AXA Investment Managers 2008 Results:
Standing up well to the crisis

News Release, London, 03 March 2009

• 2/3 funds are in the top two quartiles of their category

• Net inflows remain positive at 2 billion euros

• Assets under management at 485 Billion euros, a drop of 12% due to negative market effects

• Revenues¹ of 1332 million euros, a slight decrease of 6%

• Profitability remains high with operating ratio² at 66% and a slight drop in operating income³: -2% to 271 million euros, due to prudent cost management

Dominique Carrel-Billiard, CEO of AXA Investment Managers says: “The unprecedented crisis we are going through, is affecting the asset management industry as a whole, especially in Europe. In this climate, our multi-expert model has proved to be particularly robust and effective in providing the best protection for our clients. Our model allows us a high level of flexibility in addressing changes in the current markets, whilst providing our investment teams with strong resources in terms of research, risk management, operations’ quality and client relationships. Thanks to our model, we remain profitable for our shareholder and are in an encouraging position to face 2009, which will be a difficult year for the industry.”

In 2008, the assets under management of AXA Investment Managers (AXA IM) fell by 12% to 485 billion euros compared to 548 billion euros for 2007.  With a disciplined approach to fixed and variable costs, operating ratio remained relatively stable at 66% compared to 67.6% in 2007, as did revenues, at 1.332 million euros compared to 1.419 million euros in 2007. Net inflows rose to 2 billion euros, representing the sum of the inflows issued by AXA Group (+6), our institutional clients (+3) and distributors (-7).

The robustness of AXA IM’s multi-expert model is reaffirmed in these turbulent markets:

In the face of the severity of the crisis, AXA IM has demonstrated the robustness of its business model with four distinctive strengths that are particularly relevant in the current environment: 
- The win-win relationship with the AXA Group, which provides AXA IM with stability, sophistication, the means to be innovative and deliver high level, quality service that benefits all AXA IM clients;
- A strong strategy of differentiation, with distinctive investment processes, especially in the area of Equities and Alternatives, with AXA Rosenberg, AXA Private Equity, AXA REIM and Funds of Hedge Funds;
- The flexibility of its organisational model that offers a diversified range of products to various types of markets and clients;
- The quality of its client relationships, thanks to the sales teams which have increased the frequency of communication throughout the crisis.

Key highlights for each of the major investment platforms:

• Fixed income  (AUM - nearly 260 billion euros⁴) has been restructured under the direction of Theodora Zemek with the objective of strengthening its investment process. The Fixed Income division has been restructured around two teams: on one hand, an interest rate team composed of managers managing allocations across the fixed income securities (government bonds, credit, maturity/yield curve and currencies); on the other hand, a team of credit specialists.  By creating these two teams, Theodora Zemek is seeking to assert very clearly the performance engines of AXA IM's fixed income team. 

• Equities (AUM - nearly 120 billion euros) has seen its performance resist well despite the record drop in the equities markets since January 2008.  In quantitative management, AXA Rosenberg continued, despite a drop in its assets due to the market effect, to assert itself as a major player in the market with assets of 47 billion euros⁵ and has seen the number of its institutional clients increase. Regarding its qualitative equity expertise (AXA Framlington, Equity Conviction and Talents), AXA IM plans to continue building synergies between teams while bringing them together in order to create a unique brand. The product range will thus be enriched along two lines: core funds and specialised funds (thematics, absolute return).

• Investment Solutions (AUM - 19 billion euro⁶) has demonstrated its potential for development, as it was the expertise which raised the most funds over the year. Investment Solutions has been restructured into two teams, one responsible for the engineering, design and development of investment solutions and the other specialising in fund management dedicated to insurance companies and diversified funds.

• Alternative expertises of AXA IM (AUM - 87 billion euros)
-The strategies of AXA IM’s Funds of Hedge Funds platform have shown good resistance to the volatility in the markets since summer 2007 thanks to a rigorous due diligence and risk management process.  The Funds of Hedge Funds expertise has seen its AUM increased to 3.5 billion euros.
-Structured Finance Division (SFD), AXA IM’s structured credit division, has implemented a new expertise with Insurance Linked Securities and has repositioned itself on “distressed” assets while taking on run off of securitised portfolios on behalf of third party institutions. 
-With over 40 billion euros of AUM, AXA REIM has achieved a high volume of transactions for 5.7 billion euros. AXA REIM has also reinforced its presence in Asia.
-AXA Private Equity, thanks to its several expertises, has continued to raise funds with net inflows of 2.6 billion euros. AXA Private Equity has reinforced its presence in Europe with the opening of an office in Vienna.

In 2009, despite an uncertain economic climate, AXA IM intends to reinforce its growth strategy.

AXA IM will continue firstly with its development in Asia, in particular through its joint ventures. After China and India, AXA IM entered into partnership with Kyobo Life in 2008 to form a joint asset management vehicle: Kyobo AXA Investment Managers. With nearly 9 billion euros AUM⁷, the entity is ranked among the 10 largest Korean asset managers.

In addition and in order to address the current environment of financial markets, AXA IM has adapted its strategy for 2009 by focussing on three priorities:
- Maintain investment performance through reinforcement of risk management, with the deployment of a global tool that will further enhance the culture of risk at all stages of the investment process;
- Strengthen client relationships, in particular through the appointment of Senior Relationship Managers who will improve relationships with major institutional clients, and through the enhancement of all processes that affect clients directly, especially reporting;
- Adapt the operational model to market circumstances, especially in terms of cost management.

¹ Net of fees to distributors and excluding internal transactions between companies of AXA IM Group. Contribution to AXA Group’s revenues rose to 1,436 million euros in 2008.
² General expenses (including variable remunerations) on net revenues from resales to distributors.
³ Group share.
⁴ This amount covers both foreign currency and euro fixed income under budgetary and accounting conditions for insurance companies operating within the I2 team, in the Investment Solutions plaform
⁵ Data as at 31.12.2008
⁶ Assets corresponding to equity and fixed income management driven within this expertise are accounted along with all assets belonging to AXA IM’s equity and fixed income platforms.
⁷ Source: AXA IM, end of December 2008

- ENDS -

For more information, contact the press office:

Sara Dennehy / Niasha Don Carolis
AXA Investment Managers
+ 44 (0) 207 003 2233 / 2231
sara.dennehy@axa-im.com
niasha.doncarolis@axa-im.com

Notes to Editors:

AXA Investment Managers
AXA Investment Managers is a multi-expert asset management company within the AXA Group, a global leader in financial protection and wealth management. AXA IM is one of the largest European-based asset managers with €485 billion in assets under management as of the end of December 2008. AXA IM employs nearly 3,000 people around the world and operates out of 22 countries.

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This press release is as dated. This does not constitute a Financial Promotion as defined by the Financial Services Authority and is for information purposes only. No financial decisions should be made on the basis of the information provided.