HSBC Prime Money Market Fund

Transcription

1 HSBC Global Asset Management HSBC Prime Money Market Fund June 30, 2016 Objective The investment objective of the Fund is to provide shareholders of the Fund with liquidity and as high a level of current income as is consistent with the preservation of capital. Investment concerns An investment in the Fund is neither insured nor guaranteed by the FDIC or any other government agency. Although the Fund strives to maintain the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Fund management HSBC Global Asset Management (USA) Inc. ( HSBC or the adviser ) manages the Fund s investments. The adviser s investment philosophy is based on their tradition of identifying clients investment objectives and performing extensive market research to identify the appropriate securities to meet those objectives. HSBC has full-time professionals, who have access to in-depth research and the ability to follow market trends and identify attractive opportunities, advising the Fund according to the Fund s investment objectives and policies. Aggregate Average annual Total returns 3 Months YTD 1 Year 3 Years 5 Years 10 Years Inception HSBC Prime Money Market Fund Average yield Highlights Annualized 7-day average Annualized 30-day average HSBC Prime Money Market Fund Class A 0.01% 0.01% Class D 0.14% 0.13% Average days to maturity Class A and D 27 Days Rated NAIC* Class 1 Approved List The 7-Day and 30-Day yields are as of 6/30/16. The 7-Day yield quotation more closely reflects the current earnings of the Fund than the total return quotation. Class A 0.01% 0.01% 0.04% 0.03% 0.02% 0.94% 1.77% Class D 0.03% 0.04% 0.07% 0.04% 0.03% 0.99% 1.79% Calendar year total returns HSBC Prime Money Market Fund Class A 4.45% 4.69% 2.22% 0.09% 0.01% 0.01% 0.01% 0.01% 0.02% 0.04% Class D 4.61% 4.85% 2.37% 0.14% 0.01% 0.01% 0.01% 0.01% 0.02% 0.04% Lipper Money Market Funds Average % 4.49% 2.04% 0.17% 0.03% 0.02% 0.02% 0.01% 0.01% 0.01% Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call , or visit our website at The performance above reflects any fee waivers that have been in effect during the applicable periods as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2016 through March 1, For important disclosures and information regarding average and index definitions, please see reverse side. Fund details Fund ratings 1 Moody s: Aaa-mf Standard & Poor s: AAAm Inception date Class A: November 13, 1998 Class D: April 1, 1999 Total net assets of all Fund classes $6,999,265,606 Ticker symbol and CUSIP numbers Class A: REAXX Class C: HMMXX Class D: HIMXX Investment cut off time Daily by 5:00 pm (EST) Final Valuation time Daily at 5:00 pm (EST) Financial year-end 31 October Minimum initial investment Class A: US$1,000 Class D: US$1,000 Gross Expense ratio Class A: 0.69% Class D: 0.54% Maximum Deferred Sales Charge Class C: 1.00% Benchmark Lipper Money Market Funds Average Investment adviser HSBC Global Asset Management (USA) Inc. HSBC Funds A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES FDIC BY ANY FEDERAL GOVERNMENT AGENCY GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES MAY LOSE

2 HSBC Prime Money Market Fund Instrument mix (subject to change) Certificate of deposit 48.5 Commercial paper 33.2 Time deposit 14.1 Treasury Debt 1.9 Other instruments (Yankee CD) 1.5 Other instrument (Corporate bond) 0.8 Credit quality mix 4 (subject to change) P-1/A P-1/A Maturity mix (subject to change) Overnight days - 7 days days - 30 days days- 60 days 17.9 Over 60 days 12.7 Top ten holdings (subject to change) Nordea Bank AB, 0.28%, 7/1/ Australia & New Zealand Bank, 0.30%, 7/1/ DBS Bank Ltd. 0.43%, 7/06/ China Construction Bank Corp., 0.49%, 7/6/ Industrial & Commercial Bank of China Ltd., 0.48%, 7/6/ Societe Generale N.A., 7/6/ Credit Agricole CIB NY, 0.31%, 7/1/ Citibank N.A., 0.63%, 9/1/ U.S Treasury Note, 3.25%, 7/31/ Mizuho Corporate Bank NY, 0.61%, 8/17/ * The National Association of Insurance Commissioners Securities Valuation Office (NAIC SVO) has placed the HSBC Prime Money Market Fund on the NAIC s Class 1 Approved List. This means the NAIC SVO verified that Fund meets the criteria specified by the NAIC to permit an insurer to report shares of the Fund as bond-like for certain state insurance regulatory purposes. Certain returns shown include monies received by the Fund in respect of one-time class action settlements and a one-time reimbursement from the Adviser related to past marketing arrangements. As a result, the Fund s total returns for those periods were higher than they would have been had the Fund not received the payments. Reflects the expense ratio as reported in the prospectus dated February 28, Moody s has assigned an Aaa-mf rating, and Standard and Poor s has assigned an AAAm rating to the HSBC Prime Money Market Fund. The Aaa-mf and AAAm money market fund ratings are historical and reflect the superior quality of the Fund s investments, sound liquidity management, and strong operations and trading support. The ratings are derived from the underlying securities of the portfolio. The ratings are historical and are based upon the credit quality, market exposure, and management of the underlying securities. Periodic reviews are conducted to ensure a secure operations environment. The Moody s and Standard & Poor s ratings represent an opinion only, not a recommendation to buy or sell. 2 Lipper mutual funds averages are equally weighted averages of the mutual funds within their respective Lipper classifications, adjusted for the reinvestment of capital gains distributions and income dividends. 3 HSBC Prime Money Market Fund primarily purchases first tier municipal securities as rated by one or more of the Nationally Recognized Security Ratings Organizations or securities that have been deemed by our credit research department to have credit characteristics equivalent to first tier securities. 4 Obligations rated A-1+, A-1 or P-1 are rated in the highest short-term rating category by Standard & Poor s (A-1+ or A-1) or Moody s Investor Service (P-1). The obligor s capacity to meet its financial commitments on these obligations is regarded to be extremely strong (A-1+), strong (A-1) or superior (P-1). HSBC Global Asset Management (USA) Inc. serves as investment adviser. Foreside Distribution Services, L.P., member FINRA, is the distributor of the HSBC Funds and is not affiliated with the Advisor. HSBC Securities (USA) Inc., member NYSE, FINRA, and SIPC is a sub-distributor of the HSBC Funds. Affiliates of HSBC Global Asset Management (USA) Inc. receive fees for providing various services to the funds. Investment products are offered by HSBC Securities (USA) Inc. (HSI), member NYSE/FINRA/SIPC. HSI is an affiliate of HSBC Bank USA, N.A. Are not a deposit or other obligation of the bank or any of its affiliates; Not FDIC insured or insured by any federal government agency of the United States; Not guaranteed by the bank or any of its affiliates; and are subject to investment risk, including possible loss of principal invested. This material must be preceded or accompanied by a current prospectus. An investor should consider the Fund s investment objectives, risks, and charges and expenses carefully before investing or sending any money. This and other important information about the investment company can be found in the Fund s prospectus. To obtain more information, call , or visit our website at Please read the prospectus carefully before investing. US persons (both entities and individuals) are subject to US taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their US and non-us accounts. The Foreign Account Tax Compliance Act (FATCA) is a US law designed to prevent the use of non-us accounts or non-us entities to avoid US taxation of income and assets. To meet this objective, FATCA imposes on US and non-us entities certain documentation, due diligence, withholding and reporting requirements with respect to accounts and certain payments. Investors should consult their independent tax advisors about investment tax implications. A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES FDIC BY ANY FEDERAL GOVERNMENT AGENCY GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES MAY LOSE All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. Copyright HSBC Global Asset Management (USA) Inc. All rights reserved. HSBMM (07/16) CA#

3 HSBC Global Asset Management HSBC U.S. Government Money Market Fund June 30, 2016 Objective The investment objective of the Fund is to provide shareholders of the Fund with liquidity and as high a level of current income as is consistent with the preservation of capital. Investment concerns An investment in the Fund is neither insured nor guaranteed by the FDIC or any other government agency. Although the Fund strives to maintain the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Fund management HSBC Global Asset Management (USA) Inc. ( HSBC or the adviser ) manages the Fund s investments. The adviser s investment philosophy is based on their tradition of identifying clients investment objectives and performing extensive market research to identify the appropriate securities to meet those objectives. HSBC has full-time professionals, who have access to in-depth research and the ability to follow market trends and identify attractive opportunities, advising the Fund according to the Fund s investment objectives and policies. Aggregate Average annual Total returns 3 Months YTD 1 Year 3 Years 5 Years 10 Years Inception HSBC U.S. Government Money Market Fund Average yield Highlights Annualized 7-day average Annualized 30-day average HSBC U.S. Government Money Market Fund Class A 0.01% 0.01% Class D 0.01% 0.01% Average days to maturity Class D 17 Days Rated NAIC* Class 1 Approved List The 7-Day and 30-Day yields are as of 6/30/16. The 7-Day yield quotation more closely reflects the current earnings of the Fund than the total return quotation. Class A 0.00% 0.01% 0.02% 0.02% 0.02% 0.85% 2.64% Class D 0.00% 0.01% 0.02% 0.02% 0.02% 0.89% 1.67% Calendar year total returns HSBC U.S. Government Money Market Fund Class A 4.38% 4.50% 1.64% 0.04% 0.02% 0.01% 0.01% 0.01% 0.02% 0.03% Class D 4.53% 4.66% 1.79% 0.06% 0.02% 0.01% 0.01% 0.01% 0.02% 0.03% Lipper U.S. Government Money Market Funds 4.26% 4.41% 1.71% 0.09% 0.02% 0.01% 0.01% 0.01% 0.01% 0.01% Average 2 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call , or visit our website at The performance above reflects any fee waivers that have been in effect during the applicable periods as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2016 through March 1, For important disclosures and information regarding average and index definitions, please see reverse side. Fund details Fund ratings 1 Moody s: Aaa-mf Standard & Poor s: AAAm Inception date Class A: May 3, 1990 Class D: April 1, 1999 Total net assets of all Fund classes $4,852,310,748 Ticker symbol and CUSIP numbers Class A: FTRXX Class B: HUBXX Class C: HUMXX Class D: HGDXX Investment cut off time Daily by 4:00 pm (EST) Final Valuation time Daily at 4:00 pm (EST) Financial year-end 31 October Minimum initial investment Class A: US$1,000 Class D: US$1,000 Gross Expense ratio Class A: 0.68% Class D: 0.53% Maximum Deferred Sales Charge Class B: 4.00% Class C: 1.00% Benchmark Lipper U.S. Government Money Market Funds Average Investment adviser HSBC Global Asset Management (USA) Inc. HSBC Funds A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES FDIC BY ANY FEDERAL GOVERNMENT AGENCY GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES MAY LOSE

4 HSBC U.S. Government Money Market Fund Instrument mix (subject to change) Government agency debt 48.9 Treasury repurchase agreement 33.2 Government agency repurchase agreements 8.3 Other Instrument (Cash) 6.5 Treasury debt 3.1 Maturity mix (subject to change) Overnight days - 7 days days - 30 days days- 60 days 1.2 Over 60 days 10.9 Credit quality mix 3 (subject to change) P-1/A N/A - Cash 6.5 Top ten holdings (subject to change) Federal Reserve Bank NY, 0.25%, 7/1/ BNP Paribas Securities Corp., 0.40%, 7/1/ SOC, 0.40%, 7/1/ FHLB VRN, 7/8/ FHLMC VRN, 1/13/ FHLB VRN, 11/18/ RBS Securities, Inc., 0.38%, 7/1/ Toronto Dominion Bank NY, 0.38%, 7/1/ MER, 0.42%, 7/1/ FHLB, 0.52%, 9/16/ * The National Association of Insurance Commissioners Securities Valuation Office (NAIC SVO) has placed the HSBC U.S. Government Money Market Fund on the NAIC s Class 1 Approved List. This means the NAIC SVO verified that Fund meets the criteria specified by the NAIC to permit an insurer to report shares of the Fund as bond-like for certain state insurance regulatory purposes. Certain returns shown include monies received by the Fund in respect of one-time class action settlements and a one-time reimbursement from the Adviser related to past marketing arrangements. As a result, the Fund s total returns for those periods were higher than they would have been had the Fund not received the payments. Reflects the expense ratio as reported in the prospectus dated February 28, Moody s has assigned an Aaa-mf rating, and Standard and Poor s has assigned an AAAm rating to the HSBC U.S. Government Money Market Fund. The Aaa-mf and AAAm money market fund ratings are historical and reflect the superior quality of the Fund s investments, sound liquidity management, and strong operations and trading support. The ratings are derived from the underlying securities of the portfolio. The ratings are historical and are based upon the credit quality, market exposure, and management of the underlying securities. Periodic reviews are conducted to ensure a secure operations environment. The Moody s and Standard & Poor s ratings represent an opinion only, not a recommendation to buy or sell. 2 Lipper mutual funds averages are equally weighted averages of the mutual funds within their respective Lipper classifications, adjusted for the reinvestment of capital gains distributions and income dividends. 3 Obligations rated A-1+, A-1 or P-1 are rated in the highest short-term rating category by Standard & Poor s (A-1+ or A-1) or Moody s Investor Service (P-1). The obligor s capacity to meet its financial commitments on these obligations is regarded to be extremely strong (A-1+), strong (A-1) or superior (P-1). HSBC Global Asset Management (USA) Inc. serves as investment adviser. Foreside Distribution Services, L.P., member FINRA, is the distributor of the HSBC Funds and is not affiliated with the Advisor. HSBC Securities (USA) Inc., member NYSE, FINRA, and SIPC is a sub-distributor of the HSBC Funds. Affiliates of HSBC Global Asset Management (USA) Inc. receive fees for providing various services to the funds. Investment products are offered by HSBC Securities (USA) Inc. (HSI), member NYSE/FINRA/SIPC. HSI is an affiliate of HSBC Bank USA, N.A. Are not a deposit or other obligation of the bank or any of its affiliates; Not FDIC insured or insured by any federal government agency of the United States; Not guaranteed by the bank or any of its affiliates; and are subject to investment risk, including possible loss of principal invested. This material must be preceded or accompanied by a current prospectus. An investor should consider the Fund s investment objectives, risks, and charges and expenses carefully before investing or sending any money. This and other important information about the investment company can be found in the Fund s prospectus. To obtain more information, call , or visit our website at Please read the prospectus carefully before investing. US persons (both entities and individuals) are subject to US taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their US and non-us accounts. The Foreign Account Tax Compliance Act (FATCA) is a US law designed to prevent the use of non-us accounts or non-us entities to avoid US taxation of income and assets. To meet this objective, FATCA imposes on US and non-us entities certain documentation, due diligence, withholding and reporting requirements with respect to accounts and certain payments. Investors should consult their independent tax advisors about investment tax implications. A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES FDIC BY ANY FEDERAL GOVERNMENT AGENCY GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES MAY LOSE All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. Copyright HSBC Global Asset Management (USA) Inc. All rights reserved. HSBUSGMM (07/16) CA#

5 HSBC Global Asset Management HSBC U.S. Treasury Money Market Fund Share Class D June 30, 2016 Objective The investment objective of the Fund is to provide as high a level of current income as is consistent with the preservation of capital and liquidity. Investment concerns An investment in the Fund is neither insured nor guaranteed by the FDIC or any other government agency. Although the Fund strives to maintain the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Fund management HSBC Global Asset Management (USA) Inc. ( HSBC or the adviser ) manages the Fund s investments. The adviser s investment philosophy is based on their tradition of identifying clients investment objectives and performing extensive market research to identify the appropriate securities to meet those objectives. HSBC has full-time professionals, who have access to in-depth research and the ability to follow market trends and identify attractive opportunities, advising the Fund according to the Fund s investment objectives and policies. Aggregate Average annual Total returns 3 Months YTD 1 Year 3 Years 5 Years 10 Years Inception HSBC U.S. Treasury Money Market Fund Average yield Highlights Annualized 7-day average Annualized 30-day average HSBC U.S. Treasury Money Market Fund Class D 0.00% 0.00% Average days to maturity Class D 14 Days Rated NAIC* Class 1 Approved List The 7-Day and 30-Day yields are as of 6/30/16. The 7-Day yield quotation more closely reflects the current earnings of the Fund than the total return quotation. Class D 0.00% 0.00% 0.00% 0.00% 0.00% 0.73% 1.01% Calendar year total returns HSBC U.S. Treasury Money Market Fund Class D 4.12% 4.12% 1.03% 0.04% 0.01% 0.01% 0.00% 0.00% 0.01% 0.00% Lipper U.S. Treasury Money Market Funds Average % 4.09% 1.12% 0.03% 0.01% 0.01% 0.01% 0.00% 0.01% 0.01% Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call , or visit our website at The performance above reflects any fee waivers that have been in effect during the applicable periods as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2016 through March 1, For important disclosures and information regarding average and index definitions, please see reverse side. Fund details Fund ratings 1 Moody s: Aaa-mf Standard & Poor s: AAAm Inception date Class D: May 14, 2001 Total net assets of all Fund classes $1,412,717,717 Ticker symbol and CUSIP numbers Class C: HUCXX Class D: HTDXX Investment cut off time Daily by 2:00 pm (EST) Final Valuation time Daily at 2:00 pm (EST) Financial year-end 31 October Minimum initial investment Class D: US$1,000 Gross Expense ratio Class D: 0.54% Maximum Deferred Sales Charge Class C: 1.00% Benchmark Lipper U.S. Treasury Money Market Funds Average Investment adviser HSBC Global Asset Management (USA) Inc. HSBC Funds A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES FDIC BY ANY FEDERAL GOVERNMENT AGENCY GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES MAY LOSE

6 HSBC U.S. Treasury Money Market Fund Share Class D Instrument mix (subject to change) Treasury debt Other instruments (cash) 0.0 Maturity mix (subject to change) Overnight days - 7 days days - 30 days days- 60 days 5.0 Over 60 days 3.2 Credit quality mix 3 (subject to change) P-1/A N/A - Cash 0.0 Top ten holdings (subject to change) U.S. Treasury Bill Dn, 7/21/ U.S. Treasury Bill Dn, 7/14/ U.S. Treasury Bill Dn, 7/7/ U.S. Treasury Note Vrn, 4/30/ U.S. Treasury Note Vrn, 7/31/ U.S. Treasury Note Vrn, 1/31/ U.S. Treasury Note 0.50%, 7/31/ U.S. Treasury Note Vrn, 10/31/ U.S. Treasury Note Vrn, 7/31/ U.S. Treasury Bill Vrn, 10/31/ * The National Association of Insurance Commissioners Securities Valuation Office (NAIC SVO) has placed the HSBC U.S. Treasury Money Market Fund on the NAIC s Class 1 Approved List. This means the NAIC SVO verified that Fund meets the criteria specified by the NAIC to permit an insurer to report shares of the Fund as bond-like for certain state insurance regulatory purposes. Certain returns shown include monies received by the Fund in respect of one-time class action settlements and a one-time reimbursement from the Adviser related to past marketing arrangements. As a result, the Fund s total returns for those periods were higher than they would have been had the Fund not received the payments. Reflects the expense ratio as reported in the prospectus dated February 28, Moody s has assigned an Aaa-mf rating, and Standard and Poor s has assigned an AAAm rating to the HSBC U.S. Treasury Money Market Fund. The Aaa-mf and AAAm money market fund ratings are historical and reflect the superior quality of the Fund s investments, sound liquidity management, and strong operations and trading support. The ratings are derived from the underlying securities of the portfolio. The ratings are historical and are based upon the credit quality, market exposure, and management of the underlying securities. Periodic reviews are conducted to ensure a secure operations environment. The Moody s and Standard & Poor s ratings represent an opinion only, not a recommendation to buy or sell. 2 Lipper mutual funds averages are equally weighted averages of the mutual funds within their respective Lipper classifications, adjusted for the reinvestment of capital gains distributions and income dividends. 3 Obligations rated A-1+, A-1 or P-1 are rated in the highest short-term rating category by Standard & Poor s (A-1+ or A-1) or Moody s Investor Service (P-1). The obligor s capacity to meet its financial commitments on these obligations is regarded to be extremely strong (A-1+), strong (A-1) or superior (P-1). HSBC Global Asset Management (USA) Inc. serves as investment adviser. Foreside Distribution Services, L.P., member FINRA, is the distributor of the HSBC Funds and is not affiliated with the Advisor. HSBC Securities (USA) Inc., member NYSE, FINRA, and SIPC is a sub-distributor of the HSBC Funds. Affiliates of HSBC Global Asset Management (USA) Inc. receive fees for providing various services to the funds. Investment products are offered by HSBC Securities (USA) Inc. (HSI), member NYSE/FINRA/SIPC. HSI is an affiliate of HSBC Bank USA, N.A. Are not a deposit or other obligation of the bank or any of its affiliates; Not FDIC insured or insured by any federal government agency of the United States; Not guaranteed by the bank or any of its affiliates; and are subject to investment risk, including possible loss of principal invested. This material must be preceded or accompanied by a current prospectus. An investor should consider the Fund s investment objectives, risks, and charges and expenses carefully before investing or sending any money. This and other important information about the investment company can be found in the Fund s prospectus. To obtain more information, call , or visit our website at Please read the prospectus carefully before investing. US persons (both entities and individuals) are subject to US taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their US and non-us accounts. The Foreign Account Tax Compliance Act (FATCA) is a US law designed to prevent the use of non-us accounts or non-us entities to avoid US taxation of income and assets. To meet this objective, FATCA imposes on US and non-us entities certain documentation, due diligence, withholding and reporting requirements with respect to accounts and certain payments. Investors should consult their independent tax advisors about investment tax implications. A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES FDIC BY ANY FEDERAL GOVERNMENT AGENCY GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES MAY LOSE All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. Copyright HSBC Global Asset Management (USA) Inc. All rights reserved. HSBUSTMM (07/16) CA#