Monthly Commentary Emerging Markets Debt

HSBC Global Asset Management September 2011 Monthly Commentary Emerging Markets Debt For professional clients only Emerging Markets Debt Core (Hard Currency) Supplemental information Returns and characteristics for periods ending September 30, 2011 Returns (%) Emerging Markets Debt Core (Gross of Fees) JP Morgan EMBI Global Yield to Maturity Average Duration (Years) Average Years to Maturity Average Quality* Emerging Markets Debt Core 6.77% 6.38 11.36 BBB- Month -4.93-4.20 Year-to-date 2.63 3.18 JP Morgan EMBI Global 5.96% 6.99 11.58 Source: HSBC Global Asset Management (USA) Inc., JP Morgan. Currency is in USD. Past performance is no guarantee of future results. Returns and characteristics are supplemental to the GIPS compliant information provided at the end. Please see important disclosure at the end of this presentation concerning the impact of investment advisory fees and expenses on performance and index definitions. * S&P average rating. Performance summary The Emerging Markets Debt Core strategy returned -4.93% in September, underperforming the JP Morgan EMBI Global Index, which returned -4.20%. Our overweights in higher yielding countries detracted from performance with the portfolio s overweight to Argentina as the main detractor. Likewise, off-benchmark positions in local bonds and corporate names also detracted from performance, mostly owing to weakness in these higherbeta asset classes amid the sell-off. The portfolio s overweight position to Turkey benefited performance, as the B-rated country significantly outperformed the benchmark. The portfolio remains underweight rate and market weight spread duration as we believe US interest rates will rise. Against this backdrop, we expect credit spreads to tighten and as a result favor higher yielding countries that are less sensitive to US interest rates. Despite market turbulence and volatility, the broad structural positioning of the portfolio remains consistent. BB+ 1 Year 1.11 1.28 Sector Distribution Sovereign (External) Quasi-Sovereign (External) Local Bonds Local FX Corporate Rates & Special Situations Equity Cash 79.49% 19.63% 1.99% 4.63% -5.73% Emerging Markets Local Debt Supplemental information Returns and characteristics for periods ending September 30, 2011 Returns (%) Emerging Markets Local Debt (Gross of Fees) JPM GBI-EM Global Diversified/JPM EMLI+ JPM GBI-EM Global Diversified Yield to Maturity Duration Average Maturity Average Quality* Emerging Markets Local Debt 5.60% 2.59 3.59 BBB Month -8.60-8.72-9.83 Year-to-date -2.46-3.21-2.22 JPM GBI-EM Global Diversified /JPM ELMI+ 5.18% 2.22 3.32 BBB+ Source: HSBC Global Asset Management (USA) Inc., JP Morgan. Currency is in USD. From inception to 31 December 2010, the benchmark consisted of the JPM GBI-EM Global Diversified. Beginning 01 January 2011, the benchmark changed to a 50%/50% blend of the JPM GBI-EM Global Diversified and the JPM ELMI+. Past performance is no guarantee of future results. Returns and characteristics are supplemental to the GIPS compliant information provided at the end. Please see important disclosure at the end of this presentation concerning the impact of investment advisory fees and expenses on performance and index definitions. * S&P average rating. Performance summary The Emerging Markets Local Debt strategy returned -8.60 in September, versus the blended benchmark return of -8.72%. The portfolio s positioning reflects a cautious view on Euro-linked emerging market currencies, as those currencies sold off against the US dollar in another volatile month. Our underweight position in the Hungarian Forint was again the largest contributor to performance. Underweight positions in other Euro-linked countries, such as the Czech Republic and Poland, also benefited performance. Likewise, off-benchmark positions in external debt and corporate names benefited performance. Underweight positions in Columbia and Indonesia detracted from performance. The portfolio s exposure is generally long currencies that we feel have sold off too aggressively and offer attractive valuation. 1 Year -2.22-3.59-2.60 Asia Eastern Europe Latin America Middle East/ North Africa Other Regional Distribution 35.96% 32.03% 26.75% 9.27% 5.63%

2 Emerging Markets Debt Total Return Supplemental information Returns and characteristics for periods ending September 30, 2011 Returns (%) Emerging Markets Debt Total Return (Gross of Fees) Merrill Lynch 3 Month Constant Maturity LIBOR Yield to Maturity Average Duration (Years) Average Years to Maturity Average Quality* Month -6.11 0.02 Year-to-date -4.91 0.20 Emerging Markets Debt Total Return (Gross Invested) 6.83% 1.48 4.77 BBB 1 Year -4.28 0.27 Gross Strategy Distribution Sovereign (External) Quasi-Sovereign (External) 49.82% 21.03% Local Rates 5.53% Local FX 23.57% FX Options Corporate 25.82% Special Situations 0.20% Equity 4.04% Long Exposure Short Exposure 113.57% 16.44% Pair Trades Cash Source: HSBC Global Asset Management (USA) Inc., JP Morgan. Currency is in USD. Past performance is no guarantee of future results. Returns and characteristics are supplemental to the GIPS compliant information provided at the end. Please see important disclosure at the end of this presentation concerning the impact of investment advisory fees and expenses on performance. * S&P average rating. Performance Summary The Emerging Markets Debt Total Return strategy returned -6.11% in September. The portfolio s exposure to higher yielding quasi-sovereign and corporate names detracted from performance as these asset classes suffered heavily in September s sell off. Argentine and Venezuelan hard currency bonds, both significant positions in the portfolio, also detracted from performance. Further, the portfolio did not benefit from the rally in US treasuries as all hard currency duration risk was hedged. At the beginning of September the portfolio had a net neutral currency position. During the month we felt the sell-off was overdone and currencies had fully depreciated. We therefore began to unwind our short positions to Euro-related currencies and ended the month net long (FX) currencies. We continue to believe that the US and emerging market economies will avoid recession (increasingly priced by the market) and that current valuations support dialing up the portfolio s overall risk profile. Emerging Markets Corporate Debt Supplemental information Returns and characteristics for periods ending September 30, 2011 Returns (%) Emerging Markets Corporate Debt (Gross of Fees) JPM CEMBI Diversified Emerging Markets Corporate Debt Month -6.80-5.76 Year-to-date 1 Year -3.77 NA -1.76 NA JPM CEMBI Diversified Regional Distribution Asia Eastern Europe Latin America 35.38% 18.19% 28.30% Yield to Maturity Duration Average Maturity Average Quality* 8.59% 4.58 6.11 BB+ 6.61% 5.88 8.80 BBB Middle East/ North Africa Other Cash 15.91% 2.22% Source: HSBC Global Asset Management (USA) Inc., JP Morgan. Currency is in USD. Past performance is no guarantee of future results. Returns and characteristics are supplemental to the GIPS compliant information provided at the end. Please see important disclosure at the end of this presentation concerning the impact of investment advisory fees and expenses on performance. * S&P average rating. Performance summary The Emerging Markets Corporate Debt strategy returned -6.80% in September, underperforming the JP Morgan CEMBI Diversified Index, which returned -5.76%. The portfolio s underperformance was due in large part to significant exposure in high yield B and BB rated corporates, which declined amid the market sell off. Exposures to Indonesian corporates were the largest detractors as this basket of securities fell by over 6%. The portfolio s exposure to Chinese corporates was one of the few positive contributors to performance. The portfolio maintained a duration underweight.

3 Emerging Markets Investment Grade Debt Supplemental information Returns and characteristics for periods ending September 30, 2011 Returns (%) Emerging Markets Investment Grade Debt (Gross of Fees) JPM IG Custom Month -7.77-7.52 Year-to-date 0.61 0.62 1 Year NA NA Asia Eastern Europe Regional Distribution 14.02% 30.26% Yield to Maturity Duration Average Maturity Average Quality* Emerging Markets Investment Grade Debt 6.06% 5.35 8.44 BBB JPM IG Custom 5.61% 5.83 8.99 BBB+ Latin America Middle East/ North Africa Source: HSBC Global Asset Management (USA) Inc., JP Morgan. Currency is in USD. Past performance is no guarantee of future results. Returns and characteristics are supplemental to the GIPS compliant information provided at the end. Please see important disclosure at the end of this presentation concerning the impact of investment advisory fees and expenses on performance. * S&P average rating. Other Cash 50.89% 3.63% -7.57% Performance summary The Emerging Markets Investment Grade Debt strategy returned -7.77% in September, underperforming the custom benchmark, which returned -7.52%. The portfolio s structural underweight to Hungary benefited performance as Hungarian bonds underperformed the reference benchmark. Our overweight to Russia detracted from performance. We continue to believe that US Treasury yields show more potential for widening. This view is reflected through duration management; the portfolio maintained a duration underweight position and neutral spread duration as we feel credit spreads have room for further compression. Finally, we reduced our underweight positions in Euro-sensitive currencies as we believe these currencies have fully depreciated and now offer attractive valuation. Review and market outlook September was a volatile month for Emerging Markets due to increased worries over the Eurozone debt crisis as well as the state of the global economy. The concern over the deterioration of developed markets caused a general risk-averse environment resulting in a significant sell-off in emerging markets despite their relative strength. We believe that the sell-off has been exaggerated; pricing in a recession that we feel is unlikely to occur. Emerging market hard currency debt assets saw significant losses with spreads widening from 353 bps at the end of August to 464 bps at the end of September. This was on top of 53 bps of spread widening by August month-end. Some of this spread widening was offset by the continuing US Treasury rally that saw 10-year yields falling to 1.9%. Spread levels today are at the same level as at the end of September 2008, after the collapse of Lehman Brothers and the beginning of the economic crisis. We feel that the fundamentals of emerging countries are strong and do not warrant these pricing levels. The monthly loss to the JP Morgan EMBI Global (hard currency) Index was -4.2%. High yielding countries underperformed in this risk-off environment, with Argentina being the worst performer at -15.4%. We believe that one of the major causes for the sharp decline in prices this month was a lack of liquidity, especially in non-investment grade assets. We remain confident in the fundamentals of these assets and believe some of the decline is largely due to technical issues. The European region was the biggest underperformer at -5.5%, with the Ukraine and Belarus performing the worst. The only positive performers for the month were Ecuador (+0.75%) and Lebanon (+0.71%). Emerging market corporate bonds were down -5.8% (JPM CEMBI Diversified Index) for the month, with high yield corporates falling -11.2% in September. All regions suffered losses with European corporates suffering the worst. Bid-offer spreads widened on less liquid names. We believe that the nature of the sell-off in emerging market fixed income is, to a large extent, technical rather than driven by substantial emerging market fundamental issues. We remain constructive on emerging market assets, and believe valuations justify increasing our risk exposure. We believe that the United States and emerging market economies will avoid recession that is increasingly priced by the market. We do not believe the current wide spreads are warranted and continue to emphasize credit sensitive issuers that we believe will continue to service their debts without stress and show potential for spread compression. 10-year US Treasuries reached recent lows this month with yields showing more potential for widening, rather than tightening significantly. As a result, we continue to construct our portfolios to be less sensitive to US Treasury yield widening.

4 IMPORTANT INFORMATION HSBC Global Asset Management is a group of companies in many countries and territories throughout the world that are engaged in investment advisory and fund management activities, which are ultimately owned by HSBC Holdings plc. Statistical information pertaining to personnel, as well as assets, may be aggregated in reference to the above-mentioned group of companies including satellite affiliates unless indicated otherwise. Funds under advice (other than direct management) may comprise assets managed by affiliates of HSBC Global Asset Management, which provide advice in the form of portfolio construction, sector allocations and / or stock list recommendations. HSBC Global Asset Management (USA) Inc. ("AMUS") is an investment adviser registered with the US Securities and Exchange Commission. This material has been prepared or is distributed for informational purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading or investment strategy. All opinions and assumptions included in this presentation are based upon current market conditions as of the date of this presentation and are subject to change. All investments involve risk including the loss of principal. This presentation contains data compiled from third party sources believed to be reliable, but the accuracy of such data has not been verified. Any portfolio characteristics shown herein, including position sizes and sector allocations among others, are generally averages and are for illustrative purposes only and do not reflect the investments of an actual portfolio unless otherwise noted. The investment guidelines of an actual portfolio may permit or restrict investments that are materially different in size, nature and risk from those shown. International investing involves a greater degree of risk and increased volatility due to various factors which can impact performance. Any forecast, projection or target contained in this presentation is for information purposes only and is not guaranteed in any way. HSBC accepts no liability for any failure to meet such forecasts, projections or targets. The products and/or services discussed are: Not a deposit or other obligation of the bank or any of its affiliates; Not FDIC insured or insured by any federal government agency of the United States; Not obligations guaranteed by the bank or any of its affiliates; and are subject to investment risk, including possible loss of principal invested. Benchmark descriptions The JP Morgan EMBI-Global Index is an unmanaged index that tracks debt securities of emerging markets. It includes USD-denominated Brady bonds, Eurobonds, and traded loans issued by sovereign and quasi-sovereign entities, and is a traditional market-capitalization weighted index. The JP Morgan GBI-EM Diversified Index provides a measure of local currency denominated, fixed rate, government debt issued in emerging markets. Weightings among the countries are more evenly distributed within the diversified index compared to it s three main composite indices consisting of the GBI-EM, GBI EM Global, and GBI EM Broad indices. The JP Morgan ELMI+ tracks total return for local denominated money market instruments in the emerging markets. The Index employs a liquidity sensitive weighting scheme, which uses exports plus imports as a base. The JP Morgan CEMBI is a market capitalization weighted index consisting of US-denominated Emerging Market corporate bonds, and also a liquid global corporate benchmark representing Asia, Latin America, Europe and the Middle East/Africa. The Diversified variant provides a more evenly distributed weighting among countries where larger country weights are decreased, and smaller country weights are increased. Gross performance information Performance data is calculated gross of fees and assumes the reinvestment of dividends, income and any capital gains and is net of transaction costs. The results are shown before the deduction of investment advisory fees and other expenses, which would reduce a return. Information about investment advisory fees is available in our Form ADV Part 2A, which is available upon request. The following hypothetical illustrates how investment advisory fees, compounded over time, could impact performance. Assuming a portfolio s annual rate of return is 15% for 5 years and the annual investment advisory fee is 50 basis points, the gross cumulative five-year return would be 101.1% and the five-year return net of fees would be 96.8%. Past performance is not indicative of future performance. Copyright 2011. HSBC Global Asset Management (USA) Inc. All rights reserved.

5 SUPPLEMENTAL GIPS REPORT Emerging Markets Debt Report To September 30, 2011 Inception Date September 30, 1998 Benchmark JP Morgan Emerging Markets Bond Index Global Emerging Markets Debt Local Debt Report To September 30, 2011 Inception Date July 31, 2007 Benchmark Customized Benchmark Emerging Markets Debt Total Return Report To September 30, 2011 Inception Date October 31, 1998 Benchmark Merrill Lynch 3 Month Constant Maturity Returns and characteristics are supplemental to the GIPS compliant information provided on the following pages. Please see important disclosure in the previous Important Information section concerning the impact of investment advisory fees and expenses on performance and benchmark definitions.

6 SUPPLEMENTAL GIPS REPORT Emerging Markets Debt Corporate (Unconstrained) Report To September 30, 2011 Inception Date December 31, 2010 Benchmark JP Morgan Corporate EMBI Diversified Index Emerging Markets Debt Investment Grade Report To September 30, 2011 Inception Date December 31, 2010 Benchmark 50% JPM EMBI Global Invest Grade/50% JPM GBI-EM Global Div Invest Returns and characteristics are supplemental to the GIPS compliant information provided on the following pages. Please see important disclosure in the previous Important Information section concerning the impact of investment advisory fees and expenses on performance and benchmark definitions.

7 GIPS REPORT Emerging Markets Debt Report To June 30, 2011 Inception Date September 30, 1998 Benchmark JP Morgan Emerging Markets Bond Index Global HSBC Global Asset Management (the Firm) claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. The Firm has been independently verified for the periods 1 January 2006 through 31 December 2010. The resultant verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. The composite creation date is 31/08/2006 A complete list and description of all Firm composites, as well as additional information regarding policies for calculating and reporting returns, is available on request from the contact shown on the document or presentation to which this report is attached. Prior to 2011 HSBC Global Asset Management maintained eight distinct GIPS Firms. The Firms were defined by legal business entity. All existing group Firms were thereafter amalgamated into a single global Firm definition. Historical performance shown prior to January 1, 2006 reflects the performance of a legacy Firm composite. HSBC Global Asset Management (the Firm) consists of discretionary accounts and sub-accounts managed as discrete mandates within specified local HSBC Global Asset Management entities. The Firm comprises the following: HSBC Global Asset Management (Deutschland) GmbH, HSBC Global Asset Management (Hong Kong) Limited, HSBC Global Asset Management (USA) Inc., HSBC Global Asset Management (France), HSBC Global Asset Management (Canada) Limited, and HSBC Global Asset Management (UK) Limited. The Firm excludes portfolios and funds managed by the Alternative Investments teams, LDI products, French regulated employee (FCPE) schemes, and private client accounts as these products operate under a materially different philosophy and process and /or regulatory environment. The Emerging Markets Debt composite consists of only actual, fee paying, fully discretionary accounts managed by HSBC Global Asset Management (USA) Inc. The underlying strategy may invest in investment grade, non-investment grade, and unrated emerging markets fixed income securities and other financial instruments either issued or guaranteed by governments, government agencies, supranational bodies of emerging markets countries, or emerging market companies, primarily denominated in US dollars. Investment results are measured versus the JP Morgan EMBI Global Index. Performance returns are calculated gross of investment management fees and other non-trading related expenses. The performance presented in this composite report is calculated net of unreclaimable withholding taxes. Form ADV, Custody fees, performance fees Please refer to Part 2A of HSBC Global Asset Management (USA) Inc's Form ADV for additional information on advisory fees. Actual client fees may be less. Annual custody fees are not included. Fees are negotiable at the discretion of HSBC Global Asset Management (USA) Inc. Warnings: The historical performance presented in these reports should not be seen as an indication of future performance; The value of your investment and any income from it can go down as well as up. Where overseas securities are held the rate of exchange may cause the value of the investment to go down as well as up. Investors should also be aware that other performance calculation methods may produce different results, and that the results for specific portfolios and for different periods may vary from the returns presented in these reports; Comparisons of investment returns should consider qualitative circumstances and should be made only to portfolios with generally similar investment objectives. In the USA, this information is intended for use solely in one-on-one presentations Significant Event - Benchmark Structural Change In May 2008, Brazil's credit rating was elevated to investment grade causing the JPM EMBI Global Index average rating to also become investment grade. Brazil comprises 15% of the JPM index and has a significant impact in the Emerging Market space. Due to this change, a portfolio was removed from the composite because its has a client specific benchmark that is comprised of only non-investment grade EMD countries and as such the portfolio's benchmark no longer reflects the investment strategy represented by the composite. The impact of this change in the benchmark had a dramatic effect throughout the 3rd & 4th quarters of 2008 as the investment grade component of EMD considerably outperformed the below investment grade component. To coincide with the timing of this event, the HSBC Global Asset Management GIPS Committee recommended removal of the account from the composite from 1 June 2008. The HSBC Global Asset Management Executive Committee approved this move on 24 March 2009. Significant Event - Atlantic Advisors - Atlantic Advisors was acquired by HSBC Investments (USA) Inc. in June 2005. The members of Atlantic Advisors are now the global emerging markets fixed income team at HSBC Global Asset Management (USA) Inc. (formerly Halbis Capital Management (USA) Inc.). The composite performance results represent historical composite returns produced by the global emerging markets fixed income team while employed at the previous advisor linked, pursuant to GIPS Guidelines, with the performance results produced by the global emerging markets fixed income team since joining the firm. Exchange Rates - The exchange rates used by accounts in this composite may be different than those used by the benchmark. The management process for accounts in this composite uses leverage and short sales instruments as a source of potential return. The firm also may employ the following derivative instruments both for hedging and return enhancement purposes; Options on Securities & Securities Indices, Currency transactions, Repurchase agreements, Interest rate swaps, caps, floors, and collars, and Forward contracts on securities or currencies. The firm also reserves the right to use new derivative techniques and instruments that may be developed in the future. Usage of Pre 2000 data The performance for periods presented prior to 1 January 2000 is not GIPS compliant as not all funds managed by the Firm have been allocated to composites for these periods. All funds which are eligible for inclusion in this composite have been included in the performance shown. Please see important disclosure in the previous Important Information section concerning the impact of investment advisory fees and expenses on performance and benchmark definitions.

8 GIPS REPORT Emerging Markets Debt Local Debt Emerging Markets Debt Local Debt Report To June 30, 2011 Inception Date July 31, 2007 Benchmark Customized Benchmark HSBC Global Asset Management (the Firm) claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. The Firm has been independently verified for the periods 1 January 2006 through 31 December 2010. The resultant verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. The composite creation date is 29/04/2008 A complete list and description of all Firm composites, as well as additional information regarding policies for calculating and reporting returns, is available on request from the contact shown on the document or presentation to which this report is attached. Prior to 2011 HSBC Global Asset Management maintained eight distinct GIPS Firms. The Firms were defined by legal business entity. All existing group Firms were thereafter amalgamated into a single global Firm definition. Historical performance shown prior to January 1, 2006 reflects the performance of a legacy Firm composite. HSBC Global Asset Management (the Firm) consists of discretionary accounts and sub-accounts managed as discrete mandates within specified local HSBC Global Asset Management entities. The Firm comprises the following: HSBC Global Asset Management (Deutschland) GmbH, HSBC Global Asset Management (Hong Kong) Limited, HSBC Global Asset Management (USA) Inc., HSBC Global Asset Management (France), HSBC Global Asset Management (Canada) Limited, and HSBC Global Asset Management (UK) Limited. The Firm excludes portfolios and funds managed by the Alternative Investments teams, LDI products, French regulated employee (FCPE) schemes, and private client accounts as these products operate under a materially different philosophy and process and /or regulatory environment. The Emerging Markets Debt - Local Debt composite consists of only actual, fee paying, fully discretionary accounts managed by HSBC Global Asset Management (USA) Inc. The underlying strategy may invest in emerging markets fixed income securities and other financial instruments issued primarily by governments, their agencies, local authorities and corporate entities primarily denominated in local currencies, and emerging market foreign exchange. The base currency of the composite is USD. Investment results are measured versus a blended benchmark 50% JP Morgan GBI-EM Global Diversified Unhedged Index and 50% JP Morgan Emerging Local Markets ELMI Plus Index. Performance returns are calculated gross of investment management fees and other non-trading related expenses. The performance presented in this composite report is calculated net of unreclaimable withholding taxes. Form ADV, Custody fees, performance fees Please refer to Part 2A of HSBC Global Asset Management (USA) Inc's Form ADV for additional information on advisory fees. Actual client fees may be less. Annual custody fees are not included. Fees are negotiable at the discretion of HSBC Global Asset Management (USA) Inc. Warnings: The historical performance presented in these reports should not be seen as an indication of future performance; The value of your investment and any income from it can go down as well as up. Where overseas securities are held the rate of exchange may cause the value of the investment to go down as well as up. Investors should also be aware that other performance calculation methods may produce different results, and that the results for specific portfolios and for different periods may vary from the returns presented in these reports; Comparisons of investment returns should consider qualitative circumstances and should be made only to portfolios with generally similar investment objectives. In the USA, this information is intended for use solely in one-on-one presentations The JP Morgan GBI - EM Global Diversified is a definitive local emerging markets debt benchmark that tracks local currency government bonds issued by emerging markets. It limits the weights of those index countries with larger debt stocks and redistributes those weights to countries with smaller weights. The maximum weight to a country is capped at 10%. the excess is redistributed to those countries that have a market capitalization of less than 10%. The portion that is redistributed is based on the market capitalization of each country, which preserves the relative size of each market within the index. Countries to be included must be classified as having a low or middle per capita income by the World Bank for at least two consecutive years, based on data lagged one year. The JPMorgan Emerging Local Markets ELMI Plus Index tracks US Dollar total returns for local-currency-denominated money market instruments in 24 emerging markets. This includes coverage of the following: Argentina, Brazil, Chile, China, Czech Republic, Egypt, Greece, Hong Kong, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Philippines, Poland, Russia, Singapore, Slovak Republic, South Africa, Taiwan, Thailand, Turkey and Venezuela. As of January 1, 2011, the benchmark for the Emerging Market Debt - Local Debt changed from JP Morgan GBI-EM Global Diversified Unhedged Index to a blend of 50% JP Morgan GBI-EM Global Diversified Unhedged Index and 50% JP Morgan Emerging Local Markets ELMI Plus rebalanced monthly. The reason for the change is due to the strategy's investment/ holdings to fixed income instruments and currencies in the Emerging Markets. Name Change In December 2008, the EMD - Local Debt changed its from EMD - Local Currency. Significant Event - Atlantic Advisors - Atlantic Advisors was acquired by HSBC Investments (USA) Inc. in June 2005. The members of Atlantic Advisors are now the global emerging markets fixed income team at HSBC Global Asset Management (USA) Inc. (formerly Halbis Capital Management (USA) Inc.). The composite performance results represent historical composite returns produced by the global emerging markets fixed income team while employed at the previous advisor linked, pursuant to GIPS Guidelines, with the performance results produced by the global emerging markets fixed income team since joining the firm. Exchange Rates - The exchange rates used by accounts in this composite may be different than those used by the benchmark. The management process for accounts in this composite uses leverage and short sales instruments as a source of potential return. The firm also may employ the following derivative instruments both for hedging and return enhancement purposes; Options on Securities & Securities Indices, Currency transactions, Repurchase agreements, Interest rate swaps, caps, floors, and collars, and Forward contracts on securities or currencies. The firm also reserves the right to use new derivative techniques and instruments that may be developed in the future. Please see important disclosure in the previous Important Information section concerning the impact of investment advisory fees and expenses on performance and benchmark definitions.

9 GIPS REPORT Emerging Markets Debt Total Return Report To June 30, 2011 Inception Date October 31, 1998 Benchmark Merrill Lynch 3 Month Constant Maturity HSBC Global Asset Management (the Firm) claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. The Firm has been independently verified for the periods 1 January 2006 through 31 December 2010. The resultant verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. The composite creation date is 31/08/2006 A complete list and description of all Firm composites, as well as additional information regarding policies for calculating and reporting returns, is available on request from the contact shown on the document or presentation to which this report is attached. Prior to 2011 HSBC Global Asset Management maintained eight distinct GIPS Firms. The Firms were defined by legal business entity. All existing group Firms were thereafter amalgamated into a single global Firm definition. Historical performance shown prior to January 1, 2006 reflects the performance of a legacy Firm composite. HSBC Global Asset Management (the Firm) consists of discretionary accounts and sub-accounts managed as discrete mandates within specified local HSBC Global Asset Management entities. The Firm comprises the following: HSBC Global Asset Management (Deutschland) GmbH, HSBC Global Asset Management (Hong Kong) Limited, HSBC Global Asset Management (USA) Inc., HSBC Global Asset Management (France), HSBC Global Asset Management (Canada) Limited, and HSBC Global Asset Management (UK) Limited. The Firm excludes portfolios and funds managed by the Alternative Investments teams, LDI products, French regulated employee (FCPE) schemes, and private client accounts as these products operate under a materially different philosophy and process and /or regulatory environment. The Emerging Markets Debt - Total Return composite consists of only actual, fee paying, fully discretionary accounts managed by HSBC Global Asset Management (USA) Inc. The underlying strategy is not constrained by benchmark and may hold long and short positions in emerging market fixed income, equities, currencies, and other financial instruments. Given the strategy s absolute return orientation, cash may be actively used as a defensive tactic to protect principal. The base currency of the composite is USD. Investment results are measured against the Merrill Lynch 3 month LIBOR Constant Maturity Index. Performance returns are calculated gross of investment management fees and other non-trading related expenses. The performance presented in this composite report is calculated net of unreclaimable withholding taxes. Form ADV, Custody fees, performance fees Please refer to Part 2A of HSBC Global Asset Management (USA) Inc's Form ADV for additional information on advisory fees. Actual client fees may be less. Annual custody fees are not included. Fees are negotiable at the discretion of HSBC Global Asset Management (USA) Inc. Warnings: The historical performance presented in these reports should not be seen as an indication of future performance; The value of your investment and any income from it can go down as well as up. Where overseas securities are held the rate of exchange may cause the value of the investment to go down as well as up. Investors should also be aware that other performance calculation methods may produce different results, and that the results for specific portfolios and for different periods may vary from the returns presented in these reports; Comparisons of investment returns should consider qualitative circumstances and should be made only to portfolios with generally similar investment objectives. In the USA, this information is intended for use solely in one-on-one presentations Significant Event - Atlantic Advisors - Atlantic Advisors was acquired by HSBC Investments (USA) Inc. in June 2005. The members of Atlantic Advisors are now the global emerging markets fixed income team at HSBC Global Asset Management (USA) Inc. (formerly Halbis Capital Management (USA) Inc.). The composite performance results represent historical composite returns produced by the global emerging markets fixed income team while employed at the previous advisor linked, pursuant to GIPS Guidelines, with the performance results produced by the global emerging markets fixed income team since joining the firm. Exchange Rates - The exchange rates used by accounts in this composite may be different than those used by the benchmark. The management process for accounts in this composite uses leverage and short sales instruments as a source of potential return. The firm also may employ the following derivative instruments both for hedging and return enhancement purposes; Options on Securities & Securities Indices, Currency transactions, Repurchase agreements, Interest rate swaps, caps, floors, and collars, and Forward contracts on securities or currencies. The firm also reserves the right to use new derivative techniques and instruments that may be developed in the future. Usage of Pre 2000 data The performance for periods presented prior to 1 January 2000 is not GIPS compliant as not all funds managed by the Firm have been allocated to composites for these periods. All funds which are eligible for inclusion in this composite have been included in the performance shown. Please see important disclosure in the previous Important Information section concerning the impact of investment advisory fees and expenses on performance and benchmark definitions.

10 GIPS REPORT Emerging Markets Debt Corporate (Unconstrained) Report To June 30, 2011 Inception Date December 31, 2010 Benchmark JP Morgan Corporate EMBI Diversified Index HSBC Global Asset Management (the Firm) claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. The Firm has been independently verified for the periods 1 January 2006 through 31 December 2010. The resultant verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. The composite creation date is 15/07/2011 A complete list and description of all Firm composites, as well as additional information regarding policies for calculating and reporting returns, is available on request from the contact shown on the document or presentation to which this report is attached. Prior to 2011 HSBC Global Asset Management maintained eight distinct GIPS Firms. The Firms were defined by legal business entity. All existing group Firms were thereafter amalgamated into a single global Firm definition. Historical performance shown prior to January 1, 2006 reflects the performance of a legacy Firm GIPS composite. HSBC Global Asset Management (the Firm) consists of discretionary accounts and sub-accounts managed as discrete mandates within specified local HSBC Global Asset Management entities. The Firm comprises the following: HSBC Global Asset Management (Deutschland) GmbH, HSBC Global Asset Management (Hong Kong) Limited, HSBC Global Asset Management (USA) Inc., HSBC Global Asset Management (France), HSBC Global Asset Management (Canada) Limited, and HSBC Global Asset Management (UK) Limited. The Firm excludes portfolios and funds managed by the Alternative Investments teams, LDI products, French regulated employee (FCPE) schemes, and private client accounts as these products operate under a materially different philosophy and process and /or regulatory environment. The Emerging Markets Debt - Corporate (Unconstrained) composite consists of only actual, fee paying, fully discretionary accounts managed by HSBC Global Asset Management (USA) Inc. The underlying strategy may invest in investment grade, non-investment grade, and unrated emerging markets fixed income securities and other financial instruments issued by emerging market companies, denominated in US dollars, and local currencies. Derivatives may be used for both hedging purposes and/or to obtain outright exposure. The base currency of the composite is USD. Investment results are measured versus the JP Morgan CEMBI Diversified Index. Performance returns are calculated gross of investment management fees and other non-trading related expenses. The performance presented in this composite report is calculated net of unreclaimable withholding taxes. Form ADV, Custody fees, performance fees Please refer to Part 2A of HSBC Global Asset Management (USA) Inc's Form ADV for additional information on advisory fees. Actual client fees may be less. Annual custody fees are not included. Fees are negotiable at the discretion of HSBC Global Asset Management (USA) Inc. Warnings: The historical performance presented in these reports should not be seen as an indication of future performance; The value of your investment and any income from it can go down as well as up. Where overseas securities are held the rate of exchange may cause the value of the investment to go down as well as up. Investors should also be aware that other performance calculation methods may produce different results, and that the results for specific portfolios and for different periods may vary from the returns presented in these reports; Comparisons of investment returns should consider qualitative circumstances and should be made only to portfolios with generally similar investment objectives. In the USA, this information is intended for use solely in one-on-one presentations Significant Event - Atlantic Advisors: Atlantic Advisors was acquired by HSBC Investments (USA) Inc. in June 2005. The members of Atlantic Advisors are now the global emerging markets fixed income team at HSBC Global Asset Management (USA) Inc. (formerly Halbis Capital Management (USA) Inc.). The composite performance results represent historical composite returns produced by the global emerging markets fixed income team while employed at the previous advisor linked, pursuant to GIPS Guidelines, with the performance results produced by the global emerging markets fixed income team since joining the firm. Exchange Rates The exchange rates used by accounts in this composite may be different than those used by the benchmark. Please see important disclosure in the previous Important Information section concerning the impact of investment advisory fees and expenses on performance and benchmark definitions.

11 GIPS REPORT Emerging Markets Debt Investment Grade Report To June 30, 2011 Inception Date December 31, 2010 Benchmark 50% JPM EMBI Global Invest Grade/50% JPM GBI-EM Global Div Invest HSBC Global Asset Management (the Firm) claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. The Firm has been independently verified for the periods 1 January 2006 through 31 December 2010. The resultant verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. The composite creation date is 30/03/2011 A complete list and description of all Firm composites, as well as additional information regarding policies for calculating and reporting returns, is available on request from the contact shown on the document or presentation to which this report is attached. Prior to 2011 HSBC Global Asset Management maintained eight distinct GIPS Firms. The Firms were defined by legal business entity. All existing group Firms were thereafter amalgamated into a single global Firm definition. Historical performance shown prior to January 1, 2006 reflects the performance of a legacy Firm GIPS composite. HSBC Global Asset Management (the Firm) consists of discretionary accounts and sub-accounts managed as discrete mandates within specified local HSBC Global Asset Management entities. The Firm comprises the following: HSBC Global Asset Management (Deutschland) GmbH, HSBC Global Asset Management (Hong Kong) Limited, HSBC Global Asset Management (USA) Inc., HSBC Global Asset Management (France), HSBC Global Asset Management (Canada) Limited, and HSBC Global Asset Management (UK) Limited. The Firm excludes portfolios and funds managed by the Alternative Investments teams, LDI products, French regulated employee (FCPE) schemes, and private client accounts as these products operate under a materially different philosophy and process and /or regulatory environment. The Emerging Markets Debt - Investment Grade composite consists of only actual, fee paying, fully discretionary accounts managed by HSBC Global Asset Management (USA) Inc. They underlying strategy may invest in investment grade emerging markets fixed income securities and other financial instruments either issued by emerging market companies, denominated in US dollars, or in emerging market local currency or bonds which are issued or guaranteed by governments, government agencies and supranational bodies of emerging markets. Investment results are measured versus a blended benchmark 50% JP Morgan EMBI Global Investment Grade Index and 50% JPMorgan GBI-EM Global Diversified Investment Grade Index. Performance returns are calculated gross of investment management fees and other non-trading related expenses. The performance presented in this composite report is calculated net of unreclaimable withholding taxes. Form ADV, Custody fees, performance fees Please refer to Part 2A of HSBC Global Asset Management (USA) Inc's Form ADV for additional information on advisory fees. Actual client fees may be less. Annual custody fees are not included. Fees are negotiable at the discretion of HSBC Global Asset Management (USA) Inc. Warnings: The historical performance presented in these reports should not be seen as an indication of future performance; The value of your investment and any income from it can go down as well as up. Where overseas securities are held the rate of exchange may cause the value of the investment to go down as well as up.investors should also be aware that other performance calculation methods may produce different results, and that the results for specific portfolios and for different periods may vary from the returns presented in these reports; Comparisons of investment returns should consider qualitative circumstances and should be made only to portfolios with generally similar investment objectives. In the USA, this information is intended for use solely in one-on-one presentations Significant Event - Atlantic Advisors: Atlantic Advisors was acquired by HSBC Investments (USA) Inc. in June 2005. The members of Atlantic Advisors are now the global emerging markets fixed income team at HSBC Global Asset Management (USA) Inc. (formerly Halbis Capital Management (USA) Inc.). The composite performance results represent historical composite returns produced by the global emerging markets fixed income team while employed at the previous advisor linked, pursuant to GIPS Guidelines, with the performance results produced by the global emerging markets fixed income team since joining the firm. Exchange Rates The exchange rates used by accounts in this composite may be different than those used by the benchmark. Please see important disclosure in the previous Important Information section concerning the impact of investment advisory fees and expenses on performance and benchmark definitions.

12 Important Information This document is intended for Professional Clients only and should not be distributed to or relied upon by Retail Clients The contents of this document are confidential and may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. The material contained in this document is for information only and does not constitute investment advice or a recommendation to any reader of this material to buy or sell investments. HSBC Global Asset Management (UK) Limited has based this document on information obtained from sources it believes to be reliable but which it has not independently verified. HSBC Global Asset Management (UK) Limited and HSBC Group accept no responsibility as to its accuracy or completeness. This document is intended for discussion only and shall not be capable of creating any contractual or other legal obligations on the part of HSBC Global Asset Management (UK) Limited or any other HSBC Group company. Care has been taken to ensure the accuracy of this document but HSBC Global Asset Management (UK) Limited accepts no responsibility for any errors or omissions contained therein This document and any issues or disputes arising out of or in connection with it (whether such disputes are contractual or non-contractual in nature, such as claims in tort, for breach of statute or regulation or otherwise) shall be governed by and construed in accordance with English law. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC Global Asset Management (UK) Limited accepts no liability for any failure to meet such forecast, projection or target. The value of investments and any income from them can go down as well as up. Where overseas investments are held the rate of currency exchange may cause the value of such investments to go down as well as up. Stock market investments should be viewed as a medium to long term investment and should be held for at least five years. The value of the underlying assets is strongly affected by interest rate fluctuations and by changes in the credit ratings of the underlying issuer of the assets. The sub-fund can invest in sub investment grade bonds, which may produce a higher level of income than investment grade bonds, but carry increased risk of default on repayment. Any performance information shown refers to the past should not be seen as an indication of future returns. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in established markets. This document has been produced by HSBC Global Asset Management (USA) Inc and has been approved for issue in the UK by HSBC Global Asset Management (UK) Limited, who are authorised and regulated by the Financial Services Authority. www.assetmanagement.hsbc.com/uk 21413/1111/FP11-1851