Annual Report 2019 - hfi.hsbc.com.hk · 2019 lower, despite a short-term market recovery in the...

HSBC Investment Funds Trust Annual Report 2019

Contents

Page1. HSBCINVESTMENTFUNDSTRUST

1.1 HSBCASIANBONDFUND

1.2 HSBCCHINAMOMENTUMFUND

1.3 HSBCCHINAGROWTHFUND

1.4 HSBCASIANHIGHYIELDBONDFUND

Investment Adviser’s Reports 1Trustee’s Report 3Independent Auditor’s Report to the Unitholders 4Statement of Financial Position 7Statement of Comprehensive Income 11Statement of Changes in Net Assets Attributable to Unitholders/Statement of Changes in Equity 13Cash Flow Statement 16Distribution Statement 18Notes to the Financial Statements 22Portfolio Statement (Unaudited) 79Statement of Movements in Portfolio Holdings (Unaudited) 100Performance Record (Unaudited) 104

2. ADMINISTRATION 115

1

Investment Adviser’s Report

HSBCAsianBondFund

MarketReviewFor the year ended 31 July 2019, the fund performed well and outperformed its benchmark on a gross-of-fees basis. Outperformance came mostly from our credit exposure. Of note, the fund’s selection in the banking and utilities sectors contributed the most. An overweight in the real estate sector and the fund’s yield curve positioning strategy also added value. Conversely, the fund’s exposure to non-USD bonds detracted as most Asian currencies weakened against the US dollar over the reviewed period. The fund’s underweight duration strategy also weighed on relative returns as yields broadly shifted down.

Asian credit market ended the review period in positive territories driven mainly by broadly lower US treasury yields. Spreads have been rather volatile as it climbed in the earlier part of the review period only to fall again in the second half of the period. Expectations of the future path of the US interest rates was the key driver for Asian credit during the period. Buoyant economic data in the US fueled expectations for further tightening in the country, leading to higher treasury yields in most of 2018. However, in the later part of the review period, risk factors such as volatility in the US equity markets, moderating China economic growth, Sino-US trade tension, Brexit and falling oil prices began to weigh on risk sentiment. Investors began to price in a growth slowdown in the US and the probability for US Federal Reserve to cut rates. US treasury yields began to fall since then and have remained on a down trend.

Meanwhile, spreads have also been volatile with the various risk factors fueling investors’ risk aversion, which pushed up spreads to their highest levels in 2 years. However, the upward trend of spreads made a turn in 2019 as the dovish shift of policy stance in the major developed markets fueled global demand for yields, leading to overall positive fund flows to emerging market fixed income. The accommodative stance of the PBOC over the review period also led to lower yields in the onshore China market, which further boosted demand for Asian credit from local Chinese investors. The strong demand for yields and expectations for global yields to stay low have led to strong tightening of spreads and contributed to the strong performance for Asia credit in 2019.

HSBCChinaMomentumFund

MarketReviewThe Chinese equity markets finished its year ended 31 July 2019 lower, despite a short-term market recovery in the first four months of 2019.

Lingering concerns on US-China trade dispute has been depressing equity market performance in the second half of 2018. On the domestic front, economic activity also pointed to a softening outlook across retail sales, exports and industrial activity. In response to macro headwinds, the Chinese government started to roll out supportive policies, which explained the market recovery in the beginning of 2019. The market rallied in the first four months of 2019 driven by positive progress on US-China trade talks, strong domestic policy support and a more dovish tone from the US Fed. On the domestic front, we have seen RRR cut, relaxation of SME loan definition, introduction of new quota for local government debt and VAT cut etc. Economic activity in the first quarter held up better than expected, suggesting the government policy effects were coming through. However, the market tumbled in May which erased most of the gain in the beginning of year after US President Trump raised tariffs on Chinese goods from 10% to 25% and banned Chinese tech giant Huawei. After a short-term market rebound in June, the equity market moderated in July mainly dragged by the lack of new progress in US-China trade talk. Lack of conviction on further policy easing also weighed on market sentiment. Nevertheless, economic activities have been recovering in June, with industrial production, fixed asset investment and retail sales beating market expectation.

During the 12 months ended 31 July 2019, the fund slightly underperformed the benchmark MSCI China 10/40 Index mainly due to unfavourable stock selection calls in healthcare and IT sectors. However, successful sector allocation, in particular the overweight in consumer staples, helped offset some of the negative selection effect. With US tariff hikes on Chinese goods kicking in, the timing and the terms of the final deal have become more uncertain, and potential negative surprises from trade negotiation remain a key risk to the market. In long term, however, domestic growth and policy support will play a more important role. We expect the ongoing cyclical recovery to continue as the accommodative policy stance and effects of macro policy support continue to feed through. Looking ahead, as the market is entering the earnings season very soon, we expect investors to shift the focus back to corporate earnings. Companies with strong fundamentals and growth are expected to outperform. Short term uncertainties on trade tension could introduce more volatility to the market but this could also create more mispricing opportunities for disciplined investors to capture.

HSBCChinaGrowthFund

MarketReviewThe Chinese equity markets finished its year ended 31 July 2019 lower, despite a short-term market recovery in the first four months of 2019.

2

Investment Adviser’s Report

Lingering concerns on US-China trade dispute has been depressing equity market performance in the second half of 2018. On the domestic front, economic activity also pointed to a softening outlook across retail sales, exports and industrial activity. In response to macro headwinds, the Chinese government started to roll out supportive policies, which explained the market recovery in the beginning of 2019. The market rallied in the first four months of 2019 driven by positive progress on US-China trade talks, strong domestic policy support and a more dovish tone from the US Fed. On the domestic front, we have seen RRR cut, relaxation of SME loan definition, introduction of new quota for local government debt and VAT cut etc. Economic activity in the first quarter held up better than expected, suggesting the government policy effects were coming through. However, the market tumbled in May which erased most of the gain in the beginning of year after US President Trump raised tariffs on Chinese goods from 10% to 25% and banned Chinese tech giant Huawei. After a short-term market rebound in June, the equity market moderated in July mainly dragged by the lack of new progress in US-China trade talk. Lack of conviction on further policy easing also weighed on market sentiment. Nevertheless, economic activities have been recovering in June, with industrial production, fixed asset investment and retail sales beating market expectation.

During the 12 months ended 31 July 2019, the fund outperformed the benchmark MSCI China 10/40 Index mainly due to favourable stock selection calls in consumer discretionary and communication sectors. With US tariff hikes on Chinese goods kicking in, the timing and the terms of the final deal have become more uncertain, and potential negative surprises from trade negotiation remain a key risk to the market. In long term, however, domestic growth and policy support will play a more important role. We expect the ongoing cyclical recovery to continue as the accommodative policy stance and effects of macro policy support continue to feed through. Looking ahead, as the market is entering the earnings season very soon, we expect investors to shift the focus back to corporate earnings. Companies with strong fundamentals and growth are expected to outperform. Short term uncertainties on trade tension could introduce more volatility to the market but this could also create more mispricing opportunities for disciplined investors to capture.

HSBCAsianHighYieldBondFund

MarketReviewFor the year ended 31 July 2019, the fund performed well and outperformed its benchmark on a gross-of-fees basis. Outperformance came mostly from our credit exposure. Of note, the fund’s credit selection in the energy and utilities sectors contributed the most. An underweight in the industrials and consumer cyclical sectors also added value. Conversely, the fund’s exposure to non-USD bonds detracted as most Asian currencies weakened against the US dollar over the reviewed period.

Asian credit market ended the review period in positive territories driven mainly by broadly lower US treasury yields. Spreads have been rather volatile as it climbed in the earlier part of the review period only to fall again in the second half of the period. Expectations of the future path of the US interest rates was the key driver for Asian credit during the period. Buoyant economic data in the US fueled expectations for further tightening in the country, leading to higher treasury yields in most of 2018. However, in the later part of the review period, risk factors such as volatility in the US equity markets, moderating China economic growth, Sino-US trade tension, Brexit and falling oil prices began to weigh on risk sentiment. Investors began to price in a growth slowdown in the US and the probability for US Federal Reserve to cut rates. US treasury yields began to fall since then and have remained on a down trend.

Meanwhile, spreads have also been volatile with the various risk factors fueling investors’ risk aversion, which pushed up spreads to their highest levels in 2 years. However, the upward trend of spreads made a turn in 2019 as the dovish shift of policy stance in the major developed markets fueled global demand for yields, leading to overall positive fund flows to emerging market fixed income. The accommodative stance of the PBOC over the review period also led to lower yields in the onshore China market, which further boosted demand for Asian credit from local Chinese investors. The strong demand for yields and expectations for global yields to stay low have led to strong tightening of spreads and contributed to the strong performance for Asia credit in 2019.

HSBCGlobalAssetManagement(HongKong)Limited29 November 2019

3

Trustee’s Report

HSBCInvestmentFundsTrust(“theTrust”)

We hereby confirm that, to the best of our knowledge, the Manager of the sub-funds within the Trust (“the sub-funds”) has, in all material respects, managed the sub-funds in accordance with the provisions of the Trust Deed dated 13 November 1995, as amended, for the year ended 31 July 2019.

) ) For and on behalf of ) HSBC Institutional Trust Services (Asia) Limited, ) Trustee )

4

Independent Auditor’s Report to the Unitholders

ReportontheAuditoftheFinancialStatements

Opinion

We have audited the financial statements of HSBC Asian Bond Fund, HSBC China Momentum Fund, HSBC China Growth Fund and HSBC Asian High Yield Bond Fund (“the sub-funds”), within HSBC Investment Funds Trust, set out on pages 7 to 78, which comprise the statement of financial position as at 31 July 2019, the statement of comprehensive income, the statement of changes in net assets attributable to unitholders/statement of changes in equity, the cash flow statement and the distribution statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the financial statements give a true and fair view of the financial disposition of the sub-funds at 31 July 2019, and of their financial transactions and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”).

BasisforOpinion

We conducted our audit in accordance with Hong Kong Standards on Auditing (“HKSAs”) issued by the HKICPA. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the sub-funds in accordance with the HKICPA’s Code of Ethics for Professional Accountants (“the Code”) and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

InformationOtherthantheFinancialStatementsandAuditor’sReportThereon

The Manager and the Trustee of the sub-funds are responsible for the other information. The other information comprises all the information included in the annual report, other than the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

ResponsibilitiesoftheManagerandtheTrusteeoftheSub-FundsfortheFinancialStatements

The Manager and the Trustee of the sub-funds are responsible for the preparation of financial statements that give a true and fair view in accordance with HKFRSs issued by the HKICPA and for such internal control as the Manager and the Trustee of the sub-funds determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Manager and the Trustee of the sub-funds are responsible for assessing the sub-funds’ ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Manager and the Trustee of the sub-funds either intend to liquidate the sub-funds or to cease operations, or have no realistic alternative but to do so.

In addition, the Manager and the Trustee of the sub-funds are required to ensure that the financial statements have been properly prepared in accordance with the relevant provisions of the Trust Deed, as amended, (“the Trust Deed”) and the relevant disclosure provisions of Appendix E of the Code on Unit Trusts and Mutual Funds (“the SFC Code”) issued by the Hong Kong Securities and Futures Commission.

5


Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. This report is made solely to you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. In addition, we are required to assess whether the financial statements of the sub-funds have been properly prepared, in all material respects, in accordance with the relevant provisions of the Trust Deed and the relevant disclosure provisions of Appendix E of the SFC Code.

As part of an audit in accordance with HKSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit 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 sub-funds’ internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Manager and the Trustee of the sub-funds.

• Conclude on the appropriateness of the Manager’s and the Trustee’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the sub-funds’ ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the sub-funds to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Manager and the Trustee of the sub-funds regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

6


ReportonmattersundertherelevantprovisionsoftheTrustDeedandtherelevantdisclosureprovisionsofAppendixEoftheSFCCode

In our opinion, the financial statements have been properly prepared, in all material respects, in accordance with the relevant provisions of the Trust Deed and the relevant disclosure provisions of Appendix E of the SFC Code.

KPMGCertified Public Accountants8th Floor, Prince’s Building10 Chater RoadCentral, Hong Kong

29 November 2019

The accompanying report of KPMG is for sole and exclusive use of the sub-funds within HSBC Investment Funds Trust. Further, the report of KPMG is as of 29 November 2019 and KPMG has carried out no procedures of any nature subsequent to that date which in any way extends that date.

7

Statement of Financial Position

HSBCInvestmentFundsTrustas at 31 July 2019

2019 Asat31July Asat31July Asat31July Asat31July

Note

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowthFund

HSBCAsian

HighYieldBondFund

USD USD USD USD

ASSETSFinancial assets at fair value through

profit or loss 5, 12, 13 2,230,294,520 47,794,882 214,590,430 856,776,869Interest receivable 24,675,687 54 699 12,759,198Dividends receivable – 58,734 537,265 –Subscriptions receivable 14,864,954 – 1,365,634 2,269,806Amounts due from brokers 6 16,443,306 663,208 3,770,606 932,020Cash and cash equivalents 7(b) 5,055,281 993,917 4,920,145 5,751,848

2,291,333,748 49,510,795 225,184,779 878,489,741

LIABILITIESFinancial liabilities and fair value

through profit or loss 5, 12, 13 662,950 – – 201,415Bank overdrafts 7(b) 2,210 – – –Redemptions payable 25,521,829 – 231,129 3,930,390Amounts due to brokers 6 33,593,607 481,861 4,748,011 3,092,969Taxes payable 4 30,327 – – 30,020Distributions payable 11 13,521,369 – – 4,174,181Other payables 7(a), 7(c), 7(d) 2,047,191 104,597 346,255 1,057,582

75,379,483 586,458 5,325,395 12,486,557

NETASSETSATTRIBUTABLETOUNITHOLDERS 2,215,954,265 48,924,337 219,859,384 866,003,184

Representing

Financialliabilities 2,215,954,265 – 219,859,384 866,003,184

Equity – 48,924,337 – –

Totalnumberofunitsinissue

– “AC – HKD” class 9(a) – – 24,428,279 94,406– “AC – SGD” class 9(b) – – – –– “AC – USD” class 9(c) 715,027 757,984 13,523,105 1,129,530– “AM – HKD” class 9(d) 433,423,891 – – 170,230,564– “AM – USD” class 9(e) 138,915,808 – – 58,965,467– “AMH – AUD” class 9(f) 17,082,312 – – 5,145,886– “AMH – EUR” class 9(g) 1,303,007 – – 611,985– “IC – USD” class 9(h) 5,039,654 – – –– “ID – USD” class 9(i) 2,687,607 – – –– “IM – USD” class 9(j) – – – 997,009– “ZD – USD” class 9(k) 13,287,653 – – 240,501

8




Note

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowthFund

HSBCAsian

HighYieldBondFund

USD USD USD USD

Netassetvalueperunit

– “AC – HKD” class 9(l) – – 1.719 2.030– “AC – SGD” class 9(l) – – – –– “AC – USD” class 9(l) 14.007 64.546 13.154 15.782– “AM – HKD” class 9(l) 1.305 – – 1.266– “AM – USD” class 9(l) 9.162 – – 9.832– “AMH – AUD” class 9(l) 6.666 – – 6.609– “AMH – EUR” class 9(l) 10.648 – – 10.443– “IC – USD” class 9(l) 14.379 – – –– “ID – USD” class 9(l) 10.200 – – –– “IM – USD” class 9(l) – – – 10.027– “ZD – USD” class 9(l) 10.554 – – 10.088

9




Note

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowthFund

HSBCAsian

HighYieldBondFund

USD USD USD USD


profit or loss 5, 12, 13 1,803,960,266 65,851,570 265,170,150 703,486,055Interest receivable 19,748,402 9 79 9,671,380Dividends receivable – 508,128 2,482,372 –Subscriptions receivable 1,793,207 – 755,712 3,368,208Amounts due from brokers 6 7,976,923 118,485 5,725,435 5,350,141Cash and cash equivalents 7(b) 14,464,493 1,243,554 2,253,326 2,536,879

1,847,943,291 67,721,746 276,387,074 724,412,663

LIABILITIESFinancial liabilities and fair value

through profit or loss 5, 12, 13 45,322 – – 37,133Bank overdrafts 7(b) – – – –Redemptions payable 9,314,741 36,137 3,262,583 3,892,718Amounts due to brokers 6 8,693,955 540,207 3,100,297 5,174,670Taxes payable 4 12,063 – – 4,059Distributions payable 11 12,529,177 – – 4,070,511Other payables 7(a), 7(c), 7(d) 1,569,924 137,761 512,832 857,109

32,165,182 714,105 6,875,712 14,036,200

NETASSETSATTRIBUTABLETOUNITHOLDERS 1,815,778,109 67,007,641 269,511,362 710,376,463

Representing

Financialliabilities 1,815,778,109 – 269,511,362 710,376,463

Equity – 67,007,641 – –

Totalnumberofunitsinissue

– “AC – HKD” class 9(m) – – 31,927,985 181,183– “AC – SGD” class 9(n) – – – –– “AC – USD” class 9(o) 545,699 963,855 15,662,279 710,185– “AM – HKD” class 9(p) 294,774,220 – – 159,335,659– “AM – USD” class 9(q) 116,593,456 – – 48,803,544– “AMH – AUD” class 9(r) 13,267,133 – – 3,290,753– “AMH – EUR” class 9(s) 1,096,127 – – 618,918– “IC – USD” class 9(t) 12,736,410 – – 463,719– “ID – USD” class 9(u) 2,838,014 – – –– “ZD – USD” class 9(v) 12,284,437 – – 246,686

10




Note

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowthFund

HSBCAsian

HighYieldBondFund

USD USD USD USD


– “AC – HKD” class 9(w) – – 1.776 1.850– “AC – SGD” class 9(w) – – – –– “AC – USD” class 9(w) 12.808 69.520 13.588 14.381– “AM – HKD” class 9(w) 1.247 – – 1.232– “AM – USD” class 9(w) 8.760 – – 9.568– “AMH – AUD” class 9(w) 6.879 – – 6.945– “AMH – EUR” class 9(w) 10.701 – – 10.639– “IC – USD” class 9(w) 13.089 – – 10.363– “ID – USD” class 9(w) 9.648 – – –– “ZD – USD” class 9(w) 9.986 – – 9.629

Approved by the Trustee and the Manager on 29 November 2019.

) ) For and on behalf of ) HSBC Institutional Trust Services (Asia) Limited, ) Trustee )

) ) For and on behalf of ) HSBC Investment Funds ) (Hong Kong) Limited, ) Manager )

The notes on pages 22 to 78 form part of these financial statements.

11

Statement of Comprehensive Income

HSBCInvestmentFundsTrustfor the year ended 31 July 2019

2019 Yearended

31JulyYearended

31JulyYearended

31JulyYearended

31July

Note

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund

HSBCAsianHighYieldBond

FundUSD USD USD USD

Interest income 7(b) 198,434 1,049 4,517 124,177Dividend income – 1,017,107 5,424,587 43,248Net gains/(losses) from financial

instruments at fair value through profit or loss 3 180,194,186 (4,222,128) (10,590,451) 77,570,097

Net foreign exchange (losses)/gains (363,452) (13,944) 21,001 (427,899)Other income 26,942 – – 56,256

Totalrevenue/(loss) 180,056,110 (3,217,916) (5,140,346) 77,365,879

Management fees 7(a) 16,543,076 978,958 3,353,991 9,198,332Transaction costs 7(d), 7(e) 11,740 87,888 1,087,979 17,797Trustee’s fees 7(c) 1,395,174 51,858 181,921 611,435Registrar’s fees 7(a), 7(c) 120,012 2,276 19,010 99,468Administrative fees 7(a), 7(c) – – – –Auditor’s remuneration 13,889 18,951 25,581 13,657Legal and professional fees 11,370 9,312 9,707 16,680Safe custody fees, bank charges and

miscellaneous expenses 7(d) 132,215 13,933 58,642 80,601

Totaloperatingexpenses 18,227,476 1,163,176 4,736,831 10,037,970

Netprofit/(loss)fromoperationsbeforetaxation 161,828,634 (4,381,092) (9,877,177) 67,327,909

Taxation 4 (226,567) (75,562) (362,610) (142,819)

Netprofit/(loss)fromoperationsbeforedistributions 161,602,067 (4,456,654) (10,239,787) 67,185,090

Distributions to unitholders 11 (75,974,142) – – (47,371,138)

Increase/(decrease)innetassetsattributabletounitholdersandtotalcomprehensiveincomefortheyear 85,627,925 (4,456,654) (10,239,787) 19,813,952

12

Statement of Comprehensive Income


2018 Yearended

31JulyYearended

31JulyYearended

31JulyYearended

31July

Note

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Interest income 7(b) 82,189 144 605 97,027Dividend income 200,040 1,559,291 9,858,235 199,920Net (losses)/gains from financial

instruments at fair value through profit or loss 3 (14,571,528) 5,344,091 15,117,676 5,158,783

Net foreign exchange losses (811,123) (12,532) (170,046) (500,642)Other income 212,264 – – 166,958

Total(loss)/revenue (14,888,158) 6,890,994 24,806,470 5,122,046

Management fees 7(a) 20,261,717 1,337,070 5,191,433 10,675,483Transaction costs 7(d), 7(e) 12,737 380,434 1,580,172 31,502Trustee’s fees 7(c) 1,711,171 78,075 291,474 805,638Registrar’s fees 7(a), 7(c) 97,868 2,460 21,308 63,652Administrative fees 7(a), 7(c) 81,634 2,777 19,165 48,677Auditor’s remuneration 12,129 17,652 23,654 5,829Legal and professional fees 35,069 20,705 20,705 17,089Safe custody fees, bank charges and

miscellaneous expenses 7(d) 166,349 41,711 110,480 79,197

Totaloperatingexpenses 22,378,674 1,880,884 7,258,391 11,727,067

Net(loss)/profitfromoperationsbeforetaxation (37,266,832) 5,010,110 17,548,079 (6,605,021)

Taxation 4 (466,580) (123,206) (673,674) (364,683)

Net(loss)/profitfromoperationsbeforedistributions (37,733,412) 4,886,904 16,874,405 (6,969,704)

Distributions to unitholders 11 (79,540,370) – – (44,428,544)

(Decrease)/increaseinnetassetsattributabletounitholdersandtotalcomprehensiveincomefortheyear (117,273,782) 4,886,904 16,874,405 (51,398,248)


13

Statement of Changes in Net Assets Attributable to Unitholders/Statement of Changes in Equity


2019 Yearended

31JulyYearended

31JulyYearended

31JulyYearended

31July

Note

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Balanceatthebeginningoftheyear 1,815,778,109 67,007,641 269,511,362 710,376,463

Increase/(decrease)innetassetsattributabletounitholdersandtotalcomprehensiveincomefortheyear 85,627,925 (4,456,654) (10,239,787) 19,813,952

Subscriptionsofunits(excludingequalisation)

– “AC – HKD” class – – 19,507,366 –– “AC – USD” class 11,902,478 – 51,701,557 9,470,070– “AM – HKD” class 511,759,556 – – 93,512,548– “AM – USD” class 800,286,172 – – 315,639,501– “AMH – AUD” class 112,037,980 – – 42,942,481– “AMH – EUR” class 8,965,679 – – 8,654,320– “IC – USD” class 24,852,031 – – –– “ID – USD” class 187,742 – – –– “IM – USD” class – – – 10,000,000– “ZD – USD” class 34,732,964 – – 46,405

Redemptionsofunits(excludingequalisation)

– “AC – HKD” class – – (32,218,801) (158,365)– “AC – SGD” class – – – –– “AC – USD” class (9,736,143) (12,211,494) (78,509,602) (3,278,052)– “AM – HKD” class (332,142,302) – – (79,227,222)– “AM – USD” class (597,830,283) – – (216,327,513)– “AMH – AUD” class (86,641,610) – – (30,589,177)– “AMH – EUR” class (6,820,492) – – (8,977,187)– “IC – USD” class (127,663,422) – – (4,707,678)– “ID – USD” class (1,638,380) – – –– “ZD – USD” class (23,772,407) – – (108,550)

Equalisation on subscriptions and redemptions 10 (3,931,332) (1,415,156) 107,289 (1,078,812)

314,548,231 (13,626,650) (39,412,191) 135,812,769

Balanceattheendoftheyear 2,215,954,265 48,924,337 219,859,384 866,003,184

14



2018 Yearended

31JulyYearended

31JulyYearended

31JulyYearended

31July

Note

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Balanceatthebeginningoftheyear 2,396,009,475 75,887,888 391,273,162 968,077,720

(Decrease)/increaseinnetassetsattributabletounitholdersandtotalcomprehensiveincomefortheyear (117,273,782) 4,886,904 16,874,405 (51,398,248)

Subscriptionsofunits(excludingequalisation)

– “AC – HKD” class – – 95,665,816 268,023– “AC – USD” class 3,615,051 – 148,817,391 2,446,375– “AM – HKD” class 214,824,058 – – 59,817,213– “AM – USD” class 362,171,879 – – 156,976,605– “AMH – AUD” class 42,940,839 – – 20,229,315– “AMH – EUR” class 2,899,608 – – 293,203– “IC – USD” class 44,063,042 – – 4,679,712– “ID – USD” class 2,686,437 – – –– “ZD – USD” class 116,366,368 – – 2,567,766

15



2018 Yearended

31JulyYearended

31JulyYearended

31JulyYearended

31July

Note

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Redemptionsofunits(excludingequalisation)

– “AC – HKD” class – – (129,421,722) (288,523)– “AC – SGD” class – – – (105,443)– “AC – USD” class (4,606,664) (13,934,542) (253,748,366) (2,871,664)– “AM – HKD” class (392,885,282) – – (117,073,475)– “AM – USD” class (728,720,114) – – (283,218,398)– “AMH – AUD” class (53,200,673) – – (26,099,388)– “AMH – EUR” class (12,355,256) – – (7,871,213)– “IC – USD” class (54,207,901) – – (13,565,064)– “ID – USD” class (3,370,386) – – –– “ZD – USD” class (4,377,490) – – (421,216)

Equalisation on subscriptions and redemptions 10 1,198,900 167,391 50,676 (2,066,837)

(462,957,584) (13,767,151) (138,636,205) (206,303,009)

Balanceattheendoftheyear 1,815,778,109 67,007,641 269,511,362 710,376,463

The redeemable units of HSBC China Momentum Fund are classified as equity under HKAS 32. Therefore this sub–fund presents a statement of changes in equity, and the issue and redemption of units and distributions to unitholders are treated as transactions with owners and recorded directly in the statement of changes in equity for the year ended 31 July 2019 and 31 July 2018 for HSBC China Momentum Fund.

The redeemable units of HSBC Asian Bond Fund, HSBC China Growth Fund and HSBC Asian High Yield Bond Fund are classified as financial liabilities and these sub–funds present a statement of changes in net assets attributable to unitholders and the issue and redemption of units are treated as transactions with unitholders. The distributions are treated as finance cost and are recognised in the statement of comprehensive income for the years ended 31 July 2019 and 31 July 2018.


16

Cash Flow Statement


2019 Yearended

31JulyYearended

31JulyYearended

31JulyYearended

31July

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

OperatingactivitiesInterest received 198,533 1,004 7,369,694 120,670Dividends received – 1,466,501 3,897 43,248Management fees paid (16,121,017) (999,814) (3,428,243) (8,998,892)Trustee’s fees paid (1,381,645) (54,793) (189,586) (616,984)Payments on purchase of investments (1,199,465,091) (102,464,128) (249,290,599) (1,864,873,961)Proceeds from sale of investments (including coupon

interest received from investments) 965,448,536 115,695,619 292,882,411 1,788,569,635Taxes paid (208,303) (75,562) (362,610) (116,858)Other operating expenses paid (584,057) (155,677) (1,264,578) (593,264)

Netcash(usedin)/generatedfromoperatingactivities (252,113,044) 13,413,150 45,720,386 (86,466,406)

FinancingactivitiesProceeds from issue of units including equalisation 1,485,023,939 – 70,371,251 477,707,776Payments on redemption of units including

equalisation (1,167,340,367) (13,662,787) (113,424,818) (340,758,933)Distributions paid (74,981,950) – – (47,267,468)

Netcashgeneratedfrom/(usedin)financingactivities 242,701,622 (13,662,787) (43,053,567) 89,681,375

Net(decrease)/increaseincashandcashequivalents (9,411,422) (249,637) 2,666,819 3,214,969

Cashandcashequivalentsatthebeginningoftheyear 14,464,493 1,243,554 2,253,326 2,536,879

Cashandcashequivalentsattheendoftheyear 5,053,071 993,917 4,920,145 5,751,848

17

Cash Flow Statement


2018 Yearended

31JulyYearended

31JulyYearended

31JulyYearended

31July

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

OperatingactivitiesInterest received 82,189 140 9,674,406 97,027Dividends received 200,040 1,447,122 560 199,920Management fees paid (20,787,356) (1,343,007) (5,309,608) (10,909,848)Trustee’s fees paid (1,743,062) (78,320) (296,989) (821,420)Payments on purchase of investments (1,144,530,340) (90,205,533) (368,519,325) (1,280,968,932)Proceeds from sale of investments (including coupon

interest received from investments) 1,695,331,354 104,372,948 508,633,616 1,510,987,778Taxes paid (454,813) (123,206) (673,674) (360,624)Other operating expenses paid (1,142,064) (479,231) (1,874,485) (770,389)

Netcashgeneratedfromoperatingactivities 526,955,948 13,590,913 141,634,501 217,453,512

FinancingactivitiesProceeds from issue of units including equalisation 799,762,419 – 243,900,136 270,738,570Payments on redemption of units including

equalisation (1,262,583,348) (13,965,552) (385,069,334) (461,693,232)Distributions paid (75,262,998) – – (44,220,698)

Netcashusedinfinancingactivities (538,083,927) (13,965,552) (141,169,198) (235,175,360)

Net(decrease)/increaseincashandcashequivalents (11,127,979) (374,639) 465,303 (17,721,848)

Cashandcashequivalentsatthebeginningoftheyear 25,592,472 1,618,193 1,788,023 20,258,727

Cashandcashequivalentsattheendoftheyear 14,464,493 1,243,554 2,253,326 2,536,879


18

Distribution Statement


2019 Yearended

31JulyYearended

31JulyYearended

31JulyYearended

31July

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Amountavailablefordistributionbroughtforward 1,815,778,109 67,007,641 269,511,362 710,376,463

Net received or receivable/(paid or payable) on issue and redemption of units 314,548,231 (13,626,650) (39,412,191) 135,812,769

Income/(loss) before distributions after taxation 161,602,067 (4,456,654) (10,239,787) 67,185,090

Amountavailablefordistributiontounitholders 2,291,928,407 48,924,337 219,859,384 913,374,322Distributions to unitholders (75,974,142) – – (47,371,138)

Amountavailablefordistributioncarriedforward 2,215,954,265 48,924,337 219,859,384 866,003,184

2018 Yearended

31JulyYearended

31JulyYearended

31JulyYearended

31July

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Amountavailablefordistributionbroughtforward 2,396,009,475 75,887,888 391,273,162 968,077,720

Net paid or payable on issue and redemption of units (462,957,584) (13,767,151) (138,636,205) (206,303,009)(Loss)/income before distributions after taxation (37,733,412) 4,886,904 16,874,405 (6,969,704)

Amountavailablefordistributiontounitholders 1,895,318,479 67,007,641 269,511,362 754,805,007Distributions to unitholders (79,540,370) – – (44,428,544)

Amountavailablefordistributioncarriedforward 1,815,778,109 67,007,641 269,511,362 710,376,463

19



Yearended31July2019 Yearended31July2018

NoteDistribution

perunitDateof

distributionDistribution

perunitDateof

distributionUSD USD

Distributionhistory–HSBCAsianBondFund

ClassAM–HKDFirst distribution 11 0.0049 31 August 2018 0.0038 31 August 2017Second distribution 11 0.0048 28 September 2018 0.0037 29 September 2017Third distribution 11 0.0048 31 October 2018 0.0038 31 October 2017Fourth distribution 11 0.0051 30 November 2018 0.0038 30 November 2017Fifth distribution 11 0.0051 31 December 2018 0.0040 29 December 2017Sixth distribution 11 0.0049 31 January 2019 0.0042 31 January 2018Seventh distribution 11 0.0048 28 February 2019 0.0043 28 February 2018Eighth distribution 11 0.0047 29 March 2019 0.0044 29 March 2018Ninth distribution 11 0.0043 30 April 2019 0.0045 30 April 2018Tenth distribution 11 0.0044 31 May 2019 0.0047 31 May 2018Eleventh distribution 11 0.0043 28 June 2019 0.0048 29 June 2018Twelfth distribution 11 0.0042 31 July 2019 0.0049 31 July 2018 ClassAM–USD First distribution 11 0.0341 31 August 2018 0.0269 31 August 2017Second distribution 11 0.0334 28 September 2018 0.0261 29 September 2017Third distribution 11 0.0339 31 October 2018 0.0269 31 October 2017Fourth distribution 11 0.0360 30 November 2018 0.0270 30 November 2017Fifth distribution 11 0.0360 31 December 2018 0.0283 29 December 2017Sixth distribution 11 0.0348 31 January 2019 0.0294 31 January 2018Seventh distribution 11 0.0334 28 February 2019 0.0302 28 February 2018Eighth distribution 11 0.0332 29 March 2019 0.0311 29 March 2018Ninth distribution 11 0.0305 30 April 2019 0.0318 30 April 2018Tenth distribution 11 0.0312 31 May 2019 0.0333 31 May 2018Eleventh distribution 11 0.0299 28 June 2019 0.0335 29 June 2018Twelfth distribution 11 0.0292 31 July 2019 0.0346 31 July 2018

ClassAMH–AUD First distribution 11 0.0253 31 August 2018 0.0243 31 August 2017Second distribution 11 0.0242 28 September 2018 0.0235 29 September 2017Third distribution 11 0.0246 31 October 2018 0.0236 31 October 2017Fourth distribution 11 0.0257 30 November 2018 0.0229 30 November 2017Fifth distribution 11 0.0232 31 December 2018 0.0243 29 December 2017Sixth distribution 11 0.0221 31 January 2019 0.0253 31 January 2018Seventh distribution 11 0.0219 28 February 2019 0.0245 28 February 2018Eighth distribution 11 0.0213 29 March 2019 0.0237 29 March 2018Ninth distribution 11 0.0185 30 April 2019 0.0229 30 April 2018Tenth distribution 11 0.0175 31 May 2019 0.0241 31 May 2018Eleventh distribution 11 0.0166 28 June 2019 0.0235 29 June 2018Twelfth distribution 11 0.0137 31 July 2019 0.0261 31 July 2018

20




NoteDistribution

perunitDateof


perunitDateof

distributionUSD USD

Distributionhistory–HSBCAsianBondFund

ClassAMH–EUR First distribution 11 0.0179 31 August 2018 0.0187 31 August 2017Second distribution 11 0.0192 28 September 2018 0.0174 29 September 2017Third distribution 11 0.0130 31 October 2018 0.0183 31 October 2017Fourth distribution 11 0.0189 30 November 2018 0.0183 30 November 2017Fifth distribution 11 0.0179 31 December 2018 0.0191 29 December 2017Sixth distribution 11 0.0043 31 January 2019 0.0195 31 January 2018Seventh distribution 11 0.0150 28 February 2019 0.0197 28 February 2018Eighth distribution 11 0.0141 29 March 2019 0.0188 29 March 2018Ninth distribution 11 0.0062 30 April 2019 0.0171 30 April 2018Tenth distribution 11 0.0088 31 May 2019 0.0181 31 May 2018Eleventh distribution 11 0.0103 28 June 2019 0.0182 29 June 2018Twelfth distribution 11 0.0046 31 July 2019 0.0170 31 July 2018 ClassID–USD First distribution 11 0.3982 31 July 2019 0.3874 31 July 2018

ClassZD–USD First distribution 11 0.4764 31 July 2019 0.4535 31 July 2018

Distributionhistory–HSBCAsianHighYieldBondFund

ClassAM–HKD First distribution 11 0.0065 31 August 2018 0.0052 31 August 2017Second distribution 11 0.0065 28 September 2018 0.0054 29 September 2017Third distribution 11 0.0065 31 October 2018 0.0052 31 October 2017Fourth distribution 11 0.0074 30 November 2018 0.0053 30 November 2017Fifth distribution 11 0.0076 31 December 2018 0.0056 29 December 2017Sixth distribution 11 0.0075 31 January 2019 0.0058 31 January 2018Seventh distribution 11 0.0068 28 February 2019 0.0057 28 February 2018Eighth distribution 11 0.0065 29 March 2019 0.0058 29 March 2018Ninth distribution 11 0.0064 30 April 2019 0.0060 30 April 2018Tenth distribution 11 0.0064 31 May 2019 0.0063 31 May 2018Eleventh distribution 11 0.0064 28 June 2019 0.0065 29 June 2018Twelfth distribution 11 0.0062 31 July 2019 0.0069 31 July 2018

21




NoteDistribution

perunitDateof


perunitDateof

distributionUSD USD

Distributionhistory–HSBCAsianHighYieldBondFund

ClassAM–USD First distribution 11 0.0503 31 August 2018 0.0400 31 August 2017Second distribution 11 0.0500 28 September 2018 0.0415 29 September 2017Third distribution 11 0.0506 31 October 2018 0.0406 31 October 2017Fourth distribution 11 0.0576 30 November 2018 0.0412 30 November 2017Fifth distribution 11 0.0595 31 December 2018 0.0433 29 December 2017Sixth distribution 11 0.0581 31 January 2019 0.0450 31 January 2018Seventh distribution 11 0.0530 28 February 2019 0.0442 28 February 2018Eighth distribution 11 0.0506 29 March 2019 0.0450 29 March 2018Ninth distribution 11 0.0495 30 April 2019 0.0467 30 April 2018Tenth distribution 11 0.0499 31 May 2019 0.0486 31 May 2018Eleventh distribution 11 0.0497 28 June 2019 0.0510 29 June 2018Twelfth distribution 11 0.0480 31 July 2019 0.0538 31 July 2018 ClassAMH–AUD First distribution 11 0.0348 31 August 2018 0.0327 31 August 2017Second distribution 11 0.0339 28 September 2018 0.0336 29 September 2017Third distribution 11 0.0343 31 October 2018 0.0322 31 October 2017Fourth distribution 11 0.0391 30 November 2018 0.0318 30 November 2017Fifth distribution 11 0.0376 31 December 2018 0.0339 29 December 2017Sixth distribution 11 0.0366 31 January 2019 0.0357 31 January 2018Seventh distribution 11 0.0338 28 February 2019 0.0332 28 February 2018Eighth distribution 11 0.0315 29 March 2019 0.0322 29 March 2018Ninth distribution 11 0.0299 30 April 2019 0.0319 30 April 2018Tenth distribution 11 0.0286 31 May 2019 0.0334 31 May 2018Eleventh distribution 11 0.0285 28 June 2019 0.0340 29 June 2018Twelfth distribution 11 0.0250 31 July 2019 0.0379 31 July 2018

ClassAMH–EUR First distribution 11 0.0325 31 August 2018 0.0308 31 August 2017Second distribution 11 0.0344 28 September 2018 0.0321 29 September 2017Third distribution 11 0.0282 31 October 2018 0.0306 31 October 2017Fourth distribution 11 0.0396 30 November 2018 0.0312 30 November 2017Fifth distribution 11 0.0408 31 December 2018 0.0331 29 December 2017Sixth distribution 11 0.0280 31 January 2019 0.0346 31 January 2018Seventh distribution 11 0.0337 28 February 2019 0.0324 28 February 2018Eighth distribution 11 0.0307 29 March 2019 0.0316 29 March 2018Ninth distribution 11 0.0241 30 April 2019 0.0309 30 April 2018Tenth distribution 11 0.0264 31 May 2019 0.0317 31 May 2018Eleventh distribution 11 0.0298 28 June 2019 0.0341 29 June 2018Twelfth distribution 11 0.0228 31 July 2019 0.0355 31 July 2018

ClassZD–USD First distribution 11 0.6119 31 July 2019 0.7844 31 July 2018


22

Notes to the Financial Statements

1 TheTrust

HSBC Investment Funds Trust (“the Trust”) is an open ended umbrella unit trust which was established under a trust deed dated 13 November 1995, as amended (“the Trust Deed”), and was governed by the laws of the Cayman Islands. The Trust was registered under the Mutual Funds Law of the Cayman Islands on 10 November 1995. With effect on and from 29 August 2017 (“the Effective Date”), the domicile of the Trust was changed from Cayman Islands to Hong Kong. Following the change of domicile of the Trust to Hong Kong, the Trust is governed by Hong Kong laws with effect on and from the Effective Date. The four sub–funds (“the sub–funds”) of the Trust included under this report are:

– HSBC Asian Bond Fund– HSBC China Momentum Fund– HSBC China Growth Fund– HSBC Asian High Yield Bond Fund

The sub–funds included under this report commenced their operations on the dates as set out below:

Date of commencement

HSBC Asian Bond Fund 13 November 1995HSBC China Momentum Fund 28 October 2003HSBC China Growth Fund 5 July 2007HSBC Asian High Yield Bond Fund 23 May 2011

The objective of HSBC Asian Bond Fund is to achieve a reasonably high income whilst maintaining a prudent policy of capital conservation for the unitholders through investing in fixed interest securities and government bonds within the Asian region.

The objective of HSBC China Momentum Fund is to achieve long-term capital appreciation by investing in securities issued by or linked to the companies that are positioned to benefit from the strong economic growth and rising investment opportunities in Mainland China (“China”).

The objective of HSBC China Growth Fund is to seek long-term capital growth by investing in a portfolio of equities issued by companies located in China or deriving a preponderant part of their income and/or assets from China, and instruments linked to such investments.

The objective of HSBC Asian High Yield Bond Fund is to achieve a higher level of income and capital appreciation through investing primarily in a diversified portfolio of higher yielding fixed income securities including investment grade,

non-investment grade and unrated bonds that are primarily denominated in United States dollars, traded or issued by issuers in the Asian markets.

The sub-funds are authorised by the Hong Kong Securities and Futures Commission (“SFC”) under Section 104 of the Hong Kong Securities and Futures Ordinance (“HKSFO”) and are governed by the Hong Kong Code on Unit Trusts and Mutual Funds issued by the SFC.

The financial statements of the sub-funds are presented in United States dollars.

The Trust Deed does not contain any requirement that a combined set of financial statements for the Trust itself be prepared.

2 Significantaccountingpolicies

(a) Statementofcompliance

The financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards (“HKFRSs”), which as a collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards (“HKASs”) and Interpretations issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”), accounting principles generally accepted in Hong Kong, the relevant disclosure provisions of the Trust Deed, as amended, and the relevant disclosure provisions of the Hong Kong Code on Unit Trusts and Mutual Funds issued by the SFC. A summary of the significant accounting policies adopted by the Trust is set out below.

(b) Basisofpreparationofthefinancialstatements

The functional and presentation currency of the sub-funds is the United States dollar reflecting the fact that a majority of the participating redeemable units of the sub-funds are issued and redeemed in United States dollars.

The financial statements are prepared on a fair value basis for financial assets and financial liabilities at fair value through profit or loss and derivative financial instruments. Other financial assets and financial liabilities are stated at amortised cost or redemption amount (redeemable units).

The preparation of financial statements in conformity with HKFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors

23


that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The accounting policies have been applied consistently by the sub-funds and are consistent with those used in the previous year.

(c) Changesinaccountingpolicies

The HKICPA has issued a number of new HKFRSs and amendments to HKFRSs that are first effective for the current accounting period of the sub-funds. Of these, the following developments are relevant to the sub-funds’ financial statements:

(i) HKFRS 9, Financial instruments

The sub-funds have not applied any new standard or interpretation that is not yet effective for the current accounting period (see note 16), except for the amendments to HKFRS 9, Prepayment features with negative compensation which have been adopted at the same time as HKFRS 9.

As permitted by the transition provisions of HKFRS 9, comparative information throughout these financial statements has not generally been restated to reflect the requirements of the standard.

Except for the changes below, the sub-funds have consistently applied the accounting policies as set out in Note 2(e) to all periods presented in these financial statements.

HKFRS9,FinancialInstruments

HKFRS 9 sets out requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items. This standard replaces HKAS 39 Financial Instruments: Recognition and Measurement.

As a result of the adoption of HKFRS 9, the sub-funds have adopted consequential amendments to HKAS 1 Presentation of Financial Statements, which require:

– impairment of financial assets to be presented in a separate line item in the statement of comprehensive income. The sub-funds did not previously report any incurred losses; and

– separate presentation in the statement of comprehensive income of interest revenue from financial assets measured at amortised cost or fair value through other comprehensive income (“FVOCI”) calculated using the effective interest method.

Additionally, the sub-funds have adopted consequential amendments to HKFRS 7 Financial Instruments: Disclosures, which are applied to disclosures about 2019 but have not generally been applied to comparative information.

The adoption of HKFRS 9 had no material impact on the net assets attributable to unitholders of the sub-funds.

(i) Classification and measurement of financial assets and financial liabilities

HKFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, FVOCI and fair value through profit or loss (“FVTPL”). The classification of financial assets under HKFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. HKFRS 9 eliminates the previous HKAS 39 categories of held to maturity, loans and receivables and available for sale. Under HKFRS 9, derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never separated. Instead, the hybrid financial instrument as a whole is assessed for classification.

HKFRS 9 largely retains the existing requirements in HKAS 39 for the classification and measurement of financial liabilities.

The adoption of HKFRS 9 has not had a significant effect on the sub-funds’ accounting policies related to financial liabilities and derivative financial instruments.

24


For an explanation of how the sub-funds classify and measure financial instruments and account for related gains and losses under HKFRS 9, see Note 2(e).

The following table below explains the original measurement categories under HKAS 39 and the new measurement categories under HKFRS 9 for each class of the sub-funds’ financial assets as at 1 August 2018.

Original classification under HKAS 39

New classification under HKFRS 9

Financialassets

Cash and cash equivalents Loans and receivables Amortised costDividends receivable Loans and receivables Amortised costInterest receivable Loans and receivables Amortised costSubscriptions receivable Loans and receivables Amortised costAmounts due from brokers Loans and receivables Amortised costEquity instruments Held-for-trading FVTPLDebt instruments Held-for-trading FVTPLDerivative financial instruments Held-for-trading FVTPLCollective investment schemes Held-for-trading FVTPL

The measurement categories for all financial liabilities remain the same. The carrying amounts for all financial liabilities at 1 August 2018 have not been impacted by the initial application of HKFRS 9.

(ii) Impairment of financial assets

HKFRS 9 replaces the “incurred loss” model in HKAS 39 with an expected credit losses (“ECLs”) model. The new impairment model applies to financial assets measured at amortised cost and debt instruments at FVOCI, but not to financial assets measured at FVTPL. Under HKFRS 9, credit losses are recognised earlier than under HKAS 39.

The effect of adopting HKFRS 9 on the carrying amounts of financial assets at 1 August 2018 relates solely to the new impairment requirements. The Manager considers the probability of default to be minimal as the counterparties have a strong capacity to meet their contractual obligations in the near term. There is no impairment allowance recognised on interest receivable, dividends receivable, subscriptions receivable, amounts due from brokers and cash and cash equivalents on the initial application of HKFRS 9’s impairment requirements as at 1 August 2018. Therefore, the carrying amounts of the financial assets remain the same.

(iii) Transition

Changes in accounting policies resulting from the adoption of HKFRS 9 have been applied retrospectively, except as described below.

– Comparative periods have not generally been restated. Differences in the carrying amounts of financial assets resulting from the adoption of HKFRS 9 are recognised in the net assets attributable to unitholders as at 1 August 2018. Accordingly, the information presented for 2018 does not reflect the requirements of HKFRS 9, but rather those of HKAS 39.

– The following assessments have been made on the basis of the facts and circumstances that existed at the date of initial application.

– The determination of the business model within which a financial asset is held.

– The revocation of previous designations of certain financial assets as measured at FVTPL.

(d) Foreigncurrencytranslation

Foreign currency transactions during the year are translated into the United States dollar at the exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated into the reporting currencies of the United States dollar at the foreign exchange rates ruling at the date of the statement of financial position. Foreign currency exchange differences arising on translation and realised gains and losses on disposals or settlements of monetary assets and liabilities are recognised in profit or loss.

Foreign currency exchange differences relating to investments at fair value through profit or loss are included in net gains or losses from financial instruments at fair value through profit or loss. All other foreign currency exchange differences relating to monetary items including cash and cash equivalents are presented separately in profit or loss.

25


(e) Financialinstruments

(i) Classification

(A) Policy applicable from 1 August 2018

On initial recognition, the sub-funds classify financial assets as measured at amortised cost or FVTPL.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:

– it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

– its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (“SPPI”).

All other financial assets of the sub-funds are measured at FVTPL.

Business model assessment

In making an assessment of the objective of the business model in which a financial asset is held, the sub-funds consider all of the relevant information about how the business is managed, including:

– the documented investment strategy and the execution of this strategy in practice. This includes whether the investment strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realising cash flows through the sale of the assets;

– how the performance of the portfolio is evaluated and reported to the sub-funds’ management;

– the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;

– how the investment manager is compensated: e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and

– the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with the sub-funds’ continuing recognition of the assets.

The sub-funds have determined that it has two business models.

– Held-to-collect business model: this includes interest receivable, dividends receivable, subscriptions receivable, amounts due from brokers and cash and cash equivalents. These financial assets are held to collect contractual cash flow.

– Other business model: this includes equity instruments, debt instruments, collective investment schemes and derivative financial instruments. These financial assets are managed and their performance is evaluated, on a fair value basis, with frequent sales taking place.

Assessment whether contractual cash flows are SPPI

For the purposes of this assessment, “principal” is defined as the fair value of the financial asset on initial recognition. “Interest” is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are SPPI, the sub-funds consider the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of

26


contractual cash flows such that it would not meet this condition. In making this assessment, the sub-funds consider:

– contingent events that would change the amount or timing of cash flows;

– leverage features;

– prepayment and extension features;

– terms that limit the sub-funds’ claim to cash flows from specified assets (e.g. non-recourse features); and

– features that modify consideration for the time value of money (e.g. periodical reset of interest rates).

The sub-funds classify their investments based on the business model and contractual cash flows assessment. Accordingly, the sub-funds classify all their equity instruments, debt instruments, collective investment schemes and derivative financial instruments into financial assets at FVTPL category. Financial assets measured at amortised cost include interest receivable, dividend receivables, subscriptions receivable, amounts due from brokers and cash and cash equivalents. Financial liabilities that are not at fair value through profit or loss included bank overdrafts redemptions payable, amounts due to brokers, taxes payable, distributions payable and other payables.

All derivative financial instruments in a net receivable position (positive fair value) are reported as financial assets. All derivative financial instruments in a net payable position (negative fair value) are reported as financial liabilities.

Reclassifications

Financial assets are not reclassified subsequent to their initial recognition unless the sub-funds was to change its business model for managing financial assets, in which case all affected financial assets would be reclassified on the first day of the first reporting period following the change in the business model.

(B) Policy applicable prior to 1 August 2018

All of the sub-funds’ investments were classified as financial assets or financial liabilities at fair value through profit or loss. This category comprised financial instruments held for trading, which were instruments that the sub-funds had acquired principally for the purpose of short-term profit-taking. These included investments in equities and debt securities, equity-linked instruments, futures contracts, forward contracts and unit trusts.

All derivative financial instruments in a net receivable position (positive fair value) were reported as financial assets. All derivative financial instruments in a net payable position (negative fair value) were reported as financial liabilities.

Financial assets at amortised cost that were classified as loans and receivables included interest receivable, dividends receivable, subscriptions receivable and amounts due from brokers.

Financial liabilities at amortised cost included bank overdrafts, redemptions payable, amounts due to brokers, taxes payable, distributions payable and other payables. Financial liabilities arising from the redeemable units issued by HSBC Asian Bond Fund, HSBC China Growth Fund and HSBC Asian High Yield Bond Fund were carried at the redemption amount.

(ii) Recognition

The sub-funds recognise financial assets and financial liabilities on the date they become a party to the contractual provisions of the instruments.

A regular way purchase or sale of financial assets is recognised using trade date accounting. From this date any gains and losses arising from changes in fair value of the financial assets or financial liabilities are recorded.

Financial liabilities are not recognised unless one of the parties has performed their obligations under the contract or the contract is a derivative contract not exempted from the scope of HKFRS 9.

27


(iii) Measurement

Financial instruments are measured initially at fair value (transaction price). Transaction costs on financial assets and liabilities at fair value through profit or loss are expensed immediately, while on other financial instruments they are amortised.

Subsequent to initial recognition, all instruments classified at fair value through profit or loss are measured at fair value with changes in their fair value recognised in profit or loss.

Financial assets classified as measured at amortised cost are carried at amortised cost using the effective interest rate method, less impairment losses, if any.

Financial liabilities other than those at fair value through profit or loss are measured at amortised cost using the effective interest rate method. Financial liabilities arising from the redeemable units issued by the sub-funds are carried at the redemption amount representing the unitholders’ right to a residual interest in the sub-funds’ assets.

(iv) Fair value measurement principles

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the sub-funds have access at that date. The fair value of a liability reflects its non-performance risk.

When available, the sub-funds measure the fair value of an instrument using the quoted price in an active market for that instrument provided such price is within the bid ask spread. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. In circumstances where the quoted price is not within the bid ask spread, the Manager of the sub-funds will determine the points within the bid ask spread that are most representative of the fair value.

When there is no quoted price in an active market, the sub-funds use valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all the factors that market participants would take into account in pricing a transaction.

The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price – i.e. the fair value of the consideration given or received. If the sub-funds determine that the fair value at initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique that uses only data from observable markets, the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value at initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is supported wholly by observable market data or the transaction is closed out.

If an asset or a liability measured at fair value has a bid price and an ask price, the sub-funds measures assets and long positions at a bid price and liabilities and short positions at an ask price.

Portfolios of financial assets and financial liabilities that are exposed to market risk and credit risk that are managed by the Sub-funds on the basis of the net exposure to either market or credit risk, are measured on the basis of a price that would be received to sell a net long position (or paid to transfer a net short position) for a particular risk exposure. Those portfolio-level adjustments are allocated to the individual assets and liabilities on the basis of the relative risk adjustment of each of the individual instruments in the portfolio.

The sub-funds recognise transfers between levels of the fair value hierarchy as of the end of the reporting period during which the change has occurred.

(v) Amortised cost measurement principles

The amortised cost of a financial asset or liability is the amount at which the financial asset or liability is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between the initial amount recognised and the maturity amount, minus any reduction for impairment.

(vi) Impairment

(A) Policy applicable from 1 August 2018

The sub-funds recognise loss allowances for ECLs on financial assets measured at amortised cost.

28


The sub-funds measure loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured at 12-month ECLs:

– financial assets that are determined to have low credit risk at the reporting date; and

– other financial assets for which credit risk (i.e. the risk of default occurring over the expected life of the asset) has not increased significantly since initial recognition.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the sub-fund consider reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the sub-funds’ historical experience and informed credit assessment and including forward-looking information.

The sub-fund assume that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.

The sub-funds consider a financial asset to be in default when:

– the borrower is unlikely to pay its credit obligations to the sub-funds in full, without recourse by the sub-funds to actions such as realising security (if any is held); or

– the financial asset is more than 90 days past due.

The sub-funds consider a financial asset to have low credit risk when the credit rating of the counterparty is equivalent to the globally understood definition of “investment grade”. The sub-funds consider this to be Baa3 or higher per Moody’s or BBB- or higher per Standard & Poor’s.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the sub-funds are exposed to credit risk.

Measurement of ECLs

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the sub-funds expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

Credit-impaired financial assets

At each reporting date, the sub-funds assess whether financial assets carried at amortised cost are credit-impaired. A financial asset is “credit-impaired” when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Evidence that a financial asset is credit-impaired includes the following observable data:

– significant financial difficulty of the borrower or issuer;

– a breach of contract such as a default or being more than 90 days past due; or

– it is probable that the borrower will enter bankruptcy or other financial reorganisation.

Presentation of allowance for ECLs in the statement of assets and liabilities

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.

29


Write-off

The gross carrying amount of a financial asset is written off when the sub-funds has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.

(B) Policy applicable prior to 1 August 2018

Financial assets that were stated at cost or amortised cost were reviewed at each date of the statement of financial position to determine whether there is objective evidence of impairment. If any such indication exists, an impairment loss is recognised in profit or loss as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate.

If in a subsequent period the amount of an impairment loss recognised on a financial asset carried at amortised cost decreases and the decrease can be linked objectively to an event occurring after the write down, the write down is reversed through profit or loss.

(vii) Derecognition

The sub-funds derecognise a financial asset when the contractual rights to the cash flows from the financial asset expire or they transfer the financial assets and the transfer qualifies for derecognition in accordance with HKRFS 9.

The sub-funds use the weighted average method to determine realised gains and losses on derecognition.

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or has expired.

(viii) Offsetting

Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when the sub-funds have a legally enforceable right to offset the recognised amounts and the transactions are intended to be settled on a net basis or simultaneously, e.g. through a market clearing mechanism.

(ix) Specific instruments

Cash and cash equivalents

Cash comprises current deposits with banks. Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash, are subject to an insignificant risk of changes in value, and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes. Bank overdrafts that are repayable on demand and form an integral part of the Fund’s cash management are also included as a component of cash and cash equivalents for the purpose of the cash flow statement.

(f) Revenuerecognition

Provided it is probable that the economic benefits will flow to the sub-funds and the revenue and costs, if applicable, can be measured reliably, revenue is recognised in profit or loss as follows:

(i) Dividends

Dividend income from listed investments is recognised when the share price of the investment goes ex-dividend. Dividends from other investments are recognised in profit or loss as dividend income when declared. In some cases, the sub-funds may choose to receive dividends in the form of additional shares rather than cash. In such cases, the sub-funds recognise the dividend income for the amount of the equivalent cash dividend with the corresponding debit treated as an additional investment.

(ii) Interest income

Interest income is recognised in profit or loss as it accrues, using the effective interest rate method using the rate exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of the financial asset. Interest income on bank deposits and amount due from brokers is disclosed separately on the face of the statement of comprehensive income. Interest income on debt securities is included in net gains or losses from financial instruments at fair value through profit or loss.

(g) Expenses

All expenses are recognised in profit or loss on an accrual basis.

30


(h) Foreignexchangegainsandlosses

Foreign exchange gains and losses on financial assets and financial liabilities at fair value through profit or loss are recognised together with other changes in the fair value. Included in profit or loss line item Net foreign exchange (losses)/gains are net of foreign exchange gains and losses on monetary financial assets and financial liabilities other than those classified at fair value through profit or loss.

(i) Relatedparties

(a) A person, or a close member of that person’s family, is related to the Trust if that person:

(i) has control or joint control over the Trust;

(ii) has significant influence over the Trust; or

(iii) is a member of the key management personnel of the Trust.

(b) An entity is related to the Trust if any of the following conditions applies:

(i) The entity and the Trust are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).

(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).

(iii) Both entities are joint ventures of the same third party.

(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.

(v) The entity is a post-employment benefit plan for the benefit of employees of an entity related to the Trust.

(vi) The entity is controlled or jointly controlled by a person identified in (a).

(vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

(viii) The entity, or any member of a group of which it is a part, provides key management personnel services to the Trust.

Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.

(j) Subscriptionsandredemptions

The sub-funds recognise unitholders’ subscriptions and allot units upon receipt of a valid subscription application and derecognise them upon receipt of a valid redemption application.

(k) Unitsinissue

The sub-funds classify financial instruments issued as financial liabilities or equity instruments in accordance with the substance of the contractual terms of the instruments.

A puttable financial instrument that includes a contractual obligation for the issuer to repurchase or redeem that instrument for cash or another financial asset is classified as an equity instrument if it meets the following conditions:

(i) it entitles the holder to a pro rata share of the sub-funds’ net assets in the event of the sub-funds’ liquidation;

(ii) it is in the class of instruments that is subordinate to all other classes of instruments;

(iii) all financial instruments in the class of instruments that is subordinate to all other classes of instruments have identical features;

(iv) apart from the contractual obligation for the sub-funds to repurchase or redeem the instrument for cash or another financial asset, the instrument does not include any other features that would require classification as a liability; and

(v) the total expected cash flows attributable to the instrument over its life are based substantially on profit or loss, the change in the recognised net assets or the change in the fair value of the recognised and unrecognised net assets of the sub-funds over the life of the instrument.

HSBC China Momentum Fund has only one class of redeemable units in issue. The redeemable units of this sub-fund meet all of these conditions and are classified as equity.

31


3 Netgains/(losses)fromfinancialinstrumentsatfairvaluethroughprofitorloss

2019 Yearended

31JulyYearended

31JulyYearended

31JulyYearended

31July

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Realised gains/(losses) 56,619,580 (54,777) (1,111,390) 30,778,071Unrealised gains/(losses) 123,574,606 (4,167,351) (9,479,061) 46,792,026

180,194,186 (4,222,128) (10,590,451) 77,570,097

2018 Yearended

31JulyYearended

31JulyYearended

31JulyYearended

31July

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Realised gains 82,839,079 10,812,674 57,931,764 42,791,940Unrealised losses (97,410,607) (5,468,583) (42,814,088) (37,633,157)

(14,571,528) 5,344,091 15,117,676 5,158,783

HSBC Asian Bond Fund, HSBC China Growth Fund and HSBC Asian High Yield Bond Fund have multiple classes of redeemable units in issue. All the classes are the most subordinate classes of financial instruments in the respective sub-funds and rank pari passu in all material respects and have the same terms and conditions other than different currencies, fees rates, and/or different distribution policies, etc. The redeemable units provide unitholders with the right to require redemption for cash at a value proportionate to the unitholders’ share in the sub-funds’ net assets at each redemption date, and also in the event of the sub-funds’ liquidation. The redeemable units of these sub-funds are classified as financial liabilities and are measured at the present value of the redemption amounts.

(l) Distributionstoholdersofredeemableunits

Distributions to holders of redeemable units classified as financial liabilities are recognised in profit or loss as finance costs when they are authorised and no longer at the discretion of the sub-funds. Distributions to holders of

redeemable units classified as equity are classified as transactions with owners and recorded in the statement of changes in equity.

(m) Segmentreporting

An operating segment is a component of the sub-funds that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the sub-funds’ other components, whose operating results are reviewed regularly by the chief operating decision maker to make decisions about resources allocated to the segment and assess its performance, and for which discrete financial information is available. Segment results that are reported to the chief operating decision maker include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. The chief operating decision maker of the sub-funds is identified as the Manager, HSBC Investment Funds (Hong Kong) Limited.

32


4 Taxation

There are currently no taxes on income or gains under Cayman Islands law. Accordingly, no provision for Cayman Islands taxes is included in these financial statements.

No provision for Hong Kong profits tax has been made in the financial statements as the sub-funds are exempt from taxation under section 26A(1A) of the Hong Kong Inland Revenue Ordinance.

Interest income and dividend income received by the sub-funds may be subject to non-recoverable withholding tax imposed in the country of origin. Interest income and dividend income are recorded gross of such taxes and the withholding tax is recognised in profit or loss as incurred.

Under the current general provisions of the PRC Corporate Income Tax (“CIT”) Law and published tax circulars, the sub-funds are subject to PRC CIT withholding at the rate of 10% in respect of any PRC sourced income earned, including gains realised on the sale of shares of PRC listed companies (subject to temporary exemption under Circular 79 as discussed below), gains realised on the sale of PRC onshore bonds, dividend income derived from PRC listed companies where no PRC CIT has been withheld by the payer and interest income earned in respect of PRC bank deposits and PRC onshore bonds (unless specifically tax exempt). During the years ended 31 July 2019 and 2018, HSBC China Momentum Fund and HSBC China Growth Fund had investment in equity-linked notes and other similar equity-linked securities and instruments issued by institutions that have obtained the qualified foreign institutional investors (“QFII”) status (collectively referred to as “ELN”) linked to China A-shares. This withholding taxation basis should apply as the sub-funds are managed and operated in such a manner that they would not be considered as tax resident enterprises in China or otherwise as having taxable permanent establishment in the PRC. The CIT on dividend income are withheld by the PRC resident enterprises which the sub-funds invested in upon payment of dividend.

On 14 November 2014, the Ministry of Finance, the State Administration of Taxation and the China Securities Regulatory Commission have jointly promulgated the Circular Concerning the Temporary Exemption of the Corporate Income Tax for Gains Earned by QFII and RQFII from Transfer of Domestic Shares and Other Equity Interest Investment in China (“Circular 79”).

According to Circular 79, amongst other things:

(i) corporate income tax shall be exempt on a temporary basis on the gains earned by QFIIs from the transfer of domestic shares and other equity interest investment in China with effect from 17 November 2014; and

(ii) corporate income tax shall be imposed on such gains earned by QFIIs before 17 November 2014 in accordance with the tax laws.

Circular 79 is applicable for QFIIs without any establishment or place in China or the income derived by the QFIIs are not effectively connected with their establishment or place in China.

As a result of the promulgation of Circular 79, the Manager has decided on the following changes to the tax provision practice of the sub-funds:

(i) the sub-funds have ceased to withhold 10% of unrealised gains on their investments in equity-linked notes and other similar equity-linked securities and instruments issued by institutions that have obtained the QFII status (collectively referred to as “ELN”) linked to China A shares as a tax provision from 14 November 2014 (the last Valuation Day before 17 November 2014) on the basis that any gains subsequently realised from 17 November 2014 onwards will be temporarily exempt from corporate income tax; and

(ii) the sub-funds have ceased to withhold (or ceased to request the ELN issuers to withhold) 10% of realised gains on their investments in ELN linked to China A-shares as a tax provision from 17 November 2014.

Any tax provision, if made, will be reflected in the net asset value of the relevant sub-funds at the time of debit or release of such provision and thus will only impact on units which remain in the relevant sub-funds at the time of debit or release of such provision. Units which are redeemed prior to the time of debit of such provision will not be affected by reason of any insufficiency of the tax provision. Likewise, such units and the unitholders who have redeemed will not benefit from any release of excess tax provisions.

Investors may be advantaged or disadvantaged depending upon the final tax outcome as and when investors subscribed and/or redeemed the units of the relevant sub-funds. Investors should note that no unitholders who have redeemed their units in the sub-funds before the release of any excess tax provision shall be entitled to claim in

33


whatsoever form any part of the tax provision or withholding amounts released to the sub-funds, which amount will be reflected in the value of units in the sub-funds.

ForeignAccountTaxComplianceAct(“FATCA”)

On 18 March 2010, the Hiring Incentives to Restore Employment Act of 2010 added chapter 4 to Subtitle A (“Chapter 4”) of the US Internal Revenue Code (the “Code”). The provisions in Chapter 4 are commonly referred to as the Foreign Account Tax Compliance Act (“FATCA”). US Treasury regulations providing guidance on the due diligence, reporting, and withholding obligations under FATCA were passed and came into effect in January 2013 (“the Regulations”).

The Regulations require foreign financial institution (“FFI”) to provide the Internal Revenue Service (“IRS”) with information on certain U.S. persons invested in accounts outside of the U.S. and for certain non U.S. entities to provide information about any U.S. owners. The obligations of an FFI

under FATCA may be modified by an Intergovernmental Agreement (“IGA”) between the US and the FFI’s country of organization. The Cayman Islands entered into a Model 1 IGA on 29 November 2013, which provides for reporting and enforcement by FFIs to be facilitated by local authorities. The Cayman Islands also entered into a similar IGA with the United Kingdom. Therefore, all Cayman Islands domiciled “financial institutions” are subject to domestic legislation and regulations that implement both the Foreign Account Tax Compliance Act (“US FATCA”) and its UK equivalent (“UK FATCA” and together, “FATCA”). The due diligence and reporting regimes introduced by the domestic legislation and regulations apply to all such financial institutions irrespective of whether they have US or UK based account holders and/or have US or UK assets or source income.

Before the domicile of the Trust was changed from Cayman Islands to Hong Kong on 29 August 2017, the Trust was a non-reporting financial institution and not required to register for a Global Intermediary Identification Number (“GIIN”) for US FATCA purposes.

Taxationinprofitorlossrepresents:

2019 Yearended

31JulyYearended

31JulyYearended

31JulyYearended

31July

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Overseas withholding tax 226,567 – – 142,819PRC withholding tax – 75,562 362,610 –

226,567 75,562 362,610 142,819

2018 Yearended

31JulyYearended

31JulyYearended

31JulyYearended

31July

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Overseas withholding tax 466,580 – – 364,683PRC withholding tax – 123,206 673,674 –

466,580 123,206 673,674 364,683

34


5 Financialassetsandfinancialliabilitiesatfairvaluethroughprofitorloss

2019

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Financialassetsatfairvaluethroughprofitorloss

Equities

Listed shares – 46,930,845 206,747,396 –

– 46,930,845 206,747,396 –

Debtsecurities

Listed bonds 2,211,203,239 – – 839,864,464Unlisted but quoted bonds 17,510,100 – – 15,330,957

2,228,713,339 – – 855,195,421

Otherinvestments

Equity-linked instruments – – 3,055,799 –Foreign currency forward contracts 181 – – 448Futures contracts – – – –Listed unit trusts – 864,037 4,787,235 –Unlisted but quoted unit trusts 1,581,000 – – 1,581,000

1,581,181 864,037 7,843,034 1,581,448

2,230,294,520 47,794,882 214,590,430 856,776,869

Financialliabilitiesatfairvaluethroughprofitorloss

Otherinvestments

Foreign currency forward contracts (662,950) – – (201,415)

2,229,631,570 47,794,882 214,590,430 856,575,454

Net investments, at cost 2,159,617,444 38,249,517 191,454,296 829,192,210Net unrealised appreciation in value of investments 70,014,126 9,545,365 23,136,134 27,383,244

Net investments at fair value 2,229,631,570 47,794,882 214,590,430 856,575,454

35


2018

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Financialassetsatfairvaluethroughprofitorloss

Equities

Listed shares – 65,127,537 262,862,238 –

– 65,127,537 262,862,238 –

Debtsecurities

Listed bonds 1,797,448,591 – – 695,104,646Unlisted but quoted bonds 4,888,505 – – 6,887,109

1,802,337,096 – – 701,991,755

Otherinvestments

Equity-linked instruments – 540,616 2,307,912 –Foreign currency forward contracts 60,496 – – –Futures contracts 74,374 – – –Listed unit trusts – 183,417 – –Unlisted but quoted unit trusts 1,488,300 – – 1,494,300

1,623,170 724,033 2,307,912 1,494,300

1,803,960,266 65,851,570 265,170,150 703,486,055

Financialliabilitiesatfairvaluethroughprofitorloss

Otherinvestments

Foreign currency forward contracts (45,322) – – (37,133)

1,803,914,944 65,851,570 265,170,150 703,448,922

Net investments, at cost 1,852,288,139 52,138,854 232,554,955 719,769,886Net unrealised (depreciation)/appreciation in value of

investments (48,373,195) 13,712,716 32,615,195 (16,320,964)

Net investments at fair value 1,803,914,944 65,851,570 265,170,150 703,448,922

36


6 Amountsduefrom/(to)brokers

2019

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Balanceduefrombrokers

Amounts receivable on sales of investments 15,161,078 663,208 3,770,606 821,584Margin deposits 1,282,228 – – 110,437

16,443,306 663,208 3,770,606 932,020

Balanceduetobrokers

Amounts payable on purchases of investments 33,593,607 481,861 4,748,011 3,092,969

2018

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Balanceduefrombrokers

Amounts receivable on sales of investments 6,621,091 118,485 5,725,435 5,350,141Margin deposits 1,355,832 – – –

7,976,923 118,485 5,725,435 5,350,141

Balanceduetobrokers

Amounts payable on purchases of investments 8,693,955 540,207 3,100,297 5,174,670

Margin deposits represent cash deposits with brokers transferred as collateral against open forward contracts.

37


7 Transactions with theTrustee, Manager andConnectedPersons

The following is a summary of significant related party transactions or transactions entered into during the year between the Trust and the Trustee, the Manager and their Connected Persons. Connected Persons are those as defined in the Hong Kong Code on Unit Trusts and Mutual Funds issued by the SFC. All transactions during the year between the Trust, the Trustee and the Manager and their Connected Persons were entered into in the ordinary course of business

and under normal commercial terms. To the best of the knowledge of the Trustee and the Manager, the Trust did not have any other transactions with Connected Persons except for those disclosed below.

(a) The Manager of the sub funds is HSBC Investment Funds (Hong Kong) Limited, which receives a management fee, payable monthly in arrears, equivalent to a percentage per annum of the net asset value of the sub funds as follows:

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


Fund

For “AC – HKD” class units N/A N/A 1.5% 1.25%For “AC – USD” class units 1% 1.75% 1.5% 1.25%For “AM – HKD” class units 1% N/A N/A 1.25%For “AM – USD” class units 1% N/A N/A 1.25%For “AMH – AUD” class units 1% N/A N/A 1.25%For “AMH – EUR” class units 1% N/A N/A 1.25%For “IC – USD” class units 0.55% N/A N/A 0.85%For “ID – USD” class units 0.55% N/A N/A N/AFor “IM – USD” class units N/A N/A N/A 0.85%For “ZD – USD” class units N/A N/A N/A N/A

Up to 29 August 2017, the Manager, as the registrar’s agent, was also entitled to registrar’s fees per annum for each class

of units and fees for various administrative functions performed on behalf of the Funds.

2019

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

(i) Management fees for the year 16,543,076 978,958 3,353,991 9,198,332(ii) Registrar’s fees and other administrative fees paid

to the Manager for the year – – – –(iii) Management fees payable at year end 1,847,018 80,484 298,167 970,976(iv) Registrar’s fees and other administrative fees

payable to the Manager at year end – – – –

38


2018

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

(i) Management fees for the year 20,261,717 1,337,070 5,191,433 10,675,483(ii) Registrar’s fees and other administrative fees paid

to the Manager for the year 22,110 780 4,429 13,651(iii) Management fees payable at year end 1,424,959 101,340 372,419 771,536(iv) Registrar’s fees and other administrative fees

payable to the Manager at year end – – – 7,903

(b) Bank accounts are maintained with members of the HSBC Group. Margin accounts are maintained with HSBC Bank Plc, which is a fellow subsidiary of the

Manager within the HSBC Group. The balances of these accounts, interest income and bank charges arising from these accounts are set out below:

2019

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

(i) Cash held at the year end 5,055,281 993,917 4,920,145 5,751,848(ii) Bank overdrafts at the year end 2,210 – – –(iii) Interest income earned for the year 198,434 1,049 4,517 124,177(iv) Bank charges for the year – – – –(v) Margin deposits held with a fellow subsidiary at

the year end 1,282,228 – – 110,437

2018

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

(i) Cash held at the year end 14,464,493 1,243,554 2,253,326 2,536,879(ii) Bank overdrafts at the year end – – – –(iii) Interest income earned for the year 82,189 144 605 97,027(iv) Bank charges for the year 6 – – –(v) Margin deposits held with a fellow subsidiary at

the year end 1,355,832 – – –

39


(c) With effect on and from 29 August 2017 (“the Effective Date”), the trustee of the sub funds changed from HSBC Trustee (Cayman) Limited to HSBC Institutional Trust Services (Asia) Limited (“the Trustee”), which are the fellow subsidiaries of the Manager within the HSBC Group. The Trustee receives a monthly fee equivalent

to a percentage per annum of the net asset value of the sub-funds. Up to the Effective Date, HSBC Trustee (Cayman) Limited was also entitled to monthly trustee’s fee per annum for the sub-funds. For the years ended 31 July 2019 and 2018, trustee’s fees were determined at the rates stated below:

HSBCAsianBondFund

HSBCChinaMomentum

FundHSBC

ChinaGrowthFund

HSBCAsianHighYield

BondFund

For “AC – HKD” class units N/A N/A 7 bps on NAV per annum

7 bps on NAV per annum

For “AC – USD” class units 7 bps on NAV per annum




For “AM – HKD” class units 7 bps on NAV per annum

N/A N/A 7 bps on NAV per annum

For “AM – USD” class units 7 bps on NAV per annum


For “AMH – AUD” class units 7 bps on NAV per annum


For “AMH – EUR” class units 7 bps on NAV per annum


For “IC – USD” class units 7 bps on NAV per annum


For “ID – USD” class units 7 bps on NAV per annum

N/A N/A N/A

For “IM – USD” class units N/A N/A N/A 7 bps on NAV per annum

For “ZD – USD” class units 7 bps on NAV per annum


40


In addition, the Trustee provides valuation services to the sub-funds in return for a daily fee. Prior to 10 December 2018, the daily valuation service fee was US$100. Effective from 10 December 2018, the daily valuation service fee is US$50 for each valuation per share class. The valuation fee is then

waived from 1 April 2019. On the Effective Date, the Trustee was appointed as the registrar of the sub-funds and was entitled to registrar’s fees per annum for each class of units and fees for various administrative functions performed on behalf of the sub-funds.

2019

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

(i) Trustee’s fees paid to HSBC Trustee (Cayman) Limited – – – –

(ii) Trustee’s fees payable to HSBC Trustee (Cayman) Limited at year end – – – –

(iii) Trustee’s fees paid to the Trustee 1,395,174 51,858 181,921 611,435(iv) Trustee’s fees payable to the Trustee at year end 141,611 3,189 13,914 54,653(v) Registrar’s fees and other administrative fees paid

to the Trustee for the year 120,012 2,276 19,010 99,468(vi) Registrar’s fees and other administrative fees

payable to the Trustee at year end – – – –

2018

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

(i) Trustee’s fees paid to HSBC Trustee (Cayman) Limited 161,875 6,704 26,551 77,361

(ii) Trustee’s fees paid to the Trustee 1,549,296 71,371 264,923 728,277(iii) Trustee’s fees payable to the Trustee at year end 128,082 6,124 21,579 60,202(iv) Registrar’s fees and other administrative fees paid

to the Trustee for the year 157,392 4,457 36,044 98,678(v) Registrar’s fees and other administrative fees

payable to the Trustee at year end – – – –

41


2019

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

(i) Safe custody fees for the year 119,355 9,911 43,355 53,596(ii) Safe custody fees payable at year end 12,307 715 6,463 5,277(iii) Safe custody transaction fees for the year 10,791 87,498 57,913 20,251(iv) Safe custody transaction fees payable at year end 1,789 5,443 5,285 1,325

2018

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

(i) Safe custody fees for the year 130,181 13,165 60,656 48,563(ii) Safe custody fees payable at year end 9,600 961 4,036 4,251(iii) Safe custody transaction fees for the year 8,934 67,078 66,189 14,582(iv) Safe custody transaction fees payable at year end 1,496 6,567 8,182 908

(d) With effect on and from the Effective Date, the safe custodian of the sub-funds changed from HSBC Trustee (Cayman) Limited to HSBC Institutional Trust Services (Asia) Limited, which are the fellow subsidiaries of the Manager within the HSBC Group. The safe custodian receives a monthly fee equivalent to 1 – 58 basis points

(2018: 1 – 55 basis points) based on sub-custodian value of the securities. The safe custodian also receives a transaction fee of US$4 – 109 effective from 5 December 2018 (2018: US$10 – 124) for each trade handled.

42


(e) In their purchases and sales of investments, the sub-funds utilise the brokerage services of The Hongkong and Shanghai Banking Corporation Limited, HSBC Bank plc Futures, HSBC China and HSBC Investment Funds

(Hong Kong) Limited, which are members of the HSBC Group. Details of transactions effected through these companies are as follows:

2019

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


Fund

The Hongkong and Shanghai Banking Corporation Limited

Commission paid for the year (in USD) – 14,222 55,052 –Average rate of commission – 0.08% 0.13% –Total aggregate value of such transactions for the year

(in USD) 273,988,231 18,764,882 43,486,286 390,047,528Percentage of such transactions in value to total

transactions for the year 12.88% 8.58% 8.03% 10.82%

HSBC Bank plc Futures

Commission paid for the year (in USD) – – – –Average rate of commission – – – –Total aggregate value of such transactions for the year

(in USD) 96,250 – – –Percentage of such transactions in value to total

transactions for the year 0.00% – – –

HSBC Investment Funds (Hong Kong) Limited


(in USD) 11,969,310 – – 24,082,116Percentage of such transactions in value to total

transactions for the year 0.56% – – 0.67%

HSBC China

Commision paid for the year (in USD) – – – –Average rate of commission – – – –Total aggregate valule of such transactions for the year 11,427,847 – – 11,523,013Percentage of such transactions in value to total


HSBC Bank PLC

Commision paid for the year (in USD) – – – –Average rate of commission – – – –Total aggregate valule of such transactions for the year – – – 10,156Percentage of such transactions in value to total

transactions for the year – – – 0.00%

43


2018

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


Fund

The Hongkong and Shanghai Banking Corporation Limited

Commission paid for the year (in USD) – 14,218 89,113 –Average rate of commission – 0.07% 0.09% –Total aggregate value of such transactions for the year

(in USD) 394,163,080 20,289,023 94,105,298 409,422,642Percentage of such transactions in value to total

transactions for the year 14.40% 10.47% 10.78% 14.96%

HSBC Bank plc Futures


(in USD) 642,507 – – –Percentage of such transactions in value to total

transactions for the year 0.02% – – –

HSBC Investment Funds (Hong Kong) Limited


(in USD) 1,506,000 – – 1,506,000Percentage of such transactions in value to total


8 Softcommissionarrangements

No soft commission arrangements were entered into with brokers for HSBC Asian Bond Fund and HSBC Asian High Yield Bond Fund during the year.

For HSBC China Momentum Fund and HSBC China Growth Fund, the Manager had entered into soft commission arrangements with brokers under which certain goods and services used to support investment decision making are

received by the Manager. The Manager did not make direct payment for these services but transacted an agreed amount of business with the brokers on behalf of the sub-funds. Commission was paid from the sub-funds on these transactions.

During the years ended 31 July 2019 and 31 July 2018, the goods and services utilised for the sub-funds were limited to research services only.

44


9 Unitsissuedandredeemed

2019

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


Fund

(a) “AC–HKD”classunits

Number of units in issue brought forward – – 31,927,985 181,183Units issued during the year – – 11,480,057 –Units redeemed during the year – – (18,979,763) (86,777)

Number of units in issue carried forward – – 24,428,279 94,406

(b) “AC–SGD”classunits

Number of units in issue brought forward – – – –Units issued during the year – – – –Units redeemed during the year – – – –

Number of units in issue carried forward – – – –

(c) “AC–USD”classunits

Number of units in issue brought forward 545,699 963,855 15,662,279 710,185Units issued during the year 923,832 – 3,963,975 647,293Units redeemed during the year (754,504) (205,871) (6,103,149) (227,948)

Number of units in issue carried forward 715,027 757,984 13,523,105 1,129,530

(d) “AM–HKD”classunits

Number of units in issue brought forward 294,774,220 – – 159,335,659Units issued during the year 399,469,813 – – 75,007,115Units redeemed during the year (260,820,142) – – (64,112,210)

Number of units in issue carried forward 433,423,891 – – 170,230,564

45


2019

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


Fund

(e) “AM–USD”classunits



(f) “AMH–AUD”classunits



(g) “AMH–EUR”classunits

Number of units in issue brought forward 1,096,127 – – 618,918Units issued during the year 866,015 – – 870,882Units redeemed during the year (659,135) – – (877,815)

Number of units in issue carried forward 1,303,007 – – 611,985

(h) “IC–USD”classunits

Number of units in issue brought forward 12,736,410 – – 463,719Units issued during the year 1,870,060 – – –Units redeemed during the year (9,566,816) – – (463,719)

Number of units in issue carried forward 5,039,654 – – –

(i) “ID–USD”classunits

Number of units in issue brought forward 2,838,014 – – –Units issued during the year 19,449 – – –Units redeemed during the year (169,856) – – –


46


2019

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


Fund

(j) “IM–USD”classunits

Number of units in issue brought forward – – – –Units issued during the year – – – 997,009Units redeemed during the year – – – –

Number of units in issue carried forward – – – 997,009

(k) “ZD–USD”classunits

Number of units in issue brought forward 12,284,437 – – 246,686Units issued during the year 3,382,426 – – 4,942Units redeemed during the year (2,379,210) – – (11,127)


(l) According to the Trust Deed, some of the classes are denominated in AUD, EUR, SGD and HKD for dealing, which are different from the reporting currencies of

respective sub-funds. The net asset value per unit for each class of the sub-funds in their respective denomination currencies as at year end is as follows:


Denominationcurrency

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


Fund


– “AC – HKD” class HKD – – 13.456 15.891– “AC – USD” class USD 14.007 64.546 13.154 15.782– “AM – HKD” class HKD 10.215 – – 9.910– “AM – USD” class USD 9.162 – – 9.832– “AMH – AUD” class AUD 9.671 – – 9.589– “AMH – EUR” class EUR 9.563 – – 9.379– “IC – USD” class USD 14.379 – – –– “ID – USD” class USD 10.200 – – –– “IM – USD” class USD – – – 10.027– “ZD – USD” class USD 10.554 – – 10.088

47


2018

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


Fund

(m) “AC–HKD”classunits

Number of units in issue brought forward – – 51,353,315 197,395Units issued during the year – – 48,875,199 141,456Units redeemed during the year – – (68,300,529) (157,668)

Number of units in issue carried forward – – 31,927,985 181,183

(n) “AC–SGD”classunits

Number of units in issue brought forward – – – 9,683Units issued during the year – – – –Units redeemed during the year – – – (9,683)

Number of units in issue carried forward – – – –

(o) “AC–USD”classunits

Number of units in issue brought forward 631,809 1,153,233 23,350,939 743,622Units issued during the year 278,838 – 10,117,012 174,295Units redeemed during the year (364,948) (189,378) (17,805,672) (207,732)

Number of units in issue carried forward 545,699 963,855 15,662,279 710,185

(p) “AM–HKD”classunits



(q) “AM–USD”classunits



48


2018

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


Fund

(r) “AMH–AUD”classunits



(s) “AMH–EUR”classunits

Number of units in issue brought forward 1,921,932 – – 1,334,392Units issued during the year 252,918 – – 82,109Units redeemed during the year (1,078,723) – – (797,583)


(t) “IC–USD”classunits

Number of units in issue brought forward 13,585,877 – – 1,341,644Units issued during the year 3,307,291 – – 473,799Units redeemed during the year (4,156,758) – – (1,351,724)


(u) “ID–USD”classunits

Number of units in issue brought forward 2,907,224 – – –Units issued during the year 263,318 – – –Units redeemed during the year (332,528) – – –


(v) “ZD–USD”classunits

Number of units in issue brought forward 1,431,325 – – 30,206Units issued during the year 11,276,880 – – 260,430Units redeemed during the year (423,768) – – (43,950)


49


(w) According to the Trust Deed, some of the classes are denominated in AUD, EUR, HKD and SGD for dealing, which are different from the reporting currencies of


Denominationcurrency

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


Fund


– “AC – HKD” class HKD – – 13.934 14.517– “AC – SGD” class SGD – – – –– “AC – USD” class USD 12.808 69.520 13.588 14.381– “AM – HKD” class HKD 9.788 – – 9.664– “AM – USD” class USD 8.760 – – 9.568– “AMH – AUD” class AUD 9.253 – – 9.342– “AMH – EUR” class EUR 9.146 – – 9.093– “IC – USD” class USD 13.089 – – 10.363– “ID – USD” class USD 9.648 – – –– “ZD – USD” class USD 9.986 – – 9.629

respective sub-funds. The net asset value per unit for each class of the sub-funds in their respective denomination currencies as at year end is as follows:

Units may be acquired and redeemed on any valuation date at the unit value determined on that day. The valuation date is every business day in Hong Kong except Saturday. The minimum investment and redemption amount for the sub-funds are as below:

(x) The capital of the sub-funds is represented by the net assets attributable to unitholders which are subject to subscriptions and redemptions of units. The Trust and the sub-funds do not have any externally imposed capital requirements.

Minimuminvestmentamount

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


Fund

A Class units US$ 1,000 US$ 3,000 US$ 1,000 US$ 1,000I Class units US$ 100,0001 – – US$ 1,000,000Z Class units – – – –

1 Before 1 April 2019, the minimum subsequent subscription for I Class units of HSBC Asian Bond Fund was USD1,000,000.

Minimumredemptionamount

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


Fund

A Class units US$ 1,000 US$ 3,000 US$ 1,000 US$ 1,000I Class units US$ 100,000 – – US$ 1,000,000Z Class units – – – –

50


The Class features and naming convention of the sub-funds are as below:

Accumulation units: These units normally do not declare any dividends and instead retain all net income, capital and capital gains within the price of the units. These classes are suffixed by a “C”.

Distribution units: These units may be offered with the following dividend declaration/payment frequencies. The classes with annual distribution declaration are suffixed by a “D”. The classes with monthly distribution declaration are suffixed by a “M”.

Currency Hedged units: Hedging will be performed in order to hedge (i) the base currency of the sub-fund; or (ii) the currency of the assets in which the sub-fund primarily invests back to the currency of denomination of the currency hedged classes. Hedged classes are suffixed by an “H” followed by the currency of denomination which is in addition to the suffix indicating whether a class is an accumulation unit or whether it is distribution unit.

10 Equalisation

The equalisation portion of received and receivable on issue of units or paid and payable on redemption of units is calculated based on the portion of the unit price related to undistributed accumulated net investment income and accumulated expenses of the unit at the date of issue or redemption.

11 Distributions

HSBCAsianBondFund

2019 2018USD USD

“AM–HKD”classunit

(a) Distributionsattributabletotheyear

Distributions declared and paid during the year– HK$0.0381 per unit on 272,976,881 units (August

2017: HK$0.0299 per unit on 438,328,828 units) 1,325,130 1,674,935

– HK$0.0373 per unit on 259,724,185 units (September 2017: HK$0.0291 per unit on 441,029,503 units) 1,239,910 1,642,968

– HK$0.0378 per unit on 236,439,108 units (October 2017: HK$0.0300 per unit on 426,586,252 units) 1,139,823 1,640,706

2019 2018USD USD

– HK$0.0402 per unit on 226,769,061 units (November 2017: HK$0.0300 per unit on 422,263,379 units) 1,165,006 1,622,332

– HK$0.0401 per unit on 222,623,182 units (December 2017: HK$0.0314 per unit on 407,942,453 units) 1,139,447 1,638,585

– HK$ 0.0388 per unit on 249,113,037 units (January 2018: HK$0.0328 per unit on 375,695,388 units) 1,231,865 1,575,756

– HK$0.0373 per unit on 291,619,896 units (February 2018: HK$0.0336 per unit on 369,484,158 units) 1,385,876 1,585,921

– HK$0.0370 per unit on 325,802,131 units (March 2018: HK$0.0346 per unit on 347,614,665 units) 1,535,900 1,532,806

– HK$0.0341 per unit on 375,900,684 units (April 2018: HK$0.0355 per unit on 353,768,854 units) 1,634,276 1,600,203

– HK$0.0349 per unit on 425,938,282 units (May 2018: HK$0.0372 per unit on 334,267,637 units) 1,893,833 1,584,873

–HK$0.0334 per unit on 429,500,938 units (June 2018: HK$0.0374 per unit on 304,909,984 units) 1,837,442 1,451,642

Distributions declared during the year–HK$0.0325 per unit on 433,305,287 units (July 2018:

HK$0.0387 per unit on 295,382,766 units) 1,799,004 1,457,880

17,327,512 19,008,607

(b) Distributionsattributabletothepreviousfinancialyearandpaidduringtheyear

Distributions declared during the previous financial year and paid during the year of HK$0.0387per unit on 295,382,766 units (July 2017: HK$0.0304 per unit on 432,648,945 units) 1,457,880 1,684,203

“AM–USD”classunit


Distributions declared and paid during the year– US$0.0341 per unit on 113,476,030 units (August

2017: US$0.0269 per unit on 157,862,340 units) 3,869,533 4,246,497– US$0.0334 per unit on 110,779,687 units

(September 2017: US$0.0261 per unit on 154,176,746 units) 3,700,042 4,024,013

51


2019 2018USD USD

– US$0.0339 per unit on 108,055,620 units (October 2017: US$0.0269 per unit on 152,887,455 units) 3,663,086 4,112,673

– US$0.0360 per unit on 104,937,017 units (November 2017: US$0.0270 per unit on 148,569,056 units) 3,777,732 4,011,364

– US$0.0360 per unit on 103,124,928 units (December 2017: US$0.0283 per unit on 143,564,853 units) 3,712,497 4,062,885

– US$0.0348 per unit on 113,710,582 units (January 2018: US$0.0294 per unit on 143,142,674 units) 3,957,128 4,208,395

– US$0.0334 per unit on 118,350,788 units (February 2018: US$0.0302 per unit on 140,535,604 units) 3,952,916 4,244,175

– US$0.0332 per unit on 125,631,264 units (March 2018: US$0.0311 per unit on 134,674,574 units) 4,170,958 4,188,379

– US$0.0305 per unit on 131,438,327 units (April 2018: US$0.0318 per unit on 130,689,994 units) 4,008,869 4,155,942

– US$0.0312 per unit on 136,375,374 units (May 2018: US$0.0333 per unit on 126,327,768 units) 4,254,912 4,206,715

– US$0.0299 per unit on 139,227,516 units (June 2018: US$0.0335 per unit on 120,923,610 units) 4,162,903 4,050,941

Distributions declared during the year– US$0.0292 per unit on 139,744,871 units (July 2018:

US$0.0346 per unit on 116,662,216 units) 4,080,550 4,036,513

47,311,126 49,548,492


Distributions declared during the previous financial year and paid during the year of US$0.0346 per unit on 116,662,216 units (July 2017: US$0.0273 per unit on 157,190,622 units) 4,036,513 4,291,304

“AMH–AUD”classunit


Distributions declared and paid during the year– AUD0.0346 per unit on 12,851,757 units (August

2017: AUD0.0307 per unit on 14,249,781 units) 325,016 346,475– AUD0.0337 per unit on 12,623,561 units

(September 2017: AUD0.0299 per unit on 13,926,891 units) 305,337 326,885

– AUD0.0347 per unit on 12,357,216 units (October 2017: AUD0.0307 per unit on 13,970,453 units) 304,121 329,325

– AUD0.0352 per unit on 11,986,028 units (November 2017: AUD0.0303 per unit on 14,321,767 units) 308,311 328,500

– AUD0.0328 per unit on 11,908,224 units (December 2017: AUD0.0312 per unit on 14,105,849 units) 276,545 343,258

– AUD 0.0309 per unit on 14,103,590 units (January 2018: AUD0.0314 per unit on 13,631,967 units) 311,676 345,346

2019 2018USD USD

– AUD0.0305 per unit on 15,841,025 units (February 2018: AUD0.0314 per unit on 13,177,483 units) 347,204 322,288

– AUD0.0300 per unit on 17,488,244 units (March 2018: AUD0.0309 per unit on 13,318,952 units) 371,761 315,005

– AUD 0.0263 per unit on 18,579,675 units (April 2018: AUD0.0302 per unit on 13,548,972 units) 344,080 309,973

– AUD 0.0253 per unit on 18,678,820 units (May 2018: AUD0.0318 per unit on 13,820,628 units) 326,962 332,984

– AUD0.0237 per unit on 18,274,659 units (June 2018: AUD0.0320 per unit on 13,470,077 units) 302,525 316,428

– AUD0.0199 per unit on 17,137,384 units (July 2018: AUD0.0352 per unit on 13,267,133 units) 235,058 346,026

3,758,596 3,962,493


Distributions declared during the previous financial year and paid during the year of AUD0.0352 per unit on 17,137,384 units (July 2017: AUD0.0314 per unit on 14,638,180 units) 346,026 366,010

“AMH–EUR”classunit


Distributions declared and paid during the year– EUR0.0154 per unit on 1,111,852 units (August 2017:

EUR0.0157 per unit on 1,942,641 units) 19,875 36,275– EUR0.0166 per unit on 1,097,324 units (September

2017: EUR0.0148 per unit on 1,922,703 units) 21,027 33,540– EUR0.0114 per unit on 1,027,445 units (October

2017: EUR0.0157 per unit on 1,983,707 units) 13,359 36,275– EUR0.0166 per unit on 1,028,984 units (November

2017: EUR0.0154 per unit on 1,970,181 units) 19,418 35,969– EUR0.0158 per unit on 1,029,057 units (December

2017: EUR0.0160 per unit on 1,965,057 units) 18,469 37,555– EUR0.0038 per unit on 1,302,033 units (January

2018: EUR0.0157 per unit on 1,629,953 units) 5,657 31,779– EUR0.0132 per unit on 1,219,509 units (February

2018: EUR0.0161 per unit on 1,621,163 units) 18,333 31,925– EUR0.0125 per unit on 1,261,772 units (March 2018:

EUR0.0153 per unit on 1,392,978 units) 17,736 26,242– EUR0.0056 per unit on 1,473,767 units (April 2018:

EUR0.0141 per unit on 1,204,275 units) 9,202 20,595– EUR0.0079 per unit on 1,540,567 units (May 2018:

EUR0.0155 per unit on 1,171,807 units) 13,551 21,184– EUR0.0091 per unit on 1,307,553 units (June 2018:

EUR0.0157 per unit on 1,138,568 units) 13,524 20,681

52


2019 2018USD USD

Distributions declared during the year– EUR0.0041 per unit on 1,303,007 units (July 2018:

EUR0.0145 per unit on 1,096,127 units) 5,948 18,609

176,099 350,629


Distributions declared during the previous financial year and paid during the year of EUR0.0145 per unit on 1,096,127 units (July 2017: EUR 0.0163 per unit on 1,921,932 units) 18,609 36,788

“ID–USD”classunit




1,070,159 1,099,366



“ZD–USD”classunit





Distributions declared during the previous financial year and paid during the year of US$0.4535 per unit on 12,284,437 units (July 2017: US$0.4554 per unit on 1,431,325 units) 5,570,783 651,833


2019 2018USD USD

“AM–HKD”classunit


Distributions declared and paid during the year– HK$0.0508 per unit on 157,131,999 units (August

2017: HK$0.0403 per unit on 209,660,501 units) 1,017,036 1,079,813

– HK$0.0505 per unit on 157,108,167 units (September 2017: HK$0.0418 per unit on 211,327,682 units) 1,015,451 1,130,840

– HK$0.0510 per unit on 150,354,713 units (October 2017: HK$0.0409 per unit on 213,536,451 units) 977,943 1,119,690

– HK$0.0581 per unit on 144,659,948 units (November 2017: HK$0.0413 per unit on 209,401,142 units) 1,074,095 1,107,552

– HK$0.0599 per unit on 143,515,291 units (December 2017: HK$0.0435 per unit on 206,875,026 units) 1,097,246 1,151,165

– HK$0.0586 per unit on 149,395,716 units (January 2018: HK$0.0453 per unit on 183,172,837 units) 1,115,760 1,061,057

– HK$0.0535 per unit on 157,862,051 units (February 2018: HK$0.0444 per unit on 177,267,921 units) 1,076,044 1,005,448

– HK$0.0511 per unit on 167,462,353 units (March 2018: HK$0.0454 per unit on 175,880,246 units) 1,090,298 1,017,621

– HK$0.0500 per unit on 171,629,670 units (April 2018: HK$0.0472 per unit on 173,363,898 units) 1,094,108 1,042,624

– HK$0.0504 per unit on 172,124,046 units (May 2018: HK$0.0491 per unit on 169,010,007 units) 1,105,202 1,057,672

– HK$0.0501 per unit on 168,738,081 units (June 2018: HK$0.0514 per unit on 162,786,605 units) 1,082,814 1,065,545

Distributions declared during the year– Distributions declared and paid during the year of

HK$0.0483 per unit on 170,625,502 units (July 2018: HK$0.0543 per unit on 159,355,769 units) 1,052,800 1,103,095

12,798,797 12,942,122

53


2019 2018USD USD


Distributions declared during the previous financial year and paid during the year of HK$0.0543 per unit on 159,355,769 units (July 2017: HK$0.0426 per unit on 196,494,361 units) 1,103,095 1,071,877

“AM–USD”classunit


Distributions declared and paid during the year– US$0.0503 per unit on 48,406,952 units (August

2017: US$0.0400 per unit on 61,059,545 units) 2,434,870 2,442,382– US$0.0500 per unit on 47,366,947 units (September

2017: US$0.0415 per unit on 60,339,904 units) 2,368,347 2,504,106– US$0.0506 per unit on 46,021,030 units (October

2017: US$0.0406 per unit on 61,651,840 units) 2,328,664 2,503,065– US$0.0576 per unit on 45,073,023 units (November

2017: US$0.0412 per unit on 60,084,202 units) 2,596,206 2,475,469– US$0.0595 per unit on 43,432,577 units (December

2017: US$0.0433 per unit on 58,360,537 units) 2,584,238 2,527,011– US$0.0581 per unit on 47,444,555 units (January

2018: US$0.0450 per unit on 54,981,843 units) 2,756,529 2,474,183– US$0.0530 per unit on 53,906,904 units (February

2018: US$0.0442 per unit on 53,574,832 units) 2,857,066 2,368,008– US$0.0506 per unit on 58,898,917 units (March

2018: US$0.0450 per unit on 51,362,766 units) 2,980,286 2,311,325– US$0.0495 per unit on 59,998,520 units (April 2018:

US$0.0467 per unit on 51,373,200 units) 2,969,927 2,399,128– US$0.0499 per unit on 59,533,825 units (May 2018:

US$0.0486 per unit on 50,375,586 units) 2,970,738 2,448,253– US$0.0497 per unit on 59,696,367 units (June 2018:




32,645,278 29,606,682



2019 2018USD USD

“AMH–AUD”classunit


Distributions declared and paid during the year– AUD0.0476 per unit on 3,256,071 units (August

2017: AUD0.0413 per unit on 3,932,298 units) 113,284 128,624– AUD0.0472 per unit on 3,295,470 units (September

2017: AUD0.0428 per unit on 3,593,516 units) 111,651 120,735– AUD0.0483 per unit on 3,214,533 units (October

2017: AUD0.0419 per unit on 3,150,546 units) 110,119 101,362– AUD0.0535 per unit on 2,511,741 units (November

2017: AUD0.0420 per unit on 3,387,911 units) 98,197 107,715– AUD0.0531 per unit on 2,519,552 units (December

2017: AUD0.0435 per unit on 3,479,986 units) 94,724 118,069– AUD0.0512 per unit on 3,533,491 units (January

2018: AUD0.0442 per unit on 3,092,171 units) 129,387 110,269– AUD0.0470 per unit on 4,218,645 units (February

2018: AUD0.0426 per unit on 2,959,490 units) 142,486 98,199– AUD0.0445 per unit on 4,335,559 units (March

2018: AUD0.0421 per unit on 3,390,644 units) 136,711 109,259– AUD0.0425 per unit on 5,031,283 units (April 2018:

AUD0.0421 per unit on 3,725,178 units) 150,569 118,806– AUD0.0413 per unit on 4,920,058 units (May 2018:

AUD0.0441 per unit on 3,646,839 units) 140,586 121,849– AUD0.0408 per unit on 4,848,573 units (June 2018:

AUD0.0463 per unit on 3,451,497 units) 138,178 117,312

Distributions declared during the year– AUD0.0363 per unit on 5,145,886 units (July 2018:

AUD0.0512 per unit on 3,290,753 units) 128,748 124,839

1,494,640 1,377,038


Distributions declared during the previous financial year and paid during the year of AUD0.0512 per unit on 3,290,753 units (July 2017: AUD0.0439 per unit on 3,938,576 units) 124,839 137,682

“AMH–EUR”classunit


Distributions declared and paid during the year– EUR0.0280 per unit on 619,097 units (August 2017:

EUR0.0259 per unit on 983,862 units) 20,122 30,307

54


2019 2018USD USD

– EUR0.0298 per unit on 611,560 units (September 2017: EUR0.0272 per unit on 958,301 units) 21,036 30,722

– EUR0.0247 per unit on 595,628 units (October 2017: EUR0.0263 per unit on 956,162 units) 16,780 29,290

– EUR0.0348 per unit on 963,753 units (November 2017: EUR0.0263 per unit on 931,721 units) 38,128 29,050

– EUR0.0359 per unit on 934,082 units (December 2017: EUR0.0277 per unit on 836,894 units) 38,092 27,690

– EUR0.0245 per unit on 595,555 units (January 2018: EUR0.0279 per unit on 763,647 units) 16,683 26,458

– EUR0.0296 per unit on 976,816 units (February 2018: EUR0.0265 per unit on 739,467 units) 32,930 23,969

– EUR0.0268 per unit on 996,859 units (March 2018: EUR0.0257 per unit on 720,561 units) 30,625 22,802

– EUR0.0216 per unit on 950,562 units (April 2018: EUR0.0255 per unit on 696,259 units) 22,893 21,535

– EUR0.0237 per unit on 603,283 units (May 2018: EUR0.0272 per unit on 694,948 units) 15,919 22,046

– EUR0.0262 per unit on 607,193 units (June 2018: EUR0.0295 per unit on 685,024 units) 18,080 23,380

Distributions declared during the year– EUR0.0205 per unit on 611,985 units (July 2018:

EUR0.0303 per unit on 618,918 units) 13,969 21,956

285,257 309,205


Distributions declared during the previous financial year and paid during the year of EUR0.0303 per unit on 618,918 units (July 2017: EUR0.0282 per unit on 1,334,392 units) 21,956 44,189

“ZD–USD”classunit

(a) Distributionsdeclaredduringtheyear

Distributions declared during the year– US$0.6119 per unit on 240,501 units (July 2018:

US$0.7844 per unit on 246,686 units) 147,166 193,497


Distributions declared during the previous financial year and paid during the year of US$0.7844 per unit on 246,686 units (July 2017: US$Nil per unit on zero units) 193,497 –

During the year, no distributions were made to the unitholders of HSBC China Momentum Fund and HSBC China Growth Fund.

12 Financialinstrumentsandassociatedrisks

The sub-funds maintain investment portfolios in a variety of listed and unlisted financial instruments as dictated by their respective investment management strategies. The objective of the sub-funds is to invest in securities issued by or linked to the companies that are positioned to benefit from the strong economic growth and rising investment opportunities in different regions of China, Hong Kong and other Asian countries determined by the Manager. The sub-funds’ investment portfolios comprise mainly debt securities, equities, foreign currency forward contracts, futures contracts, unit trusts and equity-linked instruments.

The sub-funds’ investing activities expose them to various types of risks that are associated with the financial instruments and markets in which they invest. The Manager and the Trustee have set out below the most important types of financial risks inherent in each type of financial instrument. The Manager and the Trustee would like to highlight that the following list of associated risks only sets out some of the risks but does not purport to constitute an exhaustive list of all the risks inherent in an investment in the sub-funds. Unitholders should note that additional information in respect of risks associated with investment in the sub-funds can be found in their offering document.

The asset allocation is determined by the Manager who manages and monitors the distribution of the assets to achieve the investment objectives.

The nature and extent of the financial instruments outstanding at the date of statement of financial position and the risk management policies employed by the sub-funds are discussed below.

(a) Pricerisk

Price risk is the risk that value of the instrument will fluctuate as a result of changes in market prices, whether caused by factors specific to an individual investment, its issuer or all factors affecting all instruments traded in the market.

The sub-funds are exposed to price risk arising from changes in market prices. Price risk is managed by investing in a portfolio of different investments in accordance with the investments objectives of the sub-funds.

55


Price sensitivity

The impact of a 10% increase in value of the investments on 31 July 2019, with all other variables held constant, is shown

2019

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Asat31July2019

Overall market exposures– Equities – 46,930,845 206,747,396 –– Equity-linked instruments – – 3,055,799 –– Unit trusts 1,581,000 864,037 4,787,235 1,581,000

1,581,000 47,794,882 214,590,430 1,581,000

Change in net assets if investment value increased by 10%– Equities – 4,693,085 20,674,740 –– Equity-linked instruments – – 305,580 –– Unit trusts 158,100 86,404 478,724 158,100

158,100 4,779,489 21,459,044 158,100

2018

HSBCAsianBond

Fund

HSBCChina

MomentumFund

HSBCChinaGrowth

Fund


FundUSD USD USD USD

Asat31July2018

Overall market exposures– Equities – 65,127,537 262,862,238 –– Equity-linked instruments – 540,616 2,307,912 –– Unit trusts 1,488,300 183,417 – 1,494,300

1,488,300 65,851,570 265,170,150 1,494,300

Change in net assets if investment value increased by 10%– Equities – 6,512,754 26,286,224 –– Equity-linked instruments – 54,062 230,791 –– Unit trusts 148,830 18,342 – 149,430

148,830 6,585,158 26,517,015 149,430

below. An equal change in the opposite direction would have reduced the net asset value by an equal but opposite amount. The analysis is performed on the same basis for 2018.

56


(b) Interestraterisk

Interest rate risk arises from changes in interest rates which may affect the value of debt instruments and therefore result in potential gain or loss to the sub-funds. The sub-funds’ interest rate risk is managed on an ongoing basis by the Manager.

The following table indicates the periods in which the interest-bearing assets mature and re-price at the date of the statement of financial position. The table excludes negligible interest-bearing cash and cash equivalents as the exposure to interest rate risk is minimal. For HSBC China Momentum Fund and HSBC China Growth Fund, there were no interest-bearing assets and liabilities. For HSBC Asian Bond Fund and HSBC Asian High Yield Bond Fund, there were no interest-bearing liabilities.

2019

HSBCAsianBond

Fund


FundUSD USD


profit or loss– 1 year or less 116,005,523 52,625,069– over 1 year to 5 years 1,130,078,213 536,680,540– over 5 years 982,629,603 265,889,812

2,228,713,339 855,195,421

2018

HSBCAsianBond

Fund


FundUSD USD


profit or loss– 1 year or less 88,831,814 73,106,171– over 1 year to 5 years 977,585,598 398,552,111– over 5 years 735,919,684 230,333,473

1,802,337,096 701,991,755

Interest rate sensitivity

At the date of the statement of financial position, assuming all other factors unchanged, it is estimated that for an increase in interest rates of 100 basis points (2018: 100 basis points), the estimated impact on net assets attributable to unitholders and the profit for the year of the sub-funds are indicated as follows; an equal change in the opposite direction would have changed the net asset attributable to unitholders by an approximately equal but opposite amount. The analysis is performed on the same basis for 2018:

Decreaseinnetassetsifinterestrateincreasedby100basispoints

2019 2018

HSBC Asian Bond Fund US$ 111,424,780 US$ 84,395,447HSBC Asian High Yield Bond Fund US$ 39,401,816 US$ 31,837,640

(c) Currencyrisk

The sub-funds may invest in financial instruments and enter into transactions denominated in currencies other than their respective functional currency. Consequently, the sub-funds are exposed to risks that the exchange rate of their respective functional currency relative to other foreign currencies may change in a manner that has an adverse effect on the value of that portion of the sub-funds’ assets or liabilities denominated in currencies other than their respective functional currency.

The fluctuations in the rate of exchange between the currency in which the asset or liability is denominated and the functional currency could result in an appreciation or depreciation in the fair value of that asset or liability. The Manager may attempt to mitigate this risk by using financial derivative instruments. The Manager monitors the sub-funds’ currency exposures on an ongoing basis.

Currency sensitivity

At 31 July 2019, had the United States dollar (“USD”) weakened by 5% (2018: 5%) in relation to respective currencies, with all other variables held constant, net assets attributable to unitholders and the profit for the year would have increased/(decreased) by the amounts shown below. The analysis is performed on the same basis for 2018.

57


Asat31July2019

HSBCAsianBondFund


HSBCChinaGrowthFund


Netexposure

ChangeinnetassetsifUSDweakenedby

5% Netexposure


5% Netexposure


5% Netexposure


5%USD USD USD USD USD USD USD USD

Australian Dollar 113,826,184 5,691,309 – – – – (125,025) (6,251)Chinese Renminbi 1,727,362 86,368 5,064,208 253,210 12,320,743 616,037 27,635,179 1,381,759Canadian Dollar – – – – – – 3,804 190Euro 13,896,513 694,826 – – – – (10,876) (544)Indonesian Rupiah 14,660,356 733,018 – – – – 8,796,211 439,811Indian Rupee – – – – – – – –Korean Won 3 – – – – – – –Malaysian Ringgit (307) (15) – – – – – –Singaporean Dollar – – – – – – 161 8

144,110,111 7,205,506 5,064,208 253,210 12,320,743 616,037 36,299,454 1,814,973

Asat31July2018

HSBCAsianBondFund


HSBCChinaGrowthFund


Netexposure


5% Netexposure


5% Netexposure


5% Netexposure


5%USD USD USD USD USD USD USD USD

Australian Dollar 90,186,607 4,509,330 – – – – 22,618,410 1,130,921Chinese Renminbi 36,978,303 1,848,915 1,701,047 85,052 3,075,146 153,757 13,507,876 675,394Euro 11,850,888 592,544 – – (92,287) (4,614) 6,667,932 333,397Indonesian Rupiah 2,929,945 146,497 – – – – 1,351,054 67,553Indian Rupee 7,330,258 366,513 – – – – 10,248,061 512,403Korean Won 3 – – – – – – –Malaysian Ringgit (311) (16) – – – – – –Singaporean Dollar – – – – – – 162 8

149,275,693 7,463,783 1,701,047 85,052 2,982,859 149,143 54,393,495 2,719,676

As the Hong Kong Dollar (“HKD”) is pegged to the USD, the sub-funds do not expect any significant movement in USD/HKD exchange rate. A 5% appreciation of USD against the above currencies would have resulted in an equal but opposite effect on the financial statement amounts, on the basis that all other variables remain constant.

58


(d) Creditrisk

(i) Analysis of credit policy and concentration of credit risk

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the sub-funds. The sub-funds’ exposure to credit risk is monitored by the Manager on an ongoing basis.

At 31 July 2019 and 31 July 2018, two of the sub-funds, HSBC Asian Bond Fund and HSBC Asian High Yield Bond Fund invested in debt securities with the following credit quality expressed as a percentage of debt securities:

Asat31July2019

HSBCAsianBondFund

HSBCAsianHighYield

BondFundRating %ofdebtsecurities %ofdebtsecurities

(Moody’s)

Aaa – –Aa1 0.29 –Aa2 2.41 –Aa3 1.05 –A1 11.62 –A2 7.71 0.26A3 5.58 –Baa1 9.68 –Baa2 23.71 16.61Baa3 5.40 2.46Ba1 0.75 1.06Ba2 3.93 8.49Ba3 1.89 9.75B1 2.50 11.53B2 3.63 18.62B3 0.53 2.54NR 19.32 28.68

Total 100.00 100.00

Asat31July2018

HSBCAsianBondFund

HSBCAsianHighYield

BondFundRating %ofdebtsecurities %ofdebtsecurities

(Moody’s)

Aaa 1.46 –Aa1 0.34 –Aa2 3.17 0.42Aa3 0.36 0.29A1 12.67 1.52A2 5.15 0.27A3 9.39 –Baa1 11.48 0.42Baa2 20.70 17.82Baa3 4.04 1.14Ba1 2.41 1.49Ba2 2.99 10.43Ba3 2.71 10.05B1 1.15 12.33B2 2.09 14.71B3 0.56 2.69NR 19.33 26.42

Total 100.00 100.00

Credit risk is managed by the reviewing and monitoring of the credit quality of debt securities held by the sub-funds or the issuers of the debt instruments held by the sub-funds on an ongoing basis.

Credit risk arising from transactions with brokers relates to transactions awaiting settlement. Risk relating to unsettled transactions is considered small due to the short settlement period involved and the high credit quality of the brokers used.

The majority of the cash held by the sub-funds is deposited with the HSBC Group. According to Moody’s, the credit rating of HSBC Group is A2 (2018: A2). Bankruptcy or insolvency of the bank may cause the sub-funds’ rights with respect to the cash held by the bank to be delayed or limited. The sub-funds monitor the credit rating and financial position of the bank on an ongoing basis.

59


Substantially all of the assets of the sub-funds are held by the Custodian. Bankruptcy or insolvency of the Custodian may cause the sub-funds’ rights with respect to securities held by the Custodian to be delayed or limited. The Custodian is a group company of HSBC, which credit risk is considered insignificant.

HSBC China Momentum Fund and HSBC China Growth Fund enter into transactions of over-the-counter-equity-linked instruments, which expose the sub-funds to the risk that the counterparties to the financial instruments might default on their obligations to the sub-funds. The Manager considers the risk to be insignificant.

The carrying amounts of financial assets best represent the maximum credit risk exposure at the date of assets and liabilities.

As of 31 July 2019, HSBC Asian Bond Fund and HSBC Asian High Yield Bond Fund had fixed income investments issued by the Indonesian Government amounting to 5.87% and 8.04% (2018: 6.12% and 7.25%) of net asset value, respectively.

(ii) Offsetting financial assets and financial liabilities

None of the financial assets and financial liabilities is offset in the statement of financial position. The disclosures set-out in the table below include financial assets and financial liabilities that are subject to an enforceable master netting arrangement.

The enforceable master netting arrangements do not meet the criteria for offsetting in the statement of financial position. This is because they create a right of set off of recognised amounts that is enforceable only following on event of default, insolvency or bankruptcy of the Trust and its sub-fund or their counterparties. In addition, the Trust and its sub-funds and their counterparties do not intend to settle on a net basis or to realise the assets and settle the liabilities simultaneously.

The equity-linked instruments are not subject to an enforceable master netting arrangement.

31July2019

Financial assets subject to enforceable master netting arrangements

Grossamountsofrecognised

financialliabilities


financialassets

offsetinthe

statementoffinancial

position

Netamountsof


presentedinthe


position

Amountsoffinancial

instruments(includingnon-cash

collateral)

Cashcollateralreceived

Netamount

USD USD USD USD USD USD

HSBCAsianBondFund

Derivative financial instruments:– Foreign exchange forward contracts

– Counterparty A 181 – 181 (181) – –– Counterparty B – – – – – –



– Counterparty A 448 – 448 (448) – –– Counterparty B – – – – – –

60


Financial liabilities subject to enforceable master netting arrangements




financialassets

offsetinthe


position

Netamountsof


presentedinthe


position

Amountsoffinancial


collateral)


Netamount


HSBCAsianBondFund


– Counterparty A (654,105) – (654,105) 181 – (653,924)– Counterparty B (8,845) – (8,845) – – (8,845)



– Counterparty A (197,322) – (197,322) 448 – (196,874)– Counterparty B (4,093) – (4,093) – – (4,093)

31July2018

Financial assets subject to enforceable master netting arrangements


financialassets


financialliabilitiesoffsetin

thestatement

offinancialposition

Netamountsof

financialassets

presentedinthe


position

Amountsoffinancial


collateral)


Netamount


HSBCAsianBondFund


– Counterparty A 60,496 – 60,496 (16,666) – 43,830– Counterparty B – – – – – –


Derivative financial instruments:– Foreign exchange forward contracts – – – – – –

61


Financial liabilities subject to enforceable master netting arrangements




financialassets

offsetinthe


position

Netamountsof


presentedinthe


position

Amountsoffinancial


collateral)


Netamount


HSBCAsianBondFund


– Counterparty A (16,666) – (16,666) 16,666 – –– Counterparty B (28,656) – (28,656) – – (28,656)


Derivative financial instruments:– Foreign exchange forward contracts (37,133) – (37,133) – – (37,133)

The gross amounts of recognised financial assets and financial liabilities and their net amounts presented in the statement of financial position disclosed in the above tables have been measured in the statement of financial position at fair value.

62


The tables below reconcile the “Net amounts of financial assets and financial liabilities presented in the statement of financial position”, as set out above, to the line items presented in the statement of financial position.

Reconciliation to the net amounts of financial assets and financial liabilities presented in the statement of financial position.

31July2019

Financial assets

Netamounts

Lineiteminstatementof

financialposition

Carryingamountin

statementoffinancialposition

Financialassetsnotin

scopeofoffsetting

disclosuresUSD USD USD

HSBCAsianBondFund


– Counterparty A 181Forward contracts

receivable 181 –

– Counterparty B –Forward contracts

receivable – –



– Counterparty A 448Forward contracts

receivable 448 –


receivable – –

63


Financial liabilities

Netamounts


financialposition

Carryingamountin



scopeofoffsetting


HSBCAsianBondFund


– Counterparty A (654,105)Forward contracts

payable (654,105) –

– Counterparty B (8,845)Forward contracts

payable (8,845) –




payable (197,322) –


payable (4,093) –

31July2018

Financial assets

Netamounts


financialposition

Carryingamountin



scopeofoffsetting


HSBCAsianBondFund


– Counterparty A 60,496Forward contracts

receivable 60,496 –


receivable – –


Derivative financial instruments:

– Foreign exchange forward contracts –Forward contracts

receivable – –

64



Netamounts


financialposition

Carryingamountin


Financialliabilitiesnot

inscopeofoffsetting


HSBCAsianBondFund



payable (16,666) –


payable (28,656) –


Derivative financial instruments:

– Foreign exchange forward contracts (37,133)Forward contracts

payable (37,133) –

(iii) Amounts arising from ECL

Impairment on interest receivable, dividends receivable, subscriptions receivable, amounts due from brokers and cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. The sub-funds consider that these exposures have low credit risk based on the external credit ratings and/ or review result of the counterparties.

The sub-funds monitor changes in credit risk on these exposures by tracking published external credit ratings of the counterparties and/ or performed ongoing review of the counterparties.

On initial application of HKFRS 9 as at 1 August 2018, the Managers considers the probability of default to be minimal as the counterparties have a strong capacity to meet their contractual obligations in the near term. There is no impairment allowance recognised on interest receivable, dividends receivable, subscriptions receivable, amounts due from brokers and cash and cash equivalents. The amount of the loss allowance did not change during the year ended 31 July 2019.

(e) Liquidityrisk

Liquidity risk is the risk that the sub-funds will encounter difficulty in meeting obligations arising from their financial liabilities that are settled by delivering cash or another financial asset, or that such obligations will have to be settled in a manner disadvantageous to the sub-funds. The sub-funds are exposed to daily liquidity risk on redemption of units.

The sub-funds’ policy is to regularly monitor current and expected liquidity requirements to ensure that it maintains sufficient reserves of cash and readily realisable marketable securities to meet its liquidity requirements in the short and longer term.

The sub-funds’ listed investments are generally considered to have insignificant exposures to liquidity risk as they are all readily realisable under normal market conditions. The sub-funds, however, also invest in unlisted investments such as unlisted bonds, equity-linked instruments and derivatives, which are not publicly traded on exchanges and may be illiquid.

As at 31 July 2019 and 31 July 2018, the sub-funds’ financial liabilities are due within three months, except for bank overdrafts, redemptions payable and net assets attributable to unitholders which are repayable on demand.

65


(f) Capitalmanagement

The sub-funds’ capital as at the year end date are represented by their redeemable units.

The sub-funds’ objectives in managing the capital are to ensure a stable and strong base to maximise returns to all investors, and to manage liquidity risk arising from the redemptions. The Manager manages the capital of the sub-funds in accordance with the sub-funds’ investment objectives and policies stated in the sub-funds’ Explanatory Memorandum.

There were no changes in the policies and procedures during the year with respect to the sub-funds’ approaches to their capital management.

The amount and the movement of net assets/equity are stated in the statement of changes in net assets attributable to unitholders/statement of changes in equity. As the redeemable units are redeemed on demand at the unitholders’/owners’ option, the actual level of redemption may differ significantly from historical experience.

(g) Specificinstruments

Forward contracts

Forward contracts are commitments either to purchase or sell a designated financial instrument, currency, commodity or index at a specified future date for a specified price and may be settled in cash or the underlying financial asset.

Forward contracts result in exposure to market risk based on changes in market prices relative to contracted prices. Market risks arise due to the possible movement in foreign currency exchange rates, indices, and securities’ values underlying these instruments. In addition, because of the low margin deposits normally required in relation to notional contract sizes, a high degree of leverage may be typical of a forward contract and may result in substantial losses to the sub-funds. Forward contracts are generally subject to liquidity risk.

At 31 July 2019 and 31 July 2018, the sub-funds’ holdings in foreign exchange forward contracts were as specified in the following table.

As at 31 July 2019

HSBCAsianBondFund

Buy Sell SettlementdateFairvalue

assetsFairvalue

(liabilities)USD USD

AUD164,738,158 USD114,305,383 30 August 2019 – (639,678)

AUD919,663 USD634,966 30 August 2019 – (419)

EUR12,457,302 USD13,915,168 30 August 2019 – (12,706)

AUD80,887 USD55,653 30 August 2019 158 –

AUD185,601 USD129,362 30 August 2019 – (1,302)

USD9,641 AUD13,939 30 August 2019 23 –

USD54,535,275 CNH376,000,000 30 September 2019 – (8,845)

181 (662,950)



assetsFairvalue


AUD49,205,327 USD34,141,658 30 August 2019 – (191,064)

AUD55,318 USD38,556 30 August 2019 – (388)

AUD9,852 USD6,802 30 August 2019 – (4)

AUD230,137 USD158,341 30 August 2019 448 –

EUR5,750,523 USD6,423,501 30 August 2019 – (5,866)

EUR500 USD558 30 August 2019 – –

USD25,237,069 CNH174,000,000 30 September 2019 – (4,093)

448 (201,415)

66


As at 31 July 2018

HSBCAsianBondFund


assetsFairvalue


AUD123,645,487 USD91,872,677 31 August 2018 59,226 –

AUD238,976 USD176,588 31 August 2018 1,093 –

AUD63,241 USD46,843 31 August 2018 177 –

EUR10,145,999 USD11,912,377 31 August 2018 – (13,768)

USD298,355 AUD402,877 31 August 2018 – (1,190)

USD386,831 AUD522,115 31 August 2018 – (1,368)

USD140,136 EUR119,785 31 August 2018 – (340)

USD4,670,380 EUR4,000,000 24 September 2018 – (28,656)

60,496 (45,322)



assetsFairvalue


AUD30,867,600 USD22,953,734 31 August 2018 – (3,303)

EUR6,208,095 USD7,291,593 31 August 2018 – (11,119)

USD90,718 AUD122,486 31 August 2018 – (351)

USD15,091 EUR12,916 31 August 2018 – (56)

USD678,537 EUR581,117 31 August 2018 – (2,961)

USD3,152,507 EUR2,700,000 24 September 2018 – (19,343)

– (37,133)

13 Fairvalueinformation

Futures contracts

Futures contracts are legally binding commitments to buy or sell a financial instrument, currency, commodity or index at a specified future date for a specified price which are agreed upon at the initiation of the contract by the buyer and seller.

Futures contracts are standardised for quality and quantity and traded on a futures exchange.

As at 31 July 2019, HSBC Asian Bond Fund did not invest in futures contracts. The sub-fund held futures contracts as at 31 July 2018 and the holding was as specified in the following table.

UnderlyingNumberof

contractsContract

priceContract

sizeMaturity

dateFairvalue

assetsUSD

HSBC Holdings plc (280) 119,688 1,000

19 September

2018 74,374

74,374

The sub-funds’ financial instruments are measured at fair value on the date of the statement of financial position. Fair value estimates are made at a specified point in time, based on market conditions and information about the financial instruments. Usually, fair values can be reliably determined within a reasonable range of estimates. For certain other financial instruments, including interest and dividends receivables, subscriptions receivable, amounts due from brokers, bank overdrafts, redemptions payable, amounts due to brokers, taxes payable, distributions payable and other payables, the carrying amounts approximate fair values due to the immediate or short term nature of these financial instruments.

Valuationoffinancialinstruments

The sub-funds’ accounting policy on fair value measurements is detailed in the significant accounting policy in note 2(e)(iv).

The sub-funds measure fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements.

– Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments.

67


– Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). The category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques in which all significant inputs are directly or indirectly observable from market data.

– Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments but for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

When fair values of listed and quoted investments at the reporting date are based on quoted market prices or binding dealer price quotations in an active market, without any deduction for transaction costs, the instruments are included within Level 1 of the hierarchy. When fair values of debt securities at the reporting date represent quoted prices in markets that are considered less than active or consensus prices derived by third parties using valuation techniques where all significant inputs are directly or indirectly observable from market data, those debt securities are included within Level 2 of the hierarchy. For all other financial instruments, the sub-funds determine fair value using valuation techniques.

The sub-funds use widely recognised valuation models for determining the fair value of the debt securities and equity-linked instruments which do not have quoted market prices in active markets. Valuation techniques include net present value, discounted cash flow models, comparison to similar instruments for which market observable prices exist, comparison to quoted prices for identical instruments that are considered less than active and other valuation models.

The following analyses financial instruments at fair value through profit or loss at the date of the statement of financial position, by the level in the fair value hierarchy into which the fair value measurement is categorised.

Financial instruments at fair value through profit or loss

HSBCAsianBondFund

Asat31July2019

Level1 Level2 Level3 TotalUSD USD USD USD

Financial assets

Debt securities – 2,228,713,339 – 2,228,713,339Equity securities – – – –Listed equities – – – –Equity-linked

instruments – – – –Unit trusts 1,581,000 – – 1,581,000Foreign currency

forward contracts – 181 – 181Futures contracts – – – –

1,581,000 2,228,713,520 – 2,230,294,520


Foreign currency forward contracts – 662,950 – 662,950

Asat31July2018


Financial assets

Debt securities – 1,802,337,096 – 1,802,337,096Equity securities – – – –Equity-linked


forward contracts – 60,496 – 60,496Futures contracts 74,374 – – 74,374

1,562,674 1,802,397,592 – 1,803,960,266



68



Asat31July2019


Financial assets

Debt securities – – – –Equity securities – – – –Listed equities 46,930,845 – – 46,930,845Equity-linked

instruments – – – –Unit trusts 864,037 – – 864,037Foreign currency

forward contracts – – – –Futures contracts – – – –

47,794,882 – – 47,794,882


Foreign currency forward contracts – – – –

Asat31July2018


Financial assets

Debt securities – – – –Equity securities 65,127,537 – – 65,127,537Equity-linked

instruments – – 540,616 540,616Unit trusts 183,417 – – 183,417Foreign currency


65,310,954 – 540,616 65,851,570



HSBCChinaGrowthFund

Asat31July2019


Financial assets

Debt securities – – – –Equity securities – – – –Listed equities 206,747,396 – – 206,747,396Equity-linked

instruments – 3,055,799 – 3,055,799Unit trusts 4,787,235 – – 4,787,235Foreign currency


211,534,631 3,055,799 – 214,590,430



Asat31July2018


Financial assets

Debt securities – – – –Equity securities 262,862,238 – – 262,862,238Equity-linked

instruments – 2,307,912 – 2,307,912Unit trusts – – – –Foreign currency


262,862,238 2,307,912 – 265,170,150



69



Asat31July2019


Financial assets

Debt securities – 855,195,421 – 855,195,421Equity securities – – – –Listed equities – – – –Equity-linked


forward contracts – 448 – 448Futures contracts – – – –

1,581,000 855,195,869 – 856,776,869



Asat31July2018


Financial assets

Debt securities – 701,991,755 – 701,991,755Equity securities – – – –Equity-linked



1,494,300 701,991,755 – 703,486,055



As of 31 July 2019, Level 3 financial instruments of HSBC China Growth Fund included China Metal Recycling Holdings Ltd. As of 31 July 2018, Level 3 financial instruments of HSBC China Momentum Fund and HSBC China Growth Fund included CICC Financial Trading (Kangde Xin Composite Mater-A) P-note 19 August 2019 and China Metal Recycling Holdings Ltd respectively.

CICC Financial Trading (Kangde Xin Composite Mater-A) P-note 19 August 2019 is an equity-linked structured note, its underlying equity is Kangde Xin Composite Mater-A, which was suspended on 4 June 2018 but had resumed trading on 15 November 2018 and subsequently sold during the year. China Metal Recycling Holdings Ltd was suspended for trading since 28 January 2013 and in these financial statements, it is written down to zero based on relevant news and information.

The table below presents the reconciliation from the beginning balances to the ending balances for fair value measurements in Level 3 of the fair value hierarchy.

70



Asat1August2018

Netlossesincludedinthe

statementofcomprehensive

income SalesTransferinto

Level3Asat31July

2019Unrealised

gainsUSD USD USD USD USD USD

Equity-linked structured notes 540,616 (130,281) (410,335) – – 96,370

Asat1August2017




Level3Asat

31July2018Unrealised

lossesUSD USD USD USD USD USD

Equity-linked structured notes – – – 540,616 540,616 (96,370)

HSBCChinaGrowthFund

Asat1August2018




Level3Asat31July

2019Unrealised


Equities – – – – – –

Asat1August2017




Level3Asat

31July2018Unrealised


Equities – – – – – –

The change in unrealised gains or losses for the year is included in the statement of comprehensive income for financial assets and financial liabilities held at the reporting date.

Quantitative information of significant unobservable inputs – Level 3

71


For HSBC China Momentum Fund, there is no financial instrument categorised as Level 3 in the fair value hierarchy as at year end, the table below sets out information about significant unobservable inputs used at 31 July 2018. For HSBC China Growth Fund, the table below sets out information about significant unobservable inputs used at 31 July 2019 and 31 July 2018 in measuring financial instruments categorised as Level 3 in the fair value hierarchy.


DescriptionFairvalueat31July2018

Valuationtechniques

Unobservableinput

USD

Equity-linked structured notes 540,616

Adjustment on last traded price

before suspension

Adjustment based on the

information relating to the

investments

HSBCChinaGrowthFund

DescriptionFairvalueat31July2019

Fairvalueat31July2018

Valuationtechniques

Unobservableinput

USD USD

Equities – –

Adjustment on last traded price

before suspension

Adjustment based on the

information relating to the

investments

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at year end is as shown below:


Input

Changeinunobservable

input

Effectonthenetassets

attributabletounitholders

USD

Asat31July2018

Equity-linked structured notes

Adjustment based on the information

relating to the investments 5%/(5)% (31,720)/31,720

HSBCChinaGrowthFund

Input

Changeinunobservable

input

Effectonthenetassets

attributabletounitholders

USD

Asat31July2019

Equities


relating to the investments 5%/(5)% -/282,145

Asat31July2018

Equities


relating to the investments 5%/(5)% -/282,145

For HSBC Asian Bond Fund, HSBC China Growth Fund and HSBC Asian High Yield Bond Fund, there are no transfers between the levels during the year ended 31 July 2019 (2018: Nil). For HSBC China Momentum Fund, there is no transfers between the levels during the year ended 31 July 2019. During the year ended 31 July 2018, equity-linked structured notes amounting to US$540,616 have been transferred from Level 1 to Level 3 due to suspended underlying equity.

72


Valuation of financial instruments not measured at fair value

HSBCAsianBondFund

Asat31July2019


Financial assets

Interest receivable – 24,675,687 – 24,675,687Dividends receivable – – – –Subscriptions

receivable – 14,864,954 – 14,864,954Amounts due from

brokers – 16,443,306 – 16,443,306Cash and cash

equivalents – 5,055,281 – 5,055,281

– 61,039,228 – 61,039,228


Bank overdrafts – 2,210 – 2,210Redemptions

payable – 25,521,829 – 25,521,829Amounts due to

brokers – 33,593,607 – 33,593,607Tax payable – 30,327 – 30,327Distributions payable – 13,521,369 – 13,521,369Other payables – 2,047,191 – 2,047,191Net assets

attributable to unitholders – 2,215,954,265 – 2,215,954,265

– 2,290,670,798 – 2,290,670,798

Asat31July2018


Financial assets




equivalents – 14,464,493 – 14,464,493

– 43,983,025 – 43,983,025


Redemptions payable – 9,314,741 – 9,314,741

Amounts due to brokers – 8,693,955 – 8,693,955

Tax payable – 12,063 – 12,063Distributions payable – 12,529,177 – 12,529,177Other payables – 1,569,924 – 1,569,924Net assets

attributable to unitholders – 1,815,778,109 – 1,815,778,109

– 1,847,897,969 – 1,847,897,969

73



Asat31July2019


Financial assets

Interest receivable – 54 – 54Dividends receivable – 58,734 – 58,734Subscriptions

receivable – – – –Amounts due from

brokers – 663,208 – 663,208Cash and cash

equivalents – 993,917 – 993,917

– 1,715,913 – 1,715,913


Bank overdrafts – – – –Redemptions

payable – – – –Amounts due to

brokers – 481,861 – 481,861Tax payable – – – –Distributions payable – – – –Other payables – 104,597 – 104,597Net assets

attributable to unitholders – – – 48,924,337

– 586,458 – 49,510,795

Asat31July2018


Financial assets


receivable – – – –Amounts due from


equivalents – 1,243,554 – 1,243,554

– 1,870,176 – 1,870,176


Redemptions payable – 36,137 – 36,137

Amounts due to brokers – 540,207 – 540,207

Tax payable – – – –Distributions payable – – – –Other payables – 137,761 – 137,761Net assets

attributable to unitholders – – – –

– 714,105 – 714,105

74


HSBCChinaGrowthFund

Asat31July2019


Financial assets




equivalents – 4,920,145 – 4,920,145

– 10,594,349 – 10,594,349


Redemptions payable – 231,129 – 231,129



attributable to unitholders – 219,859,384 – 219,859,384

– 225,184,779 – 225,184,779

Asat31July2018


Financial assets

Interest receivable – 79 – 79Dividends receivable – 2,482,372 – 2,482,372Subscriptions

receivable – 755,712 – 755,712Amounts due from


equivalents – 2,253,326 – 2,253,326

– 11,216,924 – 11,216,924






– 276,387,074 – 276,387,074

75



Asat31July2019


Financial assets




equivalents – 5,751,848 – 5,751,848

– 21,712,872 – 21,712,872




Tax payable – 30,020 – 30,020Distributions payable – 4,174,181 – 4,174,181Other payables – 1,057,582 – 1,057,582Net assets


– 878,288,326 – 878,288,326

Asat31July2018


Financial assets




equivalents – 2,536,879 – 2,536,879

– 20,926,608 – 20,926,608




Tax payable – 4,059 – 4,059Distributions payable – 4,070,511 – 4,070,511Other payables – 857,109 – 857,109Net assets


– 724,375,530 – 724,375,530

76


14 Involvement with unconsolidated structuredentities

The sub-funds have concluded that the listed and unlisted investment funds in which they invest, but that they do not consolidate, meet the definition of structured entities because:

– the voting rights in the investment funds are not dominant rights in deciding who controls them as they relate to administrative tasks only;

– each investment fund’s activities are restricted by its prospectus; and

– the investment funds have narrow and well defined objectives to provide investment opportunities to investors.

The table below describes the types of structured entities that the sub-funds do not consolidate but in which they hold an interest.

Typeofstructuredentity Natureandpurpose

Interestheldbythesub-funds

Investment funds To manage assets on behalf ofthird party investors and

generate fees for theinvestment manager

These vehicles are financedthrough the issue of units to

investors

Investment in units issued bythe investment funds

The table below sets out interests held by the sub-funds in unconsolidated structured entities. The maximum exposure to loss is the carrying amount of the financial assets held.

HSBCAsianBondFund

31July2019

Numberofinvesteefunds

Totalnetassets(basedonunaudited

information)

Carryingamount

includedin“Financial

assetsoffairvaluethroughprofitorloss”

(inUS$millions)

(inUS$)

Unlisted investment fund 1 19 1,581,000


31July2019



information)

Carryingamount



(inUS$millions)

(inUS$)

Listed investment funds 1 24,647 864,037

HSBCChinaGrowthFund

31July2019



information)

Carryingamount



(inUS$millions)

(inUS$)

Listed investment funds 1 24,647 4,787,235

77



31July2019



information)

Carryingamount



(inUS$millions)

(inUS$)


HSBCAsianBondFund

31July2018



information)

Carryingamount



(inUS$millions)

(inUS$)



31July2018



information)

Carryingamount



(inUS$millions)

(inUS$)

Listed investment funds 1 21,230 183,417


31July2018



information)

Carryingamount



(inUS$millions)

(inUS$)


During the year, the sub-funds did not provide financial support to the unconsolidated structured entities and have no intention of providing financial or other support.

The sub-funds can sell units in the above listed investment funds on each trade day and redeem units in the above unlisted investment funds on each of their dealing day.

15 Segmentinformation

The Manager makes the strategic resource allocation on behalf of the sub-funds and determines the operating segments based on the internal reporting used to make strategic decisions.

The Manager’s asset allocation decisions are based on one single and integrated investment strategy, and the sub-funds’ performance is evaluated on an overall basis. Accordingly the Manager considers that the sub-funds have one single operating segment which is investing in a portfolio of financial instruments to generate investment returns in accordance with the investment objectives stipulated in the Explanatory Memorandum. There were no changes in the operating segment during the year.

All revenues and losses generated from investments by the sub-funds are disclosed in note 3. The segment information provided to the Manager is the same as that disclosed in the statement of comprehensive income and statement of financial position.

78


16 Possibleimpactofamendments,newstandardsandinterpretationsissuedbutnotyeteffectivefortheyearended31July2019

Up to the date of issue of these financial statements, the HKICPA has issued a number of amendments, interpretations and new standards which are not yet effective for the year ended 31 July 2019 and which have not been adopted in these financial statements.

Of these developments, the following may be relevant to the sub-funds’ operations and financial statements:

Effectiveforaccounting

periodsbeginningonor

after

IFRIC 23, Uncertainty over income tax treatments

1 January 2019

Annual Improvements to IFRSs 2015-2017 Cycle

1 January 2019

The sub-funds are in the process of making an assessment of what the impact of these amendments and interpretations is expected to be in the period of initial application. So far it has concluded that the adoption of them is unlikely to have material impact on the sub-funds.

79

Portfolio Statement (Unaudited)

HSBC Asian Bond Fundas at 31 July 2019

HoldingsMarket

value

% ofnet

assetsUSD

Financial assets

Debt securities

BondsListed investments

ABJA INVESTMENT CO 5.95% 31 JULY 2024 10,000,000 10,543,500 0.48

ADANI GREEN ENERGY (UP) LTD 6.25% 10 DECEMBER 2024 4,625,000 4,763,149 0.21

ADANI PORT AND SPECIAL ECONOMIC ZONE LTD 3.95% 19 JANUARY 2022 6,000,000 6,123,600 0.28

ADANI PORTS AND SPECIAL ECONOMIC ZONE LTD 3.375% 24 JULY 2024 4,645,000 4,643,746 0.21

AGILE GROUP HOLDINGS LTD 8.5% 18 JULY 2021 5,133,000 5,456,122 0.25

AGILE GROUP HOLDINGS LTD 9.5% 23 NOVEMBER 2020 4,596,000 4,873,369 0.22

ALAM SYNERGY PTE LTD 11.5% 22 APRIL 2021 2,234,000 2,372,798 0.11

ALIBABA GROUP HOLDING LTD 3.125% 28 NOVEMBER 2021 5,000,000 5,064,600 0.23

ALIBABA GROUP HOLDINGS LTD 4.5% 28 NOVEMBER 2034 12,000,000 13,419,360 0.61

AMBER CIRCLE FUNDING LTD 3.25% 04 DECEMBER 2022 8,000,000 8,109,840 0.37

ASCIANO FINANCE LTD 4.75% 22 MARCH 2028 6,000,000 6,153,960 0.28

AUST & NZ BANKING GROUP VAR 30 JANUARY 2025 25,000,000 3,671,206 0.17

AXIS BANK LTD (DUBAI BRANCH) 2.875% 01 JUNE 2021 10,000,000 9,960,400 0.45

AZURE POWER ENERGY LTD 5.5% 03 NOVEMBER 2022 2,871,000 2,904,074 0.13

BAIDU INC 3.875% 29 SEPTEMBER 2023 10,000,000 10,367,300 0.47

BAIDU INC 4.375% 14 MAY 2024 5,000,000 5,307,650 0.24BANK MANDIRI (PERSERO) TBK PT

3.75% 11 APRIL 2024 4,047,000 4,165,537 0.19BANK OF CHINA (MACAU BRANCH)

4.65% 05 MARCH 2021 10,000,000 1,484,299 0.07

HoldingsMarket

value

% ofnet

assetsUSD

BANK OF CHINA 5% 13 NOVEMBER 2024 12,000,000 12,951,840 0.58

BANK OF EAST ASIA LTD 4% 3 NOVEMBER 2026 12,000,000 12,102,720 0.55

BANK OF EAST ASIA LTD 5.5% PERP 29 DECEMBER 2049 3,000,000 3,011,550 0.14

BANK OF EAST ASIA LTD 5.625% PERPETUAL 3,000,000 3,019,830 0.14

BANK OF EAST ASIA LTD VAR 20 NOVEMBER 2024 13,500,000 13,533,210 0.61

BANK OF THE PHILIPPINE ISLANDS 4.25% 04 SEPTEMBER 2023 5,369,000 5,650,443 0.25

BANK RAKYAT INDONESIA (PERSERO) TBK PT 3.95% 28 MARCH 2024 444,000 460,051 0.02

BANK RAKYAT INDONESIA (PERSERO) TBK PT 4.625% 20 JULY 2023 2,974,000 3,145,719 0.14

BHARAT PETROLEUM CORPORATION LTD 4.375% 24 JANUARY 2022 2,631,000 2,716,613 0.12

BHARTI AIRTEL INTERNATIONAL NETHERLANDS BV 5.35% 20 MAY 2024 3,000,000 3,199,050 0.14

BLUESTAR FINANCE HOLDINGS LTD 3.5% 30 SEPTEMBER 2021 5,000,000 5,038,400 0.23

BOC AVIATION LTD 3.399% 02 MAY 2021 826,000 830,006 0.04

BOC AVIATION LTD 3.5% 18 SEPTEMBER 2027 5,000,000 5,017,800 0.23

BOC AVIATION LTD 3.5% 31 JANUARY 2023 5,000,000 5,077,400 0.23

BOC AVIATION LTD 3.875% 27 APRIL 2026 12,000,000 12,306,000 0.56

BUKIT MAKMUR MANDIRI UTAMA PT 7.75% 13 FEBRUARY 2022 4,314,000 4,398,252 0.20

CANARA BANK (LONDON BRANCH) 3.875% 28 MARCH 2024 9,500,000 9,702,635 0.44

CCB LIFE INSURANCE CO LTD 4.5% 21 APRIL 2077 3,716,000 3,607,976 0.16

CCBL (CAYMAN) 1 CORPORATION LTD 3.58744% 12 JULY 2023 8,000,000 8,023,440 0.36

CDBL FUNDING 1 3% 24 APRIL 2023 1,836,000 1,822,524 0.08CDBL FUNDING 2 3% 1 AUGUST

2022 3,569,000 3,565,645 0.16

80



HoldingsMarket

value

% ofnet

assetsUSD


CDBL FUNDING 4.25% 2 DECEMBER 2024 12,000,000 12,585,720 0.57

CELESTIAL DYNASTY LTD 4.25% 27 JUNE 2029 7,048,000 7,088,244 0.32

CELESTIAL MILES LTD 5.75% PERPETUAL 5,500,000 5,771,040 0.26

CENTRAL CHINA REAL ESTATE LTD 7.25% 24 APRIL 2023 7,647,000 7,650,135 0.35

CFLD (CAYMAN) INVESTMENT LTD 6.5% 21 DECEMBER 2020 3,338,000 3,358,295 0.15

CFLD (CAYMAN) INVESTMENT LTD 8.625% 28 FEBRUARY 2021 967,000 999,839 0.05

CGNPC INTERNATIONAL LTD 3.75% 11 DECEMBER 2027 5,000,000 5,194,000 0.23

CGNPC INTERNATIONAL LTD 4% 19 MAY 2025 3,350,000 3,522,123 0.16

CHAMPION SINCERITY HOLDINGS LTD 8.125% PERPETUAL 2,831,000 2,978,863 0.13

CHARMING LIGHT INVESTMENTS LTD 4.375% 21 DECEMBER 2027 10,000,000 10,511,600 0.47

CHINA AOYUAN GROUP LTD 8.5% 23 JANUARY 2022 3,857,000 4,054,247 0.18

CHINA AOYUAN PROPERTY GROUP LTD 7.5% 10 MAY 2021 4,000,000 4,095,680 0.18

CHINA CINDA FINANCE (2017) I LTD 4.1% 9 MARCH 2024 9,000,000 9,370,980 0.42

CHINA CINDA FINANCE (2017) I LTD 4.75% 21 FEBRUARY 2029 1,125,000 1,226,914 0.06

CHINA CITIC BANK INTERNATIONAL LTD 7.1% PERPETUAL 4,000,000 4,280,920 0.19

CHINA CLEAN ENERGY DEVELOPMENT LTD 4% 05 NOVEMBER 2025 10,000,000 10,488,700 0.47

CHINA CONSTRUCTION BANK ASIA CORP LTD 4.25% 20 AUGUST 2024 16,000,000 16,007,680 0.72

CHINA CONSTRUCTION BANK CORP 4.25% 27 FEBRUARY 2029 7,000,000 7,239,960 0.33

CHINA CONSTRUCTION BANK FRN 13 MAY 2025 18,000,000 18,087,660 0.82

CHINA DEVELOPMENT BANK 3.48% 08 JANUARY 2029 140,000,000 20,042,417 0.90

HoldingsMarket

value

% ofnet

assetsUSD

CHINA DEVELOPMENT BANK 4.14% 11 SEPTEMBER 2020 20,000,000 2,946,130 0.13

CHINA DEVELOPMENT BANK 4.88% 09 FEBRUARY 2028 10,000,000 1,570,557 0.07

CHINA EVERGRANDE GROUP 7.5% 28 JUNE 2023 5,105,000 4,699,357 0.21

CHINA EVERGRANDE GROUP 8.25% 23 MARCH 2022 2,000,000 1,939,880 0.09

CHINA EVERGRANDE GROUP 9.5% 11 APRIL 2022 1,314,000 1,310,689 0.06

CHINA GREAT WALL INTERNATIONAL HOLDINGS IV LTD 3.95% PERPETUAL 3,946,000 3,941,186 0.18

CHINA HONGQIAO GROUP LTD 7.125% 22 JULY 2022 720,000 723,859 0.03

CHINA HUADIAN OVERSEAS DEVELOPMENT MANAGEMENT COMPANY LTD 4% PERPETUAL 5,000,000 5,054,000 0.23

CHINA LIFE INSURANCE CO VAR 3 JULY 2075 10,000,000 10,002,100 0.45

CHINA MENGNIU DAIRY CO LTD 3% 18 JULY 2024 5,932,000 5,921,500 0.27

CHINA OIL AND GAS GROUP 5% 7 MAY 2020 7,333,000 7,406,330 0.33

CHINA OIL AND GAS GROUP LTD 5.5% 25 JANUARY 2023 5,325,000 5,422,234 0.24

CHINA OVERSEAS FINANCE (CAYMAN) VII LTD 4.25% 26 APRIL 2023 5,000,000 5,224,750 0.24

CHINA OVERSEAS FINANCE (CAYMAN) VIII LTD 3.45% 15 JULY 2029 2,357,000 2,356,246 0.11

CHINA OVERSEAS FINANCE CAYMAN LTD 4.75% 26 APRIL 2028 8,000,000 8,854,160 0.40

CHINA OVERSEAS FINANCE CAYMAN LTD 5.375% 29 OCTOBER 2023 10,000,000 10,941,000 0.49

CHINA OVERSEAS GRAND OCEANS FINANCE IV (CAYMAN) LTD 4.875% 01 JUNE 2021 1,088,000 1,116,070 0.05

CHINA RAILWAY XUNJIE CO LTD 3.25% 28 JULY 2026 5,500,000 5,504,620 0.25

CHINA RESOURCES GAS GROUP LTD 4.5% 05 APRIL 2022 6,000,000 6,253,320 0.28

CHINA RESOURCES LAND LTD 3.75% 26 AUGUST 2024 656,000 678,166 0.03

81



HoldingsMarket

value

% ofnet

assetsUSD


CHINA RESOURCES LAND LTD 4.125% 26 FEBRUARY 2029 787,000 830,505 0.04

CHINA SCE GROUP HOLDINGS LTD 7.25% 19 APRIL 2023 5,000,000 4,984,950 0.23

CHINA SCE GROUP HOLDINGS LTD 8.75% 15 JANUARY 2021 1,800,000 1,874,448 0.08

CHINA SCE PROPERTY HOLDINGS LTD 7.45% 17 APRIL 2021 2,764,000 2,826,411 0.13

CHINA SHENHUA OVERSEAS CAPITAL COMPANY LTD 3.875% 20 JANUARY 2025 5,000,000 5,188,850 0.23

CHINA SOUTHERN POWER GRID INTERNATIONAL FINANCE BVI 2018 CO LTD 4.25% 18 SEPTEMBER 2028 4,007,000 4,398,444 0.20

CHINA, PEOPLE’S REPUBLIC OF (GOVERNMENT) 3.16% 27 JUNE 2023 20,000,000 2,936,210 0.13

CHINA, PEOPLE’S REPUBLIC OF (GOVERNMENT) 3.3% 12 JULY 2023 10,000,000 1,471,274 0.07

CHINA, PEOPLE’S REPUBLIC OF (GOVERNMENT) 3.38% 21 NOVEMBER 2024 12,000,000 1,765,783 0.08



CHINALCO FINANCE 3.625% 11 DECEMBER 2019 12,500,000 12,532,375 0.57

CHONG HING BANK LTD 5.7% PERPETUAL 1,750,000 1,778,648 0.08

CIFI HOLDINGS (GROUP) CO LTD 5.5% 23 JANUARY 2022 2,300,000 2,290,961 0.10

CIFI HOLDINGS (GROUP) CO LTD 7.625% 02 MARCH 2021 2,000,000 2,071,840 0.09

CIFI HOLDINGS GROUP CO LTD 5.375% PERP 29 DECEMBER 2049 4,000,000 3,783,760 0.17

CITIC PACIFIC LTD 4% 11 JANUARY 2028 11,000,000 11,374,770 0.51

CITIC PACIFIC LTD 6.625% 15 APRIL 2021 5,000,000 5,295,900 0.24

HoldingsMarket

value

% ofnet

assetsUSD

CITIC PACIFIC LTD 6.8% 17 JANUARY 2023 5,000,000 5,604,600 0.25

CK HUTCHISON INTERNATIONAL (17) LTD 2.875% 05 APRIL 2022 4,500,000 4,522,905 0.20

CLP POWER HK FINANCE LTD VAR PERP 29 MAY 2049 15,000,000 15,028,950 0.68

CMHI FINANCE (BVI) CO LTD 4.375% 06 AUGUST 2023 3,261,000 3,428,322 0.15

CNAC HK FINBRIDGE CO LTD 3.375% 19 JUNE 2024 3,184,000 3,186,292 0.14

CNAC HK FINBRIDGE CO LTD 3.85% 22 DECEMBER 2020 5,600,000 5,604,424 0.25

CNAC HK FINBRIDGE CO LTD 4.75% 19 JUNE 2049 2,211,000 2,410,255 0.11

CNOOC CURTIS FUNDING NO.1 4.5% 03 OCTOBER 2023 10,000,000 10,681,000 0.48

CNOOC FINANCE 2012 LTD 5% 02 MAY 2042 3,500,000 4,199,405 0.19

CNOOC FINANCE 2013 LTD 4.25% 09 MAY 2043 3,000,000 3,261,900 0.15

CNOOC FINANCE 2014 ULC 4.25% 30 APRIL 2024 6,000,000 6,385,200 0.29

CNOOC PETROLEUM NORTH AMERICA ULC 7.875% 15 MARCH 2032 4,000,000 5,797,320 0.26

CNPC HK OVERSEAS CAPITAL LTD 4.5% 28 APRIL 2021 5,000,000 5,150,550 0.23

CNPC HK OVERSEAS CAPITAL LTD 5.95% 28 APRIL 2041 7,000,000 9,285,360 0.42

COSCO FINANCE CO LTD 4% 3 DECEMBER 2022 16,500,000 17,002,425 0.77

COUNTRY GARDEN HOLDINGS CO LTD 7.125% 25 APRIL 2022 3,931,000 4,173,228 0.19

COUNTRY GARDEN HOLDINGS CO LTD 7.125% 27 JANUARY 2022 3,000,000 3,175,860 0.14



COUNTRY GARDEN HOLDINGS CO LTD 8% 27 JANUARY 2024 6,000,000 6,526,500 0.29

DAH SING BANK LTD 5% 15 JANUARY 2029 1,687,000 1,776,478 0.08

DAH SING BANK LTD 6.625% 11 FEBRUARY 2020 6,125,000 6,235,495 0.28

82



HoldingsMarket

value

% ofnet

assetsUSD


DAIMLER INTERNATIONAL FINANCE BV 4.5% 21 SEPTEMBER 2021 10,000,000 1,490,365 0.07

DAIMLER INTERNATIONAL FINANCE BV 4.8% 09 APRIL 2021 16,000,000 2,383,887 0.11

DBS GROUP HOLDINGS LTD 4.52% 11 DECEMBER 2028 2,300,000 2,429,237 0.11

DEVELOPMENT BANK OF MONGOLIA 7.25% 23 OCTOBER 2023 1,723,000 1,807,978 0.08

EASTERN CREATION II INVESTMENT HOLDINGS LTD 2.75% 26 SEPTEMBER 2020 6,000,000 5,994,900 0.27

EASTERN CREATION II INVESTMENT HOLDINGS LTD 4.15% 04 DECEMBER 2021 6,000,000 6,173,100 0.28

EASY TACTIC LTD 8.125% 11 JULY 2024 2,066,000 2,081,371 0.09

EASY TACTIC LTD 8.125% 27 FEBRUARY 2023 3,000,000 3,079,380 0.14

ENN CLEAN ENERGY INTERNATIONAL INVESTMENT LTD 7.5% 27 FEBRUARY 2021 200,000 202,990 0.01

EXPORT IMPORT BANK OF INDIA 2.75% 12 AUGUST 2020 5,000,000 5,000,400 0.23

EXPORT-IMPORT BANK OF KOREA 3% 01 NOVEMBER 2022 4,242,000 4,324,719 0.20

EXPORT-IMPORT BANK OF KOREA 3.25% 12 AUGUST 2026 5,000,000 5,162,700 0.23

EXPORT-IMPORT BANK OF KOREA 4.375% 15 SEPTEMBER 2021 5,000,000 5,206,600 0.23

EXPORT-IMPORT BANK OF THAILAND 3.41963% 20 NOVEMBER 2023 1,200,000 1,206,240 0.05

FAR EAST HORIZON LTD 4.33575% 03 JULY 2021 5,036,000 5,057,756 0.23

FRANSHION BRILLIANT LTD 4% 21 JUNE 2024 4,634,000 4,701,147 0.21

FRANSHION BRILLIANT LTD 4.25% 23 JULY 2029 2,978,000 2,968,977 0.13

FUFENG GROUP LTD 5.875% 28 AUGUST 2021 1,280,000 1,328,998 0.06

FWD GROUP LTD 5.75% 09 JULY 2024 1,632,000 1,665,750 0.08

HoldingsMarket

value

% ofnet

assetsUSD

FWD LTD 5.5% PERP 29 DECEMBER 2049 5,915,000 5,622,917 0.25

GOHL CAPITAL LTD 4.25% 24 JANUARY 2027 15,000,000 15,589,050 0.70

GOLDEN WHEEL TIANDI HOLDINGS COMPANY LTD 7% 18 JANUARY 2021 4,250,000 4,018,503 0.18

GREENKO DUTCH BV 4.875% 24 JULY 2022 3,000,000 3,015,480 0.14

GREENKO INVESTMENT CO 4.875% 16 AUGUST 2023 3,400,000 3,372,086 0.15

GS CALTEX CORP 3% 04 JUNE 2024 8,000,000 8,068,080 0.36HAIMEN ZHONGNAN INVESTMENT

DEVELOPMENT INTERNATIONAL CO LTD 10.875% 18 JUNE 2022 334,000 334,895 0.02

HANG LUNG PROPERTIES FINANCE 4.75% 25 JUNE 2022 8,300,000 8,681,302 0.39

HENGJIAN INTERNATIONAL INVESTMENT LTD 2.75% 11 JULY 2020 3,090,000 3,076,528 0.14

HKT CAPITAL NO 2 LTD 3.625% 02 APRIL 2025 11,000,000 11,305,360 0.51

HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLES REPUBLIC OF CHINA 2.5% 28 MAY 2024 1,991,000 2,029,386 0.09

HONGHUA GROUP LTD 6.375% 01 AUGUST 2022 2,341,000 2,368,062 0.11

HONGKONG LAND FINANCE (CAYMAN ISLANDS) CO LTD 4.625% 16 JANUARY 2024 5,000,000 5,405,500 0.24

HPCL-MITTAL ENERGY LTD 5.25% 28 APRIL 2027 3,525,000 3,569,274 0.16

HT GLOBAL IT SOLUTIONS HOLDINGS LTD 7% 14 JULY 2021 1,150,000 1,190,917 0.05

HUANENG HONG KONG CAPITAL LTD 3.6% PERP 29 DECEMBER 2049 6,000,000 5,901,120 0.27

HUARONG FINANCE 2017 CO LTD 3.511% 03 JULY 2021 6,730,000 6,716,876 0.30

HUARONG FINANCE 2017 CO LTD 4% PERP 29 DECEMBER 2049 3,000,000 2,988,690 0.13

HUARONG FINANCE 2017 CO LTD 4.25% 07 NOVEMBER 2027 3,000,000 3,046,020 0.14

HUARONG FINANCE 2017 CO LTD 4.5% PERP 29 DECEMBER 2049 5,000,000 5,039,250 0.23

83



HoldingsMarket

value

% ofnet

assetsUSD


HUARONG FINANCE 2017 CO LTD 4.75% 27 APRIL 2027 5,000,000 5,262,050 0.24

HUARONG FINANCE 2019 CO LTD 3.75% 29 MAY 2024 2,780,000 2,808,412 0.13

HUARONG FINANCE 2019 CO LTD 4.5% 29 MAY 2029 2,314,000 2,388,141 0.11

HUARONG FINANCE II CO LTD 5% 19 NOVEMBER 2025 10,000,000 10,730,200 0.48

HUTCHISON WHAMPOA INTERNATIONAL 14 LTD 3.625% 31 OCTOBER 2024 5,000,000 5,219,150 0.24

HUTCHISON WHAMPOA INTERNATIONAL LTD 7.45% 24 NOVEMBER 2033 3,750,000 5,483,550 0.25

ICBCIL FINANCE CO LTD 3.2% 10 NOVEMBER 2020 6,000,000 6,024,480 0.27

ICBCIL FINANCE CO LTD 3.26375% 15 MAY 2021 714,000 712,829 0.03

ICBCIL FINANCE CO LTD 3.65% 05 MARCH 2022 5,000,000 5,080,300 0.23

ICICI BANK LTD (DUBAI BRANCH) 3.8% 14 DECEMBER 2027 10,000,000 10,163,800 0.46

ICICI BANK LTD (DUBAI BRANCH) 4% 18 MARCH 2026 6,750,000 6,946,627 0.31

ICICI BANK LTD 5.75% 16 NOVEMBER 2020 5,000,000 5,175,300 0.23

IFC DEVELOPMENT CORPORATE TREASURY LTD 3.625% 17 APRIL 2029 10,000,000 10,491,800 0.47

INDIAN OIL CORPN LTD 4.75% 16 JANUARY 2024 3,439,000 3,648,848 0.16

INDIKA ENERGY CAPITAL II PTE LTD 6.875% 10 APRIL 2022 4,567,000 4,744,976 0.21

INDIKA ENERGY CAPITAL III PTE LTD 5.875% 09 NOVEMBER 2024 1,600,000 1,562,704 0.07

INDONESIA (REPUBLIC OF) 3.75% 25 APRIL 2022 15,000,000 15,448,350 0.70

INDONESIA (REPUBLIC OF) 4.875% 05 MAY 2021 7,000,000 7,284,410 0.33

INDONESIA (REPUBLIC OF) 6.625% 17 FEBRUARY 2037 4,000,000 5,260,680 0.24

HoldingsMarket

value

% ofnet

assetsUSD

INDONESIA (REPUBLIC OF) 6.75% 15 JANUARY 2044 14,500,000 20,043,495 0.90


INDONESIA (REPUBLIC OF) 8.5% 12 OCTOBER 2035 6,000,000 9,120,600 0.41

INDONESIA ASAHAN ALUMINIUM (PERSERO) PT 5.23% 15 NOVEMBER 2021 2,563,000 2,695,994 0.12



INDONESIA, REPUBLIC OF (GOVERNMENT) 5.35% 11 FEBRUARY 2049 8,000,000 9,672,640 0.44

INDONESIA, REPUBLIC OF (GOVERNMENT) 7.5% 15 JUNE 2035 100,000,000,000 7,085,682 0.32

INDONESIA, REPUBLIC OF (GOVERNMENT) 8.25% 15 MAY 2029 100,000,000,000 7,574,659 0.34

INDUSTRIAL AND COMMERCIAL BANK OF CHINA ASIA LTD 4.25% PERP 29 DECEMBER 2049 7,773,000 7,780,851 0.35

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD 4.875% 21 SEPTEMBER 2025 3,000,000 3,251,670 0.15

INDUSTRIAL BANK OF KOREA 3.9% PERP 29 DECEMBER 2049 2,763,000 2,773,610 0.13

JIANGXI RAILWAY INVESTMENT GROUP CORP 4.85% 21 FEBRUARY 2022 1,308,000 1,344,088 0.06

JINKE PROPERTY GROUP CO LTD 8.375% 20 JUNE 2021 4,800,000 4,831,680 0.22

JOY TREASURE ASSETS HOLDINGS INC 4.5% 20 MARCH 2029 277,000 293,847 0.01

JSW STEEL LTD 5.25% 13 APRIL 2022 3,000,000 3,070,200 0.14JUBILANT PHARMA LTD 6% 05

MARCH 2024 5,000,000 5,167,900 0.23KAISA GROUP HOLDINGS LTD 11.5%

30 JANUARY 2023 3,213,000 3,274,657 0.15

84



HoldingsMarket

value

% ofnet

assetsUSD


KEB HANA BANK 2.125% 18 OCTOBER 2021 5,000,000 4,954,150 0.22

KEB HANA BANK 3.375% 30 JANUARY 2022 5,000,000 5,100,150 0.23

KOOKMIN BANK 2.875% 25 MARCH 2023 12,000,000 12,087,720 0.55

KOOKMIN BANK 4.35% PERPETUAL 31 DECEMBER 2049 2,538,000 2,585,816 0.12

KOOKMIN BANK 4.5% 01 FEBRUARY 2029 3,314,000 3,558,805 0.16

KOREA DEVELOPMENT BANK 4.585% 13 FEBRUARY 2021 30,000,000 4,455,118 0.20

KOREA ELECTRIC POWER CORP 5.125% 23 APRIL 2034 10,250,000 12,558,659 0.57

KOREA EXCHANGE BANK 4.25% 14 OCTOBER 2024 9,250,000 9,758,935 0.44

KOREA FINANCE CORP 4.625% 16 NOVEMBER 2021 8,500,000 8,930,100 0.40

KOREA HOUSING FINANCE CORP 3% 31 OCTOBER 2022 6,316,000 6,411,498 0.29

KOREA WESTERN POWER CO LTD 3.75% 07 JUNE 2023 1,782,000 1,857,325 0.08

KOREA, REPUBLIC OF (GOVERNMENT) 2.5% 19 JUNE 2029 4,554,000 4,541,158 0.21

KOREA, REPUBLIC OF (GOVERNMENT) 3.5% 20 SEPTEMBER 2028 3,529,000 3,807,685 0.17

KRUNG THAI BANK PCL/CAYMAN VAR 26 DECEMBER 2024 5,935,000 5,972,450 0.27

KWG GROUP HOLDINGS LTD 7.875% 01 SEPTEMBER 2023 4,500,000 4,577,265 0.21

LAI FUNG BONDS (2018) LTD 5.65% 18 JANUARY 2023 5,925,000 5,714,189 0.26

LEMBAGA PEMBIAYAAN EKSPOR INDONESIA 3.875% 06 APRIL 2024 1,111,000 1,152,929 0.05

LG CHEM LTD 3.25% 15 OCTOBER 2024 3,410,000 3,489,487 0.16

LG CHEM LTD 3.625% 15 APRIL 2029 6,742,000 6,949,856 0.31LISTRINDO CAPITAL BV 4.95%

14 SEPTEMBER 2026 5,000,000 5,035,700 0.23LMIRT CAPITAL PTE LTD 7.25%

19 JUNE 2024 4,000,000 4,116,040 0.19

HoldingsMarket

value

% ofnet

assetsUSD

LOGAN PROPERTY HOLDINGS CO LTD 7.5% 25 AUGUST 2022 1,910,000 1,984,586 0.09

LONGFOR GROUP HOLDINGS LTD 4.5% 16 JANUARY 2028 4,400,000 4,518,580 0.20

LOTTE PROPERTY & DEVELOPMENT 3.268% 07 AUGUST 2021 1,067,000 1,073,167 0.05

LOTTE PROPERTY & DEVELOPMENT CO LTD 3.01425% 06 AUGUST 2022 3,273,000 3,273,000 0.15

LSD BONDS 2017 LTD 4.6% 13 SEPTEMBER 2022 8,000,000 7,713,040 0.35

LTC GB LTD 2.75% 26 MAY 2021 5,000,000 4,961,050 0.22MALAYAN BANKING BHD NULL%

16 AUGUST 2024 7,966,000 7,970,142 0.36MARBLE II PTE LTD 5.3% 20 JUNE

2022 5,289,000 5,347,708 0.24MCC HOLDING HONG KONG CORP

LTD 2.95% 31 MAY 2020 6,500,000 6,495,580 0.29MEDCO STRAIT SERVICES PTE LTD

8.5% 17 AUGUST 2022 2,000,000 2,139,520 0.10MELCO RESORTS FINANCE LTD

5.625% 17 JULY 2027 3,000,000 3,103,770 0.14MGM CHINA HOLDINGS LTD 5.375%

15 MAY 2024 1,000,000 1,037,430 0.05MINOR INTERNATIONAL PCL 4.661%

PERPETUAL 7,769,000 7,990,106 0.36MODERN LAND (CHINA) CO LTD

7.95% 05 MARCH 2021 4,306,000 3,954,587 0.18MODERNLAND OVERSEAS PTE LTD

6.95% 13 APRIL 2024 3,111,000 2,996,951 0.14NEXEN ENERGY ULC 5.875%

10 MARCH 2035 8,000,000 10,030,640 0.45NTPC LTD 3.75% 03 APRIL 2024 1,659,000 1,697,522 0.08NTPC LTD 4.25% 26 FEBRUARY 2026 8,000,000 8,383,600 0.38NTPC LTD 4.5% 19 MARCH 2028 2,500,000 2,669,400 0.12NTPC LTD 4.75% 03 OCTOBER 2022 4,400,000 4,621,496 0.21NWD FINANCE (BVI) LTD 5.75% PERP

29 DECEMBER 2049 3,700,000 3,677,171 0.17NWD MTN LTD 4.125% 18 JULY 2029 4,083,000 4,031,350 0.18NWD MTN LTD 4.375% 30 NOVEMBER

2022 15,000,000 15,575,850 0.70OIL INDIA INTERNATIONAL PTE LTD

4% 21 APRIL 2027 4,000,000 4,107,000 0.19OIL INDIA LTD 5.125% 04 FEBRUARY

2029 2,660,000 2,946,668 0.13

85



HoldingsMarket

value

% ofnet

assetsUSD


ONGC VIDESH LTD 4.625% 15 JULY 2024 5,000,000 5,324,350 0.24

ONGC VIDESH VANKORNEFT PTE LTD 3.75% 27 JULY 2026 4,000,000 4,081,280 0.18

OVERSEA-CHINESE BANKING VAR 15 OCTOBER 2024 19,000,000 19,036,860 0.86

PAKUWON PRIMA PTE LTD 5% 14 FEBUARY 2024 7,604,000 7,669,927 0.35

PCCW-HKT CAPITAL NO.5 LTD 3.75% 08 MARCH 2023 6,000,000 6,159,120 0.28

PELABUHAN INDONESIA II (PERSERO) PT 5.375% 5 MAY 2045 4,500,000 4,845,825 0.22

PERTAMINA (PERSERO) PT 4.875% 03 MAY 2022 3,000,000 3,169,830 0.14



PERTAMINA (PERSERO) PT 6.5% 07 NOVEMBER 2048 3,520,000 4,451,814 0.20


PERTAMINA 5.25% 23 MAY 2021 18,000,000 18,837,900 0.85PERTAMINA PERSERO PT 6% 03

MAY 2042 10,000,000 11,709,500 0.53PERUSAHAAN GAS NEGARA 5.125%

16 MAY 2024 5,000,000 5,427,150 0.24PERUSAHAAN LISTRIK 4.125%

15 MAY 2027 3,000,000 3,123,810 0.14PERUSAHAAN LISTRIK NEGAR 5.25%

24 OCTOBER 2042 4,000,000 4,306,520 0.19PERUSAHAAN LISTRIK NEGARA

(PERSERO) PT 5.375% 25 JANUARY 2029 5,000,000 5,685,900 0.26

PERUSAHAAN LISTRIK NEGARA (PERSERO) PT 5.45% 21 MAY 2028 3,000,000 3,406,260 0.15


PERUSAHAAN LISTRIK NEGARA (PERSERO) PT 6.25% 25 JANUARY 2049 5,000,000 6,149,050 0.28

HoldingsMarket

value

% ofnet

assetsUSD

PETRON CORP 4.6% PERP 29 DECEMBER 2049 5,151,000 5,092,845 0.23

PETRONAS CAPITAL LTD 4.5% 18 MARCH 2045 3,000,000 3,527,010 0.16

PETRONAS CAPITAL LTD 7.875% 22 MAY 2022 12,000,000 13,701,120 0.62

PHILIPPINE NATIONAL BANK 3.28% 27 SEPTEMBER 2024 4,345,000 4,345,087 0.20

PHILIPPINES (REPUBLIC OF) 10.625% 16 MARCH 2025 6,750,000 9,691,515 0.44

PHILIPPINES (REPUBLIC OF) 5% 13 JANUARY 2037 7,000,000 8,817,060 0.40

PHILIPPINES (REPUBLIC OF) 6.375% 15 JANUARY 2032 3,000,000 4,070,130 0.18

PHILIPPINES (REPUBLIC OF) 6.375% 23 OCTOBER 2034 10,000,000 14,037,100 0.63

PHILIPPINES (REPUBLIC OF) 7.75% 14 JANUARY 2031 10,000,000 14,798,600 0.67

PHILIPPINES (REPUBLIC OF) 9.5% 2 FEBERUARY 2030 3,000,000 4,826,460 0.22

PHILIPPINES, REPUBLIC OF THE (GOVERNMENT) 3.75% 14 JANUARY 2029 6,835,000 7,499,909 0.34

POSCO 4% 01 AUGUST 2023 2,412,000 2,522,711 0.11POSTAL SAVINGS BANK OF CHINA

CO LTD 4.5% PERP 29 DECEMBER 2049 15,000,000 15,000,300 0.68

POWER FINANCE CORPORATION LTD 5.25% 10 AUGUST 2028 4,000,000 4,347,960 0.20

POWER FINANCE CORPORATION LTD 6.15% 06 DECEMBER 2028 6,236,000 7,221,912 0.33

POWER SECTOR ASSETS 7.39% 02 DECEMBER 2024 12,000,000 14,822,640 0.67

PT PELABUHAN INDO II 4.25% 5 MAY 2025 4,000,000 4,198,880 0.19

QATAR, STATE OF (GOVERNMENT) 4.817% 14 MARCH 2049 6,000,000 6,967,440 0.31

RADIANT ACCESS LTD 4.6% PERP 29 DECEMBER 2049 5,000,000 4,865,500 0.22

REDCO PROPERTIES GROUP LTD 13.5% 21 JANUARY 2020 600,000 617,898 0.03

REDCO PROPERTIES GROUP LTD 9.875% 02 MAY 2021 880,000 886,274 0.04

RELIANCE HOLDINGS USA INC 5.4% 14 FEBRUARY 2022 11,525,000 12,213,619 0.55

86



HoldingsMarket

value

% ofnet

assetsUSD


RELIANCE HOLDINGS USA INC 6.25% 19 OCTOBER 2040 4,500,000 5,903,955 0.27

RENEW CLEAN ENERGY PVT LTD 6.67% 12 MARCH 2024 2,950,000 3,026,553 0.14

REPUBLIC OF INDONESIA (GOVERNMENT) 5.875% 15 JANUARY 2024 10,000,000 11,277,800 0.51

REPUBLIC OF INDONESIA (GOVERNMENT) 5.95% 08 JANUARY 2046 12,000,000 15,236,760 0.69

REPUBLIC OF PHILIPPINES (GOVERNMENT) 3.7% 02 FEBUARY 2042 2,000,000 2,196,060 0.10

RESORTS WORLD LAS VEGAS LLC 4.625% 16 APRIL 2029 6,800,000 7,125,040 0.32

RHB BANK BHD 3.766% 19 FEBRUARY 2024 9,000,000 9,348,390 0.42

RKPF OVERSEAS 2019 A LTD 7.875% 01 FEBRUARY 2023 729,000 772,281 0.03

RKPF OVERSEAS 2019 B LTD 7.75% 18 APRIL 2021 739,000 772,765 0.03

RONGSHI INTERNATIONAL FINANCE LTD 3.75% 21 MAY 2029 8,510,000 8,882,312 0.40

RONGXINGDA DEVELOPMENT BVI LTD 8% 24 APRIL 2022 2,191,000 2,133,662 0.10

RONSHINE CHINA HOLDINGS LTD 11.25% 22 AUGUST 2021 758,000 809,120 0.04

RONSHINE CHINA HOLDINGS LTD 8.75% 25 OCTOBER 2022 4,146,000 4,127,426 0.19

RONSHINE CHINA HOLDINGS LTD 8.95% 22 JANUARY 2023 4,111,000 4,098,996 0.18

ROYAL CAPITAL BV 4.875% PERP 29 DECEMBER 2049 4,000,000 3,994,320 0.18



RURAL ELECTRIFICATION CORP LTD 3.875% 7 JULY 2027 1,000,000 993,600 0.04

SANDS CHINA LTD 4.6% 08 AUGUST 2023 2,374,000 2,517,295 0.11

HoldingsMarket

value

% ofnet

assetsUSD

SANDS CHINA LTD 5.4% 08 AUGUST 2028 10,000,000 11,219,100 0.51

SANTOS FINANCE LTD 5.25% 13 MARCH 2029 2,308,000 2,433,878 0.11

SAUDI ARABIAN OIL CO 3.5% 16 APRIL 2029 1,500,000 1,540,290 0.07

SAUDI ARABIAN OIL CO 4.375% 16 APRIL 2049 3,318,000 3,451,815 0.16

SECURITY BANK CORP 4.5% 25 SEPTEMBER 2023 2,844,000 3,007,416 0.14

SHANGHAI COMMERCIAL BANK LTD 3.75% 29 NOVEMBER 2027 7,000,000 7,019,390 0.32

SHANGHAI COMMERCIAL BANK LTD 5% 17 JANUARY 2029 2,500,000 2,632,375 0.12

SHANGHAI PORT GROUP (BVI) DEVELOPMENT CO LTD 3.375% 18 JUNE 2029 7,477,000 7,551,321 0.34

SHENHUA OVERSEAS CAPITAL 3.125% 20 JANUARY 2020 8,000,000 8,007,200 0.36

SHIMAO PROPERTY HOLDINGS LTD 5.6% 15 JULY 2026 2,487,000 2,502,469 0.11

SHIMAO PROPERTY HOLDINGS LTD 6.125% 21 FEBRUARY 2024 5,000,000 5,268,350 0.24

SHIMAO PROPERTY HOLDINGS LTD 6.375% 15 OCTOBER 2021 3,514,000 3,669,916 0.17

SHINHAN BANK 3.75% 20 SEPTEMBER 2027 7,887,000 8,027,546 0.36

SHINHAN BANK 3.875% 24 MARCH 2026 12,000,000 12,330,240 0.56

SHINHAN BANK 4% 23 APRIL 2029 4,075,000 4,221,252 0.19SHINHAN BANK 4.5% 26 MARCH

2028 8,000,000 8,581,360 0.39SHINHAN FINANCIAL GROUP CO LTD

3.34% 05 FEBRUARY 2030 1,891,000 1,902,459 0.09SHINHAN FINANCIAL GROUP CO LTD

5.875% PERPETUAL 1,800,000 1,922,796 0.09SHINSEGAE CO LTD VAR 08 MAY

2045 9,750,000 9,703,200 0.44SHOUGANG GROUP CO LTD 4%

23 MAY 2024 6,000,000 6,152,640 0.28SHRIRAM TRANSPORT FINANCE

COMPANY LTD 5.95% 24 OCTOBER 2022 2,460,000 2,528,191 0.11

SHUI ON DEVELOPMENT (HOLDING) LTD 6.25% 28 NOVEMBER 2021 4,424,000 4,526,283 0.20

87



HoldingsMarket

value

% ofnet

assetsUSD


SIAM COMMERCIAL BANK PUBLIC COMPANY LIMITED (CAYMAN ISLANDS BRANCH) 3.9% 11 FEBRUARY 2024 10,000,000 10,442,700 0.47

SICHUAN RAILWAY INVESTMENT GROUP CO LTD 3.8% 27 JUNE 2022 2,903,000 2,924,598 0.13

SIHC INTERNATIONAL CAPITAL LTD 3.95% 26 SEPTEMBER 2021 2,946,000 2,994,845 0.14

SIHC INTERNATIONAL CAPITAL LTD 4.35% 26 SEPTEMBER 2023 3,110,000 3,244,134 0.15

SINGTEL GROUP TREASURY PTE LTD 2.375% 03 OCTOBER 2026 5,000,000 4,865,000 0.22

SINGTEL GROUP TREASURY PTE LTD 3.25% 30 JUNE 2025 3,000,000 3,094,710 0.14

SINGTEL GROUP TREASURY PTE LTD 3.875% 28 AUGUST 2028 10,000,000 10,814,300 0.49

SINO-OCEAN LAND TREASURE III LTD 4.9% 29 DECEMBER 2049 2,222,000 1,984,690 0.09

SINO-OCEAN LAND TREASURE IV LTD 4.75% 05 AUGUST 2029 4,317,000 4,234,718 0.19

SINOPEC CAPITAL 2013 3.125% 24 APRIL 2023 12,000,000 12,158,880 0.55

SINOPEC GROUP OVERSEAS DEVELOPMENT (2017) LTD 3.25% 13 SEPTEMBER 2027 3,500,000 3,560,655 0.16

SINOPEC GROUP OVERSEAS DEVELOPMENT 2013 LTD 5.375% 17 OCTOBER 2043 5,000,000 6,344,800 0.29

SINOPEC GROUP OVERSEAS DEVELOPMENT 2015 3.25% 28 APRIL 2025 14,000,000 14,316,540 0.65

SINOPEC GROUP OVERSEAS DEVELOPMENT 2016 LTD 2.75% 29 SEPTEMBER 2026 10,000,000 9,871,000 0.45

SINOPEC GROUP OVERSEAS DEVELOPMENT 2016 LTD 4.25% 03 MAY 2046 1,700,000 1,863,013 0.08

SINOPEC GROUP OVERSEAS DEVELOPMENT 2017 LTD 4.25% 12 APRIL 2047 1,700,000 1,865,546 0.08

HoldingsMarket

value

% ofnet

assetsUSD

SINOPEC GROUP OVERSEAS DEVELOPMENT 4.875% 17 MAY 2042 7,165,000 8,468,815 0.38

SK BROADBAND CO LTD 3.875% 13 AUGUST 2023 2,180,000 2,269,903 0.10

SK INNOVATION CO LTD 4.125% 13 JULY 2023 8,000,000 8,390,160 0.38

SK TELECOM CO LTD 3.75% 16 APRIL 2023 1,067,000 1,106,276 0.05

SKYSEA INTERNATIONAL CAPITAL MANAGEMENT 4.875% 07 DECEMBER 2021 5,000,000 5,234,950 0.24

SP GROUP TREASURY PTE LTD 3.375% 27 FEBRUARY 2029 2,837,000 2,975,644 0.13

SPIC LUXEMBOURG LATIN AMERICA RENEWABLE ENERGY INVESTMENT COMPANY SARL 4.65% 30 OCTOBER 2023 11,000,000 11,607,970 0.52

SRI LANKA, DEMOCRATIC SOCIALIST REPUBLIC OF (GOVERNMENT) 6.85% 14 MARCH 2024 8,000,000 8,258,160 0.37


SRILANKAN AIRLINES LTD 7% 25 JUNE 2024 400,000 400,368 0.02

STATE BANK OF INDIA (LONDON BRANCH) 4% 24 JANUARY 2022 2,589,000 2,655,227 0.12

STATE BANK OF INDIA (LONDON BRANCH) 4.5% 28 SEPTEMBER 2023 5,000,000 5,270,650 0.24

STATE GRID OVERSEAS INVESTMENT (2016) LTD 2.75% 04 MAY 2022 5,000,000 5,010,000 0.23

STATE GRID OVERSEAS INVESTMENT 4.85% 07 MAY 2044 4,000,000 4,826,080 0.22

STUDIO CITY FINANCE LTD 7.25% 11 FEBRUARY 2024 1,543,000 1,639,515 0.07

SUN HUNG KAI PROPERTIES (CAPITAL MARKET) LTD 3.75% 25 FEBRUARY 2029 2,598,000 2,755,906 0.12

SUN HUNG KAI PROPERTIES CAPITAL 4.5% 14 FEBRUARY 2022 5,000,000 5,223,000 0.24

SUNAC CHINA HOLDINGS LTD 7.875% 15 FEBRUARY 2022 8,000,000 8,145,680 0.37

88



HoldingsMarket

value

% ofnet

assetsUSD


SUNNY EXPRESS ENTERPRISES CORP 3.5% 21 MARCH 2022 1,635,000 1,664,201 0.08

SWIRE PROPERTIES MTN FINANCING LTD 3.625% 13 JANUARY 2026 8,000,000 8,254,400 0.37

TELEKOM MALAYSIA BERHAD 7.875% 01 AUGUST 2025 2,000,000 2,496,340 0.11

TENCENT HOLDINGS LTD 3.595% 19 JANUARY 2028 5,000,000 5,156,200 0.23

TENCENT HOLDINGS LTD 3.925% 19 JANUARY 2038 6,000,000 6,218,160 0.28

TENCENT HOLDINGS LTD 3.975% 11 APRIL 2029 4,721,000 4,975,226 0.22

THETA CAPITAL PTE LTD 7% 11 APRIL 2022 7,500,000 7,445,025 0.34

TIMES CHINA HLDG LTD 7.85% 04 JUNE 2021 6,000,000 6,185,700 0.28

TIMES CHINA HOLDINGS LTD 10.95% 27 NOVEMBER 2020 2,360,000 2,527,772 0.11

TIMES CHINA HOLDINGS LTD 6.75% 16 JULY 2023 4,000,000 3,985,640 0.18

TIMES CHINA HOLDINGS LTD 7.625% 21 FEBRUARY 2022 2,000,000 2,062,080 0.09

TIMES PROPERTY HOLDINGS LTD 5.75% 26 APRIL 2022 1,840,000 1,813,541 0.08

TOWNGAS (FINANCE) LTD 4.75% PERPETUAL 1,301,000 1,356,683 0.06

UHI CAPITAL LTD 3% 12 JUNE 2024 4,930,000 4,932,761 0.22UNITED OVERSEAS BANK LTD 3.5%

16 SEPTEMBER 2026 7,000,000 7,067,410 0.32UNITED OVERSEAS BANK LTD VAR

29 DECEMBER 2049 9,000,000 9,038,430 0.41VANKE REAL ESTATE HONG KONG

CO LTD 3.88% 25 MAY 2023 1,502,000 1,508,759 0.07VANKE REAL ESTATE HONG KONG

CO LTD 3.975% 09 NOVEMBER 2027 4,195,000 4,251,339 0.19

VANKE REAL ESTATE HONG KONG CO LTD 5.35% 11 MARCH 2024 12,500,000 13,474,750 0.61

VEDANTA RESOURCES FINANCE II PLC 8% 23 APRIL 2023 6,000,000 6,190,500 0.28

HoldingsMarket

value

% ofnet

assetsUSD

VEDANTA RESOURCES LTD 6.375% 30 JULY 2022 2,070,000 2,070,869 0.09

VEDANTA RESOURCES PLC 8.25% 07 JUNE 2021 6,000,000 6,335,340 0.29

VIGOROUS CHAMPION INTERNATIONAL LTD 3.625% 28 MAY 2024 2,240,000 2,275,190 0.10

VIGOROUS CHAMPION INTERNATIONAL LTD 4.375% 10 SEPTEMBER 2023 6,000,000 6,254,280 0.28

VLL INTERNATIONAL INC 5.75% 28 NOVEMBER 2024 2,350,000 2,392,629 0.11

WANDA PROPERTIES GLOBAL CO LTD 6.25% 27 FEBRUARY 2020 2,085,000 2,098,511 0.09

WEIBO CORP 3.5% 05 JULY 2024 4,141,000 4,160,380 0.19WEST CHINA CEMENT LTD 6.5%

11 SEPTEMBER 2019 3,000,000 1,504,725 0.07WING LUNG BANK LTD 3.75%

22 NOVEMBER 2027 8,000,000 7,968,320 0.36WOORI BANK 2.625% 22 JULY 2020 6,000,000 6,005,820 0.27WOORI BANK 4.75% 30 APRIL 2024 15,000,000 16,000,500 0.72WOORI BANK 5.125% 06 AUGUST

2028 1,375,000 1,528,615 0.07WTT INVESTMENT LTD 5.5%

21 NOVEMBER 2022 6,000,000 6,167,160 0.28WUHAN STATE-OWNED ASSETS

MANAGEMENT LTD CO 3.8% 18 DECEMBER 2020 4,827,000 4,798,135 0.22

WYNN MACAU LTD 5.5% 01 OCTOBER 2027 1,964,000 1,976,746 0.09

XIAN MUNICIPAL INFRASTRUCTURE CONSTRUCTION INVESTMENT GROUP CORP LTD 4% 24 JUNE 2022 1,948,000 1,955,091 0.09

YINGDE GASES INVESTMENT LTD 6.25% 19 JANUARY 2023 5,000,000 5,088,400 0.23

YUZHOU PROPERTIES COMPANY LTD 6% 25 OCTOBER 2023 560,000 526,266 0.02

YUZHOU PROPERTIES COMPANY LTD 7.9% 11 MAY 2021 1,889,000 1,952,943 0.09

YUZHOU PROPERTIES COMPANY LTD 8.5% 04 FEBRUARY 2023 6,000,000 6,223,140 0.28

YUZHOU PROPERTIES COMPANY LTD 8.625% 23 JANUARY 2022 1,100,000 1,151,216 0.05

89



HoldingsMarket

value

% ofnet

assetsUSD


ZHENRO PROPERTIES GROU0P LTD 8.65% 21 JANUARY 2023 1,811,000 1,804,843 0.08

ZHENRO PROPERTIES GROUP LTD 9.15% 08 MARCH 2022 1,600,000 1,637,232 0.07

2,211,203,239 99.79

Unlisted but quoted investments

AGILE GROUP HOLDINGS LTD NULL% PERP 29 DECEMBER 2049 1,029,000 1,071,014 0.05

GEMDALE EVER PROSPERITY INVESTMENT LTD 4.95% 26 JULY 2022 4,075,000 4,007,722 0.18

GEMDALE EVER PROSPERITY INVESTMENT LTD 6% 06 SEPTEMBER 2021 2,470,000 2,504,852 0.11

GREENKO SOLAR (MAURITIUS) LTD 5.95% 29 JULY 2026 2,686,000 2,689,331 0.12

HKCG FINANCE LTD 4.45% 26 SEPTEMBER 2021 20,000,000 2,981,600 0.14

LLPL CAPITAL PTE LTD 6.875% 04 FEBRUARY 2039 2,938,000 3,414,602 0.15

PERTAMINA (PERSERO) PT 3.65% 30 JULY 2029 835,000 840,979 0.04

17,510,100 0.79

Debt securities (Total) 2,228,713,339 100.58

Unit trustsUnlisted but quoted investments

HSBC ALL CHINA BOND ZC-USD 150,000 1,581,000 0.07

HoldingsMarket

value

% ofnet

assetsUSD

Derivative assets

Foreign currency forward contracts 181 0.00

Total financial assets 2,230,294,520 100.65


Derivative liabilities

Foreign currency forward contracts (662,950) (0.03)

Total financial liabilities (662,950) (0.03)

Total net investments (Total cost of investments: US$2,159,617,444) 2,229,631,570 100.62

Other net assets (13,677,305) (0.62)

Total net assets 2,215,954,265 100.00

90


HSBC China Momentum Fundas at 31 July 2019

HoldingsMarket

value

% ofnet

assetsUSD

Financial assets

EquitiesList investments

ChinaGREE ELECTRIC APPLIANCES INC OF

ZHUHAI 86,898 694,664 1.42HUBEI JUMPCAN PHARMACEUTICAL

CO LTD 45 197 0.00JIANGSU HENGRUI MEDICINE CO

LTD 88,495 859,601 1.76KWEICHOW MOUTAI CO LTD 17,385 2,453,587 5.02LUXSHARE PRECISION INDUSTRY

CO LTD 329,133 1,031,615 2.11

5,039,664 10.31

Hong Kong3SBIO INC 406,500 695,857 1.42AGRICULTURAL BANK OF CHINA LTD 2,210,000 900,612 1.84AIA GROUP LTD 159,600 1,649,439 3.37ANTA SPORTS PRODUCTS LTD 95,000 713,601 1.46CANSINO BIOLOGICS INC 30,400 143,303 0.29CHINA CONSTRUCTION BANK H

SHARES 4,017,760 3,115,498 6.37CHINA EDUCATION GROUP

HOLDINGS LTD 11,000 17,284 0.04CHINA GALAXY SECURITIES CO LTD 285,000 153,643 0.31CHINA LIFE INSURANCE CO LTD 202,000 519,973 1.06CHINA MENGNIU DAIRY CO LTD 115,000 467,175 0.95CHINA MERCHANTS BANK CO LTD 273,500 1,371,361 2.80CHINA MOBILE LTD 143,000 1,219,388 2.49CHINA RAILWAY CONSTRUCTION

CORP LTD 316,500 368,338 0.75CHINA RAILWAY GROUP LTD 106,000 74,748 0.15CHINA RESOURCES BEER HOLDINGS

CO LTD 168,667 797,235 1.63CHINA RESOURCES GAS GROUP LTD 26,000 132,526 0.27CHINA RESOURCES LAND LTD 196,000 845,054 1.73CHINA TOWER CORP LTD 4,370,000 1,138,850 2.33CNOOC LTD 1,353,000 2,236,592 4.57

HoldingsMarket

value

% ofnet

assetsUSD

CRRC CORP LTD 120,000 94,891 0.19ENN ENERGY HOLDINGS LTD 27,800 288,551 0.59GUANGZHOU AUTOMOBILE GROUP

CO LTD 82,000 84,327 0.17GUANGZHOU R&F PROPERTIES CO

LTD 28,800 52,612 0.11HEALTH AND HAPPINESS (H&H)

INTERNATIONAL HOLDINGS LTD 95,000 557,653 1.14INDUSTRIAL AND COMMERCIAL

BANK OF CHINA H SHARES 2,036,690 1,378,972 2.82INNOVENT BIOLOGICS INC 14,000 45,248 0.09JINXIN FERTILITY GROUP LTD 36,000 44,702 0.09LI NING CO LTD 438,000 1,088,859 2.23LONGFOR PROPERTIES CO LTD 178,500 665,849 1.36MEITUAN DIANPING 70,300 574,316 1.17PETROCHINA CO LTD H SHARES 300,000 159,430 0.33PICC PROPERTY AND CASUALTY CO

LTD 298,000 356,706 0.73PING AN INSURANCE GROUP CO H

SHARES 204,500 2,440,029 4.99SHENZHOU INTERNATIONAL GROUP

HOLDINGS LTD 23,700 329,104 0.67SINO BIOPHARMACEUTICAL LTD 410,000 507,007 1.04SJM HOLDINGS LTD 141,000 154,907 0.32SUN ART RETAIL GROUP LTD 332,000 337,603 0.69TENCENT HOLDINGS LTD 103,000 4,844,799 9.90WH GROUP LTD 179,500 176,796 0.36WUXI BIOLOGICS CAYMAN INC 93,500 1,007,515 2.06ZHAOJIN MINING INDUSTRY CO LTD 32,500 37,989 0.08ZIJIN MINING GROUP CO LTD H

SHARES 1,130,000 456,163 0.93

32,244,505 65.89

United StatesALIBABA GROUP HOLDINGS LTD 27,695 4,794,281 9.80CTRIP.COM INTERNATIONAL LTD 35,128 1,369,289 2.80MOMO INC 11,283 383,284 0.78NEW ORIENTAL EDUCATION &

TECHNOLOGY GROUP INC 20,020 2,088,286 4.27PINDUODUO INC 5,789 128,921 0.26TAL EDUCATION GROUP 13,908 447,838 0.92

91


HSBC China Momentum Fundas at 31 July 2019

HoldingsMarket

value

% ofnet

assetsUSD


VIPSHOP HOLDINGS LTD 14,286 108,574 0.22YUM CHINA HOLDINGS INC 5,063 230,367 0.47YY INC 1,493 95,836 0.20

9,646,676 19.72

Equities (Total) 46,930,845 95.92

Unit trustsListed investments

LINK REAL ESTATE INVESTMENT TRUST 74,000 864,037 1.77

Unit trusts (Total) 864,037 1.77

Total financial assets 47,794,882 97.69

Total investments (Total cost of investments: US$38,249,517) 47,794,882 97.69

Other net assets 1,129,454 2.31

Total net assets 48,924,336 100.00

92


HSBC China Growth Fundas at 31 July 2019

HoldingsMarket

value

% ofnet

assetsUSD

Financial assets


ChinaCHINA INTERNATIONAL TRAVEL

SERVICE CORP LTD 67,789 890,226 0.40CHINA MERCHANTS SHEKOU

INDUSTRIAL ZONE HOLDINGS CO LTD 335,241 1,003,573 0.46

GREE ELECTRIC APPLIANCES INC OF ZHUHAI 224,098 1,791,444 0.81

KWEICHOW MOUTAI CO LTD 29,065 4,102,014 1.87LUXSHARE PRECISION INDUSTRY

CO LTD 737,687 2,312,163 1.05SHENZHEN AIRPORT CO LTD 1,364,058 1,846,745 0.84

11,946,165 5.43

Hong Kong3SBIO INC 2,192,500 3,753,178 1.71AIA GROUP LTD 459,600 4,749,887 2.16AIR CHINA LTD 450,000 442,647 0.20ANTON OILFIELD SERVICES GROUP 9,098,000 1,057,650 0.48BRILLIANCE CHINA AUTOMOTIVE

HOLDINGS LTD 1,436,000 1,581,308 0.72CHINA COMMUNICATIONS

CONSTRUCTION CO LTD 1,793,000 1,520,909 0.69CHINA CONSTRUCTION BANK H

SHARES 12,513,560 9,703,408 4.41CHINA EASTERN AIRLINES CORP LTD 554,000 307,860 0.14CHINA JINMAO HOLDINGS GROUP

LTD 754,000 491,243 0.22CHINA LIFE INSURANCE CO LTD 1,093,000 2,813,520 1.28CHINA LONGYUAN POWER GROUP

CORP LTD 487,000 299,246 0.14CHINA MENGNIU DAIRY CO LTD 419,000 1,702,142 0.78CHINA MERCHANTS BANK CO LTD 559,000 2,802,891 1.28CHINA PACIFIC INSURANCE GROUP

CO LTD 386,200 1,662,635 0.76CHINA POWER INTERNATIONAL

DEVELOPMENT LTD 10,579,000 2,662,353 1.21

HoldingsMarket

value

% ofnet

assetsUSD

CHINA RAILWAY CONSTRUCTION CORP LTD 1,551,000 1,805,032 0.82

CHINA RAILWAY GROUP LTD 722,000 509,133 0.23CHINA RESOURCES LAND LTD 424,000 1,828,077 0.83CHINA RESOURCES POWER

HOLDINGS CO LTD 3,044,000 4,394,180 2.00CHINA SOUTHERN AIRLINES CO LTD 1,666,000 1,079,040 0.49CHINA TELECOM CORP LTD 5,638,000 2,535,260 1.15CHINA TOWER CORP LTD 17,082,000 4,451,677 2.03CHINA UNICOM HONG KONG LTD 4,450,000 4,354,552 1.98CIMC ENRIC HOLDINGS LTD 472,000 344,297 0.16CK HUTCHISON HOLDINGS LTD 93,500 879,709 0.40CLP HOLDINGS LTD 69,000 751,447 0.34CNOOC LTD 5,293,000 8,749,654 3.98COFCO MEAT HOLDINGS LTD 8,096,000 3,082,063 1.40CRRC CORP LTD 2,686,000 2,123,985 0.97GUANGDONG INVESTMENT LTD 384,000 809,412 0.37GUANGSHEN RAILWAY CO LTD 2,030,000 663,882 0.30GUANGZHOU AUTOMOBILE GROUP

CO LTD H SHARES 880,000 904,968 0.41HKBN LTD 885,000 1,603,150 0.73HUADIAN FUXIN ENERGY CORP LTD 6,576,000 1,226,505 0.56HUANENG RENEWABLES CORP LTD 2,508,000 685,640 0.31INDUSTRIAL AND COMMERCIAL

BANK OF CHINA H SHARES 5,061,030 3,426,648 1.56KINGBOARD LAMINATES HOLDINGS

LTD 873,500 727,554 0.33LONGFOR GROUP HOLDINGS LTD 223,000 831,845 0.38LONKING HOLDINGS LTD 1,578,000 415,268 0.19MEITUAN DIANPING 191,700 1,566,092 0.71MELCO INTERNATIONAL

DEVELOPMENT LTD 452,000 1,115,579 0.51MTR CORP LTD 126,000 829,763 0.38NEW CHINA LIFE INSURANCE CO H

SHARES 149,000 748,055 0.34PACIFIC TEXTILES HOLDINGS LTD 1,786,000 1,410,018 0.64PETROCHINA CO LTD H SHARES 3,098,000 1,646,378 0.75PICC PROPERTY AND CASUALTY CO

LTD 1,384,000 1,656,649 0.75PING AN INSURANCE (GROUP) CO

OF CHINA H SHARES 809,000 9,652,729 4.39SHENZHEN INTERNATIONAL

HOLDINGS LTD 700,000 1,300,221 0.59SHENZHOU INTERNATIONAL GROUP

HOLDINGS LTD 144,500 2,006,560 0.91

93


HSBC China Growth Fundas at 31 July 2019

HoldingsMarket

value

% ofnet

assetsUSD


SINOPHARM GROUP CO LTD 567,200 2,115,796 0.96SJM HOLDINGS LTD 1,641,000 1,802,859 0.82SUN ART RETAIL GROUP LTD 7,338,500 7,462,341 3.39TENCENT HOLDINGS LTD 464,300 21,839,224 9.93TRAVELSKY TECHNOLOGY LTD 231,000 455,632 0.21WH GROUP LTD 3,098,500 3,051,832 1.39WUXI BIOLOGICS CAYMAN INC 76,000 818,943 0.37WYNN MACAU LTD 288,000 657,096 0.30XINYI SOLAR HOLDINGS LTD 654,000 360,924 0.16ZHONGSHENG GROUP HOLDINGS

LTD 1,167,500 3,281,212 1.49ZHUZHOU CRRC TIMES ELECTRIC CO

LTD 447,400 2,151,868 0.98ZIJIN MINING GROUP CO LTD 1,282,000 517,523 0.24

150,181,149 68.31

United StatesALIBABA GROUP HOLDING-SP ADR 123,421 21,365,409 9.72CTRIP.COM INTERNATIONAL LTD 152,181 5,932,015 2.70MOMO INC 27,426 931,661 0.42NEW ORIENTAL EDUCATION &

TECHNOLOGY GROUP INC 79,192 8,260,518 3.76SINA CORP 9,571 374,418 0.17TAL EDUCATION GROUP 132,057 4,252,235 1.93VIPSHOP HOLDINGS LTD 72,853 553,683 0.25YUM CHINA HOLDINGS INC 54,661 2,487,076 1.13YY INC 7,214 463,067 0.21

44,620,082 20.29

Listed investments (Total) 206,747,396 94.03

Unlisted investment

CHINA METAL RECYCLING HOLDINGS LTD 4,673,807 – –

Unlisted investment (Total) – –

Equities (Total) 206,747,396 94.03

HoldingsMarket

value

% ofnet

assetsUSD

Equity-linked instruments

Equity-linked note

CICC FINANCIAL TRADING LTD 0% 04 JANUARY 2021 21,652 3,055,799 1.39

Equity-linked instruments (Total) 3,055,799 1.39

Unit trustsListed investments

LINK REAL ESTATE INVESTMENT TRUST 410,000 4,787,235 2.18

Unit trusts (Total) 4,787,235 2.18


Total Investments (Total cost of investments: US$191,454,296) 214,590,430 97.60



94


HSBC Asian High Yield Bond Fundas at 31 July 2019

HoldingsMarket

value

% ofnet

assetsUSD

Financial assets

Debt securities


21VIANET GROUP INC 7.875% 15 OCTOBER 2021 600,000 612,198 0.07

ABJA INVESTMENT CO 5.95% 31 JULY 2024 8,000,000 8,434,800 0.96

ADANI GREEN ENERGY (UP) LTD 6.25% 10 DECEMBER 2024 7,710,000 7,940,298 0.92

ADANI PORTS AND SPECIAL ECONOMIC ZONE LTD 4.375% 03 JULY 2029 5,000,000 5,117,000 0.59

AGILE GROUP HOLDINGS LTD 9.5% 23 NOVEMBER 2020 6,191,000 6,564,627 0.76

ALAM SYNERGY PTE LTD 11.5% 22 APRIL 2021 5,381,000 5,715,321 0.66

ANTON OILFIELD SERVICES GROUP 9.75% 05 DECEMBER 2020 5,348,000 5,493,198 0.63

AZURE POWER ENERGY LTD 5.5% 03 NOVEMBER 2022 7,500,000 7,586,400 0.88

BANK OF CHINA HONG KONG LTD 5.9% PERPETUAL 3,000,000 3,221,160 0.37

BANK OF COMMUNICATIONS CO LTD (HONG KONG BRANCH) 3.4% 21 MARCH 2021 15,390,000 2,235,429 0.26

BUKIT MAKMUR MANDIRI UTAMA PT 7.75% 13 FEBRUARY 2022 8,500,000 8,666,005 1.00

CAR INC 8.875% 10 MAY 2022 3,000,000 3,024,090 0.35CELESTIAL DYNASTY LTD 4.25%

27 JUNE 2029 3,524,000 3,544,122 0.41CENTRAL CHINA REAL ESTATE LTD

7.25% 24 APRIL 2023 3,647,000 3,648,495 0.42CFLD (CAYMAN) INVESTMENT LTD

6.5% 21 DECEMBER 2020 5,000,000 5,030,400 0.58CFLD (CAYMAN) INVESTMENT LTD

7.125% 08 APRIL 2022 3,800,000 3,839,710 0.44CFLD (CAYMAN) INVESTMENT LTD

8.625% 28 FEBRUARY 2021 2,900,000 2,998,484 0.35CFLD (CAYMAN) INVESTMENT LTD

9% 31 JULY 2021 4,200,000 4,387,446 0.51

HoldingsMarket

value

% ofnet

assetsUSD

CHAMPION SINCERITY HOLDINGS LTD 8.125% PERPETUAL 2,478,000 2,607,426 0.30

CHINA AOYUAN GROUP LTD 7.95% 07 SEPTEMBER 2021 2,722,000 2,829,873 0.33

CHINA AOYUAN GROUP LTD 7.95% 19 FEBRUARY 2023 5,000,000 5,194,650 0.60

CHINA AOYUAN GROUP LTD 8.5% 23 JANUARY 2022 5,143,000 5,406,013 0.62

CHINA CITIC BANK INTERNATIONAL LTD 7.1% PERPETUAL 3,000,000 3,210,690 0.37

CHINA DEVELOPMENT BANK 3.48% 08 JANUARY 2029 70,000,000 10,021,208 1.16

CHINA DEVELOPMENT BANK 4.14% 11 SEPTEMBER 2020 20,000,000 2,946,130 0.34

CHINA DEVELOPMENT BANK 4.88% 09 FEBRUARY 2028 20,000,000 3,141,114 0.36



CHINA EVERGRANDE GROUP 8.25% 23 MARCH 2022 10,000,000 9,699,400 1.12

CHINA EVERGRANDE GROUP 9.5% 11 APRIL 2022 1,972,000 1,967,031 0.23

CHINA HONGQIAO GROUP LTD 7.125% 22 JULY 2022 960,000 965,146 0.11

CHINA OIL AND GAS GROUP LTD 4.625% 20 APRIL 2022 4,000,000 3,982,040 0.46

CHINA OIL AND GAS GROUP LTD 5% 07 MAY 2020 1,614,000 1,630,140 0.19

CHINA OIL AND GAS GROUP LTD 5.5% 25 JANUARY 2023 6,656,000 6,777,539 0.78

CHINA SCE GROUP HOLDINGS LTD 7.25% 19 APRIL 2023 8,000,000 7,975,920 0.92

CHINA SCE GROUP HOLDINGS LTD 8.75% 15 JANUARY 2021 3,600,000 3,748,896 0.43

CHINA, PEOPLE’S REPUBLIC OF (GOVERNMENT) 3.3% 12 JULY 2023 10,000,000 1,471,274 0.17

CHONG HING BANK LTD 5.7% PERPETUAL 1,750,000 1,778,648 0.21

CIFI HOLDINGS (GROUP) CO LTD 5.375% PERPETUAL 6,400,000 6,270,464 0.72

CIFI HOLDINGS (GROUP) CO LTD 5.5% 23 JANUARY 2023 4,200,000 4,119,528 0.48

95



HoldingsMarket

value

% ofnet

assetsUSD


CIFI HOLDINGS (GROUP) CO LTD 7.625% 02 MARCH 2021 3,000,000 3,107,760 0.36

CIFI HOLDINGS (GROUP) CO LTD 7.75% 20 SEPTEMBER 2020 10,000,000 1,481,978 0.17

CIFI HOLDINGS GROUP CO LTD 6.875% 23 APRIL 2021 2,000,000 2,050,700 0.24

CONCORD NEW ENERGY GROUP LTD 7.9% 23 JANUARY 2021 5,000,000 5,025,400 0.58


COUNTRY GARDEN HOLDINGS CO LTD 8% 27 JANUARY 2024 6,000,000 6,526,500 0.75

COUNTRY GARDEN HOLDINGS COMPANY LTD 5.625% 15 DECEMBER 2026 4,250,000 4,325,608 0.50

DEVELOPMENT BANK OF MONGOLIA 7.25% 23 OCTOBER 2023 1,508,000 1,582,375 0.18

EASY TACTIC LTD 7% 25 APRIL 2021 7,000,000 7,115,010 0.82EASY TACTIC LTD 8.625% 27

FEBRUARY 2024 2,933,000 3,024,246 0.35ENN CLEAN ENERGY

INTERNATIONAL INVESTMENT LTD 7.5% 27 FEBRUARY 2021 200,000 202,990 0.02

FAR EAST HORIZON LTD 4.35% PERPETUAL 4,955,000 4,815,913 0.56

FAR EAST HORIZON LTD 4.9% 27 FEBRUARY 2021 14,050,000 2,066,449 0.24

FORTUNE STAR (BVI) LTD 5.25% 23 MARCH 2022 10,122,000 10,078,172 1.16

FORTUNE STAR (BVI) LTD 6.875% 31 JANUARY 2021 2,100,000 2,157,498 0.25

FRANSHION BRILLIANT LTD 4.25% 23 JULY 2029 2,978,000 2,968,977 0.34

FWD GROUP LTD 5.75% 09 JULY 2024 2,610,000 2,663,975 0.31

GOLDEN EAGLE RETAIL GROUP LTD 4.625% 21 MAY 2023 5,942,000 5,683,166 0.66

GOLDEN WHEEL TIANDI HOLDINGS COMPANY LTD 7% 18 JANUARY 2021 5,033,000 4,758,852 0.55

HoldingsMarket

value

% ofnet

assetsUSD



GREENKO INVESTMENT CO 4.875% 16 AUGUST 2023 9,000,000 8,926,110 1.03

GREENLAND HONG KONG HOLDINGS LTD 6% 17 JULY 2021 2,200,000 2,214,410 0.26

HAIMEN ZHONGNAN INVESTMENT DEVELOPMENT INTERNATIONAL CO LTD 10.875% 18 JUNE 2022 333,000 333,892 0.04

HILONG HOLDING LTD 7.25% 22 JUNE 2020 2,400,000 2,398,032 0.28

HONGHUA GROUP LTD 6.375% 01 AUGUST 2022 2,927,000 2,960,836 0.34

HT GLOBAL IT SOLUTIONS HOLDINGS LTD 7% 14 JULY 2021 10,000,000 10,355,800 1.20

INDIKA ENERGY CAPITAL II PTE LTD 6.875% 10 APRIL 2022 3,766,000 3,912,761 0.45

INDIKA ENERGY III PTE SER REGS (REG) 5.875% 09 NOVEMBER 2024 1,500,000 1,465,035 0.17

INDO ENERGY FINANCE II BV 6.375% 24 JANUARY 2023 4,000,000 4,057,160 0.47





INDONESIA (REPUBLIC OF) 8.5% 12 OCTOBER 2035 6,000,000 9,120,600 1.05



INDONESIA, REPUBLIC OF (GOVERNMENT) 3.4% 18 SEPTEMBER 2029 6,000,000 6,137,640 0.71

INDONESIA, REPUBLIC OF (GOVERNMENT) 4.35% 11 JANUARY 2048 6,500,000 6,834,945 0.79

96



HoldingsMarket

value

% ofnet

assetsUSD


INDONESIA, REPUBLIC OF (GOVERNMENT) 4.75% 18 JULY 2047 4,000,000 4,392,280 0.51



INDONESIA, REPUBLIC OF (GOVERNMENT) 5.95% 08 JANUARY 2046 2,000,000 2,539,460 0.29

INDONESIA, REPUBLIC OF (GOVERNMENT) 7.5% 15 JUNE 2035 60,000,000,000 4,251,409 0.49

INDONESIA, REPUBLIC OF (GOVERNMENT) 8.25% 15 MAY 2029 60,000,000,000 4,544,796 0.52

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD 6% PERP 29 DECEMBER 2049 13,330,000 1,947,990 0.22

JGC VENTURES PTE LTD 10.75% 30 AUGUST 2021 5,532,000 5,920,512 0.68

JINKE PROPERTY GROUP CO LTD 8.375% 20 JUNE 2021 4,800,000 4,831,680 0.56

JSW STEEL LTD 5.25% 13 APRIL 2022 3,571,000 3,654,561 0.42JSW STEEL LTD 5.95% 18 APRIL 2024 6,000,000 6,211,920 0.72JUBILANT PHARMA LTD 6% 05

MARCH 2024 4,000,000 4,134,320 0.48KAISA GROUP HOLDINGS LTD 11.5%

30 JANUARY 2023 3,213,000 3,274,657 0.38KAISA GROUP HOLDINGS LTD 11.75%

26 FEBRUARY 2021 6,564,000 6,874,871 0.79KAISA GROUP HOLDINGS LTD 7.25%

30 JUNE 2020 12,000,000 12,028,680 1.39KAISA GROUP HOLDINGS LTD 8.5%

30 JUNE 2022 4,000,000 3,846,920 0.44KDB LIFE INSURANCE CO LTD 7.5%

21 MAY 2048 4,250,000 4,201,550 0.49KOOKMIN BANK 4.35% PERPETUAL

31 DECEMBER 2049 1,904,000 1,939,871 0.22KWG GROUP HOLDINGS LTD 7.875%

01 SEPTEMBER 2023 9,500,000 9,663,115 1.12KWG PROPERTY HOLDING LTD 6%

15 SEPTEMBER 2022 4,500,000 4,462,515 0.52

HoldingsMarket

value

% ofnet

assetsUSD

LISTRINDO CAPITAL BV 4.95% 14 SEPTEMBER 2026 8,892,000 8,955,489 1.03

LMIRT CAPITAL PTE LTD 7.25% 19 JUNE 2024 8,500,000 8,746,585 1.01

LOGAN PROPERTY HOLDINGS CO LTD 7.5% 25 AUGUST 2022 2,864,000 2,975,839 0.34

LOGAN PROPERTY HOLDINGS CO LTD 8.75% 12 DECEMBER 2020 1,892,000 1,980,262 0.23

MARBLE II PTE LTD 5.3% 20 JUNE 2022 3,000,000 3,033,300 0.35

MEDCO PLATINUM ROAD PTE LTD 6.75% 30 JANUARY 2025 1,000,000 998,950 0.12

MEDCO STRAIT SERVICES PTE LTD 8.5% 17 AUGUST 2022 3,458,000 3,699,230 0.43

MELCO RESORTS FINANCE LTD 5.625% 17 JULY 2027 1,000,000 1,034,590 0.12

MGM CHINA HOLDINGS LTD 5.375% 15 MAY 2024 1,000,000 1,037,430 0.12

MINEJESA CAPITAL BV 4.625% 10 AUGUST 2030 4,500,000 4,601,025 0.53

MINEJESA CAPITAL BV 5.625% 10 AUGUST 2037 2,715,000 2,922,915 0.34

MODERN LAND (CHINA) CO LTD 15.5% 02 JULY 2020 2,545,000 2,632,421 0.30

MODERNLAND OVERSEAS PTE LTD 6.95% 13 APRIL 2024 2,333,000 2,247,472 0.26

MONGOLIA (GOVERNMENT) 8.75% 09 MARCH 2024 2,000,000 2,272,100 0.26

NANYANG COMMERCIAL BANK LTD 5% PERP 10,000,000 9,836,800 1.14

NEW METRO GLOBAL LTD 6.75% 26 JANUARY 2020 5,000,000 4,945,950 0.57

NWD FINANCE (BVI) LTD 5.75% PERPETUAL 2,000,000 1,987,660 0.23

NWD FINANCE (BVI) LTD 6.25% PERPETUAL 3,000,000 3,032,580 0.35

NWD MTN LTD 4.125% 18 JULY 2029 4,083,000 4,031,350 0.47PAKISTAN, ISLAMIC REPUBLIC OF

(GOVERNMENT) 6.875% 05 DECEMBER 2027 6,000,000 6,254,160 0.72

PAKUWON PRIMA PTE LTD 5% 14 FEBRUARY 2024 6,200,000 6,253,754 0.72

PB INTERNATIONAL BV 7.625% 26 JANUARY 2022 3,812,000 3,917,745 0.45

PERTAMINA (PERSERO) PT 6% 03 MAY 2042 2,600,000 3,044,470 0.35

97



HoldingsMarket

value

% ofnet

assetsUSD


PERTAMINA (PERSERO) PT 6.5% 07 NOVEMBER 2048 12,466,000 15,765,999 1.82

PERTAMINA PERSERO PT 6.5% 27 MAY 2041 11,500,000 14,218,255 1.64



PERUSAHAAN LISTRIK NEGARA (PERSERO) PT 6.25% 25 JANUARY 2049 6,000,000 7,378,860 0.85

PHILIPPINES, REPUBLIC OF (GOVERNMENT) 3.7% 02 FERBUARY 2042 4,000,000 4,392,120 0.51

POWERLONG REAL ESTATE HOLDINGS LTD 5.95% 19 JULY 2020 3,000,000 2,995,560 0.35

PRESS METAL (LABUAN) LTD 4.8% 30 OCTOBER 2022 1,000,000 1,000,520 0.12

PROVEN HONOUR CAPITAL LTD 4.125% 06 MAY 2026 3,000,000 3,013,530 0.35

REDCO PROPERTIES GROUP LTD 13.5% 21 JANUARY 2020 800,000 823,864 0.10

REDCO PROPERTIES GROUP LTD 9.875% 02 MAY 2021 880,000 886,274 0.10

REDSUN PROPERTIES GROUP LTD 10.5% 03 OCTOBER 2022 3,111,000 3,002,986 0.35

RKP OVERSEAS FINANCE 2016 A LTD 7.95% PERP 17 FEBRUARY 2022 1,778,000 1,653,753 0.19

RONGXINGDA DEVELOPMENT BVI LTD 8% 24 APRIL 2022 2,922,000 2,845,531 0.33

RONSHINE CHINA HOLDINGS LTD 10.5% 01 MARCH 2022 2,500,000 2,607,725 0.30

RONSHINE CHINA HOLDINGS LTD 11.25% 22 AUGUST 2021 1,421,000 1,516,832 0.18

RONSHINE CHINA HOLDINGS LTD 8.75% 25 OCTOBER 2022 5,220,000 5,196,614 0.60

RONSHINE CHINA HOLDINGS LTD 8.95% 22 JANUARY 2023 3,289,000 3,279,396 0.38


HoldingsMarket

value

% ofnet

assetsUSD

SCENERY JOURNEY LTD 11% 06 NOVEMBER 2020 14,000,000 14,503,160 1.67

SHIMAO PROPERTY HOLDINGS LTD 5.6% 15 JULY 2026 4,146,000 4,171,788 0.48

SHRIRAM TRANSPORT FINANCE COMPANY LTD 5.95% 24 OCTOBER 2022 4,100,000 4,213,652 0.49

SHUI ON DEVELOPMENT (HOLDING) LTD 6.25% 28 NOVEMBER 2021 3,000,000 3,069,360 0.35

SHUI ON DEVELOPMENT (HOLDING) LTD 6.875% 02 MARCH 2021 15,000,000 2,250,871 0.26

SMC GLOBAL POWER HOLDINGS CORP 6.5% PERPETUAL 4,622,000 4,718,554 0.54

SRI LANKA, DEMOCRATIC SOCIALIST REPUBLIC OF (GOVERNMENT) 5.75% 18 APRIL 2023 2,500,000 2,506,875 0.29

SRI LANKA, DEMOCRATIC SOCIALIST REPUBLIC OF (GOVERNMENT) 5.875% 25 JULY 2022 1,000,000 1,010,540 0.12

SRI LANKA, DEMOCRATIC SOCIALIST REPUBLIC OF (GOVERNMENT) 6.2% 11 MAY 2027 4,500,000 4,344,435 0.50

SRI LANKA, DEMOCRATIC SOCIALIST REPUBLIC OF (GOVERNMENT) 6.25% 27 JULY 2021 1,500,000 1,528,485 0.18

SRI LANKA, DEMOCRATIC SOCIALIST REPUBLIC OF (GOVERNMENT) 6.35% 28 JUNE 2024 6,833,000 6,896,479 0.80

SRI LANKA, DEMOCRATIC SOCIALIST REPUBLIC OF (GOVERNMENT) 6.75% 18 APRIL 2028 4,000,000 3,935,280 0.45



SRILANKAN AIRLINES LTD 7% 25 JUNE 2024 400,000 400,368 0.05

STAR ENERGY GEOTHERMAL WAYANG WINDU LTD 6.75% 24 APRIL 2033 8,794,000 8,696,347 1.00

SUNAC CHINA HOLDINGS LTD 7.35% 19 JULY 2021 4,000,000 4,077,320 0.47

98



HoldingsMarket

value

% ofnet

assetsUSD


SUNAC CHINA HOLDINGS LTD 7.875% 15 FEBRUARY 2022 8,052,000 8,198,627 0.95

SUNAC CHINA HOLDINGS LTD 8.35% 19 APRIL 2023 2,000,000 2,058,140 0.24

SUNAC CHINA HOLDINGS LTD 8.625% 27 JULY 2020 5,674,000 5,835,539 0.67

THETA CAPITAL PTE LTD 6.75% 31 OCTOBER 2026 3,000,000 2,776,830 0.32

THETA CAPITAL PTE LTD 7% 11 APRIL 2022 7,500,000 7,445,025 0.86

TIMES CHINA HOLDINGS LTD 10.95% 27 NOVEMBER 2020 1,573,000 1,684,825 0.19

TIMES CHINA HOLDINGS LTD 6.75% 16 JULY 2023 3,000,000 2,989,230 0.35

TIMES CHINA HOLDINGS LTD 7.625% 21 FEBRUARY 2022 5,233,000 5,395,432 0.62

TIMES CHINA HOLDINGS LTD 7.85% 04 JUNE 2021 5,418,000 5,585,687 0.64

TSINGHUA UNIC LTD 5.375% 31 JANUARY 2023 4,000,000 3,791,960 0.44

VEDANTA RESOURCES FINANCE II PLC 8% 23 APRIL 2023 7,000,000 7,222,250 0.83

VEDANTA RESOURCES PLC 6.375% 30 JULY 2022 2,760,000 2,761,159 0.32

VEDANTA RESOURCES PLC 7.125% 31 MAY 2023 1,000,000 1,006,300 0.12

VEDANTA RESOURCES PLC 8.25% 07 JUNE 2021 3,000,000 3,167,670 0.37

WANDA PROPERTIES GLOBAL CO LTD 6.25% 27 FEBRUARY 2020 4,170,000 4,197,022 0.48

WEALTH DRIVEN LTD 5.5% 17 AUGUST 2023 3,633,000 3,636,379 0.42

WEST CHINA CEMENT LTD 6.5% 11 SEPTEMBER 2019 10,229,000 5,130,611 0.59

WTT INVESTMENT LTD 5.5% 21 NOVEMBER 2022 9,300,000 9,559,098 1.10

WYNN MACAU LTD 5.5% 01 OCTOBER 2027 1,500,000 1,509,735 0.17

YANCOAL INTERNATIONAL RESOURCES DEVELOPMENT CO LTD 5.75% PERPETUAL 6,000,000 6,054,780 0.70

HoldingsMarket

value

% ofnet

assetsUSD

YINGDE GASES INVESTMENT LTD 6.25% 19 JANUARY 2023 10,000,000 10,176,800 1.18

YUZHOU PROPERTIES COMPANY LTD 5.375% PERP 29 DECEMBER 2049 4,219,000 3,924,514 0.45

YUZHOU PROPERTIES COMPANY LTD 6% 25 OCTOBER 2023 980,000 920,965 0.11

YUZHOU PROPERTIES COMPANY LTD 7.9% 11 MAY 2021 2,133,000 2,205,202 0.25

YUZHOU PROPERTIES COMPANY LTD 8.5% 04 FEBRUARY 2023 6,963,000 7,221,954 0.83

YUZHOU PROPERTIES COMPANY LTD 8.625% 23 JANUARY 2022 1,650,000 1,726,824 0.20

ZHENRO PROPERTIES GROUP LTD 9.15% 08 MARCH 2022 1,667,000 1,705,791 0.20

ZHENRO PROPERTIES GROUP LTD 9.8% 20 AUGUST 2021 2,632,000 2,745,992 0.32

ZOOMLION HK SPV CO LTD 6.125% 20 DECEMBER 2022 4,750,000 4,809,660 0.56

839,864,464 96.99

Unlisted but quoted investments

AGILE GROUP HOLDINGS LTD 8.55% PERP 29 DECEMBER 2049 1,028,000 1,069,973 0.12

CHINA EVERGRANDE GROUP 8% 27 JUNE 2020 2,000,000 2,004,480 0.23

GEMDALE EVER PROSPERITY INVESTMENT LTD 4.95% 26 JULY 2022 4,075,000 4,007,722 0.46

GREENKO SOLAR (MAURITIUS) LTD 5.95% 29 JULY 2026 3,357,000 3,361,163 0.39

LLPL CAPITAL PTE LTD 6.875% 04 FEBRUARY 2039 3,000,000 3,486,660 0.40

PERTAMINA (PERSERO) PT 3.65% 30 JULY 2029 1,391,000 1,400,959 0.16

15,330,957 1.76

Debt securities (Total) 855,195,421 98.75

99



HoldingsMarket

value

% ofnet

assetsUSD

Unit TrustsUnlisted but quoted investments

HSBC ALL CHINA BOND ZC-USD 150,000 1,581,000 0.18

Derivative assets

Foreign currency forward contracts 448 0.00



Derivative liabilities

Foreign currency forward contracts (201,415) (0.02)

Total financial liabilities (201,415) (0.02)

Total net investments (Total cost of investments: US$829,192,210) 856,575,454 98.91



100

Statement of Movements in Portfolio Holdings (Unaudited)

HSBC Asian Bond Fundfor the year ended 31 July 2019

% ofnet asset

value2019

% ofnet asset

value2018

Financial assets

Debt securities

BondsListed investments 99.79 98.99Unlisted but quoted investments 0.79 0.27

Debt securities (total) 100.58 99.26

Unit trustsUnlisted but quoted investments 0.07 0.08

Derivative assetsForeign currency forward contracts 0.00 0.00Futures contracts – 0.01

0.00 0.01


Derivative liabilitiesForeign currency forward contracts (0.03) (0.00)

Total investments 100.62 99.35

Other net assets (0.62) 0.65

Total net assets 100.00 100.00

101


HSBC China Momentum Fundfor the year ended 31 July 2019

% ofnet asset

value2019

% ofnet asset

value2018

Financial assets

EquitiesListed investmentsThe People’s Republic of China 10.30 2.54Hong Kong 65.89 73.74United States 19.72 20.91

Equities (total) 95.92 97.19

Equity-linked instrumentsEquity-linked note – 0.81

Unit trustsListed investments 1.77 0.27


Other net assets 2.31 1.73


102


HSBC China Growth Fund for the year ended 31 July 2019

% ofnet asset

value2019

% ofnet asset

value2018

Financial assets

EquitiesListed investmentsThe People’s Republic of China 5.43 1.08Hong Kong 68.31 75.04United States 20.29 21.41

Equities (total) 94.03 97.53

Equity-linked instrumentsEquity-linked note 1.39 0.86

Unit trustsListed investments 2.18 –




103


HSBC Asian High Yield Bond Fundfor the year ended 31 July 2019

% ofnet asset

value2019

% ofnet asset

value2018

Financial assets

Debt securities

BondsListed investments 96.98 97.85Unlisted but quoted investments 1.77 0.97

Debt securities (total) 98.75 98.82

Unit trustsUnlisted but quoted investments 0.18 0.21

Derivative assetsForeign currency forward contracts 0.00 –


Derivative liabilitiesForeign currency forward contracts (0.02) (0.01)




104

Performance Record (Unaudited)

HSBC Asian Bond Fund

(a) Price record (dealing net asset value per unit)

“AC – HKD” class units

Bid OfferYear Lowest Highest Lowest Highest

HKD HKD HKD HKD

2011 9.960 10.160 10.270 10.4802012 6.567 10.301 6.770 10.620

“AC – USD” class units


USD USD USD USD

2011 9.970 10.180 10.280 10.4902012 9.573 10.823 9.869 11.1582013 10.639 11.442 10.968 11.7962014 10.638 11.737 10.967 12.1002015 10.695 12.224 12.057 12.6022016 11.925 12.874 12.294 13.2722017 12.416 13.028 13.028 13.4202018 12.724 13.193 13.118 13.6012019 12.699 14.007 12.730 14.007

“AM – HKD” class units


HKD HKD HKD HKD

2011 9.940 10.100 10.240 10.4102012 9.409 10.287 9.700 10.6052013 9.791 10.561 10.094 10.8882014 9.687 10.300 9.987 10.6192015 10.131 10.418 10.441 10.7432016 9.990 10.502 10.300 10.8282017 10.000 10.560 10.300 10.8862018 9.762 10.413 10.060 10.7342019 9.565 10.234 9.587 10.234

105


“AM – USD” class units


USD USD USD USD

2009 6.730 8.190 6.950 8.4502010 8.200 8.850 8.460 9.1302011 8.800 9.220 9.080 9.5202012 8.493 9.314 8.756 9.6022013 8.860 9.555 9.134 9.8512014 8.770 9.335 9.041 9.6242015 9.176 9.439 9.460 9.7312016 9.049 9.508 9.329 9.8022017 9.049 9.566 9.263 9.8622018 8.738 9.362 9.008 9.6522019 8.585 9.187 8.601 9.187

“AMH – AUD” class units


AUD AUD AUD AUD

2013 9.239 10.026 9.525 10.3362014 9.194 9.823 9.478 10.1272015 9.700 10.026 10.000 10.3372016 9.564 10.035 9.860 10.3442017 9.546 10.095 9.793 10.4072018 9.229 9.890 9.514 10.1952019 9.067 9.687 9.082 9.687

“AMH – EUR” class units


EUR EUR EUR EUR

2013 9.391 10.138 9.681 10.4522014 9.295 9.861 9.582 10.1662015 9.715 10.030 10.016 10.3412016 9.567 10.026 9.864 10.3362017 9.512 10.080 9.724 10.3922018 9.116 9.807 9.398 10.1112019 8.958 9.567 8.969 9.567

106


“IC – USD” class units


USD USD USD USD

2011 10.000 10.070 10.000 10.0702012 9.474 10.753 9.474 10.7532013 10.613 11.407 10.613 11.4072014 10.623 11.781 10.623 11.7812015 11.739 12.310 11.739 12.3102016 12.030 13.038 12.030 13.0382017 12.596 13.255 12.596 13.2552018 12.991 13.429 12.991 13.4292019 12.994 14.379 12.994 14.379

“ID – USD” class units


USD USD USD USD

2009 7.280 9.050 7.290 9.0602010 8.660 9.870 8.670 9.8802011 9.450 10.100 9.460 10.1002012 9.150 10.395 9.150 10.3952013 9.655 10.594 9.655 10.5942014 9.443 10.523 9.443 10.5232015 10.003 10.541 10.003 10.5412016 9.903 10.759 9.903 10.7592017 10.057 10.573 10.057 10.5732018 9.648 10.296 9.648 10.2962019 9.578 10.594 9.578 10.594

“ZD – USD” class units


USD USD USD USD

2010 8.980 9.910 8.990 9.9202011 9.490 10.200 9.500 10.2002012 9.245 10.533 9.247 10.5332013 9.844 10.785 9.844 10.7852014 9.634 10.723 9.634 10.7232015 10.246 10.789 10.246 10.7892016 10.156 11.060 10.156 11.0602017 10.386 10.957 10.386 10.9572018 9.986 10.678 9.986 10.6782019 9.928 11.026 9.928 11.026

107


(b) Total net asset value (calculated in accordance with HKFRS)

2019 2018 2017 2016USD USD USD USD

Total net asset value 2,215,954,265 1,815,778,109 2,396,009,475 3,385,714,159

(c) Net asset value per unit (calculated in accordance with HKFRS)

Denomination currency 2019 2018 2017 2016

Net asset value per unit– “AC – USD” class unit USD 14.007 12.808 13.029 12.874– “AM – HKD” class unit HKD 10.215 9.788 10.233 10.472– “AM – USD” class unit USD 9.162 8.760 9.263 9.484– “AMH – AUD” class unit AUD 9.671 9.253 10.340 9.999– “AMH – EUR” class unit EUR 9.563 9.146 10.689 10.001– “IC – USD” class unit USD 14.379 13.089 13.255 13.038– “ID – USD” class unit USD 10.200 9.648 10.163 10.517– “ZD – USD” class unit USD 10.554 9.986 10.514 10.727

(d) Total expense ratio

2019

Average net asset value Total expenses

Total expense ratio

USD USD %

– “AC – USD” class 9,536,585 104,486 1.10%– “AM – HKD” class 389,653,565 4,252,795 1.09%– “AM – USD” class 1,059,671,084 11,565,764 1.09%– “AMH – AUD” class 99,352,803 1,086,146 1.09%– “AMH – EUR” class 12,615,928 138,060 1.09%– “IC – USD” class 123,354,618 788,215 0.64%– “ID – USD” class 27,472,445 176,138 0.64%– “ZD – USD” class 125,782,964 114,595 0.09%

108


HSBC China Momentum Fund




USD USD USD USD

2009 19.482 36.003 20.563 37.9992010 32.016 38.738 33.791 40.8852011 35.317 43.471 37.275 45.8812012 29.251 39.306 30.873 41.4852013 30.119 39.427 31.789 41.6132014 35.344 42.209 37.304 44.5492015 40.075 60.918 42.297 64.2942016 36.572 49.187 38.599 51.9142017 43.170 65.808 45.563 69.4562018 64.556 82.863 68.134 87.4552019 56.623 70.380 56.623 72.794


2019 2018 2017 2016USD USD USD USD

Total net asset value 48,924,337 67,007,641 75,887,888 61,604,592



Net asset value per unit– “AC – USD” class unit USD 64.546 69.520 65.805 43.550


2019


Total expense ratio

USD USD %

– “AC – USD” class 55,766,859 1,162,888 2.09%

109


HSBC China Growth Fund




HKD HKD HKD HKD

2011 9.250 9.881 9.763 10.4282012 6.641 9.483 7.009 10.0082013 6.725 8.909 7.098 9.4032014 7.508 9.571 7.924 10.1012015 9.076 13.776 9.579 14.5352016 8.208 10.985 8.660 11.5982017 9.725 13.285 13.285 14.0182018 12.907 16.644 13.619 17.5662019 11.420 14.491 11.473 14.583



USD USD USD USD

2008 6.960 12.606 7.390 13.3042009 3.642 7.781 3.844 8.2122010 7.256 9.374 7.658 9.8942011 8.484 10.361 8.955 10.9362012 6.545 9.299 6.908 9.8142013 6.626 8.780 6.993 9.2662014 7.402 9.448 7.812 9.9722015 8.951 13.593 9.447 14.3462016 8.052 10.853 8.498 11.4542017 9.591 13.015 10.122 13.7362018 12.637 16.293 13.337 17.1962019 11.145 14.144 11.209 14.213


2019 2018 2017 2016USD USD USD USD


110




Net asset value per unit– “AC – HKD” class units HKD 13.456 13.934 13.198 9.828– “AC – USD” class units USD 13.154 13.588 13.015 9.690


2019


Total expense ratio

USD USD %

– “AC – HKD” class 45,725,598 757,318 1.66%– “AC – USD” class 177,982,652 2,950,026 1.66%

111


HSBC Asian High Yield Bond Fund




HKD HKD HKD HKD

2011 9.965 10.196 10.517 10.7612012 8.781 10.994 9.268 11.6032013 10.997 12.136 11.606 12.8082014 11.103 12.670 11.447 13.0622015 11.948 12.793 12.610 13.5022016 12.188 13.968 12.863 14.7422017 13.684 15.013 14.592 15.8482018 14.112 14.999 14.897 15.8292019 14.059 15.891 14.059 15.891

“AC – SGD” class units


SGD SGD SGD SGD

2012 10.001 10.823 10.555 11.4232013 10.729 11.897 11.323 12.5562014 11.137 12.386 11.482 12.7702015 12.313 13.648 12.995 14.4042016 13.388 14.895 14.130 15.2702017 14.652 16.149 15.426 17.0442018 15.418 15.854 16.271 16.733



USD USD USD USD

2011 9.943 10.168 10.494 10.7312012 8.765 11.021 9.251 11.6322013 11.024 12.156 11.635 12.8302014 11.128 12.702 11.473 13.0952015 11.970 12.825 12.633 13.5362016 12.217 13.993 12.894 14.7682017 13.706 14.952 14.465 15.7802018 13.980 14.903 14.755 15.7292019 13.957 15.790 13.957 15.790

112


“AM – HKD” class units


HKD HKD HKD HKD

2011 9.965 10.164 10.571 10.7272012 8.650 10.344 9.129 10.9172013 9.920 10.903 10.474 11.5072014 9.800 10.553 10.104 10.8802015 9.664 10.593 10.199 11.1802016 9.445 10.304 9.968 10.8752017 9.943 10.382 10.260 10.9572018 9.450 10.378 9.976 10.9562019 9.209 9.952 9.209 10.213

“AM – USD” class units


USD USD USD USD

2011 9.944 10.139 10.495 10.7012012 8.635 10.367 9.113 10.9412013 9.945 10.920 10.496 11.5252014 9.821 10.584 10.125 10.9122015 9.686 10.624 10.223 11.2132016 9.449 10.327 9.973 10.8992017 9.964 10.405 10.204 10.9822018 9.354 10.329 9.872 10.9012019 9.139 9.885 9.139 10.113

“AMH – AUD” class units


AUD AUD AUD AUD

2014 9.887 10.281 10.193 10.5992015 9.391 10.319 9.911 10.8912016 9.176 10.052 9.684 10.6092017 9.690 10.123 9.953 10.6842018 9.131 10.075 9.637 10.6342019 8.917 9.634 8.917 9.872

113


“AMH – EUR” class units


EUR EUR EUR EUR

2014 10.009 10.334 10.319 10.6542015 9.418 10.374 9.940 10.9492016 9.117 9.918 9.622 10.4682017 9.544 9.993 9.736 10.5472018 8.884 9.849 9.376 10.3942019 8.668 9.417 8.668 9.601

“IC – USD” class units


USD USD USD USD

2011 9.947 10.175 10.498 10.7392012 8.778 11.074 9.264 11.6882013 11.077 11.940 11.691 12.6022017 9.799 10.728 10.425 11.3222018 10.019 10.728 10.574 11.3222019 10.071 10.378 10.629 10.953

“ZD – USD” class units


USD USD USD USD

2017 9.711 10.684 10.388 11.2762018 9.629 10.720 10.163 11.3142019 9.382 10.703 9.382 10.703

“IM-USD” class units


USD USD USD USD

2019 9.981 10.030 9.981 10.030


2019 2018 2017 2016USD USD USD USD


114




Net asset value per unit– “AC – HKD” class HKD 15.891 14.517 14.496 13.974– “AC – SGD” class SGD – – 16.203 14.805– “AC – USD” class USD 15.782 14.381 14.526 14.267– “AM – HKD” class HKD 9.910 9.664 10.193 10.341– “AM – USD” class USD 9.832 9.568 10.204 10.243– “AMH – AUD” class AUD 9.589 9.342 10.524 10.011– “AMH – EUR” class EUR 9.379 9.093 10.702 9.893– “IC – USD” class USD – 10.363 10.425 N/A– “IM – USD” class USD 10.027 N/A N/A N/A– “ZD – USD” class USD 10.088 9.629 10.388 N/A


2019


Total expense ratio

USD USD %

– “AC – HKD” class 197,780 2,673 1.35%– “AC – USD” class 11,600,197 157,674 1.36%– “AM – HKD” class 194,092,492 2,643,435 1.36%– “AM – USD” class 495,720,027 6,750,339 1.36%– “AMH – AUD” class 25,365,304 345,801 1.36%– “AMH – EUR” class 7,628,387 103,951 1.36%– “IC – USD” class 1,055,025 9,980 0.95%– “ZD – USD” class 2,428,365 2,707 0.11%– “IM – USD” class 2,198,602 6,866 0.31%

115

Administration

ManagerHSBC Investment Funds (Hong Kong) LimitedHSBC Main Building1 Queen’s Road CentralHong Kong

Directors of the ManagerStuart Glenn BERRYPedro Augusto BOTELHO BASTOSGuillermo Eduardo MALDONADO CODINAChun Pong Stephen TAMKa Yin Joanne LAU

Investment adviserHSBC Global Asset Management (Hong Kong) LimitedHSBC Main Building1 Queen’s Road CentralHong Kong

Custodian, trustee and registrarHSBC Institutional Trust Services (Asia) Limited1 Queen’s Road CentralHong Kong

AuditorKPMG8th Floor, Prince’s Building10 Chater Road CentralHong Kong

HIF

T071

9A

P

rinte

d in

the

Hon

g Ko

ng S

AR

Issued by HSBC Global Asset Management (Hong Kong) Limited

Date post:	06-Aug-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

Annual Report 2019 - hfi.hsbc.com.hk · 2019 lower, despite a short-term market recovery in the...

Documents