HSBC Global Investment Funds - Indian Equity

Transcription

1 HSBC Global Investment Funds - Indian Equity SG Share Class 30 Nov /11/2017 Fund Objective and Strategy The Fund seeks long-term total return (meaning capital growth and income) by investing in a portfolio of shares (or securities that are similar to shares) of Indian companies. The companies issuing these shares have a registered office and official stock-market listing in India, or carry out most of their business there. In normal market conditions, at least 90% of the Fund s assets are invested in such companies. There aren t restrictions on the market values (also known as market capitalisation) of the companies held in the Fund. The Fund will not invest more than 30% of its assets in a combination of participation notes and convertible securities. See the Prospectus for a description of derivative usage. Performance (%) YTD 1M 3M 1Y 3Y¹ 5Y¹ Since Share Class Details Inception¹ UCITS V Compliant (Net) Subscription Mode Benchmark Distribution Type Distribution Frequency Dealing Frequency Calendar Year Performance (%) Yes Distributing Annually Daily 17:00 Luxembourg Valuation Time Min. Initial Investment 1,000 (Net) Annual Management Fee 1.50% Benchmark Max. Initial Charge 5.25% Redemption Fee 0.00% 3-Year Risk Base Currency Measures Benchmark Characteristics Fund Benchmark Domicile Luxembourg Number of Holdings ISIN LU Volatility 18.9% 17.1% ex Cash 29 Feb 1996 Tracking Error Information Ratio 5.0% Beta Avg Market Cap ( mil) Past performance is not an indicator of future returns. The figures are calculated in the share class base currency, dividend reinvested. Source: HSBC Global Asset Management, data as at 30 November 2017 Risk Disclosure General Investment Risk: The value of investments and any income from them can go down as well as up and you may not get back the amount originally invested. Concentration Risk: Funds with a narrow or concentrated investment strategy are more sensitive to changes in the market value of a single issuer. Emerging Market Risk: Emerging markets are subject to greater illiquidity and volatility than developed markets. Exchange Rate Risk: Changes in currency exchange rates will cause the value of investments to fluctuate. Liquidity Risk: Assets may be more difficult to convert to cash during adverse market conditions, in turn impacting asset valuation. Inception Date NAV per Share 24,652 26,619 Fund Size Bloomberg Ticker Benchmark Manager Cash / SRS (Supplementary Retirement Scheme) ,828,404,938 HSBCINI LX S&P / IFCI India Gross Sanjiv Duggal Nilang Mehta 1 Result is Annualised when calculation period is over one year. 2 Net of relevant prevailing sales charge

2 Monthly Performance Commentary Market Review The S&P/IFCI India Gross Index ended in positive territory over November in terms during what appeared to be a month of consolidation after the strong gains seen the previous month. Key events driving the market were: Moody s announced India s rating (local and foreign currency issuer ratings) moved a notch higher to Baa2 with a stable outlook from Baa3 earlier. Moody s cited that the progress on economic and institutional reforms are likely to improve country s growth potential and also the government finances going ahead. The GST council eased the compliance burden and also made some meaningful changes to the tax rates applicable for a large set of items. The second quarter (2QFY18) earnings season turned out to be stable but better than the delivery seen in the preceding few quarters. The GDP growth for the quarter ended September 2017, improved to 6.3% YoY compared to 5.7% YoY recorded in the previous quarter. However, the deficit for the month of October 2017 widened. Fund performance overview The fund delivered a positive return in November and outperformed the index mainly due to strong stock selection in banks and favourable sector allocation effects. Our holding in Indian Bank contributed strongly following the release of solid results which also highlighted improving asset quality. This continues the positive momentum for Indian Bank after the market also welcomed the Government s recapitalisation plan in October. Crompton & Greaves Consumer Electronics surged following a large drop in GST rates for electrical products from 28% to 18%. Maruti Suzuki moved higher on strong quarterly results, with the key positive being margin expansion due to lower discounts and cost reductions. On the downside, our holding in base metal miner Vedanta was subject to some profit taking after reaching a 7 year high in October. While sector allocations are primarily an outcome of bottom-up stock selection, the underweight to energy and telecoms, and overweight to consumer discretionary was a key positive. Offsetting this was the overweight to materials, which were impacted by softer commodity prices. Market Outlook Our portfolio strategy remains broadly unchanged and is backed by our thesis that finally, albeit gradually, the Indian economy is on a cyclical upturn path. The recovery process is gathering steam and will get a big boost from falling interest rates, the benefits of which are yet to percolate through the economy. The government s actions have been supportive and decisive, though not always implemented as expected and we have tried to build this into our base case analysis. We continue to remain overweight consumer discretionary names that will benefit from falling interest rates and improving urban incomes. In financials, we favour private banks with exposure to the infrastructure sector and select well-capitalised public sector banks. We are also exposed to housing finance companies which are likely beneficiaries of this year s budget focus on affordable housing. We are also overweight industrials which we expect to slowly benefit from the pick-up in investment cycle. We remain positive on the outlook for the Indian markets. From a GST roll-out point of view, our holdings in sectors such as consumer discretionary (overweight) are likely to directly benefit from elimination of cascading taxes, removal of supply chain inefficiencies, reduced logistic costs and import substitution. Indirect beneficiaries include our holdings in financials (overweight) and real estate where the longer term trend of formalization of the unorganized economy should benefit relevant companies.

3 Sector Allocation (%) Financials Consumer Discretionary Materials Information Technology Industrials Energy Consumer Staples Health Care Utilities Real Estate Telecommunication Services Cash & Others Benchmark Top 10 Holdings (%) Country Sector Weight (%) HDFC Bank Ltd Infosys Ltd ICICI Bank Ltd Maruti Suzuki India Ltd Axis Bank Ltd Housing Development Finance Corp ITC Ltd Grasim Industries Ltd Reliance Industries Ltd Tata Motors Ltd Source: HSBC Global Asset Management, data as at 30 November 2017 India Financials 6.21 India Information Technology 6.20 India Financials 5.46 India Consumer Discretionary 5.09 India Financials 4.56 India Financials 3.91 India Consumer Staples 3.78 India Materials 3.61 India Energy 3.48 India Consumer Discretionary 3.35 Index Disclaimer Source is the S&P IFCI India with official price levels calculated in Local Currency and

4 Important Information This document is prepared for general information purposes only and does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive it. Any views and opinions expressed are subject to change without notice. This document does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment. Investors and potential investors should not invest in the Fund solely based on the information provided in this document and should read the prospectus (including the risk warnings) and the product highlights sheets, which are available upon request at HSBC Global Asset Management (Singapore) Limited ( AMSG ) or our authorised distributors, before investing. Investors may wish to seek advice from a financial adviser before purchasing units in the fund. Investment involves risk. Past performance of any fund or the manager, and any economic and market trends or forecasts are not necessarily indicative of the future or likely performance of the fund or the manager. Unit values and income therefrom may fall as well as rise and the investor may not get back the original sum invested. Changes in rates of currency exchange may affect significantly the value of the investment. AMSG has based this document on information obtained from sources it reasonably believes to be reliable. However, AMSG does not warrant, guarantee or represent, expressly or by implication, the accuracy, validity or completeness of such information. HSBC Global Asset Management (Singapore) Limited 21 Collyer Quay #06-01 HSBC Building Singapore Telephone: (65) Facsimile: (65) Website: Company Registration No R

5 HSBC Global Investment Funds - Indian Equity Supplement Information Sheet 30 Nov 2017 Performance (%) 3Y 1 5Y 1 Since Return Currency YTD 1M 3M 6M 1Y Inception 1 AC EUR EUR AC EUR (Net) 2 EUR AC SGD SGD AC SGD (Net) 2 SGD AC AC (Net) EUR EUR EUR (Net) 2 EUR SGD SGD SGD (Net) 2 SGD (Net) IC IC (Net) Calendar Year Performance (%) Return Currency AC EUR EUR AC EUR (Net) 2 EUR AC SGD SGD AC SGD (Net) 2 SGD AC AC (Net) EUR EUR EUR (Net) 2 EUR SGD SGD SGD (Net) 2 SGD (Net) IC IC (Net) Result is Annualised when calculation period is over one year. 2 Net of relevant prevailing sales charge Past performance is not an indicator of future returns. The figures are calculated in the share class base currency, dividend reinvested. Share Class Base Currency Distribution Frequency Dividend ex-date Last Paid Dividend Annualised Yield Annually AC IC The above table cites the last dividend paid within the last 12 months only. Dividend is not guaranteed and may be paid out of capital, which will result in capital erosion and reduction in net asset value. A positive distribution yield does not imply a positive return. Past payout yields and payments do not represent future payout yields and payments. Historical payments may comprised of both distributed income and capital. The calculation method of annualized yield: (dividend value / bid price as of ex-dividend date) x n, n depends on the distributing frequency. Annually distribution is 1; quarterly distribution is 4; monthly distribution is 12. The annualized dividend yield is calculated based on the dividend distribution on the relevant date with dividend reinvested, and may be higher or lower than the actual annual dividend yield.

6 HSBC Global Investment Funds - Indian Equity Supplement Information Sheet 30 Nov 2017 Share Class Inception Date ISIN AC IC Base Currency Min. Initial Investment NAV per Share Annual Management Fee Distribution Type 29 Feb 1996 LU , % Distributing 30 May 2003 LU , % Accumulating 04 Jul 2003 LU ,000, % Accumulating Different classes may have different performances, dividend yields and expense ratios. For hedged classes, the effects of hedging will be reflected in the net asset values of such classes. Expenses arising from hedging transactions may be significant and will be borne by the relevant hedged classes. Hedged class performs the required hedging on a best efforts basis. Source: HSBC Global Asset Management, data as at 30 November 2017