HSBC Global Investment Funds Chinese Equity

Transcription

1 Important information: The Fund invests primarily in Chinese equities. The Fund is subject to the concentration and emerging market risks of investing in a single emerging market. The Fund may invest in China A-shares and B-shares and may make the relevant investment through Shanghai-Hong Kong Stock Connect, Shenzhen- Hong Kong Stock Connect and China A-shares Access Products which may involve additional risks. The Fund is subject to the credit risk of the issuers of the China A-shares Access Products held by the Fund. When the issuer of an investment defaults, the Fund may suffer a loss amounting to the value of such investment. The Fund may have up to 50% of its assets invested in China A-shares Access Products. There are risks and uncertainties associated with China s tax rules and practices. In relation to the Fund s investment in China A-shares and China A-shares Access Products, the Fund will not withhold (or will not request the issuer of the relevant investments to withhold) any amount of realised or unrealised capital gains on such investments as tax provision. The Fund may further modify its tax provision policy based on new developments and interpretation of the relevant regulations. 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, 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 Chinese Equity February 2018 Fund objective and strategy The Fund aims to provide long term capital growth by investing in a portfolio of Chinese 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 the People s Republic of China ( China ), including Hong Kong SAR. The Fund may invest up to 50% of its nets assets in China A-shares through the Shanghai-Hong Kong Stock Connect and up to 50% of its net assets in CAAPs. It s maximum exposure to China A-shares (through the Shanghai-Hong Kong Stock Connect or CAAP) and China B-shares is 70% of its net assets. The Fund will not invest more than 10% of its net assets in CAAPs issued by any single issuer of CAAPs. The Fund normally invests across a range of market capitalisations without any capitalisation restriction. 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 capital growth by investing in a portfolio of Chinese equities, which are domiciled in, based in, or carry out the larger part of their business activities in China, including Hong Kong The Fund aims to invest in companies that deliver strong, sustainable profits at attractive valuations The investment is driven by bottom up stock selection Price Indexed Performance (%) 1 YTD 3 mths 6 mths 1 yr 3 yrs 5 yrs Since Inception Fund (Class AD) ,346.9 Reference Performance Benchmark Jun 14 Jun 15 Jun 16 Jun 17 Jun 18Jan Fund (Class AD) 2 Reference Performance Benchmark 3 Source: Morningstar, Inc., as at 31 January Bid to Bid price with dividend reinvested, in US Dollar Percent Change Calendar year performance (%) 1 Fund (Class AD) 2 Reference Performance Benchmark Fund details Launch date Class AD Class ADHKD Fund size Base currency Bid price Class AD Class ADHKD Fund manager 25 June June 2011 USD1, million USD USD HKD Mandy Chan 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 Class AD Class ADHKD Bloomberg ticker Class AD Class ADHKD Financial Y/E Dividend policy Daily LU LU HSBCHEI LX HSCHEAD LX 31 March Annually, if any Portfolio characteristics Annualised volatility (3-year) 22.21% Sharpe ratio (3-year) 0.71 Download the offering documents from site/media/pdf/documents/amhk_hgif.pdf Please refer to the offering document for details of other fees. Source: HSBC Investment Funds (Hong Kong) Limited as at Morningstar, Inc. All Rights Reserved. Morningstar Rating TM as of 31 January January Fund change that may have material impact on performance: 20 Jun 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: MSCI China 10/40 Net since 1 Feb From 1 Jun Jan 2009, the benchmark was MSCI China Gross. Before that was CLSA China World Price. Prior to 31 Dec 1997 was Peregrine Greater China 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

2 Portfolio composition Sector allocation % Financials 32.0 Information technology 25.0 Consumer discretionary 11.3 Real estate 9.3 Energy 6.9 Consumer staples 5.8 Health care 5.2 Cash 0.6 Others 3.9 Asset allocation % Hong Kong P-Chips 72.7 Hong Kong H Shares 7.8 Hong Kong Red Chips 1.6 Shenzhen A Shares 1.3 Shanghai A Shares 0.5 Cash 0.6 Others 15.5 Percentage may not total 100 due to rounding. Top 10 holdings % Tencent Holdings Ltd Information technology 9.8 Alibaba Group Holding Ltd Information technology 8.7 China Construction Bank Financials 7.1 Industrial & Commercial Bk of China Financials 5.8 Ping An Insurance Co Ltd Financials 5.0 Bank of China Financials 4.1 China Overseas Land & Investment Real estate 2.9 Sino Biopharmaceutical Health care 2.5 Cnooc Ltd Energy 2.5 Hong Kong Exchanges & Clear Financials 2.4 Source: MSCI, the MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an as is basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the MSCI Parties ) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. ( 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 Chinese Equity July This statement provides you with key information about the HSBC Global Investment Funds Chinese 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 Class AC / AC 1.90%^ Class AD / AD 1.90%^ Class ADHKD / ADHKD 1.90%^ Dividend policy Class AC No dividends will be declared or paid / AC Class AD / ADHKD Declared annually on a discretionary basis, and if declared, will be paid annually / AD / ADHKD Financial year end 31 March / 331 Minimum investment Class AC / AD US$1,000 (initial and subsequent); ADHKD HK$10,000 (initial and subsequent) / AC / AD 1,000ADHKD 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 What are the investment objectives and strategy? Investment Objectives and Strategy The Fund aims to provide long term capital growth by investing in a portfolio of Chinese 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 the People's Republic of China ("China"), including Hong Kong SAR. 90% Investments in Chinese equities include, but are not limited to, China A-shares and China B-shares (and such other securities as may be available)

4 listed on stock exchanges in the People's Republic of China ( PRC ). The Fund may directly invest in China A-shares through the Shanghai-Hong Kong Stock Connect, subject to applicable quota limitations. Furthermore, the Fund may gain exposure to China A-shares indirectly through China A-shares Access Products ( CAAP ) such as, but not limited to, participation notes linked to China A-shares. AB AA AAA The Fund may invest up to 50% of its net assets in China A-shares through the Shanghai-Hong Kong Stock Connect and up to 50% of its net assets in CAAPs. The Fund's maximum exposure to China A-shares (through the Shanghai-Hong Kong Stock Connect or CAAP) and China B- shares is 70% of its net assets. The Fund will not invest more than 10% of its net assets in CAAPs issued by any single issuer of CAAPs. 50%A50%A AAB70% 10%AA The Fund normally invests across a range of market capitalisations without any capitalisation restriction. The Fund may invest up to 10% of its net assets in units or shares of UCITS and/or other Eligible UCIs (including other sub-funds of HSBC Global Investment Funds). 10%UCITSUCIs 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.

5 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. ( ) Emerging markets risk Investment in emerging market like China involves a greater risk of loss than exposure to 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. Concentration risk The Fund s investments are concentrated in China. 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 China market. High volatility of the equity market in China High market volatility and potential settlement difficulties in the China equity market may also result in significant fluctuations in the prices of the securities traded on such markets and thereby may adversely affect the value of the Fund. Regulatory policies of the equity market in China Securities exchanges in China typically have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. All these may have a negative impact on the Fund. Risks associated with Shanghai-Hong Kong Stock Connect The relevant rules and regulations on Shanghai-Hong Kong Stock Connect are subject to change which may have potential retrospective effect. The Shanghai-Hong Kong Stock Connect is subject to quota limitations. Where a suspension in the trading through the programme is effected, the Fund s ability to invest in China A-shares or access the PRC market through the programme will be adversely affected. In such event, the Fund s ability to achieve its investment objective could be negatively affected. A Risk of investing in CAAPsA Investment in CAAPs can be illiquid as there may not be an active market in the CAAPs. In order to liquidate investments, the Fund relies upon the counterparty issuing the CAAPs to quote a price to unwind any part of the CAAPs. AAA A The Fund will be subject to credit risk of the issuers of the CAAPs invested by the Fund. The Fund may suffer a loss if the issuers of the CAAPs invested by the Fund becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties. AA

6 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. 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. //

7 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 MSCI China 10/40 Net 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 /40 MSCI China 10/40 Net Fund launch date: 25/06/ /06/1992 Class AD launch date: 29/12/2000 AD29/12/2000 Class AD 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.

8 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 1.50% 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 (HK Time), 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