HSBC Global Investment Funds - Asia ex Japan Equity Smaller Companies Share Class (Active - Closed to All Investors) 28 Feb 2018 28/02/2018 Fund Objective and Strategy The Fund aims to provide long-term capital growth by investing in shares (or securities that are similar to shares) of Asian (excluding Japanese) smaller companies. These companies are deemed smaller, as measured by their market capitalisation (the market value of their shares). In normal market conditions, the Fund invests at least 90% in the shares of companies that are based in, or carry out most of their business in, Asia (excluding Japan) while a minimum of 70% of the Fund s assets is invested in smaller companies defined as those in the bottom 25% by market capitalisation. The Fund invests in both developed and emerging markets in Asia. 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 including other sub-funds of HSBC Global Investment Funds. See the Prospectus for a full description of the investment objectives and derivative usage. SG Performance (%) YTD 1M 3M 1Y 3Y¹ 5Y¹ Since Inception¹ Share Class Details UCITS V Compliant USD 3.30-2.85 5.15 27.66 14.68 14.56 10.98 Subscription Mode USD (Net) 2-2.13-7.95-0.37 20.96 12.64 13.33 10.69 Distribution Type Distributing 0.74-4.60 3.18 22.66 6.80 5.67 8.11 Benchmark USD Distribution Frequency Annually Dealing Frequency Daily Calendar Year Valuation Time 17:00 Luxembourg 2013 2014 2015 2016 2017 Performance (%) Min. Initial Investment USD 1,000 USD 24.46 9.54 0.69 10.33 37.31 USD (Net) 2 17.93 3.79-4.60 4.54 30.10 Annual Management Fee 1.49% Max. Initial Charge 5.25% 6.89 2.26-3.52-2.28 33.52 Benchmark USD Base Currency USD Domicile Luxembourg 3-Year Risk ISIN LU0082770016 Measures Benchmark Characteristics Fund Benchmark Inception Date 21 Nov 1997 Number of Holdings NAV per Share USD 75.26 Volatility 16.8% 15.1% 131 1668 ex Cash Fund Size USD 1,611,316,203 Tracking Avg Market Bloomberg Ticker HSBASOI LX 5.7% - Error Cap (USD 2,247 1,538 MSCI AC Asia ex Japan mil) Benchmark Small Cap Net Information Ratio 1.38 - Beta 1.05 - Manager Yes Cash / SRS (Supplementary Retirement Scheme) Elina Fung Alex Kwan 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 Investment Risk: The value of investments and any income from them can go down as well as up and you may not get back the amount originally invested. Concentration Risk: Funds with a narrow or concentrated investment strategy are more sensitive to changes in the market value of a single issuer. Derivative Risk: A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. Investing in derivatives involves leverage. High degrees of leverage can magnify the impact of asset price or rate movements. Emerging Market Risk: Emerging markets are subject to greater illiquidity and volatility than developed markets. Exchange Rate Risk: Changes in currency exchange rates will cause the value of investments to fluctuate. 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 The MSCI Asia ex Japan small cap index pared back some of the strong gains in January, falling 4.6% in USD terms in February as markets were concerned by the prospects of higher inflation and the potential for faster than expected rate rises. India, China and Korea were the worst performing markets. A bank fraud at Punjab National Bank and the announcement of a long term capital gains tax on equities weighed heavily on investor sentiment in India. Offshore- Chinese small caps fell 12% early in the month but recovered somewhat by month end as the earnings results was generally favourable and south bound flows on the StockConnect set a new daily record on Feb 27. Korea was weighed down by a generally disappointing earnings season. Malaysian small caps fared the best in the region but also ended the month in negative territory. Fund Review The fund delivered a negative absolute return but outperformed the benchmark in February as strong stock selection in healthcare, materials and industrials was offset by detracting selection in IT and consumer discretionary. Our holding in Korean dental implant provider, Dentium, surged on stronger than expected sales in its China business. Sportswear retailer Pou Sheng continued to rise surged after receiving a privatization offer in January. On the downside, some of our auto-related holdings were subject to profit taking last month and detracted from performance. We are most positive on companies that will benefit from consolidation, supply-side reforms, electric vehicle adoption, alternative energy and anti-pollution policy. We are also very constructive some tourism-related and textile plays. We are overweight consumer discretionary and industrials. We are underweight IT, healthcare, consumer staple and real estate the most. Outlook Asian economies stand to benefit from the synchronized pickup in global economic growth. While there is still uncertainty around issues like potential trade barriers, we expect earnings growth to remain strong against the backdrop of a stronger global economy. Prospects for a continued re-rating of Asian equity markets remain positive. Key risks are local currency volatility and a more aggressive rate hike cycle in the US. Macro indicators suggest a stable Chinese economy which continues to grow at a solid pace. There are potential positive catalysts on the horizon around ongoing economic and structural reforms which should help support economic growth. In India, the Government s reform agenda is incrementally adding to the country s growth potential and attractiveness as a destination for capital. The ongoing recovery in the economy will be a key catalyst going forward in India. Subsiding macro concerns in Korea will help it to attract capital over the long term, while Taiwan continues to benefit from the strong tech cycle. ASEAN s steady growth momentum should support ongoing interest in these markets. While the market has rallied, valuations in Asia ex Japan remain reasonable.
Sector Allocation (%) Geographical Allocation (%) Consumer Discretionary Industrials Information Technology Materials Real Estate Financials Health Care Utilities Consumer Staples Energy Telecommunication Services Cash & Others 21.20 16.22 17.27 13.60 14.51 19.38 9.41 9.64 7.80 11.43 6.32 8.88 5.96 9.93 2.43 2.87 2.12 5.09 0.91 2.13 0.84 6.73 China Taiwan India Hong Kong South Korea United States Indonesia Singapore Malaysia Thailand Cash & Others 7.69 5.35 3.56 2.76 2.94 5.88 2.76 3.75 1.03 4.10 7.57 1.77 19.92 21.58 16.86 19.20 14.50 15.24 13.96 11.55 18.03 Benchmark Benchmark Top 10 Holdings (%) Location Sector Weight (%) United States Treasury Bill United States Treasury Bills US Treasury Bills Xiabuxiabu Catering Mgmt Co Ltd Hong Kong Consumer Discretionary 1.50 Texhong Textile Group Ltd China Consumer Discretionary 1.48 Times Property Holdings Ltd China Real Estate 1.48 China State Const Intl Hldg Ltd China Industrials 1.42 Xinyi Glass Holdings Ltd Hong Kong Consumer Discretionary 1.37 China Yongda Auto Svs Hldg Ltd China Consumer Discretionary 1.29 WT Microelectronics Co Ltd Taiwan Information Technology 1.28 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 is prepared for general information purposes only and does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive it. Any views and opinions expressed are subject to change without notice. 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. 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. Investors may wish to seek advice from a financial adviser before purchasing units in the fund. Investment involves risk. Past performance of any fund or the manager, and any economic and market trends or forecasts are not necessarily indicative of the future or likely performance of the fund or the manager. Unit values and income therefrom may fall as well as rise and the 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
HSBC Global Investment Funds - Asia ex Japan Equity Smaller Companies Supplement Information Sheet 28 Feb 2018 Since Performance (%) Return Currency YTD 1M 3M 6M 1Y 3Y 1 5Y 1 Inception 1 EUR EUR 1.70-0.77 2.79 6.67 11.23 11.52 16.16 10.53 EUR (Net) 2 EUR -3.64-5.98-2.60 1.07 5.39 9.54 14.92 10.24 SGD SGD 2.25-1.83 3.26 6.59 20.75 13.62 16.09 10.01 SGD (Net) 2 SGD -3.12-6.99-2.16 1.00 14.41 11.60 14.85 9.72 USD USD 3.30-2.85 5.15 9.42 27.66 14.68 14.56 10.98 USD (Net) 2 USD -2.13-7.95-0.37 3.68 20.96 12.64 13.33 10.69 Calendar Year Performance (%) Return Currency 2013 2014 2015 2016 2017 EUR EUR 19.09 24.73 12.16 13.63 20.61 EUR (Net) 2 EUR 12.84 18.18 6.27 7.66 14.28 SGD SGD 28.65 14.96 7.80 12.35 27.02 SGD (Net) 2 SGD 21.90 8.92 2.14 6.46 20.35 USD USD 24.46 9.54 0.69 10.33 37.31 USD (Net) 2 USD 17.93 3.79-4.60 4.54 30.10 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 07 Jul 2017 0.244260 0.37% The above table cites the last dividend paid within the last 12 months only. Dividend is not guaranteed and may be paid out of capital, which will 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. Historical payments may comprised of both distributed income and capital. 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. Share Class Inception Date ISIN Base Currency Min. Initial Investment NAV per Share Annual Management Fee Distribution Type 21 Nov 1997 LU0082770016 USD USD 1,000 75.26 1.49% 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.