yield USDAXA IM Fixed Income Investment Strategies - US Corporate Bonds USDAXA IM Fixed Income Investment Strategies - US Libor Plus USDAXA IM Fixed Income Investment Strategies - Europe Short Duration High Yield EUR



50

Note 1 General (continued)

d) Unit Classes list

The classes of units presented below correspond to the type of classes that may be available for Sub-Funds of the umbrella. The section “Statistics – Number of Units and Net Asset Value per Unit” indicates for each Sub-Fund the available classes of units on the reporting date. The Distribution and Capitalisation Units are as follows:

- Class « A » are dedicated for large Institutional Investors, - Class « B » are dedicated for smaller Institutional Investors, - Class « E » are dedicated for all investors, - Class « F » are dedicated for all investors, - Class « I » are dedicated for all other Institutional Investors, including funds of funds, - Class « M » are dedicated for AXA Investment Managers or its subsidiaries.

The underlying investment objective of the redex class of units is, as for the other unit classes of the Sub-Fund, to achieve the investment objective of the Sub-Fund, while, only in the case of the relevant unit class to mitigate the Fund’s exposure to an increase or decrease of interest rates curves. Such an overlay strategy will be managed through the tracking of listed derivatives.

e) Distribution

The distribution fees are recorded under the caption “Distribution fees” within the Statement of Operations and Changes in Net Assets. They are calculated as a percentage of the net asset value per unit class.

As at 31 December 2012, the maximum distribution fees applied are the following:

Class A Class B Class E Class F Class I Class M

AXA IM Fixed Income Investment Strategies – US Short Duration High Yield

0.00% 0.00% 0.35% 0.00% 0.00% -

AXA IM Fixed Income Investment Strategies – US Corporate Bonds

0.00% - 0.50% 0.00% 0.00% 0.00%

AXA IM Fixed Income Investment Strategies – US Libor Plus

0.00% - - - 0.00% 0.00%

AXA IM Fixed Income Investment Strategies – Europe Short Duration High Yield

0.00% 0.00% 0.35% 0.00% - 0.00%

Note 2 Significant Accounting Policies

a) Presentation of the Financial Statements

The financial statements are prepared in accordance with Luxembourg regulations relating to undertakings for collective investment.

b) Foreign Currency Translation

The accounting records and the financial statements are denominated in the reference currency of the relevant Sub-Fund.



51

Note 2 Significant Accounting Policies (continued)

b) Foreign Currency Translation (continued)

Values expressed in a currency other than the reference currency of the Sub-Fund are translated into the reference currency of the Sub-Fund at the average of the last available buying and selling price for such currency.

Assets and Liabilities denominated in other currencies are translated into the respective currency of the portfolio at the rate of exchange at each balance sheet date.

The exchange rates applied on 31 December 2012 for the Net Asset Value calculation are as follows:

1 USD = 0.913200 CHF 1 USD = 0.756370 EUR 1 USD = 0.619020 GBP 1 USD = 5.586350 NOK 1 USD = 6.510800 SEK

c) Combined Figures

The combined Statement of Net Assets and the combined Statement of Operations and Changes in Net Assets are expressed in USD and are presented for information purposes only.

d) Valuation of Investments

The assets of the Fund will be valued as follows:

The value of any cash on hand or on deposit, bills and demand notes and accounts receivable, prepaid expenses, cash dividends and interest declared or accrued as aforesaid and not yet received is deemed to be the full amount thereof, unless in any case the same is unlikely to be paid or received in full, in which case the value thereof is arrived at after making such discount as may be considered appropriate in such case to reflect the true value thereof.

Investments listed or traded on any regulated market, stock exchange in another state or other regulated market, are valued at the closing price on such markets. If the investments are listed or traded on several markets, the closing price at the market, which constitutes the main market for such investments, will be determining.

Investments not listed or traded on any regulated market, stock exchange in another state or other regulated market are valued at their last available market price.

The financial statements are presented on the basis of the Net Asset Value calculated on 31 December 2012 with securities valued on 28 December 2012 (29 and 30 December 2012 being non business days). If the Fund had calculated the net asset value solely with a view to financial reporting, the market prices used to value the investment portfolio would have been the closing prices on 31 December 2012. In that perspective, the net asset value of the following Sub-Fund would have been different by the following percentage:

- AXA IM Fixed Income Investment Strategies - US Libor Plus: -0.54%

The net asset value of the other Sub-Funds would not have been significantly different.



52


d) Valuation of Investments (continued)

The value of money market instruments not listed or dealt in on any regulated market, stock exchange in another state or any other regulated market and with remaining maturity of less than 12 months and of more than 90 days is deemed to be the nominal value thereof, increased by any interest accrued thereon. Money market instruments with a remaining maturity of 90 days or less are valued by the amortised cost method, which approximates market value. These amortisation/accretion interests are disclosed in interests on investment portfolio.

In managing the daily priced funds, the Board of Directors’ principle is to ensure that portfolios are appropriately valued to give equal treatment to Unitholders.

In this context, the Board of Directors of the Management Company decided to close for subscriptions the net asset value of AXA IM Fixed Income Investment Strategies - US Libor Plus since 23 July 2007. Moreover, since 23 July 2007, the Board of Directors of the Management Company implemented a “Pricing methodology and Procedures” to address valuation concerns arising from current market and liquidity events relating to such asset classes/debt instruments included in certain Sub-Funds at year-end. Based on this “Pricing methodology and Procedures”, current fair valuation pricing policy allows to price assets on a daily basis, using various pricing sources such as ABX index performance, data vendors and/or brokers prices as well as marked-to-model valuations. Since 18 September 2009, the “Pricing methodology and Procedures” is partially adjusted extending the use of ABX prices in order to capture the effect of the rating downgrades. ABX Index is replacing Index modelling tool for the valuation of single B+ and lower rated assets, which is based on specific assumptions of yield and specific prepayment and default assumptions based on the historical collateral performance of the deal.

In 2012, the prices received from a large range of brokers, for certain investments of AXA IM Fixed Income Investment Strategies - US Libor Plus, significantly deviated from usual pricing sources used in the context of the “Pricing methodology and Procedures”, and therefore conducted the Board of Directors to reassess the pricing source used to fair value those investments. In this context, the Board of Directors decided to modify the pricing source of those investments from ABX to IDC. As at 31 December 2012, some investments of AXA IM Fixed Income Investment Strategies - US Libor Plus were priced using IDC source. Nevertheless, the Pricing methodology and Procedures remains, and such deviation from pricing sources are done on a case by case basis.

As at 31 December 2012, based on the “Pricing methodology and Procedures” implemented by the Board of Directors of the Management Company, fair value adjustments have been considered for AXA IM Fixed Income Investment Strategies - US Libor Plus on 88.43% of the net asset value of the Sub-Fund.

e) Acquisition Cost of Investments

The acquisition cost of Investments expressed in currencies other than the reference currency of the Sub-Fund is translated into the reference currency of the Sub-Fund on the basis of the exchange rates prevailing on the purchase date.

f) Realised Gains /(Losses) on Sales of Investments

Realised gain/(loss) on sales of Investments are determined on the basis of the average cost of the Investments sold.



53


g) Valuation of the Forward Foreign Exchange Contracts

Outstanding forward foreign exchange contracts are valued at the closing date using the forward rates of exchange applicable to the outstanding life of the contract. All unrealised appreciation and depreciation are included in the Statement of Net Assets.

h) Valuation of Financial Futures

Outstanding futures contracts are valued at the closing date using the last available market price of the instrument. All unrealised appreciation/(depreciation) are included in the Statement of Net Assets.

Note 3 Equalisation

Each Sub-Fund may follow the accounting practice of equalisation, to present the net undistributed income per unit from fluctuating solely by reason of purchases and redemptions of units. This is accomplished by maintaining an equalisation account for the Sub-Fund. The equalisation account is credited with that portion of the proceeds of purchased units representing the net undistributed income per unit of those units, and is debited with that portion of any redemption payment representing the net undistributed income per unit of the redeemed units.

Note 4 Taxation

The Fund is subject to Luxembourg law in respect of its tax status. Under legislation and regulations currently prevailing in Luxembourg, the Fund is subject to a capital tax on the net assets of each of its Sub-Funds at an annual rate of 0.05% for the assets related to units reserved for retail investors. This tax rate is reduced to 0.01% for the assets related to units reserved for institutional investors, calculated and payable quarterly on the basis of the value of the aggregate Net Value of the Sub-Fund or class at the end of the relevant quarter.

Note 5 Management Fees

The Management Company is entitled to receive, from the assets of the relevant Sub-Funds, a management fee in an amount to be specifically determined for each Sub-Fund or class of units. The annual management fee is calculated as a percentage of the Net Asset Value of each Sub-Fund. The details and the percentage of this fee, per class of units, are described in the Full and Simplified Prospectus and in the table here below. This fee is calculated and accrued daily and is payable monthly. The Management Company will remunerate the Investment Managers out of the management fee in accordance with the contracts signed with the Investment Managers.

As at 31 December 2012, the effective rates are the following:


AXA IM Fixed Income Investment Strategies – US Short Duration High Yield

Actual 0.45% 0.75% 1.00% 1.00% 1.00% -

Maximum 0.70% 0.75% 1.00% 1.00% 1.00% -

AXA IM Fixed Income Investment Strategies – US Corporate Bonds

Actual 0.30% - 0.75% 0.75% 0.50% -

Maximum 0.30% - 0.75% 0.75% 0.50% -



54

Note 5 Management Fees (continued)


AXA IM Fixed Income Investment Strategies – US Libor Plus

Actual 0.05% - - - 0.05% -

Maximum 0.20% - - - 0.35% -

AXA IM Fixed Income Investment Strategies – Europe Short Duration High Yield

Actual 0.45% 0.75% 1.00% 1.00% - -

Maximum 0.75% 0.75% 1.00% 1.00% - -

Note 6 Redex Fees

The Redex fees are payable to the Investment Manager in charge of the management of the Redex class and calculated as a percentage of the net assets of the relevant class.

The maximum annual fees linked to the reduction of the duration exposure of the Redex share classes applied is 0.050%.

Note 7 Hedging Fees

The Hedging fees are payable for executing hedging trades and maintaining currency hedging levels for the relevant share classes.

Note 8 Commissions of the Custodian, Registrar and Transfer Agent, Domiciliary, Administrative and Paying Agent

The Custodian fees are payable monthly and calculated on the basis of the Net Asset Value determined on the last Valuation Day of each month.

The Registrar and Transfer Agent as well as the Domiciliary, Administrative and Paying Agent are entitled to receive out of the net assets of all Sub-Funds a maximum fee of 0.06% per year, apart for Sub-Fund AXA IM Fixed Income Investment Strategies – US Corporate Bonds for which the fee amounts to 0.08%.

Note 9 Transaction Fees

The transaction fees are disclosed for each Sub-Fund in the Statement of Operations and Changes in Net Assets under the caption "Transaction fees". Those fees are detailed in the Additional Unaudited Appendix.

Note 10 Forward Foreign Exchange Contracts

As at 31 December 2012, the following contracts are outstanding:

AXA IM Fixed Income Investment Strategies - US Short Duration High Yield Amount purchased Amount sold Maturity date Unrealised appreciation/

(depreciation) in USD

Hedged share classes CHF 468,777,332 USD 506,484,834 20/03/2013 7,549,073 EUR 6,049,522,114 USD 7,987,314,077 20/03/2013 16,360,414 GBP 45,812,782 USD 73,720,659 20/03/2013 269,252 USD 1,145,407 CHF 1,060,065 20/03/2013 (16,998)USD 210,888,870 EUR 160,416,401 20/03/2013 (1,346,187)



55

Note 10 Forward Foreign Exchange Contracts (continued)

AXA IM Fixed Income Investment Strategies - US Short Duration High Yield (continued) Amount purchased Amount sold Maturity date Unrealised appreciation/


Hedged share classes (continued) USD 26,677,702 GBP 16,589,312 20/03/2013 (114,859)

22,700,695 Not allocated to a specific unit class

CHF 49,665 USD 54,196 03/01/2013 190 EUR 382,273 USD 503,625 02/01/2013 1,778 EUR 7,825,683 USD 10,358,857 31/12/2012 (12,515)GBP 503,114 USD 818,089 31/12/2012 (5,334)USD 660,799 CHF 602,715 31/12/2012 796 USD 385,186 CHF 352,985 03/01/2013 (1,350)USD 43,615,095 EUR 33,105,693 02/01/2013 (153,966)USD 43,739,834 EUR 33,043,615 31/12/2012 52,845 USD 81,030 GBP 50,076 02/01/2013 135

(117,421)Total 22,583,274

AXA IM Fixed Income Investment Strategies - US Corporate Bonds Amount purchased Amount sold Maturity date Unrealised appreciation/


Hedged share classes CHF 3,768,615 USD 4,071,215 20/03/2013 61,230 EUR 172,971,225 USD 226,328,282 20/03/2013 2,517,131 USD 104,763 CHF 97,339 20/03/2013 (1,974)USD 3,625,711 EUR 2,761,780 20/03/2013 (28,196)

2,548,191 Not allocated to a specific unit class

EUR 642,120 USD 845,961 02/01/2013 2,986 EUR 511 USD 676 31/12/2012 (1)USD 137,945 EUR 104,212 31/12/2012 166

3,151 Total 2,551,342

AXA IM Fixed Income Investment Strategies - US Libor Plus Amount purchased Amount sold Maturity date Unrealised appreciation/


Hedged share classes EUR 4,317,515 USD 5,651,259 20/03/2013 60,924 USD 551,732 EUR 420,504 20/03/2013 (4,605)

Total 56,319

AXA IM Fixed Income Investment Strategies - Europe Short Duration High Yield Amount purchased Amount sold Maturity date Unrealised appreciation/

(depreciation) in EUR

Hedged share classes CHF 1,960,704 EUR 1,619,190 20/03/2013 5,877 EUR 10,192 CHF 12,343 20/03/2013 (38)EUR 25,782 USD 33,728 20/03/2013 289 USD 1,438,955 EUR 1,098,967 20/03/2013 (11,343)

(5,215)



56

Note 10 Forward Foreign Exchange Contracts (continued)

AXA IM Fixed Income Investment Strategies - Europe Short Duration High Yield (continued) Amount purchased Amount sold Maturity date Unrealised appreciation/

(depreciation) in EUR

Not allocated to a specific unit class EUR 3,412,216 CHF 4,110,000 23/01/2013 7,467 EUR 73,039,401 GBP 58,950,000 23/01/2013 1,027,271 EUR 3,532,571 USD 4,514,000 23/01/2013 118,932

1,153,670 Total 1,148,455

Note 11 Futures

The unrealised appreciation/(depreciation) on futures is included in the Statement of Net Assets under the headings “Unrealised appreciation/(depreciation) on open futures contracts”.

AXA IM Fixed Income Investment Strategies - US Corporate Bonds Future type Description Ccy Quantity Commitment Unrealised

appreciation/(depreciation) in USD

Redex share classes Interest Rate 5YR US TREASURY NOTE FUTURES MAR13 XCBT

28/03/2013 USD (178) (22,142,922) (656)

Total (656)

Note 12 Changes in the Investment Portfolio

The Changes in the Investment Portfolio during the reporting year are available to the Unitholders at the address of the Custodian.

Note 13 Dividend Distribution

During the year ended 31 December 2012, the following interim dividends were paid:

Sub-Funds Currency Class Dividend per Unit

Ex-date Payment date

AXA IM Fixed Income Investment Strategies - US Short Duration High Yield EUR A Distribution Hedged 3.32 18/06/2012 20/06/2012

GBP A Distribution Hedged 4.50 18/06/2012 20/06/2012

USD A Distribution 3.58 18/06/2012 20/06/2012

EUR B Distribution Hedged 3.32 18/06/2012 20/06/2012

GBP B Distribution Hedged 3.32 18/06/2012 20/06/2012

USD B Distribution 3.70 18/06/2012 20/06/2012

EUR F Distribution Hedged 3.16 18/06/2012 20/06/2012

USD I Distribution 3.41 18/06/2012 20/06/2012

EUR A Distribution Hedged 3.04 17/12/2012 19/12/2012

GBP A Distribution Hedged 3.73 17/12/2012 19/12/2012


EUR B Distribution Hedged 3.03 17/12/2012 19/12/2012

GBP B Distribution Hedged 3.15 17/12/2012 19/12/2012

USD B Distribution 3.44 17/12/2012 19/12/2012

EUR F Distribution Hedged 2.89 17/12/2012 19/12/2012




57

Note 13 Dividend Distribution (continued)

Sub-Funds Currency Class Dividend per Unit

Ex-date Payment date

AXA IM Fixed Income Investment Strategies - US Corporate Bonds USD A Distribution 3.24 18/06/2012 20/06/2012



AXA IM Fixed Income Investment Strategies - US Libor Plus EUR A Distribution Hedged 0.43 19/03/2012 21/03/2012


EUR I Distribution Hedged 0.50 19/03/2012 21/03/2012














AXA IM Fixed Income Investment Strategies – Europe Short Duration High Yield EUR B Distribution 3.95 17/12/2012 19/12/2012

Note 14 Stock Lending

The Fund may lend positions of its securities portfolio to third parties. In general, lending may only be effected via recognised clearing houses, or through the intermediary of prime financial institutions that specialise in such activities and where collateral is received as guarantee.

The Sub-Funds for which securities are lent as at 31 December 2012 are:

% of net asset

Amount lent (In Sub-Funds currency)

Market value of the guarantee received

AXA IM Fixed Income Investment Strategies – US Short Duration High Yield 0.72% 96,711,542 102,464,166AXA IM Fixed Income Investment Strategies – US Corporate Bonds 0.14% 812,067 853,061AXA IM Fixed Income Investment Strategies – Europe Short Duration High Yield 6.72% 21,975,005 23,226,315


Additional Unaudited Appendix

58

TER (Total Expense Ratio)

Sub-Funds Calculated

TER (1)Theoretical

TER( 2) Ongoing

charges (3) Difference between

Ongoing charges andTER (4)


A Capitalisation EUR Hedged 0.55% 0.55% 0.55% 0.00%

A Capitalisation USD 0.53% 0.52% 0.52% 0.00%

A Distribution EUR Hedged 0.55% 0.55% 0.55% 0.00%

A Distribution GBP Hedged 0.56% 0.55% 0.55% 0.00%

A Distribution USD 0.53% 0.52% 0.52% 0.00%

B Capitalisation CHF Hedged 0.86% 0.85% 0.85% 0.00%

B Capitalisation EUR Hedged 0.86% 0.85% 0.85% 0.00%

B Capitalisation USD 0.83% 0.82% 0.82% 0.00%

B Distribution EUR Hedged 0.86% 0.85% 0.85% 0.00%

B Distribution GBP Hedged 0.87% 0.85% 0.85% 0.00%

B Distribution USD 0.83% 0.82% 0.82% 0.00%

E Capitalisation EUR Hedged 1.51% 1.50% 1.49% (0.01%)

E Capitalisation USD 1.49% 1.48% 1.46% (0.02%)

F Capitalisation CHF Hedged 1.17% 1.14% 1.14% 0.00%

F Capitalisation EUR Hedged 1.15% 1.14% 1.14% 0.00%

F Capitalisation USD 1.12% 1.11% 1.11% 0.00%

F Distribution EUR Hedged 1.15% 1.14% 1.14% 0.00%

I Capitalisation EUR Hedged 1.10% 1.10% 1.10% 0.00%

I Capitalisation USD 1.08% 1.07% 1.07% 0.00%

I Distribution USD 1.08% 1.07% 1.07% 0.00%


A Capitalisation CHF Hedged 0.40% 0.40% 0.40% 0.00%

A Capitalisation EUR Hedged 0.40% 0.40% 0.40% 0.00%

A Capitalisation EUR Hedged Redex 0.45% 0.45% 0.45% 0.00%

A Capitalisation USD 0.37% 0.37% 0.37% 0.00%


E Capitalisation EUR Hedged 1.41% 1.40% 1.39% (0.01%)

E Capitalisation USD 1.37% 1.36% 1.36% 0.00%

F Capitalisation CHF Hedged 0.92% 0.89% 0.89% 0.00%

F Capitalisation CHF Hedged Redex 0.94% 0.93% 0.94% 0.01%

F Capitalisation EUR Hedged 0.89% 0.89% 0.89% 0.00%

F Capitalisation USD 0.87% 0.86% 0.86% 0.00%

I Capitalisation EUR Hedged 0.61% 0.60% 0.60% 0.00%

I Capitalisation USD 0.57% 0.57% 0.57% 0.00%



A Distribution EUR Hedged 0.15% 0.14% 0.15% 0.01%


I Distribution EUR Hedged 0.15% 0.15% 0.15% 0.00%



A Capitalisation EUR 0.53% 0.52% 0.55% 0.03%

A Capitalisation USD Hedged 0.56% 0.55% 0.58% 0.03%

B Capitalisation CHF Hedged 0.88% 0.86% 0.88% 0.02%



59

TER (Total Expense Ratio) (continued)

Sub-Funds Calculated

TER (1)Theoretical

TER( 2) Ongoing

charges (3) Difference between

Ongoing charges andTER (4)

AXA IM Fixed Income Investment Strategies - Europe Short Duration High Yield (continued)

B Capitalisation EUR 0.84% 0.82% 0.85% 0.03%

B Capitalisation USD Hedged 0.86% 0.86% 0.88% 0.02%

B Distribution EUR 0.83% 0.82% 0.85% 0.03%

E Capitalisation EUR 1.54% 1.49% 1.49% 0.00%

F Capitalisation EUR 1.14% 1.13% 1.14% 0.01%

F Capitalisation USD Hedged 1.44% 1.30% 1.17% (0.13%)

M Capitalisation EUR 0.07% 0.07% 0.10% 0.03%

(1) The TERs above represent the actual calculations made by the fund administrator whereas TERs published for small classes of units are effected by rounding processes. This creates a TER not necessarily representing a figure of expenses which Unitholders are reasonably expected to pay not necessarily representing a figure of expenses which Unitholders are reasonably expected to pay.

(2) The TERs above represent the average expenses which Unitholders would normally have expected to pay from the initial date of their investment in the chosen class of units as indicated in the prospectus.

(3) The Ongoing charges are based on the expenses for the twelve month period ending in December 2012. This figure is adjusted with implemented budget changes for 2013 and may vary from year to year. The Ongoing charges calculation excludes the Performance fees and the Portfolio transaction costs, except in the case of an entry/exit charge paid by the Sub-Fund when buying or selling units in another collective investment undertaking.

(4) The difference between Ongoing charges and the theoretical TERs typically reflects expenses linked to stock lending and settlement charges charged by the custodian and anticipated budget changes for 2013.

PTR (Portfolio Turnover Ratio)

Sub-Funds Currency PTR (1) PTR II (2)

AXA IM Fixed Income Investment Strategies - US Short Duration High Yield USD 34.13% 56.39%

AXA IM Fixed Income Investment Strategies - US Corporate Bonds USD (62.18%) (44.20%)

AXA IM Fixed Income Investment Strategies - US Libor Plus USD 43.96% 43.96%

AXA IM Fixed Income Investment Strategies - Europe Short Duration High Yield EUR (85.47%) (64.82%)

Calculation of the Portfolio Turnover Ratio:

(1) PTR = (TOTAL PURCHASES + TOTAL SALES) - (TOTAL SUBSCRIPTIONS + TOTAL REDEMPTIONS) x 100 AVERAGE TOTAL NET ASSETS*

(2) PTR II = (TOTAL PURCHASES + TOTAL SALES) - SUM OF DAILY NET IN OR OUTFLOWS x 100 AVERAGE TOTAL NET ASSETS*

(*) Calculated on the basis of the daily/monthly average of the total net assets for the year ended on 31 December 2012.



60

Transaction fees

The transaction fees presented in the Statement of Operations and Changes in Net Assets are the sum of the Custody cash movement Charges, the Fund Administrator Charges on FOREX activity and the Custody Settlement Charges.

Sub-Funds Commissions Settlement

Fees Tax In the Sub-Funds currency

Broker Commissions

Broker Execution

fee

Custody cash

movement Charges∗

Fund Administrator

Charges on FOREX

activity*

Custody Settlement

Charges*Stamp

Duty

Other Transaction

Tax Total

All other components

of the Transaction

fees∗∗AXA IM Fixed Income Investment Strategies - US Short Duration High Yield

- - 4,668 - 36,725 - - 41,393 -


- - 2,727 - 5,627 - - 8,354 -


- - 1,857 - 501 - - 2,358 -


- - 4,225 - 11,247 - - 15,472 -

Risk disclosure linked to CSSF circular 11/512

The method to calculate the global exposure is the commitment approach for all the Sub-Funds.

∗ These fees are disclosed under the caption “Transaction fees” in Statement of Operations and Changes in Net Assets. ∗∗ The “All other components of the Transaction fees” do not form part of the account “Transaction fees” in the Statement of Operations and Changes in Net Assets. They are included in the “Net Change in unrealised appreciation/(depreciation) on investments” and the “Net realised gain/(loss) on sales of investments” in the Statement of Operations and Changes in Net Assets.



61

Geographical Classification of Schedule of Investments and Other Net Assets

The exchange rate applied for the Investment in MM US$ in the table below, is the same as indicated in note 2b) Foreign Currency Translation, which is also used for the Net Asset Value calculation:

1 USD = 0.756370 EUR

As at 31 December 2012 the geographical classification per Sub-Fund is the following:

Sub-Fund Currency Allocation Criteria: (Geographical)

InvestmentMMUS$

Percentage % of Total

Market Value in SubFund Currency

USD AXA IM Fixed Income Investment Strategies - US Short Duration High Yield

Australia 169.18 1.27% 169,183,135

Austria 24.38 0.18% 24,382,969

Canada 203.41 1.52% 203,413,874

Cayman Islands 156.09 1.17% 156,094,251

Cyprus 13.71 0.10% 13,707,000

Hong Kong 24.23 0.18% 24,231,300

Jamaica 116.40 0.87% 116,395,805

Luxembourg 337.76 2.53% 337,758,353

Malaysia 30.22 0.23% 30,216,180

Mexico 38.90 0.29% 38,897,575

Norway 94.45 0.71% 94,449,285

Puerto Rico 51.14 0.38% 51,137,440

The Netherlands 225.17 1.68% 225,168,101

United Kingdom 154.28 1.15% 154,281,936

United States of America 10,930.92 81.79% 10,930,916,849

Others 794.94 5.95% 794,943,052

Total 13,365.18 100.00% 13,365,177,105

USD AXA IM Fixed Income Investment Strategies - US Corporate Bonds

Australia 10.53 1.87% 10,525,178

Bermuda 1.36 0.24% 1,357,519

Brazil 2.62 0.47% 2,621,529

Canada 8.61 1.53% 8,613,905

France 6.52 1.16% 6,515,249

Republic of Korea 1.83 0.33% 1,829,880

Luxembourg 4.06 0.72% 4,059,790

Mexico 2.93 0.52% 2,925,825

Norway 0.92 0.16% 922,594

Sweden 2.97 0.53% 2,973,569

Switzerland 0.62 0.11% 617,594

The Netherlands 7.85 1.40% 7,849,667

United Kingdom 16.51 2.94% 16,507,943

United States of America 468.37 83.41% 468,366,006

Others 25.82 4.60% 25,818,102

Total 561.50 100.00% 561,504,350



62

Sub-Fund Currency Allocation Criteria: (Geographical) Investment

MMUS$Percentage % of

Total Market Value in

SubFund Currency

USD AXA IM Fixed Income Investment Strategies - US Libor Plus

Cayman Islands 5.86 20.19% 5,857,114


Others 2.12 7.30% 2,116,795

Total 29.01 100.00% 29,006,552

EUR AXA IM Fixed Income Investment Strategies - Europe Short Duration High Yield

Australia 3.13 0.72% 2,367,120

Belgium 5.51 1.28% 4,169,617

Bermuda 1.67 0.39% 1,263,712

Canada 2.86 0.66% 2,162,750

Cayman Islands 0.63 0.15% 475,922

Croatia 4.26 0.98% 3,218,395

Denmark 2.99 0.69% 2,260,650

Finland 3.11 0.72% 2,351,294

France 40.13 9.29% 30,354,714

Germany 36.61 8.47% 27,690,981

Hong Kong 2.78 0.64% 2,098,932

Hungary 1.09 0.25% 820,944

Ireland 12.63 2.92% 9,552,506

Italy 13.75 3.18% 10,398,779

Japan 2.98 0.69% 2,251,618

Jersey 4.08 0.94% 3,084,144

Liberia 2.72 0.63% 2,054,000

Luxembourg 55.44 12.83% 41,933,227

South Africa 2.28 0.53% 1,722,438

Spain 14.43 3.34% 10,912,963

Sweden 2.63 0.61% 1,992,906

The Netherlands 52.79 12.22% 39,929,882

United Kingdom 89.44 20.70% 67,648,942


Others 47.96 11.10% 36,272,312

Total 432.07 100.00% 326,801,579

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AXA IM FIXED INCOME INVESTMENT STRATEGIESFonds Commun de Placement49, Avenue J.F. Kennedy L-1855 Luxembourg

www.axa-im.com