1 Externally Managed Equity Investment Strategies Style Bias Scott Callander Director, Middle East

2 Asset Classes GBP SEK NOK CAD Currencies USD JPY CHF DKK GBP SEK NOK Equities Global Emerging Spread Country/Sector/Theme Market Cap. Volatility / Correlation Equity Bond Currency Relative Value Structured Finance CDO Commodities Agriculture Livestock Bonds Global Relative Value Curve Country Govies, Credit, Inflation, Emerging, High Yield. Cash Tactical Asset Allocation  Macro Strategy  Risk considerations and your constraints  Initial Top Down Allocation Active and fundamental allocation to different asset classes (β).

3 The Search for Alpha Equities High Conviction Equities Talents Range Currency IS -Indexed -Commodities. - Sectors Fund of Hedge Fund IG Bonds (US, Yen, Global) US & Global High Yield Balanced team α Equities AXA Rosenberg Euro Aggregate and Credit Index Linked AXA Balanced Theme Equities AXA Framlington  Many alpha sources  traditional and;  non-traditional asset classes for asset allocation and multi- asset portfolios  Access to active, high quality yet uncorrelated management in each asset class (α). Access to diverse sources of Alpha

4 Style bias can hurt! Souce: S&P/Citigroup, as at 31/10/2007

5 Style Bias – Growth and Value  Growth –Investment opportunities that earn more than the firm's cost of capital. –Record of past growth and the potential for future increases in capital value. –Potential for high growth in earnings or expected earnings = potential for big increases in the stock price. –Shares in growth companies are usually expensive, relative to the internal or fundamental value of the company. –If the company fails to deliver growth, the price can fall dramatically. –Growth investing is usually considered more risky than value investing. –Typical sectors include telecommunications, technology and media.  Characteristics –High PE ratio –Low dividend yield –Strong Earnings Per Share (EPS)  Value –Stocks with expected higher intrinsic values than currently priced by the market. –Shares that are attractively priced, relative to the earnings or the internal value of the company – or, in some cases, relative to the market. –Price of these companies will eventually rise to reflect the true value. –Many consider value investing safer than growth investing, since prices of value stocks tend to be less volatile. –Healthcare, pharma  Characteristics –High dividend yield; –Low price-to-book ratio and/or; –Low price-to-earnings ratio.

6 US Equities - Growth versus Value Souce: S&P/Citigroup, as at 31/10/2007

7 Fundamental & Quantitative FundamentalActive Quant Opportunity Set3,00021,000 Diversification50 – 150 names200 – 600 names Risk AnalysisProprietaryIntegrated StyleCore, Growth, Value….Core + marginal tilt Decision MakingEmotionalObjective Tracking Error4% +Typically 3% - 6%  Diversification  Correlation  Capacity  Skill – both human & technological  Risk / Reward trade off

8 Conclusion  Complex business  Considerable choice  Identify strong providers  Risk management is at the heart of good decision making  Don’t ignore innovative products  Think in years not days Thank you

9 AXA Group *Souce: AXA Group, as at 31/12/2006 AXA Investment Managers (AXA IM) Property & Casualty International Insurance Life & Savings Other Financial Services Asset Management AXA GROUP 52 million clients* 120,000 professionals (employees and exclusive distributors) €79 billion of revenues* €1315 billion in assets under management (including Winterthur) Financial Strength Ratios* Standard & Poor’s AA- positive outlook, Moody ’s Aa3 positive outlook, Fitch AA stable outlook A worldwide presence United States, Europe, Middle-East, Asia Pacific and Far-East AllianceBernstein

10 AUM*: €573bn Structured by “investment style” Integrated distribution platforms The AXA Group’s asset managers AUM*: €550bn Multi-expert: Structured by “expertise” Separate distribution platforms for third parties & AXA Insurance Companies AUM – Top 10 Asset managers (31/12/2006) AUM – Insurance groups (31/12/2006) *Source: AXA IM, as at 30/09/2007 Source: Pensions & Investments / Watson Wyatt Global 500 survey. The AXA Group A leading position in asset management

11 Disclaimer AXA Investment Managers LLC This document has been produced for business customers and market counterparties as defined by the Qatar Financial Centre Regulatory Authority. It is not for use by retail customers under any circumstances. This document has been prepared and issued by AXA Investment Managers LLC, Qatar Financial Centre, Office 603, 6 th Floor, QFC Tower, Diplomatic Area, West Bay, PO Box 22415, Doha, Qatar. AXA Investment Managers LLC is authorised by the Qatar Financial Centre Regulatory Authority.  This presentation has been issued on 25 th November 2007.