HSBC Global Investment Funds - Global Emerging Markets Equity S Share Class 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 (or securities that are similar to shares) issued by companies in Emerging Markets. Investment Strategy In normal market conditions, at least 90% of the Fund s assets are invested in such companies. These companies are either domiciled in or based in Emerging Markets, or carry out most of their business there. The Fund can also invest up to 10% of its assets in Real Estate Investment Trusts and up to 10% of its assets in collective investment schemes. Emerging markets are deemed to be in an earlier stage of economic development, and so carry more risk. 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 40% of its assets. The Fund will not invest more than 15% 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 1Y 3Y¹ 5Y¹ Since Inception¹ -17.10-8.76-12.31-14.10 6.05-0.35 1.89 (Net) 2-21.45-13.55-16.91-18.61 4.16-1.42 1.66-15.72-8.71-11.65-12.52 6.52 0.78 4.86 Calendar Year Performance (%) 2013 2014 2015 2016 2017-9.77-1.09-18.10 12.70 36.00 (Net) 2-14.51-6.29-22.40 6.79 28.86-2.60-2.19-14.92 11.19 37.28 3-Year Risk Measures Characteristics Fund Valuation Time Min. Initial Investment Yes Distributing Annually Daily 17:00 Luxembourg 1,000 5.00% Luxembourg LU0054450605 18 Nov 1994 Volatility 15.7% 14.7% Number of Holdings NAV per Share 14.20 67 1151 Tracking ex Cash Fund Size 169,311,732 2.6% - Error Avg Market Bloomberg Ticker HSBIEMI LX Information Cap ( 72,502 67,323 MSCI Emerging Markets -0.18 - Ratio mil) Net Beta 1.05 - Manager 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) Nicholas Timberlake Past performance is not an indicator of future returns. The figures are calculated in the share class base currency, dividend reinvested. 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. 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 Emerging markets, as represented by the MSCI Emerging Markets Net fell by 8.7% in October as investors remained concerned over the ongoing trade tensions. The month saw a wide dispersion across country performance with a 35% differential between the top and bottom performers. Brazil was the standout performer, driven by 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. Qatar also delivered positive returns for the month after the largest bank in the country, Qatar National Bank, increased its foreign ownership limit, leading to a rush of passive flows that supported the share price. At the opposite end of the spectrum was Mexico, which lagged on Peso weakness and on uncertainty surrounding policies of the incoming government and the impact it may have on investment in the country. South Korea was the next worst performer amid weak corporate earnings, and as the market continues to be dogged by ongoing trade disputes, given the country s export driven economy. Fund Review At the stock level, contributors to relative performance included Banco Bradesco and Cosan, which rallied with the wider Brazilian market. Partially offsetting these gains was an underweight position in the Brazilian energy company, Petrobras, which gained during the month. Furthermore, China State Construction International fell after releasing weak performance data which showed revenue and operating profit had slowed to below expectations, driven by FX headwinds and poor performance in their JV operations. Country and sector allocation effects are residual to stock selection. Country allocation was neutral for the period as overweight exposure to Brazil was offset by underweight exposure to Qatar, however Sector allocation contributed given the fund s overweight exposure to Financials. During the period, no new positions were initiated, whilst The Foschini Group was sold. Outlook We remain positive on select emerging markets based on attractive valuations and continued improvements in fundamentals. Near-term volatility can be expected 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 Information Technology Energy Materials Consumer Discretionary Telecommunication Services Industrials Real Estate Utilities Health Care Consumer Staples Cash & Others 10.74 8.59 9.94 7.78 8.86 8.75 4.14 4.67 2.73 5.22 2.63 2.92 1.32 2.61 2.88 6.53 4.22 30.82 24.63 24.60 25.42 China South Korea Taiwan Brazil India Russian Federation South Africa Indonesia Malaysia Mexico Cash & Others 14.69 13.96 10.46 11.85 9.34 7.98 7.75 8.67 6.27 3.94 4.58 5.87 2.84 2.07 2.03 2.49 1.85 2.86 10.55 10.27 29.65 30.04 Top 10 Holdings (%) Location Sector Weight (%) Samsung Electronics Co Ltd Tencent Holdings Ltd Taiwan Semiconductor Co Ltd Alibaba Group Holding Ltd Banco Bradesco SA China Construction Bank Corp Vale SA Infosys Ltd Reliance Industries Ltd Indl and Comm Bank of China Ltd South Korea Information Technology 4.97 China Information Technology 3.84 Taiwan Information Technology 3.83 China Information Technology 3.07 Brazil Financials 2.96 China Financials 2.68 Brazil Materials 2.61 India Information Technology 2.29 India Energy 2.23 China Financials 2.20 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, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (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 Emerging Markets Equity Supplement Information Sheet 31 Oct 2018 Since Performance (%) Return Currency YTD 1M 3M 6M 1Y 3Y 1 5Y 1 Inception 1 EUR EUR -12.14-6.47-9.44-12.44-11.68 5.16 3.34 2.30 EUR (Net) 2 EUR -16.76-11.38-14.20-17.04-16.31 3.29 2.23 2.07 SGD SGD -14.10-7.53-10.79-14.12-12.68 5.65 1.86 1.64 SGD (Net) 2 SGD -18.61-12.38-15.48-18.63-17.27 3.77 0.77 1.41-17.10-8.76-12.31-17.89-14.10 6.05-0.35 1.89 (Net) 2-21.45-13.55-16.91-22.20-18.61 4.16-1.42 1.66 PC EUR EUR -11.79-6.43-9.33-12.23-11.24 5.69 3.85 2.69 PC EUR (Net) 2 EUR -16.42-11.34-14.09-16.84-15.90 3.81 2.74 2.06 PC SGD SGD -13.75-7.49-10.68-13.91-12.25 6.19 2.36 0.31 PC SGD (Net) 2 SGD -18.28-12.35-15.37-18.43-16.86 4.29 1.27-0.31 PC -16.76-8.72-12.20-17.69-13.67 6.59 0.13 0.55 PC (Net) 2-21.13-13.51-16.81-22.01-18.20 4.69-0.94-0.07 PD -16.74-8.72-12.19-17.67-13.66 6.59 0.15 0.24 PD (Net) 2-21.11-13.51-16.80-21.99-18.19 4.69-0.93-0.38 Calendar Year Performance (%) Return Currency 2013 2014 2015 2016 2017 EUR EUR -13.67 12.62-8.76 16.08 19.46 EUR (Net) 2 EUR -18.20 6.71-13.55 9.98 13.19 SGD SGD -6.74 3.80-12.31 14.77 25.81 SGD (Net) 2 SGD -11.63-1.65-16.92 8.75 19.20-9.77-1.09-18.10 12.70 36.00 (Net) 2-14.51-6.29-22.40 6.79 28.86 PC EUR EUR -13.22 13.17-8.35 16.68 20.06 PC EUR (Net) 2 EUR -17.78 7.23-13.16 10.55 13.76 PC SGD SGD -6.26 4.31-11.91 15.37 26.44 PC SGD (Net) 2 SGD -11.18-1.17-16.53 9.31 19.80 PC -9.31-0.61-17.72 13.29 36.69 PC (Net) 2-14.07-5.83-22.04 7.34 29.51 PD -9.32-0.59-17.68 13.27 36.68 PD (Net) 2-14.08-5.81-22.01 7.32 29.51 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 Annually 11 Jul 2018 0.131844 0.84% PC - - - - PD Annually 11 Jul 2018 0.144771 1.35% 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 PC 18 Nov 1994 Base Currency Min. Initial Investment NAV per Share Annual Management Fee LU0054450605 1,000 14.20 1.50% Distributing 12 Feb 2010 LU0449515922 1,000 11.02 1.00% Distribution Type Accumulating PD 17 Feb 2010 LU0449516144 1,000 9.75 1.00% Distributing 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.