HSBC Global Investment Funds Indian Equity

Transcription

1 Important information: The Fund invests primarily in Indian equities. The Fund is subject to the concentration and emerging market risks of investing in a single emerging market. The Fund may invest in financial derivative instruments for investment purpose and may suffer substantial loss if the relevant issuers default or the relevant instruments cannot be realised or perform badly. The Fund s investments may involve substantial market, currency, volatility, regulatory and political risks. Investors may suffer substantial loss of their investments in the Fund. Unit trusts are NOT equivalent to time deposits. Investors should not invest in the Fund solely based on the information provided in this document and should read the offering document of the Fund for details. This document does not constitute an offering document. HSBC Global Investment Funds Indian Equity November 2017 Fund objective and strategy The Fund aims to provide long-term total return by investing in a portfolio of Indian equities. The Fund invests, in normal market conditions, a minimum of 90% of its net assets in equities and equity equivalent securities of companies which are domiciled in, based in, or carry out the larger part of their business activities in, India. The Fund may use financial derivative instruments for hedging and cash flow management (for example, Equitisation). Product features The Fund aims to provide long-term total return by investing in a portfolio of Indian equities The Fund s investment is a blend of growth and value styles with an emphasis on business cycle and valuation checks Price Indexed Performance (%) 1 YTD 3 mths 6 mths 1 yr 3 yrs 5 yrs Since Inception Fund () ,889.8 Reference Performance Benchmark Jun 14 Jun 15 Jun 16 Jun 17 Jun Oct Fund () 2 Reference Performance Benchmark 3 Source: Morningstar, Inc. as at 31 October Bid to Bid price with dividend reinvested, in US Dollar. Portfolio composition Sector allocation % Financials 33.3 Consumer discretionary 17.1 Materials 13.8 Information technology 8.9 Industrials 7.5 Energy 6.6 Consumer staples 5.2 Health care 3.5 Utilities 3.2 Others 1.1 Percentage may not total 100 due to rounding Percent Change Calendar year performance (%) 1 Fund () 2 Reference Performance Benchmark Fund details Launch date Fund size Base currency Bid price Fund manager 1 March June 2011 USD1, million USD USD HKD Nilang Mehta / Sanjiv Duggal Investment adviser HSBC Global Asset Management (Hong Kong) Limited Minimum investment USD1,000 / HKD10,000 Initial charge 5.25% Management fee 1.5% per annum Switching charge 1% Dealing ISIN code Bloomberg ticker Financial Y/E Dividend policy Daily LU LU HSBCINI LX HSINEAD LX 31 March Annually, if any Portfolio characteristics Annualised volatility (3-year) 19.17% Sharpe ratio (3-year) Fund change that may have material impact on performance: 20 May 2016 investment objective changed. 2. The performance of a Class may be affected by many factors such as, where applicable, exchange rate fluctuation, currency hedging costs and interest rate differentiation between different currencies. Therefore, different Classes may have different performance, and the performance of a Class cannot be used to represent the performance of another Class. 3. Reference Performance Benchmark: S&P / IFCI India Gross since 1 Oct Prior to that, was S&P BSE (100) NATIONAL PRICE. Investment involves risk. Past performance is not indicative of future performance. Please refer to the offering document for further details including the risk factors. The document has not been reviewed by the Securities and Futures Commission. Issued by HSBC Global Asset Management (Hong Kong) Limited Please refer to the offering document for details of other fees. Source: HSBC Investment Funds (Hong Kong) Limited as at 31 October 2017.

2 Top 10 holdings % Hdfc Bank Limited Financials 6.0 Infosys Ltd Information technology 5.8 Icici Bank Ltd Financials 5.3 Maruti Suzuki India Ltd Consumer discretionary 5.0 Axis Bank Limited Financials 4.4 Housing Development Finance Financials 4.0 Grasim Industries Ltd Materials 3.8 Itc Ltd Consumer staples 3.8 Vedanta Ltd Materials 3.8 Tata Motors Ltd Consumer discretionary 3.5 The S&P/IFCI India Gross is a product of S&P Dow Jones Indices LLC ( SPDJI ), and has been licensed for use by HSBC Global Asset Management. Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by HSBC Global Asset Management. HSBC Global Asset Management s fund(s) is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P/IFCI India Gross. Investment involves risk. Past performance is not indicative of future performance. Please refer to the offering document for further details including the risk factors. The document has not been reviewed by the Securities and Futures Commission. Issued by HSBC Global Asset Management (Hong Kong) Limited

3 PRODUCT KEY FACTS HSBC Global Investment Funds Indian Equity July 2017 This statement provides you with key information about the HSBC Global Investment Funds Indian Equity This statement is part of the offering document You should not invest in this product based on this statement alone Quick facts Fund manager HSBC Investment Funds (Luxembourg) S.A. Investment adviser HSBC Global Asset Management (Hong Kong) Limited (Internal delegation) / Custodian HSBC Bank Plc, Luxembourg Branch Dealing frequency Daily on every dealing day / Base currency (reference currency) USD / Ongoing charges over a year / AD 1.90%^ / ADHKD 1.88%^ Class ACCHF / ACCHF 1.89%^ Class ACEUR / ACEUR 1.89%^ Dividend policy Class ACCHF / ACEUR No dividends will be declared or paid / ACCHF / ACEUR / ADHKD Declared annually on a discretionary basis, and if declared, will be paid annually / AD / ADHKD Financial year end 31 March / 331 Minimum investment US$1,000 (initial and subsequent) ; Class ACCHF CHF1,000 (initial and subsequent) ; Class ACEUR EUR850 (initial and subsequent) ; HK$10,000 (initial and subsequent) / AD 1,000ACCHF 1,000 ACEUR 850ADHKD 10,000 ^ The figure is based on ongoing expenses chargeable to the class expressed as a percentage of the class s average net asset value for the year ended 31 March This figure may vary from year to year What is this product? This is a sub-fund (the Fund ) of an umbrella fund constituted in the form of a mutual fund. It is domiciled in Luxembourg and its home regulator is Commission de Surveillance du Secteur Financier. Commission de Surveillance du Secteur Financier

4 What are the investment objectives and strategy? Investment Objectives and Strategy The Fund aims to provide long-term total return by investing in a portfolio of Indian equities. The Fund invests, in normal market conditions, a minimum of 90% of its net assets in equities and equity equivalent securities of companies which are domiciled in, based in, or carry out the larger part of their business activities in, India. 90% The Fund normally invests across a range of market capitalisations. The Fund will not invest more than 30% of its net assets in a combination of participation notes and convertible securities. 30% The Fund may use financial derivative instruments for hedging and cash flow management (for example, Equitisation). However, the Fund will not use financial derivative instruments extensively for investment purposes. The financial derivative instruments the Fund is permitted to use include, but are not limited to, futures and foreign exchange forwards (including non-deliverable forwards). Financial derivative instruments may also be embedded in other instruments in which the Fund may invest. What are the Key Risks? Investments involve risks. Please refer to the offering document for details including the risk factors. Investment risk The Fund is an investment fund. There is no guarantee of the repayment of principal. The Fund s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. Equity risk The Fund s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors. ( ) Concentration risk The Fund s investments are concentrated in India. The value of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the India market. Convertible securities risk Convertible securities are a hybrid between debt and equity. Convertible securities are fixed income securities, preferred stocks or other securities that may be converted or exchanged (by the holder or by the issuer) into shares of the underlying common stock (or cash or securities of equivalent value) at a stated price or rate. As such, convertible securities will be exposed to equity movement and greater volatility than straight bond investments. Investments in convertible securities are subject to the same interest rate risk, credit risk, liquidity risk and prepayment risk associated with comparable straight debt investments. Emerging market risk India is an emerging market. Investing in emerging markets involves a greater risk of loss than investing in more developed markets due to, among other factors, greater political, tax, economic, foreign exchange, liquidity, settlement, custodial, market volatility (such as interest rate and price volatility), legal and regulatory risks. Risk associated with small-capitalisation / mid-capitalisation companies The shares of small-capitalisation/ mid-capitalisation companies may have lower liquidity and their prices are generally more volatile, especially during adverse economic developments, than those of larger capitalisation companies in general.

5 Derivative instrument risk Risks associated with financial derivative instruments include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-thecounter transaction risk. The leverage element/component of a financial derivative instrument can result in a loss significantly greater than the amount invested in the financial derivative instrument by the Fund. Exposure to financial derivatives instruments may lead to a high risk of significant loss by the Fund. //

6 How has the Fund performed? Past performance information is not indicative of future performance. Investors may not get back the full amount invested. The computation basis of the performance is based on the calendar year end, NAV-to-NAV, with dividend reinvested. These figures show by how much the share class increased or decreased in value during the calendar year being shown. Performance data has been calculated in USD including ongoing charges and excluding subscription fee and redemption fee you might have to pay. The Fund has formally adopted S&P / IFCI India Gross as the reference performance benchmark of the Fund with effect from The reference performance benchmark is shown for comparison purposes only and the Fund may not be managed to the reference performance benchmark S&P / IFCI S&P / IFCI India Gross Fund launch date: 04/03/ /03/1996 launch date: 29/12/2000 AD29/12/2000 is a share class open for investment by Hong Kong retail investors and denominated in the Fund s reference currency. AD Is there any guarantee? The Fund does not have any guarantees. You may not get back the full amount of money you invest.

7 What are the fees and charges? Charges which may be payable by you You may have to pay the following fees when dealing in the Fund. Fees What you pay Subscription fee Up to 5.25% of the offer price* 5.25%* Switching fee Up to 1% of the offer price* 1%* Redemption fee Nil* * Ongoing fees payable by the Fund The following expenses will be paid out of the Fund. They affect you because they reduce the return you get on your investments. Fees Management fee 1.5% Custodian fee Administrative fee 0.40% # Performance fee Annual rate (as a % of the Net Asset Value of the Fund) % Not applicable, included in Administrative fee Not applicable Other fees You may have to pay other fees and charges when dealing in the Fund. * You may need to bear additional costs under certain situations in order to mitigate any adverse impacts to the Fund caused by the transactions. Please refer to the offering document for further details. # The fees and charges may be increased up to maximum level as specified in the offering document by giving at least one month s prior notice to investor. 1 Additional information You generally buy and redeem shares at the Fund s next- determined subscription price and redemption price with reference to the Net Asset Value (NAV) after the intermediaries receive your request in good order on or before 4:00pm (HKTime), being the Fund s dealing cut-off time. 4 Intermediaries who sell the Fund may impose earlier cut-off times for receiving instructions for subscriptions, redemptions or switching. Investors should pay attention to the arrangements of the intermediary concerned. Investors may obtain the past performance information of other share classes offered to Hong Kong investors at (the website has not been reviewed by the SFC). Investors may obtain information on the intermediaries online at (the website has not been reviewed by the SFC). The net asset value of the Fund is calculated and the price of the Fund is published on each dealing day. The Fund prices are available online at Important If you are in doubt, you should seek professional advice. The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness. Issued by HSBC Global Asset Management (Hong Kong) Limited