Your strategic partner for cash investment solutions. HSBC Global Asset Management

Transcription

1 Your strategic partner for cash investment solutions HSBC Global Asset Management For professional and institutional clients only Not for further distribution July 2016

2 Global Liquidity from HSBC Global Asset Management HSBC Global Asset Management is HSBC s core investment business dedicated to managing assets for institutions, corporates and individuals worldwide. Our liquidity team within HSBC Global Asset Management are dedicated to helping organisations of every kind make their cash reserves work harder through intelligent investment solutions. As part of the HSBC Group, we have local liquidity expertise across both core and emerging markets. This helps us to deliver global, multi-currency solutions to allow clients to invest their cash in a consistently managed liquidity product. HSBC Global Asset Management provides a wide range of liquidity investment solutions. Our investment philosophy is that liquidity management must be focused on risk management. As such, we believe our responsibility to investors is to aim to preserve capital and provide liquidity. With a consultative approach to working with our clients, solutions range from money market funds to highly customised portfolios. Thanks to our global expertise and solutions-driven approach, our clients have entrusted HSBC with USD429 billion in total assets under management, including USD62.1 in liquidity and USD199.6 in fixed income solutions 1. Investment Philosophy ``Preservation of capital Our key strengths ` A prudent low-risk cash management approach ` Detailed, considered set of investment policies covering all aspects of risk ` A structured and methodical globally consistent investment process designed to deliver its objectives ` Distinctive credit approval and limit setting process ` Strategic importance of liquidity as an asset class allows HSBC to invest in high quality and the right level of dedicated resources ` Investment and credit teams located in 12 locations globally 1, benefiting clients with their local market knowledge ` Dedicated client service team in all regions to provide timely support to clients ` A full range of Liquidity investment strategies in multiple currencies ``Daily liquidity ``Active risk management ``Extensive credit research 1 As at 31 March There is no guarantee that a stable net asset value will be maintained and investors may not get back the amount originally invested. 2

3 Risk Management We define risk as the failure to achieve fund or client objectives, as a result risk management is a key component of our investment philosophy and process across all asset classes. Risks are managed based on rigorous procedures and sophisticated tools, with appropriate due diligence carried out by experienced professionals, who have built a strong culture of risk management. All of our portfolios are subject to on-going controls at each level of the investment process (financial risk, execution, internal and clients systematic risk). The risk management process for each portfolio is to identify what are the appropriate risk management metrics, and the monitoring frequency and management action triggers that will cause a review. These will vary according to the nature and type of portfolio. 3

4 Partner with HSBC Global Asset Management Integrated Cash Investment Solutions HSBC Global Asset Management is trusted by companies around the world to help them invest their cash effectively. As part of HSBC, we look to integrate our activities with those of our banking colleagues to offer investment solutions that work seamlessly within the whole cash management process. Working with you every step of the way We work in partnership with clients to identify cash that is being under-utilised or taking too much risk. We are committed to fresh and innovative thinking in every aspect of liquidity investment, from formulating an appropriate investment policy to executing and managing investment strategies. Every solution is driven by clients, allowing them to target their specific requirements for security, access and yield. Treating cash as a core asset class Cash solutions are a core competency of HSBC Global Asset Management. We treat it as a discrete asset class that requires its own dedicated expertise and active management. We take active positions on duration to preserve capital and improve yield. In portfolio construction, we tactically emphasise cash instruments that, in our opinion, offer the most relative value. We also commit extensive resources to proprietary credit research to ensure that every counterparty we use offers the security and liquidity our clients expect. Our in-house research capability also means we can frequently take credit related investment decisions ahead of peers who rely on third party analysis. Why HSBC Liquidity? As you would expect from HSBC, our cash investment capability is truly global. We can create solutions that incorporate cash reserves across multiple jurisdictions, tax and regulatory environments, and currencies. No investment challenge is too simple or too complex. And because we are HSBC, we can deliver solutions in more markets and more currencies than almost anyone else. Moreover, sales, relationship and investment management teams are managed as one global team, so they are all focused on the same goal: delivering the very best solutions to every client. Robust risk management Disciplined investment process Experienced, dedicated teams Client focused ``A prudent, relatively low-risk cash management approach ``Detailed, considered set of investment policies focused on managing risk ``A structured and methodical globally consistent investment process ``Distinctive credit approval and limit settling process ` `Liquidity treated as a direct asset class with high quality, dedicated investment and support resources ` `Investment and credit teams located in 12 locations worldwide with local market knowledge ``Dedicated regional client service teams to provide timely support to clients ``A range of Liquidity investment strategies in multiple currencies 4

5 HSBC Product Offering Consistently Managed Global Solutions HSBC provides a range of global and local liquidity products in a range of currencies to suit differing client requirements. Depending on your location, you can invest and redeem using HSBCnet, a variety of 3rd party investment portals, direct via our client service teams, or through automated two-way sweeps connected to your HSBC cash operating accounts. International Money Domestic Capabilities Domestic Capabilities Segregated Mandates Market Funds Global Currencies Local Currencies 1 US Dollar Euro Argentina Customised portfolios can be tailored toward Sterling Prime Canada an investor s specific requirements Euro Government China Minimum size of USD100 million allows us to Canadian Dollar Treasury Hong Kong India optimise diversification and enhance returns US Dollar Taiwan Prime Turkey US Government US Treasury 1 Funds managed to local requirements and only available to local domiciled entities Source: HSBC Global Asset Management. The funds presented in this document may not be registered and/or authorised for sale in your country. At HSBC Global Asset Management, we are focused on providing a truly consultative approach to our clients cash management requirements and we have developed a suite of global products to allow us to meet the needs of our global client base. In keeping with our focus on risk management, we have created an investment process which is consistent, where possible, across all of our Liquidity products the advantage for clients is that they can be comfortable that their investment in a HSBC money market fund will be consistently managed wherever it is located. This is particularly important to clients investing in countries with a less developed money market fund industry or countries where a client does not have their own local cash management expertise. In addition to a range of currencies, we can also provide tailored investment solutions for clients seeking something different from a traditional money market fund. Our products in this space still reflect our focus on prudent, low-risk investment management but also allow clients to tailor a solution to meet their specific needs. For clients with an investment horizon beyond a typical money market fund, HSBC Global Asset Management can also provide clients with Low Duration segregated mandates. HSBC Global Asset Management can work with clients to create a portfolio with a credit and duration mix determined by the client based on risk return expectations and target maturity profile. 5

6 HSBC Global Liquidity Funds International AAA-rated money market funds Quality ``Àim to maintain a triple A rating from at least one recognised rating agency, currently: Standard & Poor s AAAm Moody s Aaa-mf ` `Highest underlying credit quality Minimum A-1 or P-1 rating per individual investment at time of purchase 50% minimum in A-1+ for entire portfolio 1 ` `Dedicated HSBC credit research supporting all liquidity products ` `Managed to Short Term Money Market Fund definition as per European regulation Yield ` `Yields competitive with typical overnight or one week short-term interest rates (eg 7 day BBA LIBID) ``The cash portfolio is actively managed on a daily basis Utilising HSBC s purchasing power and leveraging areas within HSBC Global Asset Management Liquidity ``Same day settlement ``Daily access in accordance to the following cut off times Euro 1.00 pm (Dublin time) Sterling 1.30 pm (Dublin time) Dollar 4.30 pm (New York time) CAD noon (New York time) Service ` `Dedicated relationship manager ``Global client service team ``HSBCnet available for on-line reporting/trading ``Accumulating NAV share classes available The offshore funds are not available for offer and sale to US persons other than pursuant to an exemption from the US securities laws. 1 A-1 rated instruments maturing in five business days or less are counted towards the A-1+ percentage, as historical default rates on A-1 paper maturing within five business days are similar to the default rates of A-1+ issuers. Any approved counterparty must, in addition to being on the approved list, have a minimum A-1, P-1 or F-1 short-term rating at the time of purchase. An exception can be made. If a counterparty is subsequently downgraded below the minimum rating and the relevant portfolio manager believes it is in the best interest of the liquidity fund to continue to hold the exposure, approval to continue to hold the exposure must be obtained. Source: HSBC Global Asset Management. Data as at 30 June For illustrative purposes only. The value of investments and any income from them can go down as well as up. It is important to remember that there is no guarantee that a stable net asset value will be maintained. Investors may not get back the amount originally invested. Past performance is not a reliable indicator of future results. Any forecast, projection or target contained in this document is indicative only and is not guaranteed in any way. The value of investments may be affected by uncertainties such as international, political and economic developments. The value of the fund may also be affected by the credit worthiness of the issuers of the investments and notwithstanding the policy of the fund investing in short-term instruments. The value of the fund may also be affected by substantial adverse movements in interest rates. The funds presented in this document may not be registered and/or authorised for sale in your country. 6

7 Important Information For Professional Clients and intermediaries within the countries set out below and for Professional Investors in Canada and Institutional Investors in the USA and Singapore. This document should not be distributed to or relied upon by Retail clients/investors. The contents of this document may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. All nonauthorised reproduction or use of this document will be the responsibility of the user and may lead to legal proceedings. The material contained in this document is for informational purposes only and neither constitutes a prospectus, request/ offer, nor advice or recommendation of any kind, e.g., to buy/subscribe or sell/ redeem the described fund or to perform any transaction of any kind. This document has no contractual value and is not by any means intended either as a solicitation, or a recommendation for the purchase or sale of any financial instrument in any jurisdiction in which such an offer is not lawful. The views and opinions expressed herein are those of HSBC Global Asset Management at the time of preparation and are subject to change at any time. This document is based on information obtained from sources we believe to be reliable but which have not been independently verified; therefore we accept no responsibility for accuracy and/or completeness. Past performance contained in this document is not a reliable indicator of future performance, whilst any forecasts, projections, simulations or targets contained herein are indicative only and are not guaranteed nor should they be relied upon as an indication of future results. The analysis does not take in to account any initial charge that may apply. We accept no liability for any failure to meet such forecast, projection or target. It cannot be excluded that an investment in the fund could lead to losses for the investor. It is important to remember that your investment is not guaranteed and you may not get back the amount you originally invested. The global liquidity funds are sub-funds of HSBC Global Liquidity Funds plc, an open-ended Investment company with variable capital and segregated liability between sub-funds, which is incorporated under the laws of Ireland and authorised by the Central Bank of Ireland. The company is constituted as an umbrella fund, with segregated liability between sub-funds. Shares of the sub-funds may not be offered or sold in the United States of America, including its territories and possessions ( United States or US ), or, directly or indirectly, to or for the benefit of a US Person, except in a transaction exempt from the registration requirement of the Securities Act of 1933, as amended. NOT FDIC INSURED/NO BANK GUARANTEE/MAY LOSE VALUE. All subscriptions in any fund presented in this document are accepted only on the basis of the current HSBC Global Liquidity Funds prospectus, Key Investor Information Document (KIID) and most recent annual and semi-annual reports, which can be obtained upon request free of charge from the registered or head office of the below mentioned HSBC Global Asset Management entities or local distributors. All the information within this document does not replace the official legal documents for the fund (i.e. prospectus, Key Investor Information Document (KIID), annual and semi-annual reports). This fund may not be suitable for every investor. Before subscription, investors and potential investors should read and note the general risk factors in the prospectus and the specific risk factors in the Key Investor Information Document (KIID). If you have any doubts about the suitability of this investment, you should contact a financial adviser. It is important to remember that there is no guarantee that a stable net asset value will be maintained. The value of investments and the income from them can go down as well as up and investors may not get back the amount originally invested. Where overseas investments are held the rate of currency exchange may cause the value of such investments to go down as well as up. Investments in emerging markets are, by their nature, higher risk and potentially more volatile than those inherent in established markets. If the investor s domestic currency is not the same as the sub-fund denomination, an exchange risk may result. The value of the fund may also be affected by the credit worthiness of the issuers of the investments and notwithstanding the policy of the fund investing in shortterm instruments. The value of the fund may also be affected by substantial adverse movements in interest rates. HSBC Global Asset Management is the brand name for the asset management business of HSBC Group. The above communication is distributed by the following entities: In Argentina by HSBC Bank Argentina S.A. Investments in fund shares do not constitute deposits in HSBC Bank Argentina S.A. Thus, according to the Argentinean law for financial institutions, they are not covered by any of the guarantees that such deposits, sight or term, might enjoy according to the appropriate legislation and regulation. Likewise, HSBC Bank Argentina S.A. is not allowed, by BCRA regulations, to assume tacit or expressly, any commitment of maintaining at any moment the value of the invested capital, the yield, the value of the shares at redemption or granting liquidity for such end. Law 25,738 (1st art.); HSBC Bank Argentina S.A., is a corporation constituted under the Argentinean republic law. Its operations are independent from the other companies of the HSBC group. Shareholders limit their responsibility to their subscribed capital. In Bermuda by HSBC Global Asset Management (Bermuda) Limited, of 6 Front Street, Hamilton, Bermuda which is licensed to conduct investment business by the Bermuda Monetary Authority. In Canada by HSBC Global Asset Management (Canada) Limited HSBC Global Asset Management (Canada) Limited is registered in all provinces of Canada except Prince Edward Island and also provides services in the Northwest Territories. The funds presented in this document may not be registered and/or authorised for sale in your country. The offshore funds are sold in Canada under exemptions with minimum required purchase amounts as well as other requirements. As a purchaser of this offshore fund through the exempt market you may lose certain legal rights and may be subject to different tax requirements as compared to Canadian based funds offered through the non-exempt market. The value of investments may be affected by uncertainties such as international, political and economic developments. The value of the fund may be affected by substantial adverse movements in interest rates and the credit worthiness of the issuers of the investments, notwithstanding the policy of the fund investing in short-term instruments. There is no guarantee that a stable net asset value will be maintained. Investors may not get back the amount originally invested. Past performance is not a reliable indicator of future results. We recommend you consult with your legal and tax advisor prior to making any purchase. In Germany by HSBC Global Asset Management (Deutschland) GmbH HSBC Global Asset Management (Deutschland) GmbH is regulated by BaFin in Germany. All statutory requirements concerning impartiality of financial analysis are unaffected. A prohibition of trading concerning mentioned financial products before publishing this document does not exist. This document is only directed to persons who have a permanent residence in the Federal Republic of Germany. This document and any information it contains is not meant for private clients in terms of 31a para. 3 WpHG Registered Office - HSBC Trinkaus & Burkhardt AG, Koenigsallee 21/23, Duesseldorf, Germany. In France by HSBC Global Asset Management (France) HSBC Global Asset Management (France) RCS Nanterre. Portfolio management company authorised by the French regulatory authority AMFR (no. GP99026) with capital of euros. HSBC Global Asset Management (France) is responsible for the business relationship and provides client services both in France and abroad (including Italy, Finland and Sweden). Postal address: Paris cedex 08, France. Offices: Immeuble Ile de France - 4 place de la Pyramide - La Défense Puteaux France. In Hong Kong by HSBC Global Asset Management (Hong Kong) Limited HSBC Global Asset Management (Hong Kong) Limited is regulated by the Securities and Futures Commission in Hong Kong. Registered Office - HSBC Main Building, 1 Queen s Road. Central, Hong Kong. In India by HSBC Asset Management (India) Private Ltd. which is regulated by the Securities and Exchange Board of India. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. In MENA by HSBC Global Asset Management MENA HSBC Global Asset Management MENA is a unit that is part of HSBC Bank Middle East Limited, PO Box , 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. This material is distributed by the following entities. In the United Arab Emirates, Qatar, Bahrain, Kuwait & Lebanon by HSBC Bank Middle East Limited which is regulated by Jersey Financial Services Commission and relevant local Central Banks. In Oman by HSBC Bank Oman S.A.O.G regulated by Central Bank of Oman and Capital Market Authority of Oman. In Singapore by HSBC Global Asset Management (Singapore) Limited HSBC Global Asset Management (Singapore) Limited is regulated by the Monetary Authority of Singapore. HSBC Global Asset Management (Singapore) Limited, or its ultimate and intermediate holding companies, subsidiaries, affiliates, clients, directors and/or staff may, at anytime, have a position in the markets referred herein, and may buy or sell securities, currencies, or any other financial instruments in such markets. HSBC Global Asset Management (Singapore) Limited is a Capital Market Services Licence Holder for Fund Management. HSBC Global Asset Management (Singapore) Limited is also an Exempt Financial Adviser and has been granted specific exemption under Regulation 36 of the Financial Advisers Regulation from complying with Sections 25 to 29, 32, 34 and 36 of the Financial Advisers Act). In Switzerland by HSBC Global Asset Management (Switzerland) Limited This document may be distributed in Switzerland only to qualified investors according to Art. 10 para 3 of the Federal Collective Investment Schemes Act (CISA). Representative in Switzerland: HSBC Global Asset Management (Switzerland) Ltd., Bederstrasse 49, P.O. Box, CH-8002 Zurich. Paying Agent in Switzerland: HSBC Private Bank (Suisse) SA, Quai des Bergues 9-17, P.O. Box 2888, CH-1211 Geneva 1. In respect of the units distributed in Switzerland, the competent courts shall have exclusive venue at the registered office of the Representative in Switzerland. The official documents as per Art. 13a CISO as

8 well as the (Semi-)Annual Report of the Fund may be obtained free of charge at the office of the Representative in Switzerland. In Taiwan by HSBC Global Asset Management (Taiwan) Limited HSBC Global Asset Management (Taiwan) Limited is regulated by the Financial Supervisory Commission of Taiwan. In the UK by HSBC Global Asset Management (UK) Limited HSBC Global Asset Management (UK) Limited is authorised and regulated by the Financial Conduct Authority in the UK. HSBC Global Asset Management (UK) Limited provides information to Institutions, Professional Advisers and their clients on the investment products and services of the HSBC Group. UK-based investors in HSBC Global Liquidity Funds are advised that they may not be afforded some of the protections conveyed by the provisions of the Financial Services and Markets Act HSBC Global Liquidity Funds is recognised in the United Kingdom by the Financial Conduct Authority under Section 264 of the Act. Registered office: 8 Canada Square, Canary Wharf, London, E14 5HQ, UK. In the United States by HSBC Global Asset Management (USA) which is regulated by the Securities and Exchange Commission; An investment in a money market fund or portfolio is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds and portfolios may seek to preserve the value of your investment at USD1.00 per share, it is possible to lose money by investing in these funds and portfolios. Any decision to invest must be made after carefully reviewing the products relevant offering document along with your personal financial objectives, risk tolerance, and time frame. Your financial professional can help review your unique situation prior to making any investment decision. There are important differences in how the strategy is carried out in each investment vehicle. Investors should carefully consider the investment objectives, risks and fees of the strategy carefully before investing. This information can be found within the strategy s offering document. Any given fund or separately managed account may not achieve its investment objective. This material does not constitute an offering of any security, product or service, including any Fund named herein. The information herein is qualified in its entirety by the information contained in the Fund Offering Memorandum. Shares of the Fund may not be offered or sold in the United States of America, including its territories and possessions ( United States or US ), or, directly or indirectly, to or for the benefit of a US Person, except in a transaction exempt from the registration requirement of the Securities Act of 1933, as amended. Investment products are offered by HSBC Securities (USA) Inc. (HSI), member NYSE/FINRA/SIPC. HSI is an affiliate of HSBC Bank USA, N.A. Investment products: u`àre not a Bank deposit or other obligation of the Bank or any of its affiliates u`àre not FDIC insured u`àre not insured by any Federal Government Agency of the United States u`àre not guaranteed by the Bank or any of its affiliates and u`àre subject to investment risk, including possible loss of principal invested 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 Limited All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Global Asset Management Limited. I For Professional Clients. FP Ex 27/07/2017 For more information on our capabilities go to