World Selection Portfolio

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1 World Selection Portfolio Access to the world s leading investment managers The World Selection Portfolio service leverages the expert capabilities and guidance of portfolio managers at HSBC, and from other leading money management firms. Multimanager, an experienced team of global analysts within HSBC Global Asset Management, is responsible for the selection and ongoing review of portfolio managers within the World Selection Portfolio service. The managers chosen have distinct investment approaches and specialize in different asset classes to help ensure they deliver performance and add value throughout the economic cycle. Multimanager process Selecting the best The Multimanager team aims to select leading money managers it believes have competitive advantages in their investment capabilities that will result in superior, risk-adjusted performance. To select the managers and determine how they can be combined optimally, the team considers management styles, risk and return drivers and then analyzes the managers risk profiles. Blending to reduce volatility extremes The blending of investment managers with different styles and attributes within one portfolio can reduce the extremes of volatility. It balances risk biases that exist in any one individual manager s process, while still capturing the performance potential that each manager offers. The Multimanager team is responsible for deciding the optimal blend of managers based on a combination of quantitative and qualitative factors and analyzing the interaction effect between the different managers. Monitoring to sustain competitive advantages The Multimanager team constantly monitors and reviews the portfolios to ensure that the best managers are being employed to deliver superior risk-adjusted returns. Multimanager selects external managers for the World Selection Portfolio service who have a sustainable competitive advantage in their respective asset class, and continuously monitors these managers to ensure that they continue to meet the rigorous Multimanager selection criteria.

2 HSBC MultiAlpha Canadian Bond Pooled Fund HSBC Global Asset Management (Canada) Limited HSBC Global Asset Management manages assets for individual and institutional clients around the world. As the core investment manager of the HSBC Group, it combines local knowledge with a global reach to deliver value to clients. HSBC Global Asset Management (Canada) Limited follows a highly disciplined and structured fixed income process. Leveraging the global capabilities of HSBC Global Asset Management, the Canadian Fixed Income team undertakes an economic analysis of the global economy and capital markets. The team then combines these global views with analysis of local factors to target portfolio duration, yield curve exposure and sector and security positioning. HSBC MultiAlpha Canadian Small Cap Equity Pooled Fund Mawer Investment Management Ltd. Mawer Investment Management Ltd. has been managing small cap Canadian equity portfolios since Founded in 1974, Mawer is an independent investment counselling firm based in Calgary. Mawer s Canadian small cap equity management focuses on Canadian companies with less than $500 million capitalization at the time of purchase. Mawer s investment approach is to systematically create broadly diversified portfolios of wealth creating companies bought at discounts to their intrinsic values. 2 Multimanager

3 HSBC MultiAlpha Canadian Equity Pooled Fund Picton Mahoney Asset Management Picton Mahoney Asset Management is a Toronto based, independently operated and 100% employee owned investment management firm specialized in managing Canadian and Global equities. Picton Mahoney uses both quantitative and fundamental analysis in their process. The quantitative model focuses on identifying positive fundamental change, specifically looking for revenue and earnings acceleration, earnings estimate revisions, positive earnings surprises and relative price strength. The fundamental analysis is a secondary step designed to confirm the positive change signal identified from the quantitative model. Fundamental analysis also examines valuation, downside risk, earnings quality, growth rates and the competitive landscape as part of this confirmation process. Scheer Rowlett & Associates Investment Management Ltd. Scheer Rowlett & Associates is a Toronto based investment management firm specializing in Canadian equity portfolios. The firm was founded by Crown Life Insurance Company in 1992, and changed its name to Scheer Rowlett & Associates in Scheer Rowlett employs a bottom-up, value oriented investment process. This value investment philosophy is founded on the belief that efficiencies in the equity market are realized over mid- to long-term periods. The firm believes that a company s earning ability, driven by its fundamentals, provides transparency to the company s worth. Based on this philosophy, Scheer Rowlett seeks to invest in undervalued companies with strong or improving fundamentals, healthy financial positions and proven management. The firm strives to deliver superior, risk-adjusted returns over the long term, in both up and down markets. Multimanager 3

4 HSBC MultiAlpha U.S. Small/Mid Cap Equity Pooled Fund Loomis, Sayles & Company Since 1926, Loomis, Sayles & Company has served the investment needs of institutional and mutual fund clients. As performance driven investors seeking exceptional opportunities, Loomis Sayles employs actively managed disciplines that combine fundamental research, systematic risk assessment and experienced portfolio management. The philosophy is core value with an attention to downside risk. The manager looks for attractively valued companies with prospects for above average growth. This rich tradition has earned Loomis Sayles the trust and respect of clients worldwide. Westfield Capital Management Company LP Boston based Westfield Capital Management is an investment advisory firm specializing in the management of small and mid cap US equity growth portfolios. The company was founded in 1989 and is a wholly owned subsidiary of Boston Private Financial Holdings, a US-based wealth management firm. Westfield Capital Management favours US small and mid cap stocks with consistent or accelerating earnings growth. This approach is based on the managers conviction that stock prices follow earnings progress and that these stocks offer the best opportunity for superior real rates of return. 4 Multimanager

5 HSBC MultiAlpha U.S. Equity Pooled Fund Artisan Partners Artisan Partners is an independent investment management firm with offices located in Milwaukee, San Francisco, Atlanta, New York and London. Since its founding in 1994, the firm has been committed to attracting experienced, disciplined investment professionals to manage client assets. Artisan Partners has five autonomous investment teams that oversee twelve distinct U.S., non-u.s. and global investment strategies. As of March 31, 2012 Artisan Partners had approximately $66.5 billion in assets under management. Herndon Capital Management, LLC Herndon Capital Management, LLC is an institutional investment management firm specializing in large and mid capitalization equity strategies. Founded in 2001, the firm is an affiliate of Atlanta Life Financial Group, a 106 year old financial services firm. The firm began managing assets in June Herndon Capital Management s US Large Cap Value strategy is designed to give clients exposure to stocks considered to be Value Creating Opportunities. These are undervalued stocks of companies that trade at a discount and have characteristics to outperform the market. Los Angeles Capital Management and Equity Research, Inc. LA Capital is an independent equity boutique investment company providing global investment solutions to institutional clients in the US and abroad. The firm is entirely owned by working principals and ownership is spread out among a large number of professionals. LA Capital s investment philosophy is based on the notion that investor preferences drive investment results. Their quantitative approach identifies how investors attitudes regarding individual fundamental exposures adapt to changing economic and market conditions. The firm emphasizes the need to be adaptive, and stresses the need to carefully manage and allocate the risk in the portfolio across the relevant factor exposures. Multimanager 5

6 HSBC MultiAlpha U.S. Equity Pooled Fund (continued) WestEnd Advisors WestEnd Advisors is a private, independently owned investment advisory firm based in Charlotte, North Carolina. Their flagship strategy is the U.S. domestic Large Cap Core Equity portfolio, which has a proven record of performance and risk management since its 1996 inception. The cornerstone of WestEnd s investment philosophy is that sector and industry performance is highly correlated with particular stages of the business cycle. WestEnd targets high quality, market leading companies within favoured sectors. The result is a core investment style that shifts portfolio sector and style emphasis to remain properly oriented and timely over a full economic and market cycle. Winslow Capital Management Inc. Winslow Capital Management is a 100% employee owned boutique investment firm with a sole focus on managing US large cap growth equities. The company is based in Minneapolis, Minnesota. Winslow Capital uses a fundamental, bottom-up approach to its research process. The team seeks to build a portfolio of stocks with a weighted average earnings growth rate of 15-20% (based on internal forward earnings estimates) and that are trading at a reasonable valuation. Research coverage is divided by sector, and the stock selection process leverages the investment professionals significant experience and contacts in their respective sectors of coverage. 6 Multimanager

7 HSBC MultiAlpha International Equity Pooled Fund MFS Investment Management MFS Investment Management is a leading global asset manager with more than 88 years of experience in actively managing assets for individual and institutional investors in 75 countries. The foundation of their investment capabilities is an integrated global investment platform which comprises three key attributes: fundamental equity research, quantitative solutions, and credit expertise. MFS draws on these competencies to generate ideas, and focus on providing consistent returns within the desired risk and return frameworks of their clients across a wide spectrum of equity, fixed income, and multi-asset strategies. Martin Currie Inc. Based in Edinburgh, Scotland, Martin Currie Inc. is a privately owned, specialist active equity manager that manages assets for clients worldwide. The firm believes that its independent employee ownership structure is the foundation on which it will develop as a specialist investment management business. Martin Currie actively seeks opportunities for growth across global stock markets and believes change is the central dynamic behind stock price movement. The investment process consistently challenges market consensus and emphasizes four factors: quality, value, growth and change and its bottom-up process drives portfolio construction. Issued by HSBC Global Asset Management (Canada) Limited HSBC World Selection Portfolio is a portfolio investment service offered by HSBC Investment Funds (Canada) Inc. ( HIFC ). In this service, a client s assets are invested in model portfolios. Each model portfolio is comprised of investments in HSBC Pooled Funds, which are mutual funds managed by HSBC Global Asset Management (Canada) Limited ( AMCA ) and distributed by HIFC. AMCA provides discretionary investment management services to the portfolios in the HSBC World Selection Portfolio service. Commissions, trailing commissions, management fees, investment management fees and expenses all may be associated with investments in the HSBC Pooled Funds and/or the HSBC World Selection Portfolio service. Please read the applicable account opening documentation and prospectus before applying for the HSBC World Selection Portfolio service. The HSBC World Selection Portfolio service and the HSBC Pooled Funds are not guaranteed or covered by the Canada Deposit Insurance Corporation, HSBC Bank Canada, or any other deposit insurer. The value of mutual funds may change frequently and past performance may not be repeated. The unit value of money market funds may not remain constant. HIFC is a direct subsidiary of AMCA and an indirect subsidiary of HSBC Bank Canada, and provides its services in the Northwest Territories and in all provinces of Canada except Prince Edward Island. AMCA is a wholly owned subsidiary of, but separate entity from, HSBC Bank Canada and provides its services in the Northwest Territories and in all provinces of Canada except Prince Edward Island. World Selection is a registered trade-mark of HSBC Bank Canada. CA#M (11/12) F.P.O. Multimanager 7