HSBC Global Investment Funds - BRIC Equity S Share Class (Active - Closed to New Investors) 31 Oct 2018 31/10/2018 Fund Objective and Strategy Investment Objective The Fund aims to provide long-term total return (meaning capital growth and income) by investing in shares from companies in Brazil, Russia, India and China (also known as BRICs). Investment Strategy The Fund may invest in shares from companies in Hong Kong s special administrative region (SAR). In normal market conditions, at least 90% of the Fund s assets are invested in shares (or securities that are similar to shares) from companies that are based in, or carry our most of their business in, the above countries. There aren t restrictions on the market values of the companies held in the Fund. The Fund's maximum exposure to China A-shares and China B-shares is 50% of its assets. The Fund may invest up to 10% of its assets into other funds. See the Prospectus for a full description of the investment objectives and derivative usage. Share Class Details Since UCITS V Compliant Yes Performance (%) YTD 1M 3M 1Y 3Y¹ 5Y¹ Inception¹ Subscription Mode Cash -6.48-1.14-4.10-2.75 15.81 4.87 7.38 (Net) 2-11.39-6.33-9.13-7.86 13.75 3.74 6.95 Distribution Type Accumulating Dealing Frequency Daily -6.00-1.30-5.05-2.38 13.86 3.53 9.23 Benchmark Valuation Time 17:00 Luxembourg Min. Initial Investment 1,000 Calendar Year Performance (%) -7.59-5.96-16.33 33.34 31.73 Max. Initial Charge 5.00% (Net) 2-12.44-10.90-20.72 26.34 24.81 Base Currency Domicile -3.64-9.84-13.21 28.56 30.12 Benchmark ISIN 3-Year Risk Measures Volatility Tracking Error Information Ratio Beta 1.10 - Past performance is not an indicator of future returns. The figures are calculated in the share class base currency, dividend reinvested. Risk Disclosure 2013 2014 2015 2016 2017 Benchmark Characteristics Fund Benchmark 18.8% 16.8% 4.0% - 0.49 - Number of Holdings ex Cash Avg Market Cap ( mil) 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. Concentration Risk: The Fund may be concentrated in a limited number of securities, economic sectors and/or countries and as a result, may be more volatile and have a greater risk of loss than more broadly diversified funds. 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. 56 617 57,424 67,323 Annual Management Fee 1.00% Inception Date NAV per Share Fund Size Bloomberg Ticker Benchmark Manager Luxembourg LU0214875030 01 Apr 2005 26.31 314,169,147 HSBRIM2 LX 25% MSCI Brazil Net, 25% MSCI China Net, 25% MSCI Russia Net, 25% MSCI India Net Nicholas Timberlake 1 Result is annualised when calculation period is over one year. 2 Net of relevant prevailing sales charge 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 Emerging markets, as represented by the MSCI Emerging Markets Net fell by 8.7% in October as investors remain concerned of the ongoing trade tensions. During the period the custom equally weighted BRIC index fell by 1.3%, with a wide dispersion across country returns. Brazil was the only country to deliver positive returns over the month, driven mainly by a market-friendly outcome in the presidential election. Russian equities saw a pull back on oil price declines. Indian equities fell on Rupee weakness as the Reserve Bank of India decided to keep interest rates unchanged, while China equities saw headwinds on concerns of lower growth and ongoing trade tensions with the US. Fund Review Contributors to relative performance included positions in Banco Bradesco and CCR which both rallied along with the wider Brazil index following indications that the market friendly presidential candidate was ahead in the polls. At the end of the month the victory was confirmed and in his first speech Jair Bolsonaro confirmed his government will focus on the economy, tackling current issues but also sowing the seeds for the future based on employment, income and fiscal balances. Detractors from performance included an underweight position in Banco Do Brasil, which gained on the aforementioned news. Furthermore, China State Construction International fell after releasing weak performance data which showed revenue and operating profit had slowed to below expectations, driven by a FX headwinds and poor performance in their JV operations. During the month, positions were initiated in LIC Housing Finance and Power Grid, whilst Magnit PJSC and Rushydro was sold. Allocation effects were positive for the period, driven by the fund s overweight exposure to Brazil and underweight exposure to India. Allocation to China and Russia did not elicit a material effect. Outlook We remain positive on select emerging and BRIC markets based on continued improvements in fundamentals and supportive global economic conditions. We believe this supportive economic backdrop should allow for further gains in corporate earnings. There could be some near-tern volatility as worries persist around the uncertain path for future Fed tightening, the potential for increased trade protectionism, economic transition in China, and the robustness of the global economy as a whole. Geopolitical uncertainty also poses risks. As fundamental investors, we focus on quality companies that offer an attractive combination of profitability and valuation. Bouts of market uncertainty can give rise to opportunities to invest in companies at a more attractive entry price. We believe following a disciplined investment approach should help navigate short-term uncertainties.
Sector Allocation (%) Geographical Allocation (%) Financials Energy Materials Information Technology Consumer Discretionary Telecommunication Services Industrials Real Estate Utilities Health Care Consumer Staples Cash & Others 14.08 10.66 8.84 13.45 4.89 6.34 3.48 2.90 3.17 3.76 2.26 1.67 2.04 2.87 1.23 2.52 1.07 6.85 4.66 0.00 28.84 25.21 25.44 23.78 Brazil Russian Federation China India Cash & Others 0.00 4.66 27.23 26.66 21.86 19.60 Benchmark Benchmark Top 10 Holdings (%) Location Sector Weight (%) Sberbank of Russia Lukoil OAO Vale SA Banco Bradesco SA Reliance Industries Ltd Petroleo Brasileiro SA Gazprom OAO Tencent Holdings Ltd Novatek OAO Infosys Ltd Russian Federation Financials 6.06 Russian Federation Energy 5.74 Brazil Materials 4.75 Brazil Financials 4.06 India Energy 3.59 Brazil Energy 3.34 Russian Federation Energy 3.33 China Information Technology 3.01 Russian Federation Energy 2.93 India Information Technology 2.77 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 - BRIC Equity Supplement Information Sheet 31 Oct 2018 Since Performance (%) Return Currency YTD 1M 3M 6M 1Y 3Y 1 5Y 1 Inception 1 AC EUR EUR -1.30 1.30-1.09-2.78-0.51 14.26 8.22 8.40 AC EUR (Net) 2 EUR -6.48-4.02-6.28-7.88-5.74 12.22 7.06 7.98 AC SGD SGD -3.50 0.15-2.56-4.64-1.65 14.80 6.67 5.90 AC SGD (Net) 2 SGD -8.56-5.11-7.68-9.65-6.81 12.75 5.52 5.49 AC -6.87-1.18-4.22-8.83-3.24 15.23 4.34 7.16 AC (Net) 2-11.76-6.37-9.25-13.61-8.32 13.18 3.23 6.74 M1C -6.48-1.14-4.10-8.60-2.75 15.81 4.87 7.50 M1C (Net) 2-11.39-6.33-9.13-13.40-7.86 13.74 3.74 7.08 EUR EUR -0.88 1.34-0.96-2.53-0.01 14.83 8.76 8.44 EUR (Net) 2 EUR -6.09-3.98-6.16-7.65-5.26 12.79 7.59 8.02 SGD SGD -3.09 0.20-2.44-4.40-1.15 15.37 7.20 5.97 SGD (Net) 2 SGD -8.18-5.06-7.56-9.42-6.34 13.32 6.05 5.55-6.48-1.14-4.10-8.60-2.75 15.81 4.87 7.38 (Net) 2-11.39-6.33-9.13-13.40-7.86 13.75 3.74 6.95 Calendar Year Performance (%) Return Currency 2013 2014 2015 2016 2017 AC EUR EUR -12.02 6.55-7.27 36.64 15.14 AC EUR (Net) 2 EUR -16.64 0.95-12.14 29.46 9.09 AC SGD SGD -4.96-1.80-10.87 35.11 21.25 AC SGD (Net) 2 SGD -9.95-6.96-15.55 28.01 14.89 AC -8.05-6.43-16.75 32.67 31.08 AC (Net) 2-12.88-11.34-21.12 25.70 24.20 M1C -7.59-5.96-16.34 33.34 31.73 M1C (Net) 2-12.44-10.90-20.73 26.34 24.82 EUR EUR -11.58 7.08-6.80 37.32 15.71 EUR (Net) 2 EUR -16.23 1.46-11.69 30.11 9.63 SGD SGD -4.48-1.31-10.43 35.78 21.85 SGD (Net) 2 SGD -9.50-6.49-15.13 28.66 15.46-7.59-5.96-16.33 33.34 31.73 (Net) 2-12.44-10.90-20.72 26.34 24.81 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. Share Class Base Currency Distribution Frequency Dividend ex-date Last Paid Dividend Annualised Yield - - - - AC - - - - M1C - - - - 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 Base Currency Min. Initial Investment NAV per Share Annual Management Fee 01 Apr 2005 LU0214875030 1,000 26.31 1.00% Distribution Type Accumulating 01 Dec 2004 LU0449509016 1,000 24.87 1.50% Accumulating M1C 01 Dec 2004 LU0205170342 1,000 27.37 1.00% 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.