HSBC Global Investment Funds - Managed Solutions - Asia Focused Income Share Class AM2 31 Aug 2018 AM2 31/08/2018 Fund Objective and Strategy Investment Objective The Fund invests for both income and some capital growth. To do so, it invests in a range of assets including bonds, shares, moneymarket and cash instruments. The Fund will normally invest at least 70% of its assets in Asia, excluding Japan and in investments expected to distribute a relatively high income (dividends or interest). The Fund can also invest in non-asian based assets such as global emerging market bonds, US Treasuries and certain types of Real Estate Investment Trusts. Investment Strategy The Fund s asset allocation may change over time, depending on the Investment Adviser's view on market opportunities. The Fund will normally be exposed to currencies of Asia-Pacific (excluding Japan) countries, as well as other emerging and developed-market currencies. Up to 15% of the Fund s net assets may be invested in onshore Chinese bonds with up to 10% rated below Investment Grade. The Fund may invest up to 10% of its net assets in contingent convertible securities. The Fund's maximum exposure to China A- shares and China B-shares is 25% of its assets. The Fund may invest up to 50% of its assets into other funds. Investment into Real Estate Investment Trusts is limited to 10%. See the Prospectus for a full description of the investment objectives and derivative usage. S Performance (%) YTD 1M 3M 1Y 3Y¹ 5Y¹ Since Inception¹ AM2-3.48-0.63-1.77-1.17 5.53 4.27 4.35 6.09 0.59 AM2 (Net) 2-8.55-5.85-6.92-6.35 3.65 3.16 3.46 Share Class Details UCITS V Compliant Yes Distributing Monthly Daily 17:00 Luxembourg Calendar Year 2013 2014 2015 2016 2017 Performance (%) Dealing Frequency AM2-2.56 5.01-3.63 6.65 14.33 Valuation Time AM2 (Net) 2-7.67-0.50-8.69 1.05 8.33 Min. Initial Investment USD 1,000 Vol 3 S.R. 4 Subscription Mode Distribution Type Distribution Frequency Cash 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 August 2018 Risk Disclosure General Risk: The Fund's unit value can go up as well as down, and any capital invested in the Fund may be at risk. Multi-Asset Fixed Income Risk: The Fund invests in bonds whose value generally falls when interest rates rise. This risk is generally greater the longer the maturity of a bond investment and the higher its credit quality. The issuers of certain bonds, could become unwilling or unable to make payments on their bonds and default. Bonds that are in default may become hard to sell or worthless. Multi-Asset Market Risk: The value of investible securities can change over time due to a wide variety of factors, including but not limited to: political and economic news, government policy, changes in demographics, cultures and populations, natural or human-caused disasters etc. Emerging Markets Risk: The Fund may invest in Emerging Markets, these markets are less established, and often more volatile, than developed markets and involve higher risks, particularly market, liquidity and currency risks. Style Risk: Different investment styles typically go in and out of favour depending on market conditions and investor sentiment. Derivatives Risk: Derivatives may be used by the Fund, and these can behave unexpectedly. Hedging Risk: The pricing and volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of their underlying reference(s), instrument or asset. Investment Leverage Risk: Investment Leverage occurs when the economic exposure is greater than the amount invested, such as when derivatives are used. A Fund that employs leverage may experience greater gains and/or losses due to the amplification effect from a movement in the price of the reference source.. Documentation Statement: Further information on the Fund's potential risks can be found in the Key Investor Information Document and Prospectus. Annual Management Fee 1.25% Max. Initial Charge Base Currency Domicile ISIN Inception Date NAV per Share Fund Size Bloomberg Ticker Manager 3.00% USD Luxembourg LU0762541174 25 May 2012 USD 10.19 USD 767,795,912 HSMSAAM LX Denis Gould 1 Result is annualised when calculation period is over one year. 2 Net of relevant prevailing sales charge 3 Volatility since inception, a measure of how much a fund's price goes up or down as a percentage of its average performance. 4 Sharpe ratio since inception, a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such calculations.
Monthly Performance Commentary Market Review The ongoing trade situation and problems for some emerging markets kept investment markets unsettled during August. The Turkish Lira and Argentinian Peso saw significant weakness during the month and, although driven by individual circumstances in those countries, this led to some weakness across emerging markets currencies. In Asia the Indian Rupee fell 3.45%, breaching the 70 per USD barrier, and the Indonesian Rupiah fell 2%. Most Asian currencies fell during the month but not all, the Korean Won and Thai Baht both gained and the important Chinese renminbi was stable against the dollar and gained against the euro as China took measures to support the currency. After rising in July the MSCI World index managed another gain in August, of 1.04%. However this gain was entirely focused in the US market which is a large part of the global index. So while US stock markets made new all-time highs during the month other regions all struggled, with the MSCI Asia Pacific ex Japan index falling 1.45% and losses for Japanese, European and emerging markets as well. Within Asia there was a wide dispersion of returns between markets with India, Indonesia and the Philippines seeing good gains while China, HK and Singapore all saw losses exceeding 2%. In bond markets emerging markets suffered, particularly in local currency terms, and credit spreads the extra yield earned by investing in corporate bonds rather than safer government bonds - rose. Despite this global government bonds produced a small positive return as did Asian corporate bonds, the JACI Investment Grade index returning 0.66% and the high yield equivalent 0.10%. Performance Review The fund returned negatively in August. Global emerging market local currency bonds was the main detractor leading to the overall negative fund performance given the weakness across emerging markets currencies. Asian equities also returned unfavorably over the month with investor sentiment being weighed on by the escalation in trade tension and sell off in EM assets. On the other hand, Asian investment Grade bonds offset part of the negative performance by returning favorably amid broadly lower US treasury yields. Strategy and Outlook The international trade background is likely to continue to be a market factor in the months ahead. It is therefore necessary to think carefully about how tariffs are likely to impact global trade. The US tariffs on Chinese exports to the US are paid by the importing US company (i.e. not by China or the Chinese exporting company), and therefore make those goods more expensive in the US. It is likely that the importing company will look for an alternative supplier, either domestically or from a country that does not suffer tariffs. But finding new suppliers can take some time, and while they are looking to adjust their sources, they may well increase prices to customers to reflect the tariff that they are paying. This has already been seen in prices rises of washing machines where tariffs were applied earlier in the year. The direct economic effects of tariffs imposed so far and those being considered does not appear particularly high. However the loss of economic efficiency is real if the Chinese supplier was the best and the tariffs encourage companies to buy elsewhere, then this is not as efficient. But the same goods are still in demand, and that demand will be supplied from somewhere. So although the trade situation is likely to continue to make headlines, and impeding free trade is not a good thing from an economic efficiency point of view, it is more of a rebalancing and adjustment rather than something that will change a growing global economy into a shrinking one. We therefore continue to believe that investors should take exposure to equities, corporate bonds and other selected assets which provide attractive long term risk premiums.
Asset Allocation (%) Actual Target Strategic Overweight/Underweight between Target & Strategic Asset Allocation Asia ex Japan Equity 24.87 25.00 25.00 0.00 Japanese Equity 2.04 2.00 0.00 2.00 Global Equities 10.13 10.00 10.00 0.00 Global Emerging Market Debt Local Currency 9.86 10.00 10.00 0.00 Asian Investment Grade Bond 30.87 31.00 35.00-4.00 Asian High Yield Bond 9.66 10.00 10.00 0.00 Asian Local Currency Bonds 9.60 10.00 10.00 0.00 Indian Fixed Income 2.14 2.00 0.00 2.00 Liquidity 0.85 0.00 0.00 0.00 The strategic allocation is the portfolio's reference or neutral allocation set by HSBC Global Asset Management. The management team also adjusts target exposure higher (overweight) or lower (underweight) to an asset type - relative to the strategic asset allocation - depending on the team's current market outlook. Positive values (overweights) in the chart reflect asset types the portfolio management team have a positive outlook on. Negative values (underweights) reflect asset types the portfolio management team have a negative outlook on. The actual exposure is a screen shot of the portfolio at the end of the month based on market value in each asset type. Top 10 Holdings (%) HSBC FTSE All-World Index 10.13 HSBC GIF Global Emerging Markets Local Debt 9.86 HSBC GIF India Fixed Income 2.14 HSBC Japan Index 2.00 Taiwan Semiconductor Mfg 1.85 Tencent Holdings Ltd 1.57 Samsung Electronics Co Ltd 1.24 AIA Group Ltd 1.06 China Construction Bank 1.04 Industrial & Commercial Bank Of China 0.87 Source: HSBC Global Asset Management, data as at 31 August 2018
Important Information This document does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment. This document is for information only and is not an advertisement, investment recommendation, research, or advice. Any views and opinions expressed are subject to change without notice. It does not have regard to the specific investment objectives, financial situation, or needs of any specific person. Investors and potential investors should not invest in the Fund solely based on the information provided in this document and should read the prospectus (including the risk warnings) and the product highlights sheets, which are available upon request at HSBC Global Asset Management (Singapore) Limited ( AMSG ) or our authorised distributors, before investing. You should seek advice from a financial adviser. Investment involves risk. Past performance of the managers and the funds, and any forecasts on the economy, stock or bond market, or economic trends that are targeted by the funds, are not indicative of future performance. The value of the units of the funds and income accruing to them, if any, may fall or rise and investor may not get back the original sum invested. Changes in rates of currency exchange may affect significantly the value of the investment. AMSG has based this document on information obtained from sources it reasonably believes to be reliable. However, AMSG does not warrant, guarantee or represent, expressly or by implication, the accuracy, validity or completeness of such information. HSBC Global Asset Management (Singapore) Limited 21 Collyer Quay #06-01 HSBC Building Singapore 049320 Telephone: (65) 6658 2900 Facsimile: (65) 6225 4324 Website: www.assetmanagement.hsbc.com/sg Company Registration No. 198602036R Should there be any discrepancy, the English version shall prevail
HSBC Global Investment Funds - Managed Solutions - Asia Focused Income Supplement Information Sheet 31 Aug 2018 Performance (%) Return Currency YTD 1M 3M 6M 1Y 3Y 1 5Y 1 Since Inception 1 AC USD -3.46-0.62-1.76-3.64-1.16 5.53 4.28 2.95 AC (Net) 2 USD -8.53-5.84-6.92-8.70-6.35 3.65 3.16 2.00 ACOSGD SGD -4.13-0.71-2.02-4.13-2.03 5.19 4.12 2.79 ACOSGD (Net) 2 SGD -9.16-5.92-7.17-9.16-7.17 3.32 3.00 1.84 AM2 USD -3.48-0.63-1.77-3.65-1.17 5.53 4.27 4.35 AM2 (Net) 2 USD -8.55-5.85-6.92-8.71-6.35 3.65 3.16 3.46 AM3OAUD AUD -3.79-0.70-1.93-3.91-1.46 5.97 5.37 3.65 AM3OAUD (Net) 2 AUD -8.84-5.91-7.08-8.96-6.63 4.08 4.24 2.64 AM3OEUR EUR -5.32-0.90-2.54-5.13-3.85 3.43 2.88 1.30 AM3OEUR (Net) 2 EUR -10.29-6.11-7.66-10.11-8.90 1.59 1.78 0.32 AM3OSGD SGD -4.10-0.71-2.02-4.10-1.99 5.21 4.12 2.77 AM3OSGD (Net) 2 SGD -9.13-5.92-7.16-9.13-7.13 3.33 3.01 1.82 Calendar Year Performance (%) Return Currency 2013 2014 2015 2016 2017 AC USD -2.56 5.01-3.63 6.65 14.33 AC (Net) 2 USD -7.67-0.50-8.69 1.05 8.32 ACOSGD SGD -2.73 4.90-2.88 6.60 13.64 ACOSGD (Net) 2 SGD -7.83-0.60-7.98 1.01 7.68 AM2 USD -2.56 5.01-3.63 6.65 14.33 AM2 (Net) 2 USD -7.67-0.50-8.69 1.05 8.33 AM3OAUD AUD - 7.34-2.13 7.60 14.64 AM3OAUD (Net) 2 AUD - 1.70-7.27 1.95 8.62 AM3OEUR EUR - 4.74-4.25 4.96 11.88 AM3OEUR (Net) 2 EUR - -0.76-9.27-0.55 6.00 AM3OSGD SGD -2.72 4.89-2.90 6.60 13.67 AM3OSGD (Net) 2 SGD -7.83-0.62-8.00 1.01 7.70 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 AM2 AC ACOSGD AM3OAUD AM3OEUR Base Currency USD USD SGD AUD EUR Distribution Frequency Dividend ex-date Last Paid Dividend Monthly 29 Aug 2018 Annualised Yield 0.037011 4.34% - - - - - - - - Monthly 29 Aug 2018 0.031099 4.11% Monthly 29 Aug 2018 0.012595 1.67% AM3OSGD SGD Monthly 29 Aug 2018 0.027525 3.55% The above table cites the last dividend paid within the last 12 months only. Dividend is not guaranteed and may be paid out of distributable income, capital or both, which could result in capital erosion and reduction in net asset value. A positive distribution yield does not imply a positive return. Past payout yields and payments do not represent future payout yields and payments. The calculation method of annualised yield: (dividend value / NAV per share or unit as of ex-dividend date) x n, n depends on the distributing frequency. Annually distribution is 1; semi-annually distribution is 2; quarterly distribution is 4; monthly distribution is 12. The annualised dividend yield is calculated based on the dividend distribution on the relevant date with dividend reinvested, and may be higher or lower than the actual annual dividend yield. Investors and potential investors should refer to the details on dividend distributions of the Fund, which are available on HSBC Global Asset Management (Singapore) Limited website.
HSBC Global Investment Funds - Managed Solutions - Asia Focused Income Supplement Information Sheet 31 Aug 2018 Share Class Inception Date ISIN AM2 AC ACOSGD AM3OAUD AM3OEUR AM3OSGD Base Currency Min. Initial Investment NAV per Share Annual Management Fee Distribution Type 25 May 2012 LU0762541174 USD USD 1,000 10.19 1.25% Distributing 12 Nov 2012 LU0762540952 USD USD 1,000 11.84 1.25% Accumulating 12 Nov 2012 LU0831092464 SGD SGD 1,000 11.73 1.25% Accumulating 04 Mar 2013 LU0800731944 AUD AUD 1,000 9.06 1.25% Distributing 08 Feb 2013 LU0800732082 EUR EUR 1,000 9.02 1.25% Distributing 02 Nov 2012 LU0831093199 SGD SGD 1,000 9.28 1.25% 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. Source: HSBC Global Asset Management, data as at 31 August 2018