Performance review: December 2016
HSBC Global Investment FundsA selection of focus funds
This publication is intended for Professional Clients only andshould not be distributed to or relied upon by Retail Clients.The information contained in this publication is not intended asinvestment advice or recommendation.Non contractual document.
This brochure includes a selection of 16 funds. It shouldbe noted that there are over 50 funds in the HSBCGlobal Investment Funds range that consists of global,regional and single country funds across Asset classesincluding equities, bonds and multi-asset.
2
Summary
HSBC Global Asset Management 3-4
Investment platform 3
Investment beliefs 4
Equity 6-11
Overview 6-7
HSBC GIF Euroland Equity 8
HSBC GIF Asia ex Japan Equity Smaller Companies 9
HSBC GIF Global Real Estate Equity 10
HSBC GIF Economic Scale Index GEM Equity 11
Fixed Income 13-26
Overview 13-15
HSBC GIF Global Short Duration High Yield Bond 16
HSBC GIF Global High Yield Bond 17
HSBC GIF Global High Income Bond 18
HSBC GIF GEM Debt Total Return 19
HSBC GIF Global Emerging Markets Bond 20
HSBC GIF Euro Bond 21
HSBC Euro Credit Bond 22
HSBC Euro Credit Bond Total Return 23
HSBC Euro High Yield 24
HSBC GIF RMB Fixed Income 25
HSBC GIF Asian Currencies Bond 26
Multi-Asset 28-30
Overview 28-29
HSBC GIF Multi-Asset Style Factors 30
ESG Integration 32-33
Client communication and materials 35-36
3
HSBC Global Asset ManagementStrong global investment platform
Non-contractual document
~2,300 employees
~500 investmentprofessionals
USD415.5 billion undermanagement
Investment and clientservice operations in~26 countries
A focused range of developed and emergingmarkets investment strategies, targeted atinstitutional and wholesale clients
Investment expertise in fixed income, equity,multi-asset and liquidity
Strong global investment platform supportinglocal teams
- Experienced investment teams focused onspecific strategies
- Local resource provides valuable insight andanalysis
- Global platform supports cross-bordercommunications
- Objective of meeting clients expectations
- Risk management focus
Firm-wide statistics
By asset class (USD billion)
Americas
Investmentprofessionals
315EMEA
Investmentprofessionals 157
AsiaInvestment
professionals70
By regional expertise (USD billion)
Strong global investment platform and operations supports local investment teams
*Other includes the asset of Hang Seng Bank, in which HSBC has a majority holding.1. Asia AUM and AUD include Hang Seng assets2. HSBC Jintrust Fund Management company is a joint venture between HSBC Global Asset Management and Shanxi Trust Corporation LimitedSource: HSBC Global Asset Management as at 30 September 2016. Assets from HSBC Brazil are not included. Any differences are due to rounding. Cross-border anddomestic assets by Legal Entity.
Canada
USA
Mexico
Argentina
Bermuda
UKSweden
Luxembourg
JerseyFrance
Spain
Switzerland
Malta
ItalyAustria
Germany
Turkey
Saudi Arabia UAEIndia
Singapore
Hong KongTaiwan
Japan
Australia
China2
EM (115.4)
Europe (127.4)
Global (71.9)
North America (63.5)
Asia Pacific (2.3)
Other (34.9)*
Fixed Income (189.7)
Equity (76.3)
Multi-Asset (55.6)
Liquidity (58.9)
Other (34.9)*
4
HSBC Global Asset ManagementOur investment beliefs
We put clients first
We invest for the long term
We are aligned with HSBC group strategy
We do not believe a flair based approach to beappropriate
We believe that a disciplined approach has powerand predictability
Who we are
Our investment processes and beliefs arecharacterised by:
– Clarity and focus
– Disciplined application
– High standards of governance
– Staying power and courageous integrity
We limit the extent to which our success relies onforecasting
Way of operating
Excess volatility is a symptom of market noise:Therefore we have a strong fundamental focus
We employ strong valuation disciplines and have acontrarian bias
We believe a short-term investment approach isdifficult to deploy successfully
Investments
We believe markets are inherently inefficient
We believe markets mean revert
We believe that excess volatility/risk is oftenmispriced
Markets are fast moving and complex
Our views about the markets
• Our people are our intellectual capital
• Our people follow disciplined processes that helps
us in achieving the right focus
• Our people tailor products to local needs
• Our organisation is designed to increase the power
and relevance of intellectual capital
Our intellectual capital
Excess volatility incites short-termism in investors
Prospective returns typically rise when prices fall
Processes of many investors have become over-engineered
Investors and investing
Source: HSBC Global Asset Management
1 2
3 4
5 6
Equity
6
Equity: introduction
Bill Maldonado
Global CIO Equities
Based in Hong Kong
“Our investment processes in all locations and for all
equity investment strategies are aligned with one
common approach.
Of course, different markets will have different biases
and characteristics and we need to allow for this. For
example, markets vary by number of stocks, liquidity,
market capitalisation etc. Our aim is to have a
consistent approach that can deal with these
differences, benefit from our local knowledge and
provide HSBC clients around the world with an
investment process they can trust for all equity
strategies”.
USD76.3 bn in equityassets under
management acrossdeveloped and
emerging marketstrategies
Analysts in majordeveloped and
emerging countries
~180 investmentprofessionals
~70 equity analysts
~10 macro-economists
Non-contractual document
Smart Beta / Alternative Weighting Schemes
Passive
Cap-Weighted
Indexation
ActiveFundamental
Stock Selection
FundamentalIndexation
Lower VolatilityMulti-FactorSingle Factor
HSBC equity capabilities
Pure Factor Economic ScaleIndexation
(ESI)
Enhanced Multi-Factor
Each equity capability is tailored to capture the essence of the investment opportunity. We believe that our clients’ alpha and betaequity investment objectives are best achieved through capabilities that have conceptual clarity and an investment process that isdifferentiated by design and implemented with discipline.
Low cost, efficient passive cap-weighted indexation solutions capture equity beta across reference cap-weighted indices
Smart Beta strategies based on Alternative Weighting Schemes and systematic rebalancing aim to deliver better risk-adjustedreturns compared to traditional beta strategies
High conviction, active fundamental stock selection strategies focus on companies with an attractive combination ofprofitability and valuation and aim to exploit large price deviations
With a differentiated investment approach, we believe HSBC strategies can be complementary and provide diversification withinexisting equity allocations.
Source: Assets under management and assets under distribution as at 30 September 2016.
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Equity: capabilities and active investment process
Non-contractual document
Our equity solutions
Building blocks for strategic assetallocation
Cap-weighted indexation
Smart Beta / Alternative WeightingSchemes
– Single Factor: Pure Factor
– Multi-Factor: Enhanced Multi-Factor
– Fundamental Indexation: Economic ScaleIndexation (ESI)
– Lower Volatility
Active fundamental stock selection
– Core
– Dividend/Income
– Smaller Companies
– Real Estate
– Thematic
For illustrative purposes only. Source: HSBC Global Asset Management – June 20161 Tax transparency dependent on client domicile and investment domicile. Clients should seek tax advice.Please note that the products implementing the strategies described above may not be authorised/registered for sale in your country.
Investment vehicles
Available through:
Segregated mandate
Common Contractual Fund(Dublin-domiciled)1
Cross-border and locally-domiciled funds
Exchange-traded funds (cap-weighted indexation)
HSBC credentials
Client-focused equity investmentcapabilities
Investment capabilities withconceptual clarity that use aninvestment process differentiatedby design and implemented withdiscipline
Proprietary fundamental research
Local insight, global perspective;global network of investmentprofessionals
Strong investment governance
Strength, stability and values ofthe HSBC Group
2 Investment approach that focuses on rigorous research focused on valuations and profitability, disciplined security selection and risk management.* Visualiser is our internal data base application which seeks to retrieve the components of profitability and valuation of a given company at a given point in time forcross comparison with universe and sector. The output is a graphical illustration (this is why we call it our “Visualiser’ tool) of the universe illustrating how individualstocks position versus peers. Representative overview of the investment process, which may differ by product, client mandate or market conditions.
Implementation will depend on
the universe – stocks available – data availability
All active equity strategiesuse our global process
based on Valuation and Profitability2
Common tools such as Visualiser*To help management and
oversight of portfolios
Active equity investment process overview
An overview of our equity capabilities
8
HSBC GIF Euroland Equity
Denis GrandjeanFrédéric Leguay
• Strong cooperation and daily communication between the fund manager and the equity analysts ensures the fund is reactiveto market opportunities
• Rigorous fundamental research allows the portfolio manager to understand the profitability scenario of each company and todevelop conviction on the most attractive profitability/valuation companies
• Portfolio construction based on conviction: balancing adequate diversification & sufficient level of relative risk
• An access to large and well diversified companies in the Eurozone: companies with solid balance sheets, resilient levels ofprofitability and wide exposure to the global economy
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
A share: USD5,000 or equivalent
I share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Bank Plc. Luxembourg Branch Valuation Daily at 5:00pm (CET)
ISIN code AC: LU0165074666
AD: LU0165074740
IC: LU0165074823
ID: LU0165075127
Ongoing charge Management feesA share: 1.50%I share: 0.75%
Administration feesA share: 0.35%I share: 0.25%
Risk/RewardProfile 1
Main risks Equity risk, capital loss risk
*Comparative index is for illustrative purposes only as the fund has no official benchmark. **Characteristics and weightings are for illustrative purposes only, are notguaranteed and are subject to change over time, and without prior notice, taking into account any changes in markets. The performance figures displayed in thedocument relate to the past and past performance should not be seen as an indication of future returns. Representative overview of the investment process, which maydiffer by product, client mandate or market conditions. Source: HSBC Global Asset Management. Data Source - © Copyright 2016 Morningstar, Inc. All RightsReserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warrantedto be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.1Rating is based on price volatility over the last five years, and is an indicator of absolute risk; historical data may not be a reliable indication for the future; the rating isnot guaranteed to remain unchanged and the categorization may shift over time; the lowest rating does not mean a risk-free investment.
Performance (%) as at 31 December 2016
2016 3Y ann. 5Y ann. 2015 2014 2013
Fund (A share class Net) 3.9 5.5 12.4 10.8 1.9 30.5
Comparative index 4.4 6.1 11.9 9.8 4.3 23.4
Excess return -0.5 -0.6 0.5 1.0 -2.4 7.1
Strategy details
Launch 04.04.03
Base currency EUR
AUM as at 31/12/2016 755.10 million
ComparativeIndex*
MSCI EMU Net
Morningstar category Eurozone Large Cap Equity
Liquidity Daily
Portfolio characteristics**
Typical number of holdings 50-60 holdings
Individual stock weightings 1-5% average weights
Sector diversificationMinimum of 15 out of 24 GICS industrygroups
Regional exposure
Primarily invested in the 10 developedEurozone countries (Austria, Belgium,Finland, France, Germany, Ireland, Italy,Netherlands, Portugal, Spain)
Capitalisation constraints Min. market cap of €1 bn (at purchase)
Cash Typically fully invested
Tracking error 3-5%
TurnoverExpected to be moderate given the longterm investment horizon (< 30%)
Non-contractual document
Active FundamentalStock Selection
(I share)
9
HSBC GIF Asia ex JapanEquity Smaller Companies
• The fund aims to capture growth opportunities in smaller and less-established Asia ex Japan equities by investing within arigorously applied risk management framework
• A disciplined and repeatable investment process, is designed to drive long-term alpha by focusing on bottom-up stockselection
• Strong cooperation and daily communication between the fund manager and the equity analysts ensures the fund is reactiveto market opportunities
• Portfolio construction based on conviction: balancing adequate diversification & sufficient level of relative risk
Alex KwanElina Fung
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
A share: USD5,000 or equivalent
I share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (HK) Valuation Daily at 5:00pm (CET)
ISIN code AC: LU0164939612 ; ACEUR: LU0622164845
AD: LU0082770016
IC: LU0164939885
ID: LU0149726845
Ongoing charge Management feesA share: 1.50%I share: 0.75%
Administration feesA share: 0.35%I share: 0.25%
Risk/RewardProfile 1
Main risks Equity risk, foreign exchange risk, liquidityrisk, emerging markets risk, small and midcap risk, capital loss risk
*Comparative index is for illustrative purposes only as the fund has no official benchmark. **Characteristics and weightings are for illustrative purposes only, are notguaranteed and are subject to change over time, and without prior notice, taking into account any changes in markets. The performance figures displayed in thedocument relate to the past and past performance should not be seen as an indication of future returns. Representative overview of the investment process, which maydiffer by product, client mandate or market conditions. Source: HSBC Global Asset Management. Data Source - © Copyright 2016 Morningstar, Inc. All RightsReserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warrantedto be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.1Rating is based on price volatility over the last five years, and is an indicator of absolute risk; historical data may not be a reliable indication for the future; the rating isnot guaranteed to remain unchanged and the categorization may shift over time; the lowest rating does not mean a risk-free investment.
Performance (%) as at 31 December 2016
2016 3Y ann. 5Y ann. 2015 2014 2013
Fund (A share class Net) 10.3 6.8 13.9 0.6 9.5 24.5
Comparative index -2.3 -1.2 4.8 -2.2 5.8 14.4
Excess return 12.6 8.0 9.1 2.8 3.7 10.1
Strategy details
Launch 21.11.97
Base currency USD
AUM as at 31/12/2016 806.07 million
ComparativeIndex*
MSCI AC Asia ex JapanSmall Cap Net
Morningstar categoryAsia ex-Japan Small/Mid-Cap Equity
Liquidity Daily
Portfolio characteristics**
Regional exposure
10 countries in Asia (e.g. Hong Kong,China Taiwan, S. Korea, Malaysia,Indonesia, India, Thailand, Philippines,Singapore)
Typical number of holdings 60-90 holdings
Individual stock weightingsRelative single company weights (bps) ±300
Sector diversification Relative sector weight (bp) ± 700
Country diversification Relative country weight (bp): ± 500
Capitalisation constraintsTypically invests in stocks with less thanUSD 2 bn in market cap
Cash 0-5%
Target tracking 4-12%
Turnover 60%
Non-contractual document
Active FundamentalStock Selection
(I share)
10
HSBC GIF Global Real Estate Equity
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
A share: USD5,000 or equivalent
I share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (UK) Ltd Valuation Daily at 5:00pm (CET)
ISIN code AC: LU1163227496
AD: LU1163227579
IC: LU1163227652
ID: LU1163227736
Ongoing charge Management feesA share: 1.75%I share: 1.25%
Administration feesA share: 0.50%I share: 0.40%
Risk/RewardProfile 1
Main risks Equity risk, foreign exchange risk, capitalloss risk
*Characteristics and weightings are for illustrative purposes only, are not guaranteed and are subject to change over time, and without prior notice, taking into accountany changes in markets. The performance figures displayed in the document relate to the past and past performance should not be seen as an indication of futurereturns. Representative overview of the investment process, which may differ by product, client mandate or market conditions. Source: HSBC Global AssetManagement. Data Source - © Copyright 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or itscontent providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers areresponsible for any damages or losses arising from any use of this information. 1Rating is based on price volatility over the last five years, and is an indicator of absoluterisk; historical data may not be a reliable indication for the future; the rating is not guaranteed to remain unchanged and the categorization may shift over time; thelowest rating does not mean a risk-free investment.
Strategy details
Launch 27/03/2015
Base currency USD
AUM as at 31/12/2016 949.7 million
ComparativeIndex
n.a.
Morningstar category Property - Indirect Global
Liquidity Daily
Portfolio characteristics*
Exposure Global developed markets only
Typical number of holdings45-50; benchmark agnostic weighting
approach
Target candidates
Targets investment in quality large capcompanies with income-generatingportfolios, conservative capital structuresand efficient cost structures, led by strongand experience management teams
Cluster perspective
We take a cluster perspective whenevaluating investment opportunity andconstructing the portfolio. Clusterrepresent functional grouping, such asresidential, industrial, retail, etc
Turnover c. 25-50%
• The fund seeks to capture the long-run performance of income-producing real estate through investments in global real estateequities
• Diversified across major urban markets and real estate clusters such as residential, office, retail
• Targets investment in quality large cap companies with income-generating portfolios, conservative capital structures andefficient cost structures, led by strong and experience management teams
• Our investment process reflects our perspective as investors in both unlisted and listed property markets
Nick LemingGuy D. Morrell
Performance (%) as at 31 December 2016
2016 3Y 5Y 2015 2014 2013
Fund (A share class Net) Fund performance will be shown when it is possible to show two time periods
Non-contractual document
Active FundamentalStock Selection
11
HSBC GIF Economic Scale IndexGEM Equity
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
A share: USD5,000 or equivalent
I share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (UK) Ltd Valuation Daily at 5:00pm (CET)
ISIN code AC: LU0819120683
IC: LU0819121061
Ongoing charge Management feesA share: 0.60%I share: 0.30%
Administration feesA share: 0.35%I share: 0.30%
Risk/RewardProfile 1
Main risks Equity risk, foreign exchange risk, liquidityrisk, emerging markets risk, capital lossrisk
*Characteristics and weightings are for illustrative purposes only, are not guaranteed and are subject to change over time, and without prior notice, taking into accountany changes in markets. The performance figures displayed in the document relate to the past and past performance should not be seen as an indication of futurereturns. Representative overview of the investment process, which may differ by product, client mandate or market conditions. Source: HSBC Global AssetManagement. Data Source - © Copyright 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or itscontent providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers areresponsible for any damages or losses arising from any use of this information. 1Rating is based on price volatility over the last five years, and is an indicator of absoluterisk; historical data may not be a reliable indication for the future; the rating is not guaranteed to remain unchanged and the categorization may shift over time; thelowest rating does not mean a risk-free investment.
Strategy details
Launch 20/03/2013
Base currency USD
AUM as at 31/12/2016 452.7 million
ComparativeIndex
HSBC Economic ScaleEmerging Markets Net
Morningstar categoryGlobal Emerging MarketsEquity
Liquidity Daily
Portfolio characteristics*
Fully invested in Emerging Markets
Typical number of holdings ~800
Reference currency USD
Fund’s tracking error vsmarket cap equivalent
2-5%
Index tracking error 0.6%
Replication Full replication
Rebalancing Semi-annual
• The fund aims to track the HSBC Economic Scale Index Emerging Markets by investing in securities that are included inthe Index
• The strategy aims to track the Index while minimising as far as possible the tracking error between the fund‘s performanceand that of the Index
• HSBC Economic Scale Index methodology looks at stocks from a broad spectrum of companies across developed andemerging markets. Stocks in the Index are screened on liquidity, availability and size. Semi-annual rebalancing is used tocapture “pricing errors” in stock markets
• The fund uses a full physical replication approach to replicate the Index
Joseph Molloy
Performance (%) as at 31 December 2016
2016 3Y ann. SI ann.. 2015 2014 2013
Fund (A share class Net) 18.9 -1.4 -1.5 -20.0 0.7 -
Comparative index 20.4 -0.1 -0.4 -18.9 2.8 -
Excess return -1.4 -1.2 -1.2 -1.1 -1.3 -
Non-contractual document
Fundamental Indexation
(I share)
Fixed Income
13
Fixed income: introduction
Xavier Baraton
Global CIO Fixed Income
Based in London
Set portfoliotop-downdecisions
Set countryand industryallocations
Determinetactical bets
and arbitrages
Define theinvestmentuniverse
Investmentrecommendations
Analysts assign andmaintain internal ratings
Portfolio construction
Credit analysts Portfolio managers
Hold the finalresponsibility for all investment
decisions
Main goal is to avoidcredit events
Portfolio construction,position monitoring and risk management
Fixed Income investment process overview
USD189.7 bn in fixedincome assets undermanagement across
developed andemerging market
strategies
Hubs in the major fixedincome markets
~170 investmentprofessionals
~40 credit analysts
~10 macro-economists
Our investment process is bottom-upyet also embedded within a frameworkbased on top-down decision making onpositioning and sector allocation
- Fundamental analysis, autonomousdecision-making within a commonphilosophy are the primary drivers ofperformance
- Issuer and sector selection relies on theglobal credit research platform
- Idea generation and discussion betweenanalysts and portfolio managers
Non-contractual document
“We are recognised as an active and specialised
fixed income manager with leadership in
Emerging Markets, Credit and other selected
areas such as short duration, asset backed
securities or inflation linked bonds.
Our investment process is robust and based on
a common approach around the world.
We also aim to use the best of our global
resources (ie macro teams) as well as local
insight when managing portfolios”.
Source: Assets under management and assets under distribution as at 30 September 2016.
14
Fixed income: capabilities and investment philosophy
• Global Aggregate
• Global Government
• Global Short Duration
• Global Total Return
• Global Corporate
• Global High Income
• Global High Yield
• Global Short Duration High Yield
• Global ABS
• Global Inflation Linked
• EMD Core
• EMD Local Debt
• EMD Total Return
• EMD Credit
• EMD Investment Grade
• EMD Inflation Linked
• US Short Duration
• US Credit
• Argentina
• Brazil
• Canada
• China
• Hong Kong
• India
• Indonesia
• Mexico
• Singapore
• Taiwan
• Turkey
• UK
• Euro Aggregate
• Euro Government
• Euro Short Duration
• Euro Credit
• Euro Credit Total Return
• Euro High Yield
• Euro Convertibles
• Euro Inflation Linked
• Asia Local Debt
• Asia Credit
• Asia High Yield
• Focused on delivering sustainable, value-added performance in selected areas at the global fixed income market
• Targeted range of products in areas where we are confident we have expertise and are highly competitive
• Strong global, regional and single country capabilities
Global CountryRegional
Source: HSBC Global Asset Management as at end June 2016. For informational purposes only and should not be construed as a recommendation for anyinvestment product or strategy. Not an exhaustive list of capabilities
Active fundamental approach foremerging markets and credit
• Lack of research and investmentconstraints (ie ALM, ratings) resultin inconsistencies between riskpremiums and fundamentals
• Macro and country analysis is aneffective and reliable approach fordetermining emerging marketcountry and currency allocations
• Fundamental, bottom-up creditresearch is our main foundation toexploit relative value opportunities
Rates and G10 FX marketsutilise active fundamentalapproach and judgmentcombined with quantitativetechniques
• We look to exploit distortionsand inconsistencies between theshape of yield curves andeconomic and financial factors
• In these generally more liquidand efficient markets, we alsodevelop and use sophisticatedmodelling
Two fundamental tenets of our fixedincome investment philosophy
• Fixed income markets are inefficientresulting from misunderstanding andmispricing of risk
• Combining active management withfundamental and in-depth researchenables us to add value in fixed incomeportfolios
Investment philosophy
Capabilities
Non-contractual document
15
Fixed Income: global research platform
Extensive research resources support the fixed income process
10 Macro and global economicprofessionals
Providing:
• Analysis and ad hoc studies ofglobal economics – growth,inflation, fiscal policy, centralbank policy, geo-political events
• Formulation of top-down ‘HouseView’, assessment of risks to‘House View’ and itsassumptions, scenario analysis
• Assessment of consensus viewevolution, identifyingdisagreements
• Proprietary research and thoughtleadership
Macro and Investment Strategy
15 Quantitative professionalsdedicated to fixed income
Supporting:
• Asset allocation
• Alpha generation for developedmarkets rates, FX and credit
• Risk calibration, risk monitoringand portfolio optimization tools
• Modelling, screening and filteringfor specific capabilities
• Proprietary research and thoughtleadership
Fixed Income Quantitative Research,Portfolio Analytics and Design
40+ Seasoned sector-specialistcredit analysts coveringdeveloped and emerging marketcredits
Covering:
• Definition of eligible investmentuniverse
• Issuer selection – assessmentof fundamentals, valuation andtechnicals
• Sector allocation –fundamentals (macro andinnovation trends, M&A activity,competition, company relativeposition), valuationand technicals
• Credit allocation – ratingmodels, curve description, keymacro indicators
Global Credit Research
Global credit research platform - framework
• Our local/sector specialists can provide detailed issuer recommendations to various credit teams globally depending onthe currency of bond issue
- Our US Dollar funds can invest in a Brazilian meat producer that issues in USD
- Our RMB funds can invest in a European auto manufacturer that issues in RMB
Source: HSBC Global Asset Management as at 19 April 2016. The numbers in the boxes are the number of analysts in that region/industry combination. An analyst can
cover several sectors and all analysts have at least 50% High Yield coverage.
Non-contractual document
16
HSBC GIF Global Short DurationHigh Yield Bond
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
A share: USD5,000 or equivalent
I share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (USA) Inc Valuation Daily at 5:00pm (CET)
ISIN code AC: LU0922809933, ACEUR: LU0930306138ACHEURLU0922810519IC: LU0922810196, ICEUR: LU0930306724ICHEUR: LU0922810600
Ongoing charge Management feesA share: 0.90%I share: 0.45%
Administration feesA share: 0.25%I share: 0.20%
Risk/RewardProfile 1
Main risks Credit risk, interest rate risk, liquidity risk,capital loss risk
*Comparative index is for illustrative purposes only as the fund has no official benchmark. **Characteristics and weightings are for illustrative purposes only, are notguaranteed and are subject to change over time, and without prior notice, taking into account any changes in markets. The performance figures displayed in thedocument relate to the past and past performance should not be seen as an indication of future returns. Representative overview of the investment process, which maydiffer by product, client mandate or market conditions. Source: HSBC Global Asset Management. Data Source - © Copyright 2016 Morningstar, Inc. All RightsReserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warrantedto be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.1Rating is based on price volatility over the last five years, and is an indicator of absolute risk; historical data may not be a reliable indication for the future; the rating isnot guaranteed to remain unchanged and the categorization may shift over time; the lowest rating does not mean a risk-free investment.
Strategy highlights
Strategy details
Launch 12/06/2013
Base currency USD
AUM as at 31/12/2016 545.57 million
ComparativeIndex*
BOA ML Global HY 1-3Year BB-B US and EuroNon Financial 2%Constrained (USDhedged)
Morningstar category Global HY Bond
Liquidity Daily
Portfolio characteristics**
Currency of assets (hedgedto comparative index)
Min. 90% (and max. 10% in othercurrencies)
AllocationBB and B high yield corporate bonds(USD and EUR)
Tactical allocationInvestment grade (max. 30%);
ABS, EMD local currency (max. 10%)
• A well-diversified non-investment grade and unrated bond portfolio with low interest rate exposure while benefiting from localspecialised resources:- The fund consists of BB and B high yield corporate bonds managed by specialist sleeve managers: USD and Euro- Issuer limit BB- and above: max. 5%; issuer limit B+ : max. 3%- The overall lead portfolio manager is responsible for fund and risk monitoring, overlay and tactical management
• Ability to invest strategically or tactically in additional asset classes or segments- Investment grade securities (max. 30% of the portfolio)- ABS (max. 10%)- Emerging market bonds (max. 10%)
• As least 90% of bonds are denominated in USD or hedged into USD, up to 10% in other currency exposure• Rigorous fundamental bottom-up process
Mary Bowers
Performance (%) as at 31 December 2016
2016 3Y ann. SI ann. 2015 2014 2013
Fund (A share class Net) 6.6 2.9 3.4 0.9 1.2 -
Comparative index 10.6 4.1 4.7 -2.6 2.3 -
Excess return -4.0 -1.2 -1.2 1.2 -1.1 -
Non-contractual document
Ricky Liu
(I share)
17
HSBC GIF Global High Yield Bond
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
A share: USD5,000 or equivalent
I share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (USA) Inc Valuation Daily at 5:00pm (CET)
ISIN code ACHEUR: LU0850060020AD: LU0780246079IC: LU0780246319; ICHEUR: LU0850060707ID: LU0780246400
Ongoing charge Management feesA share: 1.10%I share: 0.55%
Administration feesA share: 0.25%I share: 0.20%
Risk/RewardProfile 1
Main risks Credit risk, interest rate risk, liquidity risk,capital loss risk
*Comparative index is for illustrative purposes only as the fund has no official benchmark. **Characteristics and weightings are for illustrative purposes only, are notguaranteed and are subject to change over time, and without prior notice, taking into account any changes in markets. The performance figures displayed in thedocument relate to the past and past performance should not be seen as an indication of future returns. Representative overview of the investment process, which maydiffer by product, client mandate or market conditions. Source: HSBC Global Asset Management. Data Source - © Copyright 2016 Morningstar, Inc. All RightsReserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warrantedto be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.1Rating is based on price volatility over the last five years, and is an indicator of absolute risk; historical data may not be a reliable indication for the future; the rating isnot guaranteed to remain unchanged and the categorization may shift over time; the lowest rating does not mean a risk-free investment.
Strategy highlights
Strategy details
Launch 20/07/2012
Base currency USD
AUM as at 31/12/2016 2,072.31 million
ComparativeIndex*
BofA Merrill LynchGlobal High Yield BB-BConstrained HedgedUSD
Morningstar category Global HY Bond
Liquidity Daily
Portfolio characteristics**
Currency of assets (hedgedto comparative index)
USD (and max. 10% in emerging marketscurrency)
AllocationWell-diversified portfolio in US, euro andemerging markets
Tactical allocationInvestment grade
CCC-rated bonds
• A well-diversified non-investment grade and unrated bond portfolio while benefiting from local specialised resources:- The core investment universe consists of BB and B corporate bonds in the US, Euro and emerging markets. These assets
are managed in three sleeves by specialist fund managers- The overall lead portfolio manager is responsible for fund and risk monitoring, overlay and tactical management
• Ability to invest strategically or tactically in additional asset classes or segments- Investment grade securities- CCC-rated bonds
• Euro assets are hedged into USD, up to 10% in local emerging markets currency• Rigorous fundamental bottom-up process
Performance (%) as at 31 December 2016
2016 3Y SI ann. 2015 2014 2013
Fund (A share class Net) 11.9 - 2.6 -2.3 - -
Comparative index 14.3 - 4.1 -0.9 - -
Excess return -2.4 - -1.5 -1.4 - -
Non-contractual document
Mary Bowers Ricky Liu
(I share)
18
HSBC GIF Global High Income Bond
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
A share: USD5,000 or equivalent
I share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (USA) Inc Valuation Daily at 5:00pm (CET)
ISIN code AC: LU0524291613; ACHEUR: LU0807188023AD: LU0770104676IC: LU0524292264; ICHEUR: LU0807188452ID: LU0524292009
Ongoing charge Management feesA share: 1.25%I share: 0.625%
Administration feesA share: 0.25%I share: 0.20%
Risk/RewardProfile 1
Main risks Credit risk, interest rate risk, liquidity risk,capital loss risk
Strategy highlights
• A well-diversified bond portfolio while benefiting from local specialised resources:- The fund consists of four core sleeves managed by specialist sleeve managers: USD BBB, USD BB, Euro (BBB / BB),
EMD USD and an off-benchmark allocation to ABS- The overall lead portfolio manager is responsible for fund and risk monitoring, overlay and tactical management
• Ability to invest strategically or tactically in additional asset classes or segments- Investment grade securities- B-rated entities- ABS- EMD local currency (up to 10% of fund)
• Euro assets hedged into USD, up to 10% EMD local currency risk• Rigorous fundamental bottom-up process
Jerry Samet
Potential sources ofperformance**
Issuers selection (fundamental) 50%
Regional allocation 15%
Sector allocation 10%
Credit allocation (beta) 15%
Duration 10%
Investment guidelines**
Currency ofassets (hedged tocomparativeindex)
USD (and max. 10% inemerging marketscurrency)
AllocationFour sleeves: USDBBB & BB, EUR BBB& BB, EMD and ABS
Tactical allocation
Investment grade, B-rated entities, ABS,EMD local currency(up to 10% of fund)
Strategy details
Launch 28.07.2010
Base ccy USD
AUM as at31/12/2016
2,933.20 million
ComparativeIndex*
35% Barclays EM USD, 20% BarclaysUS Agg. Corp. Baa 15% Barclays USHY Ba 15% BarclaysEuro Agg. Corp. Baa HedgedUSD15% Barclays Euro HY BB(USD Hedged)
Morningstarcategory
US Flexible Bond
Liquidity Daily
Allocation**
Typical number of highyield bonds
600-800
Max. % per bond 4%
Performance (%) as at 31 December 2016
2016 3Y ann. SI ann. 2015 2014 2013
Fund (A share class Net) 6.6 3.5 5.5 -1.4 5.5 1.3
Comparative index 9.5 5.3 6.5 0.1 2.4 2.4
Excess return -2.9 -1.8 -1.0 -1.5 3.1 -1.1
Non-contractual document
(I share)
19
HSBC GIF GEM Debt Total Return
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
M share: USD5,000 or equivalent
L share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (USA) Inc. Valuation Daily at 5:00pm (CET)
ISIN code M1C: LU0283739885M1CEUR:LU0551372856M1CHEUR: LU0795840619M1D: LU0283740032M1DHEUR:LU0795840700L1C: LU0310511422L1CEUR: LU0551372344
Ongoing charge Management fees1
M1 share: 1.00%L1 share: 0.50%
Administration feesM1 share: 0.35%L1 share: 0.25%
Risk/RewardProfile1
Main risks Credit risk, interest rate risk, foreignexchange risk, liquidity risk, emergingmarkets risk, capital loss risk
*Characteristics and weightings are for illustrative purposes only, are not guaranteed and are subject to change over time, and without prior notice, taking intoaccount any changes in markets. The performance figures displayed in the document relate to the past and past performance should not be seen as an indicationof future returns. 1The Management Company is also entitled to a Performance Fee as further detailed in the Full Prospectus (20% above 5% annual performanceor 5% of the NAV by share class – a hurdle rate). Representative overview of the investment process, which may differ by product, client mandate or marketconditions. Source: HSBC Global Asset Management. Data Source - © Copyright 2016 Morningstar, Inc. All Rights Reserved. The information contained herein:(1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. 1Rating is based on price volatilityover the last five years, and is an indicator of absolute risk; historical data may not be a reliable indication for the future; the rating is not guaranteed to remainunchanged and the categorization may shift over time; the lowest rating does not mean a risk-free investment.
• Flexible access and allocation within the full emerging markets debt opportunity set, both hard and local currencywith an ability to express short, medium, and long-term views irrespective of a benchmark
• Seeks to generate enhanced total return from capital growth and income while reducing volatility normally associatedwith emerging markets
• Asset allocation decision has been a key driver of returns
Potential sources ofperformance*
Country allocation 35%
Issuer selection 15%
Currency selection 15%
Yield curve positioning 15%
Instrument selection 10%
Duration management 10%
Investment guidelines*
Hard currency Flexible
Local currency Flexible
USD cash Flexible
Duration 1-4 years
Typical number ofsecurities 100 – 300
Typical number ofcountries 10 - 30
Strategy details
Launch 18/06/2007
Base currency USD
AUM as at 31/12/2016 3,860.85 million
Comparative Index n.a.
Morningstar categoryGlobal Emerging MarketsBond
Liquidity Daily
Net performance (%) as at 31 December 2016
2016 3Y ann. 5Y ann. 2015 2014 2013
Fund (M1 share class) 5.1 3.0 3.5 -2.2 6.4 -1.8
Non-contractual document
Strategy highlights
Nishant Upadhyay
(I share)
20
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
A share: USD5,000 or equivalent
I share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (USA) Inc. Valuation Daily at 5:00pm (CET)
ISIN code AC: LU0566116140; ACEUR: LU0551370132ACHEUR: LU0811140721AD: LU0566116223; ADEUR: LU0551370215ADHEUR: LU0543814684IC: LU0164944026; ICEUR: LU0551370306ICHEUR: LU0747734787; ID: LU0149732736IDEUR: LU0551370561IDHEUR: LU0431287282
Ongoing charge Management feesA share: 1.25%I share: 0.50%
Administration feesA share: 0.35%I share: 0.25%
Risk/RewardProfile1
Main risks Credit risk, interest rate risk, emerging marketsrisk, capital loss risk, Non-investment graderisk, derivative risk, CoCo-bond risk, currencyrisk
*Index given for comparative and illustrative purposes only. The fund is not managed to the index, is actively managed and returns may deviate materially from theperformance of the specified index. **Characteristics and weightings are for illustrative purposes only, are not guaranteed and are subject to change over time, andwithout prior notice, taking into account any changes in markets. The performance figures displayed in the document relate to the past and past performance shouldnot be seen as an indication of future returns. Representative overview of the investment process, which may differ by product, client mandate or market conditions.Source: HSBC Global Asset Management. Data Source - © Copyright 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) isproprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. NeitherMorningstar nor its content providers are responsible for any damages or losses arising from any use of this information. 1Rating is based on price volatility over thelast five years, and is an indicator of absolute risk; historical data may not be a reliable indication for the future; the rating is not guaranteed to remain unchangedand the categorization may shift over time; the lowest rating does not mean a risk-free investment.
Strategy details
Launch 24/07/1998
Base currency USD
AUM as at31/12/2016
3,686.13 million
Comparative Index*JP Morgan EMBIGlobal
Morningstar categoryGlobal EmergingMarkets Bond
Liquidity Daily
• Invests predominantly in emerging market sovereign and quasi-sovereign bonds and in bonds issued by companieswhich have their registered office in emerging markets, denominated in USD (EM hard currency)
• Tactical use of emerging market corporate bonds and local currency opportunities
• Average credit quality BBB and tactical use of EM corporate debt and local sovereigns and currencies
• Seeks to manage credit quality in emerging economies while reducing currency risk
• Spread compression and yield have been key drivers of performance
Net performance (%) as at 31 December 2016
2016 3Y ann. 5Y ann. 2015 2014 2013
Fund (A share class) 7.4 3.6 3.8 -1.5 5.0 -7.8
Comparative index 10.1 5.6 5.4 1.2 5.5 -6.6
Excess return -2.7 -2.0 -1.6 -2.7 -0.5 -1.2
Non-contractual document
Potential sources ofperformance**
Country allocation 50%
Issuer selection 15%
Currency selection 10%
Yield curve positioning 10%
Instrument selection 10%
Duration management 5%
Investment guidelines**
Hard currencysovereigns 65 - 80%
Hard currency quasi-sovereigns 15 - 35%
Hard currencycorporates 5 - 15%
Local currency 0 - 15%
Duration+/- 2 year ofbenchmark*
Typical number ofsecurities 200 - 300
Typical number ofcountries 30 - 45
HSBC GIF Global EmergingMarkets Bond
Strategy highlights
Nishant Upadhyay
(I share)
21
HSBC GIF Euro Bond
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
A share: USD5,000 or equivalent
I share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (France) Valuation Daily at 5:00pm (CET)
ISIN code AC: LU0165129312
AD: LU0165129403
IC: LU0165130088
ID: LU0165129825
Ongoing charge Management feesA share: 0.75%I share: 0.375%
Administration feesA share: 0.25%I share: 0.15%
Risk/RewardProfile 1
Main risks Credit risk, interest rate risk, capital lossrisk
*Comparative index is for illustrative purposes only as the fund has no official benchmark. **Characteristics and weightings are for illustrative purposes only, are notguaranteed and are subject to change over time, and without prior notice, taking into account any changes in markets. The performance figures displayed in thedocument relate to the past and past performance should not be seen as an indication of future returns. Representative overview of the investment process, which maydiffer by product, client mandate or market conditions. Source: HSBC Global Asset Management. Data Source - © Copyright 2016 Morningstar, Inc. All RightsReserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warrantedto be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.1Rating is based on price volatility over the last five years, and is an indicator of absolute risk; historical data may not be a reliable indication for the future; the rating isnot guaranteed to remain unchanged and the categorization may shift over time; the lowest rating does not mean a risk-free investment.
Strategy highlights
Strategy details
Launch 18/12/2001
Base currency EUR
AUM as at31/12/2016
188.78 million
Comparative Index*Barclays EuroAggregate
Morningstarcategory
EUR DiversifiedBond
Liquidity Daily
Portfolio characteristics**
Currency ofassets (hedgedto comparativeindex)
EUR
Allocation
Europe, OECD countries
Sovereigns andCorporate bonds
Tacticalallocation
Investment grade
• Invests in a diversified range of government, covered, agencies/supranationals and corporate (financial and non-financial)
investment grade bonds (Baa3/BBB- according to Moody’s and Standard & Poor’s respectively) issued in Euro
• The portfolio typically consists of 80-100 issues. A breakdown of the type of active positions held in the portfolio is as follows:
– 35 - 45 bond picking bets
– 3 - 10 sector bets
– 1 - 3 credit exposure bets
Jean-PhilippeMunch
Performance (%) as at 31 December 2016
2016 3Y ann. 5Y ann. 2015 2014 2013
Fund (A share class Net) 3.3 4.2 5.5 -1.1 10.8 2.2
Comparative index 3.3 5.1 5.7 1.0 11.1 2.2
Excess return 0.0 -0.9 -0.2 -2.1 -0.3 0.0
Non-contractual document
Potential sources of performance**
Issuer selection 30%
Sector allocation 5%
Credit allocation 10%
Duration & curve 50%
Arbitrages 5%
KarenBenouaich
(I share)
22
HSBC GIF Euro Credit Bond
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
A share: USD5,000 or equivalent
I share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (France) Valuation Daily at 5:00pm (CET)
ISIN code AC: LU0165124784
AD: LU0165124867
IC: LU0165125831
ID: LU0165125914
Ongoing charge Management feesA share: 0.85%I share: 0.425%
Administration feesA share: 0.25%I share: 0.20%
Risk/RewardProfile 1
Main risks Credit risk, interest rate risk, capital lossrisk
*Comparative index is for illustrative purposes only as the fund has no official benchmark. **Characteristics and weightings are for illustrative purposes only, are notguaranteed and are subject to change over time, and without prior notice, taking into account any changes in markets. The performance figures displayed in thedocument relate to the past and past performance should not be seen as an indication of future returns. Representative overview of the investment process, which maydiffer by product, client mandate or market conditions. Source: HSBC Global Asset Management. Data Source - © Copyright 2016 Morningstar, Inc. All RightsReserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warrantedto be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.1Rating is based on price volatility over the last five years, and is an indicator of absolute risk; historical data may not be a reliable indication for the future; the rating isnot guaranteed to remain unchanged and the categorization may shift over time; the lowest rating does not mean a risk-free investment.
Strategy highlights
Strategy details
Launch 04/04/2003
Base currency EUR
AUM as at31/12/2016
1,138.15 billion
Comparative Index*Markit iBoxx EURCorporates
Morningstar categoryEUR CorporateBond
Liquidity Daily
Portfolio characteristics**
Currency ofassets (hedgedto comparativeindex)
EUR
AllocationEurope, non Europe
Corporate bonds
Tacticalallocation
Investment grade
10 % maximum of its netassets in High Yieldissues
• Primarily invests in euro-denominated corporate bonds carrying a minimum credit rating of Baa3/BBB- (according to Moody’s
and Standard & Poor’s respectively), with the opportunity to invest up to 10% in High Yield issues
• The portfolio typically consists of 80-120 credit bonds. A breakdown of the type of active positions held in the portfolio is as
follows:
– 50 - 80 bond picking bets– 2 - 8 sector bets– 2 - 5 credit exposure bets
• The team seeks to invest in stable-to-improving credits at attractive valuations
• This involves proprietary valuation models designed to identify bonds that offer attractive risk premiums and in-depth credit
research to assess the effective risk entailed
Jean-OlivierNeyrat
Performance (%) as at 31 December 2016
2016 3Y ann. 5Y ann. 2015 2014 2013
Fund (A share class Net) 3.3 3.4 6.2 -0.6 7.7 3.1
Comparative index 4.7 4.0 5.5 -0.7 8.2 2.2
Excess return -1.4 -0.6 0.7 -0.1 -0.5 0.9
Non-contractual document
Potential sources of performance**
Issuers selection (fundamental) 40%
Issuer selection (relative Value) 10%
Sector allocation 10%
Credit allocation 10%
Duration & curve 30%
ErwanOlivier
(I share)
23
HSBC GIF Euro Credit BondTotal Return
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
A share: USD5,000 or equivalent
I share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (France) Valuation Daily at 5:00pm (CET)
ISIN code AC : LU0988492970
AD : LU0988493192
IC : LU0988493606
ID : LU0988493788
Ongoing charge Management feesA share: 0.90%I share: 0.45%
Administration feesA share: 0.25%I share: 0.20%
Risk/RewardProfile 1
Main risks Credit risk, interest rate risk, liquidity risk,capital loss risk
*Characteristics and weightings are for illustrative purposes only, are not guaranteed and are subject to change over time, and without prior notice, taking into accountany changes in markets. The performance figures displayed in the document relate to the past and past performance should not be seen as an indication of futurereturns. Representative overview of the investment process, which may differ by product, client mandate or market conditions. Source: HSBC Global AssetManagement. Data Source - © Copyright 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or itscontent providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers areresponsible for any damages or losses arising from any use of this information. 1Rating is based on price volatility over the last five years, and is an indicator of absoluterisk; historical data may not be a reliable indication for the future; the rating is not guaranteed to remain unchanged and the categorization may shift over time; thelowest rating does not mean a risk-free investment.
Strategy highlights
• The fund benefits from bottom-up issuer selection based on the best ideas from our global credit platform as well as adynamic and flexible top-down input to express our views on macroeconomic scenarios
• The strategy has been designed for investors seeking diversified exposure to euro fixed income markets through a broadinvestment universe (government bonds, agencies, covered, credit, hybrids, floaters, CDS)
• The fund’s flexibility is also facilitated by its large investment universe made of a broad range of sub-asset classes andinstruments such as:− Euro or euro-hedged credit bonds (investment grade and high yield)− CDS (either on indices or single names), futures and options− Government bonds and cash (for beta and liquidity management)
Strategy details
Launch 12/12/2013
Base ccy EUR
AUM as at31/12/2016
257.85 million
ComparativeIndex
n.a.
Morningstar categoryOE EUR FlexibleBond
Liquidity Daily
Potential sources of performance*
Duration & curve 40%
Credit allocation 35%
Issuer selection 25%
Investment guidelines*
Currency ofassets (hedged tocomparativeindex)
EUR
Non EUR
Allocation
- Europe, nonEurope
- Sovereigns,Corporate bonds,CDS
Tactical allocationInvestment grade
and high yield issues
Allocation*
Typical number of highyield bonds
80-120
Max. % per bond n.a.
Performance (%) as at 31 December 2016
2016 3Y ann. SI ann. 2015 2014 2013
Fund (A share class Net) 2.2 2.8 9.0 -0.7 7.0 -
Non-contractual document
Jean-OlivierNeyrat
ErwanOlivier
(I share)
24
HSBC GIF Euro HighYield Bond
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
A share: USD5,000 or equivalent
I share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (France) Valuation Daily at 5:00pm (CET)
ISIN code AC: LU0165128348
AD: LU0165128421
IC: LU0165129072
ID: LU0165129155
Ongoing charge Management feesA share: 1.10%I share: 0.55%
Administration feesA share: 0.25%I share: 0.20%
Risk/RewardProfile 1
Main risksCredit risk, interest rate risk, liquidity risk,capital loss risk
*Comparative index is for illustrative purposes only as the fund has no official benchmark. **Characteristics and weightings are for illustrative purposes only, are notguaranteed and are subject to change over time, and without prior notice, taking into account any changes in markets. The performance figures displayed in thedocument relate to the past and past performance should not be seen as an indication of future returns. Representative overview of the investment process, which maydiffer by product, client mandate or market conditions. Source: HSBC Global Asset Management. Data Source - © Copyright 2016 Morningstar, Inc. All RightsReserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warrantedto be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.1Rating is based on price volatility over the last five years, and is an indicator of absolute risk; historical data may not be a reliable indication for the future; the rating isnot guaranteed to remain unchanged and the categorization may shift over time; the lowest rating does not mean a risk-free investment.
Strategy highlights
• Core investment universe: BB and B rated corporate bonds
• Investments on an opportunistic basis on Investment Grade or CCC-rated bonds
• All bonds held in the portfolio are denominated in Euro or hedged back to Euro
• Use of CDS (single names and indices) on a long and short basis
• Portfolio typically holds 60-75 High Yield issuers (maximum 4% per issuer) selected on the basis of inputs from the Credit
Research platform
PhilippeIgigabel
Potential sources of performance**
Issuers selection (fundamental) 50%
Issuer selection (relative Value) 10%
Sector allocation 10%
Credit allocation 25%
Duration 5%
Investment guidelines**
Currency ofassets
EUR
Euro or hedged backto Euro (currently 8%of GBP
denominated bonds)
AllocationEuro zone, Europe,OECD countries
Tactical allocation
BB and B ratedcorporate bonds
Investment Grade orCCC-rated bonds onan opportunistic basis
Strategy details
Launch 04.04.2003
Base ccy EUR
AUM as at31/12/2016
2,166.54 billion
ComparativeIndex*
BofA Merrill Lynch EuroHigh Yield BB-BConstrained
Morningstarcategory
EUR High Yield Bond
Liquidity Daily
Allocation**
Typical number of highyield bonds
120-160
Max. % per bond n.a.
Performance (%) as at 31 December 2016
2016 3Y ann. 5Y ann. 2015 2014 2013
Fund (A share class Net) 6.4 4.5 9.2 0.8 6.3 7.9
Comparative index 9.4 5.2 10.0 0.5 6.0 9.6
Excess return -2.9 -0.7 -0.8 -0.3 0.3 -1.7
Non-contractual document
SophieSentilhes
(I share)
25
HSBC GIF RMB Fixed Income
Non contractual document
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
A share: USD5,000 or equivalent
I share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (Hong Kong)Limited
Valuation Daily at 5:00pm (CET)
ISIN code AC: LU0692309627; ACOEUR : LU0782296676AD: LU0692309460
IC: LU0692310807; ICEUR: LU0708054647;ID: LU0692310633
Ongoing charge Management feesA share: 0.75%I share: 0.375%
Administration feesA share: 0.25%I share: 0.20%
Risk/RewardProfile 1
Main risks Credit risk, interest rate risk, foreignexchange risk, liquidity risk, emergingmarkets risk, capital loss risk
*Comparative index is for illustrative purposes only as the fund has no official benchmark. **Characteristics and weightings are for illustrative purposes only, are notguaranteed and are subject to change over time, and without prior notice, taking into account any changes in markets. The performance figures displayed in thedocument relate to the past and past performance should not be seen as an indication of future returns. Representative overview of the investment process, which maydiffer by product, client mandate or market conditions. Source: HSBC Global Asset Management. Data Source - © Copyright 2016 Morningstar, Inc. All RightsReserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warrantedto be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.1Rating is based on price volatility over the last five years, and is an indicator of absolute risk; historical data may not be a reliable indication for the future; the rating isnot guaranteed to remain unchanged and the categorization may shift over time; the lowest rating does not mean a risk-free investment.
Strategy highlights
Strategy details
Launch 25/10/2011
Base currency USD
AUM as at 31/12/2016 64.06 million
Comparative Index*Offshore Renminbi OvernightDeposit Rate
Morningstar category RMB Bond
Liquidity Daily
Portfolio characteristics**
Average credit quality A3/Baa3
Typical number of securities 50-100
• This fund is characterised by bottom-up issuer selection; seeking quality companies (highly sensitive to corporate governanceissues in some of the less well developed markets)
• The fund invests in offshore (CNH) Renminbi bonds; pure Renminbi exposure (no active currency allocation)
• The aim is to achieve a high quality / low duration portfolio
• Credit analysis is key in the investment process; analysis is based on a rigorous issuer selection process which relies onfundamental research with a strong focus on qualitative factors; will buy high yield bonds on a selective basis, although theallocation to these will be limited
• The credit research team (6 based in Hong Kong and 3 in China) leverages the integrated global credit research platform ofanalysts based in New York, London, Paris and Hong Kong with sector and geographic specialisation
• Credit analysts define the universe of eligible investments. Their primary goal is to avoid credit events
• Portfolio managers are responsible for portfolio construction; they set portfolios betas, country and industry allocations as wellas tactical bets and arbitrages
Alfred MuiGregory Suen
Performance (%) as at 31 December 2016
2016 3Y ann. SI ann. 2015 2014 2013
Fund (A share class Net) -2.2 -1.8 1.2 -2.6 -0.7 6.1
Non-contractual document
(I share)
26
HSBC GIF Asian Currencies Bond
Non contractual document
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
A share: USD5,000 or equivalent
I share: USD1,000,000
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (Hong Kong)Limited
Valuation Daily at 5:00pm (CET)
ISIN code AC: LU0210635099; ACEUR: LU0712166163AD: LU0210635255IC: LU0210635685;ID: LU0210635842; IDEUR: LU0643830515
Ongoing charge Management feesA share: 1.25%I share: 0.625%
Administration feesA share: 0.35%I share: 0.25%
Risk/RewardProfile 1
Main risks Credit risk, interest rate risk, foreignexchange risk, liquidity risk, emergingmarkets risk, capital loss risk
*Comparative index is for illustrative purposes only as the fund has no official benchmark. **Characteristics and weightings are for illustrative purposes only, are notguaranteed and are subject to change over time, and without prior notice, taking into account any changes in markets. The performance figures displayed in thedocument relate to the past and past performance should not be seen as an indication of future returns. Representative overview of the investment process, which maydiffer by product, client mandate or market conditions. Source: HSBC Global Asset Management. Data Source - © Copyright 2016 Morningstar, Inc. All RightsReserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warrantedto be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.1Rating is based on price volatility over the last five years, and is an indicator of absolute risk; historical data may not be a reliable indication for the future; the rating isnot guaranteed to remain unchanged and the categorization may shift over time; the lowest rating does not mean a risk-free investment.
Strategy highlights
Strategy details
Launch 27/04/2011
Base currency USD
AUM as at 31/12/2016 33.47 million
Comparative Index*Markit iBoxx Pan AsiaBond ex China & HK
Morningstar categoryEAA OE Asia Bond -Local Currency
Liquidity Daily
GordonRodrigues
Portfolio characteristics**
Target outperformance 100 bps
Target tracking error 0 - 3%
Average portfolio turnover 100 - 150%
Typical number of securities 50-75
Typical number of countries 8
Performance (%) as at 31 December 2016
YTD 3Y ann. SI ann. 2015 2014 2013
Fund (A share class Net) -1.3 -2.5 -1.0 -8.0 2.1 -7.2
Comparative index 1.3 -0.7 0.2 -6.0 2.9 -6.2
Excess return -2.6 -1.8 -1.2 -2.0 -0.8 -1.0
• This strategy looks to take advantage of the rapidly growing local currency bond markets
- The new offshore renminbi market is an exciting innovation
- The market is dominated by government bonds, but corporates are a growing sector
• The strategy is managed against a comparative customised Markit iBoxx Pan Asia Bond ex HKD and CNY which is morereplicable than other indices. HKD excluded because of HKD peg and low yields; CNY because the onshore market isinaccessible
• This strategy can be flexible, taking off benchmark positions in
- Corporate bonds
- Non-benchmark currencies (CNH and INR)
- Dollar bonds hedged back into local currencies
Non-contractual document
J. Teo(I share)
Multi-Asset
28
HSBC Global Asset Management, Multi-AssetBusiness
• Over 20 years of experience managing Multi-Asset solutionsdesigned to meet our clients’ financial objectives
• A globally consistent investment approach blending themerits of quantitative and qualitative methods:
• Active asset allocation
• Valuation driven approach
• Focus on risk management and cost efficient fulfilment
Multi-Asset business: large and diversified
~60 investmentprofessionals
~60 investmentprofessionals
5 Key offices: Hong Kong,Paris, Düsseldorf, London
and Vancouver
5 Key offices: Hong Kong,Paris, Düsseldorf, London
and Vancouver
USD55.6 bnunder management
USD55.6 bnunder management
USD75.1 bnunder distribution
USD75.1 bnunder distribution
Multi-Asset statistics
Multi-Asset AUM (USD55. bn) as at end of September 2016
Global Resources, local implementation
• Multi-Asset investment teams receive input from:
- Global investment support teams (Asset Allocation, Macro, Portfolio Design)
- Fixed Income and Equity investment teams
• Our organisation ensures cohesiveness and consistency, while maintaining the teams’ autonomy
North AmericaInvestment
professionals 45EMEA
Investmentprofessionals 6
AsiaInvestment
professionals4
Canada
USA
Mexico
Argentina
Bermuda
UKFrance
Germany
Turkey
India HongKong
Taiwan
USD43.1 billion AUM
USD38.0 billion AUDEMEA
USD3.6 billion AUM
USD24.3 billion AUDAsia
USD8.8 billion AUM
USD12.9 billion AUD
NorthAmerica
Non-contractual document
• Our Multi-Asset’s client base is well diversified across our key clientsegments, with a fair split between institutional and retail clients
• Institutional investors represent a significant part of our assets,reflecting our long experience in managing institutional mandates withspecific constraints. Their needs are evolving from benchmarkedsolutions to total or absolute return strategies
• Wealth investors is a fast growing segment as Multi-Asset productsare becoming the default option for outcome oriented solutions formanaging and growing their wealth
Retail (45%)
Private Bank /Wholesale (3%)
Insurance (13%)
Institutional (39%)
Source: Assets under management and assets under distribution as at 30 September 2016.
29
Leadership structure and teams
• Global Multi-Asset Strategy
• Local tactical asset allocationdecisions
• Ongoing review of risk/returncontribution
• Monthly committees - weeklyinvestment calls
Global with local accountability
• Portfolio construction reviewedglobally
• Asset valuation agreed globally
• Portfolio governance reviewedindependently
Global oversight of processes
• Promotes best practice andconsistency while maintainingteam ownership of performance
• Ties in management of globaland regional process andgovernance frameworks
Benefits of a global team
Multi-Asset CIOsMulti-Asset CIOs
Chris CheethamGlobal CIO
Chris CheethamGlobal CIO
Babak KianiGermany
Babak KianiGermany
J.C. BertrandFrance
J.C. BertrandFrance
Denis GouldAsia
Denis GouldAsia
Philip GlazeUK
Philip GlazeUK
Erick VegaLatAm
Erick VegaLatAm
Jim HugganNorth AmericaJim Huggan
North America
Global Multi-Asset StrategyGlobal CIO / Local CIOs
Heads of local MA Teams
Global Multi-Asset StrategyGlobal CIO / Local CIOs
Heads of local MA Teams
Global Investment StrategyJoseph Little
(+10 Professionals)
Global Investment StrategyJoseph Little
(+10 Professionals)
Portfolio Analytics and DesignIan Barnett
(+5 Professionals)
Portfolio Analytics and DesignIan Barnett
(+5 Professionals)
Product SpecialistsStéphane Levy
(+8 Professionals)
Product SpecialistsStéphane Levy
(+8 Professionals)
Global resources availablefor local teams
Non-contractual document
Source: HSBC Global Asset Management. Multi-Asset Investment professionals data as at 30 September 2016. For illustrative purpose only
An overview of our philosophy and approach
• Our Multi-Asset capabilities combine multiple alpha sources in both developed and emerging markets and aim to optimiserisk adjusted returns
• We believe asset class prices are excessively volatile compared with underlying fundamentals
- These price fluctuations generate opportunities which can be identified through:
- Analysis of common factors such as valuation, economic cycle, profitability
- Analysis of specific factors (size, quality, confidence, results revision, rate levels,…)
• Our investment process is based on discipline, transparency and control
• Risk budgeting and risk management contribute to performance
• When selecting our underlying investments, we consider Environmental, Social and Governance (ESG) issues as acomponent of our investment due diligence
Our global process provides a well structured environment for local investment teams
30
HSBC GIF Multi-Asset Style Factors
Fund details
Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment
I share: USD1,000,000*
Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)
Investment advisor HSBC Global Asset Management (Hong Kong)Limited
Valuation Daily at 5:00pm (CET)
ISIN code IC: LU1460782227* Ongoing charge Management feesI share: 0.70%*
Administration feesI share: 0.20%*
Risk/RewardProfile 1
Main risks Interest rate risk, equity risk, foreignexchange risk, derivative risk,counterparty risk, emerging markets risk,capital loss risk
* I share class: for all investors. ** Comparative index is for illustrative purposes only as the fund has no official benchmark. *** Characteristics and weightings are forillustrative purposes only, are not guaranteed and are subject to change over time, and without prior notice, taking into account any changes in markets. Theperformance figures displayed in the document relate to the past and past performance should not be seen as an indication of future returns. Representative overviewof the investment process, which may differ by product, client mandate or market conditions. Source: HSBC Global Asset Management. Data Source - © Copyright 2016Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied ordistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arisingfrom any use of this information. 1Rating is based on price volatility over the last five years, and is an indicator of absolute risk; historical data may not be a reliableindication for the future; the rating is not guaranteed to remain unchanged and the categorization may shift over time; the lowest rating does not mean a risk-freeinvestment.
Strategy highlights
Strategy details
Launch 7/10/2016 (I share class*)
Base currency EUR
AUM at launch 104 million
Comparative Index** Eonia Capitalised
Morningstar category Alt-Multistrategy
Liquidity Daily
Portfolio characteristics***
Allocation 9 portfolios (3 asset classes x 3 style factors)
Allocationguidelines
Equity: +/-100%; +/-50% on average
Bond Duration: +/- 18 years; +/- 9 years on average
Currency: +/-100%; +/-60% on average
Total leverage: +/-325%; +/-225% on average
Rebalancing Weekly
Volatility 6-8% with limited directional risk
• The strategy aims to provide long term total return with low correlation to traditional asset classes
• The strategy employs long/short investment strategies within a set of distinct investment “styles” across asset classes (equity,fixed income, DM and currency) and on a global basis including emerging markets
• Investment process:
- Combines 3 style factors (value, carry and momentum) as sources of alpha
- Portfolio construction combines risk parity and weighting methodology to ensure transparent “relative value” solution
• The strategy is implemented using highly liquid derivatives only: index futures, interest rate swaps, currency forwards(including non-deliverable forwards). This makes the portfolio easy to look through in a Solvency II context
• The portfolio is leveraged (up or down) to align with the expected volatility with the targeted risk profile
Performance (%) as at 31 December 2016
YTD 3Y 5Y 2015 2014 2013
Fund (I)* Fund performance will be shown when it is possible to show two time periods
Non-contractual document
M. Guillemet K. Desaulty
ESG Integration
(Environmental, Social andGovernance)
32
Active investment/ESG integrationWe believe that Environment, Social and Governance(ESG) issues can have a material effect on companyfundamentals, in terms of both opportunities and risks.ESG analysis can highlight latent risks and provide earlywarning signals of a potential deterioration of companyfundamentals. Considering ESG factors is an essentialpart of our investment due diligence for active strategies.
We would expect company management to activelyconsider ESG issues within their company strategy andoperations. If they do, the company would be betterplaced to strengthen its competitive position and deliversustained or improving cash flow and profitability. Suchcompanies would contribute to sustainable economicgrowth.
Individual security analysis is assigned to individualinvestment team members, who are responsible for bothfinancial and ESG analysis and, ultimately, the securityrecommendation. This ensures that ESG factors aregiven appropriate weighting in investmentrecommendations and decision-making.
We capture ESG research in our "Global ESG IntranetResearch Platform.“ We add four proprietary analyses toour internal and external data:
1. ESG Roadmap: Materiality of ESG factors by sector
2. ESG Rating: Visible in our investment team’s desktopdecision support system alongside information thatsupports idea generation and portfolio construction
3. ESG Risk Category: We consider an Absoluteapproach by assessing the company’s compliancewith the United Nations Global Compact. We alsoconsider a Relative approach by considering thecompany ESG Rating relative to other companieswithin sectors. An additional layer of “due diligence” isrequired for high risk companies, which requires theinvestment case to be reviewed by the local CIO whowould make the final investment decision
4. Executive Summary: summary snapshot by company
Responsible Investment
Voting ReportingEngagementActive investment/
ESG integration
ReportingAs a signatory to the Montreal Carbon Pledge, on 1December 2015, we reported our carbon footprint forequity portfolios managed in Hong Kong, London andParis.
EngagementFor active strategies, the investment team meets regularlywith companies, both investees and potential investments,providing opportunities to engage with seniormanagement and monitor company performance. Theprincipal objective of our discussions is to understand howcompany management is delivering sustainableprofitability and shareholder returns. We will raise ESGissues to understand management’s perspective andstrategy.
In addition, we aim to undertake specific engagementactivities with companies in serious breach of principlesoutlined in the United Nations Global Compact. Thesecompanies pose high risks to longer-term economicsustainability and growth, and therefore equity marketreturns.
The HSBC Group is engaged
1992: United Nations Environment ProgrammeFinance Initiative
2000: United Nations Global Compact
2003: Equator Principles (founder)
2006: United Nations Principles for ResponsibleInvestment (UN PRI)*
2012: Principles for Sustainable Insurance
2015: Montreal Carbon Pledge
Holistic responsible investing approach
VotingProxies are voted per client instructions or, secondarily, perour Global Proxy Voting policy which reinforces goodgovernance practices. We maintain a record of our votingdecisions including the rationale when we do not supportmanagement.
Non-contractual document
* The UN PRI HSBC Global Asset Management’s RI Transparency Report is publicly available through the UN PRI websiteFor illustrative purposes only. Source: HSBC Global Asset Management – September 2016
33 Document non contractuel
ESG (Environment, Social and Governance) criteriaIntegrated into our investment processes
Integration of ESG criteria is key in our security selection
• Absolute: level of consistency/adherence to the 10 ONU principles
• Relative approach: ranking from 0 to 10 and per percentile. Source: MSCI ESGResearch & GMI and our ESG internal weightings by sector
• The results of the ratings are ranked from 0 to 10 (10 is best) and a percentileranking is issued (100th is best rate)
Absoluteand
relativeapproach
Ratings:
• « High Risk » : company violated 1 or several of the 10 ONU principles, or ranked inthe 5 last percentile
• « Medium Risk » : company is suspected as not fulfilling 1 of the 10 principles, orranked between 5th and 20th percentiles
• « Low Risk » : identify/determine? Company complies to ONU principles, or rankedbetween 20th and 100th percentiles
Ratings:
• « High Risk » : company violated 1 or several of the 10 ONU principles, or ranked inthe 5 last percentile
• « Medium Risk » : company is suspected as not fulfilling 1 of the 10 principles, orranked between 5th and 20th percentiles
• « Low Risk » : identify/determine? Company complies to ONU principles, or rankedbetween 20th and 100th percentiles
Risk rankingacross
ESGintranet tool
• High, Medium and Low ratings are available in the "Font-office" tools
• « Executive Summary» for each stock (hosted on internal website tool)
• Financial and ESG analysis: for new investment cases, annual reviews andmonitoring of « High Risk »
• A «Due Diligence» is required for all « High Risk » names along with decisions fromlocal CIO who is responsible of the final decision (maintain, under monitoring,exclusion)
RiskManagement
• Voting policy favors governance practice
• We publish an annual report summarising voting decisions and reasons for which wedid support resolutions
For additional information related to the voting poilicy and the exercise of voting rightsis available in the annual report, please refer to the following website:http://www.assetmanagement.hsbc.com/fr/footer/politique.html
Votingright
• A dedicated team of "Engagement" meets both companies held in the portfolio
• The aim of this engagement actions is to create awareness and to increaseunderstanding of our concerns and expectations
• Engagement actions will define our voting decisions and whether the stock shouldbe liquidated
Engagement
Source: HSBC Global Asset Management. For illustrative purposes only. Representative overview of the investment process, which may differ by product,client mandate or market conditions.
Client communication andmaterials
35
Investment and corporate materials
Weekly iNews – over 400 clients are following us!
Investment communication pack
• Weekly, monthly updates (ID, IM)
• New World Insights (NWI)
• Investment Event (IE) publications
• Macro Insight
IW: Investment weekly IM: Investment monthly
IE: Investment Events Macro Insight
Bi-annual investment outlook (e-magazine w/ embedded videos)
• December – June | Macro Insight
– Overview
– Interviews with Global CIOs
– Webinars per asset class
– Outlook per asset class
China Insights India Insights Europe Insights
For illustrative purposes only. Source: HSBC Global Asset Management – June 2016
36
Investment and corporate materials
Fund presentations Fund overviews
• HSBC Global Asset Management Overview
• Organisation, team, and capabilities
• Focus on Fund
• Investment process, portfolio constructionand risk management
• Key features of the fund; HSBC Credentials,
risks, fund details
Capability brochures Capability publications
Handbooks Educational publications
For illustrative purposes only. Source: HSBC Global Asset Management – June 2016
37
Important information
This publication is distributed by HSBC Global Asset Management (France) and is only intended for professional investors as defined byMiFID.
The information contained herein is subject to change without notice. All non-authorised reproduction or use of this commentary and analysiswill be the responsibility of the user and will be likely to lead to legal proceedings. This document has no contractual value and is not by anymeans intended as a solicitation, nor a recommendation for the purchase or sale of any financial instrument in any jurisdiction in which suchan offer is not lawful. The commentary and analysis presented in this document reflect the opinion of HSBC Global Asset Management onthe markets, according to the information available to date. They do not constitute any kind of commitment from HSBC Global AssetManagement (France). Consequently, HSBC Global Asset Management (France) will not be held responsible for any investment ordisinvestment decision taken on the basis of the commentary and/or analysis in this document.
All data come from HSBC Global Asset Management unless otherwise specified. Any third party information has been obtained from sourceswe believe to be reliable, but which we have not independently verified. Representative overview of the investment process, which may differby product, client mandate or market conditions.
The funds presented in this document may not be registered and/or authorised for sale in your country. The performance figures displayed inthe document relate to the past and past performance should not be seen as an indication of future returns. It is important to remember thatthe value of investments and any income from them can go down as well as up and is not guaranteed. Please note that the fund is authorisedto invest a in structured products and derivatives, which may be less liquid than standard bond issues. Please note that the fund is invested ininvestment grade, below investment grade and non rated issues. Non rated issues represent a higher risk of default compared to InvestmentGrade issues. Fluctuations in the rate of exchange of currencies may have a significant impact on fund performance.
Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC Global Asset Management(France) accepts no liability for any failure to meet such forecast, projection or target.
The above mentioned target/limits/objectives is/are to be considered on the recommended minimum investment period; there can be noassurance that the strategy of the fund will achieve this objective.
The funds mentioned may be exposed to Over the Counter (OTC) markets for all or part of its total assets. Certain funds will therefore besubject to the risk that its direct counterparty will not perform its obligations under the OTC transactions and that the Sub-Fund will sustainlosses. Funds may be exposed to specific risk such as emerging markets, interest rates, credit risk, high yield risk, equity risk, fixed incomerisk, small caps risk, contingent convertible security risk, exchange risk, derivative risk, ABS risk, alternative risk, operational risk, focusedstrategy risk.
Investment in Financial Derivative Instruments (FDI) may result in losses in excess of the amount invested. This is because a smallmovement in the price of the underlying financial instrument may result in a substantial movement in the price of the FDI. The performancefigures displayed in the document relate to the past and past performance should not be seen as an indication of future returns.
All subscriptions in any fund presented in this document are accepted only on the basis of the current prospectus, available on request fromHSBC Global Asset Management (France), the centralisation agent, the financial department or the usual representative. Before subscription,investors should refer to the Key Investor Information Document (KIID) and/or the simplified prospectus of the fund as well as its completeprospectus. For more detailed information on the risk associated with the sub-fund, investors should refer to the complete prospectus of thesub-fund. The funds presented are a sub-funds of HSBC Global Investment Funds, a Luxemburg domiciled SICAV. Shares of the Companymay not be offered or sold for sale or sold to any "U.S. Person within the meaning of the Articles of Incorporation, i.e. a citizen or resident ofthe United States of America (the "United States"), a partnership organised or existing under the laws of any state, territory or possession ofthe United States, or a corporation organised or existing under the laws of the United States or of any state, territory or possession thereof, orany estate or trust, other than an estate or trust the income of which from sources outside the United States is not includible in gross incomefor purposes of computing United States income tax payable by it.
Important information for Luxembourg investors: HSBC entities in Luxembourg are regulated and authorised by the Commission deSurveillance du Secteur Financier (CSSF).
Important information for Swiss investors: This document has no contractual value and is not by any means intended as a solicitation, nor arecommendation for the purchase or sale of any financial instrument. This document may be distributed in Switzerland only to qualifiedinvestors according to Art. 10 para 3, 3bis and 3ter of the Federal Collective Investment Schemes Act (CISA).
The presented funds are authorised for distribution in Switzerland in the meaning of Art. 120 of the Federal Collective Investment SchemesAct. (Potential) investors are kindly asked to consult the latest issued Key Investor Information Document (KIID), prospectus, articles ofincorporation and the (semi-)annual report of the fund which may be obtained free of charge at the head office of the representative: HSBCGlobal Asset Management (Switzerland) Ltd., Gartenstrasse 26, P.O. Box, CH-8002 Zurich. Paying agent: HSBC Private Bank (Suisse) S.A.,Quai des Bergues 9-17, P. O. Box 2888, CH-1211 Geneva 1. Investors and potential investors should read and note the risk warnings in theprospectus and relevant KIID. Before subscription, investors should refer to the prospectus for general risk factors and to the KIID for specificrisk factors associated with this fund. Issue and redemption expenses are not taken into consideration in the calculation of performance data.
The above document has been approved for distribution/issue by the following entities:
HSBC Global Asset Management (France) 421 345 489 RCS Nanterre. Portfolio management company authorised by the French regulatoryauthority AMF (no. GP99026) with capital of 8.050.320 euros. Offices: Immeuble Cœur Défense, 110, esplanade du Général Charles deGaulle, 92400 Courbevoie - La Défense 4 . (Website: www.assetmanagement.hsbc.com/fr). Postal address: 75419 Paris cedex 08, France.
HSBC Global Asset Management (Switzerland) Limited. Gartenstrasse 26, P.O. Box, CH-8027 Zurich, Switzerland (Website:www.assetmanagement.hsbc.com/ch). Copyright © 2016. HSBC Global Asset Management (France). All rights reserved.
Copyright © 2017. HSBC Global Asset Management (France). All rights reserved. Updated in January 2017.
AMFR_Ext_189_2016 valid until March 2017
Non-contractual document