HSBC ETFs PLC. Interim Report and Unaudited Financial Statements For the period from 1 January 2016 to 30 June 2016

Transcription

1 HSBC ETFs PLC Interim Report and Unaudited Financial Statements For the period from 1 January 2016 to 30 June 2016

2 Contents Management and Administration... 3 General Information... 4 Investment Manager s Report Schedules of Investments HSBC FTSE 100 UCITS ETF HSBC EURO STOXX 50 UCITS ETF HSBC MSCI JAPAN UCITS ETF HSBC FTSE 250 UCITS ETF HSBC S&P 500 UCITS ETF HSBC MSCI EUROPE UCITS ETF HSBC MSCI USA UCITS ETF HSBC MSCI BRAZIL UCITS ETF HSBC MSCI PACIFIC ex JAPAN UCITS ETF HSBC MSCI EM FAR EAST UCITS ETF HSBC MSCI TURKEY UCITS ETF HSBC MSCI WORLD UCITS ETF HSBC S&P BRIC 40 UCITS ETF HSBC MSCI CHINA UCITS ETF HSBC MSCI SOUTH AFRICA UCITS ETF HSBC MSCI CANADA UCITS ETF HSBC MSCI MEXICO CAPPED UCITS ETF HSBC MSCI EM LATIN AMERICA UCITS ETF HSBC MSCI INDONESIA UCITS ETF HSBC MSCI MALAYSIA UCITS ETF HSBC MSCI TAIWAN UCITS ETF HSBC MSCI KOREA UCITS ETF HSBC FTSE EPRA/NAREIT DEVELOPED UCITS ETF HSBC MSCI RUSSIA CAPPED UCITS ETF HSBC MSCI EMERGING MARKETS UCITS ETF HSBC MSCI AC FAR EAST ex JAPAN UCITS ETF HSBC ESI WORLDWIDE EQUITY UCITS ETF HSBC WORLDWIDE EQUITY UCITS ETF Balance Sheet Income Statement Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares Cash Flow Statement Notes to the Financial Statements HSBC ETFs PLC >1<

3 Contents (continued) Schedules of Changes in Investments HSBC FTSE 100 UCITS ETF HSBC EURO STOXX 50 UCITS ETF HSBC MSCI JAPAN UCITS ETF HSBC FTSE 250 UCITS ETF HSBC S&P 500 UCITS ETF HSBC MSCI EUROPE UCITS ETF HSBC MSCI USA UCITS ETF HSBC MSCI BRAZIL UCITS ETF HSBC MSCI PACIFIC ex JAPAN UCITS ETF HSBC MSCI EM FAR EAST UCITS ETF HSBC MSCI TURKEY UCITS ETF HSBC MSCI WORLD UCITS ETF HSBC S&P BRIC 40 UCITS ETF HSBC MSCI CHINA UCITS ETF HSBC MSCI SOUTH AFRICA UCITS ETF HSBC MSCI CANADA UCITS ETF HSBC MSCI MEXICO CAPPED UCITS ETF HSBC MSCI EM LATIN AMERICA UCITS ETF HSBC MSCI INDONESIA UCITS ETF HSBC MSCI MALAYSIA UCITS ETF HSBC MSCI TAIWAN UCITS ETF HSBC MSCI KOREA UCITS ETF HSBC FTSE EPRA/NAREIT DEVELOPED UCITS ETF HSBC MSCI RUSSIA CAPPED UCITS ETF HSBC MSCI EMERGING MARKETS UCITS ETF HSBC MSCI AC FAR EAST ex JAPAN UCITS ETF HSBC ESI WORLDWIDE EQUITY UCITS ETF HSBC WORLDWIDE EQUITY UCITS ETF >2< HSBC ETFs PLC

4 Management and Administration Directors Paying Agent Austria Eimear Cowhey* (Irish) (Chairperson) Erste Bank der Oesterreichischen Sparkassen AG Peter Blessing* (Irish) Graben 21, 1010 Wien Melissa McDonald** (British) Österreich *Independent Non-Executive Directors and members of the Audit Committee. Company Secretary **Non-Executive Director Goodbody Secretarial Limited 25/28 North Wall Quay Depositary IFSC HSBC Institutional Trust Services (Ireland) Limited Dublin 1 1 Grand Canal Square Ireland Grand Canal Harbour Dublin 2 Registered Office Ireland (Registration number: ) 25/28 North Wall Quay Registrar and Transfer Agent (Secondary Market) IFSC Dublin 1 Computershare Investor Services (Ireland) Limited Ireland Heron House Corrig Road Administrator Sandyford Industrial Estate HSBC Securities Services (Ireland) Limited Dublin 18 1 Grand Canal Square Ireland Grand Canal Harbour Dublin 2 Legal Advisers (As to Irish Law) (from 24 June 2016) Ireland Arthur Cox Earlsfort Centre Registrar and Transfer Agent Earlsfort Terrace (Primary Market) Dublin 2 HSBC Securities Services (Ireland) Limited Ireland 1 Grand Canal Square Grand Canal Harbour Legal Advisers (As to Irish Law) (up to 24 June 2016) Dublin 2 Matheson Ireland 70 Sir John Rogerson s Quay Dublin 2 Independent Auditors Ireland KPMG 1 Harbourmaster Place Promoter, Distributor, UK Representative IFSC and Investment Manager Dublin 1 HSBC Global Asset Management (UK) Limited Ireland 8 Canada Square London E14 5HQ Sponsor United Kingdom J&E Davy Davy House Swiss Representative 49 Dawson Street HSBC Global Asset Management Dublin 2 (Switzerland) Limited Ireland Bederstrasse 49 CH-8002 Zurich Paying Agent Sweden Switzerland Skandinaviska Enskilda Banken AB through its entity Custody Services Paying Agent Germany SEB Merchant Banking Custody Services HSBC Trinkaus & Burkhardt AG Global Funds Königsallee 21/23 RB Düsseldorf Rissneleden 110 Germany SE Stockholm Sweden Paying Agent Switzerland HSBC Private Bank (Suisse) SA Paying Agent France Quai des Bergues 9-17 CACEIS Bank P.O. Box /3 Place Valhubert CH Geneva, Paris Switzerland France HSBC ETFs PLC >3<

5 General Information HSBC ETFs PLC (the Company ) is an open-ended investment company with variable capital which was incorporated in Ireland on 27 February 2009 with registration number and authorised by the Central Bank of Ireland (the Central Bank ) as an Undertaking for Collective Investment in Transferable Securities ( UCITS ) pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011, as amended (the UCITS Regulations ) The object of the Company is the collective investment in transferable securities and/or other liquid financial assets of capital raised from the public, operating on the principle of risk spreading in accordance with the UCITS Regulations. The Company is structured as an umbrella fund with segregated liability between sub-funds and comprises separate sub-funds (each a sub-fund and together the Sub-Funds ), in that the Directors may from time to time, with the prior approval of the Central Bank of Ireland, issue different series of shares representing separate portfolios of assets. The assets of each Sub-Fund will be invested in accordance with the investment objective and policies applicable to such Sub-Fund as disclosed in the prospectus of the Company (the "Prospectus") and the relevant Sub-Fund supplement (the "Supplement). The Company currently consists of 27 Funds. The Company had no employees as at 30 June For the Sub-Funds named hereafter, no notification for distribution has been made so no units of these Sub-Funds may be publicly distributed to investors within the scope of German Investment Act. >4< HSBC ETFs PLC

6 General Information (continued) Stock Exchange Listing The details of the various stock exchange listings for each of the Sub-Funds are listed below. Sub-Funds Primary Listing Secondary Listing HSBC FTSE 100 UCITS ETF London Stock Exchange NYSE Euronext Paris, Deutsche Börse and SIX Swiss HSBC EURO STOXX 50 UCITS ETF London Stock Exchange NYSE Euronext Paris, Deutsche Börse and SIX Swiss HSBC MSCI JAPAN UCITS ETF London Stock Exchange NYSE Euronext Paris, Deutsche Börse and SIX Swiss HSBC FTSE 250 UCITS ETF London Stock Exchange None HSBC S&P 500 UCITS ETF London Stock Exchange NYSE Euronext Paris, Deutsche Börse and SIX Swiss HSBC MSCI EUROPE UCITS ETF London Stock Exchange NYSE Euronext Paris, Deutsche Börse and SIX Swiss HSBC MSCI USA UCITS ETF London Stock Exchange NYSE Euronext Paris, Deutsche Börse and SIX Swiss HSBC MSCI BRAZIL UCITS ETF London Stock Exchange NYSE Euronext Paris, Deutsche Börse and SIX Swiss HSBC MSCI PACIFIC ex JAPAN UCITS ETF London Stock Exchange NYSE Euronext Paris, Deutsche Börse and SIX Swiss HSBC MSCI EM FAR EAST UCITS ETF London Stock Exchange NYSE Euronext Paris, Deutsche Börse and SIX Swiss HSBC MSCI TURKEY UCITS ETF London Stock Exchange NYSE Euronext Paris, SIX Swiss and Deutsche Börse HSBC MSCI WORLD UCITS ETF London Stock Exchange NYSE Euronext Paris, SIX Swiss and Deutsche Börse HSBC S&P BRIC 40 UCITS ETF* London Stock Exchange NYSE Euronext Paris, SIX Swiss and Deutsche Börse HSBC MSCI CHINA UCITS ETF London Stock Exchange NYSE Euronext Paris, SIX Swiss and Deutsche Börse HSBC MSCI SOUTH AFRICA UCITS ETF London Stock Exchange NYSE Euronext Paris, SIX Swiss and Deutsche Börse HSBC MSCI CANADA UCITS ETF London Stock Exchange NYSE Euronext Paris, SIX Swiss and Deutsche Börse HSBC MSCI MEXICO CAPPED UCITS ETF London Stock Exchange SIX Swiss and Deutsche Börse HSBC MSCI EM LATIN AMERICA UCITS ETF London Stock Exchange NYSE Euronext Paris, SIX Swiss and Deutsche Börse HSBC MSCI INDONESIA UCITS ETF London Stock Exchange SIX Swiss and Deutsche Börse HSBC MSCI MALAYSIA UCITS ETF London Stock Exchange SIX Swiss and Deutsche Börse HSBC MSCI TAIWAN UCITS ETF London Stock Exchange SIX Swiss and Deutsche Börse HSBC MSCI KOREA UCITS ETF London Stock Exchange SIX Swiss and Deutsche Börse HSBC FTSE EPRA/NAREIT DEVELOPED London Stock Exchange Deutsche Börse UCITS ETF HSBC MSCI RUSSIA CAPPED UCITS ETF London Stock Exchange SIX Swiss and Deutsche Börse HSBC MSCI EMERGING MARKETS London Stock Exchange SIX Swiss and Deutsche Börse UCITS ETF HSBC MSCI AC FAR EAST ex JAPAN UCITS London Stock Exchange SIX Swiss and Deutsche Börse ETF HSBC ESI WORLDWIDE EQUITY UCITS ETF London Stock Exchange None HSBC WORLDWIDE EQUITY UCITS ETF London Stock Exchange None * The Sub-Fund was fully redeemed on 27 April HSBC ETFs PLC >5<

7 General Information (continued) Total Expense Ratio The Total Expense Ratio ( TER ) for each Sub-Fund for the period from 1 January 2016 to 30 June 2016 is as follows: Sub-Funds 30 June December 2015 HSBC FTSE 100 UCITS ETF 0.07% 0.35% HSBC EURO STOXX 50 UCITS ETF 0.05% 0.15% HSBC MSCI JAPAN UCITS ETF 0.19% 0.40% HSBC FTSE 250 UCITS ETF 0.35% 0.35% HSBC S&P 500 UCITS ETF 0.09% 0.09% HSBC MSCI EUROPE UCITS ETF 0.20% 0.30% HSBC MSCI USA UCITS ETF 0.30% 0.30% HSBC MSCI BRAZIL UCITS ETF 0.60% 0.60% HSBC MSCI PACIFIC ex JAPAN UCITS ETF 0.40% 0.40% HSBC MSCI EM FAR EAST UCITS ETF 0.60% 0.60% HSBC MSCI TURKEY UCITS ETF 0.60% 0.60% HSBC MSCI WORLD UCITS ETF 0.15% 0.35% HSBC S&P BRIC 40 UCITS ETF* % HSBC MSCI CHINA UCITS ETF 0.60% 0.60% HSBC MSCI SOUTH AFRICA UCITS ETF 0.60% 0.60% HSBC MSCI CANADA UCITS ETF 0.35% 0.35% HSBC MSCI MEXICO CAPPED UCITS ETF 0.60% 0.60% HSBC MSCI EM LATIN AMERICA UCITS ETF 0.60% 0.60% HSBC MSCI INDONESIA UCITS ETF 0.60% 0.60% HSBC MSCI MALAYSIA UCITS ETF 0.60% 0.60% HSBC MSCI TAIWAN UCITS ETF 0.60% 0.60% HSBC MSCI KOREA UCITS ETF 0.60% 0.60% HSBC FTSE EPRA/NAREIT DEVELOPED UCITS ETF 0.40% 0.40% HSBC MSCI RUSSIA CAPPED UCITS ETF 0.60% 0.60% HSBC MSCI EMERGING MARKETS UCITS ETF 0.40% 0.60% HSBC MSCI AC FAR EAST ex JAPAN UCITS ETF 0.60% 0.60% HSBC ESI WORLDWIDE EQUITY UCITS ETF 0.25% 0.25% HSBC WORLDWIDE EQUITY UCITS ETF 0.25% 0.25% * The Sub-Fund was fully redeemed on 27 April >6< HSBC ETFs PLC

8 General Information (continued) Portfolio Turnover Rate* The Portfolio Turnover Rate ( PTR )* for each Sub-Fund for the period from 1 January 2016 to 30 June 2016 is as follows: Sub-Funds 30 June December 2015 HSBC FTSE 100 UCITS ETF 7.31% 9.40% HSBC EURO STOXX 50 UCITS ETF 4.66% 11.63% HSBC MSCI JAPAN UCITS ETF 4.73% 5.05% HSBC FTSE 250 UCITS ETF 33.97% 31.58% HSBC S&P 500 UCITS ETF 8.94% 6.71% HSBC MSCI EUROPE UCITS ETF 5.34% 7.91% HSBC MSCI USA UCITS ETF 6.17% 7.22% HSBC MSCI BRAZIL UCITS ETF (38.68%) 12.18% HSBC MSCI PACIFIC ex JAPAN UCITS ETF 6.23% 8.96% HSBC MSCI EM FAR EAST UCITS ETF 9.89% 14.01% HSBC MSCI TURKEY UCITS ETF 4.66% 8.29% HSBC MSCI WORLD UCITS ETF 10.31% 9.66% HSBC S&P BRIC 40 UCITS ETF** % HSBC MSCI CHINA UCITS ETF 37.04% 37.71% HSBC MSCI SOUTH AFRICA UCITS ETF 14.44% 44.24% HSBC MSCI CANADA UCITS ETF 4.76% 9.16% HSBC MSCI MEXICO CAPPED UCITS ETF 2.35% 9.09% HSBC MSCI EM LATIN AMERICA UCITS ETF 3.14% 9.02% HSBC MSCI INDONESIA UCITS ETF 1.71% 5.06% HSBC MSCI MALAYSIA UCITS ETF 15.39% 46.09% HSBC MSCI TAIWAN UCITS ETF 5.56% 9.66% HSBC MSCI KOREA UCITS ETF 7.03% 11.90% HSBC FTSE EPRA/NAREIT DEVELOPED UCITS ETF 7.97% 19.45% HSBC MSCI RUSSIA CAPPED UCITS ETF 7.87% 13.55% HSBC MSCI EMERGING MARKETS UCITS ETF 16.21% 38.23% HSBC MSCI AC FAR EAST ex JAPAN UCITS ETF 11.03% 14.40% HSBC ESI WORLDWIDE EQUITY UCITS ETF 22.93% 38.59% HSBC WORLDWIDE EQUITY UCITS ETF 68.68% 7.89% * PTR calculation includes equalisation. ** The Sub-Fund was fully redeemed on 27 April HSBC ETFs PLC >7<

9 General Information (continued) Sub-Fund Performance Data The percentage total return of one share of each Sub-Fund, as calculated in accordance with the Swiss Funds Association guidelines is as follows: Period ended Year ended 30 June December 2015 Sub-Funds Benchmark Fund Benchmark Fund Benchmark HSBC FTSE 100 UCITS ETF FTSE 100 Index 6.58% 6.62% (1.36%) (1.32%) HSBC EURO STOXX 50 UCITS ETF EURO STOXX 50 Index (10.36%) (10.77%) 7.99% 7.44% HSBC MSCI JAPAN UCITS ETF MSCI Japan Index (5.33%) (5.36%) 8.85% 8.84% HSBC FTSE 250 UCITS ETF FTSE 250 Index (5.34%) (5.23%) 11.05% 11.17% HSBC S&P 500 UCITS ETF S&P 500 Index 3.61% 3.49% 0.99% 0.75% HSBC MSCI EUROPE UCITS ETF MSCI Europe Index (7.52%) (7.73%) 9.54% 9.27% HSBC MSCI USA UCITS ETF MSCI USA Index 3.34% 3.24% 0.92% 0.69% HSBC MSCI BRAZIL UCITS ETF MSCI Brazil Index 48.03% 48.08% (42.05%) (41.93%) HSBC MSCI PACIFIC ex JAPAN UCITS ETF MSCI Pacific ex Japan Index 2.48% 2.47% (8.47%) (8.47%) HSBC MSCI EM FAR EAST UCITS ETF MSCI EM Far East Index 2.83% 2.64% (10.15%) (10.08%) HSBC MSCI TURKEY UCITS ETF MSCI Turkey Index 11.96% 11.98% (31.85%) (31.87%) HSBC MSCI WORLD UCITS ETF MSCI World Index 0.72% 0.66% (1.45%) (0.87%) HSBC S&P BRIC 40 UCITS ETF* S&P BRIC 40 Index - - (11.91%) (11.86%) HSBC MSCI CHINA UCITS ETF MSCI China Index (4.53%) (4.69%) (8.06%) (7.82%) HSBC MSCI SOUTH AFRICA UCITS ETF MSCI South Africa Index 15.68% 15.64% (25.34%) (25.45%) HSBC MSCI CANADA UCITS ETF MSCI Canada Index 15.00% 15.06% (24.19%) (24.16%) HSBC MSCI MEXICO CAPPED UCITS ETF MSCI Mexico Capped Index 0.92% 0.88% (14.33%) (14.41%) HSBC MSCI EM LATIN AMERICA UCITS ETF MSCI EM Latin America Index 26.36% 26.28% (31.28%) (31.32%) HSBC MSCI INDONESIA UCITS ETF MSCI Indonesia Index 15.78% 15.77% (19.05%) (19.05%) HSBC MSCI MALAYSIA UCITS ETF MSCI Malaysia Index 6.52% 6.53% (20.06%) (20.06%) HSBC MSCI TAIWAN UCITS ETF MSCI Taiwan Index 8.43% 8.48% (11.79%) (11.72%) HSBC MSCI KOREA UCITS ETF MSCI Korea Index 3.85% 3.83% (6.66%) (6.66%) HSBC FTSE EPRA/NAREIT DEVELOPED FTSE EPRA/NAREIT UCITS ETF Developed Index 9.10% 8.87% (0.43%) (0.79%) HSBC MSCI RUSSIA CAPPED UCITS ETF MSCI Russia Capped Index 20.59% 20.81% 3.82% 3.89% HSBC MSCI EMERGING MARKETS UCITS ETF MSCI Emerging Markets Index 6.69% 6.77% (15.03%) (15.05%) HSBC MSCI AC FAR EAST ex JAPAN UCITS ETF MSCI AC Far East ex Japan Index 2.11% 2.29% (9.34%) (9.32%) HSBC ESI WORLDWIDE EQUITY UCITS HSBC Economic Scale Index ETF Worldwide 2.60% 2.44% (6.96%) (7.14%) HSBC WORLDWIDE EQUITY UCITS ETF HSBC Worldwide Index 1.38% 1.25% (2.35%) (2.59%) * The Sub-Fund was fully redeemed on 27 April >8< HSBC ETFs PLC

10 General Information (continued) Sub-Fund Performance Data (continued) Past performance is not an indication of current or future performance and the performance data does not take account of commissions and costs incurred on the creation and redemption of shares. The Prospectus, Sub-Fund Supplements, key investor information documents in respect of the Sub- Funds, articles of association of the Company, annual and semi-annual reports of the Company, as well as a list of the purchases and sales on the account of the Sub-Funds can be obtained free of charge by Swiss investors from the representative of the Company in Switzerland, HSBC Global Asset Management (Switzerland) Limited, Bederstrasse 49, CH-8002 Zurich, Switzerland. Plan d'epargne en Actions ("PEA") Eligibility For the purpose of eligibility requirements of Article L of the French Monetary and Financial Code, the relevant Sub-Funds must at all times during the period ended 30 June 2016 and as at 31 December 2015 be invested in more than 75% of PEA eligible assets. PEA eligible assets are defined as equity or equity equivalent securities, which have their registered office in a country which is a member of the EU or the European Economic Area., the following Sub-Funds satisfy the criterion for PEA Eligibility: % PEA Eligible Assets Sub-Funds 30 June December 2015 HSBC FTSE 100 UCITS ETF 100% 100% HSBC EURO STOXX 50 UCITS ETF 100% 100% HSBC FTSE 250 UCITS ETF 100% 100% HSBC MSCI EUROPE UCITS ETF 85.49% 85.43% All share classes of the Sub-Funds in issue at 30 June 2016 have UK Reporting Fund status, either from 1 January 2010 or the launch of the relevant share class concerned. As and when new Sub-Funds are launched, UK Reporting Fund applications will be made to HM Revenue & Customs accordingly. Details of the distributing share classes that have UK Reporting Fund status can be found on the HM Revenue & Customs ( HMRC ) website at At the date of these financial statements the precise location of this HMRC report is: The Company will make available to shareholders the reportable income information for the period ended 30 June 2016 that they require for their UK tax returns at by 30 June If investors do not have access to the internet they can apply in writing for a copy of this information to HSBC ETFs PLC, 25/28 North Wall Quay, IFSC, Dublin 1, Ireland. HSBC ETFs PLC >9<

11 Investment Manager s Report Market Context Markets got off to a volatile start with continued concerns about China s outlook and the health of the global economy weighing on sentiment at the start of This caused a steep drop in global risk assets during the first few weeks of the year with safe haven government bonds and gold benefitting from the risk off environment. The moves strongly tracked oil prices and the Chinese yuan as investors weighed the odds of a global recession The tone reversed sharply mid quarter amid the steady US economy and easier global monetary policy including the Federal Reserve softening its rate hiking stance. The worst performers of 2015 emerging markets and commodities suffered further losses in the first few weeks of 2016 before rebounding to finish the first quarter with gains. Major government bond markets, especially the long end of the curve, have given a strong performance year to date with 30 year US treasuries up strongly for example against a backdrop of monetary easing. What may be surprising is how dovish the market continues to be given the bounce back in risk assets. As mentioned emerging market assets have performed strongly in 2016 YTD after a long period of underperformance. The outperformance is impressive given the backdrop of concerns over global growth and concerns over China. It seems the market was able to rally on only slightly better than expected news. >10< HSBC ETFs PLC

12 Investment Manager s Report (continued) HSBC ETFs PLC Performance to 30 June 2016 ETFS Performance 1 Jan- 30 June 2016 Fund Performance (Gross) Performance 1 Jan- 30 June 2016 Fund Benchmark Performance Sub-Fund vs Benchmark Sub-Fund vs Benchmark (Since inception) Tracking Error (Gross) Developed Countries HSBC FTSE 100 UCITS ETF 6.58% 6.62% (0.03%) (0.32%) 0.04% HSBC EURO STOXX 50 UCITS ETF (10.36%) (10.77%) 0.41% 6.06% 0.14% HSBC MSCI JAPAN UCITS ETF (5.33%) (5.36%) 0.03% 0.00% 0.09% HSBC FTSE 250 UCITS ETF (5.34%) (5.23%) (0.10%) (1.48%) 0.09% HSBC S&P 500 UCITS ETF 3.61% 3.49% 0.12% 3.72% 0.04% HSBC MSCI EUROPE UCITS ETF (7.52%) (7.73%) 0.21% 3.30% 0.10% HSBC MSCI USA UCITS ETF 3.34% 3.24% 0.11% 3.85% 0.05% HSBC MSCI PACIFIC EX JAPAN UCITS ETF 2.48% 2.47% 0.01% 0.00% 0.08% HSBC MSCI WORLD UCITS ETF 0.72% 0.66% 0.07% 0.53% 0.38% HSBC MSCI CANADA UCITS ETF 15.00% 15.06% (0.06%) 0.51% 0.08% HSBC FTSE EPRA/NAREIT DEVELOPED UCITS ETF 9.10% 8.87% 0.23% 2.14% 0.11% Emerging Countries HSBC MSCI BRAZIL UCITS ETF 48.03% 48.08% (0.04%) (0.26%) 0.12% HSBC MSCI EM FAR EAST UCITS ETF 2.83% 2.64% 0.19% 0.66% 0.44% HSBC MSCI TURKEY UCITS ETF 11.96% 11.98% (0.01%) 0.10% 0.13% HSBC MSCI CHINA UCITS ETF (4.53%) (4.69%) 0.16% 0.61% 0.59% HSBC S&P BRIC 40 UCITS ETF* HSBC MSCI SOUTH AFRICA UCITS ETF 15.68% 15.64% 0.04% 0.77% 0.16% HSBC MSCI MEXICO CAPPED UCITS ETF 0.92% 0.88% 0.04% 0.38% 0.08% HSBC MSCI EM LATIN AMERICA UCITS ETF 26.36% 26.28% 0.08% 0.06% 0.22% HSBC MSCI INDONESIA UCITS ETF 15.78% 15.77% 0.01% 0.16% 0.07% HSBC MSCI MALAYSIA UCITS ETF 6.52% 6.53% (0.01%) 0.10% 0.09% HSBC MSCI TAIWAN UCITS ETF 8.43% 8.48% (0.05%) (0.13%) 0.08% HSBC MSCI KOREA UCITS ETF 3.85% 3.83% 0.02% (0.51%) 0.54% HSBC MSCI RUSSIA CAPPED UCITS ETF 20.59% 20.81% (0.22%) (0.31%) 0.29% HSBC MSCI EMERGING MARKETS UCITS ETF 6.69% 6.77% (0.08%) 1.06% 0.68% HSBC MSCI AC FAR EAST EX JAPAN UCITS ETF 2.11% 2.29% (0.18%) (0.19%) 0.40% Developed and Emerging Countries HSBC ESI WORLDWIDE EQUITY UCITS ETF 2.60% 2.44% 0.16% 0.42% 0.21% HSBC WORLDWIDE EQUITY UCITS ETF 1.38% 1.25% 0.14% 0.68% 0.25% *The Sub-Fund was fully redeemed on 27 April HSBC ETFs PLC >11<

13 Investment Manager s Report (continued) HSBC ETFs PLC Performance to 30 June 2016 ETFS NAV (30/06/2016) FUND CCY NAV (31/12/2015) FUND CCY NAV Variation HSBC FTSE 100 UCITS ETF GBP 155,098,372 GBP 154,397, ,888 HSBC EURO STOXX 50 UCITS ETF EUR 103,282,574 EUR 118,481,793 (15,199,219) HSBC MSCI JAPAN UCITS ETF 147,433, ,671,595 (45,238,109) HSBC FTSE 250 UCITS ETF GBP 41,826,519 GBP 45,047,146 (3,220,627) HSBC S&P 500 UCITS ETF 2,021,539,948 1,917,585, ,954,291 HSBC MSCI EUROPE UCITS ETF EUR 201,933,253 EUR 231,503,112 (29,569,859) HSBC MSCI USA UCITS ETF 254,324, ,896,804 (87,572,141) HSBC MSCI BRAZIL UCITS ETF 10,851,550 6,120,278 4,731,272 HSBC MSCI PACIFIC ex JAPAN UCITS ETF 43,869,971 92,083,349 (48,213,378) HSBC MSCI EM FAR EAST UCITS ETF 26,974,417 26,646, ,423 HSBC MSCI TURKEY UCITS ETF 6,203,011 6,598,773 (395,762) HSBC MSCI WORLD UCITS ETF 173,062, ,380,825 (82,318,699) HSBC S&P BRIC 40 UCITS ETF* - 4,041,007 (4,041,007) HSBC MSCI CHINA UCITS ETF 124,674, ,693,662 (43,018,889) HSBC MSCI SOUTH AFRICA UCITS ETF 4,520,013 5,950,180 (1,430,167) HSBC MSCI CANADA UCITS ETF 35,577,977 39,217,208 (3,639,231) HSBC MSCI MEXICO CAPPED UCITS ETF 11,030,989 11,076,801 (45,812) HSBC MSCI EM LATIN AMERICA UCITS ETF 11,361,636 12,841,410 (1,479,774) HSBC MSCI INDONESIA UCITS ETF 26,778,013 20,253,404 6,524,609 HSBC MSCI MALAYSIA UCITS ETF 6,880,308 4,493,196 2,387,112 HSBC MSCI TAIWAN UCITS ETF 8,567,138 8,108, ,767 HSBC MSCI KOREA UCITS ETF 7,742,487 7,489, ,949 HSBC FTSE EPRA/NAREIT DEVELOPED UCITS ETF 212,642, ,461,603 60,180,495 HSBC MSCI RUSSIA CAPPED UCITS ETF 47,942,462 44,622,292 3,320,170 HSBC MSCI EMERGING MARKETS UCITS ETF 271,528, ,551,164 47,977,765 HSBC MSCI AC FAR EAST ex JAPAN UCITS ETF 150,244, ,117,235 22,126,942 HSBC ESI WORLDWIDE EQUITY UCITS ETF 813,974, ,930,180 16,043,870 HSBC WORLDWIDE EQUITY UCITS ETF 270,631, ,703, ,809 *The Sub-Fund was fully redeemed on 27 April >12< HSBC ETFs PLC

14 Investment Manager s Report (continued) HSBC ETF Performance to 30 June 2016 Net YTD ISIN Code Performance Attribution (explanation where gross tracking difference Gross is greater than 0.03) HSBC FTSE 100 UCITS ETF IE00B42TW061 FTSE Differential (Tracking Difference) (0.13) (0.03) HSBC Euro Stoxx 50 UCITS ETF (10.40) (10.36) IE00B4K6B022 The outperformance is mainly explained by wins on withholding tax vs Index in countries such as France, Spain & Germany. DJ Euro Stoxx 50 (10.77) (10.77) Differential (Tracking Difference) HSBC MSCI Japan UCITS ETF (5.46) (5.33) IE00B5VX7566 MSCI Japan (5.36) (5.36) Differential (Tracking Difference) (0.10) 0.03 HSBC FTSE 250 UCITS ETF (5.50) (5.34) IE00B64PTF05 The two-way turn over of the index YTD is 43.9%. The rebalancing cost (Stamp duty) accounts for the difference FTSE 250 (5.23) (5.23) Differential (Tracking Difference) (0.27) (0.10) HSBC S&P 500 UCITS ETF IE00B5KQNG97 The outperformance is mainly explained by wins on withholding tax vs Index. S&P Differential (Tracking Difference) HSBC MSCI EUROPE UCITS ETF (7.63) (7.52) IE00B5BD5K76 The outperformance is mainly explained by wins on withholding tax vs Index in countries such as France, Spain & Germany. MSCI Europe (7.73) (7.73) Differential (Tracking Difference) HSBC MSCI USA UCITS ETF IE00B5WFQ436 The outperformance is mainly explained by wins on withholding tax vs Index. MSCI USA Differential (Tracking Difference) (0.05) 0.11 HSBC MSCI BRAZIL UCITS ETF IE00B5W34K94 In April, we had exposure to BRL during a time when the exchange rate fell, causing underperformance. MSCI BRAZIL Differential (Tracking Difference) (0.49) (0.04) *The Sub-Fund was fully redeemed on 27 April HSBC ETFs PLC >13<

15 Investment Manager s Report (continued) HSBC ETF Performance to 30 June 2016 YTD ISIN Code Performance Attribution Net Gross (explanation where gross tracking difference is greater than 0.03) HSBC MSCI PACIFIC EX JAPAN UCITS ETF IE00B5SG8Z57 MSCI PACIFIC Differential (Tracking Difference) (0.20) 0.01 HSBC MSCI EM FAR EAST UCITS ETF IE00B5LP3W10 The primary factor contributing to the outperformance of 0.19% was the optimisation effect. MSCI EM FAR EAST Differential (Tracking Difference) (0.12) 0.19 HSBC MSCI TURKEY UCITS ETF IE00B5BRQB73 MSCI TURKEY Differential (Tracking Difference) (0.35) (0.01) HSBC MSCI WORLD UCITS ETF IE00B4X9L533 The primary factor contributing to the outperformance of 0.07% was the optimisation effect. MSCI WORLD Differential (Tracking Difference) (0.05) 0.07 HSBC MSCI CHINA UCITS ETF (4.81) (4.53) IE00B44T3H88 The outperformance of 16bps is due to the resumption of trading in Sihuan Pharma which had been suspended and was no longer an index constituent MSCI CHINA (4.69) (4.69) Differential (Tracking Difference) (0.12) 0.16 HSBC S&P BRIC 40 UCITS ETF* - - S&P BRIC Differential (Tracking Difference) - - HSBC MSCI SOUTH AFRICA UCITS ETF IE00B57S5Q22 The outperformance of 0.04% is mainly due to the withholding tax treaty for South African dividends (the Index applies tax of 15% but the fund pays 10%). MSCI SOUTH AFRICA This is offset by the impact from the performance calculation methodology Differential (Tracking Difference) (0.31) 0.04 around dividend distributions. HSBC MSCI CANADA UCITS UCITS ETF IE00B51B7Z02 Difference is caused by the performance team's calculation methodology. They assume the dividend is invested at the end of ex date and therefore experiences a day of cash drag. MSCI CANADA Differential (Tracking Difference) (0.26) (0.06) HSBC MSCI MEXICO CAPPED UCITS ETF IE00B3QMYK80 The outperformance of 0.04% is mainly explained by wins on withholding tax vs Index MSCI MEXICO Differential (Tracking Difference) (0.27) 0.04 *The Sub-Fund was fully redeemed on 27 April >14< HSBC ETFs PLC

16 Investment Manager s Report (continued) HSBC ETF Performance to 30 June 2016 YTD ISIN Code Performance Attribution Net Gross (explanation where gross tracking difference is greater than 0.03) HSBC MSCI EM LATIN AMERICA UCITS ETF IE00B4TS3815 The outperformance of 0.08% is mainly explained by wins on withholding tax vs the Index. MSCI EM LATIN AMERICA Differential (Tracking Difference) (0.30) 0.08 HSBC MSCI INDONESIA UCITS ETF IE00B46G8275 MSCI INDONESIA Differential (Tracking Difference) (0.34) 0.01 HSBC MSCI MALAYSIA UCITS ETF IE00B3X3R831 MSCI MALAYSIA Differential (Tracking Difference) (0.33) (0.01) HSBC MSCI TAIWAN UCITS ETF IE00B3S1J086 Cash drag explains most of the 5bps underperformances MSCI TAIWAN Differential (Tracking Difference) (0.38) (0.05) HSBC MSCI KOREA UCITS ETF IE00B3Z0X395 MSCI KOREA Differential (Tracking Difference) (0.29) 0.02 HSBC FTSE EPRA NAREIT DEVELOPED UCITS ETF IE00B5L01S80 Index applies higher withholding tax rates for USA FTSE EPRA NAREIT DEVELOPED Differential (Tracking Difference) HSBC MSCI RUSSIA CAPPED UCITS ETF IE00B5LJZQ16 The underperformance of 0.22% is mainly explained by the impact from the performance calculation methodology around dividend distributions. MSCI RUSSIA CAPPED Differential (Tracking Difference) (0.58) (0.22) HSBC MSCI EMERGING MARKETS UCITS ETF IE00B5SSQT16 The primary factor contributing to the outperformance of 0.08% was the optimisation effect. MSCI EMERGING MARKETS Differential (Tracking Difference) (0.34) (0.08) HSBC MSCI AC FAR EAST EX JAPAN UCITS ETF IE00BBQ2W338 The primary factor contributing to the underperformance of -0.18% was the optimisation effect. MSCI AC FAR EAST EX JAPAN Differential (Tracking Difference) (0.49) (0.18) HSBC ETFs PLC >15<

17 Investment Manager s Report (continued) HSBC ETF Performance to 30 June 2016 YTD ISIN Code Performance Attribution Net Gross (explanation where gross tracking difference is greater than 0.03) HSBC ESI WORLDWIDE EQUITY UCITS ETF IE00BKZG9Y92 Index applies higher withholding tax rates for USA, France, Germany and HSBC ECONOMIC SCALE INDEX WORLDWIDE Differential (Tracking Difference) Spain than the fund pays. This combined with the impact of holding futures that do not perfectly track the index caused the out-performance HSBC WORLDWIDE EQUITY UCITS ETF IE00BKZGB098 The primary factors contributing to the outperformance of 0.14% was the optimisation effect and outperformance from gains on withholding tax HSBC WORLDWIDE INDEX Differential (Tracking Difference) >16< HSBC ETFs PLC

18 Investment Manager s Report (continued) Tracking Error Realised tracking error is annualised standard deviation of the difference in monthly returns between a Sub-Fund and its benchmark index. Tracking error shows the consistency of returns relative to the benchmark index over a defined period of time. Anticipated tracking error is based on the expected volatility of differences between the returns of a Sub-Fund and the returns of its benchmark index. For physically replicating Sub-Funds, the investment management approach is to buy a portfolio of securities that as far as practicable consist of the securities that make up the benchmark index, in similar proportion to the weights presented in the benchmark index. For non-replicating Sub-Funds, the investment management approach aims to match the main risk characteristics of the benchmark index by investing in a portfolio that is primarily made up of securities that represent the benchmark index. The objective is to generate a return which is as close as practicable to the total return of the index net of transaction costs and gross of fees and other costs. Cash management, efficient portfolio management techniques including securities lending, transaction costs from rebalancing and currency hedging can have an impact on tracking error as well as the return differential between a Sub-Fund and its benchmark index. Importantly, these impacts can be either positive or negative depending on the underlying circumstances. In addition to the above, the Sub-Funds may also have a tracking error due to withholding tax suffered by the Sub-Funds on any income received from its investments. The level and quantum of tracking error arising due to withholding taxes depends on various factors such as any reclaims filed on behalf of the Sub-Funds with various tax authorities, any benefits obtained by the Sub-Funds under a tax treaty or any securities lending activities carried out by the Sub-Funds. The table below compares the anticipated tracking error of the Sub-Funds against the actual realised tracking error of the Sub-Funds as at 30 June An explanation of the difference is provided. The realised tracking error is annualised and calculated using data from the preceding 36 month observation period. Where a Sub-Fund has not been trading for 36 months, the annualised tracking error since inception has been presented. HSBC ETFs PLC >17<

19 Investment Manager s Report (continued) HSBC ETF Performance to 30 June 2016 HSBC FTSE 100 UCITS ETF FTSE Differential HSBC Euro Stoxx 50 UCITS ETF DJ Euro Stoxx Differential HSBC MSCI Japan UCITS ETF MSCI Japan Differential HSBC FTSE 250 UCITS ETF FTSE Differential HSBC S&P 500 UCITS ETF S&P Differential HSBC MSCI EUROPE UCITS ETF MSCI Europe Differential HSBC MSCI USA UCITS ETF MSCI USA Differential HSBC MSCI BRAZIL UCITS ETF MSCI BRAZIL Differential HSBC MSCI PACIFIC EX JAPAN UCITS ETF MSCI PACIFIC Differential 1 Year Tracking Error ISIN Code Anticipated Realised Tracking Tracking Error Error IE00B42TW061 IE00B4K6B022 IE00B5VX7566 IE00B64PTF05 IE00B5KQNG97 IE00B5BD5K76 IE00B5WFQ436 IE00B5W34K94 IE00B5SG8Z57 Explanation of Divergence (only significant divergence is explained) >18< HSBC ETFs PLC

20 Investment Manager s Report (continued) HSBC ETF Performance to 30 June Year Tracking Error ISIN Code Anticipated Realised Tracking Tracking Error Error Explanation of Divergence (only significant divergence is explained) HSBC MSCI EM FAR EAST UCITS ETF IE00B5LP3W10 Higher tracking error caused by chinese stock suspension in 2015 MSCI EM FAR EAST Differential HSBC MSCI WORLD UCITS ETF MSCI WORLD Differential IE00B4X9L533 HSBC MSCI TURKEY UCITS ETF IE00B5BRQB73 Dividend timing issue. The increased tracking error is due to the index provider reversing a dividend on the 15 June 2016 and reinputting on the 16 June This caused outperformance on MSCI TURKEY Differential the 15 June 2016 and underperformance the following day. HSBC MSCI CHINA UCITS ETF IE00B44T3H88 Higher tracking error caused by chinese stock suspension in MSCI CHINA Differential HSBC S&P BRIC 40 UCITS ETF* S&P BRIC Differential HSBC MSCI SOUTH AFRICA UCITS ETF MSCI SOUTH AFRICA Differential HSBC MSCI CANADA UCITS ETF MSCI CANADA Differential HSBC MSCI MEXICO CAPPED UCITS ETF MSCI MEXICO Differential HSBC MSCI EM LATIN AMERICA UCITS ETF MSCI EM LATIN AMERICA Differential *The Sub-Fund was fully redeemed on 27 April IE00B57S5Q22 IE00B51B7Z02 IE00B3QMYK80 IE00B4TS3815 Higher tracking error is explained by the calculation methodology around dividend distributions and the timing of fund reimbursement of a corporate action error. HSBC ETFs PLC >19<

21 Investment Manager s Report (continued) HSBC ETF Performance to 30 June Year Tracking Error ISIN Code Anticipated Realised Tracking Tracking Error Error HSBC MSCI INDONESIA UCITS ETF IE00B46G8275 MSCI INDONESIA UCITS ETF Explanation of Divergence (only significant divergence is explained) HSBC MSCI MALAYSIA UCITS ETF MSCI MALAYSIA UCITS ETF HSBC MSCI TAIWAN UCITS ETF MSCI TAIWAN UCITS ETF HSBC MSCI KOREA UCITS ETF MSCI KOREA UCITS ETF HSBC FTSE EPRA/NAREIT DEVELOPED UCITS ETF FTSE EPRA/NAREIT DEVELOPED UCITS ETF IE00B3X3R831 IE00B3S1J086 IE00B3Z0X395 IE00B5L01S80 HSBC MSCI RUSSIA CAPPED UCITS ETF IE00B5LJZQ16 Higher tracking error is explained by an imperfectly tracking future and the calculation methodology around dividend MSCI RUSSIA CAPPED UCITS ETF distributions HSBC MSCI EMERGING MARKETS UCITS ETF IE00B5SSQT16 HSBC MSCI AC FAR EAST ex JAPAN UCITS ETF MSCI AC FAR EAST ex JAPAN UCITS ETF IE00BBQ2W338 >20< HSBC ETFs PLC

22 Investment Manager s Report (continued) HSBC ETF Performance to 30 June Year Tracking Error ISIN Code Anticipated Realised Tracking Tracking Error Error HSBC ESI WORLDWIDE EQUITY UCITS ETF IE00BKZG9Y92 HSBC ESI WORLDWIDE Differential HSBC WORLDWIDE EQUITY UCITS ETF HSBC WORLDWIDE Differential IE00BKZGB098 Explanation of Divergence (only significant divergence is explained) HSBC ETFs PLC >21<

23 Schedules of Investments HSBC FTSE 100 UCITS ETF Equities GBP Germany Consumer Services (31 December 2015: 0.35%) 42,842 TUI AG 364, , Ireland Consumer Services (31 December 2015: 1.25%) 7,445 Paddy Power 587, ,778 WPP 1,827, ,415, Healthcare (31 December 2015: 1.71%) 79,768 Shire 3,702, ,702, Industrial (31 December 2015: 2.02%) 75,371 CRH 1,646, ,017 DCC 527, ,223 Experian 1,231, ,406, Jersey Basic Materials (31 December 2015: 0.24%) 8,437 Randgold Resources 709, , Netherlands Oil & Gas (31 December 2015: 6.03%) 722,940 Royal Dutch Shell 14,851, ,851, Switzerland Basic Materials (31 December 2015: 0.65%) 1,059,605 Glencore International 1,619, ,619, Consumer Goods (31 December 2015: 0.18%) 17,750 Coca Cola Hellenic Bottling Company 268, , Industrial (31 December 2015: 0.60%) 22,921 Wolseley 887, , United Kingdom Basic Materials (31 December 2015: 3.55%) 118,747 Anglo American 863, ,253 Antofagasta 150, ,939 BHP Billiton 1,809, ,402 Fresnillo 253, ,588 Johnson Matthey 492, ,384 Mondi 465, ,886 Rio Tinto 2,520, ,555, >22< HSBC ETFs PLC

24 HSBC FTSE 100 UCITS ETF (continued) GBP United Kingdom (continued) Consumer Goods (31 December 2015: 19.23%) 31,669 Associated British Foods 861, ,525 Barratt Developments 366, ,685 Berkeley Group Holdings 294, ,396 British American Tobacco Malaysia 8,203, ,274 Burberry Group 467, ,894 Diageo 4,775, ,789 GKN 420, ,553 Imperial Tobacco Group 3,548, ,804 Persimmon 402, ,141 Reckitt Benckiser Group 4,279, ,883 SABMiller 3,796, ,691 Taylor Wimpey 392, ,639 Unilever 3,923, ,734, Consumer Services (31 December 2015: 9.22%) 95,294 British Sky Broadcasting Group 808, ,588 Carnival ord 549, ,445 Carphone Warehouse 289, ,733 Compass Group 2,129, ,586 Easyjet 245, ,994 Informa 429, ,907 Intercontinental Hotels 492, ,270 International Consolidated Airlines Group 581, ,211 ITV 611, ,383 J Sainsbury 298, ,281 Kingfisher 668, ,326 Marks & Spencer Group 469, ,512 Merlin Entertainments 284, ,145 Next 648, ,666 Pearson 722, ,628 Reed Elsevier 1,370, ,195 TESCO 1,291, ,586 Whitbread 579, ,763 WM Morrison Supermarkets 368, ,837, Financial (31 December 2015: 23.46%) 87,600 3i Group 479, ,193 Admiral Group 369, ,642 Aviva 1,448, ,521,911 Barclays 2,109, ,081 British Land 565, ,220 Capital Shopping Centres 247, ,000 Direct Line Insurance Group 431, ,298 Hammerson 383, ,836 Hargreaves Lansdown 246, ,800,507 HSBC Holdings* 8,388, ,492 Land Securities Group 742, ,612 Legal & General Group 1,029, HSBC ETFs PLC >23<

25 HSBC FTSE 100 UCITS ETF (continued) GBP United Kingdom (continued) Financial (31 December 2015: 23.46%) (continued) 5,816,726 Lloyds Banking Group 3,144, ,356 London Stock Exchange Group 717, ,135 Old Mutual 889, ,288 Provident Financial 305, ,889 Prudential 2,914, ,683 Royal Bank of Scotland 510, ,327 RSA Insurance Group 461, ,273 Schroders 242, ,117 St James's Place 369, ,930 Standard Chartered 1,377, ,751 Standard Life 521, ,000 Worldpay Group 326, ,221, Healthcare (31 December 2015: 8.59%) 35,523 Al Noor Hospitals Group 388, ,682 AstraZeneca 5,122, ,821 GlaxoSmithKline 7,089, ,618 Hikma Pharmaceuticals 311, ,486 Smith & Nephew 1,032, ,944, Industrial (31 December 2015: 4.23%) 45,755 Ashtead Group 486, ,652 Babcock International 412, ,433 BAE Systems 1,506, ,172 Bunzl 694, ,150 Capita 578, ,612 Intertek Group 508, ,378 Rolls-Royce 1,069, ,370,046 Rolls-Royce Holdings ,728 Royal Mail 414, ,634 Smiths Group 410, ,714 Travis Perkins 334, ,417, Oil & Gas (31 December 2015: 6.06%) 1,679,848 BP 7,360, ,360, Technology (31 December 2015: 1.31%) 128,271 ARM Holdings 1,450, ,877 Sage Group 631, ,082, Telecommunications (31 December 2015: 6.38%) 760,469 BT Group 3,117, ,414,278 Vodafone Group 5,496, ,614, Utilities (31 December 2015: 4.51%) 493,058 Centrica 1,111, ,791 National Grid 3,756, ,375 Severn Trent 520, >24< HSBC ETFs PLC

26 HSBC FTSE 100 UCITS ETF (continued) GBP United Kingdom (continued) 91,439 SSE 1,420, Utilities (31 December 2015: 4.51%)(Continued) 61,960 United Utilities Group 641, ,451, Total equities** (31 December 2015: 99.57%) 153,443, Futures (31 December 2015: 0.01%) 25 LIFFE FTSE 100 Index Future Sep , Total futures*** (Notional amount: GBP 1,605,625) 100, Total financial assets at fair value through profit or loss 153,543, Other net assets 1,554, Net assets attributable to holders of redeemable participating shares 155,098, * Investment in a related party investment. Analysis of Total Assets GBP % of Total Assets **Transferable securities admitted to an official stock exchange listing 153,443, ***Financial derivative instruments dealt in on a regulated market 100, Other assets 1,990, Total assets 155,534, All equity positions (with the exception of the investment held in Rolls-Royce Holdings) and futures held by the Sub-Fund at 30 June 2016 and at 31 December 2015 are classified as Level 1. The investment in Rolls-Royce Holdings has been classified as Level 3 as at 30 June See Note 6 (d) for further details. The schedule of investments form an integral part of the financial statements. HSBC ETFs PLC >25<

27 HSBC EURO STOXX 50 UCITS ETF Equities EUR Belgium Consumer Goods (31 December 2015: 4.12%) 41,815 Anheuser-Busch 4,917, ,917, Finland Technology (31 December 2015: 1.23%) 318,002 Nokia 1,623, ,623, France Basic Materials (31 December 2015: 1.67%) 18,768 Air Liquide 1,765, ,765, Consumer Goods (31 December 2015: 5.41%) 33,314 Danone 2,112, ,386 L'Oreal 2,302, ,796 LVMH Moet Hennessy Louis Vuitton 2,012, ,427, Consumer Services (31 December 2015: 1.78%) 30,562 Carrefour 678, ,883 Vivendi 1,079, ,758, Financial (31 December 2015: 7.91%) 113,565 AXA 2,022, ,942 BNP Paribas 2,422, ,946 Societe Generale 1,239, ,399 Unibail-Rodamco 1,261, ,945, Healthcare (31 December 2015: 5.55%) 11,797 Cie Generale d'optique Essilor International 1,402, ,845 Sanofi 4,783, ,185, Industrial (31 December 2015: 4.94%) 28,619 Cie de St-Gobain 983, ,229 Safran 1,171, ,084 Schneider Electric 1,702, ,298 Vinci 1,929, ,786, Oil & Gas (31 December 2015: 4.72%) 135,085 Total 5,859, ,859, Telecommunications (31 December 2015: 1.48%) 108,657 France Telecom 1,592, ,592, Utilities (31 December 2015: 1.24%) 89,238 GDF Suez 1,294, ,294, >26< HSBC ETFs PLC

28 HSBC EURO STOXX 50 UCITS ETF (continued) EUR Germany Basic Materials (31 December 2015: 7.53%) 50,054 BASF 3,435, ,066 Bayer 4,055, ,491, Consumer Goods (31 December 2015: 6.25%) 17,473 Bayerische Motoren Werke 1,149, ,315 Daimler 2,906, ,977 Volkswagen 1,080, ,136, Financial (31 December 2015: 6.26%) 24,905 Allianz 3,182, ,166 Deutsche Bank 926, ,777 Muenchener Rueckversicherungs 1,318, ,428, Healthcare (31 December 2015: 1.24%) 21,869 Fresenius SE & Co KGaA 1,439, ,439, Industrial (31 December 2015: 4.43%) 52,259 Deutsche Post 1,315, ,710 Siemens 4,013, ,328, Technology (31 December 2015: 3.32%) 53,667 SAP 3,604, ,604, Telecommunications (31 December 2015: 2.48%) 172,697 Deutsche Telekom 2,638, ,638, Utilities (31 December 2015: 0.84%) 109,049 E.ON 984, , Italy Financial (31 December 2015: 4.59%) 73,779 Assicurazioni Generali 778, ,575 Intesa Sanpaolo 1,333, ,705 UniCredit 629, ,741, Oil & Gas (31 December 2015: 1.64%) 138,043 ENI 2,004, ,004, Utilities (31 December 2015: 1.28%) 423,353 Enel 1,684, ,684, Netherlands Consumer Goods (31 December 2015: 3.98%) 50,744 Koninklijke Philips Electronics 1,136, ,056 Unilever 3,564, ,701, HSBC ETFs PLC >27<

29 HSBC EURO STOXX 50 UCITS ETF (continued) EUR Netherlands (continued) Financial (31 December 2015: 2.26%) 211,296 ING Groep 1,939, ,939, Industrial (31 December 2015: 1.70%) 31,472 European Aeronautic Defence and Space 1,628, ,628, Technology (31 December 2015: 1.44%) 20,184 ASML Holding 1,784, ,784, Spain Consumer Services (31 December 2015: 1.56%) 57,273 Inditex 1,713, ,713, Financial (31 December 2015: 5.09%) 353,160 Banco Bilbao Vizcaya Argentaria 1,788, ,637 Banco Santander 2,697, ,485, Telecommunications (31 December 2015: 2.07%) 241,092 Telefonica 2,039, ,039, Utilities (31 December 2015: 1.76%) 307,246 Iberdrola 1,870, ,870, Total equities* (31 December 2015: 99.77%) 102,801, Total financial assets at fair value through profit or loss 102,801, Financial liabilities at fair value through profit or loss Futures (31 December 2015: (0.01%)) 17 EUX Euro Stoxx 50 Sep 16 (1,663) - Total futures** (Notional amount: EUR 485,350) (1,663) - Total financial liabilities at fair value through profit or loss (1,663) - Other net assets 482, Net assets attributable to holders of redeemable participating shares 103,282, >28< HSBC ETFs PLC

30 HSBC EURO STOXX 50 UCITS ETF (continued) Analysis of Total Assets EUR % of Total Assets * Transferable securities admitted to an official stock exchange listing 102,801, Other assets 495, Total assets 103,296, All equity positions and futures held by the Sub-Fund at 30 June 2016 and at 31 December 2015 are classified as Level 1. See Note 6(d) for further details. The schedule of investments form an integral part of the financial statements. HSBC ETFs PLC >29<

31 HSBC MSCI JAPAN UCITS ETF Holdings Financial assets at fair value through profit or loss Equities Basic Materials (31 December 2015: 5.38%) 7,698 Air Water 112, ,800 Asahi Kasei 467, ,613 Daicel 160, ,543 Hitachi Chemical 102, ,478 Hitachi Metals 115, ,945 JFE Holdings 358, ,278 JSR 134, ,159 Kaneka 100, ,673 Kansai Paint 233, ,781 Kobe Steel 134, ,021 Kuraray 225, ,041 Maruichi Steel Tube 105, ,618 Mitsubishi Chemical Holdings 328, ,804 Mitsubishi Gas Chemical 102, ,092 Mitsui Chemicals 178, ,689 Nippon Paint 211, ,246 Nippon Steel 825, ,866 Nitto Denko 556, ,380 Oji Holdings 173, ,793 Shin-Etsu Chemical 1,208, ,882 Sumitomo Chemical 341, ,766 Sumitomo Metal Mining 268, ,996 Taiyo Nippon Sanso 63, ,246 Teijin 165, ,863 Toray Industries 668, ,405 Toyota Tsusho 243, ,584, Consumer Goods (31 December 2015: 25.42%) 1,772 ABC-Mart 118, ,287 Aisin Seiki 414, ,657 Ajinomoto 695, ,682 Asahi Group Holdings 666, ,610 Asics Corporation 144, ,678 Bandai Namco Holdings 274, ,840 Bridgestone 1,110, ,269 Calbee 177, ,275 Casio Computer 175, ,310 Daihatsu Motor 132, ,371 Daiwa House Industry 882, ,019 Denso 907, ,438 Fuji Heavy Industries 1,065, ,300 Honda Motor 2,189, ,924 Iida Group Holdings 160, ,924 Japan Tobacco 2,356, ,924 JTEKT 133, ,973 Kao 1,558, >30< HSBC ETFs PLC

32 HSBC MSCI JAPAN UCITS ETF (continued) Consumer Goods (31 December 2015: 25.42%) (continued) 7,973 Kikkoman 291, ,085 Kirin Holdings 740, ,044 Koito Manufacturing 275, ,987 Konami 189, ,205 Konica Minolta Holdings 174, ,649 Kose 138, ,006 Makita 395, ,542 Mazda Motor 404, ,175 Meiji Holdings 627, ,850 Mitsubishi Motors 168, ,588 NGK Spark Plug 142, ,145 NHK Spring 89, ,255 Nikon 246, ,093 Nintendo 866, ,438 Nippon Meat Packers 229, ,156 Nissan Motor 1,191, ,574 Nisshin Seifun 168, ,110 Nissin Food Products 169, ,086 NOK 85, ,286 Panasonic 1,015, ,255 Pola Orbis Holdings 116, ,770 Rinnai 155, ,994 Sega Sammy Holdings 107, ,870 Sekisui Chemical 267, ,302 Sekisui House 560, ,943 Shimano 596, ,397 Shiseido 524, ,597 Sony 1,968, ,128 Stanley Electric 171, ,413 Sumitomo Electric Industries 528, ,112 Sumitomo Rubber Industries 121, ,468 Suntory Beverage And Food 336, ,490 Suzuki Motor 523, ,732 Toyo Suisan Kaisha 190, ,519 Toyoda Gosei 62, ,751 Toyota Industries 344, ,100 Toyota Motor 7,046, ,647 Unicharm 482, ,671 Yakult Honsha 240, ,982 Yamaha 239, ,963 Yamaha Motor 224, ,960 Yamazaki Baking 193, ,924 Yokohama Rubber 73, ,849, Consumer Services (31 December 2015: 10.54%) 35,026 Aeon 541, ,048 All Nippon Airways 176, HSBC ETFs PLC >31<