HSBC Global Investment Funds - BRIC Equity SG Share Class (Active - Closed to New Investors) 31 Mar 2018 31/03/2018 Fund Objective and Strategy The Fund aims to provide long-term total return (meaning capital growth and income) by investing in shares from companies in Brazil, Russia, India and China (also known as BRICs). The Fund may invest in shares from companies in Hong Kong s special administrative region (SAR). In normal market conditions, at least 90% of the Fund s assets are invested in shares (or securities that are similar to shares) from companies that are based in, or carry our most of their business in, the above countries. There aren t restrictions on the market values (also known as market capitalisation) of the companies held in the Fund. The Fund's maximum exposure to China A- shares and China B-shares is 50% of its assets. The Fund may invest up to 10% of its assets into other funds including other sub-funds of HSBC Global Investment Funds. See the Prospectus for a full description of the investment objectives and derivative usage. Share Class Details Since UCITS V Compliant Yes Performance (%) YTD 1M 3M 1Y 3Y¹ 5Y¹ Inception¹ Subscription Mode Cash 2.76-5.04 2.76 22.09 14.05 6.90 8.51 (Net) 2-2.63-10.03-2.63 15.68 12.01 5.75 8.06 Distribution Type Accumulating Dealing Frequency Daily 4.04-3.12 4.04 24.30 13.16 6.17 10.53 Benchmark Valuation Time 17:00 Luxembourg Min. Initial Investment 1,000 Calendar Year Performance (%) -7.59-5.96-16.33 33.34 31.73 Max. Initial Charge 5.25% (Net) 2-12.44-10.90-20.72 26.34 24.81 Base Currency Domicile Luxembourg -3.64-9.84-13.21 28.56 30.12 Benchmark ISIN LU0214875030 01 Apr 2005 3-Year Risk Measures Volatility 21.3% 19.2% Tracking Error Information Ratio 2013 2014 2015 2016 Benchmark Characteristics 4.5% - 0.20 - Beta 1.09 - Number of Holdings ex Cash Avg Market Cap ( mil) Fund 62 2017 Benchmark 75,866 92,174 Annual Management Fee Inception Date NAV per Share Fund Size Bloomberg Ticker 307 Benchmark Manager 1.00% 28.91 388,407,588 HSBRIM2 LX 25% MSCI Brazil Net, 25% MSCI China Net, 25% MSCI Russia Net, 25% MSCI India Net Nicholas Timberlake Past performance is not an indicator of future returns. The figures are calculated in the share class base currency, dividend reinvested. Source: HSBC Global Asset Management, data as at 31 March 2018 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. Liquidity Risk: Assets may be more difficult to convert to cash during adverse market conditions, in turn impacting asset valuation. 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 index fell 1.9% during March, marginally outperforming developed markets with the MSCI World index returning -2.1%. The BRIC countries experienced a tough period with all delivering negative absolute returns. Russia (-3.7%) was the worst performer on the back of increasing tensions with the West. India (-3.6%) was impacted by the US Federal Reserve s decision to raise interest rates and trade disputes between China and the US, a factor that has also had repercussions for China (-3.3%). Furthermore, Brazil (-1.85%) lagged on currency weakness and amid heighted uncertainty over the country s presidential election. Fund Review Key detractors included New China Life Insurance, which fell after reporting earnings below consensus, mainly a result of sluggish top-line growth, with premiums down 3% and rising commission costs. Additionally, BRF fell on news the company is being investigated over falsifying meat test results following the tainted meat scandal that rocked the sector last year. Contributors to performance included Suzano Papel, which advanced on confirmation of a successful bid offer for their larger rival, Fibria, fending off bids from Dutch rival, Paper Excellence. The market has seen this as a beneficial for Suzano, which secured the deal at a discount and will likely realise synergies. Furthermore, Global Trans Investment saw momentum continue with a strong outlook for the rail industry. The company benefitted from positive trends in 2017, which seem to be continuing in 2018, namely healthy transportation volumes and a positive supply/demand balance of railcars, resulting in upward pressure on spot rates and in-turn company earnings. Country and sector allocation effects are residual to stock selection. Country allocation was marginally positive over the period, with no one country eliciting a material effect. Sector allocation was also marginally positive given an underweight position in Information Technology. During the period, positions were initiated in CCR and Shriram Transport Finance whilst NTPC was sold. Outlook Looking forward in 2018, we remain positive on emerging and BRIC markets based on continued improvements in fundamentals and supportive global economic conditions which should allow for further gains in corporate earnings. We expect continued economic recovery in Brazil and Russia where easing inflationary pressures has allowed accommodative monetary policy by the respective central banks and help stimulate consumption and investment. In India, we expect growth to be supported by government s reform programme. China s economy is projected to expand at a robust rate in 2018, although the pace of growth may be slower than 2017 given a tightening of monetary conditions. We are mindful of the risks in the current environment which could lead to increased market volatility in the short-term. At the forefront are rising inflation risk and changing expectation of the pace of US rate hikes, global trade tension, concerns surrounding Chinese growth, and geopolitical risk. The electoral calendar in 2018 may also keep political risk elevated in some emerging markets. As fundamental investors, we focus on quality companies that offer an attractive combination of profitability and valuation. Bouts of market uncertainty can give rise to opportunities to invest in companies at a more attractive entry price. We believe following a disciplined investment approach should help navigate short-term uncertainties.
Sector Allocation (%) Geographical Allocation (%) Financials Energy Materials Information Technology Consumer Discretionary Telecommunication Services Consumer Staples Industrials Real Estate Utilities Health Care Cash & Others 31.14 28.07 21.27 20.41 12.28 10.00 11.37 14.57 8.39 6.50 3.89 3.14 2.68 6.92 2.45 3.78 2.27 1.61 1.71 2.59 0.95 2.41 1.61 0.00 Russian Federation China Brazil India Cash & Others 1.61 0.00 28.17 25.04 24.76 20.43 Benchmark Benchmark Top 10 Holdings (%) Location Sector Weight (%) Sberbank of Russia Lukoil OAO Tencent Holdings Ltd Banco Bradesco SA Vale SA Gazprom OAO Itau Unibanco Holding SA Alibaba Group Holding Ltd Petroleo Brasileiro SA Novatek OAO Source: HSBC Global Asset Management, data as at 31 March 2018 Russian Federation Financials 7.57 Russian Federation Energy 4.92 China Information Technology 4.48 Brazil Financials 3.97 Brazil Materials 3.89 Russian Federation Energy 3.71 Brazil Financials 3.12 China Information Technology 3.07 Brazil Energy 2.80 Russian Federation Energy 2.58 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 - BRIC Equity Supplement Information Sheet 31 Mar 2018 Performance (%) 3Y 1 5Y 1 Since Return Currency YTD 1M 3M 6M 1Y Inception 1 AC EUR EUR 0.21-5.87 0.21 2.94 5.65 8.47 7.29 8.91 AC EUR (Net) 2 EUR -5.05-10.81-5.05-2.47 0.11 6.53 6.14 8.47 AC SGD SGD 0.71-5.91 0.71 3.41 14.01 11.79 7.55 6.51 AC SGD (Net) 2 SGD -4.58-10.85-4.58-2.02 8.02 9.80 6.40 6.08 AC 2.64-5.08 2.64 7.09 21.49 13.48 6.36 8.27 AC (Net) 2-2.75-10.06-2.75 1.46 15.11 11.46 5.22 7.83 M1C 2.76-5.04 2.76 7.35 22.09 14.05 6.90 8.61 M1C (Net) 2-2.63-10.03-2.63 1.71 15.68 12.01 5.75 8.17 EUR EUR 0.33-5.83 0.33 3.19 6.18 9.01 7.82 8.94 EUR (Net) 2 EUR -4.93-10.78-4.93-2.23 0.60 7.07 6.67 8.49 SGD SGD 0.83-5.87 0.83 3.66 14.57 12.35 8.09 6.57 SGD (Net) 2 SGD -4.46-10.82-4.46-1.78 8.56 10.35 6.93 6.13 2.76-5.04 2.76 7.35 22.09 14.05 6.90 8.51 (Net) 2-2.63-10.03-2.63 1.71 15.68 12.01 5.75 8.06 Calendar Year Performance (%) Return Currency 2013 2014 2015 2016 2017 AC EUR EUR -12.02 6.55-7.27 36.64 15.14 AC EUR (Net) 2 EUR -16.64 0.95-12.14 29.46 9.09 AC SGD SGD -4.96-1.80-10.87 35.11 21.25 AC SGD (Net) 2 SGD -9.95-6.96-15.55 28.01 14.89 AC -8.05-6.43-16.75 32.67 31.08 AC (Net) 2-12.88-11.34-21.12 25.70 24.20 M1C -7.59-5.96-16.34 33.34 31.73 M1C (Net) 2-12.44-10.90-20.73 26.34 24.82 EUR EUR -11.58 7.08-6.80 37.32 15.71 EUR (Net) 2 EUR -16.23 1.46-11.69 30.11 9.63 SGD SGD -4.48-1.31-10.43 35.78 21.85 SGD (Net) 2 SGD -9.50-6.49-15.13 28.66 15.46-7.59-5.96-16.33 33.34 31.73 (Net) 2-12.44-10.90-20.72 26.34 24.81 1 Result is annualised when calculation period is over one year. 2 Net of relevant prevailing sales charge Past performance is not an indicator of future returns. The figures are calculated in the share class base currency, dividend reinvested. Share Class Base Currency Distribution Frequency Dividend ex-date Last Paid Dividend Annualised Yield - - - - AC - - - - M1C - - - - The above table cites the last dividend paid within the last 12 months only. Dividend is not guaranteed and may be paid out of 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 be 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.
HSBC Global Investment Funds - BRIC Equity Supplement Information Sheet 31 Mar 2018 Share Class Inception Date ISIN AC M1C Base Currency Min. Initial Investment NAV per Share Annual Management Fee Distribution Type 01 Apr 2005 LU0214875030 1,000 28.91 1.00% Accumulating 01 Dec 2004 LU0449509016 1,000 27.41 1.50% Accumulating 01 Dec 2004 LU0205170342 1,000 30.07 1.00% Accumulating Different classes may have different performances, dividend yields and expense ratios. For hedged classes, the effects of hedging will be reflected in the net asset values of such classes. Expenses arising from hedging transactions may be significant and will be borne by the relevant hedged classes. Hedged class performs the required hedging on a best efforts basis. Source: HSBC Global Asset Management, data as at 31 March 2018