HSBC Global Investment Funds - Economic Scale Global Equity S Share Class 31 Jan 2019 31/01/2019 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 in developed markets. The companies issuing these shares will have a registered office or official stock-market listing in developed markets such as countries of the OECD, or carry out most of their business there. Investment Strategy In normal market conditions, at least 90% of the Fund s assets are invested in such companies. The Fund uses a systematic investment approach and invests in companies according to their economic scale. This is measured as a company s contribution to Gross National Product ( GNP ) and equal to the difference between a company s outputs and inputs. There aren t restrictions on the market values of the companies held in the Fund. 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. See the Prospectus for a full description of the investment objectives and derivative usage. Performance (%) YTD 1M 3M 1Y 3Y¹ 5Y¹ Since Inception¹ USD 8.49 8.49 0.24-10.24 10.59 5.61 4.71 USD (Net) 2 2.79 2.79-5.02-14.95 8.62 4.48 4.51 USD 8.54 8.54 0.72-6.54 12.25 6.96 7.15 Calendar Year Performance (%) 2014 2015 2016 2017 2018 USD 6.61-4.46 8.62 21.32-13.03 USD (Net) 2 1.02-9.48 2.92 14.95-17.59 USD 4.94-3.13 10.18 22.32-9.35 3-Year Risk Measures Characteristics Share Class Details UCITS V Compliant Valuation Time Min. Initial Investment Yes Distributing Annually Daily 11:00 Luxembourg USD 1,000 5.00% USD Luxembourg LU0039216626 03 Dec 1990 Volatility 11.21% 11.04% Number of Holdings NAV per Share USD 36.09 1,594 1,632 Information ex Cash Fund Size USD 154,341,292-0.68 - Ratio Avg Market Bloomberg Ticker HSBIMEI LX Beta 0.99 - Cap (USD 79,084 135,485 MSCI World Net mil) Fund Past performance is not an indicator of future returns. The figures are calculated in the share class base currency, dividend reinvested. Subscription Mode Distribution Type Distribution Frequency Dealing Frequency Annual Management Fee Max. Initial Charge Base Currency Domicile ISIN Inception Date Manager Cash / SRS (Supplementary Retirement Scheme) 0.60% HSBC Index and Systematic Equity Portfolio Management Team Risk Disclosure The Fund's unit value can go up as well as down, and any capital invested in the Fund may be at 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. Derivatives may be used by the Fund, and these can behave unexpectedly. 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 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. Further information on the Fund's potential risks can be found in the Key Investor Information Document and Prospectus. 1 Result is annualised when calculation period is over one year. 2 Net of relevant prevailing sales charge Prior to 25/10/2017 the fund was named HSBC Global Investment Funds - Economic Scale Index Global Equity; Prior to 17/02/2015 the fund was named Global Equity. Historically the comparative investment benchmark has been: FTSE World Gross from launch until 31/12/2000; MSCI World Net from 01/01/2001 until 16/02/2015; HSBC Economic Scale World Index from 17/02/2015 until 25/10/2017.
Monthly Performance Commentary Market Review Global equities rebounded in January amid easing US-China trade tensions, upbeat corporate earnings report and dovish comments by the US Federal Reserve. Most markets finished the month in positive territory, recovering some of the sharp falls from December. All sectors registered positive returns, Real Estate being the best performer, followed by Energy. China and the US were the best performers given confirmation that President Trump and President Xi Jinping moved closer to a trade dispute resolution. Across the major central banks; The US Federal Reserve January policy statement confirmed a shift towards a more patient approach, removing references to further rate hikes. The European Central Bank acknowledged recent growth weakness agreeing that the balance of risks to the outlook have moved to the downside. The Bank of England struck a slightly more dovish tone in December although still views ongoing tightening as appropriate given evidence of rising wage costs. In Japan, the Bank of Japan is likely to continue its ultra-loose monetary policy given inflation is still well below the 2% target. The People s Bank of China remains in easing mode, having already cut reserve ratio requirements this year. Fund Review Both our asset allocation and stock selection contributed to performance. On a country basis, an underweight allocation to Australia coupled with our overweight exposures to the Netherlands, Belgium and Sweden contributed to performance. Conversely, an underweight allocations to the United States coupled with our overweight exposures to Japan, France, the UK and Germany weighed on performance. On a sector basis, our overweight exposures to Industrials and Consumer Discretionary coupled with an underweight allocation to Health Care contributed to performance. Conversely, our overweight allocations to Utilities and Consumer Staples coupled with an underweight exposure to Real Estate weighed on performance. At stock level, overweighting General Electric Co (Industrials, USA) coupled with underweighting Microsoft Corp (Information Technology, USA) and AbbVie Inc (Health Care, USA) contributed to performance. Conversely, overweighting Walmart Inc (Consumer Staples, USA) coupled with underweighting Facebook Inc (Communication Services, USA) and Amazon.com Inc (Consumer Discretionary, US) weighed on performance.
Sector Allocation (%) Geographical Allocation (%) Industrials Financials Consumer Discretionary Consumer Staples Information Technology Communication Services Health Care Energy Materials Utilities Real Estate Cash & Others 17.01 10.99 16.89 16.24 12.82 10.37 9.91 8.50 8.74 14.96 8.40 8.57 8.02 13.03 6.06 6.08 5.60 4.63 4.34 3.35 1.65 3.28 0.56 0.00 United States Japan United Kingdom France Germany Canada Switzerland Spain Australia Netherlands Other Locations Cash & Others 12.66 8.53 8.18 6.43 6.84 3.73 6.27 3.05 2.76 3.47 2.49 3.02 2.19 1.05 2.11 2.34 1.87 0.99 9.23 5.78 0.56 0.00 44.84 61.61 Top 10 Holdings (%) Location Sector Weight (%) WALMART INC United States Consumer Staples 1.64 General Electric Co United States Industrials 1.32 Royal Dutch Shell PLC Wells Fargo & Co Apple Inc AT&T Inc JP Morgan Chase & Co Volkswagen AG Bank of America Corp Nippon Telegraph & Tel Corp United Kingdom Energy 0.78 United States Financials 0.76 United States Information Technology 0.74 United States Communication Services 0.73 United States Financials 0.69 Germany Consumer Discretionary 0.68 United States Financials 0.66 Japan Communication Services 0.60 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. This document has not been reviewed by the Monetary Authority of Singapore.
HSBC Global Investment Funds - Economic Scale Global Equity Supplement Information Sheet 31 Jan 2019 Performance (%) Return Currency YTD 1M 3M Since 6M 1Y 3Y 1 5Y 1 Inception 1 EUR EUR 8.11 8.11-1.02-4.43-2.55 8.45 9.08 5.56 EUR (Net) 2 EUR 2.44 2.44-6.22-9.44-7.67 6.52 7.91 5.36 SGD SGD 6.80 6.80-2.67-7.42-7.81 8.52 6.69 3.80 SGD (Net) 2 SGD 1.19 1.19-7.78-12.28-12.65 6.59 5.55 3.60 USD USD 8.49 8.49 0.24-6.27-10.24 10.59 5.61 4.71 USD (Net) 2 USD 2.79 2.79-5.02-11.19-14.95 8.62 4.48 4.51 Calendar Year Performance (%) Return Currency 2014 2015 2016 2017 2018 EUR EUR 21.40 6.42 11.87 6.56-8.66 EUR (Net) 2 EUR 15.03 0.83 5.99 0.97-13.46 SGD SGD 11.89 2.28 10.61 12.22-11.10 SGD (Net) 2 SGD 6.02-3.09 4.81 6.33-15.77 USD USD 6.61-4.46 8.62 21.32-13.03 USD (Net) 2 USD 1.02-9.48 2.92 14.95-17.59 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 USD Annually 11 Jul 2018 0.518116 1.37% 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 Base Currency Min. Initial Investment NAV per Share Annual Management Fee Distribution Type 03 Dec 1990 LU0039216626 USD USD 1,000 36.09 0.60% 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.