HSBC Global Asset Management November 2010 Monthly Commentary Emerging Markets Debt Emerging Markets Debt Core Supplemental information and characteristics for periods ending November 30, 2010 Month Year-to-date 1 Year Emerging Markets Debt Core (Gross of Fees) -3.38 13.50 14.46 Sector Distribution JP Morgan EMBI Global -3.18 12.41 12.77 Yield to Maturity Average Duration (Years) Average Years to Maturity Average Quality* Emerging Markets Debt Core 5.78% 7.24 12.61 BBB- JP Morgan EMBI Global 5.99% Source: HSBC Global Asset Management (USA) Inc., JP Morgan. Currency is in USD. Past performance is no guarantee of future results. and characteristics are supplemental to the GIPS compliant information provided at the end. * S&P average rating. 7.17 11.66 BB+ Sovereign (External) Quasi-Sovereign (External) Local bonds Corporate Rates & Special Situations 73.8 16.7 6.5 2.9 0.1 Performance summary The Emerging Markets Debt Core strategy returned -3.38% in November versus the strategy s benchmark return of -3.18%. Negative attribution was driven by an underweight in Lebanon, where prices held given a supportive technical backdrop, an overweight in Argentina which underperformed, and security selection in select BB countries. This was partially offset by positive attribution from off-benchmark investments in corporates and underweight allocations to EMEA countries such as Hungary, Poland and Croatia. The strategy closed the month fully invested with a relatively neutral duration versus the benchmark. Emerging Markets Local Debt Supplemental information and characteristics for periods ending November 30, 2010 Month Year-to-date 1 Year Emerging Markets Local Debt (Gross of Fees) JP Morgan GBI-EM Global Diversified -4.28-4.65 12.16 10.08 11.76 Regional Distribution 28.4 Yield to Maturity Duration Average Maturity Average Quality* Emerging Markets Local Debt 6.45% 3.76 4.88 BBB JP Morgan GBI-EM Global Diversified (Unhedged) 6.66% 4.35 6.48 BBB+ Asia Europe Latin America M iddle East/Africa Other 32.6 10.4 0.7 Source: HSBC Global Asset Management (USA) Inc., JP Morgan. Currency is in USD. Past performance is no guarantee of future results. and characteristics are supplemental to the GIPS compliant information provided at the end. * S&P average rating. 28.0 Performance summary The Emerging Markets Local Debt strategy returned -4.28% in November versus the strategy s benchmark return of -4.65%. It was one of the worst months for local debt since the height of the crisis in 2008. Positive attribution was driven by our underweight duration position, which we have continued to decrease slowly, an underweight to Hungary, and an overweight in Brazil that was a relative outperformer. Detracting from performance was a small overweight to Columbia, as the Columbian peso sold off sharply. The strategy closed the month fully invested with an underweight duration versus the benchmark.
Emerging Markets Debt Total Return Supplemental information and characteristics for periods ending November 30, 2010 Month Year-to-date 1 Year Emerging Markets Debt Total Return (Gross of Fees) -1.52 10.63 Merrill Lynch 3 Month Constant Maturity LIBOR 0.02 0.31 0.33 Yield to Maturity Average Duration (Years) Average Years to Maturity Average Quality* Long Exposure Short Exposure Emerging Markets Debt Total Return (Gross Invested) 3.56% 2.20 3.41 BBB- 93.91% 31.10% Source: HSBC Global Asset Management (USA) Inc., JP Morgan. Currency is in USD. Past performance is no guarantee of future results. and characteristics are supplemental to the GIPS compliant information provided at the end. * S&P average rating. 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 30.9% Sovereigns Gross strategy distribution 9.5% 10.6% Quasi Corporates 1.1% Special Situations 23.7% 25.1% Local Rates Local FX 5.3% FX Options 18.9% Pair Trades Performance Summary The Emerging Markets Debt Total Return strategy returned -1.52% in November. Negative attribution was driven by both external debt and local currency bond exposures. Positive attribution was generated from short positions, particularly in Hungary. As of month-end, the strategy was approximately 63% net invested. Review and market outlook In November, global markets came under pressure from heightened concerns over solvency issues in the EU. Ireland joined Greece at the end of the month in receiving a bailout package from the EU and IMF. With neighboring countries such as Portugal and Spain already addressing their own hefty debt burdens, markets viewed the bailout as a short-term band-aid. As spreads in developed Europe widened as a result, global markets repriced in tandem, leaving asset classes across debt and equities overall negative for the month. Emerging market bonds fell into negative territory in November after five straight months of positive performance. External sovereign debt was down -3.2% on average for the month. EMEA countries, such as Hungary (-8.8%) and Croatia (-6.4%), were among the worst performers, driven by concerns over contagion effects from developed Europe. Higher-beta countries such as Ivory Coast (-6.2%), Venezuela (-5.8%), and Argentina (-5.5%) were also among the underperformers. External sovereign debt spreads closed the month at +322bps on average, with spreads widening +39bps MTD, even on the back of US Treasuries widening as well. The 10yr UST ended November at +2.80%, or +20bps wider MTD. Meanwhile, emerging market corporate debt outperformed sovereigns, falling -1.3% over the month. Local debt underperformed, with local currency bonds down nearly -4.7% as the USD strengthened and the EUR weakened. Looking forward, we continue to expect spread compression for emerging market bonds, but are growing increasingly cautious on US Treasury rates, and acknowledge that some of the spread compression is likely to be partially offset by UST widening. Though the 10yr UST widened only +20bps in November, this masks fluctuations of nearly 50bps intra-month. The sharp movements in UST underscore the tug of war between investor confidence in the Fed and the likelihood that quantitative easing cannot keep rates low over the longer term. Thus, we continue to be positioned with underweights in UST-sensitive investment-grade sovereigns, and favor diversification in EM corporate bonds which offer room for significant spread compression, and local currency bonds with high carry and lower capital controls. We are also underweight EMEA countries which are more exposed to contagion effects from developed Europe, such as Hungary. FIRM DISCLOSURE 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 or Halbis, which provide advice in the form of portfolio construction, sector allocations and / or stock list recommendations. HSBC Global Asset Management (USA) Inc. and Halbis Capital Management (USA) Inc. are U.S. based companies and are separate legal entities. As of September 30, 2010, HSBC Global Asset Management (USA) Inc. managed/advised $58.5 billion, representing 13.2% of all assets under management/advice by HSBC Global Asset Management. As of September 30, 2010, Halbis Capital Management (USA) Inc. managed/advised $7.6 billion, representing 1.7% of all assets under management/advice by HSBC Global Asset Management. Halbis Capital Management (USA) Inc. was created in June 2005. 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. 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. Past performance is not indicative of future performance.
GIPS DISCLOSURES Emerging Markets Debt Core Firm Definition - Halbis Halbis Capital Management ('the firm') consists of discretionary accounts and sub-accounts managed as discrete mandates within Halbis Capital Management entities worldwide. The firm excludes portfolios and funds managed by the Alternative Investments teams and French regulated employee (FCPE) schemes as these products operate under a materially different philosophy and process and/or regulatory environment. GIPS Compliance Note (Halbis) Halbis Capital Management has prepared and presented this report in compliance with GIPS (Global Investment Performance Standards). Complete list of composites and calculation of returns A complete list and description of all of the firm's 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. Gross Performance Performance returns are calculated gross of investment management fees. Withholding Tax Treatment Dividends, interest income, and capital gains are net of any applicable withholding taxes. Leverage and Derivatives 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. Exchange Rates The exchange rates used by accounts in this composite may be different than those used by the benchmark. Form ADV, Custody fees, performance fees Please refer to Part II 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. Calculation of Additional information regarding policies for calculating and reporting returns is available upon request. Significant Event - Atlantic Advisors Atlantic Advisors was acquired by HSBC Global Asset Management (USA) Inc. in June 2005. The members of Atlantic Advisors are now the global emerging markets fixed income team at Halbis Capital Management (USA) Inc. (formerly HSBC Halbis Partners (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. Significant Event 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 HALBIS GIPS Composite Committee recommended removal of the account from the composite from 1 June 2008. The HALBIS Executive Committee approved this move on 24 March 2009. 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. 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. Composite Description The Emerging Markets Debt composite consists of all portfolios managed on a fully discretionary basis with an investment objective that seeks to achieve an above average risk-adjusted total return by investing in emerging market debt instruments. The strategy would consist of fixed income bonds and that are both investment grade and noninvestment grade rated bonds and other similar securities either issued by emerging market companies, primarily denominated in US dollars, or bonds which are issued or guaranteed by governments, government agencies and supranational bodies of emerging markets. Benchmark: JP Morgan EMBI Global. Composite creation date: August 31, 2006 The returns expressed in this material are in USD. Realignment and Re-branding of the Organization HSBC Global Asset Management has realigned the investment management structure; this will not have any impact on the organization, philosophies and processes of our investment teams. The existing firm definition will change this year, but the structure and account allocation of the core composites will not be materially affected. Emerging Markets Debt Core Year YTD Nov 10 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 Inception Total Gross of Fees Return 13.50 33.64-11.17 6.32 14.03 15.52 14.20 36.54 16.52 2.56 16.96 31.27 17.02 Benchmark Return 12.41 28.18-10.91 6.28 9.88 10.73 11.73 25.67 13.11 1.36 14.40 24.18 12.59 No. of A/Cs *Total firm assets reflect the previous month s firm assets. 90 th 13.50 32.79-10.69 6.53 12.44 15.81 14.20 36.54 16.76 2.69 17.81 31.65 10 th 13.51 33.71-8.60 7.20 15.83 15.81 14.20 36.54 16.76 4.56 22.98 31.65 Ex-Post Tracking Error (1 Year) 1.48 2.22 2.91 2.43 1.81 2.78 1.30 1.73 4.79 1.41 2.53 4.74 3.52 Market Value (millions) 1,344.06 682.38 291.66 742.07 273.26 346.05 331.37 291.78 219.69 479.09 480.71 251.35 1,344.06 Percentage Firm Assets 0.78 0.49 0.76 0.30 0.47 0.49 0.53 0.54 1.10 1.03 0.84 Total Firm s Assets at End of Period (m) in Base Currency 88,044.89 59,932.44 97,878.34 91,614.91 73,663.64 67,309.67 54,847.26 40,628.84 43,465.86 46,569.58 29,769.59
Emerging Markets Debt Local Debt Firm Definition - Halbis Halbis Capital Management ('the firm') consists of discretionary accounts and sub-accounts managed as discrete mandates within Halbis Capital Management entities worldwide. The firm excludes portfolios and funds managed by the Alternative Investments teams and French regulated employee (FCPE) schemes as these products operate under a materially different philosophy and process and/or regulatory environment. GIPS Compliance Note (Halbis) Halbis Capital Management has prepared and presented this report in compliance with GIPS (Global Investment Performance Standards). Complete list of composites and calculation of returns A complete list and description of all of the firm's 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. Gross Performance Performance returns are calculated gross of investment management fees. Withholding Tax Treatment Dividends, interest income, and capital gains are net of any applicable withholding taxes. Leverage and Derivatives 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. Exchange Rates The exchange rates used by accounts in this composite may be different than those used by the benchmark. Form ADV, Custody fees, performance fees Please refer to Part II 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. Calculation of Additional information regarding policies for calculating and reporting returns is available upon request. Significant Event - Atlantic Advisors Atlantic Advisors was acquired by HSBC Global Asset Management (USA) Inc. in June 2005. The members of Atlantic Advisors are now the global emerging markets fixed income team at Halbis Capital Management (USA) Inc. (formerly HSBC Halbis Partners (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. Composite Name Change In December 2008, the EMD Local Debt Composite changed its name from EMD Local Currency 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. Composite Description The Emerging Markets Debt Local debt composite consists of all portfolios managed on a fully discretionary basis with an investment objective that seeks to achieve an above average risk-adjusted total return by investing in emerging market instruments. The strategy would consist of fixed income securities issued primarily by governments, their agencies, local authorities and corporate entities in local currencies. The base currency of the composite is USD. Benchmark: JP Morgan GBI-EM Global Diversified. Composite creation date: April 29, 2008 The returns expressed in this material are in USD. Realignment and Re-branding of the Organization HSBC Global Asset Management has realigned the investment management structure; this will not have any impact on the organization, philosophies and processes of our investment teams. The existing firm definition will change this year, but the structure and account allocation of the core composites will not be materially affected. Emerging Markets Debt Local Debt Year YTD Nov 10 2009 2008 Inception Total Gross of Fees Return 26.82-4.36 11.39 Benchmark Return 12.16 21.98-5.22 10.52 No. of A/Cs 90 th 26.82-4.36 11.39 10 th 26.82-4.36 11.39 Ex-Post Tracking Error (1 Year) 0.97 2.48 5.23 3.52 Market Value (millions) 669.89 118.00 78.64 669.89 Percentage Firm Assets 0.13 0.13 Total Firm s Assets at End of Period (m) in Base Currency 88,044.89 59,932.44 *Total firm assets reflect the previous month s firm assets.
Emerging Markets Debt Total Return Firm Definition - Halbis Halbis Capital Management ('the firm') consists of discretionary accounts and sub-accounts managed as discrete mandates within Halbis Capital Management entities worldwide. The firm excludes portfolios and funds managed by the Alternative Investments teams and French regulated employee (FCPE) schemes as these products operate under a materially different philosophy and process and/or regulatory environment. GIPS Compliance Note (Halbis) Halbis Capital Management has prepared and presented this report in compliance with GIPS (Global Investment Performance Standards). Complete list of composites and calculation of returns A complete list and description of all of the firm's 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. Gross Performance Performance returns are calculated gross of investment management fees. Withholding Tax Treatment Dividends, interest income, and capital gains are net of any applicable withholding taxes. Leverage and Derivatives 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. Exchange Rates The exchange rates used by accounts in this composite may be different than those used by the benchmark. Form ADV, Custody fees, performance fees Please refer to Part II 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. Calculation of Additional information regarding policies for calculating and reporting returns is available upon request. Significant Event - Atlantic Advisors Atlantic Advisors was acquired by HSBC Global Asset Management (USA) Inc. in June 2005. The members of Atlantic Advisors are now the global emerging markets fixed income team at Halbis Capital Management (USA) Inc. (formerly HSBC Halbis Partners (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. 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. 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. Composite Description The Emerging Markets Debt - Total Return composite consists of all portfolios managed on a fully discretionary basis with an investment objective that seeks to achieve an above average risk-adjusted total return by investing in emerging market instruments. The strategy is not constrained by benchmark and will hold long and short positions in emerging market fixed income, equities and currencies. The strategy would consist of fixed income bonds and that are both investment grade and non-investment grade rated bonds and other similar securities either issued by emerging market companies, denominated in US dollars and local currencies, including through the use of foreign currency forward contracts. The base currency of the composite is USD. Benchmark: Merrill Lynch 3 month LIBOR Constant Maturity. Composite creation date: August 31, 2006. The returns expressed in this material are in USD. Realignment and Re-branding of the Organization HSBC Global Asset Management has realigned the investment management structure; this will not have any impact on the organization, philosophies and processes of our investment teams. The existing firm definition will change this year, but the structure and account allocation of the core composites will not be materially affected. Emerging Markets Debt Total Return Year YTD Nov 10 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 Inception Total Gross of Fees Return 31.25-4.70 7.60 11.52 9.70 11.70 23.71 6.20 10.68 11.99 12.52 Benchmark Return 0.31 0.99 3.83 5.61 5.12 3.14 1.30 1.29 1.95 5.01 6.65 3.26 No. of A/Cs 90 th 31.25-4.15 7.56 11.52 9.70 11.70 23.71 6.20 10.68 11.99 10 th 31.25-4.15 7.56 11.52 9.70 11.70 23.71 6.20 10.68 11.99 Ex-Post Tracking Error (1 Year) 5.47 7.59 4.40 4.05 3.14 4.95 4.25 5.03 6.62 6.24 8.78 6.58 Market Value (millions) 1,026.20 435.29 257.96 373.10 128.44 114.41 36.53 25.74 4.63 5.39 3.81 1,026.20 Percentage Firm Assets 0.49 0.43 0.38 0.14 0.16 Total Firm s Assets at End of Period (m) in Base Currency 88,044.89 59,932.44 97,878.34 91,614.91 73,663.64 67,309.67 54,847.26 40,628.84 43,465.86 46,569.58 *Total firm assets reflect the previous month s firm assets.
Important Information This document is intended for investment professionals only and should not be distributed to or relied upon by Retail Clients The contents of this presentation 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 presentation 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 presentation 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 presentation 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 presentation but HSBC Global Asset Management (UK) Limited accepts no responsibility for any errors or omissions contained therein This presentation and any issues or disputes arising out of or in connection with it (whether such disputes are contractual or noncontractual 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. The sub-fund referred to is a sub-fund of the HSBC Global Investment Funds, a Luxembourg domiciled SICAV. UK based investors in HSBC Global Investment Funds are advised that they may not be afforded some of the protections conveyed by the provisions of the Financial Services and Markets Act 2000. The securities representing interests in HSBC Global Investment Funds have not been and will not be registered under the US Securities Act of 1933 and will not be offered for sale or sold in the United States of America, its territories or possessions and all areas subject to its jurisdiction, or to United States Persons, except in a transaction which does not violate the Securities Law of the United States of America. All applications are made on the basis of the current HSBC Global Investment Funds Prospectus, simplified prospectus and most recent annual and semi-annual reports, which can be obtained upon request free of charge from HSBC Global Asset Management (UK) Limited, 8 Canada Square, Canary Wharf, London, E14 5HQ, UK, or the local distributors. Investors and potential investors should read and note the risk warnings in the prospectus. Halbis Capital Management has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS ). The GIPS firm is defined as Halbis Capital Management and consists of discretionary accounts and sub-accounts managed as discrete mandates within Halbis Capital Management entities worldwide (France, Hong Kong, UK, USA). A complete list and description of all of the firm's 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. The performance shown refers to the past and should not be seen as an indication of future performance. An investor may not get back the amount invested. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in established markets. For the full disclosure of risk factors reference should be made to the Fund prospectus. Performance information is based upon a model portfolio. Individual client portfolios may differ from the model as they contain different holdings and this may lead to different performance returns. The investment adviser to these strategies is Halbis Capital Management (USA) Inc. This presentation 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 19587/1210/FP10-0001