HSBC Canadian Money Market Fund

HSBC CanadianMoney Market Fund

Interim Management Report of Fund Performance

for the six months ended June 30, 2018

◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC CanadianMoney Market Fund.

We are the manager, trustee and primary investment advisor ofthe Fund.

IntroductionThis Interim Management Report of Fund Performance containsfinancial highlights but does not contain either the semi-annualfinancial report or annual financial statements of the investmentfund. You may obtain a copy of the Fund’s semi-annual financialreport or annual financial statements at your request, at no cost,by calling us toll-free at 1-888-390-3333, by visiting our website atwww.hsbc.ca/investment-resources, by visiting the SEDARwebsite at www.sedar.com or by writing to us at:

Corporate SecretaryHSBC Global Asset Management (Canada) Limited3rd Floor, 885 West Georgia StreetVancouver, BC V6C 3E8

You may also contact us using one of these methods to request acopy of the Fund’s proxy voting policies and procedures, proxy votingdisclosure record or quarterly statement of investment portfolio.

Results of OperationsAs of June 30, 2018, the Fund’s net assets decreased by 7.2% to$179.7 million from $193.6 million at the end of 2017. Of thisdecrease, $14.8 million was attributable to net withdrawals fromthe Fund, mitigated by a $0.9 million gain attributable toinvestment performance.

Investment PerformanceThe HSBC Canadian Money Market Fund (Investor Series) rose0.31% for the six-month period ending June 30, 2018, while thebenchmark rose 0.58% over the same period.The benchmark is aweighted composite consisting of the FTSE TMX Canada 30 DayT-Bill Index (50%) and FTSE TMX Canada 60 Day T-Bill Index(50%).

In the first half of 2018, we held a defensive position to thecorporate debt sector, focusing on high-quality issues to minimizecredit and liquidity risk, thus protecting the Fund’s primaryobjectives of preserving capital and providing liquidity. We alsoincreased our holdings in floating rate notes to take advantage ofthe rising rate environment.

An allocation to corporate notes is usually positive forperformance because they can offer higher yields overgovernment-backed alternatives. However, these notes comewith additional risks that may be unsuitable for the Fund at anylevel of compensation. We work within an extensive network ofglobal credit research analysts to ensure that a prudent securityselection process is in place.

We also look to add value by adjusting the weighted averagematurity (or duration) of the portfolio holdings relative to theFund’s benchmark. Over the first six months of the year, theFund’s duration was targeted slightly below its blended 45-daybenchmark after the January Bank of Canada rate hike, inanticipation of another rate hike in the early part of the thirdquarter of 2018.

Recent DevelopmentsAlthough global growth lost a little momentum in the first half ofthe year, recession risk is low and corporate fundamentals arestrong. We believe the current environment remains constructivefor investment returns, but we are mindful that the “Goldilocks”scenario of solid growth and low inflation, which markets haveenjoyed over the last two years, cannot last forever.

In Canada, while the labour market continues to be healthy,uncertainty over US trade policy and the impact of higherborrowing costs on consumers created some headwinds togrowth in the first half of 2018. Growth is expected to firm in thesecond half of 2018 and should remain at or slightly abovepotential (~1.5%-2%) next year. The Bank of Canada raised itspolicy rate in January 2018 to 1.25%, following a string ofpositive readings for GDP and CPI (inflation), as well as jobs andwage growth. We expect the Bank of Canada to further tightenmonetary policy in the second half of 2018 and will be guided byincoming data.

Related PartyTransactionsWe, on behalf of the Fund, in our role as fund manager, may, fromtime to time, enter into transactions or arrangements with orinvolving other members of the HSBC Group or other people orcompanies related or connected to us or the Fund. To proceedwith the transactions, the Fund relies on the positiverecommendation of the Fund’s Independent Review Committee. Acondition of this positive recommendation is that the transactionsare performed in accordance with our policy on Related PartyTransactions. For more general information on persons related tothe Fund and the types of potential transactions, see the Fund’sSimplified Prospectus.

The following is a summary of current transactions andarrangements with entities that are related to us or the Fund.

Manager, Trustee and Investment AdvisorWe are the manager, trustee and primary investment advisor ofthe Fund. As manager, we manage the overall business andoperations of the Fund. As trustee, we hold legal title to theproperty of the Fund on your behalf. As primary investmentadvisor, we provide investment advice and portfolio managementservices to the Fund. We receive a fee from the Fund for theseservices based on assets under management, calculated dailyand paid monthly.

HSBC Canadian Money Market Fund

1

Distribution ServicesThe Fund is distributed through us, HSBC Investment Funds(Canada) Inc. (our wholly owned subsidiary and affiliate) andHSBC Securities (Canada) Inc. (an affiliate) directly or through itsdivision, HSBC InvestDirect. We pay distribution and servicingfees to them based on the amount of assets held in the investor’saccount, and additionally, in some cases, on the amount of theinitial purchase. If you hold units of this Fund and/or other HSBCMutual Funds in a registered plan with HSBC Investment Funds(Canada) Inc., they may charge you an annual fee to cover theannual administration costs of the plan. We permit HSBCInvestment Funds (Canada) Inc. to collect these fees byredeeming sufficient units of the Fund with the highest marketvalue in your registered plan.

Purchases of Securities Underwritten by a Related PartyThe Fund may invest in certain securities that are underwritten, inwhole or in part, by entities that are a related party to us. Toproceed with these transactions, the Fund relies on the approvalof the Fund’s Independent Review Committee by way ofStanding Instruction. A condition of this approval is that thetransactions are performed in accordance with our policy onPurchases of Securities Underwritten by a Related Party. Duringthe period, the Fund did not invest in any such securities.

Financial HighlightsThe following tables show selected key financial informationabout the Fund and are intended to help you understand theFund’s financial performance for the six-month period endedJune 30, 2018, and for the last five years ended December 31, asapplicable. In the year a fund is established, “period” representsthe period from inception to December 31 or June 30 of thatfiscal year, as applicable. This information is derived from theFund’s unaudited semi-annual financial statements and theaudited annual financial statements. The information in thefollowing tables is based on prescribed regulations, and as aresult, is not expected to add due to the increase/decrease in netassets from operations being based on average units outstandingduring the period and all other numbers being based on actualunits outstanding at the relevant point in time.

HSBC Canadian Money Market Fund – InvestorSeries – Net Assets per Unit(1)

Period ended June 30, 2018 (unaudited) and years endedDecember 31

June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

Net assets per unit,

beginning of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

Increase (decrease) from

operations:

Total revenue 0.07 0.09 0.07 0.08 0.10 0.11Total expenses (excluding

distributions) (0.04) (0.07) (0.06) (0.07) (0.10) (0.10)Realized gains (losses) – – – – – –Unrealized gains (losses) – – – – 0.01 –

Total increase

(decrease) from

operations (2) $0.03 $0.02 $0.01 $0.01 $0.01 $0.01

Distributions to unitholders:

From income (excludingdividends) (0.03) (0.02) (0.01) (0.01) (0.01) (0.01)

From dividends – – – – – –From capital gains – – – – – –From return of capital – – – – – –

Total annual

distributions (2,3) $(0.03) $(0.02) $(0.01) $(0.01) $(0.01) $(0.01)

Net assets per unit, end of

period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

Ratios and Supplemental DataPeriod ended June 30, 2018 (unaudited) and years endedDecember 31

June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $77,218 $80,968 $94,686 $105,687 $121,931 $144,603Number of unitsoutstanding (in 000s) (4) 7,722 8,097 9,469 10,569 12,193 14,460Management expense ratio(�MER�) (5) 0.79% 0.61% 0.56% 0.73% 0.98% 1.03%MER before absorbed orwaived fees (5) 1.01% 1.00% 0.98% 0.98% 0.98% 1.03%Trading expense ratio (6) n/a n/a n/a n/a n/a n/aPortfolio turnover rate (7) n/a n/a n/a n/a n/a n/aNAV per unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00


2

HSBC Canadian Money Market Fund – AdvisorSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.04) (0.06) (0.06) (0.07) (0.10) (0.10)Realized gains (losses) – – – – – –Unrealized gains (losses) – – – – – –

Total increase

(decrease) from

operations (2) $0.03 $0.03 $0.01 $0.01 $– $0.01


From income (excludingdividends) (0.03) (0.03) (0.01) (0.01) – (0.01)


Total annual

distributions (2,3) $(0.03) $(0.03) $(0.01) $(0.01) $– $(0.01)


period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $164 $139 $286 $140 $123 $445Number of units outstanding (in000s) (4) 16 14 29 14 12 44Management expense ratio(�MER�) (5) 0.79% 0.61% 0.56% 0.72% 1.02% 1.03%MER before absorbed orwaived fees (5) 1.62% 1.39% 1.81% 2.07% 1.02% 1.05%Trading expense ratio (6) n/a n/a n/a n/a n/a n/aPortfolio turnover rate (7) n/a n/a n/a n/a n/a n/aNAV per unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

HSBC Canadian Money Market Fund – PremiumSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.05 $0.04 $0.03 $0.04 $0.07 $0.06




Total annual

distributions (2,3) $(0.05) $(0.04) $(0.03) $(0.04) $(0.07) $(0.06)


period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $28,130 $38,060 $39,046 $30,914 $37,120 $43,608Number of units outstanding (in000s) (4) 2,813 3,806 3,905 3,091 3,712 4,361Management expense ratio(�MER�) (5) 0.46% 0.47% 0.43% 0.42% 0.43% 0.48%MER before absorbed orwaived fees (5) 0.46% 0.47% 0.43% 0.42% 0.43% 0.48%Trading expense ratio (6) n/a n/a n/a n/a n/a n/aPortfolio turnover rate (7) n/a n/a n/a n/a n/a n/aNAV per unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00


3

HSBC Canadian Money Market Fund – ManagerSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.04 $0.03 $0.02 $0.01 $0.04 $0.04




Total annual

distributions (2,3) $(0.04) $(0.03) $(0.02) $(0.01) $(0.04) $(0.04)


period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $74 $74 $747 $871 $1,161 $1,398Number of units outstanding (in000s) (4) 7 7 75 87 116 140Management expense ratio(�MER�) (5) 0.65% 0.50% 0.51% 0.68% 0.70% 0.74%MER before absorbed orwaived fees (5) 1.96% 0.85% 0.78% 0.74% 0.70% 0.74%Trading expense ratio (6) n/a n/a n/a n/a n/a n/aPortfolio turnover rate (7) n/a n/a n/a n/a n/a n/aNAV per unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

HSBC Canadian Money Market Fund –Institutional Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) – (0.01) – – (0.01) (0.01)Realized gains (losses) – – – – – –Unrealized gains (losses) – – – – 0.01 –

Total increase

(decrease) from

operations (2) $0.07 $0.08 $0.07 $0.08 $0.09 $0.10




Total annual

distributions (2,3) $(0.07) $(0.08) $(0.07) $(0.08) $(0.09) $(0.10)


period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


(1) This information is derived from the Fund’s unaudited semi-annualfinancial report and audited annual financial statements. All balancesare stated in accordance with IFRS, with the exception of 2013,which was prepared in accordance with Canadian GAAP. Under IFRS,the net assets per unit presented in the financial statements is thesame as the net asset value calculated for fund pricing purposes.

(2) Net assets per unit and distributions per unit are based on the actualnumber of units outstanding for the relevant series at the relevant


4

time. The increase/decrease in net assets from operations per unit isbased on the weighted average number of units outstanding for therelevant series over the financial period.

(3) Distributions are automatically reinvested in additional units of theFund, unless the unitholder withdraws from the automaticreinvestment plan by providing written notice to us.

(4) This information is provided as at period-end of the year shown.

(5) Management expense ratio is based on total expenses (excludingdistributions, commissions and other portfolio transaction costs) forthe stated period and is expressed as an annualized percentage ofdaily average net asset value during the period. In the year a series isestablished, the MER is annualized from the date of inception to theend of the period. The MER may vary from one mutual fund toanother and from one series of units to another. In the period, wewaived certain fees and expenses otherwise payable by this Fund.We will continue to waive management and operating fees until suchtime as market yields rise above the MER of the Fund.

(6) The trading expense ratio represents total commissions and otherportfolio transaction costs expressed as an annualized percentage ofdaily average net asset value during the financial period.

(7) The Fund’s portfolio turnover rate indicates how actively the Fund’sportfolio advisor manages its portfolio investments. A portfolioturnover rate of 100% is equivalent to the Fund buying and selling allof the securities in its portfolio once in the course of the period. Thehigher the Fund’s portfolio turnover rate in a period, the greater thetrading costs payable by the Fund in the period, and the greater thechance of an investor receiving taxable capital gains in the period.There is not necessarily a relationship between a high turnover rateand the performance of the Fund. The rate is calculated based on thelesser of purchases or sales of securities divided by the averageweighted market value of the portfolio securities, excludingshort-term securities.

Management FeesFor the six months ended June 30, 2018, the Fund paid usmanagement fees of $376,963. The management fee for eachseries is calculated as a percentage of the daily net asset valuefor that series. The fees are reduced, where required, so thatthese fees do not duplicate fees payable by mutual funds inwhich the Fund invests for the same service.

The Fund’s management fees were used by us to pay costs formanaging the investment portfolio, providing investment analysisand recommendations, making investment decisions, makingbrokerage arrangements for the purchase and sale of theinvestment portfolio and providing other services. Themanagement fees also funded commission payments and othercompensation to sales representatives and registered dealersand brokers (collectively “distribution costs”), including HSBCInvestment Funds (Canada) Inc., for units of the Fund bought andheld by unitholders. Finally, we used management fees to pay foradditional marketing and distribution services to the Fund.

For the six months ended June 30, 2018, approximately 45% ofthe total management fees collected from all HSBC MutualFunds were used to fund distribution costs. In comparison, forthe Fund, such distribution costs represented 38% of themanagement fees collected. This may vary by series, dependingon the assets invested in each of the series.

Past PerformanceThe performance information shown assumes that alldistributions made by the Fund in the periods shown werereinvested in additional securities of the Fund. The performanceinformation does not take into account sales, redemption,distribution, optional charges or expenses you may be chargedoutside of the Fund or the effect of any income tax you may haveto pay as a result of your investment in the Fund that would havereduced returns or performance. The performance of differentfund series may vary for a number of reasons, includingdifferences in management fees and expenses. The Fund’s pastperformance does not necessarily indicate how it will perform inthe future.

Year-by-Year ReturnsThe following bar charts show the Fund’s performance for thesix-month period ended June 30, 2018, and for each of theprevious 12-month periods ended December 31. In percentageterms, the bar charts show how much an investment made onthe first day of each financial period would have grown ordecreased by the last day of each financial period.

Returns – Investor SeriesFor the 12-month periods ended December 31 and the six-monthperiod ended June 30, 2018

2.3%

0.1% 0.0% 0.1% 0.1% 0.1% 0.1% 0.1% 0.2% 0.3% 0.3%0%

5%

10%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Returns – Advisor SeriesFor the 12-month periods ended December 31 and the six-monthperiod ended June 30, 2018

2.3%

0.1% 0.0% 0.1% 0.1% 0.1% 0.1% 0.0% 0.2% 0.3% 0.3%0%

5%

10%



5

Returns – Premium SeriesFor the 12-month periods ended December 31 and the six-monthperiod ended June 30, 2018

0.3% 0.2%0.7% 0.6% 0.6% 0.6% 0.3% 0.3% 0.4% 0.5%

0%

5%

10%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Returns – Manager SeriesFor the 12-month periods ended December 31 and the six-monthperiod ended June 30, 2018

2.6%

0.2% 0.1% 0.4% 0.4% 0.3% 0.4% 0.1% 0.2% 0.3% 0.4%0%

5%

10%


Returns – Institutional SeriesFor the 12-month periods ended December 31 and the six-monthperiod ended June 30, 2018

3.2%

0.6% 0.6% 1.0% 1.0% 1.0% 1.0% 0.7% 0.7% 0.8% 0.7%

0%

5%

10%


Summary of Investment PortfolioAs at June 30, 2018

Asset MixPercentage

of NAV

Corporate Bonds 71.43%Government Bonds 28.18%Cash & Equivalents 0.39%Total 100.00%

Top 25 HoldingsPercentage

of NAV

Royal Bank of Canada, 1.20%, 07/03/18 4.34%Fédération des caisses Desjardins du Québec, 1.30%, 07/03/18 4.17%Government of Canada, 1.10%, 08/23/18 3.61%Government of Canada, 1.20%, 10/04/18 3.60%CAFO Inc., 1.50%, 07/03/18 2.36%Canada HousingTrust No. 1, 1.71%, 09/15/18 2.12%Financement-Quebec, 2.01%, 05/29/19 1.96%Bank of Nova Scotia, 1.20%, 07/03/18 1.95%Bank of Nova Scotia, 1.76%, 06/14/19 1.95%CAFO Inc., 1.60%, 07/19/18 1.95%Imperial Oil Ltd., 1.40%, 07/05/18 1.95%Province of Nova Scotia, 1.30%, 07/12/18 1.95%Royal Bank of Canada, 1.73%, 06/19/19 1.95%Royal Bank of Canada, 1.40%, 07/03/18 1.95%Bank of China, 1.80%, 09/05/18 1.94%BNP Paribas, 1.60%, 08/01/18 1.94%GreaterToronto Airports Authority, 1.60%, 07/12/18 1.94%National Bank of Canada, 1.60%, 08/29/18 1.94%Nestlé Capital Canada Ltd., 1.60%, 08/28/18 1.94%Sumitomo Mitsui Banking Corporation, 1.70%, 09/06/18 1.94%Manulife Bank of Canada, 1.80%, 12/21/18 1.93%Mizuho Bank, Ltd., 1.60%, 07/04/18 1.81%OntarioTeachers’ FinanceTrust, 1.60%, 09/05/18 1.80%Municipal Finance Authority of British Columbia, 5.10%,11/20/18 1.69%OMERS FinanceTrust, 1.50%, 07/09/18 1.67%Total ofTop 25 Holdings 56.35%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.


6

For more information

You can find more information about HSBC Mutual Fundsin the Fund’s Simplified Prospectus, Annual InformationForm, Annual and Semi-Annual Report and Fund Facts. Youcan get a copy of these documents at no cost by calling ustoll-free at 1-888-390-3333, contacting your authorizeddealer or visiting our website atwww.hsbc.ca/investment-resources.

These documents and other information about the Fund,such as information circulars and material contracts, arealso available at www.sedar.com.

Copies of the Annual Report and Semi-Annual Report,Simplified Prospectus, Annual Information Form, Annualand Interim Management Report of Fund Performance andFund Facts are available on our website atwww.hsbc.ca/investment-resources.

How to reach us

HSBC Global Asset Management (Canada) Limited

Vancouver

3rd Floor, 885 West Georgia StreetVancouver, BC V6C 3E8

Toronto

Suite 300, 70 York StreetToronto, ON M5J 1S9

Toll-free: 1-888-390-3333Fax: 604-669-2756Email: [email protected]

Website: www.hsbc.ca/investment-resources

A NOTE ON FORWARD-LOOKING STATEMENTS

This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-lookingstatements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as“expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement thatmay be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement.Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things,risks, uncertainties and assumptions about the Fund and economic factors.

Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed orimplied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but notlimited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity andcapital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, andcatastrophic events.

We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully beforemaking any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of thefact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future eventsor otherwise.

Sources: HSBC Global Asset Management (Canada) Limited, FTSE TMX Global Debt Capital Markets Inc.

FTSE TMX Global Debt Capital Markets Inc. (“FTDCM”), FTSE International Limited (“FTSE”), the London Stock Exchange Group companies (the“Exchange”) or TSX Inc. (“TSX” and together with FTDCM, FTSE and the Exchange, the “Licensor Parties”). The Licensor Parties make no warranty orrepresentation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE TMX Canada Index and/or the figureat which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTDCM and all copyrightin the Index values and constituent lists vests in FTDCM. The Licensor Parties shall not be liable (whether in negligence or otherwise) to any person forany error in the Index and the Licensor Parties shall not be under any obligation to advise any person of any error therein. “TMX” is a trade mark ofTSX Inc. and is used under licence. “FTSE®” is a trade mark of FTSE International Limited and is used by FTDCM under licence.

Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued byHSBC Global Asset Management (Canada) Limited (2

018-

08)D

FS

HSBC U.S. DollarMoney Market Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC U.S. DollarMoney Market Fund.





Results of OperationsAs of June 30, 2018, the Fund’s net assets decreased by 9.1% to$22.1 million from $24.3 million at the end of 2017. Of thisdecrease, $2.3 million was attributable to net withdrawals fromthe Fund, mitigated by a $0.1 million gain attributable toinvestment performance. All figures are stated in US dollars.

Investment PerformanceThe HSBC U.S. Dollar Money Market Fund (Investor Series) rose0.42% for the six-month period ending June 30, 2018, while thebenchmark rose 0.77% over the same period.The benchmark is aweighted composite consisting of the Citigroup 1-MonthTreasuryBill Index (75%) and Citigroup 3-Month Treasury Bill Index (25%).

In the first half of 2018, we held a defensive position to thecorporate debt sector, focusing on high-quality issues to minimizecredit and liquidity risk, thus protecting the Fund’s primaryobjectives of preserving capital and providing liquidity. We alsoincreased our holdings in floating rate notes to take advantage ofthe rising rate environment.

An allocation to corporate notes is usually positive forperformance because they can offer higher yields overgovernment-backed alternatives. However, these notes comewith additional risks that may be unsuitable for the Fund at anylevel of compensation. We work within an extensive network ofglobal credit research analysts to ensure that a prudent securityselection process is in place.

We also look to add value by adjusting the weighted averagematurity (or duration) of the portfolio holdings relative to the

Fund’s benchmark. Over the first half of the year, the Fund’sduration was targeted slightly below its blended 45-daybenchmark, as the Federal Open Market Committee (FOMC) wasexpected to hike rates several times in the first half of 2018.

Recent DevelopmentsFollowing the appointment of new US Federal Reserve chairJerome Powell, the FOMC continued its gradual removal ofmonetary policy support by raising its target range for the federalfunds rate by 0.25% in March and another 0.25% in June,bringing the range to 1.75%-2.00%.

Although rates are no longer at historic lows, the FOMC said inits June statement that rates are still accommodative but closerto a neutral stance. In addition, the FOMC expects that “furthergradual increases in the target range for the federal funds ratewill be consistent with sustained expansion of economic activity,strong labor market conditions, and inflation near theCommittee’s symmetric 2 percent objective over the mediumterm.” The FOMC has stated it will monitor incoming data whenformulating future policy decisions.

We expect the FOMC to keep its tightening bias intact, whichshould warrant another 25 basis point hike in the second half of2018.




Distribution ServicesThe Fund is distributed through us, HSBC Investment Funds(Canada) Inc. (our wholly owned subsidiary and affiliate) andHSBC Securities (Canada) Inc. (an affiliate) directly or through its

HSBC U.S. Dollar Money Market Fund

1

division, HSBC InvestDirect. We pay distribution and servicingfees to them based on the amount of assets held in the investor’saccount, and additionally, in some cases, on the amount of theinitial purchase. If you hold units of this Fund and/or other HSBCMutual Funds in a registered plan with HSBC Investment Funds(Canada) Inc., they may charge you an annual fee to cover theannual administration costs of the plan. We permit HSBCInvestment Funds (Canada) Inc. to collect these fees byredeeming sufficient units of the Fund with the highest marketvalue in your registered plan.



All figures are stated in US dollars.

HSBC U.S. Dollar Money Market Fund – InvestorSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:

Total revenue 0.09 0.11 0.05 0.02 0.01 –Total expenses (excluding

distributions) (0.05) (0.08) (0.04) (0.01) (0.01) –Realized gains (losses) – – – – – –Unrealized gains (losses) – – – – – –

Total increase

(decrease) from

operations (2) $0.04 $0.03 $0.01 $0.01 $– $–


From income (excludingdividends) (0.04) (0.03) (0.01) (0.01) – –


Total annual

distributions (2,3) $(0.04) $(0.03) $(0.01) $(0.01) $– $–


period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC U.S. Dollar Money Market Fund – AdvisorSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014*

Dec. 31,

2013


beginning of period (2) $– $– $– $– $10.00 $10.00


operations:

Total revenue – – – – 0.01 –Total expenses (excluding

distributions) – – – – (0.01) –Realized gains (losses) – – – – – –Unrealized gains (losses) – – – – – –

Total increase

(decrease) from

operations (2) $– $– $– $– $– $–


From income (excludingdividends) – – – – – –


Total annual

distributions (2,3) $– $– $– $– $– $–


period (2) $– $– $– $– $– $10.00


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014*

Dec. 31,

2013

NAV (in 000s) (4) $– $– $– $– $– $220Number of units outstanding (in000s) (4) – – – – – 22Management expense ratio(�MER�) (5) – – – – 0.10% 0.12%MER before absorbed orwaived fees (5) – – – – 1.36% 1.26%Trading expense ratio (6) – – n/a n/a n/a n/aPortfolio turnover rate (7) – – n/a n/a n/a n/aNAV per unit (4) $– $– $– $– $– $10.00

* The Advisor Series was fully redeemed during 2014; however, itremains in offer as at period-end.

HSBC U.S. Dollar Money Market Fund –Premium Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.04) (0.07) (0.04) (0.01) (0.01) (0.01)Realized gains (losses) – – – – – –Unrealized gains (losses) – – – – – –

Total increase

(decrease) from

operations (2) $0.05 $0.04 $0.02 $0.01 $– $–


From income (excludingdividends) (0.05) (0.04) (0.02) (0.01) – –


Total annual

distributions (2,3) $(0.05) $(0.04) $(0.02) $(0.01) $– $–


period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $8,227 $8,456 $11,028 $8,772 $11,277 $10,774Number of units outstanding (in000s) (4) 823 846 1,103 877 1,128 1,077Management expense ratio(�MER�) (5) 0.78% 0.67% 0.38% 0.13% 0.10% 0.12%MER before absorbed orwaived fees (5) 0.78% 0.73% 0.56% 0.58% 0.58% 0.56%Trading expense ratio (6) n/a n/a n/a n/a n/a n/aPortfolio turnover rate (7) n/a n/a n/a n/a n/a n/aNAV per unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00


3

HSBC U.S. Dollar Money Market Fund –Manager Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015**

Dec. 31,

2014

Dec. 31,

2013


beginning of period (2) $– $– $– $10.00 $10.00 $10.00


operations:

Total revenue – – – – 0.01 0.01Total expenses (excluding

distributions) – – – – (0.01) (0.01)Realized gains (losses) – – – – – –Unrealized gains (losses) – – – – – –

Total increase

(decrease) from

operations (2) $– $– $– $– $– $–




Total annual

distributions (2,3) $– $– $– $– $– $–


period (2) $– $– $– $– $10.00 $10.00


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015**

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $– $– $– $– $32 $327Number of units outstanding (in000s) (4) – – – – 3 33Management expense ratio(�MER�) (5) – – – 0.09% 0.10% 0.13%MER before absorbed orwaived fees (5) – – – 2.95% 0.91% 0.92%Trading expense ratio (6) – – n/a n/a n/a n/aPortfolio turnover rate (7) – – n/a n/a n/a n/aNAV per unit (4) $– $– $– $– $10.00 $10.00

** The Manager Series was fully redeemed during 2015; however, itremains in offer as at period-end.

HSBC U.S. Dollar Money Market Fund –Institutional Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.02) (0.03) (0.02) – – –Realized gains (losses) – – – – – –Unrealized gains (losses) – – – – – –

Total increase

(decrease) from

operations (2) $0.07 $0.08 $0.03 $0.01 $0.01 $0.01




Total annual

distributions (2,3) $(0.07) $(0.08) $(0.03) $(0.01) $(0.01) $(0.01)


period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $24 $37 $36 $201 $6,757 $6,103Number of units outstanding (in000s) (4) 2 4 4 20 676 610Management expense ratio(�MER�) (5) 0.35% 0.31% 0.22% (0.03)% (0.01)% (0.02)%MER before absorbed orwaived fees (5) 1.36% 0.87% 0.29% 0.18% 0.17% 0.14%Trading expense ratio (6) n/a n/a n/a n/a n/a n/aPortfolio turnover rate (7) n/a n/a n/a n/a n/a n/aNAV per unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00


(2) Net assets per unit and distributions per unit are based on the actualnumber of units outstanding for the relevant series at the relevanttime. The increase/decrease in net assets from operations per unit isbased on the weighted average number of units outstanding for therelevant series over the financial period.

(3) Distributions are automatically reinvested in additional units of theFund; cash distributions are not available.


(5) Management expense ratio is based on total expenses (excludingdistributions, commissions and other portfolio transaction costs) for


4

the stated period and is expressed as an annualized percentage ofdaily average net asset value during the period. In the year a series isestablished, the MER is annualized from the date of inception to theend of the period. The MER may vary from one mutual fund toanother and from one series of units to another. In the period, wewaived certain fees and expenses otherwise payable by this Fund.We will continue to waive management and operating fees until suchtime as market yields rise above the MER of the Fund.






Past PerformanceThe performance information shown assumes that alldistributions made by the Fund in the periods shown werereinvested in additional securities of the Fund. The performanceinformation does not take into account sales, redemption,distribution, optional charges or expenses you may be chargedoutside of the Fund or the effect of any income tax you may haveto pay as a result of your investment in the Fund that would havereduced returns or performance. The performance of different

fund series may vary for a number of reasons, includingdifferences in management fees and expenses. The Fund’s pastperformance does not necessarily indicate how it will perform inthe future.



1.6%

0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.3% 0.4%0%

5%

10%



1.6%

0.1% 0.0% 0.0% 0.0% 0.0%0%

5%

10%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302008 2009 2010 2011 2012 2013 2014* 2015* 2016* 2017* 2018*

* The Advisor Series was fully redeemed during 2014. There were nounitholders for the full calendar year since 2015; however, the seriesremains in offer at period-end.


5


0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.4% 0.5%0%

5%

10%



1.9%

0.1% 0.0% 0.0% 0.0% 0.0% 0.0%0%

5%

10%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302008 2009 2010 2011 2012 2013 2014 2015* 2016* 2017* 2018*

* The Manager Series was fully redeemed during 2015. There were nounitholders for the full calendar year since 2016; however, the seriesremains in offer at period-end.


2.7%

0.4% 0.2% 0.2% 0.2% 0.1% 0.1% 0.2% 0.3%0.8% 0.7%

0%

5%

10%



Asset MixPercentage

of NAV

Corporate Bonds 94.44%Government Bonds 6.07%Cash & Equivalents -0.51%Total 100.00%


of NAV

Farm Credit Canada, 1.98% 07/16/18 6.42%Royal Bank of Canada, 1.80% 07/03/18 6.16%Bank of Nova Scotia, 1.90% 07/03/18 5.89%Hydro-Québec, 2.00% 07/09/18 3.62%Province of Quebec, 1.99% 08/13/18 3.16%Toronto-Dominion Bank, 2.28% 07/23/18 3.09%BNP Paribas SA, 2.70% 08/20/18 2.27%Nordea Bank AB, 2.16% 09/17/18 2.27%CAFO Inc, 1.96% 07/05/18 2.26%Export Development Canada, 1.87% 07/03/18 2.26%Fannie Mae Discount Notes, 1.81% 07/23/18 2.26%OMERS FinanceTrust, 2.30% 09/05/18 2.25%UBS AG, 2.35% 12/07/18 2.04%CDP Financial Inc, 2.22% 08/01/18 2.03%Commonwealth Bank of Australia, 1.38% 09/06/18 1.92%Wells Fargo Bank NA, 2.82% 11/28/18 1.91%Credit Agricole SA, 2.63% 10/03/18 1.86%Santander UK PLC, 2.00% 08/24/18 1.86%Bank of America Canada, 2.04% 08/01/18 1.85%Bank ofTokyo-Mitsubishi UFJ (Canada), 2.32% 07/30/18 1.85%CAFO Inc, 2.10% 07/26/18 1.85%Citibank Canada, 2.04% 08/01/18 1.85%Fédération des caisses Desjardins du Québec, 2.23% 08/02/18 1.85%Mizuho Bank, Ltd, 2.33% 09/26/18 1.85%PACCAR Financial Ltd., 2.12% 07/30/18 1.85%Total ofTop 25 Holdings 66.48%



6





How to reach us


Vancouver


Toronto








Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg.



018-

08)D

FS

HSBC Mortgage Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBCMortgage Fund.





Results of OperationsAs of June 30, 2018, the Fund’s net assets decreased by 10.2%to $2,166.5 million from $2,412.8 million at the end of 2017. Ofthis decrease, $262.8 million was attributable to net withdrawalsfrom the Fund, mitigated by a $16.5 million gain attributable toinvestment performance.

Investment PerformanceThe HSBC Mortgage Fund (Investor Series) rose 0.12% for thesix-month period ending June 30, 2018, while the benchmarkrose 0.81% over the same period. The benchmark is a weightedcomposite consisting of the FTSE TMX Canada 1-Year MortgageIndex (40%), FTSE TMX Canada 3-Year Mortgage Index (20%),FTSE TMX Canada Short Term Bond Index (20%), FTSE TMXCanada 5-Year Mortgage Index (10%) and FTSE TMX Canada 91Day T-Bill Index (10%), with a discount factor.

Broad posted mortgage rates were higher on the second quarter,with the yield on the FTSE TMX Canada Residential MortgageIndex rising to 4.04% from 3.94% in Q1 and 3.74% at the end of2017. The yield differential between five-year fixed mortgagerates and five-year Government of Canada bonds widened to 327basis points from 317 basis points in Q1 and 312 basis points atthe end of 2017.

Overall, mortgages slightly outperformed short-term governmentbonds in the first half of the year as their higher running yieldoffset wider mortgage yield spreads. We believe that mortgagerates still represent attractive value at current levels. While the

yield spread is now slightly tighter than its long-term historicalaverage, the incremental yield advantage is still considerablegiven the historically low interest rate environment.

The relatively high running yield of the Fund continues to be apositive for returns and will help offset some of the negativeimpacts if mortgage rates move higher. Portfolio duration isconservatively positioned below two years.

Recent DevelopmentsIn Canada, growth is expected to firm in the back half of 2018 andshould remain at or slightly above potential (~1.5%-2.0%) nextyear. The Bank of Canada began 2018 with a rate hike in Januaryand is expected to further tighten monetary policy in the secondhalf of the year.

With longer-term yields expected to rise modestly over the nextyear, we aim to maintain the Fund’s interest rate exposure at orslightly below the benchmark in the near term. The average termof the Fund remains conservative at less than two years.

We feel that the corporate sector remains fundamentally sound,with stable to improving earnings growth and defensivelypositioned balance sheets. Although sector valuations in creditmarkets improved slightly in the second quarter of 2018, theyhave deteriorated over the previous few quarters. That said, wecontinue to prefer provincial and corporate bonds overGovernment of Canada bonds, and we expect to remainoverweight in these sectors in the non-mortgage portion ofthe Fund.

Potential risks to our central outlook include disappointing globalgrowth, escalating global trade disputes, renewed weakness incommodity prices and heightened geopolitical concerns inthe eurozone.



Manager, Trustee and Investment AdvisorWe are the manager, trustee and primary investment advisor ofthe Fund. As manager, we manage the overall business andoperations of the Fund. As trustee, we hold legal title to theproperty of the Fund on your behalf. As primary investment

HSBC Mortgage Fund

1

advisor, we provide investment advice and portfolio managementservices to the Fund. We receive a fee from the Fund for theseservices based on assets under management, calculated dailyand paid monthly.

Mortgage Sale and Administration ServicesThe HSBC Mortgage Fund purchases its mortgages from HSBCBank Canada (“the Bank”) (of which we are a wholly ownedsubsidiary) at an amount that will produce a yield to the HSBCMortgage Fund of not more than 1/4 of 1% less than the interestrate at which the Bank is making a similar commitment at thetime of purchase. The lesser yield of 1/4 of 1% is in considerationof the agreement by the Bank to repurchase the mortgagesunder certain circumstances. This fee amounted to $1,909,676on June 30, 2018 (June 30, 2017 - $2,085,398).

To proceed with the transactions, the Fund relied on the approvalof the Fund’s Independent Review Committee by way ofStanding Instruction. A condition of this approval was that thetransactions were performed in accordance with National PolicyNo. 29 and in accordance with all requirements of various relieforders that have been granted to us by the regulators in relationto these kinds of transactions.

In addition, pursuant to an agreement between us, the Bank andthe Fund, the Fund will pay the Bank a fee for the administrationof the mortgages purchased from the Bank, which will beaccrued and paid daily as an expense to the Fund. During thesix-month period ended June 30, 2018, the Fund paid $780,464 inadministration fees to the Bank (June 30, 2017 - $879,775).


Purchases of Securities Underwritten by a Related PartyDuring the period, the Fund invested in certain securities thatwere underwritten, in whole or in part, by entities that are arelated party to us. To proceed with the transactions, the Fundrelied on the approval of the Fund’s Independent ReviewCommittee by way of Standing Instruction. A condition of thisapproval was that the transactions were performed in accordancewith our policy on Purchases of Securities Underwritten by aRelated Party.


HSBC Mortgage Fund – Investor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.09) (0.18) (0.18) (0.18) (0.17) (0.18)Realized gains (losses) (0.03) (0.02) (0.01) – – 0.01Unrealized gains (losses) (0.01) (0.14) 0.06 (0.02) (0.01) (0.01)

Total increase

(decrease) from

operations (2) $0.02 $(0.05) $0.19 $0.13 $0.14 $0.14




Total annual

distributions (2,3) $(0.07) $(0.11) $(0.14) $(0.15) $(0.15) $(0.15)


period (2) $11.40 $11.46 $11.62 $11.57 $11.59 $11.60

HSBC Mortgage Fund

2


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $142,543 $172,501 $211,105 $219,732 $274,087 $340,029Number of unitsoutstanding (in 000s) (4) 12,502 15,056 18,170 18,997 23,647 29,309Management expenseratio (�MER�) (5) 1.57% 1.56% 1.57% 1.53% 1.50% 1.52%MER before absorbed orwaived fees (5) 1.57% 1.56% 1.57% 1.53% 1.50% 1.52%Trading expense ratio (6) n/a n/a n/a n/a n/a n/aPortfolio turnover rate (7) 14.00% 32.90% 36.57% 40.94% 27.10% 32.89%NAV per unit (4) $11.40 $11.46 $11.62 $11.57 $11.59 $11.60

HSBC Mortgage Fund – Advisor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.08) (0.16) (0.16) (0.16) (0.15) (0.15)Realized gains (losses) (0.03) (0.02) (0.01) – – 0.01Unrealized gains (losses) (0.01) (0.12) 0.05 (0.02) (0.01) (0.01)

Total increase

(decrease) from

operations (2) $0.01 $(0.04) $0.16 $0.11 $0.12 $0.13




Total annual

distributions (2,3) $(0.06) $(0.10) $(0.12) $(0.14) $(0.13) $(0.13)


period (2) $10.02 $10.07 $10.22 $10.18 $10.20 $10.20


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $1,855 $2,297 $2,644 $4,096 $6,300 $8,486Number of units outstanding (in000s) (4) 185 228 259 403 618 832Management expense ratio(�MER�) (5) 1.63% 1.60% 1.59% 1.52% 1.48% 1.51%MER before absorbed orwaived fees (5) 1.63% 1.60% 1.59% 1.52% 1.48% 1.51%Trading expense ratio (6) n/a n/a n/a n/a n/a n/aPortfolio turnover rate (7) 14.00% 32.90% 36.57% 40.94% 27.10% 32.89%NAV per unit (4) $10.02 $10.07 $10.22 $10.18 $10.20 $10.20

HSBC Mortgage Fund – Premium Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.05) (0.10) (0.10) (0.10) (0.10) (0.10)Realized gains (losses) (0.03) (0.02) (0.01) – – 0.01Unrealized gains (losses) (0.01) (0.13) 0.07 (0.02) (0.01) –

Total increase

(decrease) from

operations (2) $0.04 $0.01 $0.24 $0.17 $0.17 $0.20




Total annual

distributions (2,3) $(0.09) $(0.16) $(0.18) $(0.20) $(0.19) $(0.19)


period (2) $10.08 $10.13 $10.28 $10.24 $10.26 $10.28

HSBC Mortgage Fund

3


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Mortgage Fund – Manager Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.06) (0.11) (0.11) (0.10) (0.10) (0.10)Realized gains (losses) (0.03) (0.02) (0.01) – – 0.01Unrealized gains (losses) (0.01) (0.14) 0.05 (0.02) (0.01) –

Total increase

(decrease) from

operations (2) $0.03 $(0.01) $0.21 $0.17 $0.18 $0.20




Total annual

distributions (2,3) $(0.09) $(0.15) $(0.17) $(0.19) $(0.19) $(0.19)


period (2) $10.16 $10.21 $10.35 $10.30 $10.32 $10.33


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $1,783 $2,633 $2,197 $3,492 $3,771 $4,070Number of units outstanding (in000s) (4) 176 258 212 339 366 394Management expense ratio(�MER�) (5) 1.10% 1.08% 1.06% 1.01% 0.97% 0.98%MER before absorbed orwaived fees (5) 1.10% 1.08% 1.06% 1.01% 0.97% 0.98%Trading expense ratio (6) n/a n/a n/a n/a n/a n/aPortfolio turnover rate (7) 14.00% 32.90% 36.57% 40.94% 27.10% 32.89%NAV per unit (4) $10.16 $10.21 $10.35 $10.30 $10.32 $10.33

HSBC Mortgage Fund – Institutional Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.01) (0.01) (0.01) (0.01) – (0.01)Realized gains (losses) (0.03) (0.02) (0.01) – – 0.01Unrealized gains (losses) (0.01) (0.13) 0.06 (0.02) (0.01) –

Total increase

(decrease) from

operations (2) $0.09 $0.11 $0.33 $0.27 $0.29 $0.30




Total annual

distributions (2,3) $(0.14) $(0.26) $(0.28) $(0.30) $(0.29) $(0.29)


period (2) $10.52 $10.57 $10.72 $10.67 $10.68 $10.69

HSBC Mortgage Fund

4


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in000s) (4) $1,700,028 $1,765,690 $1,682,482 $1,721,170 $1,653,831 $1,383,765Number ofunitsoutstanding(in 000s) (4) 161,635 167,067 157,014 161,375 154,790 129,416Managementexpense ratio(�MER�) (5) 0.11% 0.10% 0.10% 0.07% 0.04% 0.05%MER beforeabsorbed orwaivedfees (5) 0.11% 0.10% 0.10% 0.07% 0.04% 0.05%Tradingexpenseratio (6) n/a n/a n/a n/a n/a n/aPortfolioturnoverrate (7) 14.00% 32.90% 36.57% 40.94% 27.10% 32.89%NAV perunit (4) $10.52 $10.57 $10.72 $10.67 $10.68 $10.69





(5) Management expense ratio is based on total expenses (excludingdistributions, commissions and other portfolio transaction costs) forthe stated period and is expressed as an annualized percentage ofdaily average net asset value during the period. In the year a series isestablished, the MER is annualized from the date of inception to theend of the period. The MER may vary from one mutual fund toanother and from one series of units to another. We may have waivedor absorbed certain fees and expenses otherwise payable by theFund. The amount of expenses absorbed or waived is at thediscretion of and can be terminated at any time by us.


(7) The Fund’s portfolio turnover rate indicates how actively the Fund’sportfolio advisor manages its portfolio investments. A portfolioturnover rate of 100% is equivalent to the Fund buying and selling allof the securities in its portfolio once in the course of the period. Thehigher the Fund’s portfolio turnover rate in a period, the greater thetrading costs payable by the Fund in the period, and the greater thechance of an investor receiving taxable capital gains in the period.There is not necessarily a relationship between a high turnover rate

and the performance of the Fund. The rate is calculated based on thelesser of purchases or sales of securities divided by the averageweighted market value of the portfolio securities, excludingshort-term securities.

Management FeesFor the six months ended June 30, 2018, the Fund paid usmanagement fees of $2,680,904. The management fee for eachseries is calculated as a percentage of the daily net asset valuefor that series. The fees are reduced, where required, so thatthese fees do not duplicate fees payable by mutual funds inwhich the Fund invests for the same service.





HSBC Mortgage Fund

5


6.1%4.8%

2.1% 1.6% 1.3% 1.3% 1.2% 1.1% 1.7%

-0.4%

0.1%

-5%

0%

5%

10%



6.3%4.8%

2.1% 1.6% 1.3% 1.3% 1.2% 1.1% 1.6%

-0.4%

0.1%

-5%

0%

5%

10%



5.3%

2.7%2.2% 1.9% 1.9% 1.7% 1.7%

2.2%

0.1% 0.4%0%

5%

10%



5.3%

2.7%2.2% 1.9% 1.8% 1.7% 1.7%

2.2%

0.1% 0.4%0%

5%

10%



7.7%

6.3%

3.6% 3.2% 2.9% 2.8% 2.7% 2.6%3.2%

1.1% 0.9%

0%

5%

10%



Asset MixPercentage

of NAV

Residential Mortgages 68.41%Corporate Bonds 20.17%Government Bonds 3.18%Cash & Equivalents 8.24%Total 100.00%

HSBC Mortgage Fund

6


of NAV

Residential Mortgages 68.41%Canadian Government Real Return Bond, 6.82% 12/01/21 1.14%Province of Ontario, 1.95% 01/27/23 0.68%MCAP RMBS Issuer Corp., 2.17% 04/15/19 0.49%Aviva PLC, 4.50% 05/10/21 0.48%Citigroup Inc., 3.39% 11/18/21 0.47%Canada HousingTrust No. 1, 2.35% 06/15/23 0.46%TMX Group Ltd., 4.46% 10/03/23 0.44%Alimentation Couche-Tard Inc., 3.90% 11/01/22 0.43%Enbridge Inc., 3.94% 06/30/23 0.43%Anheuser-Busch InBev Finance Inc., 2.60% 05/15/24 0.42%National Bank Financial, 1.15%, 07/03/18 0.41%Genworth MI Canada Inc., 5.68% 06/15/20 0.40%Canadian Natural Resources Ltd., 3.31% 02/11/22 0.39%BP Capital Markets PLC, 3.50% 11/09/20 0.38%Bank of Nova Scotia, 1.74% 03/22/19 0.37%Bruce Power LP, 2.84% 06/23/21 0.37%Ford Credit Canada Co., 3.70% 08/02/18 0.37%Sun Life Financial Inc., 2.60% 09/25/25 0.37%Brookfield Asset Management Inc., 5.30% 03/01/21 0.34%Pembina Pipeline Corp., 4.89% 03/29/21 0.34%Saputo Inc., 1.94% 06/13/22 0.34%bcIMC Realty Corp., 2.79% 08/02/18 0.32%Toyota Credit Canada Inc., 2.05% 05/20/20 0.32%Empire Life Insurance Co., 3.38% 12/16/26 0.31%Total ofTop 25 Holdings 78.88%


HSBC Mortgage Fund

7





How to reach us


Vancouver


Toronto












018-

08)D

FS

HSBC Canadian Bond Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC CanadianBond Fund.






Investment PerformanceThe HSBC Canadian Bond Fund (Investor Series) rose 0.09% forthe six-month period ending June 30, 2018, while the benchmarkFTSE TMX Canada Universe Bond Index rose 0.61% over thesame period.

The Fund’s security selection within corporate bonds and positionin inflation-linked bonds contributed positively to performance, asdid the Fund’s higher running yield. This was partially offset by anoverweight position in provincial bonds and small exposures tohigh-yield and emerging-market debt. The Fund’s lower duration,or interest rate risk, had little impact on relative performance.

Since 2017, an improving fundamental backdrop has promptedmany key central banks to signal that global policy rates wouldlikely be moving higher. This shift in policy direction was alsowitnessed in Canada, with the Bank of Canada raising policyrates three times since July 2017, including once in January.Further rate hikes are expected in the second half of 2018.

The increasing evidence of a more universal global expansioncontinues to provide a positive backdrop for equity markets andchallenging outlook for fixed income assets.

The 10-year Government of Canada bond yield, commonly seenas a proxy for the broad market, finished Q2 at 2.17% afterending Q1 at 2.09% and 2017 at 2.05%.

There was little divergence in the performance of the differentsectors of the Canadian bond market in the first half of the year,with Government of Canada bonds, provincial bonds andcorporate bonds returning 0.67%, 0.49% and 0.70%,respectively.

Recent DevelopmentsIn Canada, growth is expected to firm in the second half of 2018and should remain at or slightly above potential (~1.5%-2.0%).The Bank of Canada began 2018 with a rate hike in January and isexpected to further tighten monetary policy in the second half ofthe year.

With longer-term yields expected to rise modestly over the nextyear, we aim to maintain the Fund’s interest rate exposure at orslightly below the benchmark in the near term. Yields at the shortend of the yield curve are now discounting two rate hikes, andwe expect that upward pressure on longer-term yields will lead toa steepening of the yield curve.

We believe the corporate sector remains fundamentally sound,with stable to improving earnings growth and defensivelypositioned balance sheets. We prefer provincial and corporatebonds over Government of Canada bonds, and we anticipateremaining overweight in these sectors.

Potential risks to our central outlook include disappointing globalgrowth, escalating global trade disputes, renewed weakness incommodity prices and heightened geopolitical concerns inthe eurozone.

Effective June 21, 2018, the risk rating of the Fund was loweredto low. It was previously low to medium. The change is the resultof implementing the new investment risk classificationmethodology mandated by National Instrument 81-102, and notdue to any change in the Fund’s investment objectives, strategiesor the way the Fund was managed. On at least an annual basis,we review the risk rating of the Fund and will make adjustmentsto the risk rating of each Fund if required.



1






HSBC Canadian Bond Fund – Investor Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.08) (0.15) (0.16) (0.16) (0.22) (0.15)Realized gains (losses) 0.03 – 0.13 0.03 (0.01) (0.01)Unrealized gains (losses) (0.18) 0.06 (0.27) (0.08) 0.60 (0.49)

Total increase

(decrease) from

operations (2) $(0.01) $0.37 $0.19 $0.30 $1.01 $(0.19)



From dividends (0.04) – – – – –From capital gains – – (0.11) – – –From return of capital – – – – – –

Total annual

distributions (2,3) $(0.16) $(0.31) $(0.45) $(0.36) $(0.37) $(0.31)


period (2) $13.37 $13.51 $13.46 $13.72 $13.79 $13.17


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC Canadian Bond Fund – Advisor Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.10) (0.16) (0.18) (0.18) (0.20) (0.13)Realized gains (losses) 0.02 – 0.10 0.02 – –Unrealized gains (losses) (0.16) 0.04 (0.19) (0.18) 0.35 (0.34)

Total increase

(decrease) from

operations (2) $(0.06) $0.25 $0.12 $0.07 $0.77 $(0.07)




Total annual

distributions (2,3) $(0.13) $(0.25) $(0.36) $(0.29) $(0.30) $(0.25)


period (2) $10.62 $10.77 $10.78 $11.04 $11.16 $10.65


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $172 $276 $287 $332 $229 $205Number of units outstanding (in000s) (4) 16 26 27 30 21 19Management expense ratio(�MER�) (5) 1.81% 1.54% 1.66% 1.64% 1.15% 1.15%MER before absorbed orwaived fees (5) 2.00% 1.75% 1.73% 1.71% 1.15% 1.15%Trading expense ratio (6) n/a n/a n/a n/a n/a n/aPortfolio turnover rate (7) 31.92% 35.58% 34.38% 23.54% 18.01% 30.38%NAV per unit (4) $10.62 $10.77 $10.78 $11.04 $11.16 $10.67

HSBC Canadian Bond Fund – Premium Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.05) (0.09) (0.10) (0.09) (0.18) (0.10)Realized gains (losses) 0.02 – 0.10 0.02 (0.01) –Unrealized gains (losses) (0.16) 0.06 (0.27) (0.08) 0.35 (0.42)

Total increase

(decrease) from

operations (2) $(0.01) $0.35 $0.13 $0.27 $0.85 $(0.15)




Total annual

distributions (2,3) $(0.14) $(0.29) $(0.39) $(0.32) $(0.33) $(0.28)


period (2) $10.89 $11.02 $10.99 $11.19 $11.25 $10.74


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



3

HSBC Canadian Bond Fund – Manager Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.06) (0.09) (0.10) (0.09) (0.14) (0.06)Realized gains (losses) 0.03 – 0.08 0.01 0.01 –Unrealized gains (losses) (0.16) 0.02 (0.26) (0.02) 0.17 (0.50)

Total increase

(decrease) from

operations (2) $(0.03) $0.28 $0.09 $0.28 $0.82 $(0.22)




Total annual

distributions (2,3) $(0.16) $(0.29) $(0.40) $(0.33) $(0.34) $(0.29)


period (2) $9.94 $10.09 $10.10 $10.34 $10.44 $9.97


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Canadian Bond Fund – Institutional Series– Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) – – – – (0.01) (0.01)Realized gains (losses) 0.02 – 0.11 0.02 (0.01) (0.01)Unrealized gains (losses) (0.13) 0.04 (0.22) (0.11) 0.63 (0.38)

Total increase

(decrease) from

operations (2) $0.08 $0.43 $0.30 $0.34 $0.91 $(0.01)




Total annual

distributions (2,3) $(0.20) $(0.39) $(0.51) $(0.43) $(0.44) $(0.38)


period (2) $11.37 $11.50 $11.45 $11.67 $11.74 $11.20


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013





4





The Fund may invest in units of other mutual funds and pooled funds.You should note that in addition to the fees and expenses paid by theFund, these other funds have their own operating expenses to pay.The Fund will effectively bear the operating expenses of the otherfunds in proportion to its holdings in the other funds. However, theFund will not invest in units of other funds if the Fund would berequired to pay any management fees in respect of suchinvestments. In addition, the Fund will not make investments in otherfunds if the Fund would be required to pay any sales or redemptionfees in respect of such investments that duplicate a fee payable byunitholders of the Fund. Further, the Fund will not invest in units ofother funds if any sales or redemption fees are payable in respect ofsuch investments.




The Fund’s management fees were used by us to pay costs formanaging the investment portfolio, providing investment analysisand recommendations, making investment decisions, makingbrokerage arrangements for the purchase and sale of theinvestment portfolio and providing other services. Themanagement fees also funded commission payments and othercompensation to sales representatives and registered dealersand brokers (collectively “distribution costs”), including HSBC

Investment Funds (Canada) Inc., for units of the Fund bought andheld by unitholders. Finally, we used management fees to pay foradditional marketing and distribution services to the Fund.





3.4%

6.4% 6.2%7.5%

4.0%

-1.3%

7.5%

2.0% 1.4%2.7%

0.1%

-5%

0%

5%

10%



5


3.4%

6.4% 6.1%7.5%

4.0%

-1.1%

7.4%

1.5%0.8%

2.3%

-0.3%

-5%

0%

5%

10%



6.7% 6.4%7.7%

4.3%

-1.0%

7.7%

2.3%1.6%

3.0%

0.2%

-5%

0%

5%

10%



4.0%

6.9% 6.7%8.1%

4.6%

-0.7%

8.0%

2.2%1.5%

2.9%

0.1%

-5%

0%

5%

10%



4.5%

7.5% 7.3%8.6%

5.2%

-0.2%

8.6%

3.2%2.5%

3.8%

0.6%

-5%

0%

5%

10%


Summary of Investment Portfolio


6

As at June 30, 2018

Asset MixPercentage

of NAV

Corporate Bonds 47.62%Government Bonds 42.42%Mutual Funds 9.51%Cash & Equivalents 0.45%Total 100.00%


of NAV

HSBC Mortgage Fund - Institutional Series 7.59%Government of Canada, 3.83% 12/01/36 4.34%Province of Ontario, 2.90% 06/02/49 4.17%Government of Canada, 4.00% 06/01/41 2.87%Province of Ontario, 5.60% 06/02/35 2.58%Province of Ontario, 2.85% 06/02/23 2.30%Province of Alberta, 3.50% 06/01/31 2.18%Province of British Columbia, 2.80% 06/18/48 2.18%Province of Saskatchewan, 5.00% 03/05/37 2.11%HSBC Emerging Markets Debt Fund - Institutional Series 1.96%Province of Ontario, 1.35% 03/08/22 1.87%Province of British Columbia, 5.70% 06/18/29 1.74%Province of New Brunswick, 3.55% 06/03/43 1.73%TransCanadaTrust, 4.65% 05/18/77 1.37%Province of Manitoba, 4.05% 09/05/45 1.30%BP Capital Markets PLC, 3.50% 11/09/20 1.26%Aviva PLC, 4.50% 05/10/21 1.24%City ofToronto, 3.80% 12/13/42 1.22%Commonwealth Bank of Australia, 5.15% 04/09/20 1.21%Suncor Energy Inc., 3.10% 11/26/21 1.18%BHP Billiton Finance Ltd., 3.23% 05/15/23 1.17%Brookfield Asset Management Inc., 5.30% 03/01/21 1.13%Goldman Sachs Group Inc., 3.55% 02/12/21 1.13%AT&T Inc., 3.83% 11/25/20 1.12%Peel Regional Municipality, 5.10% 06/29/40 1.12%Total ofTop 25 Holdings 52.07%


The Fund invests in other mutual funds, and the prospectus and other information about the underlying funds are available on SEDARat www.sedar.com.


7





How to reach us


Vancouver


Toronto












018-

08)D

FS

HSBC Global Corporate Bond Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC GlobalCorporate Bond Fund.

We are the manager, trustee and primary investment advisor ofthe Fund. We have entered into a sub-advisory agreement withHSBC Global Asset Management (USA) Inc. and HSBC GlobalAsset Management (France), under which HSBC Global AssetManagement (USA) Inc. and HSBC Global Asset Management(France) provide investment advice and portfolio managementservices to the Fund. For an explanation of the relationshipbetween us and the sub-advisors, see the section Selection ofSub-Advisors in the Fund’s Simplified Prospectus.




Results of OperationsAs of June 30, 2018, the Fund’s net assets decreased by 0.8% to$48.1 million from $48.5 million at the end of 2017. Of thisdecrease, a $1.2 million loss was attributable to investmentperformance, mitigated by a $0.8 million net contribution to theFund. All figures are stated in US dollars.

Investment PerformanceThe HSBC Global Corporate Bond Fund (Investor Series) lost2.77% for the six-month period ending June 30, 2018, while thebenchmark Bloomberg Barclays Global Aggregate CorporatesAWS Hedged US Dollar Index lost 1.37% over the same period.

The Fund’s overweight position in US-dollar bonds andunderweight position in euro bonds contributed negatively toperformance, as euro bonds outperformed US bonds over theperiod. Issue selection was also a drag on performance, with allregions underperforming their respective benchmarks.

Global credit spreads widened over the first six months of 2018,with the tightening in January quickly reversing with the return ofvolatility in February. Over the period, investors have had toreconcile still solid global growth and a strong corporate earnings

picture with geopolitical risks, trade tensions and country-specificissues in Europe and emerging markets. The strength of the USdollar has also put pressure on commodity markets andemerging market assets.

The US Treasury curve continued to flatten over the period withtwo-, three- and five-year yields rising 65, 65 and 53 basis points(bps) to end the period at 2.53%, 2.62% and 2.74% respectively.Ten-year and 30-year yields rose 45 and 25 bps to end the periodat 2.86% and 2.99% respectively. The yield on the 10-yearGerman bund decreased 13 bps to 0.30% over the period afterhitting a high of 0.77% in early February.

Recent DevelopmentsOver the period, the Fund held overweight positions in US-dollarbonds (which were more attractive from a valuationperspective) and underweight positions in sterling and eurobonds. In credit quality, the Fund is in line with its referenceindex. Within this rating, the Fund is overweight in AAA- andBBB-rated bonds and underweight in A-rated bonds.

By sector, the Fund’s largest overweight position is in financialsand its largest underweight position is in consumer non-cyclicals.The Fund’s energy exposure is slightly overweight compared tothe benchmark, and within this sector the Fund is overweight inpipelines and refining and underweight in exploration andproduction and services. The Fund continues to be underweightin communications, where mergers and acquisition activity andstretched valuations make the sector relatively less attractive.TheFund is also underweight in utilities, largely on valuation grounds.





1


We have entered into a sub-advisory agreement with HSBCGlobal Asset Management (USA) Inc. (an affiliate) and HSBCGlobal Asset Management (France) (an affiliate), under whichHSBC Global Asset Management (USA) Inc. and HSBC GlobalAsset Management (France) provide investment advice andportfolio management services to the Fund. We pay HSBC GlobalAsset Management (USA) Inc. and HSBC Global AssetManagement (France) an investment advisory fee from the Fundbased on assets under management, calculated daily and paidquarterly. For more information on our ability to hire sub-advisors,see the section Organization and Management of the HSBCMutual Funds in the Fund’s Simplified Prospectus.



Financial HighlightsThe following tables show selected key financial informationabout the Fund and are intended to help you understand theFund’s financial performance for the six-month period endedJune 30, 2018, and for the last three years ended December 31,as applicable. In the year a fund is established, “period”represents the period from inception to December 31 or June 30of that fiscal year, as applicable. This information is derived fromthe Fund’s unaudited semi-annual financial statements and the

audited annual financial statements. The information in thefollowing tables is based on prescribed regulations, and as aresult, is not expected to add due to the increase/decrease in netassets from operations being based on average units outstandingduring the period and all other numbers being based on actualunits outstanding at the relevant point in time.


HSBC Global Corporate Bond Fund – InvestorSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Net assets per unit, beginning of

period (2) $10.45 $10.16 $9.86 $10.00

Increase (decrease) from operations:

Total revenue 0.15 0.29 0.28 0.06Total expenses (excluding distributions) (0.09) (0.19) (0.18) (0.04)Realized gains (losses) 0.08 (0.01) 0.05 0.08Unrealized gains (losses) (0.41) 0.29 0.01 (0.17)

Total increase (decrease) from

operations (2) $(0.27) $0.38 $0.16 $(0.07)


From income (excluding dividends) – (0.09) (0.09) (0.01)From dividends (0.06) – – –From capital gains – – – (0.07)From return of capital – – – –

Total annual distributions (2,3) $(0.06) $(0.09) $(0.09) $(0.08)

Net assets per unit, end of period (2) $10.11 $10.45 $10.16 $9.86


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

NAV (in 000s) (4) $4,461 $3,961 $3,316 $529Number of units outstanding (in 000s) (4) 441 379 327 54Management expense ratio (�MER�) (5) 1.83% 1.88% 1.80% 2.02%MER before absorbed or waived fees (5) 1.85% 1.90% 1.85% 2.35%Trading expense ratio (6) n/a n/a n/a n/aPortfolio turnover rate (7) 44.04% 104.11% 81.94% 40.29%NAV per unit (4) $10.11 $10.45 $10.16 $9.86


2

HSBC Global Corporate Bond Fund – AdvisorSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015


period (2) $10.73 $10.30 $9.84 $10.00


Total revenue – (0.01) (0.01) –Total expenses (excluding distributions) – – – –Realized gains (losses) (0.02) (0.09) – 0.05Unrealized gains (losses) 0.02 0.10 1.00 0.01


operations (2) $– $– $0.99 $0.06






June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

NAV (in 000s) (4) $– $–* $–* $–*

Number of units outstanding (in 000s) (4) – –* –* –*

Management expense ratio (�MER�) (5) – 0.00% 0.00% 0.00%MER before absorbed or waived fees (5) – 0.00% 0.00% 0.00%Trading expense ratio (6) n/a n/a n/a n/aPortfolio turnover rate (7) 44.04% 104.11% 81.94% 40.29%NAV per unit (4) $10.80 $10.73 $10.30 $9.84

* Amount less than one thousand.

HSBC Global Corporate Bond Fund – PremiumSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015


period (2) $10.45 $10.16 $9.86 $10.00


Total revenue 0.15 0.29 0.28 0.06Total expenses (excluding distributions) (0.08) (0.16) (0.15) (0.04)Realized gains (losses) 0.08 0.01 0.04 0.09Unrealized gains (losses) (0.43) 0.29 (0.07) (0.17)


operations (2) $(0.28) $0.43 $0.10 $(0.06)






June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

NAV (in 000s) (4) $21,922 $23,063 $14,336 $1,713Number of units outstanding (in 000s) (4) 2,169 2,206 1,411 174Management expense ratio (�MER�) (5) 1.48% 1.53% 1.46% 1.84%MER before absorbed or waived fees (5) 1.49% 1.54% 1.50% 1.84%Trading expense ratio (6) n/a n/a n/a n/aPortfolio turnover rate (7) 44.04% 104.11% 81.94% 40.29%NAV per unit (4) $10.11 $10.45 $10.16 $9.86


3

HSBC Global Corporate Bond Fund – ManagerSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015


period (2) $10.62 $10.24 $9.82 $10.00


Total revenue – (0.01) (0.01) –Total expenses (excluding distributions) – – – –Realized gains (losses) (0.02) (0.09) – 0.05Unrealized gains (losses) 0.02 0.10 0.99 0.02


operations (2) $– $– $0.98 $0.07






June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

NAV (in 000s) (4) $– $–* $–* $–*


Management expense ratio (�MER�) (5) – 0.00% 0.00% 0.00%MER before absorbed or waived fees (5) – 0.00% 0.00% 0.00%Trading expense ratio (6) n/a n/a n/a n/aPortfolio turnover rate (7) 44.04% 104.11% 81.94% 40.29%NAV per unit (4) $10.80 $10.62 $10.24 $9.82


HSBC Global Corporate Bond Fund – InstitutionalSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015


period (2) $10.42 $10.13 $9.84 $10.00


Total revenue 0.15 0.28 0.28 0.05Total expenses (excluding distributions) (0.01) (0.02) (0.02) (0.01)Realized gains (losses) 0.08 (0.03) 0.04 0.07Unrealized gains (losses) (0.42) 0.32 0.26 (0.16)


operations (2) $(0.20) $0.55 $0.56 $(0.05)






June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

NAV (in 000s) (4) $21,672 $21,427 $28,376 $24,663Number of units outstanding (in 000s) (4) 2,152 2,057 2,802 2,507Management expense ratio (�MER�) (5) 0.21% 0.23% 0.19% 0.47%MER before absorbed or waived fees (5) 0.21% 0.23% 0.22% 0.47%Trading expense ratio (6) n/a n/a n/a n/aPortfolio turnover rate (7) 44.04% 104.11% 81.94% 40.29%NAV per unit (4) $10.07 $10.42 $10.13 $9.84

(1) This information is derived from the Fund’s unaudited semi-annualfinancial report and audited annual financial statements. All balancesare stated in IFRS. Under IFRS, the net assets per unit presented inthe financial statements is the same as the net asset value calculatedfor fund pricing purposes.




(5) Management expense ratio is based on total expenses (excludingdistributions, commissions and other portfolio transaction costs) forthe stated period and is expressed as an annualized percentage ofdaily average net asset value during the period. In the year a series isestablished, the MER is annualized from the date of inception to theend of the period. The MER may vary from one mutual fund toanother and from one series of units to another. We may have waived


4

or absorbed certain fees and expenses otherwise payable by theFund. The amount of expenses absorbed or waived is at thediscretion of and can be terminated at any time by us.









3.9% 3.8%

-2.8%

-5%

0%

5%

Dec. 31 Dec. 31 Jun. 302016 2017 2018


5.8%5.1%

-2.1%

-5%

0%

5%

10%

Dec. 31 Dec. 31 Jun. 302016 2017 2018


4.2% 4.1%

-2.6%-5%

0%

5%

10%

Dec. 31 Dec. 31 Jun. 302016 2017 2018


5


5.8%5.1%

-2.1%

-5%

0%

5%

10%

Dec. 31 Dec. 31 Jun. 302016 2017 2018


5.6% 5.5%

-2.0%

-5%

0%

5%

10%

Dec. 31 Dec. 31 Jun. 302016 2017 2018


Asset MixPercentage

of NAV

Corporate Bonds 93.43%Government Bonds 2.40%Cash & Equivalents 4.17%Total 100.00%

>

Geographic MixPercentage

of NAV

United States of America 42.31%Netherlands 11.75%France 10.50%United Kingdom 8.55%Germany 3.22%Australia 2.94%Spain 1.76%Cayman Islands 1.63%


of NAV

Canada 1.58%Sweden 1.57%Luxembourg 1.49%Italy 1.45%Ireland 1.35%Switzerland 1.03%Belgium 0.97%British Virgin Islands 0.73%Jersey 0.68%New Zealand 0.48%Hong Kong 0.42%Mexico 0.36%Austria 0.27%Norway 0.27%Denmark 0.26%Portugal 0.26%Cash & Equivalents 4.17%Total 100.00%


of NAV

Cooperatieve Rabobank UA, 2.25% 03/23/22 2.11%Barclays PLC, 3.25% 02/12/27 2.01%LafargeHolcim Sterling Finance (Netherlands) BV, 3.00%05/12/32 1.30%Electricite de France SA, 6.00% 12/29/49 1.12%Omega Healthcare Investors Inc., 4.38% 08/01/23 1.08%United Kingdom Gilt, 4.25% 12/07/27 1.04%Microsoft Corp., 4.20% 11/03/35 0.88%Sinopec Group Overseas Development (2016) Ltd., 1.75%09/29/19 0.73%AerCap Ireland Capital DAC / AerCap Global AviationTrust, 3.50%01/15/25 0.72%Kinder Morgan Inc., 3.15% 01/15/23 0.71%Macquarie Group Ltd., 3.19% 11/28/23 0.60%Air Lease Corp., 3.88% 07/03/23 0.59%Bank of America Corp., 3.50% 05/17/22 0.59%Wells Fargo Bank NA, 1.97% 01/15/20 0.59%Bank of America Corp., 3.37% 01/23/26 0.58%JPMorgan Chase & Co., 3.51% 01/23/29 0.58%Svenska Handelsbanken AB, 3.35% 05/24/21 0.56%Vulcan Materials Co., 2.57% 03/01/21 0.55%BNP Paribas SA, 4.38% 03/01/33 0.54%Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, 5.50%12/31/49 0.52%EnLink Midstream Partners LP, 5.45% 06/01/47 0.52%Macquarie Bank Ltd., 2.85% 07/29/2020 0.52%Orange SA, 4.00% 10/29/49 0.52%Regions Bank/Birmingham AL, 2.13% 04/01/21 0.52%Total SA, 3.88% 12/31/49 0.52%Total ofTop 25 Holdings 20.00%



6





How to reach us


Vancouver


Toronto











018-

08)D

FS

HSBC Emerging MarketsDebt Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC EmergingMarkets Debt Fund.

We are the manager, trustee and primary investment advisor ofthe Fund. We have entered into a sub-advisory agreement withHSBC Global Asset Management (USA) Inc., under which HSBCGlobal Asset Management (USA) Inc. provides investment adviceand portfolio management services to the Fund. For anexplanation of the relationship between us and the sub-advisor,see the section Selection of Sub-Advisors in the Fund’s SimplifiedProspectus.




Results of OperationsAs of June 30, 2018, the Fund’s net assets increased by 6.9% to$495.5 million from $463.7 million at the end of 2017. Of thisincrease, $49.6 million was attributable to net contributions tothe Fund, partially offset by a $17.8 million loss attributable toinvestment performance.

Investment PerformanceThe HSBC Emerging Markets Debt Fund (Investor Series) fell4.20% for the six-month period ending June 30, 2018, while thebenchmark fell 2.92% over the same period. The benchmark is aweighted composite consisting of the JP Morgan EmergingMarkets Bond Index-Global (C$) (50%), JP Morgan GovernmentBond Index-Emerging Markets Global Diversified Unhedged (C$)(25%) and JP Morgan Emerging Local Markets Index Plus (C$)(25%).

The Fund’s underperformance in hard currency stemmed fromunderweight exposures to China, Poland and Lithuania andoverweight exposures to Ukraine and Argentina, where bondprices have struggled due to the negative technical environmentand May’s currency crisis.

These losses were offset by outperformance from the securityselection of shorter-dated bonds in Mexico and Brazil andoverweight positions to growth stories in the Caribbean,including Costa Rica and the Dominican Republic.

In local debt, the largest detractors were an overweightpositioning in Turkish local rates and currency, as heightenedinflationary pressures coupled with a deterioration in the currentaccount raised investor concerns and risk assets sold off. Anoverweight position in Brazil and South Africa also contributed tounderperformance. These losses were partially offset by tacticalexposures to the Mexican peso and the Chilean peso.Underweight positions in euro-linked and Asian-linked currenciesalso benefited the portfolio as softer growth data saw somedepreciation against the US dollar.

Rising US Treasury yields, US dollar strength and heightenedglobal trade tensions resulted in negative risk sentiment towardsthe asset class over the period.

Recent DevelopmentsWith spread levels widening throughout the year, the FundManager added risk exposure at more attractive valuations byparticipating in a number of new issuances in high-yield countries(including Egypt, Argentina and Sri Lanka) and trimmingexposures to more expensive investment-grade countries (suchas Hungary, Chile and China). The Fund moved from a smallduration underweight position of -0.16 years to +0.08 years and aspread duration from -0.26 years to flat versus the benchmark.

In local rates, the Fund Manager reduced duration positioningfrom -0.17 years underweight to the benchmark to -0.29 years,increasing underweight exposures in Thailand and Peru andreducing overweight exposures to Colombia and Mexico. TheFund Manager incrementally added to the net long emergingmarket local currency exposure as the US dollar hasstrengthened, moving from a 2% net short position to a 2% longemerging markets position by adding higher-yielding,higher-beta currencies.



HSBC Emerging Markets Debt Fund

1


We have entered into a sub-advisory agreement with HSBCGlobal Asset Management (USA) Inc. (an affiliate), under whichHSBC Global Asset Management (USA) Inc. provides investmentadvice and portfolio management services to the Fund. We payHSBC Global Asset Management (USA) Inc. an investmentadvisory fee from the Fund based on assets under management,calculated daily and paid quarterly. For more information on ourability to hire sub-advisors, see the section Organization andManagement of the HSBC Mutual Funds in the Fund’sSimplified Prospectus.



Financial HighlightsThe following tables show selected key financial informationabout the Fund and are intended to help you understand theFund’s financial performance for the six-month period endedJune 30, 2018, and for the last five years ended December 31, asapplicable. In the year a fund is established, “period” representsthe period from inception to December 31 or June 30 of thatfiscal year, as applicable. This information is derived from theFund’s unaudited semi-annual financial statements and theaudited annual financial statements. The information in thefollowing tables is based on prescribed regulations, and as a

result, is not expected to add due to the increase/decrease in netassets from operations being based on average units outstandingduring the period and all other numbers being based on actualunits outstanding at the relevant point in time.

HSBC Emerging Markets Debt Fund – InvestorSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.09) (0.18) (0.18) (0.18) (0.19) (0.18)Realized gains (losses) (0.12) 0.32 0.16 (0.43) 0.09 (0.23)Unrealized gains (losses) (0.50) (0.02) (0.09) 0.38 0.09 (0.55)

Total increase

(decrease) from

operations (2) $(0.42) $0.57 $0.37 $0.29 $0.45 $(0.55)



From dividends (0.19) – – – – –From capital gains – – – – – –From return of capital – – – – – –

Total annual

distributions (2,3) $(0.21) $(0.27) $(0.29) $(0.33) $(0.27) $(0.21)


period (2) $9.74 $10.38 $10.12 $10.05 $10.16 $10.09


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $12,529 $14,598 $17,924 $21,126 $29,038 $44,786Number of units outstanding (in000s) (4) 1,286 1,406 1,771 2,102 2,858 4,430Management expense ratio(�MER�) (5) 1.78% 1.78% 1.78% 1.76% 1.80% 1.77%MER before absorbed orwaived fees (5) 1.78% 1.78% 1.78% 1.76% 1.80% 1.77%Trading expense ratio (6) n/a n/a n/a n/a n/a n/aPortfolio turnover rate (7) 45.44% 51.34% 79.90% 61.87% 75.75% 62.80%NAV per unit (4) $9.74 $10.38 $10.12 $10.05 $10.16 $10.11


2

HSBC Emerging Markets Debt Fund – AdvisorSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.47) $0.45 $0.27 $0.23 $0.51 $(0.61)




Total annual

distributions (2,3) $(0.21) $(0.26) $(0.29) $(0.33) $(0.27) $(0.21)


period (2) $9.53 $10.19 $10.00 $9.98 $10.11 $10.04


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Emerging Markets Debt Fund – PremiumSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.41) $0.56 $0.44 $0.37 $0.63 $(0.62)




Total annual

distributions (2,3) $(0.23) $(0.30) $(0.32) $(0.37) $(0.31) $(0.24)


period (2) $9.70 $10.33 $10.07 $10.00 $10.11 $10.04


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $5,864 $6,327 $6,790 $8,741 $13,972 $32,669Number of units outstanding (in000s) (4) 605 612 674 874 1,382 3,247Management expense ratio(�MER�) (5) 1.42% 1.43% 1.43% 1.39% 1.44% 1.40%MER before absorbed orwaived fees (5) 1.42% 1.43% 1.43% 1.39% 1.44% 1.40%Trading expense ratio (6) n/a n/a n/a n/a n/a n/aPortfolio turnover rate (7) 45.44% 51.34% 79.90% 61.87% 75.75% 62.80%NAV per unit (4) $9.70 $10.33 $10.07 $10.00 $10.11 $10.06


3

HSBC Emerging Markets Debt Fund – ManagerSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.11) (0.18) (0.19) (0.37) (0.12) (0.12)Realized gains (losses) (0.11) 0.29 0.14 (0.44) 0.14 (0.21)Unrealized gains (losses) (0.50) (0.03) (0.07) 0.32 (0.10) (0.45)

Total increase

(decrease) from

operations (2) $(0.44) $0.51 $0.35 $0.01 $0.38 $(0.37)




Total annual

distributions (2,3) $(0.23) $(0.32) $(0.34) $(0.38) $(0.34) $(0.27)


period (2) $9.31 $9.99 $9.79 $9.79 $10.16 $10.08


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $3 $3 $3 $3 $3 $3Number of units outstanding (in000s) (4) – –* –* –* –* –*

Management expense ratio(�MER�) (5) 2.35% 1.82% 1.88% 3.72% 1.15% 1.12%MER before absorbed orwaived fees (5) 29.14% 28.67% 27.06% 20.04% 1.15% 1.12%Trading expense ratio (6) n/a n/a n/a n/a n/a n/aPortfolio turnover rate (7) 45.44% 51.34% 79.90% 61.87% 75.75% 62.80%NAV per unit (4) $9.31 $9.99 $9.79 $9.79 $10.16 $10.10


HSBC Emerging Markets Debt Fund –Institutional Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.01) (0.01) (0.01) (0.01) (0.02) (0.02)Realized gains (losses) (0.12) 0.29 0.14 (0.49) 0.15 (0.25)Unrealized gains (losses) (0.54) (0.05) (0.08) 0.30 (0.14) (0.48)

Total increase

(decrease) from

operations (2) $(0.37) $0.67 $0.53 $0.32 $0.45 $(0.33)




Total annual

distributions (2,3) $(0.30) $(0.44) $(0.46) $(0.50) $(0.45) $(0.37)


period (2) $9.76 $10.40 $10.15 $10.08 $10.19 $10.13


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013





4













12.7%

-4.1%

3.2% 2.1%3.6%

5.3%

-4.2%

-10%

-5%

0%

5%

10%

15%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302012 2013 2014 2015 2016 2017 2018


12.7%

-4.1%

3.2%1.9% 3.0%

4.6%

-4.6%

-10%

-5%

0%

5%

10%

15%



5


13.2%

-3.7%

3.5% 2.5%3.9%

5.6%

-4.0%

-10%

-5%

0%

5%

10%

15%

20%



14.0%

-3.5%

3.8%

0.1%3.5%

5.3%

-4.5%

-10%

-5%

0%

5%

10%

15%

20%



14.7%

-2.5%

4.9% 3.8%5.3%

7.0%

-3.4%

-10%

-5%

0%

5%

10%

15%

20%



Sector MixPercentage

of NAV

Government Bonds 58.70%Energy 8.49%Financials 2.79%Materials 2.02%Utilities 1.61%Industrials 0.20%Telecommunication Services 0.19%Consumer Discretionary 0.14%Healthcare 0.10%Consumer Staples 0.08%Cash & Equivalents 25.68%Total 100.00%

>


of NAV

Indonesia 7.84%Mexico 7.18%Turkey 7.13%Brazil 5.82%Colombia 4.54%Russia 3.65%Malaysia 2.99%Argentina 2.91%South Africa 2.83%Chile 2.02%Sri Lanka 1.58%Poland 1.44%Hungary 1.39%Egypt 1.27%China 1.14%Philippines 1.12%Luxembourg 1.07%British Virgin Islands 1.02%Romania 0.99%United States of America 0.98%Oman 0.93%Ukraine 0.92%Gabon 0.76%India 0.74%Peru 0.74%Dominican Republic 0.69%Morocco 0.68%Ecuador 0.66%Ghana 0.59%Serbia 0.58%Senegal 0.55%Mongolia 0.52%Kazakhstan 0.49%Jamaica 0.45%Venezuela 0.44%Panama 0.41%Netherlands 0.40%


6


of NAV

Thailand 0.38%Lebanon 0.37%Nigeria 0.36%Kenya 0.36%Croatia 0.35%Costa Rica 0.29%Ireland 0.28%Iraq 0.27%Qatar 0.27%Uruguay 0.26%El Salvador 0.23%Cayman Islands 0.22%Zambia 0.22%United Arab Emirates 0.19%United Kingdom 0.18%Ivory Coast 0.17%Saudi Arabia 0.16%Paraguay 0.11%Israel 0.10%Vietnam 0.06%Bahamas 0.03%Cash & Equivalents 25.68%Total 100.00%


of NAV

United StatesTreasury Bill, 1.90% 09/20/18 13.20%United StatesTreasury Bill, 1.79% 07/19/18 3.33%ColombianTES, 11.00% 07/24/20 2.51%United StatesTreasury Bill, 1.81% 08/02/18 2.38%Brazil Letras doTesouro Nacional, 0.00% 01/01/19 2.32%Malaysia Government Bond, 3.58% 09/28/18 2.25%Brazil Notas doTesouro Nacional, Serie F, 0.00% 01/01/21 1.30%South Africa Government Bond, 7.00% 02/28/31 1.14%Argentine Republic Government International Bond, 7.63%04/22/46 1.06%Turkey Government Bond, 10.70% 02/17/21 1.06%Indonesia Government International Bond, 3.38% 04/15/23 1.03%Petroleos Mexicanos, 6.88% 08/04/26 0.92%Mexican Bonos, 5.75% 03/05/26 0.82%Poland Government Bond, 2.50% 07/25/26 0.80%Argentine Republic Government International Bond, 6.88%01/26/27 0.73%Colombia Government International Bond, 3.88% 04/25/27 0.72%Turkey Government Bond, 9.50% 01/12/22 0.69%Bonos de laTesoreria de la Republica en pesos, 4.50% 03/01/26 0.68%IndonesiaTreasury Bond, 5.63% 05/15/23 0.68%IndonesiaTreasury Bond, 6.13% 05/15/28 0.67%Republic of South Africa, 10.50% 12/21/26 0.66%Turkey Government Bond, 8.00% 03/12/25 0.66%Turkey Government International Bond, 5.75% 05/11/47 0.66%Poland Government Bond, 5.75% 09/23/22 0.64%Indonesia Government International Bond, 5.38% 10/17/23 0.61%Total ofTop 25 Holdings 41.52%



7





How to reach us


Vancouver


Toronto








Sources: HSBC Global Asset Management (Canada) Limited, J.P. Morgan, Bloomberg, Bank of Canada.



018-

08)D

FS

HSBC Monthly Income Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC MonthlyIncome Fund.






Investment PerformanceThe HSBC Monthly Income Fund (Investor Series) rose 0.37% forthe six-month period ending June 30, 2018, while the benchmarkrose 1.11% over the same period. The benchmark is a weightedcomposite consisting of the FTSE TMX Canada Short-Term BondIndex (15%), FTSE TMX Canada Mid-Term Bond Index (15%),HSBC Mortgage Fund Benchmark (30%), S&P/TSX CappedComposite Index (35%) and S&P/TSX Preferred Share Index(5%).

The Fund’s overweight position in common equities was apositive for performance in the first half of the year, as wereoverweight positions in corporate bonds andresidential mortgages.

The increasing evidence of a more universal global expansioncontinues to provide a positive backdrop for equity markets and achallenging outlook for fixed income assets. The 10-yearGovernment of Canada bond yield, commonly looked at as aproxy for the broad market, finished Q2 at 2.17% after ending Q1at 2.09% and 2017 at 2.05%.

There was little divergence in the performance of the differentsectors of the Canadian bond market in the first half of the year,

with Government of Canada, provincial and corporate bondsreturning 0.67%, 0.49% and 0.70%, respectively.

Domestic equities had a strong second quarter, with theS&P/TSX Composite Index up 5.9% following its loss of 4.5% inthe first quarter of the year. Preferred shares were up 0.70% overthe first half of the year, underperforming the broader Canadianequity market. Residential mortgages returned ~0.90% in thefirst six months of 2018, outperforming the broader short-termbond market.

Recent DevelopmentsAlthough global growth lost a little momentum in the first half ofthe year, recession risk is low and corporate fundamentals arestrong. However, we remain mindful that the solid growth andlow inflation that markets have enjoyed over the last two yearscannot last forever.

In Canada, growth is expected to firm in the back half of 2018 andshould remain at or slightly above potential (~1.5%-2.0%). TheBank of Canada began 2018 with a rate hike in January and isexpected to further tighten monetary policy in the second half ofthe year.

With longer-term yields expected to rise modestly over the nextyear, we aim to maintain the Fund’s interest rate exposure nearits current level. Looking ahead, we see better return prospectsfor corporate assets (both equity and debt) based on strongfundamentals and reasonable valuations.

The Fund has a small overweight position in equities relative tofixed income. Positive earnings growth should support theCanadian equity market following the weakness experienced inrecent years. Equity investments will focus onhigh-dividend-paying preferred shares and common equities,while fixed income investments will focus on residentialmortgages and corporate bonds.

Potential risks to our central outlook include disappointing globalgrowth, escalating global trade disputes, renewed weakness incommodity prices and heightened geopolitical concerns in theeurozone.


Related PartyTransactionsWe, on behalf of the Fund, in our role as fund manager, may, fromtime to time, enter into transactions or arrangements with orinvolving other members of the HSBC Group or other people orcompanies related or connected to us or the Fund. To proceed


1

with the transactions, the Fund relies on the positiverecommendation of the Fund’s Independent Review Committee. Acondition of this positive recommendation is that the transactionsare performed in accordance with our policy on Related PartyTransactions. For more general information on persons related tothe Fund and the types of potential transactions, see the Fund’sSimplified Prospectus.







HSBC Monthly Income Fund – Investor Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.07) (0.15) (0.14) (0.14) (0.14) (0.14)Realized gains (losses) 0.10 0.15 0.19 0.02 (0.02) (0.01)Unrealized gains (losses) (0.15) 0.15 0.57 (0.46) 0.41 0.38

Total increase

(decrease) from

operations (2) $0.04 $0.46 $0.94 $(0.24) $0.59 $0.55



From dividends – – (0.16) (0.11) (0.10) (0.10)From capital gains – – – – – –From return of capital – (0.06) (0.04) (0.04) (0.04) (0.05)

Total annual

distributions (2,3) $(0.12) $(0.24) $(0.24) $(0.24) $(0.24) $(0.24)


period (2) $10.56 $10.65 $10.42 $9.71 $10.20 $9.84


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $354,555 $368,703 $372,673 $372,980 $429,542 $397,061Number of unitsoutstanding (in 000s) (4) 33,566 34,635 35,774 38,419 42,122 40,303Management expenseratio (�MER�) (5) 1.44% 1.43% 1.43% 1.42% 1.41% 1.43%MER before absorbed orwaived fees (5) 1.44% 1.43% 1.43% 1.42% 1.41% 1.43%Trading expense ratio (6) 0.01% 0.01% 0.02% 0.01% 0.01% 0.01%Portfolio turnover rate (7) 24.47% 19.49% 25.63% 12.83% 13.25% 19.17%NAV per unit (4) $10.56 $10.65 $10.42 $9.71 $10.20 $9.85


2

HSBC Monthly Income Fund – Advisor Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.09) (0.19) (0.18) (0.19) (0.14) (0.14)Realized gains (losses) 0.09 0.13 0.19 0.01 – (0.02)Unrealized gains (losses) (0.31) 0.19 0.57 (0.46) 0.46 0.40

Total increase

(decrease) from

operations (2) $(0.16) $0.43 $0.90 $(0.30) $0.65 $0.56




Total annual

distributions (2,3) $(0.12) $(0.24) $(0.24) $(0.24) $(0.24) $(0.24)


period (2) $10.27 $10.39 $10.22 $9.56 $10.10 $9.75


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $25 $46 $96 $63 $67 $232Number of units outstanding (in000s) (4) 2 4 9 7 7 24Management expense ratio(�MER�) (5) 1.88% 1.85% 1.82% 1.93% 1.43% 1.45%MER before absorbed orwaived fees (5) 2.50% 2.70% 3.15% 3.07% 1.43% 1.45%Trading expense ratio (6) 0.01% 0.01% 0.02% 0.01% 0.01% 0.01%Portfolio turnover rate (7) 24.47% 19.49% 25.63% 12.83% 13.25% 19.17%NAV per unit (4) $10.27 $10.39 $10.22 $9.56 $10.10 $9.76

HSBC Monthly Income Fund – Premium Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.05 $0.54 $1.04 $(0.20) $0.65 $0.63




Total annual

distributions (2,3) $(0.15) $(0.30) $(0.30) $(0.30) $(0.30) $(0.30)


period (2) $10.93 $11.02 $10.77 $10.03 $10.53 $10.16


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



3

HSBC Monthly Income Fund – Manager Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.07 $0.49 $1.01 $(0.15) $0.68 $0.59




Total annual

distributions (2,3) $(0.15) $(0.31) $(0.31) $(0.30) $(0.31) $(0.31)


period (2) $11.01 $11.11 $10.90 $10.19 $10.76 $10.38


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Monthly Income Fund – InstitutionalSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.02) (0.04) (0.02) (0.03) – –Realized gains (losses) 0.10 0.13 0.16 (0.04) (0.04) (0.01)Unrealized gains (losses) (0.41) 0.18 0.44 (0.34) 0.46 (0.12)

Total increase

(decrease) from

operations (2) $(0.17) $0.54 $0.86 $(0.06) $0.71 $0.18




Total annual

distributions (2,3) $(0.17) $(0.33) $(0.33) $(0.33) $(0.33) $(0.33)


period (2) $9.18 $9.27 $9.21 $8.60 $9.13 $8.81


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $268 $115 $491 $758 $111 $1,683Number of units outstanding (in000s) (4) 29 12 53 88 12 191Management expense ratio(�MER�) (5) 0.39% 0.44% 0.21% 0.32% 0.06% 0.02%MER before absorbed orwaived fees (5) 0.53% 0.44% 0.21% 0.32% 0.06% 0.02%Trading expense ratio (6) 0.01% 0.01% 0.02% 0.01% 0.01% 0.01%Portfolio turnover rate (7) 24.47% 19.49% 25.63% 12.83% 13.25% 19.17%NAV per unit (4) $9.18 $9.27 $9.21 $8.60 $9.13 $8.82




4















-9.8%

16.1%

7.9%

-1.6%

6.0% 5.9% 6.0%

-2.5%

9.9%

4.5%

0.4%

-15%

-10%

-5%

0%

5%

10%

15%

20%



5


-9.6%

16.2%

8.1%

-1.5%

6.0% 5.9% 6.0%

-3.0%

9.5%

4.1%0.1%

-15%

-10%

-5%

0%

5%

10%

15%

20%



16.7%

8.5%

-1.0%

6.6% 6.5% 6.6%

-1.9%

10.5%

5.1%

0.6%

-5%

0%

5%

10%

15%

20%



6.5% 6.5%

-2.5%

10.1%

4.8%

0.5%

-5%

0%

5%

10%

15%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302013 2014 2015 2016 2017 2018


-8.6%

17.4%

9.4%

-0.2%

7.5% 7.4% 7.4%

-2.4%

11.2%

4.3%0.9%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%



Asset MixPercentage

of NAV

Canadian Equities 41.66%Mutual Funds 30.26%Corporate Bonds 22.79%Government Bonds 4.56%Cash & Equivalents 0.73%Total 100.00%


of NAV

Mutual Funds 30.26%Financials 27.59%Energy 13.04%Government Bonds 4.56%Industrials 3.68%Materials 3.62%Consumer Staples 3.34%Consumer Discretionary 3.13%Asset Backed 2.57%Real Estate 2.41%Utilities 2.29%Telecommunication Services 1.99%InformationTechnology 0.79%Cash & Equivalents 0.73%Total 100.00%


6


of NAV

HSBC Mortgage Fund - Institutional Series 28.67%Royal Bank of Canada 2.60%Toronto-Dominion Bank 2.58%Bank of Nova Scotia 1.82%Canadian National Railway Company 1.77%Canadian Government Real Return Bond, 6.37% 12/01/26 1.65%Enbridge Inc. 1.51%Suncor Energy Inc. 1.48%Canada HousingTrust No. 1, 2.25% 12/15/25 1.42%Bank of Montreal 1.27%Brookfield Asset Management Inc., Class A 1.25%Canadian Natural Resources Ltd. 1.05%Manulife Financial Corp. 1.05%SPDR Barclays Capital HighYield Bond ETF 1.01%Dollarama Inc. 0.98%Nutrien Ltd. 0.98%Alimentation Couche-Tard Inc., Class B 0.90%Aviva PLC, 4.50% 05/10/21 0.87%Brookfield Infrastructure Partners LP 0.87%National Bank Financial, 1.15% 07/03/18 0.86%Imperial Oil Limited 0.83%TransCanada Corp. 0.82%Canadian Imperial Bank of Commerce 0.79%CGI Group Inc. 0.79%Sun Life Financial Inc. 0.70%Total ofTop 25 Holdings 58.52%




7





How to reach us


Vancouver


Toronto








Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, BMO Capital Markets, FTSE TMX Global Debt Capital Markets Inc.




018-

08)D

FS

HSBC U.S. DollarMonthly Income Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC U.S. DollarMonthly Income Fund.

We are the manager, trustee and primary investment advisor ofthe Fund. We have entered into a sub-advisory agreement withHSBC Global Asset Management (USA) Inc. and FederatedInvestment Counseling Inc., under which HSBC Global AssetManagement (USA) Inc. and Federated InvestmentCounseling Inc. provide investment advice and portfoliomanagement services to the Fund. For an explanation of therelationship between us and the sub-advisors, see the sectionSelection of Sub-Advisors in the Fund’s Simplified Prospectus.




Results of OperationsAs of June 30, 2018, the Fund’s net assets decreased by 9.0% to$865.4 million from $950.5 million at the end of 2017. Of thisdecrease, $56.7 million was attributable to net withdrawals fromthe Fund and $28.4 million loss was attributable to investmentperformance. All figures are stated in US dollars.

Investment PerformanceThe HSBC U.S. Dollar Monthly Income Fund (Investor Series) lost3.09% for the six-month period ending June 30, 2018, while itsbenchmark lost 0.90% over the same period. The benchmark is aweighted composite consisting of the Merrill Lynch USCorporate, A Rated 1-10 Year Index (US$) (70%) and Dow JonesUS Select Dividend Net Index (30%).

In the fixed income component of the portfolio, allocation effectswere negative, driven by the Fund’s overweight position infinancials and an underweight position in industrials. Issueselection was also a drag on performance due to positioningwithin the energy and banking sectors.

In the equity component of the portfolio, holdings in the energysector were the top contributors to returns, driven by the rally inoil prices. Holdings in healthcare and real estate investmenttrusts also contributed to performance, while holdings inconsumer staples and telecommunication services detracted.The period also saw robust dividend growth, with 19 companiesincreasing their dividend payments.

Global credit spreads widened over the first six months of 2018,with the tightening in January quickly reversing with the return ofvolatility in February. Over the period, investors have had toreconcile still solid global growth and a strong corporate earningspicture with geopolitical risks, trade tensions and country-specificissues in Europe and emerging markets.

Recent DevelopmentsOn the fixed income side, the Fund’s average credit rating is inline with the benchmark and remains overweight in AA and BBBcredits and underweight in As. It remains overweight in financialsand underweight in industrials and utilities.

Portfolio duration is about 0.2 years short of the benchmark,reflecting a continued gradual rise in government yields. Alongthe yield curve, the Fund is overweight in 0-1 year and 7-10 yearsegments. As the curve has flattened over the period, the FundManager has reinvested in higher rates at the short end of thecurve, while benefiting when yields fell at the long end of thecurve.

On the equity side, the Fund remains concentrated in consumerstaples, integrated energy, pharmaceuticals, telecommunicationservices and utilities. These segments contain dividend-friendlystocks that provide investors with a high-dividend yieldcomplemented by dividend growth. That dividend growth canhelp the portfolio both sustain its high yield and outpace inflation.Furthermore, companies that consistently pay and increase theirdividend tend to have lower volatility.



Manager, Trustee and Investment AdvisorWe are the manager, trustee and primary investment advisor ofthe Fund. As manager, we manage the overall business and

HSBC U.S. Dollar Monthly Income Fund

1

operations of the Fund. As trustee, we hold legal title to theproperty of the Fund on your behalf. As primary investmentadvisor, we provide investment advice and portfolio managementservices to the Fund. We receive a fee from the Fund for theseservices based on assets under management, calculated dailyand paid monthly.

We have entered into a sub-advisory agreement with HSBCGlobal Asset Management (USA) Inc. (an affiliate), under whichHSBC Global Asset Management (USA) Inc. provides investmentadvice and portfolio management services to the Fund. We payHSBC Global Asset Management (USA) Inc. an investmentadvisory fee from the Fund based on assets under management,calculated daily and paid quarterly. For more information on ourability to hire sub-advisors, see the section Organization andManagement of the HSBC Mutual Funds in the Fund’sSimplified Prospectus.



Financial HighlightsThe following tables show selected key financial informationabout the Fund and are intended to help you understand theFund’s financial performance for the six-month period endedJune 30, 2018, and for the last five years ended December 31, asapplicable. In the year a fund is established, “period” representsthe period from inception to December 31 or June 30 of thatfiscal year, as applicable. This information is derived from theFund’s unaudited semi-annual financial statements and theaudited annual financial statements. The information in thefollowing tables is based on prescribed regulations, and as aresult, is not expected to add due to the increase/decrease in netassets from operations being based on average units outstandingduring the period and all other numbers being based on actual

units outstanding at the relevant point in time.


HSBC U.S. Dollar Monthly Income Fund –Investor Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.09) (0.19) (0.20) (0.20) (0.20) (0.20)Realized gains (losses) 0.05 0.28 0.28 0.15 0.33 0.15Unrealized gains (losses) (0.49) 0.16 0.06 (0.26) 0.05 0.27

Total increase

(decrease) from

operations (2) $(0.34) $0.62 $0.49 $0.03 $0.55 $0.56



From dividends – – (0.07) (0.08) (0.11) (0.07)From capital gains – (0.36) (0.51) (0.08) (0.24) –From return of capital – – (0.01) (0.01) – (0.04)

Total annual

distributions (2,3) $(0.09) $(0.54) $(0.68) $(0.26) $(0.47) $(0.19)


period (2) $10.52 $10.95 $10.89 $11.09 $11.30 $11.21


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC U.S. Dollar Monthly Income Fund –Advisor Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.11) (0.22) (0.22) (0.22) (0.19) (0.19)Realized gains (losses) 0.05 0.26 0.27 0.11 0.30 0.14Unrealized gains (losses) (0.46) 0.14 0.03 (0.07) (0.08) 0.22

Total increase

(decrease) from

operations (2) $(0.34) $0.53 $0.41 $0.14 $0.38 $0.49




Total annual

distributions (2,3) $(0.09) $(0.52) $(0.65) $(0.25) $(0.46) $(0.19)


period (2) $9.91 $10.35 $10.34 $10.57 $10.82 $10.73


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC U.S. Dollar Monthly Income Fund –Premium Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.33) $0.65 $0.52 $0.05 $0.57 $0.59




Total annual

distributions (2,3) $(0.11) $(0.58) $(0.71) $(0.28) $(0.51) $(0.22)


period (2) $10.56 $10.99 $10.92 $11.12 $11.33 $11.23


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



3

HSBC U.S. Dollar Monthly Income Fund –Manager Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.75) $0.50 $0.91 $(0.05) $0.93 $0.61




Total annual

distributions (2,3) $(0.11) $(0.56) $(0.69) $(0.29) $(0.50) $(0.23)


period (2) $9.84 $10.29 $10.24 $10.48 $10.76 $10.67


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC U.S. Dollar Monthly Income Fund –Institutional Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) – (0.01) (0.01) (0.01) (0.01) (0.01)Realized gains (losses) 0.05 0.19 0.28 0.15 0.33 0.16Unrealized gains (losses) (0.51) 0.51 0.26 (0.28) (0.02) 0.18

Total increase

(decrease) from

operations (2) $(0.27) $1.07 $0.89 $0.21 $0.67 $0.67




Total annual

distributions (2,3) $(0.18) $(0.73) $(0.86) $(0.42) $(0.65) $(0.36)


period (2) $10.80 $11.23 $11.15 $11.32 $11.52 $11.39


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $10,420 $11,399 $1,827 $3,490 $7,087 $5,882Number of units outstanding (in000s) (4) 965 1,015 164 308 615 516Management expense ratio(�MER�) (5) 0.04% 0.07% 0.05% 0.04% 0.05% 0.06%MER before absorbed orwaived fees (5) 0.04% 0.07% 0.05% 0.04% 0.05% 0.06%Trading expense ratio (6) 0.01% 0.02% 0.03% 0.02% 0.03% 0.02%Portfolio turnover rate (7) 28.99% 63.98% 45.54% 43.16% 64.99% 58.37%NAV per unit (4) $10.80 $11.23 $11.15 $11.32 $11.52 $11.40



(3) Distributions are automatically reinvested in additional units of theFund; cash distributions are not available.


(5) Management expense ratio is based on total expenses (excludingdistributions, commissions and other portfolio transaction costs) for


4

the stated period and is expressed as an annualized percentage ofdaily average net asset value during the period. In the year a series isestablished, the MER is annualized from the date of inception to theend of the period. The MER may vary from one mutual fund toanother and from one series of units to another. We may have waivedor absorbed certain fees and expenses otherwise payable by theFund. The amount of expenses absorbed or waived is at thediscretion of and can be terminated at any time by us.






Past PerformanceThe performance information shown assumes that alldistributions made by the Fund in the periods shown werereinvested in additional securities of the Fund. The performanceinformation does not take into account sales, redemption,distribution, optional charges or expenses you may be chargedoutside of the Fund or the effect of any income tax you may haveto pay as a result of your investment in the Fund that would havereduced returns or performance. The performance of different

fund series may vary for a number of reasons, includingdifferences in management fees and expenses. The Fund’s pastperformance does not necessarily indicate how it will perform inthe future.



6.8%5.4% 5.0%

0.3%

4.3%5.6%

-3.1%-5%

0%

5%

10%



5.3% 5.0%

0.0%

4.0%5.2%

-3.3%-5%

0%

5%

10%



5


7.2%5.7% 5.4%

0.7%

4.7%6.0%

-2.9%-5%

0%

5%

10%



5.9% 5.5%

0.1%

4.3%6.0%

-3.3%-5%

0%

5%

10%



8.7%7.2% 6.8%

2.0%

6.1%7.3%

-2.3%-5%

0%

5%

10%

15%



Asset MixPercentage

of NAV

Corporate Bonds 64.90%U.S. Equities 22.67%International Equities 7.68%Government Bonds 2.25%Mutual Funds 1.18%Cash & Equivalents 1.32%Total 100.00%


of NAV

Financials 43.87%Consumer Staples 10.48%Energy 10.00%Utilities 7.24%Real Estate 6.61%Healthcare 5.44%Telecommunication Services 4.91%Consumer Discretionary 2.29%Government Bonds 2.25%InformationTechnology 1.79%Industrials 1.66%Mutual Funds 1.18%Materials 0.96%Cash & Equivalents 1.32%Total 100.00%


6


of NAV

Verizon Communications Inc. 1.78%BP Capital Markets PLC, 3.22% 04/14/24 1.53%AT&T Inc. 1.48%The Coca-Cola Co. 1.42%Altria Group Inc. 1.38%Duke Energy Corp. 1.37%Philip Morris International Inc. 1.36%Exxon Mobil Corp. 1.28%Crown Castle International Corp. 1.17%SPDR Barclays Capital HighYield Bond ETF 1.17%Occidental Petroleum Corp. 1.14%Chevron Corp. 1.12%Dominion Resources Inc. 1.09%Vodafone Group PLC 1.09%GlaxoSmithKline PLC 1.05%BP PLC 1.01%Bank of Nova Scotia, 2.45% 09/19/22 0.98%National Grid PLC 0.98%United StatesTreasury Note/Bond, 2.75% 05/31/23 0.93%The Southern Co. 0.84%Citigroup Inc., 3.52% 10/27/28 0.82%BPCE SA, 2.50% 12/10/18 0.81%United StatesTreasury Floating Rate Note, 1.77% 01/31/20 0.81%ABN AMRO Bank NV, 2.15% 01/19/21 0.76%PPL Corp. 0.76%Total ofTop 25 Holdings 28.13%



7





How to reach us


Vancouver


Toronto











018-

08)D

FS

HSBC Canadian Balanced Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC CanadianBalanced Fund.





Results of OperationsAs of June 30, 2018, the Fund’s net assets increased by 1.0% to$592.4 million from $586.4 million at the end of 2017. Of thisincrease, a $4.5 million gain was attributable to investmentperformance and $1.5 million was attributable to netcontributions to the Fund.

Investment PerformanceThe HSBC Canadian Balanced Fund (Investor Series) rose 0.59%for the six-month period ending June 30, 2018, while thebenchmark rose 2.31% over the same period.The benchmark is aweighted composite consisting of the FTSE TMX CanadaUniverse Bond Index (35%), S&P/TSX Capped Composite Index(35%), MSCI World Index (C$) (25%) and FTSE TMX Canada91-Day T-Bill Index (5%).

The Fund held a modestly overweight position in Canadian andglobal equities and an underweight position in fixed income(although within this segment it was overweight in corporatebonds). However, the benefits of this asset-class positioningwere offset by negative security selection in the global equityportion of the portfolio.

From a Canadian investor’s perspective, absolute returns werepositive but muted on a year-to-date basis. Global equities werethe best-performing major asset class, returning 5.4% in the firsthalf of the year. Canadian equities were up 2.0% year to date,while the bond market continued to face the headwinds ofmonetary stimulus removal and gained a modest 0.6%. Oil prices

rallied and are up 23% in 2018 to approximately $74 per barrel.The US dollar has gained 4.5% versus the Canadian dollar asexpectations that rates would rise faster in the US increasedits attractiveness.

While the macro picture is somewhat less robust than it was atyear-end, it remains quite positive (as do equity valuations) andmarket sentiment appears to be more influenced by geopoliticalrhetoric. The Fund therefore remains tilted towards corporateassets (both equity and bonds).

Recent DevelopmentsThe market environment in the first half of 2018 has been morechallenging than that in 2017 despite continued positivefundamentals. Headwinds have included the removal ofmonetary stimulus, global trade tensions, moderating economicgrowth and volatility in emerging markets.

However, overall we continue to see a fairly robust globalexpansion with low inflation and slowly rising rates. Valuationsalso remain modestly more attractive for some equity and creditmarkets than for government bonds and cash. Although weexpect increased volatility compared to 2017, our views are fairlyconsistent with those held at the start of 2018.

Canadian growth also looks positive, as evidenced by strongemployment, rising corporate profits and higher commodityprices. In the first half of 2018, the US Federal Reserve increasedrates by 50 basis points and the Bank of Canada increased itsbenchmark rate by 25 basis points. Two further hikes areexpected in each market in the remainder of 2018.





1




HSBC Canadian Balanced Fund – Investor Series– Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.17 $1.96 $2.26 $0.46 $2.47 $3.03


From income (excludingdividends) – (0.07) (0.06) (0.10) (0.12) –

From dividends (0.01) (0.18) (0.19) (0.18) (0.19) (0.35)From capital gains – – (0.17) (0.05) – (0.56)From return of capital – – – – – –

Total annual

distributions (2,3) $(0.01) $(0.25) $(0.42) $(0.33) $(0.31) $(0.91)


period (2) $29.93 $29.77 $28.05 $26.14 $26.04 $23.86


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC Canadian Balanced Fund – Advisor Series– Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.05 $1.12 $1.29 $(0.12) $1.12 $1.70



From dividends – (0.10) (0.11) (0.10) (0.10) (0.19)From capital gains – – (0.09) (0.02) – (0.29)From return of capital – – – – – –

Total annual

distributions (2,3) $– $(0.14) $(0.23) $(0.17) $(0.16) $(0.48)


period (2) $15.58 $15.54 $14.70 $13.55 $13.51 $12.38


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Canadian Balanced Fund – PremiumSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:

Total revenue 0.16 – 0.38 0.65 0.41 0.43Total expenses (excluding

distributions) (0.10) – (0.19) (0.18) (0.18) (0.16)Realized gains (losses) 0.24 – 0.43 0.25 0.16 0.40Unrealized gains (losses) (0.16) 1.05 0.63 (0.53) 0.84 1.00

Total increase

(decrease) from

operations (2) $0.14 $1.05 $1.25 $0.19 $1.23 $1.67




Total annual

distributions (2,3) $(0.05) $(0.21) $(0.29) $(0.22) $(0.22) $(0.51)


period (2) $14.91 $14.83 $13.98 $13.03 $12.96 $11.87


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $143,507 $131,371 $95,003 $81,593 $64,138 $34,052Number of units outstanding(in 000s) (4) 9,625 8,859 6,799 6,263 4,949 2,866Management expense ratio(�MER�) (5) 1.43% 1.44% 1.42% 1.42% 1.44% 1.46%MER before absorbed orwaived fees (5) 1.43% 1.44% 1.42% 1.42% 1.44% 1.46%Trading expense ratio (6) 0.03% 0.02% 0.04% 0.05% 0.07% 0.10%Portfolio turnover rate (7) 16.63% 19.95% 23.99% 32.21% 19.66% 66.77%NAV per unit (4) $14.91 $14.83 $13.97 $13.03 $12.96 $11.88


3

HSBC Canadian Balanced Fund – ManagerSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


beginning of period (2) $11.40 $10.73 $10.00 $– $13.12 $11.95


operations:

Total revenue 0.12 0.39 0.31 – 0.16 0.41Total expenses (excluding

distributions) (0.05) (0.10) (0.09) – (0.06) (0.11)Realized gains (losses) 0.19 0.30 0.32 – 0.16 0.57Unrealized gains (losses) (0.11) 0.26 0.56 – 0.74 0.93

Total increase

(decrease) from

operations (2) $0.15 $0.85 $1.10 $– $1.00 $1.80


From income (excludingdividends) – (0.04) (0.03) – – –

From dividends (0.06) (0.17) (0.14) – (0.08) (0.31)From capital gains – – (0.08) – – (0.33)From return of capital – – – – – –

Total annual

distributions (2,3) $(0.06) $(0.21) $(0.25) $– $(0.08) $(0.64)


period (2) $11.46 $11.40 $10.73 $– $– $13.11


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $753 $777 $139 $– $– $87Number of units outstanding (in000s) (4) 66 68 13 – – 7Management expense ratio(�MER�) (5) 0.91% 0.94% 1.27% – 0.90% 0.89%MER before absorbed orwaived fees (5) 0.91% 0.94% 3.74% – 0.90% 0.89%Trading expense ratio (6) 0.03% 0.02% 0.04% 0.05% 0.07% 0.10%Portfolio turnover rate (7) 16.63% 19.95% 23.99% 32.21% 19.66% 66.77%NAV per unit (4) $11.46 $11.40 $10.73 $– $– $13.12

HSBC Canadian Balanced Fund – InstitutionalSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) – (0.01) (0.01) (0.01) (0.01) (0.01)Realized gains (losses) 0.27 0.56 0.48 0.28 0.19 0.56Unrealized gains (losses) (0.19) 0.46 0.68 (0.46) 1.00 0.95

Total increase

(decrease) from

operations (2) $0.26 $1.50 $1.57 $0.52 $1.63 $1.92




Total annual

distributions (2,3) $(0.16) $(0.45) $(0.52) $(0.44) $(0.43) $(0.75)


period (2) $16.59 $16.50 $15.55 $14.49 $14.42 $13.20


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013





4















-15.5%

12.5%

7.2%

-3.6%

6.8%

13.9%10.4%

1.7%

8.9%7.0%

0.6%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%



5


-15.6%

7.2%

-3.6%

6.9%

14.0%10.4%

1.6%

10.1%6.6%

0.3%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302008 2009* 2010 2011 2012 2013 2014 2015 2016 2017 2018

* The Advisor Series was fully redeemed during 2009.


-3.1%

7.4%

14.5%

11.0%

2.2%

9.5%7.6%

0.9%

-10%

-5%

0%

5%

10%

15%

20%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302011 2012 2013 2014 2015 2016 2017 2018


-14.6%

13.7%

8.4%

-2.5%

8.1%

15.2%

8.2%

1.1%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302008 2009 2010 2011 2012 2013 2014* 2015* 2016* 2017 2018

* The Manager Series was fully redeemed during 2014. There were nounitholders for the full calendar year during 2015 and 2016.


-14.0%

14.6%

9.3%

-1.7%

8.9%

16.1%12.5%

3.6%

11.0%9.1%

1.5%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%



Asset MixPercentage

of NAV

Canadian Equities 33.96%Mutual Funds 33.83%Corporate Bonds 15.55%Government Bonds 15.17%Cash & Equivalents 1.49%Total 100.00%


of NAV

Mutual Funds 33.83%Financials 20.14%Government Bonds 15.17%Energy 10.10%Materials 4.04%Industrials 3.53%Consumer Discretionary 2.90%Consumer Staples 2.52%Real Estate 1.61%InformationTechnology 1.42%Asset Backed 1.34%Telecommunication Services 0.99%Utilities 0.92%Cash & Equivalents 1.49%Total 100.00%


6


of NAV

HSBC Global Equity Fund - Institutional Series 25.16%HSBC Mortgage Fund - Institutional Series 4.15%HSBC Small Cap Growth Fund - Institutional Series 2.52%Royal Bank of Canada 2.34%Toronto-Dominion Bank 2.31%Government of Canada, 3.88% 12/01/36 1.67%Bank of Nova Scotia 1.66%Province of Ontario, 2.90% 06/02/49 1.64%Canadian National Railway Co. 1.60%Enbridge Inc. 1.43%Suncor Energy Inc. 1.37%Brookfield Asset Management Inc., Class A 1.21%Imperial Oil Ltd. 1.12%Province of Quebec, 4.25% 12/01/21 1.08%Bank of Montreal 1.01%Government of Canada, 1.25% 10/04/18 0.99%Canadian Natural Resources Ltd. 0.98%Nutrien Ltd. 0.97%SPDR Bloomberg Barclays HighYield Bond ETF 0.97%Dollarama Inc. 0.95%Alimentation Couche-Tard Inc., Class B 0.86%Manulife Financial Corp. 0.86%Government of Canada, 4.00% 06/01/41 0.81%Canadian Imperial Bank of Commerce 0.78%CGI Group Inc. 0.78%Total ofTop 25 Holdings 59.22%




7





How to reach us


Vancouver


Toronto








Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, FTSE TMX Global Debt Capital Markets Inc., Bank of Canada.

Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties orrepresentations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warrantiesof originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of theforegoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liabilityfor any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. Nofurther distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent.




018-

08)D

FS

HSBC Dividend Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBCDividend Fund.





Results of OperationsAs of June 30, 2018, the Fund’s net assets increased by 0.1% to$782.2 million from $781.3 million at the end of 2017. Of thisincrease, a $5.2 million gain was attributable to investmentperformance, partially offset by $4.3 million net withdrawals fromthe Fund.

Investment PerformanceThe HSBC Dividend Fund (Investor Series) rose 0.49% for thesix-month period ending June 30, 2018, while the benchmarkS&P/TSX Capped Composite Index rose 1.95% over thesame period.

Although the Fund provided a modest positive return, it fell shortof its benchmark in the first half of 2018. The Fund’s relativeperformance benefited from its underweight position in materialsand its overweight position in energy, as well as from securityselection within those sectors. Negative impacts on performancecame from an underweight position in technology and fromsecurity selection within the financial and consumerstaples sectors.

Canadian equities are up 2.0% year to date, lagging the globalequity market, which gained 5.4% in the first half of the year. Inthe Canadian market, the technology, industrial and energysectors have been the top performers, and thetelecommunication services and utilities sectors have shown theweakest performance so far in 2018.

The outlook for Canadian equities continues to look attractive.Valuations are compelling, and a reasonably constructive macro

backdrop combined with continued growth in corporate earningsbodes well for this asset class. In 2017, corporate earnings grewby approximately 23%, and they look set to increase by10%-15% in 2018.

Recent DevelopmentsThe market environment in the first half of 2018 has been morechallenging than that in 2017 despite continued positivefundamentals. Headwinds have included the removal ofmonetary stimulus, global trade tensions, moderating economicgrowth and volatility in emerging markets. However, overall wecontinue to see a fairly robust global expansion with low inflationand slowly rising rates. Valuations also remain modestly moreattractive for equity markets than for government bonds andcash. Although we expect increased volatility compared to 2017,our views remain fairly consistent with those held at the start of2018.

Canadian growth also remains positive, as evidenced by strongemployment, rising corporate profits and higher commodityprices. In the first half of 2018, the US Federal Reserve increasedrates by 50 basis points and the Bank of Canada increased itsbenchmark rate by 25 basis points. Two further hikes areexpected in each market in the remainder of 2018. Lookingahead, geopolitical events, changes in monetary policies and thedirection of commodity prices will continue to impact marketsentiment.




HSBC Dividend Fund

1




HSBC Dividend Fund – Investor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.16 $3.77 $7.09 $(2.33) $3.49 $4.89



From dividends (0.20) (0.37) (0.43) (0.40) (0.30) (0.31)From capital gains – – – – – –From return of capital – – – – – –

Total annual

distributions (2,3) $(0.20) $(0.37) $(0.43) $(0.40) $(0.30) $(0.31)


period (2) $43.27 $43.26 $39.81 $33.04 $35.86 $32.66


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Dividend Fund

2

HSBC Dividend Fund – Advisor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.05 $1.58 $3.51 $(1.31) $1.86 $2.46




Total annual

distributions (2,3) $(0.09) $(0.18) $(0.21) $(0.20) $(0.14) $(0.15)


period (2) $21.34 $21.38 $19.75 $16.43 $17.90 $16.30


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Dividend Fund – Premium Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.13 $1.61 $3.00 $(0.92) $1.36 $2.03




Total annual

distributions (2,3) $(0.12) $(0.24) $(0.25) $(0.23) $(0.20) $(0.19)


period (2) $17.27 $17.27 $15.89 $13.19 $14.31 $13.04


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Dividend Fund

3

HSBC Dividend Fund – Manager Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.24 $2.74 $3.81 $(1.33) $2.04 $2.81




Total annual

distributions (2,3) $(0.22) $(0.38) $(0.43) $(0.40) $(0.36) $(0.33)


period (2) $22.55 $22.55 $20.73 $17.27 $18.79 $17.11


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $1,487 $1,461 $453 $284 $191 $180Number of units outstanding (in000s) (4) 66 65 22 16 10 11Management expense ratio(�MER�) (5) 0.95% 0.97% 1.21% 1.12% 0.87% 0.88%MER before absorbed orwaived fees (5) 0.95% 0.97% 1.21% 1.12% 0.87% 0.88%Trading expense ratio (6) 0.03% 0.03% 0.03% 0.03% 0.03% 0.03%Portfolio turnover rate (7) 10.82% 11.35% 8.90% 11.73% 12.85% 13.77%NAV per unit (4) $22.55 $22.55 $20.73 $17.27 $18.79 $17.12

HSBC Dividend Fund – Institutional Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) – (0.01) (0.01) (0.01) (0.01) (0.01)Realized gains (losses) 0.42 0.55 0.28 0.15 0.12 0.28Unrealized gains (losses) (0.38) 0.85 2.53 (1.37) 1.12 1.61

Total increase

(decrease) from

operations (2) $0.30 $1.87 $3.24 $(0.78) $1.65 $2.25




Total annual

distributions (2,3) $(0.24) $(0.47) $(0.46) $(0.43) $(0.39) $(0.35)


period (2) $17.42 $17.42 $16.03 $13.30 $14.44 $13.15


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




HSBC Dividend Fund

4















-29.9%

28.1%

10.1%

-7.5%

8.5%17.5%

10.7%

-6.8%

21.9%

9.6%0.5%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%


HSBC Dividend Fund

5


-29.9%

28.1%

10.1%

-7.4%

8.5%17.5%

10.7%

-7.1%

21.6%

9.1%0.3%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%



-6.9%

9.1%

18.2%

11.3%

-6.3%

22.6%

10.2%

0.8%

-20%

-10%

0%

10%

20%

30%



-29.1%

29.4%

11.3%

-6.4%

9.7%18.8%

11.9%

-6.0%

22.8%

10.7%

1.0%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%



-28.6%

30.4%

12.2%

-5.6%

10.6%19.8%

12.8%

-5.0%

24.3%

11.7%

1.4%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%



Asset MixPercentage

of NAV

Canadian Equities 96.44%Mutual Funds 1.36%Cash & Equivalents 2.20%Total 100.00%


of NAV

Financials 35.19%Energy 21.39%Materials 7.99%Industrials 7.69%Consumer Discretionary 7.37%Consumer Staples 5.10%Telecommunication Services 3.53%Utilities 3.47%Real Estate 2.67%InformationTechnology 2.04%Mutual Funds 1.36%Cash & Equivalents 2.20%Total 100.00%

HSBC Dividend Fund

6


of NAV

Royal Bank of Canada 6.76%Toronto-Dominion Bank 6.69%Bank of Nova Scotia 4.72%Canadian National Railway Company 4.60%Enbridge Inc. 3.92%Suncor Energy Inc. 3.84%Bank of Montreal 3.29%Brookfield Asset Management Inc., Class A 3.26%Manulife Financial Corp. 2.73%Canadian Natural Resources Ltd. 2.72%Nutrien Ltd. 2.53%Dollarama Inc. 2.52%Alimentation Couche-Tard Inc., Class B 2.34%Brookfield Infrastructure Partners LP 2.25%Imperial Oil Limited 2.15%TransCanada Corp. 2.12%Canadian Imperial Bank of Commerce 2.05%CGI Group Inc. 2.04%Sun Life Financial Inc. 1.82%Canadian Pacific Railway Ltd. 1.66%TELUS Corp. 1.66%Vermilion Energy Inc. 1.64%Thomson Reuters Corp. 1.63%Keyera Corp. 1.53%Loblaw Cos., Ltd. 1.50%Total ofTop 25 Holdings 71.97%



HSBC Dividend Fund

7





How to reach us


Vancouver


Toronto












018-

08)D

FS

HSBC Equity Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC Equity Fund.





Results of OperationsAs of June 30, 2018, the Fund’s net assets increased by 6.2% to$573.7 million from $540.4 million at the end of 2017. Of thisincrease, a $9.8 million gain was attributable to investmentperformance and $23.5 million was attributable to netcontributions to the Fund.

Investment PerformanceThe HSBC Equity Fund (Investor Series) rose 0.97% for thesix-month period ending June 30, 2018, while the benchmarkS&P/TSX Capped Composite Index rose 1.95% over thesame period.

The Fund provided a modest positive return and was neutral to itsbenchmark in the first half of 2018. Over the period, weincreased our position in energy from neutral to overweight. Anunderweight position in materials and our security selectionwithin that sector contributed to positive relative performancecompared to the benchmark index. Our overweight position inenergy and security selection within that sector was thesecond-largest contributor. Security selection within the financialand consumer staples sectors was the largest detractor ofrelative performance.

Canadian equities are up 2.0% year to date, lagging the globalequity market, which gained 5.4% in the first half of the year. Inthe Canadian market, the technology, industrial and energysectors have been the top performers, and thetelecommunication services and utilities sectors have shown theweakest performance so far in 2018.

The outlook for Canadian equities continues to remain attractive.Valuations are compelling, and a reasonably constructive macrobackdrop combined with continued growth in corporate earningsbodes well for this asset class. In 2017, corporate earnings grewby approximately 23%, and they look set to increase by10%-15% in 2018.


However, overall we continue to see a fairly robust globalexpansion with low inflation and slowly rising rates. Valuationsremain modestly more attractive for equity markets than forgovernment bonds and cash. Although we expect increasedvolatility compared to 2017, our views remain fairly consistentwith those held at the start of 2018.

Canadian growth also remains positive, as evidenced by strongemployment, rising corporate profits and higher commodityprices. In the first half of 2018, the US Federal Reserve increasedrates by 50 basis points and the Bank of Canada increased itsbenchmark rate by 25 basis points. Two further hikes areexpected in each market in the remainder of 2018. Lookingahead, geopolitical events, changes in monetary policies and thedirection of commodity prices will continue to impact marketsentiment.




HSBC Equity Fund

1




HSBC Equity Fund – Investor Series – Net Assetsper Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.48 $4.81 $8.75 $(3.02) $5.12 $5.55




Total annual

distributions (2,3) $(0.14) $(0.15) $(0.16) $(0.10) $(0.06) $(0.02)


period (2) $56.41 $56.01 $51.29 $42.56 $45.80 $40.77


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Equity Fund

2

HSBC Equity Fund – Advisor Series – Net Assetsper Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.29) (0.53) (0.13) (0.39) (0.33) (0.29)Realized gains (losses) 0.67 0.44 0.43 (0.01) 0.36 0.42Unrealized gains (losses) (0.47) 0.88 3.09 (1.24) 1.60 1.72

Total increase

(decrease) from

operations (2) $0.21 $1.35 $3.89 $(1.10) $2.11 $2.28




Total annual

distributions (2,3) $(0.05) $(0.06) $(0.07) $(0.05) $(0.03) $(0.01)


period (2) $23.14 $23.04 $21.21 $16.92 $18.41 $16.39


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Equity Fund – Premium Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.24 $1.58 $2.86 $(0.95) $1.43 $1.82




Total annual

distributions (2,3) $(0.09) $(0.14) $(0.13) $(0.09) $(0.07) $(0.05)


period (2) $17.15 $17.03 $15.60 $12.95 $13.92 $12.37


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $36,177 $35,706 $28,393 $20,472 $17,915 $9,618Number of units outstanding (in000s) (4) 2,109 2,097 1,820 1,581 1,287 777Management expense ratio(�MER�) (5) 1.40% 1.41% 1.40% 1.40% 1.42% 1.42%MER before absorbed orwaived fees (5) 1.40% 1.41% 1.40% 1.40% 1.42% 1.42%Trading expense ratio (6) 0.04% 0.03% 0.04% 0.03% 0.03% 0.02%Portfolio turnover rate (7) 10.38% 13.59% 11.22% 9.57% 13.66% 11.39%NAV per unit (4) $17.15 $17.03 $15.60 $12.95 $13.92 $12.37

HSBC Equity Fund

3

HSBC Equity Fund – Manager Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.36 $3.00 $4.13 $(1.27) $2.50 $2.72




Total annual

distributions (2,3) $(0.19) $(0.31) $(0.31) $(0.25) $(0.19) $(0.17)


period (2) $25.18 $25.02 $22.93 $19.12 $20.64 $18.31


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Equity Fund – Institutional Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.57 $2.70 $4.50 $(1.30) $2.66 $2.91




Total annual

distributions (2,3) $(0.30) $(0.54) $(0.48) $(0.41) $(0.31) $(0.31)


period (2) $25.72 $25.54 $23.40 $19.41 $20.86 $18.48


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $364,749 $325,917 $277,954 $111,747 $92,400 $67,734Number of unitsoutstanding (in 000s) (4) 14,180 12,760 11,879 5,756 4,429 3,665Management expense ratio(�MER�) (5) 0.05% 0.05% 0.05% 0.05% 0.06% 0.07%MER before absorbed orwaived fees (5) 0.05% 0.05% 0.05% 0.05% 0.06% 0.07%Trading expense ratio (6) 0.04% 0.03% 0.04% 0.03% 0.03% 0.02%Portfolio turnover rate (7) 10.38% 13.59% 11.22% 9.57% 13.66% 11.39%NAV per unit (4) $25.72 $25.54 $23.40 $19.41 $20.86 $18.48



HSBC Equity Fund

4













-29.8%

26.2%

11.3%

-11.4%

7.3%15.8% 12.4%

-6.9%

20.9%

9.5%1.0%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%



-29.8%

26.2%

11.3%

-11.4%

7.3%15.9% 12.5%

-7.8%

25.8%

9.0%0.7%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%


HSBC Equity Fund

5


-10.9%

7.9%

16.5%13.0%

-6.3%

21.6%

10.1%

1.2%

-20%

-10%

0%

10%

20%

30%



-29.1%

27.5%

12.5%

-10.4%

8.5%17.2% 13.7%

-6.2%

21.7%

10.5%1.4%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%



-28.5%

28.5%

13.4%

-9.7%

9.4%18.1% 14.6%

-5.1%

23.2%

11.6%

1.9%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%




of NAV

Financials 33.62%Energy 22.23%Materials 9.64%Industrials 7.84%Consumer Discretionary 7.77%Consumer Staples 5.06%InformationTechnology 4.01%Telecommunication Services 2.76%Real Estate 1.42%Utilities 1.19%Mutual Funds 0.25%Cash & Equivalents 4.21%Total 100.00%


of NAV

Royal Bank of Canada 6.58%Toronto-Dominion Bank 6.49%Bank of Nova Scotia 4.66%Canadian National Railway Co. 4.51%Enbridge Inc. 4.01%Suncor Energy Inc. 3.86%Brookfield Asset Management Inc., Class A 3.40%Imperial Oil Ltd. 3.14%Bank of Montreal 2.83%Canadian Natural Resources Ltd. 2.76%Nutrien Ltd. 2.73%Dollarama Inc. 2.68%Alimentation Couche-Tard Inc., Class B 2.43%Manulife Financial Corp. 2.41%CGI Group Inc. 2.21%Canadian Imperial Bank of Commerce 2.19%TransCanada Corp. 2.18%Tourmaline Oil Corp. 2.10%Government of Canada, 1.11% 08/23/18 1.97%Government of Canada, 1.25% 10/04/18 1.96%OpenText Corp. 1.80%Canadian Pacific Railway Ltd. 1.73%Thomson Reuters Corp. 1.70%Vermilion Energy Inc. 1.69%CanadianTire Corp., Ltd., Class A, Non-Voting Shares 1.63%Total ofTop 25 Holdings 73.65%


HSBC Equity Fund

6





How to reach us


Vancouver


Toronto











018-

08)D

FS

HSBC Small Cap Growth Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC Small CapGrowth Fund.

We are the manager, trustee and primary investment advisor ofthe Fund. We have entered into a sub-advisory agreement withMawer Investment Management Limited and Triasima PortfolioManagement Inc. to provide portfolio management andinvestment advisory services to the Fund. For an explanation ofthe relationship between us and the sub-advisors, see thesection Selection of Sub-Advisors in the Fund’s SimplifiedProspectus.




Results of OperationsAs of June 30, 2018, the Fund’s net assets decreased by 5.2% to$222.7 million from $234.9 million at the end of 2017. Of thisdecrease, $56.7 million was attributable to net withdrawals fromthe Fund and $28.4 million loss was attributable toinvestment performance.

Investment PerformanceThe HSBC Small Cap Growth Fund (Investor Series) fell 2.16% forthe six-month period ending June 30, 2018, while the benchmarkBMO Small Cap Index (C$) fell 2.34% over the same period.

The Fund’s outperformance compared to the benchmark wasmainly due to stock selection in the healthcare sector, whichbenefited from holdings in a biotech firm. Stock selection inconsumer staples and information technology was also positiveand offset weaker selections in the energy and financials sector.Separately, the Fund also benefited from an overweight positionin information technology and an underweight position in thematerials sector.

Volatility returned to equity markets after a steady upward movein 2017. This development was partially caused by a shift ininvestor sentiment, as concerns about faster than expected

policy tightening and escalating trade tensions returned to thefore. This particularly impacted the more volatile smallcapitalization space. Following this sell-off in the earlier part of theyear, Canadian small cap equities then broadly recovered in thesecond quarter. The improvement was broadly based (nine out oftwelve sectors advanced), but the period saw wide divergencesbetween sector returns.

Recent DevelopmentsThe global economic environment has become more challengingthan that in the prior year, despite continued positivefundamentals and a fairly robust pace of global expansioncompared to the recent past. Global headwinds include thegradual withdrawal of monetary policy accommodation,escalating trade tensions and moderating growth and volatility incertain emerging market countries. Meanwhile, macroeconomicindicators in Canada generally remain firm, although lingeringNAFTA renegotiation uncertainty and elevated household debtcontinue to be issues to monitor.

This year marks the ninth year of the current economicexpansion. Although economic data is still mostly positive, weare beginning to see early warning signs of excessive risk-takingand signs suggesting that we may be entering the later stages ofthe economic cycle.

Most of the holdings in the Fund are wealth-creating companieswith strong competitive advantages, which may provide lowervolatility gains in the upcycle and provide a ballast during aneconomic downturn.

Effective June 21, 2018, the risk rating of the Fund was loweredto medium. It was previously medium to high. The change is theresult of implementing the new investment risk classificationmethodology mandated by National Instrument 81-102, and notdue to any change in the Fund’s investment objectives, strategiesor the way the Fund was managed. On at least an annual basis,we review the risk rating of the Fund and will make adjustmentsto the risk rating of each Fund if required. The magnitude of theFund’s active strategy positions remains consistent with itslong-term risk profile.



1






HSBC Small Cap Growth Fund – Investor Series– Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.69) (1.35) (1.23) (1.14) (1.15) (0.87)Realized gains (losses) 0.78 3.25 3.74 5.07 2.91 2.83Unrealized gains (losses) (2.11) (0.34) 5.81 (3.75) (0.91) 12.33

Total increase

(decrease) from

operations (2) $(1.45) $2.76 $9.40 $1.32 $1.88 $15.13




Total annual

distributions (2,3) $– $– $– $– $– $–


period (2) $61.52 $62.88 $59.96 $50.51 $49.22 $46.81


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC Small Cap Growth Fund – Advisor Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.66) $0.89 $3.41 $0.12 $0.28 $6.26




Total annual

distributions (2,3) $– $– $– $– $– $–


period (2) $24.15 $24.75 $23.72 $20.08 $19.66 $18.71


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Small Cap Growth Fund – Premium Series– Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.57) $1.31 $4.32 $0.71 $0.56 $7.45




Total annual

distributions (2,3) $– $– $– $– $– $–


period (2) $27.77 $28.30 $26.84 $22.49 $21.80 $20.61


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $35,390 $37,144 $37,066 $27,162 $32,905 $23,358Number of units outstanding (in000s) (4) 1,275 1,312 1,381 1,208 1,510 1,131Management expense ratio(�MER�) (5) 1.70% 1.71% 1.69% 1.70% 1.71% 1.71%MER before absorbed orwaived fees (5) 1.70% 1.71% 1.69% 1.70% 1.71% 1.71%Trading expense ratio (6) 0.13% 0.17% 0.16% 0.15% 0.19% 0.11%Portfolio turnover rate (7) 19.97% 39.30% 39.70% 31.36% 41.09% 31.80%NAV per unit (4) $27.77 $28.30 $26.84 $22.49 $21.80 $20.66


3

HSBC Small Cap Growth Fund – Manager Series– Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.53) $1.47 $4.84 $0.94 $1.27 $7.57




Total annual

distributions (2,3) $– $– $– $– $– $–


period (2) $30.35 $30.86 $29.11 $24.26 $23.39 $22.00


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $1,554 $1,678 $1,822 $1,398 $1,708 $1,988Number of units outstanding (in000s) (4) 51 54 63 58 73 90Management expense ratio(�MER�) (5) 1.20% 1.18% 1.16% 1.19% 1.13% 1.17%MER before absorbed orwaived fees (5) 1.20% 1.18% 1.16% 1.19% 1.13% 1.17%Trading expense ratio (6) 0.13% 0.17% 0.16% 0.15% 0.19% 0.11%Portfolio turnover rate (7) 19.97% 39.30% 39.70% 31.36% 41.09% 31.80%NAV per unit (4) $30.35 $30.86 $29.11 $24.26 $23.39 $22.05

HSBC Small Cap Growth Fund – InstitutionalSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.29) $2.14 $5.24 $0.80 $1.65 $7.00



From dividends – – – – – –From capital gains – – (0.24) – – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $– $(0.24) $– $– $–


period (2) $30.54 $30.88 $28.81 $23.94 $22.83 $21.24


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013





4













-38.7%

50.7%

24.7%

-0.8%

15.4%

45.9%

4.9% 2.6%18.7%

4.9%

-2.2%

-60%

-40%

-20%

0%

20%

40%

60%

80%



-38.0%

50.7%

24.6%

-0.8%

15.3%

45.9%

4.9% 2.1%18.1%

4.3%

-2.4%

-60%

-40%

-20%

0%

20%

40%

60%

80%



5


-0.2%

16.0%

46.7%

5.5% 3.2%

19.4%

5.4%

-1.9%-10%

0%

10%

20%

30%

40%

50%

60%



0.0%

26.0%

0.3%

16.6%

47.6%

6.1% 3.7%

20.0%

6.0%

-1.6%-10%

0%

10%

20%

30%

40%

50%

60%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302008 2009* 2010 2011 2012 2013 2014 2015 2016 2017 2018

* The Manager Series was fully redeemed during 2009.


-37.4%

53.8%

27.4%

1.4%

17.9%

49.1%

7.2% 4.9%

21.3%7.2%

-1.1%

-60%

-40%

-20%

0%

20%

40%

60%

80%




of NAV

Industrials 20.15%Consumer Discretionary 15.69%Materials 15.08%InformationTechnology 13.09%Energy 11.59%Real Estate 9.94%Financials 8.41%Consumer Staples 2.03%Healthcare 0.84%Utilities 0.03%Cash & Equivalents 3.15%Total 100.00%


of NAV

Boyd Group Income Fund 4.14%Enghouse Systems Ltd. 3.60%MTY Food Group Inc. 3.38%Morneau Shepell Inc. 3.31%Altus Group Ltd. 3.15%NFI Group Inc 2.81%Stella-Jones Inc. 2.71%Canadian Western Bank 2.69%Winpak Ltd. 2.52%Stantec Inc. 2.48%The Descartes Systems Group Inc. 2.45%Sleep Country Canada Holdings Inc. 2.19%Richelieu Hardware Ltd. 2.13%Solium Capital Inc. 2.09%Enercare Inc. 1.96%Equitable Group Inc. 1.95%Yangarra Resources Ltd. 1.95%Recipe Unlimited Corp 1.92%CES Energy Solutions Corp. 1.91%Parkland Fuel Corp. 1.88%Mainstreet Equity Corp. 1.61%People Corp. 1.54%FirstService Corp. 1.42%Colliers International Group Inc. 1.30%Intertape Polymer Group Inc. 1.30%Total ofTop 25 Holdings 58.39%



6





How to reach us


Vancouver


Toronto








Sources: HSBC Global Asset Management (Canada) Limited, BMO Capital Markets.



018-

08)D

FS

HSBC Global Equity Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC GlobalEquity Fund.

We are the manager, trustee and primary investment advisor ofthe Fund. We have entered into a sub-advisory agreement withHSBC Global Asset Management (UK) Limited, under whichHSBC Global Asset Management (UK) Limited providesinvestment advice and portfolio management services to theFund. For an explanation of the relationship between us and thesub-advisor, see the section Selection of Sub-Advisors in theFund’s Simplified Prospectus.




Results of OperationsAs of June 30, 2018, the Fund’s net assets increased by 6.1% to$723.8 million from $681.9 million at the end of 2017. Of thisincrease, $25.1 million was attributable to net contributions tothe Fund and $16.8 million gain was attributable toinvestment performance.

Investment PerformanceThe HSBC Global Equity Fund (Investor Series) rose 1.78% forthe six-month period ending June 30, 2018, while the benchmarkMSCI World Net Total Return Index (C%) rose 5.44% over thesame period.

The Fund underperformed against its benchmark, with both assetallocation and stock selection weighing on performance. On asector basis, overweight allocations to consumer discretionaryand utilities and an underweight exposure to financialscontributed to performance. Conversely, overweight allocationsto industrials and telecommunication services and anunderweight exposure to information technology weighedon performance.

On a country basis, overweight allocations to France, Norwayand the United Kingdom and an underweight exposure toSwitzerland contributed to performance, while overweightallocations to Japan, Germany and Spain and an underweightexposure to the US weighed on performance.

Global equity markets gained over the period, despite geopoliticalpressures and concerns about US trade protectionism. The USFederal Reserve raised rates by 25 basis points in March, asexpected, and, more surprisingly, outlined plans for two furtherhikes this year. Meanwhile, the European Central Bankannounced it would terminate its asset purchase program in2018. Global energy companies benefited from rising oil prices,which were lifted in part by the withdrawal of the US from theIran nuclear deal.

Recent DevelopmentsGlobal economic growth momentum remains solid, driving globalequity markets to deliver positive returns over the medium tolong term. Overall, support from still loose monetary policy andfiscal policy may, in the medium and longer term, outweigh anyheadwinds from more modest Chinese growth, monetary policynormalization in developed markets and political uncertainty inmany regions.

The Fund uses a systematic investment approach known as theHSBC Economic Scale Equity strategy to invest in companiesaccording to their economic scale, which is measured by thecompany’s contribution to Gross National Product (“GNP”). TheFund employs a systematic rebalancing process that evaluatesstock weights in June based on each company’s contribution toGNP, and in December it rebalances each constituent stock backto June weights. This strategy aims to take advantage of excessvolatility in market prices to add excess return while deliveringthe equity market premium. In the June 2018 rebalance, therewere 137 additions and 159 deletions.




1


We have entered into a sub-advisory agreement with HSBCGlobal Asset Management (UK) Limited (an affiliate), under whichHSBC Global Asset Management (UK) Limited providesinvestment advice and portfolio management services to theFund. We pay HSBC Global Asset Management (UK) Limited aninvestment advisory fee from the Fund based on assets undermanagement, calculated daily and paid quarterly. For moreinformation on our ability to hire sub-advisors, see the sectionOrganization and Management of the HSBC Mutual Funds in theFund’s Simplified Prospectus.


Investments in Securities of Related PartiesIn accordance with Canadian securities legislation and policiesset out by our Independent Review Committee, the Fund mayinvest its assets in the securities of companies related to theFund’s investment advisor or sub-advisor. During the period, theFund held, purchased or sold shares in HSBC Holdings plc (ourultimate parent company), Hang Seng Bank and Deutsche BoerseAG Npv, which represented 0.39%, 0.05% and 0.02% of theFund’s assets, respectively, as at June 30, 2018.



HSBC Global Equity Fund – Investor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.25 $1.79 $0.64 $1.64 $1.56 $2.70


From income (excludingdividends) – – – – (0.03) (0.03)

From dividends – (0.25) (0.11) (0.31) (0.09) (0.05)From capital gains – (0.12) – (0.78) – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $(0.37) $(0.11) $(1.09) $(0.12) $(0.08)


period (2) $15.48 $15.21 $13.78 $13.20 $12.58 $11.12


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC Global Equity Fund – Advisor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.32 $2.04 $1.53 $1.36 $0.92 $2.58




Total annual

distributions (2,3) $– $(0.43) $(0.13) $(1.02) $(0.11) $(0.08)


period (2) $18.25 $17.96 $16.35 $12.47 $12.06 $10.67


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $315 $165 $128 $31 $25 $73Number of units outstanding(in 000s) (4) 17 9 8 2 2 7Management expense ratio(�MER�) (5) 1.83% 1.97% 0.95% 3.02% 2.50% 2.56%MER before absorbed orwaived fees (5) 2.05% 2.32% 6.63% 7.23% 2.50% 2.56%Trading expense ratio (6) 0.03% 0.02% 0.06% 0.12% 0.22% 0.26%Portfolio turnover rate (7) 20.45% 22.34% 30.23% 122.23% 102.60% 163.55%NAV per unit (4) $18.25 $17.96 $16.35 $12.47 $12.06 $10.68

HSBC Global Equity Fund – Premium Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.20 $2.23 $0.97 $1.54 $1.72 $3.56




Total annual

distributions (2,3) $– $(0.55) $(0.21) $(1.51) $(0.27) $(0.18)


period (2) $19.85 $19.47 $17.65 $16.92 $16.17 $14.32


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $17,976 $11,329 $6,305 $5,930 $1,682 $1,535Number of units outstanding(in 000s) (4) 906 582 357 351 104 107Management expense ratio(�MER�) (5) 1.10% 1.15% 1.12% 1.20% 2.03% 2.10%MER before absorbed orwaived fees (5) 1.10% 1.15% 1.12% 1.20% 2.03% 2.10%Trading expense ratio (6) 0.03% 0.02% 0.06% 0.12% 0.22% 0.26%Portfolio turnover rate (7) 20.45% 22.34% 30.23% 122.23% 102.60% 163.55%NAV per unit (4) $19.85 $19.47 $17.65 $16.92 $16.17 $14.34


3

HSBC Global Equity Fund – Manager Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.32 $1.51 $0.77 $1.74 $1.79 $2.96




Total annual

distributions (2,3) $– $(0.47) $(0.20) $(1.22) $(0.27) $(0.23)


period (2) $15.96 $15.68 $14.26 $13.76 $13.23 $11.69


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Global Equity Fund – Institutional Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.44 $2.44 $1.64 $2.21 $2.24 $3.42




Total annual

distributions (2,3) $– $(0.70) $(0.36) $(1.59) $(0.52) $(0.43)


period (2) $18.71 $18.25 $16.54 $15.85 $15.12 $13.36


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013





4













-28.7%

6.7%0.5%

-6.6%

9.8%

31.6%

14.1% 13.5%5.2%

13.0%

1.8%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%



-28.6%

6.7%0.6%

-6.5%

9.9%

31.6%

14.1% 11.8%

32.2%

12.4%

1.6%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%



5


-6.1%

10.4%

32.3%

14.7% 13.9%

5.5%

13.3%

2.0%

-20%

-10%

0%

10%

20%

30%

40%



-27.9%

7.8%1.7%

-5.5%

11.1%

33.1%

15.4% 13.2%5.1%

13.2%1.7%

-40%

-20%

0%

20%

40%

60%



-27.0%

9.2%3.0%

-4.2%

12.6%

34.9%

16.9% 15.3%6.6%

14.5%

2.5%

-40%

-20%

0%

20%

40%

60%




of NAV

Financials 16.38%Industrials 15.96%Consumer Discretionary 14.48%Consumer Staples 10.43%InformationTechnology 8.96%Healthcare 7.98%Energy 6.09%Telecommunication Services 5.39%Materials 5.14%Utilities 4.37%Mutual Funds 2.54%Real Estate 1.63%Cash & Equivalents 0.65%Total 100.00%

>


of NAV

United States of America 42.83%Japan 12.14%United Kingdom 7.35%France 6.21%Germany 5.87%Switzerland 2.82%Canada 2.65%Netherlands 2.60%Australia 2.22%Spain 2.12%Italy 1.71%Sweden 1.38%Ireland 1.27%Hong Kong 0.99%Singapore 0.91%Belgium 0.59%Denmark 0.58%Norway 0.46%Finland 0.45%Luxembourg 0.35%Bermuda 0.30%Cayman Islands 0.25%Austria 0.17%Portugal 0.17%Israel 0.12%Jersey 0.07%Thailand 0.05%South Africa 0.04%Taiwan 0.04%British Virgin Islands 0.03%Guernsey 0.03%New Zealand 0.03%Papua New Guinea 0.01%Mutual Funds 2.54%Cash & Equivalents 0.65%


6


of NAV

Total 100.00%


of NAV

Walmart Inc. 1.72%iShares Core S&P 500 ETF 1.60%General Electric Co. 0.94%iShares MSCI EAFE ETF 0.94%Royal Dutch Shell PLC 0.80%Wells Fargo & Co. 0.78%Apple Inc. 0.77%AT&T Inc. 0.72%JPMorgan Chase & Co. 0.68%Exxon Mobil Corp. 0.61%Volkswagen AG 0.61%NipponTelegraph &Telephone Corp. 0.58%Bank of America Corp. 0.57%Verizon Communications Inc. 0.54%Siemens AG 0.52%Toyota Motor Corp. 0.51%Accenture PLC, A-Shares 0.49%Chevron Corp. 0.48%Citigroup Inc. 0.48%Berkshire Hathaway Inc., Class B 0.46%Nestle SA 0.46%The Walt Disney Co. 0.46%Japan Post Holdings Co., Ltd. 0.45%United Parcel Service Inc., Class B 0.45%The Home Depot Inc. 0.44%Total ofTop 25 Holdings 17.06%



7





How to reach us


Vancouver


Toronto








Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, Bank of Canada.




018-

08)D

FS

HSBC Global Equity VolatilityFocused Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC Global EquityVolatility Focused Fund.





Results of OperationsAs of June 30, 2018, the Fund’s net assets increased by 63.5% to$93.2 million from $57.0 million at the end of 2017. Of thisincrease, $37.9 million was attributable to net contributions tothe Fund, partially offset by a $1.7 million loss attributable toinvestment performance. All figures are stated in US dollars.

Investment PerformanceThe HSBC Global Equity Volatility Focused Fund (InvestorSeries) lost 1.54% for the six-month period ending June 30,2018, while the benchmark MSCI All Country World Index (US$)lost 0.43% over the same period.

Although the Fund’s stock selection was the key contributor tounderperformance, some stocks also contributed positively.Holdings in an American soft drink company delivered stellarreturns following the company’s acquisition by an Americanspecialty coffee and coffeemaker company. Additionalcontributions came from a Japanese chemical and cosmeticscompany, which advanced on data releases showing a large gainin inbound-tourist traffic in April, a key driver for cosmetics,leisure and select retail companies.

Partially offsetting these gains was the Fund’s underweightexposure to an American e-commerce company, which gainedafter quarter-on-quarter profits more than doubled, fuelled by thecompany’s cloud business and eclipsing analysts’ expectations.

Country and sector allocation effects were residual to stockselection and were negative during the period. Country allocationeffects were primarily due to an underweight position in the US,while sector allocation was driven by an overweight exposureto financials.

During the period, the Fund Manager initiated positions in 2companies and sold positions in 4 companies.

Recent DevelopmentsThe Fund Manager’s measure of the global equity risk premium(excess return over cash) is still reasonable given where we are inthe profit cycle. Global economic growth momentum remainssolid, driving global equity markets to deliver positive returns overthe long term. Overall, support from still loose monetary policyand fiscal policy may, in the medium and longer term, outweighany headwinds from more modest Chinese growth, monetarypolicy normalization in developed markets and politicaluncertainty in many regions.

While volatility appears benign, investors should not becomplacent. Fairly narrow implied equity premia (excess returnover cash) limit the ability of the market to absorb bad news.Episodic volatility may be triggered by concerns surroundingChinese growth, US economic policy and/or a potentially morerapid than expected US Federal Reserve, European Central Bankor Bank of Japan normalization of policy, coupled with politicalrisks. A notable and persistent deterioration of the globaleconomic outlook could also dampen the Fund Manager’s view.



Manager, Trustee and Investment AdvisorWe are the manager, trustee and primary investment advisor ofthe Fund. As manager, we manage the overall business andoperations of the Fund. As trustee, we hold legal title to theproperty of the Fund on your behalf. As primary investmentadvisor, we provide investment advice and portfolio management

HSBC Global Equity Volatility Focused Fund

1

services to the Fund. We receive a fee from the Fund for theseservices based on assets under management, calculated dailyand paid monthly.



Financial HighlightsThe following tables show selected key financial informationabout the Fund and are intended to help you understand theFund’s financial performance for the six-month period endedJune 30, 2018, and for the last three years ended December 31,as applicable. In the year a fund is established, “period”represents the period from inception to December 31 or June 30of that fiscal year, as applicable. This information is derived fromthe Fund’s unaudited semi-annual financial statements and theaudited annual financial statements. The information in thefollowing tables is based on prescribed regulations, and as aresult, is not expected to add due to the increase/decrease in netassets from operations being based on average units outstandingduring the period and all other numbers being based on actualunits outstanding at the relevant point in time.


HSBC Global Equity Volatility Focused Fund –Investor Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015


period (2) $11.97 $10.37 $9.94 $10.00


Total revenue 0.18 0.27 0.25 0.04Total expenses (excluding distributions) (0.14) (0.27) (0.24) (0.05)Realized gains (losses) – 0.48 (0.10) (0.02)Unrealized gains (losses) (0.34) 1.13 0.70 (0.10)


operations (2) $(0.30) $1.61 $0.61 $(0.13)


From income (excluding dividends) – – – –From dividends – – – –From capital gains – – – –From return of capital – – – –

Total annual distributions (2,3) $– $– $– $–



June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

NAV (in 000s) (4) $12,999 $8,314 $3,648 $1,092Number of units outstanding (in 000s) (4) 1,103 695 352 110Management expense ratio (�MER�) (5) 2.31% 2.43% 2.37% 2.48%MER before absorbed or waived fees (5) 2.32% 2.49% 2.60% 3.01%Trading expense ratio (6) 0.12% 0.26% 0.23% 0.13%Portfolio turnover rate (7) 21.55% 102.98% 85.90% 13.89%NAV per unit (4) $11.79 $11.97 $10.37 $9.94


2

HSBC Global Equity Volatility Focused Fund –Advisor Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015


period (2) $12.20 $10.42 $9.84 $10.00


Total revenue 0.17 0.21 0.08 –Total expenses (excluding distributions) (0.14) (0.26) – –Realized gains (losses) (0.01) 0.27 (0.11) (0.01)Unrealized gains (losses) (0.46) 2.95 0.03 0.01


operations (2) $(0.44) $3.17 $– $–


From income (excluding dividends) – – – –From dividends – – (0.01) –From capital gains – – – –From return of capital – – – –

Total annual distributions (2,3) $– $– $(0.01) $–



June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

NAV (in 000s) (4) $18 $10 $–* $–*

Number of units outstanding (in 000s) (4) 1 1 –* –*

Management expense ratio (�MER�) (5) 2.23% 2.36% 0.00% 0.00%MER before absorbed or waived fees (5) 2.23% 2.42% 0.00% 0.00%Trading expense ratio (6) 0.12% 0.26% 0.23% 0.13%Portfolio turnover rate (7) 21.55% 102.98% 85.90% 13.89%NAV per unit (4) $12.02 $12.20 $10.42 $9.84


HSBC Global Equity Volatility Focused Fund –Premium Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015


period (2) $12.00 $10.36 $9.94 $10.00


Total revenue 0.18 0.26 0.24 0.04Total expenses (excluding distributions) (0.10) (0.21) (0.18) (0.04)Realized gains (losses) – 0.45 (0.10) (0.03)Unrealized gains (losses) (0.33) 1.25 0.64 (0.14)


operations (2) $(0.25) $1.75 $0.60 $(0.17)


From income (excluding dividends) – – – –From dividends – (0.03) (0.06) –From capital gains – – – –From return of capital – – – –

Total annual distributions (2,3) $– $(0.03) $(0.06) $–



June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

NAV (in 000s) (4) $75,248 $43,618 $9,236 $2,610Number of units outstanding (in 000s) (4) 6,351 3,635 892 263Management expense ratio (�MER�) (5) 1.74% 1.85% 1.80% 2.06%MER before absorbed or waived fees (5) 1.75% 1.89% 2.01% 2.36%Trading expense ratio (6) 0.12% 0.26% 0.23% 0.13%Portfolio turnover rate (7) 21.55% 102.98% 85.90% 13.89%NAV per unit (4) $11.85 $12.00 $10.36 $9.94


3

HSBC Global Equity Volatility Focused Fund –Manager Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015


period (2) $11.98 $10.31 $9.84 $10.00


Total revenue 0.05 0.11 0.08 –Total expenses (excluding distributions) – – – –Realized gains (losses) – 0.44 (0.11) (0.01)Unrealized gains (losses) (0.05) 1.42 0.03 0.01


operations (2) $– $1.97 $– $–






June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

NAV (in 000s) (4) $– $–* $–* $–*


Management expense ratio (�MER�) (5) – 0.00% 0.00% 0.00%MER before absorbed or waived fees (5) – 0.00% 0.00% 0.00%Trading expense ratio (6) 0.12% 0.26% 0.23% 0.13%Portfolio turnover rate (7) 21.55% 102.98% 85.90% 13.89%NAV per unit (4) $11.91 $11.98 $10.31 $9.84


HSBC Global Equity Volatility Focused Fund –Institutional Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015


period (2) $11.98 $10.41 $9.98 $10.00


Total revenue 0.17 0.26 0.25 0.03Total expenses (excluding distributions) (0.01) (0.02) (0.02) (0.01)Realized gains (losses) 0.01 0.38 (0.14) (0.02)Unrealized gains (losses) (0.20) 1.36 0.72 (0.03)


operations (2) $(0.03) $1.98 $0.81 $(0.03)






June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

NAV (in 000s) (4) $4,949 $5,093 $7,146 $10,193Number of units outstanding (in 000s) (4) 415 425 687 1,021Management expense ratio (�MER�) (5) 0.16% 0.21% 0.22% 0.57%MER before absorbed or waived fees (5) 0.16% 0.29% 0.42% 0.70%Trading expense ratio (6) 0.12% 0.26% 0.23% 0.13%Portfolio turnover rate (7) 21.55% 102.98% 85.90% 13.89%NAV per unit (4) $11.92 $11.98 $10.41 $9.98

(1) This information is derived from the Fund’s unaudited semi-annualfinancial report and audited annual financial statements. All balancesare stated in IFRS. Under IFRS, the net assets per unit presented inthe financial statements is the same as the net asset value calculatedfor fund pricing purposes.






4

or absorbed certain fees and expenses otherwise payable by theFund. The amount of expenses absorbed or waived is at thediscretion of and can be terminated at any time by us.









4.3%

15.5%

-1.5%-5%

0%

5%

10%

15%

20%

Dec. 31 Dec. 31 Jun. 302016 2017 2018


6.0%

17.1%

-1.5%-5%

0%

5%

10%

15%

20%

Dec. 31 Dec. 31 Jun. 302016 2017 2018


4.9%

16.2%

-1.3%-5%

0%

5%

10%

15%

20%

Dec. 31 Dec. 31 Jun. 302016 2017 2018


5


6.0%

17.2%

-0.6%-5%

0%

5%

10%

15%

20%

Dec. 31 Dec. 31 Jun. 302016 2017 2018


6.6%

18.0%

-0.5%-5%

0%

5%

10%

15%

20%

25%

Dec. 31 Dec. 31 Jun. 302016 2017 2018



of NAV

Financials 19.50%InformationTechnology 18.01%Industrials 13.35%Healthcare 10.40%Consumer Discretionary 9.93%Consumer Staples 9.37%Energy 6.24%Materials 2.93%Mutual Funds 2.83%Utilities 2.05%Telecommunication Services 1.52%Real Estate 0.47%Cash & Equivalents 3.40%Total 100.00%

>


of NAV

United States of America 44.23%United Kingdom 12.53%Japan 10.33%Germany 4.30%Hong Kong 3.32%China 2.99%France 2.83%Italy 2.71%Netherlands 2.42%Switzerland 1.72%Indonesia 1.35%Singapore 1.19%South Korea 1.13%Thailand 0.86%Jersey 0.73%Denmark 0.71%Canada 0.42%Mutual Funds 2.83%Cash & Equivalents 3.40%Total 100.00%


of NAV

iShares MSCI ACWI ETF 2.83%Kao Corp. 2.49%The Home Depot Inc. 2.38%Cisco Systems Inc. 2.36%Apple Inc. 2.35%Phillips 66 2.32%Compass Group PLC 2.21%BAE Systems PLC 2.15%UnitedHealth Group Inc. 2.09%Bank of America Corp. 2.06%BP PLC 2.03%IQVIA Holdings Inc. 2.01%Microsoft Corp. 2.01%UnitedTechnologies Corp. 1.98%Eni SpA 1.89%Prudential PLC 1.84%3M Co. 1.82%Johnson & Johnson 1.82%Citigroup Inc. 1.78%Nestle SA 1.72%Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen 1.71%Cap Gemini SA 1.70%Mitsubishi UFJ Financial Group Inc. 1.70%The Walt Disney Co. 1.67%Wolters Kluwer NV 1.67%Total ofTop 25 Holdings 50.59%



6





How to reach us


Vancouver


Toronto











018-

08)D

FS

HSBC U.S. Equity Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBCU.S. Equity Fund.

We are the manager, trustee and primary investment advisor ofthe Fund. We have entered into a sub-advisory agreement withLos Angeles Capital Management and Equity Research, Inc.,under which Los Angeles Capital Management and EquityResearch, Inc. provides investment advice and portfoliomanagement services to the Fund. For an explanation of therelationship between us and the sub-advisor, see the sectionSelection of Sub-Advisors in the Fund’s Simplified Prospectus.




Results of OperationsAs of June 30, 2018, the Fund’s net assets increased by 4.8% to$214.7 million from $204.8 million at the end of 2017. Of thisincrease, a $12.4 million gain was attributable to investmentperformance, partially offset by $2.5 million net withdrawals fromthe Fund.

Investment PerformanceThe HSBC U.S. Equity Fund (Investor Series) was up 5.95% forthe six-month period ending June 30, 2018, while the benchmarkRussell 1000 Index (C$) was up 7.98% over the same period.

For the first half of 2018, both sector tilts and fundamental factorbets contributed to return. Within sectors, the Fund’sunderweight position in real estate and overweight position insoftware and services, insurance, and technology hardware andequipment were the leading contributors to return. Underweightpositions to semiconductors and semiconductor equipment andto retail, along with an overweight position to food and staplesretailing hurt performance.

The first half of 2018 saw a preference for growth over value,small cap over large cap, and developed markets over emergingmarkets. Volatility levels normalized after experiencing historic

lows in 2017 and the strength of the US dollar continued tonegatively impact emerging markets. Major equity indicesdelivered net positive returns led by strong performance inconsumer discretionary, technology and energy stocks, while theremaining sectors lagged, dragged down especially byindustrials, consumer staples and telecommunications.

Recent DevelopmentsThroughout the first half of the year, the Fund moved out ofvalue-oriented characteristics (such as higher-yielding, highbook-to-price and high earnings yield stocks), shifted to mid-capsecurities and those with high-quality earnings factors, andmoved into stocks with riskier factors such as volatility, distressand leverage.

Over the period, the Fund increased its positions in consumercyclicals, healthcare and real estate. Other significant sectorshifts included moves into energy and retail. The Fund shifted outof certain value-oriented sectors such as finance, basic materialsand capital goods. At the end of the mid-year period, the largestpositive sector tilts were toward consumer cyclicals, healthcareand Internet. The largest negative sector tilts were away fromcapital goods, consumer staples and financials.




Distribution ServicesThe Fund is distributed through us, HSBC Investment Funds(Canada) Inc. (our wholly owned subsidiary and affiliate) andHSBC Securities (Canada) Inc. (an affiliate) directly or through itsdivision, HSBC InvestDirect. We pay distribution and servicingfees to them based on the amount of assets held in the investor’s


1

account, and additionally, in some cases, on the amount of theinitial purchase. If you hold units of this Fund and/or other HSBCMutual Funds in a registered plan with HSBC Investment Funds(Canada) Inc., they may charge you an annual fee to cover theannual administration costs of the plan. We permit HSBCInvestment Funds (Canada) Inc. to collect these fees byredeeming sufficient units of the Fund with the highest marketvalue in your registered plan.


HSBC U.S. Equity Fund – Investor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.38) (0.73) (0.66) (0.63) (0.51) (0.41)Realized gains (losses) 0.84 1.66 3.24 2.96 3.24 2.56Unrealized gains (losses) 1.24 0.33 (1.27) 1.98 0.95 3.92

Total increase

(decrease) from

operations (2) $1.94 $1.93 $2.11 $4.80 $4.10 $6.34



From dividends – (0.08) (0.21) – – –From capital gains – (0.58) (0.56) – – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $(0.66) $(0.77) $– $– $–


period (2) $34.68 $32.73 $31.43 $29.96 $24.96 $20.84


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC U.S. Equity Fund – Advisor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.71 $0.82 $(0.19) $2.14 $1.51 $2.83



From dividends – (0.03) (0.09) – – –From capital gains – (0.28) (0.24) – – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $(0.31) $(0.33) $– $– $–


period (2) $14.88 $14.09 $13.61 $13.00 $10.89 $9.09


2


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC U.S. Equity Fund – Premium Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $1.64 $1.64 $1.87 $3.48 $3.43 $5.18



From dividends – (0.14) (0.25) (0.03) – –From capital gains – (0.50) (0.49) – – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $(0.64) $(0.74) $(0.03) $– $–


period (2) $28.01 $26.36 $25.27 $24.06 $19.96 $16.57


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $72,989 $66,660 $59,431 $54,416 $27,171 $12,803Number of units outstanding(in 000s) (4) 2,606 2,529 2,351 2,261 1,361 773Management expense ratio(�MER�) (5) 1.68% 1.70% 1.69% 1.69% 1.74% 1.77%MER before absorbed orwaived fees (5) 1.68% 1.70% 1.69% 1.69% 1.74% 1.77%Trading expense ratio (6) 0.04% 0.04% 0.05% 0.07% 0.10% 0.09%Portfolio turnover rate (7) 50.59% 94.02% 90.70% 111.86% 136.44% 84.43%NAV per unit (4) $28.01 $26.36 $25.27 $24.06 $19.96 $16.57

HSBC U.S. Equity Fund – Manager Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $1.35 $1.44 $1.36 $3.28 $2.70 $4.18




Total annual

distributions (2,3) $– $(0.61) $(0.69) $(0.05) $– $–


period (2) $22.68 $21.33 $20.50 $19.60 $16.25 $13.42


3


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC U.S. Equity Fund – Institutional Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


beginning of period (2) $15.55 $14.86 $14.15 $11.61 $– $–


operations:


distributions) (0.01) (0.02) (0.02) (0.02) (0.01) –Realized gains (losses) 0.40 0.78 1.54 1.29 0.73 0.23Unrealized gains (losses) 0.59 0.14 (0.21) 0.63 1.24 0.13

Total increase

(decrease) from

operations (2) $1.09 $1.22 $1.69 $2.13 $2.09 $0.37




Total annual

distributions (2,3) $– $(0.56) $(0.66) $(0.07) $– $–


period (2) $16.65 $15.55 $14.86 $14.15 $11.61 $–


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $1,667 $1,569 $1,719 $1,183 $335 $–Number of units outstanding(in 000s) (4) 100 101 116 84 29 –Management expense ratio(�MER�) (5) 0.14% 0.13% 0.13% 0.15% 0.13% 0.23%MER before absorbed orwaived fees (5) 0.14% 0.13% 0.13% 0.15% 0.13% 0.23%Trading expense ratio (6) 0.04% 0.04% 0.05% 0.07% 0.10% 0.09%Portfolio turnover rate (7) 50.59% 94.02% 90.70% 111.86% 136.44% 84.43%NAV per unit (4) $16.65 $15.55 $14.86 $14.15 $11.61 $–










4






-30.0%

9.1% 8.7%

-1.7%

7.1%

43.9%

19.8% 20.0%7.5% 6.2% 6.0%

-60%

-40%

-20%

0%

20%

40%

60%



-30.0%

9.1% 8.7%

-1.7%

7.1%

43.9%

19.7% 19.4%7.3% 5.7% 5.6%

-60%

-40%

-20%

0%

20%

40%

60%



-1.2%

7.7%

44.7%

20.4% 20.7%

8.1% 6.8% 6.3%

-10%

0%

10%

20%

30%

40%

50%

60%



-29.3%

10.3% 9.9%

-0.6%

8.4%

45.5%

21.1% 20.9%8.2% 7.0% 6.3%

-60%

-40%

-20%

0%

20%

40%

60%



5


-28.5%

11.4%

22.6%

9.8% 8.5% 7.1%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302008 2009 2010* 2011* 2012* 2013* 2014* 2015 2016 2017 2018

* The Institutional Series was fully redeemed during 2010. There wereno unitholders during the years of 2011 to 2014; however, the seriesremains in offer at period-end.



of NAV

InformationTechnology 28.16%Healthcare 15.85%Consumer Discretionary 15.19%Financials 12.14%Energy 7.24%Industrials 6.59%Real Estate 5.08%Consumer Staples 4.35%Materials 2.00%Utilities 1.58%Telecommunication Services 1.08%Cash & Equivalents 0.74%Total 100.00%


of NAV

Apple Inc. 3.89%Microsoft Corp. 3.36%Amazon.com Inc. 2.72%Facebook Inc. 2.50%Alphabet Inc., Class A 1.57%The Hanover Insurance Group Inc. 1.57%Alphabet Inc. 1.56%Walmart Inc. 1.34%Cabot Oil & Gas Corp., Class A 1.33%Mastercard Inc., Class A 1.24%McDonald’s Corp. 1.23%Johnson & Johnson 1.18%UnitedHealth Group Inc. 1.18%Popular Inc. 1.11%Copart Inc. 0.92%The Home Depot Inc. 0.89%Chevron Corp. 0.88%JPMorgan Chase & Co. 0.86%Prologis Inc. 0.83%Synovus Financial Corp. 0.80%Adobe Systems Inc. 0.77%Liberty Broadband Corp. 0.76%Berkshire Hathaway Inc., Class B 0.75%Express Scripts Holding Co. 0.75%NetApp Inc. 0.75%Total ofTop 25 Holdings 34.74%



6





How to reach us


Vancouver


Toronto








Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, Bank of Canada.



018-

08)D

FS

HSBC European Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBCEuropean Fund.

We are the manager, trustee and primary investment advisor ofthe Fund. We have hired HSBC Global Asset Management(France), as a sub-advisor to provide portfolio management andinvestment advisory services to the Fund. For an explanation ofthe relationship between us and the sub-advisor, see the sectionSelection of Sub-Advisors in the Fund’s Simplified Prospectus.




Results of OperationsAs of June 30, 2018, the Fund’s net assets increased by 4.9% to$44.6 million from $42.5 million at the end of 2017. Of thisincrease, $3.0 million was attributable to net contributions to theFund, partially offset by a $0.9 million loss attributable toinvestment performance.

Investment PerformanceThe HSBC European Fund (Investor Series) lost 1.75% in thesix-month period ending June 30, 2018, while the benchmarkMSCI Europe Index (C$) rose 1.59% over the same period.

Overall, the Fund’s sector allocation was detrimental to relativeperformance. The Fund held underweight positions in sectorswith high valuations – such as consumer durables, technologyhardware and equipment, and semiconductors – and wasoverweight in telecommunication, transportation and banks.Positive impacts on performance came from the Fund’soverweight positions in software and healthcare equipment.

Stock selection also had a negative impact on performance in thesecond quarter. Holdings in an Irish Food Company, Germanpostal service and courier company, and a German multinationalbuilding materials company detracted from performance, withthe latter two companies underperforming after disappointingresults and several analyst downgrades. Stock selections that

contributed to performance were an Irish corrugated packingcompany, a French multinational professional services andbusiness consulting corporation and French globaloutsourcing company.

Recent DevelopmentsOver the first half of 2018, the Fund Manager increased theFund’s exposure to the healthcare sector, took profits on TullowOil (which has the highest risk profile within the Fund’s selectedenergy stocks) and bought more large caps with a late-cyclicalprofile (such as Siemens and Bayer), which have beenundervalued and unfairly penalized since the beginning ofthe year.

The Fund now holds overweight positions in industrials,healthcare, telecommunications and financials, and underweightpositions in consumer goods and utilities.

Investor morale has continued to be dented by growinguncertainty – over the political situation in Italy, migrant crisis,trade tensions and the end of quantitative easing in the eurozone– and macroeconomic data confirming a normalization ofeconomic growth after an exceptional 2017.

Having been bullish at the beginning of the year, investors havebecome risk averse and extremely selective in their investments.Having said that, valuations remain attractive and should help tosupport the markets. The Fund Manager still expects profits inEurope to increase by nearly 10% this year.




HSBC European Fund

1

We have entered into a sub-advisory agreement with HSBCGlobal Asset Management (France), a related sub-advisor, underwhich HSBC Global Asset Management (France) providesinvestment advice and portfolio management services to theFund. We pay HSBC Global Asset Management (France) a feebased on assets under management, calculated daily and paidquarterly. For more information on our ability to hire sub-advisors,see the section Organization and Management of the HSBCMutual Funds in the Fund’s Simplified Prospectus.



HSBC European Fund – Investor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.37) (0.71) (0.62) (0.68) (0.60) (0.52)Realized gains (losses) 0.68 1.95 2.37 1.30 2.25 1.16Unrealized gains (losses) (1.55) 2.29 (5.15) 2.92 (2.63) 4.84

Total increase

(decrease) from

operations (2) $(0.54) $4.32 $(2.68) $4.28 $(0.21) $6.06



From dividends – (0.06) (0.14) (0.11) (0.17) (0.04)From capital gains – – – – – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $(0.06) $(0.14) $(0.11) $(0.17) $(0.04)


period (2) $29.66 $30.19 $25.98 $28.61 $24.50 $24.76


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC European Fund

2

HSBC European Fund – Advisor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.41 $2.27 $(1.34) $2.00 $(0.33) $3.12




Total annual

distributions (2,3) $– $(0.03) $(0.08) $(0.06) $(0.08) $(0.03)


period (2) $15.25 $15.55 $13.42 $14.19 $12.19 $12.32


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC European Fund – Premium Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.49) $2.48 $(1.54) $2.33 $(0.35) $3.82




Total annual

distributions (2,3) $– $(0.14) $(0.17) $(0.16) $(0.19) $(0.09)


period (2) $17.75 $18.02 $15.50 $17.08 $14.62 $14.77


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC European Fund

3

HSBC European Fund – Manager Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017*

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


beginning of period (2) $– $9.87 $10.76 $9.24 $10.00 $–


operations:

Total revenue – 0.03 0.26 0.28 0.10 –Total expenses (excluding

distributions) – 0.03 (0.16) (0.17) (0.07) –Realized gains (losses) – 0.14 0.66 0.46 0.66 –Unrealized gains (losses) – 0.02 (3.34) 1.02 (1.17) –

Total increase

(decrease) from

operations (2) $– $0.22 $(2.58) $1.59 $(0.48) $–



From dividends – – (0.16) (0.16) (0.17) –From capital gains – – – – – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $– $(0.16) $(0.16) $(0.17) $–


period (2) $– $– $9.87 $10.76 $9.24 $–


June 30,

2018

Dec. 31,

2017*

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $– $– $11 $51 $39 $–Number of units outstanding(in 000s) (4) – – 1 5 4 –Management expense ratio(�MER�) (5) – 0.00% 1.62% 1.61% 1.32% n/aMER before absorbed orwaived fees (5) – 8.78% 6.00% 2.51% 1.32% n/aTrading expense ratio (6) – 0.22% 0.36% 0.14% 0.17% 0.12%Portfolio turnover rate (7) – 44.82% 105.18% 45.64% 50.18% 27.61%NAV per unit (4) $– $– $9.87 $10.76 $9.24 $–

* The Manager Series was fully redeemed during 2017; however, itremains in offer as at period-end.

HSBC European Fund – Institutional Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


beginning of period (2) $11.90 $10.27 $11.33 $9.71 $10.00 $–


operations:

Total revenue 0.28 0.32 0.32 0.25 0.30 –Total expenses (excluding

distributions) (0.03) (0.06) (0.04) (0.04) (0.02) –Realized gains (losses) 0.27 0.80 1.03 0.50 0.96 –Unrealized gains (losses) (0.61) 0.90 (2.33) 1.04 (1.41) –

Total increase

(decrease) from

operations (2) $(0.09) $1.96 $(1.02) $1.75 $(0.17) $–



From dividends – (0.29) (0.28) (0.29) (0.28) –From capital gains – – – – – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $(0.29) $(0.28) $(0.29) $(0.28) $–


period (2) $11.81 $11.90 $10.27 $11.33 $9.71 $–


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $286 $287 $328 $761 $385 $–Number of units outstanding(in 000s) (4) 24 24 32 67 40 –Management expense ratio(�MER�) (5) 0.52% 0.54% 0.39% 0.39% 0.22% –MER before absorbed orwaived fees (5) 0.58% 0.56% 0.39% 0.39% 0.22% –Trading expense ratio (6) 0.09% 0.22% 0.36% 0.14% 0.17% 0.12%Portfolio turnover rate (7) 15.38% 44.82% 105.18% 45.64% 50.18% 27.61%NAV per unit (4) $11.81 $11.90 $10.27 $11.33 $9.71 $–



HSBC European Fund

4













-37.0%

15.3%

-3.8%-13.0%

16.9%

32.6%

-0.5%

17.3%

-8.7%

16.4%

-1.8%

-60%

-40%

-20%

0%

20%

40%

60%



-37.1%

15.3%

-3.8%-13.0%

16.9%

32.6%

-0.5%

16.9%

-4.9%

16.1%

-1.9%

-60%

-40%

-20%

0%

20%

40%

60%


HSBC European Fund

5


-12.4%

18.0%

33.4%

0.1%

17.9%

-8.2%

17.1%

-1.5%

-20%

-10%

0%

10%

20%

30%

40%



-36.3%

16.5%

-2.8%-12.0%

18.2%

-6.8%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302008 2009 2010 2011 2012* 2013* 2014* 2015 2016 2017* 2018*

* The Manager Series was fully redeemed during 2012. There were nounitholders during the years of 2013 and 2014. This series was fullyredeemed during the first half of 2017; however, the series remains inoffer as at period-end.


-35.6%

17.8% 19.7%

-6.9%

18.7%

-0.8%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302008 2009 2010* 2011* 2012* 2013* 2014* 2015 2016 2017 2018

* The Institutional Series was fully redeemed during 2010. There wereno unitholders during the years of 2011 to 2014.



of NAV

Financials 20.52%Industrials 17.14%Healthcare 11.94%Consumer Staples 10.08%Materials 9.53%Energy 7.80%Telecommunication Services 6.18%Consumer Discretionary 5.82%InformationTechnology 5.28%Utilities 2.20%Cash & Equivalents 3.51%Total 100.00%

>


of NAV

United Kingdom 23.96%France 21.11%Germany 16.11%Netherlands 10.57%Switzerland 7.68%Italy 4.71%Spain 2.96%Ireland 2.95%Denmark 1.43%Jersey 1.41%Sweden 1.20%Luxembourg 0.97%Belgium 0.94%Austria 0.49%Cash & Equivalents 3.51%Total 100.00%

HSBC European Fund

6


of NAV

Royal Dutch Shell PLC, Class A 3.16%Bayer AG 2.78%Novartis AG 2.76%AstraZeneca PLC 2.69%Cap Gemini SA 2.46%BP PLC 2.26%Enel SpA 2.20%Siemens AG 2.11%Allianz SE 2.02%Prudential PLC 1.96%Société Générale SA 1.94%Total SA 1.89%RioTinto PLC 1.88%Heineken NV 1.84%AXA SA 1.80%ING Groep NV 1.76%Reckitt Benckiser Group PLC 1.76%Banco Santander SA 1.68%Atos 1.67%Koninklijke Philips NV 1.67%Nestle SA 1.66%Vodafone Group PLC 1.66%Orange SA 1.62%Shire PLC 1.61%British AmericanTobacco PLC 1.60%Total ofTop 25 Holdings 50.44%


HSBC European Fund

7





How to reach us


Vancouver


Toronto












018-

08)D

FS

HSBC AsiaPacific Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBCAsiaPacific Fund.

We are the manager, trustee and primary investment advisor ofthe Fund. We have entered into a sub-advisory agreement withHSBC Global Asset Management (Hong Kong) Limited, underwhich HSBC Global Asset Management (Hong Kong) Limitedprovides investment advice and portfolio management servicesto the Fund. For an explanation of the relationship between usand the sub-advisor, see the section Selection of Sub-Advisors inthe Fund’s Simplified Prospectus.





Investment PerformanceThe HSBC AsiaPacific Fund (Investor Series) fell 2.92% over thesix-month period ending June 30, 2018, while the benchmarkMSCI All Country Asia Pacific ex-Japan Index (C$) rose 0.62%over the same period.

Stock selection in India had a negative impact on performance,driven by stock-specific challenges around earnings (in the autosector) and intense competitive pressures (intelecommunications). Holdings in Taiwan also detracted, whilestock selection in China, Singapore and Thailand contributedto performance.

Market sentiment was driven lower this year with concerns overthe impact of escalating trade tensions, which have now resultedin new tariffs between the US and its key trading partners,including China. Softer economic data from China in May, the

strength of the US dollar and higher oil prices also weighed onsentiment in the region. Fundamentals remain fairly sound,particularly in China, which has seen growing industrial profitsand overall positive quarterly earnings results from its cyclicalsectors. In the second quarter, foreigners turned into net sellersof Asian equities, contributing to a broad-based weakness inAsian currencies. The strong US dollar weighed heavily onAssociation of Southeast Asian (ASEAN) member countries,which generally underperformed. New Zealand, Taiwan andAustralia were the top-performing markets.

Recent DevelopmentsAlthough trade barriers remain a key risk to Asian economies, thebroader trajectory of global economic growth remains strong.With the recent pullback in markets, valuations in Asia havemoved to more attractive territory and provide a better entry pointfor the long-term investor. While consensus earnings forecastshave been trimmed for 2018/2019, the earnings per share growthforecast for the region for 2018 remains a healthy 13%. Otherkey risks are a stronger US dollar, a higher oil price and a moreaggressive rate hike cycle in the US.

While China’s growth and demand shows some signs ofsoftening (with some contribution from tightening policies), it istoo early to say if this represents a turning point. Currentfundamentals in China remain more solid than during the lastmajor equity correction in 2015. India’s reform agenda supportsgrowth over the medium to long term, despite short-termchallenges around inflation and the fiscal deficit.

The ASEAN region remains an attractive destination for foreigndirect investment given its competitive labour costs andexposure to a burgeoning trade and economic block.





1


We have entered into a sub-advisory agreement with HSBCGlobal Asset Management (Hong Kong) Limited (an affiliate),under which HSBC Global Asset Management (HongKong) Limited provides investment advice and portfoliomanagement services to the Fund. We pay HSBC Global AssetManagement (Hong Kong) Limited an investment advisory feefrom the Fund based on assets under management, calculateddaily and paid quarterly. For more information on our ability to hiresub-advisors, see the section Organization and Management ofthe HSBC Mutual Funds in the Fund’s Simplified Prospectus.


Related Brokerage CommissionsFrom time to time, the Fund may enter into purchases and salesof securities, derivative instruments, foreign exchange contractsor other instruments with The Hongkong & Shanghai BankingCorporation Limited, HSBC Securities (Asia) Ltd. or other dealersthat are members of the HSBC Group (“Related Brokers”). TheseRelated Brokers may earn commissions or spreads provided thatsuch trades are made on terms and conditions comparable tothose offered by or to unrelated parties. During the period endedJune 30, 2018, the Fund paid commissions to Related Brokersamounting to $397 (June 30, 2017 – $47).

Financial HighlightsThe following tables show selected key financial informationabout the Fund and are intended to help you understand theFund’s financial performance for the six-month period endedJune 30, 2018, and for the last five years ended December 31, asapplicable. In the year a fund is established, “period” representsthe period from inception to December 31 or June 30 of thatfiscal year, as applicable. This information is derived from theFund’s unaudited semi-annual financial statements and theaudited annual financial statements. The information in thefollowing tables is based on prescribed regulations, and as aresult, is not expected to add due to the increase/decrease in net

assets from operations being based on average units outstandingduring the period and all other numbers being based on actualunits outstanding at the relevant point in time.

HSBC AsiaPacific Fund – Investor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.24) (0.44) (0.34) (0.37) (0.33) (0.30)Realized gains (losses) 0.61 1.90 0.66 1.24 1.44 0.31Unrealized gains (losses) (1.19) 2.12 (0.25) (0.46) (0.15) 0.28

Total increase

(decrease) from

operations (2) $(0.54) $4.00 $0.44 $0.86 $1.40 $0.68



From dividends – – (0.05) (0.33) (0.11) (0.07)From capital gains – – – – – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $– $(0.05) $(0.33) $(0.11) $(0.07)


period (2) $17.95 $18.49 $14.50 $14.08 $13.60 $12.35


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC AsiaPacific Fund – Advisor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.37) (0.68) (0.53) (0.53) (0.44) (0.39)Realized gains (losses) 0.86 2.63 0.78 1.77 1.88 0.47Unrealized gains (losses) (1.11) 2.28 (2.70) 3.97 – 0.51

Total increase

(decrease) from

operations (2) $(0.24) $4.83 $(1.52) $5.81 $2.20 $1.04




Total annual

distributions (2,3) $– $– $(0.05) $(0.13) $(0.07) $(0.07)


period (2) $25.18 $25.97 $20.41 $18.67 $17.54 $15.83


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC AsiaPacific Fund – Premium Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.60) $3.41 $0.56 $0.99 $1.10 $0.59




Total annual

distributions (2,3) $– $– $(0.11) $(0.35) $(0.16) $(0.12)


period (2) $15.88 $16.32 $12.74 $12.36 $11.94 $10.84


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



3

HSBC AsiaPacific Fund – Manager Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(1.43) $6.29 $0.92 $1.43 $2.39 $1.25




Total annual

distributions (2,3) $– $(0.16) $(0.33) $(0.74) $(0.39) $(0.32)


period (2) $28.08 $28.79 $22.49 $21.56 $20.87 $18.95


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC AsiaPacific Fund – Institutional Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.73) $6.24 $1.27 $1.81 $2.26 $1.28




Total annual

distributions (2,3) $– $(0.43) $(0.53) $(0.90) $(0.57) $(0.48)


period (2) $25.48 $25.97 $20.28 $19.70 $19.03 $17.28


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013





4













-39.7%

42.3%

10.5%

-20.2%

11.9%5.6% 10.9% 5.9% 3.4%

27.5%

-2.9%

-60%

-40%

-20%

0%

20%

40%

60%



-39.7%

42.2%

10.5%

-19.4%

11.9%5.5%

11.1% 7.2% 9.6%

27.3%

-3.0%

-60%

-40%

-20%

0%

20%

40%

60%



5


-19.3%

12.5%6.2%

11.5%6.5% 4.0%

28.1%

-2.7%

-30%

-20%

-10%

0%

10%

20%

30%

40%



-39.0%

43.7%

11.9%

-19.4%

13.2%6.8% 12.1% 6.8% 5.8%

28.7%

-2.5%

-60%

-40%

-20%

0%

20%

40%

60%



-38.4%

45.2%

12.9%

-18.5%

14.4%7.9% 13.3% 8.2% 5.6%

30.2%

-1.9%

-60%

-40%

-20%

0%

20%

40%

60%




of NAV

Financials 27.63%InformationTechnology 25.55%Consumer Discretionary 14.80%Materials 6.60%Energy 4.98%Healthcare 4.82%Industrials 4.67%Telecommunication Services 3.32%Utilities 2.00%Real Estate 1.51%Consumer Staples 1.05%Cash & Equivalents 3.07%Total 100.00%

>


of NAV

China 23.15%South Korea 13.49%India 11.83%Australia 10.92%Hong Kong 10.68%Taiwan 8.29%Cayman Islands 7.26%Indonesia 3.37%Luxembourg 2.39%Singapore 2.07%United States of America 1.31%Papua New Guinea 1.27%Thailand 0.90%Cash & Equivalents 3.07%Total 100.00%


6


of NAV

Tencent Holdings Ltd. 6.40%Samsung Electronics Co., Ltd. 4.57%AIA Group Ltd. 3.99%Commonwealth Bank of Australia 3.09%Glenmark Pharmaceuticals Ltd. 3.03%BHP Billiton Ltd. 2.89%Vipshop Holdings Ltd. 2.79%BOC Hong Kong (Holdings) Ltd. 2.69%L’Occitane International SA 2.39%China Construction Bank Corp., Class H 2.34%Challenger Ltd. 2.28%Doosan Bobcat Inc. 2.11%Delta Electronics Inc. 2.09%CNOOC Ltd. 2.07%Sea Ltd. 2.07%Alibaba Group Holding Ltd., ADR 1.99%Taiwan Semiconductor Manufacturing Co., Ltd., ADR 1.98%SK Hynix Inc. 1.87%Vedanta Ltd. 1.82%China Biologic Products Holdings Inc. 1.79%Taiwan Semiconductor Manufacturing Co., Ltd. 1.68%ICICI Bank Ltd. 1.61%National Australia Bank Ltd. 1.59%Singapore Exchange Ltd. 1.57%China Resources Land Ltd. 1.51%Total ofTop 25 Holdings 62.21%



7





How to reach us


Vancouver


Toronto












018-

08)D

FS

HSBC Chinese Equity Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC ChineseEquity Fund.





Results of OperationsAs of June 30, 2018, the Fund’s net assets decreased by 2.5% to$192.9 million from $197.8 million at the end of 2017.Of thisdecrease, $5.5 million was attributable to net withdrawals fromthe Fund, mitigated by a $0.6 million gain attributable toinvestment performance.

Investment PerformanceThe HSBC Chinese Equity Fund (Investor Series) fell 0.11% forthe six-month period ending June 30, 2018, while the benchmarkMSCI China 10/40 Net Index (C$) rose 2.80% over thesame period.

The Fund’s underperformance against the benchmark can partlybe explained by increased volatility in the equity market, whichresulted in a larger deviation of share price from its fair value.Unsuccessful stock selection in the consumer discretionarysector also detracted from performance, as China’s policy tolower tariffs for imported autos depressed the share priceperformance of local automakers from March onwards. Anunderweight position in utilities also dragged on performance asthe sector rallied after the government implemented policies insupport of the development of renewable energy.

In 2018, sentiment in the Chinese equity market was negativelyimpacted by escalating trade tensions between the US andChina, as well as softer economic data that triggered concerns ofa domestic economic slowdown. Unimpressive macro data andthe rising risk of an imminent trade war put pressure on therenminbi near the end of June, leading to a continuous de-ratingin Chinese equity valuations even though earnings expectationshave remained relatively stable.

Recent DevelopmentsAlthough rising concerns about a US-China trade war anduncertainty in global monetary policies have led to increasedvolatility in equity markets, the Fund Manager does not believethese headwinds are altering China’s resilient economicfundamentals.

Year to date, macro data has been steady. China’s economy andequity market are supported through supply-side andstate-owned enterprise reforms, as well as the opening up ofcapital and financial markets. Debt levels and credit risks shouldbe contained, as macro policy adjustments to offset potentialnegative impacts from slowing domestic activity and risingexternal headwinds are unlikely to derail financial deleveragingefforts. With the consumer price index reasonably low, liquidityshould be quite supportive to the equity market. The valuationconverging between A and H-share markets looks to be amulti-year trend, and the offshore Chinese market, with arelatively higher dividend yield and lower valuation, will continueto attract southbound inflow and international money. Given theunderlying strength of the economy, the Fund Manager believesthe offshore Chinese equity market warrants further gains in theremainder of 2018.





1




Related Brokerage CommissionsFrom time to time, the Fund may enter into purchases and salesof securities, derivative instruments, foreign exchange contractsor other instruments with The Hongkong & Shanghai BankingCorporation Limited, HSBC Securities (Asia) Ltd. or other dealersthat are members of the HSBC Group (“Related Brokers”). TheseRelated Brokers may earn commissions or spreads provided thatsuch trades are made on terms and conditions comparable tothose offered by or to unrelated parties. During the period endedJune 30, 2018, the Fund paid commissions to Related Brokersamounting to $24,250 (June 30, 2017 – $11,999).

Financial HighlightsThe following tables show selected key financial informationabout the Fund and are intended to help you understand theFund’s financial performance for the six-month period endedJune 30, 2018, and for the last five years ended December 31, asapplicable. In the year a fund is established, “period” representsthe period from inception to December 31 or June 30 of thatfiscal year, as applicable. This information is derived from theFund’s unaudited semi-annual financial statements and theaudited annual financial statements. The information in thefollowing tables is based on prescribed regulations, and as aresult, is not expected to add due to the increase/decrease in net

assets from operations being based on average units outstandingduring the period and all other numbers being based on actualunits outstanding at the relevant point in time.

HSBC Chinese Equity Fund – Investor Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.47) (0.78) (0.62) (0.70) (0.54) (0.49)Realized gains (losses) 2.21 4.42 (0.14) 4.40 2.27 1.22Unrealized gains (losses) (2.13) 5.83 (1.54) (1.75) 1.14 0.81

Total increase

(decrease) from

operations (2) $0.14 $10.04 $(1.70) $2.72 $3.44 $2.08



From dividends – – – (0.09) (0.03) (0.05)From capital gains – – – – – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $– $– $(0.09) $(0.03) $(0.05)


period (2) $34.55 $34.59 $24.66 $26.24 $24.10 $20.36


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC Chinese Equity Fund – Advisor Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $1.89 $10.26 $(1.16) $3.38 $2.62 $2.04



From dividends – – – (0.08) (0.02) (0.04)From capital gains – – – – – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $– $– $(0.08) $(0.02) $(0.04)


period (2) $35.02 $35.04 $25.01 $26.57 $24.41 $20.61


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Chinese Equity Fund – Premium Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.06) $5.82 $(0.65) $0.19 $2.23 $1.10




Total annual

distributions (2,3) $– $– $(0.08) $(0.13) $(0.09) $(0.10)


period (2) $19.67 $19.63 $13.91 $14.80 $13.59 $11.48


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



3

HSBC Chinese Equity Fund – Manager Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.33) (0.62) (0.52) (0.54) (0.35) (0.32)Realized gains (losses) 2.38 5.18 – 5.36 2.50 1.37Unrealized gains (losses) (2.54) 5.07 (1.41) (1.89) 0.78 0.79

Total increase

(decrease) from

operations (2) $0.11 $10.21 $(1.26) $3.80 $3.59 $2.43




Total annual

distributions (2,3) $– $– $(0.28) $(0.39) $(0.30) $(0.31)


period (2) $37.86 $37.74 $26.71 $28.56 $26.30 $22.22


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Chinese Equity Fund – Institutional Series– Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.15) $12.85 $(1.69) $3.17 $5.13 $3.24




Total annual

distributions (2,3) $– $– $(0.73) $(0.87) $(0.72) $(0.67)


period (2) $42.51 $42.05 $29.26 $31.16 $28.60 $24.15


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013





4













-43.4%

36.9%

-6.2%-19.3%

16.5% 11.8%18.3%

9.2%

-6.0%

40.3%

-0.1%

-60%

-40%

-20%

0%

20%

40%

60%



-43.5%

36.8%

-6.2%-19.3%

16.5% 11.7%18.3%

9.2%

-5.9%

40.1%

-0.1%

-60%

-40%

-20%

0%

20%

40%

60%



5


-18.9%

17.1%12.3%

19.0%9.9%

-5.5%

41.1%

0.2%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%



-42.8%

38.2%

-5.2%-18.4%

17.8% 13.0%19.6%

10.0%

-5.5%

41.3%

0.3%

-60%

-40%

-20%

0%

20%

40%

60%



-42.0%

40.0%

-3.9%-17.3%

19.4% 14.6%21.2%

11.9%

-3.7%

43.7%

1.1%

-60%

-40%

-20%

0%

20%

40%

60%




of NAV

InformationTechnology 26.83%Financials 24.82%Consumer Discretionary 10.19%Consumer Staples 8.36%Energy 8.25%Healthcare 6.50%Real Estate 4.51%Materials 2.22%Telecommunication Services 1.96%Utilities 1.49%Industrials 0.08%Cash & Equivalents 4.79%Total 100.00%


of NAV

Alibaba Group Holding Ltd., ADR 9.37%Tencent Holdings Ltd. 9.18%China Construction Bank Corp., Class H 7.10%Ping An Insurance (Group) Co. of China Ltd., Class H 6.61%Baidu Inc., ADR 4.55%Industrial & Commercial Bank of China Ltd., Class H 3.79%CNOOC Ltd. 3.40%China Petroleum & Chemical Corp., Class H 3.30%China Resources Enterprise Ltd. 2.94%Sino Biopharmaceutical Ltd. 2.88%TAL Education Group 2.69%CSPC Pharmaceutical Group Ltd. 2.40%WuXi Biologics (Cayman) Inc. 2.09%China Overseas Land & Investment Ltd. 1.88%China Unicom (Hong Kong) Ltd. 1.71%Bank of China Ltd. 1.59%Want Want China Holdings Ltd. 1.37%Wynn Macau Ltd. 1.37%China Merchants Bank Co., Ltd., Class H 1.17%China Life Insurance Co., Ltd., Class H 1.09%AIA Group Ltd. 1.07%Sunny OpticalTechnology (Group) Co., Ltd. 1.01%New Oriental Education &Technology Group Inc. 1.00%ChinaTaiping Insurance Holdings Co. Ltd. 0.92%Shenzhou International Group Holdings Ltd. 0.88%Total ofTop 25 Holdings 75.36%



6





How to reach us


Vancouver


Toronto












018-

08)D

FS

HSBC Indian Equity Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC IndianEquity Fund.





Results of OperationsAs of June 30, 2018, the Fund’s net assets decreased by 6.7% to$20.8 million from $22.3 million at the end of 2017. Of thisdecrease, a $2.1 million loss was attributable to investmentperformance, mitigated by a $0.6 million net contribution tothe Fund.

Investment PerformanceThe HSBC Indian Equity Fund (Investor Series) fell 9.33% for thesix-month period ending June 30, 2018, while the benchmarkS&P IFCI/India Investable Index (C$) fell 3.67% over thesame period.

Market volatility negatively impacted the performance of theFund because of the Fund’s value style investing approach. TheFund’s overweight position in financials also detracted as thesector performed poorly partly due to major fraud at the PunjabNational Bank (a stock not held in the portfolio). The Indianbanking sector has been under pressure due to the central bankaccelerating recognition of non-performing loans.

In the first half of 2018, sentiment was negatively impacted bythe rising price of oil (given that India is a major net importer),global trade tensions and an interest rate hike by the central bank

to help contain inflation. The rupee has also fallen to historicallylow levels against the US dollar. There are concerns over thenear-term level of infrastructure spending, and fiscal slippageconcerns on lower than expected tax receipts have alsoweakened sentiment around infrastructure spending. On theupside, India’s GDP growth for the first three months of 2018came in at 7.7% year-on-year, better than consensusexpectations and the fastest quarterly growthsince demonetization.

Recent DevelopmentsWith macro-economic variables deteriorating at the margin, thefiscal deficit may move marginally higher and inflationexpectations have inched up. The central bank is proactivelymanaging inflation and decided to hike rates at its last policymeeting. India’s current account deficit has widened, partly dueto the impact of higher crude oil prices.

The Fund Manager remains constructive on the India story overthe medium to long term. Looking ahead, the GST regime willlead to faster formalization of the economy, broaden the tax base,improve the fiscal situation and make it easier to do business.Policies to structurally repair the banking sector will help revivecredit growth and move the economy forward.

Overall, the Fund Manager continues to prefer cyclical sectorsover defensives, believing that the economy is undergoing agradual recovery. From a long-term perspective, cyclicals are stillvery cheap and the Fund Manager continues to like financials,industrials, consumer discretionary and materials.





1



Related Brokerage CommissionsFrom time to time, the Fund may enter into purchases and salesof securities, derivative instruments, foreign exchange contractsor other instruments with The Hongkong & Shanghai BankingCorporation Limited, HSBC Securities (Asia) Ltd. or other dealersthat are members of the HSBC Group (“Related Brokers”). TheseRelated Brokers may earn commissions or spreads provided thatsuch trades are made on terms and conditions comparable tothose offered by or to unrelated parties. During the period endedJune 30, 2018, the Fund paid commissions to Related Brokersamounting to $61 (June 30, 2017 – $nil).


HSBC Indian Equity Fund – Investor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.20) (0.38) (0.31) (0.33) (0.27) (0.21)Realized gains (losses) 0.29 1.46 (0.24) 0.84 0.04 (0.76)Unrealized gains (losses) (1.38) 1.86 (0.32) (0.59) 3.11 (0.02)

Total increase

(decrease) from

operations (2) $(1.20) $3.20 $(0.71) $0.48 $3.06 $(0.76)




Total annual

distributions (2,3) $– $– $– $– $– $–


period (2) $11.75 $12.96 $9.88 $10.52 $10.10 $7.04


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC Indian Equity Fund – Advisor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(1.30) $3.37 $(0.99) $0.26 $2.88 $(0.91)




Total annual

distributions (2,3) $– $– $– $– $– $–


period (2) $12.34 $13.62 $10.38 $11.00 $10.58 $7.38


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Indian Equity Fund – Premium Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.16) (0.31) (0.24) (0.27) (0.21) (0.16)Realized gains (losses) 0.28 1.29 (0.21) 0.77 0.06 (0.64)Unrealized gains (losses) (1.38) 1.74 (0.15) (0.57) 2.83 1.12

Total increase

(decrease) from

operations (2) $(1.17) $2.98 $(0.44) $0.45 $2.84 $0.53




Total annual

distributions (2,3) $– $– $– $– $– $–


period (2) $11.37 $12.50 $9.48 $10.03 $9.57 $6.65


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



3

HSBC Indian Equity Fund – Manager Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.15) (0.28) (0.23) (0.25) (0.19) (0.14)Realized gains (losses) 0.31 1.52 (0.23) 0.90 0.22 (0.85)Unrealized gains (losses) (1.65) 2.03 (0.33) (0.66) 2.98 0.36

Total increase

(decrease) from

operations (2) $(1.39) $3.55 $(0.62) $0.59 $3.18 $(0.38)




Total annual

distributions (2,3) $– $– $– $– $– $–


period (2) $12.81 $14.06 $10.61 $11.18 $10.63 $7.34


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC Indian Equity Fund – Institutional Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(1.21) $3.76 $(0.28) $0.72 $3.75 $(2.03)




Total annual

distributions (2,3) $– $– $– $– $– $–


period (2) $13.78 $15.02 $11.16 $11.60 $10.88 $7.41


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013





4













11.4%

-47.5%

34.3%

-9.6%

43.3%

4.2%

-6.1%

31.2%

-9.3%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302010 2011 2012 2013 2014 2015 2016 2017 2018


11.4%

-47.5%

34.4%

-9.6%

43.2%

4.0%

-5.7%

31.2%

-9.4%

-80%

-60%

-40%

-20%

0%

20%

40%

60%



5


-47.3%

35.0%

-8.8%

44.0%

4.7%

-5.5%

31.9%

-9.1%

-80%

-60%

-40%

-20%

0%

20%

40%

60%



12.6%

-47.0%

35.8%

-8.6%

44.7%

5.2%

-5.1%

32.5%

-8.9%

-80%

-60%

-40%

-20%

0%

20%

40%

60%



14.1%

-46.2%

37.7%

-7.3%

46.8%

6.6%

-3.8%

34.6%

-8.2%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%




of NAV

Financials 35.43%Consumer Discretionary 16.14%InformationTechnology 12.38%Materials 10.31%Industrials 6.50%Consumer Staples 5.42%Energy 4.60%Utilities 3.00%Healthcare 2.60%Telecommunication Services 1.28%Real Estate 1.13%Cash & Equivalents 1.21%Total 100.00%


of NAV

HDFC Bank Ltd. 8.04%ICICI Bank Ltd. 4.94%Infosys Ltd., ADR 4.89%Axis Bank Ltd. 4.74%Maruti Suzuki India Ltd. 4.57%Housing Development Finance Corp., Ltd. 4.32%ITC Ltd. 4.03%Infosys Ltd. 3.88%Reliance Industries Ltd. 3.82%HCLTechnologies Ltd. 3.61%Grasim Industries Ltd. 3.23%Larsen &Toubro Ltd. 3.02%State Bank of India 2.49%Vedanta Ltd. 2.49%Bandhan Bank Ltd. 2.15%SunTV Network Ltd. 1.96%Jindal Steel & Power Ltd. 1.93%Indian Bank 1.88%Tata Motors Ltd.-A-DVR 1.88%LIC Housing Finance Ltd. 1.86%Indiabulls Housing Finance Ltd. 1.61%Tata Steel Ltd. 1.60%Bajaj Auto Ltd. 1.43%United Spirits Ltd. 1.39%Glenmark Pharmaceuticals Ltd. 1.30%Total ofTop 25 Holdings 77.06%



6





How to reach us


Vancouver


Toronto








Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, Bank of Canada.



018-

08)D

FS

HSBC Emerging Markets Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC EmergingMarkets Fund.





Results of OperationsAs of June 30, 2018, the Fund’s net assets increased by 9.9% to$78.5 million from $71.4 million at the end of 2017. Of thisincrease, $10.6 million was attributable to net contributions tothe Fund, partially offset by a $3.5 million loss attributable toinvestment performance.

Investment PerformanceThe HSBC Emerging Markets Fund (Investor Series) fell 5.03%over the six-month period ending June 30, 2018, while thebenchmark MSCI Emerging Markets Index (C$) fell by 2.00%over the same period.

Overall, the Fund’s underweight positions in healthcare andconsumer staples and overweight exposure to Turkey detractedfrom performance.

Stock selection contributed to performance. A CaymansIsland-based investment holdings company advanced onincreased sentiment for environmental protection, with analystsciting a shortage in hazardous waste treatment supply andincreasing governmental demand for tighter regulations against

illegal waste disposal. A Brazilian pulp and paper companyadvanced on confirmation of a successful bid for its larger rival;the Fund Manager exited its position in the company and tookprofits.

Partially offsetting these gains was a position in a Brazilianeducation company and a Turkish bank, which initially fell due tothe increasing levels of foreign-currency-denominated corporatedebt and the weakening lira, a combination that is puttingpressure on the bank’s balance sheet. This loss was thencompounded following the announcement of snap elections inTurkey. The effect was a monthly slump across Turkish equities,leaving the market at its lowest multiple since 2009.

Recent DevelopmentsThe Fund Manager believes that secular economic developmentin emerging markets remains intact. Global growth continues tobe positive, mainly driven by emerging markets. Although themomentum has slowed, GDP growth in emerging marketscontinues to be strong and, on the whole, inflationary pressuresare contained and have remained benign (with the exception ofsome countries such as Turkey).

Importantly, fundamentals are positive and the growth outlook forcorporate earnings remains in the double digits for 2018.Valuations for emerging market equities also continue tolook attractive.

In the short term, markets may continue to be volatile onconcerns over future tightening from the US Federal Reserve, thepotential for increased trade protectionism, economic transitionin China and geopolitical risks.





1





HSBC Emerging Markets Fund – Investor Series– Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.16) (0.29) (0.23) (0.25) (0.23) (0.22)Realized gains (losses) 0.52 0.82 (0.34) 0.22 0.07 (0.17)Unrealized gains (losses) (1.15) 1.53 0.98 (0.49) 0.41 (0.31)

Total increase

(decrease) from

operations (2) $(0.60) $2.34 $0.66 $(0.24) $0.53 $(0.44)



From dividends – – – (0.05) – –From capital gains – – – – – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $– $– $(0.05) $– $–


period (2) $10.48 $11.03 $8.73 $8.04 $8.40 $7.79


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $7,367 $7,390 $7,063 $7,250 $9,009 $10,313Number of units outstanding(in 000s) (4) 703 670 809 901 1,073 1,311Management expense ratio(�MER�) (5) 2.83% 2.87% 2.77% 2.83% 2.76% 2.87%MER before absorbed orwaived fees (5) 2.83% 2.87% 2.77% 2.83% 2.76% 2.87%Trading expense ratio (6) 0.21% 0.21% 0.40% 0.41% 0.33% 0.31%Portfolio turnover rate (7) 35.98% 49.42% 102.19% 103.59% 79.06% 58.00%NAV per unit (4) $10.48 $11.03 $8.73 $8.04 $8.40 $7.86


2

HSBC Emerging Markets Fund – Advisor Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014*

Dec. 31,

2013


beginning of period (2) $– $– $– $– $12.97 $13.56


operations:

Total revenue – – – – 0.49 0.43Total expenses (excluding

distributions) – – – – (0.34) (0.37)Realized gains (losses) – – – – (0.01) (0.28)Unrealized gains (losses) – – – – 0.80 (0.50)

Total increase

(decrease) from

operations (2) $– $– $– $– $0.94 $(0.72)




Total annual

distributions (2,3) $– $– $– $– $– $–


period (2) $– $– $– $– $– $12.85


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014*

Dec. 31,

2013

NAV (in 000s) (4) $– $– $– $– $– $97Number of units outstanding(in 000s) (4) – – – – – 7Management expense ratio(�MER�) (5) – – – – 2.77% 2.88%MER before absorbed orwaived fees (5) – – – – 2.77% 2.88%Trading expense ratio (6) – – 0.40% 0.41% 0.33% 0.31%Portfolio turnover rate (7) – – 102.19% 103.59% 79.06% 58.00%NAV per unit (4) $– $– $– $– $– $12.97

* The Advisor Series was fully redeemed during 2014; however, theseries remains in offer as at period-end.

HSBC Emerging Markets Fund – Premium Series– Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.99) $2.55 $0.74 $(0.18) $0.65 $(0.39)



From dividends – (0.06) (0.02) (0.10) – –From capital gains – – – – – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $(0.06) $(0.02) $(0.10) $– $–


period (2) $11.14 $11.69 $9.27 $8.52 $8.93 $8.24


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $1,284 $716 $579 $707 $754 $1,433Number of units outstanding(in 000s) (4) 115 61 62 83 84 172Management expense ratio(�MER�) (5) 2.22% 2.54% 2.43% 2.35% 2.20% 2.31%MER before absorbed orwaived fees (5) 2.22% 2.54% 2.43% 2.35% 2.20% 2.31%Trading expense ratio (6) 0.21% 0.21% 0.40% 0.41% 0.33% 0.31%Portfolio turnover rate (7) 35.98% 49.42% 102.19% 103.59% 79.06% 58.00%NAV per unit (4) $11.14 $11.69 $9.27 $8.52 $8.93 $8.32


3

HSBC Emerging Markets Fund – Manager Series– Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013**


beginning of period (2) $– $– $– $– $– $7.13


operations:

Total revenue – – – – – 0.13Total expenses (excluding

distributions) – – – – – (0.06)Realized gains (losses) – – – – – (0.06)Unrealized gains (losses) – – – – – (0.80)

Total increase

(decrease) from

operations (2) $– $– $– $– $– $(0.79)




Total annual

distributions (2,3) $– $– $– $– $– $–


period (2) $– $– $– $– $– $–


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013**

NAV (in 000s) (4) $– $– $– $– $– $–Number of units outstanding(in 000s) (4) – – – – – –Management expense ratio(�MER�) (5) – – – – – 1.59%MER before absorbed orwaived fees (5) – – – – – 1.59%Trading expense ratio (6) – – 0.40% 0.41% 0.33% 0.31%Portfolio turnover rate (7) – – 102.19% 103.59% 79.06% 58.00%NAV per unit (4) $– $– $– $– $– $–

** The Manager Series was fully redeemed during 2013; however, theseries remains in offer as at period-end.

HSBC Emerging Markets Fund – InstitutionalSeries – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.96) $5.03 $1.80 $(0.32) $1.46 $(0.75)




Total annual

distributions (2,3) $– $(0.50) $(0.36) $(0.48) $(0.29) $(0.21)


period (2) $20.44 $21.26 $16.81 $15.43 $16.10 $14.84


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013





4













-48.8%

43.8%

6.2%

-26.7%

16.1%

-4.8%

6.8%

-3.6%

8.6%

26.3%

-5.0%

-80%

-60%

-40%

-20%

0%

20%

40%

60%



-48.8%

43.8%

6.2%

-26.7%

16.1%

-4.9%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302008 2009 2010 2011 2012 2013 2014* 2015* 2016* 2017* 2018*

* The Advisor Series was fully redeemed during 2014; however, it remainsin offer as at period-end.


5


-26.3%

16.8%

-4.0%

7.4%

-3.4%

9.0%

26.8%

-4.7%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%



-48.3%

45.4%

7.4%

-25.7%

17.5%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302008 2009 2010 2011 2012 2013* 2014* 2015* 2016* 2017* 2018*

* The Manager Series was fully redeemed during 2013; however, it remainsin offer as at period-end.


-47.6%

47.3%

8.8%

-24.8%

19.1%

-2.5%

9.4%

-1.2%

11.3%29.5%

-3.9%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%




of NAV

Financials 29.37%InformationTechnology 26.84%Energy 9.67%Consumer Discretionary 8.75%Materials 7.88%Telecommunication Services 4.86%Industrials 3.35%Utilities 2.09%Real Estate 1.91%Mutual Funds 1.70%Consumer Staples 0.39%Cash & Equivalents 3.19%Total 100.00%

>


of NAV

China 22.42%South Korea 15.55%Taiwan 10.82%India 7.86%Russia 6.84%South Africa 6.00%Brazil 5.41%Hong Kong 3.83%Indonesia 2.91%Malaysia 2.82%Turkey 2.65%Switzerland 1.38%Cayman Islands 1.34%Egypt 1.27%Thailand 1.16%United Kingdom 0.90%Bermuda 0.79%Mexico 0.77%Philippines 0.39%Mutual Funds 1.70%Cash & Equivalents 3.19%Total 100.00%


6


of NAV

Samsung Electronics Co., Ltd. 5.46%Tencent Holdings Ltd. 5.19%Alibaba Group Holding Ltd., ADR 3.79%Taiwan Semiconductor Manufacturing Co., Ltd. 3.50%China Construction Bank Corp., Class H 2.95%Infosys Ltd. 2.48%Sberbank of Russia 2.35%Industrial & Commercial Bank of China Ltd., Class H 2.28%Vale SA 2.11%SK Hynix Inc 2.04%Reliance Industries Ltd. 1.94%Naspers Ltd. 1.83%FirstRand Ltd. 1.78%iShares MSCI Emerging Markets Index Fund 1.70%Shinhan Financial Group Co., Ltd. 1.64%Tenaga Nasional Bhd. 1.53%China Shenhua Energy Co., Ltd., Class H 1.42%China Overseas Land & Investment Ltd. 1.41%Credit Suisse AG 1.38%China Conch Venture Holdings Ltd. 1.34%ChunghwaTelecom Co., Ltd. 1.34%Hyundai Motor Co. 1.33%SKTelecom Co., Ltd. 1.30%Anhui Conch Cement Co., Ltd., Class H 1.29%Malayan Banking Bhd. 1.29%Total ofTop 25 Holdings 54.67%



7





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Vancouver


Toronto












018-

08)D

FS

HSBC BRIC Equity Fund



◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC BRICEquity Fund.





Results of OperationsAs of June 30, 2018, the Fund’s net assets decreased by 14.5%to $31.9 million from $37.3 million at the end of 2017. Of thisdecrease, $3.8 million was attributable to net withdrawals fromthe Fund and $1.6 million loss was attributable toinvestment performance.

Investment PerformanceThe HSBC BRIC Equity Fund (Investor Series) lost 5.03% for thesix-month period ending June 30, 2018, while the benchmark lost0.97% over the same period. The benchmark is a weightedcomposite consisting of the MSCI Brazil Net Index (C$) (25%),MSCI Russia Net Index (C$) (25%), MSCI India Net Index (C$)(25%) and MSCI China Net Index (C$) (25%).

Although the Fund’s stock selection was positive in Brazil, thiswas offset by holdings in China and India.

Key contributors to performance included a pulp and papercompany in Brazil, which increased in value after a successful bidfor its larger rival. In the second quarter, the company announcedstrong results and the Fund Manager exited the position at aprofit. The Fund’s holdings in a Russian integrated energycompany also contributed to performance thanks to a higher oil

price and relatively strong equity market. Russia was thebest-performing BRIC equity market during the period due to astronger ruble and increases in the price of oil.

Offsetting some of these gains were holdings in a Brazilianeducational company. In addition, not holding shares in a Russianintegrated oil and gas company had a negative impact on relativeperformance, as these shares rose on the back of the higher oilprice and positive performance of the Russian equity market.

Recent DevelopmentsThe Fund Manager believes that secular economic developmentin emerging markets remains intact. Global growth continues tobe positive, mainly driven by emerging markets. Althoughmomentum has slowed, GDP growth in emerging marketscontinues to be strong and, on the whole, inflationary pressuresare contained and have remained benign (with the exception ofsome countries such as Turkey).

Importantly, fundamentals are positive and the growth outlook forcorporate earnings remains in the double digits for 2018.Valuations for emerging market equities also continue tolook attractive.

In the short term, markets may continue to be volatile onconcerns over future tightening from the US Federal Reserve, thepotential for increased trade protectionism, economic transitionin China and geopolitical risks.





1




HSBC BRIC Equity Fund – Investor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.21) (0.40) (0.27) (0.27) (0.26) (0.24)Realized gains (losses) 0.92 1.05 (0.49) 0.95 0.03 (0.08)Unrealized gains (losses) (1.56) 1.29 2.70 (1.32) 0.17 0.09

Total increase

(decrease) from

operations (2) $(0.60) $2.37 $2.29 $(0.21) $0.33 $0.04




Total annual

distributions (2,3) $– $(0.03) $(0.01) $(0.09) $(0.06) $–


period (2) $12.58 $13.25 $10.95 $8.62 $9.13 $8.84


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC BRIC Equity Fund – Advisor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.22) (0.39) (0.30) (0.32) (0.27) (0.25)Realized gains (losses) 0.93 1.06 (0.58) 0.98 (0.09) (0.06)Unrealized gains (losses) (1.60) 1.17 2.69 (1.32) 0.18 0.03

Total increase

(decrease) from

operations (2) $(0.65) $2.28 $2.15 $(0.23) $0.24 $(0.01)




Total annual

distributions (2,3) $– $(0.03) $(0.01) $(0.08) $(0.05) $–


period (2) $12.62 $13.24 $10.94 $8.64 $9.20 $8.90


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $361 $413 $321 $391 $525 $2,254Number of units outstanding (in000s) (4) 29 31 29 45 57 253Management expense ratio(�MER�) (5) 3.25% 3.20% 3.22% 3.33% 2.96% 2.85%MER before absorbed orwaived fees (5) 3.51% 3.73% 3.43% 3.33% 2.96% 2.85%Trading expense ratio (6) 0.12% 0.14% 0.30% 0.34% 0.19% 0.17%Portfolio turnover rate (7) 19.26% 31.81% 55.60% 99.62% 41.89% 44.58%NAV per unit (4) $12.62 $13.24 $10.94 $8.64 $9.20 $8.91

HSBC BRIC Equity Fund – Premium Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.20) (0.37) (0.26) (0.26) (0.24) (0.22)Realized gains (losses) 0.99 1.18 (0.51) 1.17 – (0.08)Unrealized gains (losses) (2.35) 1.29 3.09 (1.47) 0.22 0.11

Total increase

(decrease) from

operations (2) $(1.27) $2.59 $2.71 $(0.09) $0.40 $0.10




Total annual

distributions (2,3) $– $(0.10) $(0.07) $(0.14) $(0.11) $–


period (2) $13.91 $14.61 $12.07 $9.51 $10.07 $9.75


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $1,591 $863 $796 $947 $1,195 $1,605Number of units outstanding (in000s) (4) 114 59 66 100 119 165Management expense ratio(�MER�) (5) 2.65% 2.74% 2.46% 2.45% 2.37% 2.30%MER before absorbed orwaived fees (5) 2.65% 3.06% 2.53% 2.45% 2.37% 2.30%Trading expense ratio (6) 0.12% 0.14% 0.30% 0.34% 0.19% 0.17%Portfolio turnover rate (7) 19.26% 31.81% 55.60% 99.62% 41.89% 44.58%NAV per unit (4) $13.91 $14.61 $12.07 $9.51 $10.07 $9.76


3

HSBC BRIC Equity Fund – Manager Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.16) (0.29) (0.22) (0.23) (0.18) (0.16)Realized gains (losses) 0.96 1.11 (0.43) 1.22 – (0.07)Unrealized gains (losses) (1.74) 1.23 2.86 (1.26) 0.07 0.03

Total increase

(decrease) from

operations (2) $(0.68) $2.51 $2.59 $0.18 $0.30 $0.08




Total annual

distributions (2,3) $– $(0.17) $(0.13) $(0.18) $(0.16) $–


period (2) $13.15 $13.79 $11.40 $9.01 $9.58 $9.27


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC BRIC Equity Fund – Institutional Series –Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.05) (0.12) (0.05) (0.04) (0.05) (0.04)Realized gains (losses) 1.06 1.20 (0.57) 1.01 0.08 (0.07)Unrealized gains (losses) (1.25) 1.62 3.05 (1.75) 0.14 0.25

Total increase

(decrease) from

operations (2) $0.02 $3.19 $2.84 $(0.28) $0.62 $0.46




Total annual

distributions (2,3) $– $(0.41) $(0.32) $(0.35) $(0.32) $–


period (2) $14.68 $15.27 $12.62 $9.94 $10.53 $10.19


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013





4













-48.6%

59.0%

0.0%

-22.3%

9.4%0.8% 3.9%

-4.7%

27.2% 21.2%

-5.0%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%



-48.6%

58.9%

0.0%

-22.2%

9.5%0.8% 3.8%

-5.2%

26.8% 21.3%

-4.6%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%



5


-21.8%

10.0%

1.3% 4.4%

-4.3%

27.7%21.9%

-4.8%

-30%

-20%

-10%

0%

10%

20%

30%

40%



-48.0%

60.6%

1.1%

-21.4%

10.7%1.8% 4.9%

-4.1%

28.0% 22.4%

-4.6%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%



-47.4%

62.7%

2.4%

-20.3%

12.2%3.3% 6.5%

-2.3%

30.3% 24.2%

-3.9%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%




of NAV

Financials 29.38%Energy 23.07%InformationTechnology 12.26%Materials 11.86%Consumer Discretionary 6.46%Telecommunication Services 3.49%Industrials 3.26%Consumer Staples 2.75%Real Estate 2.35%Utilities 1.66%Healthcare 1.18%Cash & Equivalents 2.28%Total 100.00%

>


of NAV

Russia 27.44%India 22.60%Brazil 21.37%China 18.99%Hong Kong 4.65%Cyprus 1.26%Bermuda 0.95%Cayman Islands 0.46%Cash & Equivalents 2.28%Total 100.00%


6


of NAV

Sberbank of Russia, GDR 6.95%Lukoil PJSC, ADR 5.33%Tencent Holdings Ltd. 4.53%Vale SA 4.20%Banco Bradesco SA 3.39%Gazprom OAO 3.23%Alibaba Group Holding Ltd., ADR 3.14%Novatek OAO 3.12%Infosys Ltd. 2.92%Reliance Industries Ltd. 2.69%Rosneft Oil Co., GDR 2.63%China Construction Bank Corp., Class H 2.58%Itau Unibanco Holding SA, Preferred 2.40%MobileTeleSystems OJSC 2.00%Industrial & Commercial Bank of China Ltd., Class H 1.84%Maruti Suzuki India Ltd. 1.75%HCLTechnologies Ltd. 1.67%Vedanta Ltd. 1.66%Axis Bank Ltd. 1.62%ICICI Bank Ltd. 1.61%China Shenhua Energy Co., Ltd., Class H 1.57%Indiabulls Housing Finance Ltd. 1.56%Petroleo Brasileiro SA, Preferred 1.51%Grasim Industries Ltd. 1.48%Severstal PJSC 1.45%Total ofTop 25 Holdings 66.83%



7





How to reach us


Vancouver


Toronto












018-

08)D

FS

HSBC World Selection®

Diversified Conservative Fund



®World Selection is a registered trademark of HSBC Bank Canada.

◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC WorldSelection Diversified Conservative Fund.






Investment PerformanceThe HSBC World Selection Diversified Conservative Fund(Investor Series) lost 0.07% for the six-month period endingJune 30, 2018, while the benchmark rose 1.42% over the sameperiod. The benchmark is a weighted composite consisting of theFTSE TMX Canada Universe Bond Index (65%), S&P/TSX CappedComposite Index (16%), MSCI World Index (C$) (12%) and FTSETMX Canada 91-Day T-Bill Index (7%).

The Fund held a modestly overweight position in Canadian andglobal equities and an underweight position in fixed income(although within this segment it was overweight in corporatebonds). However, the benefits of this asset-class positioningwere offset by an overweight position in emerging marketinvestments and negative security selection in the global equityportion of the portfolio.


rallied and were up 23% in 2018 to approximately $74 per barrel.The US dollar has gained 4.5% versus the Canadian dollar asexpectations that rates would rise faster in the US increasedits attractiveness.




Canadian growth also looks positive, as evidenced by strongemployment, rising corporate profits and higher commodityprices.

In the first half of 2018, the US Federal Reserve increased ratesby 50 basis points and the Bank of Canada increased itsbenchmark rate by 25 basis points. Two further hikes areexpected in each market in the remainder of 2018.



HSBC World Selection Diversified Conservative Fund

1





HSBC World Selection Diversified ConservativeFund – Investor Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $(0.01) $0.54 $0.59 $0.12 $0.73 $0.54


From income (excludingdividends) – (0.10) (0.09) (0.11) (0.11) (0.08)


Total annual

distributions (2,3) $– $(0.15) $(0.35) $(0.25) $(0.16) $(0.16)


period (2) $12.78 $12.79 $12.40 $12.16 $12.24 $11.63


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC World Selection Diversified ConservativeFund – Advisor Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


beginning of period (2) $– $– $11.57 $11.69 $11.11 $10.74


operations:

Total revenue – – 0.09 0.39 0.34 0.31Total expenses (excluding

distributions) – – (0.08) (0.27) (0.21) (0.19)Realized gains (losses) – – 0.05 0.13 0.08 0.10Unrealized gains (losses) – – 0.01 (0.15) 0.54 0.28

Total increase

(decrease) from

operations (2) $– $– $0.07 $0.10 $0.75 $0.50


From income (excludingdividends) – – – (0.09) (0.09) (0.07)

From dividends – – – (0.05) (0.04) (0.04)From capital gains – – – (0.06) – (0.03)From return of capital – – – – – –

Total annual

distributions (2,3) $– $– $– $(0.20) $(0.13) $(0.14)


period (2) $– $– $– $11.57 $11.69 $11.11


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $– $– $– $143 $163 $194Number of units outstanding (in000s) (4) – – – 12 14 17Management expense ratio(�MER�) (5) – – 2.40%– 2.30% 1.87% 1.84%MER before absorbed orwaived fees (5) – – 2.86%– 2.60% 1.87% 1.84%Trading expense ratio (7) – – 0.02% 0.02% 0.01% 0.01%Portfolio turnover rate (6) – – 17.79% 12.42% 7.85% 21.04%NAV per unit (4) $– $– $– $11.57 $11.69 $11.11

HSBC World Selection Diversified ConservativeFund – Institutional Series – Net Assets perUnit(1)


June 30,

2018

Dec. 31,

2017**

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:

Total revenue 0.05 – 0.31 0.08 – 0.02Total expenses (excluding

distributions) – – (0.04) – – –Realized gains (losses) – – 0.23 0.01 – –Unrealized gains (losses) (0.14) 0.13 0.11 (0.07) (0.02) (0.04)

Total increase

(decrease) from

operations (2) $(0.09) $0.13 $0.61 $0.02 $(0.02) $(0.02)


From income (excludingdividends) – – (0.03) (0.19) – (0.17)

From dividends – – (0.02) (0.10) – (0.11)From capital gains – – (0.07) (0.22) – (0.07)From return of capital – – – – – –

Total annual

distributions (2,3) $– $– $(0.12) $(0.51) $– $(0.35)


period (2) $– $– $10.54 $9.50 $– $9.70


June 30,

2018

Dec. 31,

2017**

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013

NAV (in 000s) (4) $– $– $40 $9 $– $16Number of units outstanding (in000s) (4) – – 4 1 – 2Management expense ratio(�MER�) (5) 0.23% 0.97% 0.52% 0.07% 0.09% 0.35%MER before absorbed orwaived fees (5) 0.44% 1.30% 0.81% 0.07% 0.09% 0.35%Trading expense ratio (7) 0.01% 0.01% 0.02% 0.02% 0.01% 0.01%Portfolio turnover rate (6) 4.08% 8.64% 17.79% 12.42% 7.85% 21.04%NAV per unit (4) $– $– $10.54 $9.50 $– $9.70

** The Institutional Series was fully redeemed during 2017; however, itremains in offer as at period-end.




3




(5) Management expense ratio is based on total expenses (excludingdistributions, commissions and other portfolio transaction costs) forthe stated period and is expressed as an annualized percentage ofdaily average net asset value during the period. In the year a series isestablished, the MER is annualized from the date of inception to theend of the period. The MER may vary from one mutual fund toanother and from one series of units to another. We may have waivedor absorbed certain fees and expenses otherwise payable by theFund. The amount of expenses absorbed or waived is at thediscretion of and can be terminated at any time by us.The Fund may invest in units of other mutual funds and pooled funds.You should note that in addition to the fees and expenses paid by theFund, these other funds have their own operating expenses to pay.The Fund will effectively bear the operating expenses of the otherfunds in proportion to its holdings in the other funds. However, theFund will not invest in units of other funds if the Fund would berequired to pay any management fees in respect of suchinvestments. In addition, the Fund will not make investments in otherfunds if the Fund would be required to pay any sales or redemptionfees in respect of such investments that duplicate a fee payable byunitholders of the Fund.









-5.5%

8.3%

4.8%

1.4%

5.3% 4.8%6.6%

1.3%

4.9% 4.4%

-0.1%

-10%

-5%

0%

5%

10%

15%



4


-6.0%

8.8%

4.8%

1.5%

5.4% 4.8%6.5%

0.7%

-10%

-5%

0%

5%

10%

15%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302008 2009 2010 2011 2012 2013 2014 2015 2016* 2017* 2018*

* The Advisor Series was fully redeemed during 2016; however, the seriesremains in offer as at period-end.


Asset MixPercentage

of NAV

Bonds 62.81%Canadian Equities 17.36%International Equities 12.92%Cash & Equivalents 6.91%Total 100.00%

Top 25 Holdings*Percentage

of NAV

HSBC Canadian Bond Fund - Institutional Series 40.76%HSBC Mortgage Fund - Institutional Series 16.31%HSBC Global Equity Fund - Institutional Series 11.27%HSBC Dividend Fund - Institutional Series 10.75%HSBC Canadian Money Market Fund - Institutional Series 7.28%HSBC Equity Fund - Institutional Series 6.61%HSBC Emerging Markets Debt Fund - Institutional Series 5.74%HSBC Emerging Markets Fund - Institutional Series 1.65%Remaining Holdings -0.37%Total ofTop 25 Holdings 100.00%

* The Fund had less than 25 holdings as at June 30, 2018.




5





How to reach us


Vancouver


Toronto













018-

08)D

FS

HSBC World Selection® DiversifiedModerate Conservative Fund




◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC WorldSelection Diversified Moderate Conservative Fund.






Investment PerformanceThe HSBC World Selection Diversified Moderate ConservativeFund (Investor Series) rose 0.12% for the six-month periodending June 30, 2018, while the benchmark rose 1.92% over thesame period. The benchmark is a weighted composite consistingof the FTSE TMX Canada Universe Bond Index (52%), S&P/TSXCapped Composite Index (22.5%), MSCI World Index (C$)(20.5%) and FTSE TMX Canada 91-Day T-Bill Index (5%).





Recent DevelopmentsThe market environment in the first half of 2018 has been morechallenging than that in 2017 despite continued positivefundamentals. Headwinds have included the removal ofmonetary stimulus, global trade tensions, moderating economicgrowth and volatility in emerging markets. However, overall wecontinue to see a fairly robust global expansion with low inflationand slowly rising rates. Valuations also remain modestly moreattractive for some equity and credit markets than forgovernment bonds and cash.

In the first half of 2018, the US Federal Reserve increased ratesby 50 basis points and the Bank of Canada increased itsbenchmark rate by 25 basis points. Two further hikes areexpected in each market in 2018.




HSBC World Selection Diversified Moderate Conservative Fund

1



HSBC World Selection Diversified ModerateConservative Fund – Investor Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:



Total increase

(decrease) from

operations (2) $0.02 $0.79 $0.73 $0.27 $0.82 $0.90


From income (excludingdividends) – (0.08) (0.08) (0.07) (0.09) (0.07)


Total annual

distributions (2,3) $– $(0.16) $(0.53) $(0.22) $(0.13) $(0.12)


period (2) $13.72 $13.70 $13.07 $12.87 $12.76 $12.01


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC World Selection Diversified ModerateConservative Fund – Advisor Series – Net Assetsper Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013*


beginning of period (2) $10.16 $10.00 $– $– $– $10.40


operations:

Total revenue 0.15 0.19 – – – –Total expenses (excluding

distributions) (0.09) (0.03) – – – –Realized gains (losses) 0.02 0.02 – – – –Unrealized gains (losses) (0.12) 0.03 – – – 0.03

Total increase

(decrease) from

operations (2) $(0.04) $0.21 $– $– $– $0.03


From income (excludingdividends) – (0.05) – – – –

From dividends – (0.05) – – – –From capital gains – – – – – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $(0.10) $– $– $– $–


period (2) $10.16 $10.16 $– $– $– $–


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013*

NAV (in 000s) (4) $462 $263 $– $– $– $–Number of units outstanding (in000s) (4) 46 26 – – – –Management expense ratio(�MER�) (5) 1.96% 1.62% – – – 1.56%MER before absorbed orwaived fees (5) 1.96% 1.62% – – – 1.56%Trading expense ratio (6) 0.02% 0.01% 0.03% 0.05% 0.04% 0.02%Portfolio turnover rate (7) 3.46% 7.85% 31.67% 11.35% 11.29% 23.24%NAV per unit (4) $10.16 $10.16 $– $– $– $–

* The Advisor Series was fully redeemed during 2013; however, itremains in offer as at period-end.

HSBC World Selection Diversified ModerateConservative Fund – Manager Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Net assets per unit, beginning of period (2) $– $– $– $–


Total revenue 0.06 – – –Total expenses (excluding distributions) (0.01) – – –Realized gains (losses) 0.01 – – –Unrealized gains (losses) 0.08 – – –

Total increase (decrease) from operations (2) $0.14 $– $– $–


From income (excluding dividends) – – – –From dividends – – – –From capital gains – – – –From return of capital – – – –

Total annual distributions (2,3) $– $– $– $–

Net assets per unit, end of period (2) $10.14 $– $– $–


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

NAV (in 000s) (4) $10 $– $– $–Number of units outstanding (in 000s) (4) 1 – – –Management expense ratio (�MER�) (5) 0.64% – –– 0.00%MER before absorbed or waived fees (5) 0.65% – –– 0.00%Trading expense ratio (6) 0.02% – – 0.00%Portfolio turnover rate (7) 3.46% – – 0.00%NAV per unit (4) $10.14 $– $– $–


3

HSBC World Selection Diversified ModerateConservative Fund – Institutional Series – NetAssets per Unit(1)


June 30,

2018

Dec. 31,

2017**

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014


period (2) $– $9.48 $9.81 $10.00 $–


Total revenue 0.08 0.05 0.02 0.20 0.02Total expenses (excluding

distributions) – (0.01) – – –Realized gains (losses) 0.02 0.04 – 0.02 –Unrealized gains (losses) 0.20 0.34 (0.50) (0.06) (0.13)


operations (2) $0.30 $0.42 $(0.48) $0.16 $(0.11)


From income (excluding dividends) – – (0.07) (0.11) –From dividends – – (0.09) (0.09) –From capital gains – – (0.39) (0.14) –From return of capital – – – – –

Total annual distributions (2,3) $– $– $(0.55) $(0.34) $–

Net assets per unit, end of period (2) $– $– $9.48 $9.81 $–


June 30,

2018

Dec. 31,

2017**

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

NAV (in 000s) (4) $– $– $58 $544 $–Number of units outstanding (in 000s) (4) – – 6 56 –Management expense ratio (�MER�) (5) 0.14% 0.58% 0.32% 0.09% 0.16%MER before absorbed or waived fees (5) 0.20% 0.61% 0.32% 0.09% 0.16%Trading expense ratio (6) 0.02% 0.01% 0.03% 0.05% 0.04%Portfolio turnover rate (7) 3.46% 7.85% 31.67% 11.35% 11.29%NAV per unit (4) $– $– $9.48 $9.81 $–

** The Institutional Series was fully redeemed during 2017; however, itremains in offer as at period-end.





(5) Management expense ratio is based on total expenses (excludingdistributions, commissions and other portfolio transaction costs) forthe stated period and is expressed as an annualized percentage ofdaily average net asset value during the period. In the year a series isestablished, the MER is annualized from the date of inception to theend of the period. The MER may vary from one mutual fund to

another and from one series of units to another. We may have waivedor absorbed certain fees and expenses otherwise payable by theFund. The amount of expenses absorbed or waived is at thediscretion of and can be terminated at any time by us.The Fund may invest in units of other mutual funds and pooled funds.You should note that in addition to the fees and expenses paid by theFund, these other funds have their own operating expenses to pay.The Fund will effectively bear the operating expenses of the otherfunds in proportion to its holdings in the other funds. However, theFund will not invest in units of other funds if the Fund would berequired to pay any management fees in respect of suchinvestments. In addition, the Fund will not make investments in otherfunds if the Fund would be required to pay any sales or redemptionfees in respect of such investments that duplicate a fee payable byunitholders of the Fund.






Past PerformanceThe performance information shown assumes that alldistributions made by the Fund in the periods shown werereinvested in additional securities of the Fund. The performance


4

information does not take into account sales, redemption,distribution, optional charges or expenses you may be chargedoutside of the Fund or the effect of any income tax you may haveto pay as a result of your investment in the Fund that would havereduced returns or performance. The performance of differentfund series may vary for a number of reasons, includingdifferences in management fees and expenses. The Fund’s pastperformance does not necessarily indicate how it will perform inthe future.



-8.7%

9.5%

5.1%

0.2%

6.1%7.7% 7.2%

2.6%5.6% 6.1%

0.1%

-15%

-10%

-5%

0%

5%

10%

15%



0.2%

6.2%

0.0%

-5%

0%

5%

10%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302011 2012 2013* 2014* 2015* 2016* 2017* 2018

* The Advisor Series was fully redeemed during 2013. There were nounitholders during the years of 2014 to 2017; however, the series remainsin offer as at period-end.


Asset MixPercentage

of NAV

Bonds 49.69%Canadian Equities 24.31%International Equities 20.88%Cash & Equivalents 5.12%Total 100.00%


of NAV

HSBC Canadian Bond Fund - Institutional Series 30.23%HSBC Global Equity Fund - Institutional Series 18.10%HSBC Mortgage Fund - Institutional Series 13.75%HSBC Equity Fund - Institutional Series 12.22%HSBC Dividend Fund - Institutional Series 12.09%HSBC Emerging Markets Debt Fund - Institutional Series 5.71%HSBC Canadian Money Market Fund - Institutional Series 5.26%HSBC Emerging Markets Fund - Institutional Series 2.78%Remaining Holdings -0.14%Total ofTop 25 Holdings 100.00%





5





How to reach us


Vancouver


Toronto













018-

08)D

FS


Diversified Balanced Fund




◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC WorldSelection Diversified Balanced Fund.






Investment PerformanceThe HSBC World Selection Diversified Balanced Fund (InvestorSeries) rose 0.24% for the six-month period ending June 30,2018, while the benchmark rose 2.58% over the same period.The benchmark is a weighted composite consisting of the FTSETMX Canada Universe Bond Index (33%), S&P/TSX CappedComposite Index (30%), MSCI World Index (C$) (32%) and FTSETMX Canada 91-Day T-Bill Index (5%).







Canadian growth also looks positive, as evidenced by strongemployment, rising corporate profits and higher commodityprices. In the first half of 2018, the US Federal Reserve increasedrates by 50 basis points and the Bank of Canada increased itsbenchmark rate by 25 basis points. Two further hikes areexpected in each market in the remainder of 2018.




HSBC World Selection Diversified Balanced Fund

1



HSBC World Selection Diversified BalancedFund – Investor Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.13) (0.27) (0.28) (0.28) (0.27) (0.24)Realized gains (losses) 0.04 0.12 0.84 0.25 0.11 0.31Unrealized gains (losses) (0.02) 0.84 (0.08) – 0.78 1.17

Total increase

(decrease) from

operations (2) $0.04 $1.14 $0.97 $0.44 $0.94 $1.53


From income (excludingdividends) – (0.02) (0.01) – (0.01) (0.01)


Total annual

distributions (2,3) $– $(0.12) $(0.89) $(0.14) $(0.05) $(0.05)


period (2) $15.46 $15.42 $14.40 $14.33 $13.95 $13.01


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC World Selection Diversified BalancedFund – Advisor Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.13) (0.27) (0.29) (0.29) (0.25) (0.22)Realized gains (losses) 0.04 0.11 0.92 0.22 0.11 0.26Unrealized gains (losses) (0.02) 0.76 (0.47) (0.02) 0.79 1.08

Total increase

(decrease) from

operations (2) $0.02 $1.00 $0.60 $0.33 $0.96 $1.37


From income (excludingdividends) – (0.02) (0.01) – (0.01) (0.01)


Total annual

distributions (2,3) $– $(0.11) $(0.80) $(0.11) $(0.03) $(0.05)


period (2) $13.90 $13.88 $12.99 $12.97 $12.65 $11.78


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC World Selection Diversified BalancedFund – Manager Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016*

Net assets per unit, beginning of period (2) $– $– $–


Total revenue 0.08 – –Total expenses (excluding distributions) (0.03) – –Realized gains (losses) 0.01 – –Unrealized gains (losses) 0.07 – 0.17

Total increase (decrease) from operations (2) $0.13 $– $0.17


From income (excluding dividends) – – –From dividends – – –From capital gains – – –From return of capital – – –

Total annual distributions (2,3) $– $– $–

Net assets per unit, end of period (2) $10.20 $– $–


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016*

NAV (in 000s) (4) $24 $– $–Number of units outstanding (in 000s) (4) 2 – –Management expense ratio (�MER�) (5) 0.90% – 1.04%MER before absorbed or waived fees (5) 0.90% – 1.04%Trading expense ratio (6) 0.03% – 0.05%Portfolio turnover rate (7) 3.35% – 43.26%NAV per unit (4) $10.20 $– $–

* The Manager Series was fully redeemed during 2016; however, itremains in offer as at period-end.


3

HSBC World Selection Diversified BalancedFund – Institutional Series – Net Assets perUnit(1)


June 30,

2018

Dec. 31,

2017**

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014**

Dec. 31,

2013




operations:

Total revenue – 0.19 0.11 0.22 0.01 –Total expenses (excluding

distributions) – (0.04) (0.03) – – –Realized gains (losses) – 0.04 0.05 0.04 0.01 –Unrealized gains (losses) (0.03) 0.49 (1.68) (0.09) 0.08 0.06

Total increase

(decrease) from

operations (2) $(0.03) $0.68 $(1.55) $0.17 $0.10 $0.06


From income (excludingdividends) – – (0.01) – – –

From dividends – – (0.14) (0.10) – –From capital gains – – (0.69) (0.18) – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $– $(0.84) $(0.28) $– $–


period (2) $– $– $10.13 $9.90 $– $10.06


June 30,

2018

Dec. 31,

2017**

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014**

Dec. 31,

2013

NAV (in 000s) (4) $– $– $60 $167 $– $47Number of units outstanding (in000s) (4) – – 6 17 – 5Management expense ratio(�MER�) (5) 0.11% 0.51% 0.45% 0.07% 0.10% 0.11%MER before absorbed orwaived fees (5) 0.38% 1.37% 1.33% 0.07% 0.10% 0.11%Trading expense ratio (6) 0.03% 0.02% 0.05% 0.07% 0.06% 0.02%Portfolio turnover rate (7) 3.35% 6.36% 43.26% 12.89% 6.08% 26.82%NAV per unit (4) $– $– $10.13 $9.90 $– $10.06

** The Institutional Series was fully redeemed during 2014 & 2017;however, it remains in offer as at period-end.












4





-15.4%

12.3%

5.9%

-2.5%

7.8%

13.0%

7.7%3.7%

6.6% 7.9%

0.2%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%



-2.4%

7.8%

13.0%

7.6%

3.4%

6.3%7.7%

0.1%

-5%

0%

5%

10%

15%



-9.0%-10%

-5%

0%

Dec. 31 Jun. 302017 2018*

* The Institutional Series was fully redeemed during 2018. There wereno unitholders for the full six-month period ended June 30, 2018. How-ever, the Institutional Series remains in offer as at period-end.


Asset MixPercentage

of NAV

International Equities 32.35%Bonds 30.60%Canadian Equities 31.99%Cash & Equivalents 5.06%Total 100.00%


5


of NAV

HSBC Global Equity Fund - Institutional Series 28.65%HSBC Equity Fund - Institutional Series 23.52%HSBC Canadian Bond Fund - Institutional Series 19.40%HSBC Dividend Fund - Institutional Series 6.00%HSBC Emerging Markets Debt Fund - Institutional Series 5.71%HSBC Mortgage Fund - Institutional Series 5.49%HSBC Canadian Money Market Fund - Institutional Series 5.19%HSBC Emerging Markets Fund - Institutional Series 3.70%HSBC Small Cap Growth Fund - Institutional Series 2.48%Remaining Holdings -0.14%Total ofTop 25 Holdings 100.00%





6





How to reach us


Vancouver


Toronto













018-

08)D

FS


Diversified Growth Fund




◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC WorldSelection Diversified Growth Fund.






Investment PerformanceThe HSBC World Selection Diversified Growth Fund (InvestorSeries) rose 0.32% for the six-month period ending June 30,2018, while the benchmark rose 3.27% over the same period.The benchmark is a weighted composite consisting of the FTSETMX Canada Universe Bond Index (23%), S&P/TSX CappedComposite Index (31%) and MSCI World Index (C$) (46%).









Effective June 21, 2018, the risk rating of the Fund was loweredto low to medium. It was previously medium. The change is theresult of implementing the new investment risk classificationmethodology mandated by National Instrument 81-102, and notdue to any change in the Fund’s investment objectives, strategiesor the way the Fund was managed. On at least an annual basis,we review the risk rating of the Fund and will make adjustmentsto the risk rating of each Fund if required. The magnitude of theFund’s active strategy positions remains consistent with itslong-term risk profile.

Related PartyTransactionsWe, on behalf of the Fund, in our role as fund manager, may, fromtime to time, enter into transactions or arrangements with orinvolving other members of the HSBC Group or other people orcompanies related or connected to us or the Fund. To proceed withthe transactions, the Fund relies on the positive recommendation ofthe Fund’s Independent Review Committee. A condition of thispositive recommendation is that the transactions are performed inaccordance with our policy on Related Party Transactions. For moregeneral information on persons related to the Fund and the types ofpotential transactions, see the Fund’s Simplified Prospectus.

HSBC World Selection Diversified Growth Fund

1

The following is a summary of current transactions and arrangements withentities that are related to us or the Fund.




HSBC World Selection Diversified Growth Fund –Investor Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.16) (0.32) (0.33) (0.35) (0.32) (0.28)Realized gains (losses) 0.08 0.26 1.24 0.83 0.36 0.40Unrealized gains (losses) – 1.01 (0.29) (0.40) 0.80 1.75

Total increase

(decrease) from

operations (2) $0.05 $1.44 $1.11 $0.70 $1.13 $2.13



From dividends – (0.07) (0.09) – – –From capital gains – – (1.10) (0.68) – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $(0.07) $(1.19) $(0.68) $– $–


period (2) $16.41 $16.36 $15.00 $15.09 $15.01 $13.86


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC World Selection Diversified Growth Fund –Advisor Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.16) (0.32) (0.35) (0.34) (0.28) (0.25)Realized gains (losses) 0.07 0.22 1.64 0.69 0.27 0.33Unrealized gains (losses) – 0.82 (1.45) (0.31) 0.87 1.51

Total increase

(decrease) from

operations (2) $0.02 $1.11 $0.24 $0.56 $1.07 $1.80




Total annual

distributions (2,3) $– $(0.05) $(0.98) $(0.56) $– $–


period (2) $13.67 $13.66 $12.56 $12.71 $12.68 $11.71


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC World Selection Diversified Growth Fund –Manager Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017**

Dec. 31,

2016**

Dec. 31,

2015**

Dec. 31,

2014**

Dec. 31,

2013


beginning of period (2) $– $10.00 $– $– $18.33 $15.37


operations:

Total revenue – 0.01 – – 0.07 0.33Total expenses (excluding

distributions) – (0.01) – – (0.09) (0.19)Realized gains (losses) – 0.03 – – 0.15 0.52Unrealized gains (losses) – 0.27 0.34 – 0.97 2.27

Total increase

(decrease) from

operations (2) $– $0.30 $0.34 $– $1.10 $2.93




Total annual

distributions (2,3) $– $– $– $– $– $–


period (2) $– $– $– $– $– $18.33


June 30,

2018

Dec. 31,

2017**

Dec. 31,

2016**

Dec. 31,

2015**

Dec. 31,

2014**

Dec. 31,

2013

NAV (in 000s) (4) $– $– $– $– $– $4Number of units outstanding (in000s) (4) – – – – – –*

Management expense ratio(�MER�) (5) – 1.26% 2.00% – 1.31% 1.23%MER before absorbed orwaived fees (5) – 1.26% 2.00% – 1.31% 1.23%Trading expense ratio (6) – 0.03% 0.06% 0.09% 0.10% 0.05%Portfolio turnover rate (7) – 11.42% 49.25% 23.62% 11.92% 24.58%NAV per unit (4) $– $– $– $– $– $18.33


** The Manager Series was fully redeemed during 2014, 2015, 2016 and2017; however, it remains in offer as at period end.


3

HSBC World Selection Diversified Growth Fund –Institutional Series – Net Assets per Unit(1)


June 30,

2018

Dec. 31,

2017***

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014***


period (2) $– $10.12 $9.59 $10.00 $10.00


Total revenue – 0.10 0.13 0.27 0.01Total expenses (excluding

distributions) – (0.02) (0.03) – –Realized gains (losses) – 0.11 0.31 0.04 0.03Unrealized gains (losses) 0.08 0.22 (3.61) (0.06) 0.07


operations (2) $0.08 $0.41 $(3.20) $0.25 $0.11


From income (excluding dividends) – – – – –From dividends – – (0.08) – –From capital gains – – (0.98) (0.66) –From return of capital – – – – –

Total annual distributions (2,3) $– $– $(1.06) $(0.66) $–

Net assets per unit, end of period (2) $– $– $10.12 $9.59 $–


June 30,

2018

Dec. 31,

2017***

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014***

NAV (in 000s) (4) $– $– $52 $1,005 $–Number of units outstanding (in 000s) (4) – – 5 105 –Management expense ratio (�MER�) (5) 0.16% 0.39% 0.38% 0.08% 0.09%MER before absorbed or waived fees (5) 0.17% 0.68% 0.38% 0.08% 0.09%Trading expense ratio (6) 0.04% 0.03% 0.06% 0.09% 0.10%Portfolio turnover rate (7) 4.39% 11.42% 49.25% 23.62% 11.92%NAV per unit (4) $– $– $10.12 $9.59 $–

***The Institutional Series was fully redeemed during 2014 & 2017;however, it remains in offer as at period-end.






or absorbed certain fees and expenses otherwise payable by theFund. The amount of expenses absorbed or waived is at thediscretion of and can be terminated at any time by us.The Fund may invest in units of other mutual funds and pooled funds.You should note that in addition to the fees and expenses paid by theFund, these other funds have their own operating expenses to pay.The Fund will effectively bear the operating expenses of the otherfunds in proportion to its holdings in the other funds. However, theFund will not invest in units of other funds if the Fund would berequired to pay any management fees in respect of suchinvestments. In addition, the Fund will not make investments in otherfunds if the Fund would be required to pay any sales or redemptionfees in respect of such investments that duplicate a fee payable byunitholders of the Fund.






Past PerformanceThe performance information shown assumes that alldistributions made by the Fund in the periods shown werereinvested in additional securities of the Fund. The performanceinformation does not take into account sales, redemption,


4

distribution, optional charges or expenses you may be chargedoutside of the Fund or the effect of any income tax you may haveto pay as a result of your investment in the Fund that would havereduced returns or performance. The performance of differentfund series may vary for a number of reasons, includingdifferences in management fees and expenses. The Fund’s pastperformance does not necessarily indicate how it will perform inthe future.



-23.4%

16.7%

7.1%

-5.5%

9.0%

18.0%

8.4%5.0% 7.2% 9.5%

0.3%

-30%

-20%

-10%

0%

10%

20%

30%



-23.4%

16.7%

7.0%

-5.5%

8.9%

17.9%

8.3%4.6% 6.5% 9.1%

0.1%

-30%

-20%

-10%

0%

10%

20%

30%



8.2%

-4.4%

10.2%

19.2%

-10%

-5%

0%

5%

10%

15%

20%

25%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302010 2011 2012 2013 2014* 2015* 2016* 2017* 2018*

* The Manager Series was fully redeemed during 2014. There were nounitholders for the full calendar year of 2015 and onwards, and periodended June 30, 2018; however, the series remains in offer as at period-end.


Asset MixPercentage

of NAV

International Equities 46.14%Canadian Equities 33.20%Bonds 20.54%Cash & Equivalents 0.12%Total 100.00%


of NAV

HSBC Global Equity Fund - Institutional Series 40.99%HSBC Equity Fund - Institutional Series 30.14%HSBC Canadian Bond Fund - Institutional Series 8.90%HSBC Mortgage Fund - Institutional Series 5.96%HSBC Emerging Markets Debt Fund - Institutional Series 5.68%HSBC Emerging Markets Fund - Institutional Series 5.14%HSBC Small Cap Growth Fund - Institutional Series 3.06%HSBC Canadian Money Market Fund - Institutional Series 0.29%Remaining Holdings -0.16%Total ofTop 25 Holdings 100.00%





5





How to reach us


Vancouver


Toronto













018-

08)D

FS

HSBC World Selection® DiversifiedAggressive Growth Fund




◆

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC WorldSelection Diversified Aggressive Growth Fund.





Results of OperationsAs of June 30, 2018, the Fund’s net assets increased by 10.4% to$105.0 million from $95.1 million at the end of 2017. Of thisincrease, $9.5 million was attributable to net contributions to theFund and $0.4 million gain was attributable toinvestment performance.

Investment PerformanceThe HSBC World Selection Diversified Aggressive Growth Fund(Investor Series) rose 0.46% for the six-month period endingJune 30, 2018, while the benchmark rose 4.02% over the sameperiod. The benchmark is a weighted composite consisting of theFTSE TMX Canada Universe Bond Index (10%), S&P/TSX CappedComposite Index (27.5%), and MSCI World Index (C$) (62.5%).












HSBC World Selection Diversified Aggressive Growth Fund

1




HSBC World Selection Diversified AggressiveGrowth Fund – Investor Series – Net Assets perUnit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.18) (0.35) (0.34) (0.36) (0.33) (0.28)Realized gains (losses) 0.12 0.32 0.88 0.67 0.34 0.51Unrealized gains (losses) 0.04 1.25 0.16 (0.19) 0.94 2.15

Total increase

(decrease) from

operations (2) $0.07 $1.76 $1.16 $0.87 $1.25 $2.62




Total annual

distributions (2,3) $– $(0.07) $(0.69) $(0.38) $– $–


period (2) $17.50 $17.42 $15.72 $15.30 $14.68 $13.39


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013



2

HSBC World Selection Diversified AggressiveGrowth Fund – Advisor Series – Net Assets perUnit(1)


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013




operations:


distributions) (0.18) (0.36) (0.39) (0.40) (0.32) (0.28)Realized gains (losses) 0.12 0.30 0.68 0.60 0.30 0.49Unrealized gains (losses) (0.34) 1.33 (1.82) (0.31) 1.06 2.05

Total increase

(decrease) from

operations (2) $(0.31) $1.78 $(1.21) $0.82 $1.27 $2.49




Total annual

distributions (2,3) $– $(0.06) $(0.63) $(0.35) $– $–


period (2) $16.40 $16.34 $14.82 $14.38 $13.87 $12.66


June 30,

2018

Dec. 31,

2017

Dec. 31,

2016

Dec. 31,

2015

Dec. 31,

2014

Dec. 31,

2013


HSBC World Selection Diversified AggressiveGrowth Fund – Institutional Series – Net Assetsper Unit(1)


June 30,

2018

Dec. 31,

2017*

Dec. 31,

2016*

Dec. 31,

2015

Dec. 31,

2014*

Dec. 31,

2013*


beginning of period (2) $– $– $9.57 $10.00 $– $11.47


operations:

Total revenue – 0.01 0.01 0.19 – –Total expenses (excluding

distributions) – – (0.11) – – –Realized gains (losses) – 0.06 0.01 0.30 – 0.03Unrealized gains (losses) 0.12 0.15 (0.50) (0.71) – 0.72

Total increase

(decrease) from

operations (2) $0.12 $0.22 $(0.59) $(0.22) $– $0.75



From dividends – – – – – –From capital gains – – – (0.46) – –From return of capital – – – – – –

Total annual

distributions (2,3) $– $– $– $(0.46) $– $–


period (2) $– $– $– $9.57 $– $–


June 30,

2018

Dec. 31,

2017*

Dec. 31,

2016*

Dec. 31,

2015

Dec. 31,

2014*

Dec. 31,

2013*

NAV (in 000s) (4) $– $– $– $15 $– $–Number of units outstanding (in000s) (4) – – – 2 – –Management expense ratio(�MER�) (5) 0.21% 0.32% 7.75% 0.30% – 0.20%MER before absorbed orwaived fees (5) 0.33% 0.32% 7.76% 0.30% – 0.20%Trading expense ratio (6) 0.05% 0.04% 0.08% 0.11% 0.13% 0.10%Portfolio turnover rate (7) 4.08% 12.45% 47.53% 24.71% 13.48% 28.05%NAV per unit (4) $– $– $– $9.57 $– $–

* The Institutional Series was fully redeemed during 2013, 2014, 2016& 2017; however, it remains in offer as at period end.




3













-30.3%

18.7%

6.8%

-8.3%

10.1%

24.1%

9.7% 6.8% 7.2%11.3%

0.5%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%



4


-8.4%

10.2%

24.0%

9.6%6.1% 7.4%

10.7%

0.4%

-20%

-10%

0%

10%

20%

30%



12.5%

0%

5%

10%

15%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 302012 2013* 2014* 2015* 2016* 2017* 2018*

* The Institutional Series was fully redeemed during 2013. There wereno unitholders for the full calendar year of 2014 and onwards. How-ever, the Institutional Series remains in offer as at period-end.


Asset MixPercentage

of NAV

International Equities 61.92%Canadian Equities 28.80%Bonds 9.43%Cash & Equivalents -0.15%Total 100.00%


of NAV

HSBC Global Equity Fund - Institutional Series 55.38%HSBC Equity Fund - Institutional Series 25.75%HSBC Emerging Markets Fund - Institutional Series 6.53%HSBC Emerging Markets Debt Fund - Institutional Series 5.25%HSBC Small Cap Growth Fund - Institutional Series 3.05%HSBC Mortgage Fund - Institutional Series 2.53%HSBC Canadian Bond Fund - Institutional Series 1.65%Remaining Holdings -0.14%Total ofTop 25 Holdings 100.00%





5





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