Title HSBC AMANAH FUNDS SICAV PRODUCT RANGE. u hsbcamanah.com

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1 Title HSBC AMANAH FUNDS SICAV PRODUCT RANGE 1 u hsbcamanah.com

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3 The Shariah compliant advantage The current financial turmoil has sponsored many discussions about the need for a new approach to banking and finance. It can be argued that a system that allows a single instrument such as Collateralised Debt Obligations (CDOs) to very nearly topple it and also encourages strategies, such as short-selling, to profit from sharp falls in the value of assets (thus contributing to volatility), is conflicting with the requirements of mainstream investors. So far, however, there has been relatively little partisan agreement on what wholesale revisions are necessary and ultimately acceptable. While investors may perceive Islamic investment products to be at a disadvantage to their more invisible hand peers as a result of the restrictions insisted upon in order to comply with Islamic law (Shariah). Shariah compliant benchmarks have performed well against their mainstream counterparts, even in emerging markets. For example, according to the Financial Times, the MSCI World Islamic Index outperformed the MSCI World Index between the end of May 2007 and the end of September 2008 by more than 7% in dollar terms (Source : Financial Times 2 November 2008). notwithstanding Islamic finance s transparent and rigorous risk management platform that could make it an ideal choice for all investors. The aspect of unity is core in Islamic finance. It is not simply about investing in pure stocks or indeed avoiding interest by not investing in the conventional banking sector, alcoholic beverages, tobacco or gaming; it is about protecting society from trickery, fraud and social tensions. Shariah products also stress accountability, fairness and transparency. Even discounting their more ethical aims, While the discussion rages, however, within the grasp of many investors (but so far beyond their attention) is a method of banking and investment which has generated compelling results despite not allowing participation in any of the aforementioned products or methods. This is Shariah compliant investing. While Islamic finance was developed for the Muslim community, there is a genuine socio-economic component that renders it equally attractive to investors of all faiths. Ethical investment and Islamic investment products share common ground and the recent surge in demand for ethical products could provide a lift for Shariah investments, these Islamic products are more similar to their conventional banking counterparts than many believe and are also competitive in terms of price and returns, hence making them attractive for any investor wishing to diversify their portfolio. 3

4 The Shariah compliant advantage As well as the CDOs and interest, short-selling is considered as speculative and therefore is also counted as unacceptable (Haraam). In addition, Islamic investment funds are not allowed to invest in the shares of companies that are heavily indebted with interest-based loans (the shares of such companies have naturally performed better in recent months than those of companies that are heavily burdened by debt). Were commercial banks required to share the profits and losses of their clients, whether on business investments or home purchases - such as is required under Shariah law - they would be much more careful when choosing which deals to finance. Indeed their financial returns would depend on the performance of the projects that they finance. If the value of a bank s liabilities was determined by the performance of its assets, there may be no sub-prime crisis now. But these restrictions have been advantageous to investors holding Islamic compliant assets. In the recent subprime crisis, many global financial institutions suffered significant losses as a result of defaulting mortgage payments or devaluations of property prices. As most financial stocks are conventional banks, Islamic investing products have been very much sheltered from the fall in the price of banking stocks. 4

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6 HSBC Amanah Funds SICAV Luxembourg-based SICAV Luxembourg is the second largest centre in the world for investment funds and the number one wealth management centre in the Eurozone. It is one of the most competitive economies in Europe and the leader in cross border fund distribution in and outside Europe with more than 75% of all UCITS registered. Luxembourg is international, diversified and well regulated. Luxembourg domiciled UCITS can be sold to retail investors throughout the EU and are widely accepted around the world, provided that registration requirements are fulfilled in each country concerned. HSBC Amanah Funds SICAV The HSBC Amanah Funds SICAV is an investment company (Société d Investissement à Capital Variable) constituted in the Grand Duchy of Luxembourg and qualifies as an Undertaking for Collective Investment in Transferable Securities (a UCITS ). The Company is organised as an umbrella structure with the ability to issue shares of different classes corresponding to different sub-funds. HSBC Amanah Funds SICAV is specifically designed for investors who wish to invest in equity markets in compliance with Shariah (Islamic law). The Company seeks to provide a comprehensive range of sub-funds combined with professional management for the purpose of spreading investment risk and to satisfy the requirements of investors seeking income, capital conversion and growth. All investments will meet Shariah principles as interpreted and laid down by the HSBC Amanah Central Shariah Committee and provided to the Board of Directors. The investment process ensures adherence to Shariah principles which HSBC Amanah s Central Shariah Committee monitors closely on a regular basis. Sectoral, financial ratios and transaction screenings take place before any trade is entered into. These are HSBC Global Asset Management s global flagship range of Islamic equity funds and have been developed to provide clients access to a selection of equity investment opportunities. The HSBC Amanah Funds SICAV has 4 Equity sub-funds : u HSBC Amanah Global Equity Index Fund u HSBC Amanah Global Equity u HSBC Amanah Europe Equity u HSBC Amanah Asia pacific ex Japan Equity Sinopia is the fund manager for HSBC Amanah Funds SICAV. 6

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8 Compliance with Shariah Central Shariah Committee All Shariah compliant investments must be certified by experts in Shariah, generally through a panel or board comprised of respected Shariah scholars who are qualified to issue Fatwas (religious rulings) on financial transactions. This panel of Shariah experts ensure full compliance of all Shariah compliant investment funds. Three scholars of international repute, well versed in both Islamic law and modern finance, serve on the HSBC Amanah Shariah Committee. The Committee not only provides initial approvals on investment objectives and investment strategy of all funds, but also reviews the investments periodically to ensure the continuous compliance of the investments of the funds to Islamic principles. Moreover, the Committee conducts annual audits of all funds to ensure adherence to their rulings during the year. Sheikh Nizam Yaquby Sheikh Nizam is a graduate in economics and comparative religion from McGill University and is an internationally acclaimed scholar in the islamic banking industry. He has been a teacher of Tafsir since He advises a number of banks and financial institutions including BNP Paribas, Dow Jones, Lloyds TSB and Standard Chartered on Islamic banking and finance. Sheikh Dr Mohamed Elgari Holds a PhD in economics from the University of California. He is an expert at the Islamic Jurisprudence Academy (OIC), Jeddah. Dr Elgari is the editor of the Review of Islamic Economics. He is also an adviser to several Islamic financial institutions worldwide and the author of many books on Islamic banking. Dr Mohamed Imran Ashraf Usmani Holds a PhD in Islamic Finance. He also obtained degrees of Alimiyyah and Takhassus (specialisation in Islamic Jurisprudence) from Jamia Darul Uloom, Karachi. His area of expertise is Islamic Finance in which he has carried out extensive research. Dr. Usmani is a faculty member/teacher of Jamia Darul Uloom, Karachi and Institute of Business Administration (IBA), Karachi. He is the author of various books on Shariah (Islamic law). 8

9 The screening process As in the example below, for funds using the Dow Jones as a benchmark the following financial screening will apply*. The Central Shariah Committee of HSBC Amanah has determined that investment funds investing in equities as an asset class will not invest in companies whose primary business activity is as shown in Figure 1 (sectoral screens), or in companies which exhibit characteristics as shown in Figure 2 (financial screens): * The screens below apply only to funds managed using the Dow Jones Islamic Market indices. For funds using the MSCI different financial screenings will be used. Figure 1: Sectors Figure 2: Financial Alcohol Weapons All the following should be less than 33% Tobacco Pork Total Debt/12 month trailing market capitalisation Financial services Gambling Cash & Interest bearing securities/12 month trailing market capitalisation Pornography Leisure/media Accounts Receivable/12 month trailing market capitalisation 9

10 HSBC Amanah SICAV product highlights HSBC Amanah Global Equity Index Fund The HSBC Amanah Global Equity Index Fund aims to create long-term appreciation of capital through investment in a well diversified portfolio of equities, as defined by the relevant world index, in a manner that is consistent with the principles of Shariah. Investors have access to equity markets through an experienced manager, with daily liquidity and the highest standard of compliance with Islamic principles. The fund is managed by Sinopia, the specialist quantitative management arm of the HSBC Group. Fund name: Legal form: Management company: Investment adviser: Management style: Index: Restrictions: Investment universe: Investment process: HSBC Amanah Global Equity Index Fund Sub Fund of the Luxembourg-based HSBC Amanah Funds SICAV HSBC Investment Funds (Luxembourg) SA SINOPIA Asset Management (UK) Ltd Indexation Dow Jones Islamic Titans 100 Index Shariah principles Global equities which meet Islamic principles The fund adopts a pragmatic full replication strategy using the underlying index. The objective is to neutralise key risk sources such as portfolio weight deviations (vs. index), sector & country bias. Number of stocks: Around 100 Fund tracking error Expected maximum of 0.50% 10

11 HSBC Amanah Global Equity Index Fund Sinopia s indexation process and strategies are designed to consistently deliver index returns, whilst minimising trading associated costs and tracking error risk through a distinct quantitative process. Sinopia follows a three-step process when implementing and managing index funds and mandates: Step 1: Preliminary index analysis Step 2: Portfolio construction Step 3: Trading analysis and implementation As risk management is key to Sinopia s investment and allocation process, all the sources of risk are strictly monitored and controlled at each stage of the process. Why an Index fund? Lower cost : Index funds simply invest in the stocks that are in the index, eliminating the need for an active fund manager to track, analyze and pick stocks. They typically have lower management fees, because they are not actively managed, and they tend to trade less frequently than an actively managed fund. The average actively managed mutual fund turns over 100% of its portfolio per year in an effort to beat the market, generating higher costs in the form of commissions and spreads. Indexing is a passive approach with typically less than 20% annual turnover. It reduces your risk in the sense that you don t try to follow the latest hot trend, by moving your money all the time, paying a lot in trading fees. Investment opportunities : Companies in an index are carefully selected, and are representative of various industries. That means you can take advantage of broad market opportunities by investing in sectors such as technology, healthcare and telecommunication. Index-fund investors may achieve better returns because they re not jumping in and out of funds trying to boost performance. Also, returns are not dependent on how a single stock performs, but on a group of stocks that represent the index. This spreads risk among many stocks and keeps the investment diversified. 11

12 HSBC Amanah Global Equity The HSBC Amanah Global Equity aims to create long-term appreciation of capital through investment in a well diversified portfolio of equities, as defined by the relevant world index, in a manner that is consistent with the principles of Shariah. Investors have access to equity markets through an experienced manager, with daily liquidity and the highest standard of compliance with Islamic principles. This is an actively managed fund and is designed for investors who want exposure to global equities consistent with the principles of Shariah law and who are seeking portfolio diversification with potentially strong returns over a 5 to 10 year period and fairly high level of volatility. The fund is managed by Sinopia, the specialist quantitative management arm of the HSBC Group. Fund name: Legal Form: Management Company: Investment Adviser: Management Style: Index: Restrictions: Investment Universe: Investment Process: HSBC Amanah Global Equity Sub Fund of the Luxembourg-based HSBC Amanah Funds SICAV HSBC Investment Funds (Luxembourg) SA SINOPIA Asset Management Ltd Active quantitative Dow Jones Islamic Market Index Shariah principles Global equities which meet Islamic principles Using quantitative valuation methods, Sinopia selects the most promising stocks within the investment universe and builds a portfolio that takes into consideration stock/ sector/country interaction. In addition to dynamic country/ sector allocation, the fund also achieves its performance by constantly monitoring and adjusting its overall equity exposure (between 90% and 100%). The strategy complies with Islamic investment principles. Number of Stocks: Between 100 and 150 Fund tracking error: Between 4% and 6% 12

13 HSBC Amanah Global Equity HSBC Amanah Global Equity features four key sources to drive fund performance with active risk management : 1. Continuous exposure management: overall equity exposure is constantly monitored with adjustments made based on Sinopia s expected returns for the Global equity markets 2. Dynamic country allocation: according to its valuation signals, the fund manager takes lower or higher exposure relative to the index on the different countries of the investment universe 3. Dynamic sector allocation: the fund manager adjusts the sector weights compared to the index based on identified market opportunities 4. Active stock selection: using quantitative valuation techniques, the fund manager selects the stocks which offer the best performance potential within each country. When investment markets are unsettled, global equity funds are often the vehicle of choice for investors. This is because global stocks can be used defensively, diversifying the risk found in single country investments. Globalisation has aided the rise of multinational giants that derive much of their revenue from global markets other than their own. A global investment approach can help you participate in the growth of these industry leaders, wherever they may be headquartered. As shown below, the Dow Jones Islamic Market Index outperformed the Dow Jones World Stock Index over the five year period to December Dow Jones Islamic Markets Index performance versus the Dow Jones World Stock Index since December % 60% 40% 20% 0% -20% Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec % -8.02% Dow Jones Islamic Markets Index Dow Jones World Stock Index Source : Bloomberg. Data as at 31 December Both indices are on a price return basis in US$ and rebased to 100. Past performance is not a guide to future performance. 13

14 HSBC Amanah Europe Equity The sub-fund seeks long term capital growth through the implementation of an active management strategy. The investments will consist of a diversified portfolio of European equity securities that comply with Islamic investment principles. The investment universe also includes the European emerging countries. This Sub Fund is designed for investors who want exposure to European equities consistent with the principles of Shariah law and who are seeking portfolio diversification with potentially strong returns over a 5 to 10 year period and fairly high level of volatility. The fund is managed by Sinopia, the specialist quantitative management arm of the HSBC Group. Fund name: Legal form: Management company: Investment adviser: Management style: Index: Restrictions: Investment universe: Investment process: HSBC Amanah Europe Equity Sub Fund of the Luxembourg-based HSBC Amanah Funds SICAV HSBC Investment Funds (Luxembourg) SA SINOPIA Asset Management Ltd Active quantitative Dow Jones Islamic Europe Index Shariah principles Eurozone, United Kingdom, Norway, Sweden, Denmark, Switzerland and European emerging countries equities which meet Islamic principles. Using quantitative valuation methods, Sinopia selects the most promising stocks within the investment universe and builds a portfolio that takes into consideration stock/ sector/country interaction. In addition to dynamic country/ sector allocation, the fund also achieves its performance by constantly monitoring and adjusting its overall equity exposure (between 90% and 100%). The strategy complies with Islamic investment principles. Number of stocks: Between 80 and 120 Fund tracking error: Between 4% and 6% 14

15 HSBC Amanah Europe Equity HSBC Amanah Europe Equity features four key sources to drive fund performance with active risk management : 1. Continuous exposure management: overall equity exposure is constantly monitored with adjustments made based on Sinopia s expected returns for the European equity markets 2. Dynamic country allocation: according to Sinopia s valuation signals, the fund manager takes lower or higher exposure relative to the index on the different countries of the investment universe 3. Dynamic sector allocation: the fund manager adjusts the sector weights compared to the index based on identified market opportunities 4. Active stock selection: using quantitative valuation techniques, the fund manager selects the stocks which offer the best performance potential within each country. Europe is the birthplace of many of the world s largest leading multinational companies, and home to its global headquarters. Among these are distinguished companies ranked first in the world within their industry/sector, like Airbus, Air France- KLM, Arcelor-Mittal, Groupe Danone, L Oréal Group, LVMH, Nokia Corporation, Royal Dutch Shell, Audi VAG. Many other European companies rank among the world s largest companies in terms of turnover, profit, market share, number of employees or other major indicators. Europe s population (311 million)* represents only 5%* of the world s population, but accounts for 30%* and 20%* of the world s exports and imports respectively, and 15%* of the gross world product (World GDP). Investing in Europe gives access to a large single market of 300 million customers, with modern infrastructure, highly educated and skilled workforce, allowing businesses to deliver to their partners on time with a sound and stable macroeconomic and political environment with legal certainty and transparency of regulatory reform. As shown below, the Dow Jones Islamic Europe Index outperformed the Dow Jones Euro Stoxx over the five year period to December *Source : The Economist Sept 2008 Dow Jones Islamic European Markets Index performance versus the Dow Jones Euro Stoxx Index since December % 80% 60% 40% 20% 2.36% 0% -8.43% -20% Jun-04 Dec-03 Dec-04 Jun-05 Dec-05 Dow Jones Islamic European Markets Index Dec-06 Jun-06 Jun-07 Dec-07 Dow Jones Euro Stoxx Index Dec-08 Jun-08 Source : Bloomberg. Data as at 31 December Both indices are on a price return basis in US$ and rebased to 100. Past performance is not a guide to future performance. 15

16 HSBC Amanah Asia Pacific ex Japan Equity 16 The sub-fund seeks long term capital growth through the implementation of an active management strategy. The investments will consist of a diversified portfolio of Asia Pacific ex Japan equity securities that comply with Islamic investment principles. This Sub Fund is designed for investors who want exposure to Asia Pacific equities consistent with the principles of Shariah law and who are seeking portfolio diversification with potentially strong returns over a 5 to 10 year period and a fairly high level of volatility. The fund is managed by Sinopia, the specialist quantitative management arm of the HSBC Group. HSBC Amanah Asia Pacific ex Japan Equity features four key sources to drive fund performance with active risk management : 1. Continuous exposure management: overall equity exposure is constantly monitored with adjustments made based on Sinopia s expected returns for the Asian pacific ex Japan equity markets Fund name: HSBC Amanah Asia Pacific ex Japan Equity Legal form: Sub Fund of the Luxembourg-based HSBC Amanah Funds SICAV Management company: HSBC Investment Funds (Luxembourg) SA Investment adviser: SINOPIA Asset Management (Asia Pacific) Ltd Management style: Active Quantitative Index: MSCI AC Asia Pacific ex Japan Islamic Index Restrictions: Shariah principles Investment universe: Australia, China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand equities which meet Islamic principles. Investment process: Using quantitative valuation methods, Sinopia selects the most promising stocks within the investment universe and builds a portfolio that takes into consideration stock/sector/ country interaction. In addition to dynamic country/sector allocation, the fund also achieves its performance by constantly monitoring and adjusting its overall equity exposure (between 90% and 100%). The strategy complies with Islamic investment principles. Number of stocks: Between 100 and 150 Fund tracking error: Between 4% and 6%

17 HSBC Amanah Asia Pacific ex Japan Equity 2. Dynamic country allocation: according to Sinopia s valuation signals, the fund manager takes lower or higher exposure relative to the index on the different countries of the Over the last decade, the Asia-Pacific region has been one of the world s strongest growth stories. Impressive broad-based gains mean that equity investors who have stayed The region accounts for more than half of the world s population and a quarter of the economic wealth created every year. Equity markets in the Asia-Pacific region offer investment universe invested in the region have enjoyed some powerful growth prospects and a diverse array healthy returns, with starting valuations lower of enterprising, well-managed companies. 3. Dynamic sector allocation: the fund than many mature stock markets. Since Because Asia-Pacific is a high-growth region manager adjusts the sector weights compared its tipping point in 1997, Asia-Pacific has undergoing significant structural change, we to the index based on identified market completely reinvented itself. Economies and believe it offers attractive valuations and some opportunities currencies have become more stable, stock significant opportunities. Moreover, investor markets are better regulated and the region sentiment on long-term prospects for the Asia 4. Active stock selection: using quantitative is now home to some of the world s most Pacific region remains positive. As shown valuation techniques, the fund manager dynamic and enterprising companies. The Asia below, the MSCI AC Asia Pacific Islamic ex selects the stocks which offer the best Pacific region is driven by robust economic Japan Index outperformed the MSCI AC performance potential within each country. growth, coupled with strong demographic Asia Pacific ex Japan Index over the five year and infrastructure themes across the region. period to December MSCI AC Asia Pacific Islamic ex Japan Index performance versus the MSCI AC Asia Pacific ex Japan Index since December % 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% -20% 24.43% 11.48% Dec-08 Jun-08 Dec-07 Jun-07 Dec-06 Jun-06 Dec-05 Jun-05 Dec-04 Jun-04 Dec-03 MSCI AC Asia Pacific Islamic ex Japan MSCI AC Asia Pacific ex Japan Source: Bloomberg. Data as at 31 December Both indices are on a price return basis in US$ and rebased to 100. Past performance is not a guide to future performance. 17

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19 About HSBC Amanah HSBC Amanah is the Islamic financial services division of the HSBC Group. With experienced personnel working from regional offices, its mission is to ensure that HSBC is one of the leading providers of value-added Shariah compliant financial products and services to its clients. HSBC Amanah is uniquely positioned to understand, structure, and deliver financial solutions that are compatible with the requirements of Shariah. It is headquartered in Dubai, and with regional representatives in New York, Riyadh, London, Jakarta and Kuala Lumpur, HSBC Amanah is the leading global player in the Islamic finance industry. HSBC Amanah is guided and supervised by the HSBC Amanah Central Shariah Committee, an independent committee of Islamic scholars. The Committee oversees the development and operations of all HSBC Amanah products and transactions to ensure that they meet the requirements of Shariah. As at end of September 2008, HSBC Amanah had USD 4,001.6 million assets under management within various asset classes. HSBC Amanah Awards HSBC Amanah Amanah Saudi Equity Fund Amanah GCC Equity Fund Best Islamic Fund Manager 2007 (Euromoney) Best performing GCC Equity Fund over 3-year period (Lipper) Best GCC Equity Fund 2007 (Failaka) Amanah Saudi Equity Fund Best Islamic Equity Fund 2005 (Failaka) 19

20 Why HSBC for Shariah compliant investments? Industry leader - The HSBC Group is one of the largest banking and financial services organisations in the world. Headquartered in London, the Group s international network comprises about 9,500 offices with over 100 million customers in 85 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With a rich history of community banking and a commitment to meet the particular needs of our diverse customers, we are the world s local bank. With operations in twenty Organisation of Islamic Conference (OIC) member states, no international bank is more widely represented in the Muslim world than HSBC. Nor has any made a greater investment in Islamic banking. Independently endorsed - HSBC Amanah works closely with an independent Committee of Shariah scholars to ensure that our products and transactions meet the requirements of Shariah. The endorsement of this Committee is critical to our legitimacy as a provider of Islamic financial solutions. Credibility and global resources - HSBC Amanah, the dedicated Islamic services division of the HSBC Group, was established in 1998 and now has widespread global representation with presence in the UK, the United States, Saudi Arabia, United Arab Emirates, Malaysia, Bangladesh, Indonesia, Singapore and Brunei. It also has the global resources of the HSBC Group at its disposal, and has the largest Islamic finance team of any international bank, enabling it to be uniquely positioned to understand, structure and distribute Shariah compliant products. 20

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22 Contacts For more information about HSBC Global Asset Management services in the Middle East please contact: Dan Rudd Stuart Cameron Yasmin Khalifa Matthew Sage Head of MENA Wholesale Tel: Mobile: Regional Sales Manager, Group Distribution, MENA Tel: Mobile: Regional Sales Manager, External, MENA yasmin.khalifa@hsbc.com Tel: Mobile: Business Development Support, MENA matthew.sage@hsbc.com Tel: +44 (0) Mobile: +44 (0)

23 This document is intended for investment professionals only and should not be distributed to retail clients. HSBC Amanah Funds SICAV is a Luxembourg domiciled SICAV and is regulated by the CSSF. HSBC Amanah Funds SICAV cannot be sold by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such an offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation. All applications are made on the basis of the current HSBC Amanah Funds SICAV Prospectus, simplified prospectus and most recent annual and semi-annual reports. These can be obtained on request and free of charge from HSBC Global Asset Management (UK) Limited or the local distributors. The securities representing interests in HSBC Amanah Funds SICAV have not been and will not be registered under the US Securities Act of 1933 and will not be offered for sale or sold in the United States of America, its territories or possessions and all areas subject to its jurisdiction, or United States person, except in a transaction which does not violate the Securities Law of the United States of America. The value of investments may go down as well as up and you may not get back the full amount you invested. Where overseas investments are held the rate of exchange may cause the value of investments to go down as well as up. Markets in some countries can be described as emerging markets. Some of these may involve a higher risk than where an investment is within a more established market. Where a sub-fund invests predominately in one geographical area, any decline in economic conditions may affect prices and the value of underlying investments. HSBC Global Asset Management (UK) Limited provides information to professional advisers and their clients on the investment products and services of members of the HSBC Group. The material contained in this document is for information only and does not constitute investment advice or a recommendation to any reader of this material to buy or sell investments. The funds mentioned in this document may not be registered for sale or available in all jurisdictions. For available funds please contact your local HSBC office. It is possible that the restrictions placed on investment such as the prohibition on the use of interest bearing investments, the donations to approved Charities and the limited universe of stocks available to the Investment Adviser may result in the funds performing less well than funds with similar investment objectives which are not subject to Shariah restrictions. This document is issued by HSBC Global Asset Management (UK) Limited, 8 Canada Square, Canary Wharf, London, E14 5HQ, UK. Authorised and regulated by the Financial Services Authority and registered as number Copyright. HSBC Global Asset Management All Rights Reserved. This product is marketed in a sub-distributing capacity on a principal to principal basis by the HSBC Global Asset Management MENA, a unit that is part of HSBC Bank Middle East Limited, PO Box 66, Dubai, UAE, which is incorporated and regulated by the Jersey Financial Services Commission. Services are subject to the Bank s terms and conditions. HSBC Bank Middle East Limited is a member of the HSBC Group. The information provided has not been prepared taking into account the particular investment objectives, financial situation and needs of any particular investor. As a result, investors using this information should assess whether it is appropriate in the light of their own individual circumstances before acting on it. The information in this document is derived from sources believed to be reliable, but which have not been independently verified. However, HSBC Bank Middle East Limited makes no guarantee of its accuracy and completeness and is not responsible for errors of transmission of factual or analytical data, nor shall HSBC Bank Middle East Limited be liable for damages arising out of any person s reliance upon this information. All charts and graphs are from publicly available sources or proprietary data. The opinions in this document constitute the present judgment of the issuer, which is subject to change without notice. This document is neither an offer to sell, purchase or subscribe for any investment nor a solicitation of such an offer. This document is intended for the use of institutional and professional customers and is not intended for the use of private customers. This document is intended to be distributed in its entirety. No consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient. Any transaction will be subject to HSBC Bank s Terms of Business /ME/0109 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 to create any financial instruments or products or any indices. The MSCI information is provided on an as is basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating the MSCI information (collectively, the MSCI Parties ) makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and the MSCI Parties hereby expressly disclaim all warranties (including, without limitation, all 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 or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. Source: Dow Jones and Dow Jones Islamic Market Titans Index SM are service marks of Dow Jones & Company, Inc. and will be licensed for use by HSBC Investment Funds (Luxembourg) S.A. The HSBC Amanah Global Equity Index Fund is not sponsored, endorsed, sold or promoted by Dow Jones and Dow Jones makes no representation regarding the advisability of investing in the Fund.

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