HSBC Global Investment Funds - Global Equity Volatility Focused S Share Class 30 Sep 2018 30/09/2018 Fund Objective and Strategy Investment Objective The Fund aims to provide long-term total return (meaning capital growth and income) by investing in shares (or securities that are similar to shares) of companies around the world. The Fund aims to have a lower volatility (less fluctuation in the Fund s share prices) than the MSCI All Country World Index. Investment Strategy In normal market conditions, at least 90% of the Fund s assets are invested in company securities. The Fund can also invest in Real Estate Investment Trusts financial derivative instruments and collective investment schemes. There aren t restrictions on the market values of the companies held in the Fund. The Fund uses a technique called portfolio optimisation that selects stocks that are less correlated to one another. This has the effect of diversifying the Fund which should in turn lower its volatility. The Fund's maximum exposure to China A-shares and China B-shares is 20% of its assets. The Fund will not invest more than 10% of its assets in a combination of participation notes and convertible securities. See the Prospectus for a full description of the investment objectives and derivative usage. Performance (%) YTD 1M 3M 4.52 1.05 5.05 10.99 10.21-4.56 (Net) 2-0.97-4.25-0.47 5.17 8.25-3.24 3.83 0.44 4.28 9.77 13.40-7.00 Calendar Year Performance (%) - - -6.28 3.88 16.56 (Net) 2 - - -11.20-1.57 10.44 - - -2.36 7.86 23.97 3-Year Risk Measures 2013 2014 1Y 3Y¹ 5Y¹ 2015 2016 Characteristics Fund Since Inception¹ Valuation Time Min. Initial Investment Yes Distributing Monthly Daily 17:00 Luxembourg USD 1,000 5.00% USD Luxembourg LU1066051498 26 Jun 2014 Volatility 8.2% 9.2% Number of Holdings NAV per Share USD 10.74 64 2791 Tracking ex Cash Fund Size USD 243,828,358 3.4% - Error Avg Market Bloomberg Ticker HSBGLAM LX Information Cap (USD 147,497 149,070-0.94 - MSCI AC World Net Ratio mil) Beta 0.83 - Manager 2017 Share Class Details UCITS V Compliant Subscription Mode Distribution Type Distribution Frequency Dealing Frequency Annual Management Fee 1.50% Max. Initial Charge Base Currency Domicile ISIN Inception Date Cash / SRS (Supplementary Retirement Scheme) Angus Parker Past performance is not an indicator of future returns. The figures are calculated in the share class base currency, dividend reinvested. Source: HSBC Global Asset Management, data as at 30 September 2018 1 Result is annualised when calculation period is over one year. 2 Net of relevant prevailing sales charge Risk Disclosure General Risk: The Fund's unit value can go up as well as down, and any capital invested in the Fund may be at risk. Market Risk: The value of investible securities can change over time due to a wide variety of factors, including but not limited to: political and economic news, government policy, changes in demographics, cultures and populations, natural or human-caused disasters etc. Emerging Markets Risk: The Fund may invest in Emerging Markets, these markets are less established, and often more volatile, than developed markets and involve higher risks, particularly market, liquidity and currency risks. Style Risk: Different investment styles typically go in and out of favour depending on market conditions and investor sentiment. Derivatives Risk: Derivatives may be used by the Fund, and these can behave unexpectedly. Hedging Risk: The pricing and volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of their underlying reference(s), instrument or asset. Investment Leverage Risk: Investment Leverage occurs when the economic exposure is greater than the amount invested, such as when derivatives are used. A Fund that employs leverage may experience greater gains and/or losses due to the amplification effect from a movement in the price of the reference source.. Documentation Statement: Further information on the Fund's potential risks can be found in the Key Investor Information Document and Prospectus. The reference benchmark was applied to the fund with effect from 30 June 2016 to align with global disclosures and is applied to the performance data provided above across all periods
Monthly Performance Commentary Market Review Global equity markets edged up in September, with investors broadly shrugging off an escalation in trade tensions between the US and China. The Energy sector was the best performer given higher oil prices, whilst Real Estate saw a selloff on the back of US rate hikes. At the country level, the best performer was Turkey, which saw double digit returns during the month off the back of a higher than expected rate hike by the central bank. At the opposite end of the spectrum was India, which saw headwinds from Rupee weakness and higher oil prices, as well as seeing the financial sector dip on speculation that the central bank may tighten rules, following underreporting of bad loans by some lenders. In macro news, the US Fed raised interest rates by 25bp in September, with monetary policy no longer described as accommodative. Eurozone and UK GDP growth are holding up well, both expanding by 0.4% qoq in Q2, but downside risks remain. In China, policy easing is now focussing on local government infrastructure spending, tax and tariff cuts and initiatives to stimulate consumption. In Japan, economic activity remains supported by a robust labour market and rising wage growth, whilst investment is being supported by limited spare capacity. Fund Review Contributors to relative performance included BP, which advanced on higher oil prices and on news that project Zohr, which it runs along with Rosneft, Eni and Mubadala, has increased production by more than 25% and is ahead of schedule. The project is expected to expand further by the end of 2019. Additionally, United Technologies advanced after securing a lucrative US Navy contract for the procurement of program administrative labour for non-recurring sustainment activities, including supplies, services and planning for depot activations. Detractors included Tokyo Electron, which slid on weaker than expected demand growth, and on reports that the Hokkaido earthquake could push up prices of silicon wafers, a key component in the memory manufacturing. Furthermore, Phillips 66 was impacted by falling crack spreads, particularly in the North East and the US Gulf Coast, and tightening Permian spreads given a moderation in producer activity and uncertainties around the EIPIC pipeline. During the period, there was no portfolio turnover. Sector and country allocation effects are residual to the stock selection process. Sector allocation was marginally positive for the month, with no one sector eliciting a material effect. Country allocation was also positive and mainly driven by an overweight exposure to Japan. Outlook Our measure of the global equity risk premium (excess return over cash) is still reasonable given where we are in the profit cycle. Global economic growth momentum remains solid, driving global equity markets to deliver positive returns over the long term. Overall, support from still loose monetary policy and fiscal policy may, in the medium and longer term, likely outweigh any headwinds from more modest Chinese growth, monetary policy normalisation in developed markets, and political uncertainty in many regions. While volatility appears benign, investors should not be complacent. Fairly narrow implied equity premia (excess return over cash) limit the ability of the market to absorb bad news. Episodic volatility may be triggered by concerns surrounding global trade protectionism, Chinese growth, and/or a potentially more rapid than expected Fed, ECB or BoJ normalisation of policy, coupled with political risks. A notable and persistent deterioration of the global economic outlook could also dampen our view. Your equity portfolio aims to deliver diversified global equity exposure with lower volatility. Lower volatility can offer a smoother performance pattern that can help investors stay invested and capture long-term returns. The portfolio aims to invest in companies with an attractive combination of profitability and valuation. These quality companies typically have sustainable business models, strong balance sheets and good management. These stocks are combined with an aim to deliver a portfolio with lower volatility.
Sector Allocation (%) Geographical Allocation (%) Financials Information Technology Industrials Health Care Consumer Discretionary Consumer Staples Energy Materials Utilities Telecommunication Services Real Estate Cash & Others 19.94 17.12 19.43 20.04 14.08 10.56 12.07 11.85 10.65 12.24 8.33 7.89 6.12 6.71 3.13 5.06 2.14 2.86 1.72 2.82 0.44 2.86 1.96 0.00 United States United Kingdom Japan China Germany France Netherlands Italy Switzerland Hong Kong Cash & Others 13.16 5.52 10.62 7.57 5.09 3.21 4.67 2.91 2.76 3.37 2.63 0.87 2.59 0.65 1.82 2.59 1.51 1.30 7.59 16.96 47.57 55.05 Top 10 Holdings (%) Location Sector Weight (%) Apple Inc Cisco Systems Inc Kao Corp Home Depot Inc IQVIA Holdings Inc Microsoft Corp UnitedHealth Group Inc Compass Group PLC Phillips 66 United Technologies Corp Source: HSBC Global Asset Management, data as at 30 September 2018 United States Information Technology 2.89 United States Information Technology 2.69 Japan Consumer Staples 2.57 United States Consumer Discretionary 2.57 United States Health Care 2.54 United States Information Technology 2.42 United States Health Care 2.31 United Kingdom Consumer Discretionary 2.31 United States Energy 2.30 United States Industrials 2.17 Index Disclaimer 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 as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an as is basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the MSCI Parties ) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, noninfringement, 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 (including, without limitation, lost profits) or any other damages. (www.msci.com)
Important Information This document does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment. This document is for information only and is not an advertisement, investment recommendation, research, or advice. Any views and opinions expressed are subject to change without notice. It does not have regard to the specific investment objectives, financial situation, or needs of any specific person. Investors and potential investors should not invest in the Fund solely based on the information provided in this document and should read the prospectus (including the risk warnings) and the product highlights sheets, which are available upon request at HSBC Global Asset Management (Singapore) Limited ( AMSG ) or our authorised distributors, before investing. You should seek advice from a financial adviser. Investment involves risk. Past performance of the managers and the funds, and any forecasts on the economy, stock or bond market, or economic trends that are targeted by the funds, are not indicative of future performance. The value of the units of the funds and income accruing to them, if any, may fall or rise and investor may not get back the original sum invested. Changes in rates of currency exchange may affect significantly the value of the investment. AMSG has based this document on information obtained from sources it reasonably believes to be reliable. However, AMSG does not warrant, guarantee or represent, expressly or by implication, the accuracy, validity or completeness of such information. HSBC Global Asset Management (Singapore) Limited 21 Collyer Quay #06-01 HSBC Building Singapore 049320 Telephone: (65) 6658 2900 Facsimile: (65) 6225 4324 Website: www.assetmanagement.hsbc.com/sg Company Registration No. 198602036R Should there be any discrepancy, the English version shall prevail
HSBC Global Investment Funds - Global Equity Volatility Focused Supplement Information Sheet 30 Sep 2018 Since Performance (%) Return Currency YTD 1M 3M 6M 1Y 3Y 1 5Y 1 Inception 1 AC USD 4.52 1.05 5.05 4.88 10.99 10.21-4.56 AC (Net) 2 USD -0.97-4.25-0.47-0.62 5.17 8.25-3.24 ACOAUD AUD 4.02 1.00 4.86 4.57 10.48 10.38-5.27 ACOAUD (Net) 2 AUD -1.45-4.31-0.64-0.92 4.68 8.41-3.66 ACOEUR EUR 2.26 0.80 4.25 3.27 7.90 7.94-2.74 ACOEUR (Net) 2 EUR -3.11-4.49-1.23-2.15 2.23 6.01-1.40 ACOSGD SGD 3.72 1.00 4.79 4.33 9.95 9.72-4.34 ACOSGD (Net) 2 SGD -1.72-4.30-0.71-1.14 4.18 7.76-3.03 USD 4.52 1.05 5.05 4.88 10.99 10.21-4.56 (Net) 2 USD -0.97-4.25-0.47-0.62 5.17 8.25-3.24 AM3OAUD AUD 3.98 0.99 4.84 4.54 10.44 10.36-5.16 AM3OAUD (Net) 2 AUD -1.48-4.31-0.67-0.95 4.64 8.40-3.84 AM3OEUR EUR 2.23 0.82 4.25 3.27 7.86 7.91-2.86 AM3OEUR (Net) 2 EUR -3.13-4.48-1.23-2.15 2.20 5.99-1.56 AM3OSGD SGD 3.71 1.00 4.79 4.32 9.97 9.72-4.33 AM3OSGD (Net) 2 SGD -1.74-4.30-0.71-1.15 4.19 7.76-3.02 ZCOSGD SGD 5.00 1.13 5.24 5.20 11.78 11.49-6.32 ZCOSGD (Net) 2 SGD -0.51-4.18-0.28-0.32 5.92 9.51-4.90 Calendar Year Performance (%) Return Currency 2013 2014 2015 2016 2017 AC USD - - -6.28 3.89 16.55 AC (Net) 2 USD - - -11.20-1.56 10.43 ACOAUD AUD - - - 4.22 16.90 ACOAUD (Net) 2 AUD 1.25 10.76 ACOEUR EUR - - -6.79 2.07 14.11 ACOEUR (Net) 2 EUR - - -11.68-3.29 8.12 ACOSGD SGD - - -5.64 3.62 15.88 ACOSGD (Net) 2 SGD - - -10.59-1.82 9.80 USD - - -6.28 3.88 16.56 (Net) 2 USD - - -11.20-1.57 10.44 AM3OAUD AUD - - -5.20 4.23 16.89 AM3OAUD (Net) 2 AUD - - -10.18-1.24 10.76 AM3OEUR EUR - - -6.86 2.06 14.07 AM3OEUR (Net) 2 EUR - - -11.75-3.29 8.08 AM3OSGD SGD - - -5.67 3.60 15.92 AM3OSGD (Net) 2 SGD - - -10.62-1.84 9.84 ZCOSGD SGD - - -4.11 5.25 17.78 ZCOSGD (Net) 2 SGD - - -9.15-0.28 11.60 1 Result is annualised when calculation period is over one year. 2 Net of relevant prevailing sales charge Past performance is not an indicator of future returns. The figures are calculated in the share class base currency, dividend reinvested.
HSBC Global Investment Funds - Global Equity Volatility Focused Supplement Information Sheet 30 Sep 2018 Share Class Base Currency Distribution Frequency Dividend ex-date Last Paid Dividend Annualised Yield USD Monthly 28 Sep 2018 0.035501 3.97% AC USD ACOAUD AUD ACOEUR EUR ACOSGD SGD AM3OAUD AUD Monthly 28 Sep 2018 0.032755 3.73% AM3OEUR EUR Monthly 28 Sep 2018 0.014163 1.62% AM3OSGD SGD Monthly 28 Sep 2018 0.029830 3.37% ZCOSGD SGD The above table cites the last dividend paid within the last 12 months only. Dividend is not guaranteed and may be paid out of distributable income, capital or both, which could result in capital erosion and reduction in net asset value. A positive distribution yield does not imply a positive return. Past payout yields and payments do not represent future payout yields and payments. The calculation method of annualised yield: (dividend value / NAV per share or unit as of ex-dividend date) x n, n depends on the distributing frequency. Annually distribution is 1; semi-annually distribution is 2; quarterly distribution is 4; monthly distribution is 12. The annualised dividend yield is calculated based on the dividend distribution on the relevant date with dividend reinvested, and may be higher or lower than the actual annual dividend yield. Investors and potential investors should refer to the details on dividend distributions of the Fund, which are available on HSBC Global Asset Management (Singapore) Limited website. Share Class Inception Date ISIN AC ACOAUD ACOEUR ACOSGD AM3OAUD AM3OEUR AM3OSGD ZCOSGD Base Currency Min. Initial Investment NAV per Share Annual Management Fee Distribution Type 26 Jun 2014 LU1066051498 USD USD 1,000 10.74 1.50% Distributing 26 Jun 2014 LU1066051225 USD USD 1,000 12.09 1.50% Accumulating 02 Apr 2015 LU1066052033 AUD AUD 1,000 11.97 1.50% Accumulating 25 Aug 2014 LU1066052207 EUR EUR 1,000 11.17 1.50% Accumulating 26 Jun 2014 LU1066052462 SGD SGD 1,000 11.99 1.50% Accumulating 26 Jun 2014 LU1066052546 AUD AUD 1,000 10.53 1.50% Distributing 26 Jun 2014 LU1066052892 EUR EUR 1,000 10.51 1.50% Distributing 26 Jun 2014 LU1066053197 SGD SGD 1,000 10.62 1.50% Distributing 25 Sep 2014 LU1090890523 SGD SGD 1,000,000 12.75 0.00% Accumulating Different classes may have different performances, dividend yields and expense ratios. For hedged classes, the effects of hedging will be reflected in the net asset values of such classes. Expenses arising from hedging transactions may be significant and will be borne by the relevant hedged classes. Hedged class performs the required hedging on a best efforts basis. Source: HSBC Global Asset Management, data as at 30 September 2018