factsheet - april 2011 fund/mf-fundfact-sheet/hsbcfactsheet 2… · for the first time in six...

Factsheet - April 2011

The Asset

HSBC Global Asset Management

1

In this Issue ...

Fund Manager’s Comments - Equity & MIP Pg 2

Fund Manager’s Comments - Debt Pg 4

HSBC Equity Fund Pg 5

HSBC India Opportunities Fund Pg 7

HSBC Midcap Equity Fund Pg 9

HSBC Progressive Themes Fund Pg 11

HSBC Tax Saver Equity Fund Pg 13

HSBC Unique Opportunities Fund Pg 15

HSBC Dynamic Fund Pg 17

HSBC Emerging Markets Fund Pg 19

HSBC Small Cap Fund Pg 20

Fund Managers - Equity Pg 22

HSBC MIP - Savings Plan Pg 24

HSBC MIP - Regular Plan Pg 26

HSBC Income Fund - Investment Plan Pg 28

HSBC Income Fund - Short Term Plan Pg 30

HSBC Floating Rate Fund - Long Term Plan Pg 32

HSBC Floating Rate Fund - Short Term Plan Pg 34

HSBC Cash Fund Pg 36

HSBC Gilt Fund Pg 38

HSBC Ultra Short Term Bond Fund Pg 39

HSBC Flexi Debt Fund Pg 42

Fund Managers - MIP & Debt Pg 44

Index

2

Markets continued the previous month’s good run into the start of April 2011, thereby touching a 3 month high at the beginning of the month. But then the momentum waned and the markets started correcting with the BSE SENSEX ending 1.6% down for the month (and is now up 9% on a 12 months basis) and the broader indices BSE 200 and BSE 500 down by 0.7% and 0.2% respectively (and are now up 6% and 5.5% respectively on a 12 months basis). For the first time in six months, the mid-cap and small-cap indices outperformed the large-caps by being up 1.6% and 6.6% respectively (and are still down 1.3% and 5.3% respectively on a 12 months basis). Even after last month’s outperformance, they lag the large-cap indices by 10.3% and 14.3% respectively over the last 12 months. And till the time there is some improvement in the macroeconomic indicators, it will be difficult for the broader market to outperform large-cap stocks, since in times of uncertainty investors prefer to hide in safety. MSCI India underperformed the global indices in April 2011. This led to India’s performance ranking slipping to 18th position (as compared to the 2nd position in the previous month). Calendar YTD, India continues to rank among the bottom three (at 19th position) amongst the emerging markets. FII inflows in the cash market remained positive for the second month running (of ~ USD 700 million), even as they turned significant sellers in the futures market (of ~USD 2.5 billion). Domestic insurance companies were marginal buyers while mutual funds were marginal sellers. Calendar YTD, FIIs and domestic institutions have bought ~USD 1 billion and ~USD 2.3 billion of Indian stocks. Aggregate institutional flows, though positive, fell MoM. As per the first forecast for the 2011 monsoon season released by the Indian Meteorigical Department (IMD), rainfall for the country as a whole is most likely to be normal. IMD estimates total rainfall at 98% of the long period average with a model error of +/-5%. Good monsoons will be very crucial this year on the back of high food inflation and high general inflation levels prevailing currently. The headline inflation rate, Wholesale Price Index (WPI) came in higher than expectations at 9% YoY in March 2011 from 8.3% YoY in February 2011. The key reason for this surprise rise in inflation is higher and earlier than expected increase in coal prices reflected in the WPI. The non-food inflation accelerated to 9.9% YoY versus 8.8% YoY in the previous month) which was the highest in YoY terms since October 2008. Moreover, non-food manufactured inflation (WPI) that the Central Bank (RBI) monitors as a broad indicator of generalized inflationary pressures also accelerated to 7% in March 2011 from 6.1% in the previous month. And with this a few economists started forecasting higher than 25 basis points rate hike by the RBI in its monetary policy due at the start of May 2011. Alongside higher inflations, growth kept on disappointing with Industrial Production growth remaining weak at 3.6% YoY in February 2011, compared with growth of 3.9% YoY in January 2011 and 2.5% YoY in December 2010. So in a way, Reserve Bank of India’s monetary tightening over the last few quarters has started showing in lower growth numbers. So now there is a great level of anxiety as inflation is showing no signs of abating and in case RBI continues its monetary tightening stance to tackle inflationary trends, GDP growth could come down drastically in FY 2011-12. And so markets have started pricing some kind of earnings downgrades for lot of sectors, especially the ones which are more interest sensitive. And since in times of macro uncertainty, one generally sees investors position their portfolios in defensive sectors especially in the consumption space which are less exposed to interest rate increases. Hence, broadly the market have been divided into two halves, the first is stocks in defensive sectors like FMCG which are getting more expensive as they are less vulnerable to macro headwinds and the second is stocks in sectors like Infrastructure, Capital Goods, Autos and Real Estate which are more exposed to interest rate tightening and investment slowdown. Politically, state assembly elections including the crucial states of West Bengal and Tamil Nadu along with Assam, Kerala and Pondicherry were held on 2 April 2011. Counting of votes is scheduled on 13 May 2011. Though it is still early days, but result season has been mixed. While companies like Infosys and Reliance Industries reported below expectations, ACC, Gujarat Ambuja Cements, Ultra Tech Cement, HCL Technology, TCS & Maruti reported better than expected quarterly results. Globally, the western world continues to show economic recovery and this is leading to good equity market performance in those markets. US Dollar continued its depreciation against a basket of global currencies with the DXY Index depreciating by 3.8% during the month. This is also leading to higher commodities prices as investors start factoring improving demand from the western world. Brent crude oil prices increased from USD 117.2 per barrel to USD 125.9 per barrel during the month. Increasing crude oil prices remains one of the risks for India as it is one of the few countries that suffers from twin deficits of current account and fiscal account deficit, one would see GDP growth momentum slowing down in case crude oil remains at high levels. So going forward one of the biggest factors that will influence the growth numbers will depend on how crude oil and commodities prices behave in the future. And this in a way will have a big bearing of the Indian equity markets.

HSBC Mutual Fund April 2011

Fund Manager’s Comments - Equity & MIP

3

Outlook

We now expect FY2011-12 GDP to moderate slightly but still be a healthy 8% growth. We expect earnings to grow at 15% plus in FY12. Further, crude oil prices and its impact on growth will play a very important factor. In our view, Indian valuations are at marginal premia to the region with higher tail risks emerging from strong crude oil and commodity prices topped up by a wide current account deficit making us susceptible to external flows as can be seen from the last few month. Shorter term we see domestic consumption (on rising incomes – both rural & urban), upstream energy and commodities being the relative outperformers. IT should also do well as a proxy to developed market growth and the INR remaining range bound on inflation/Current Account Deficit worries. Second half should see the return of capex oriented themes – industrials and banking making a comeback. Overall, the only thing certain in the markets is ‘uncertainty’.

Sectors HSBC Equity Fund

HSBC India Opportunities

Fund

HSBC Midcap

Equity Fund Consumer Discretionary r a a Consumer Staples a r a Energy a a r Financials a a a Healthcare r r r Industrials a a r Information Technology a a a Materials r r r Telecommunication a a r Utilities r r r

a Overnight r Underweight = Neutral

Review: HSBC Equity Fund Being overweight Consumer Staples and underweight Real Estate, Utilities helped performance while being overweight Financials, Software, Energy and underweight Consumer Discretionary, Materials, Healthcare hurt performance. Review: HSBC India Opportunities Fund Being overweight Consumer Discretionary, Industrials and underweight Real Estate helped performance while being overweight Financials, Energy, Software and underweight Consumer Staples, Materials, Healthcare hurt performance. Review: HSBC Midcap Equity Fund Being overweight consumer Discretionary, Consumer Staples and underweight Utilities helped while being overweight Financials, Software and underweight Industrials, Energy, Materials, Healthcare hurt performance. Review: HSBC Progressive Themes Fund Currently focusing on the following themes, 1. Economic Reforms (37.9%) which includes Banking- 19%, Oil & Gas Sector deregulation- 9.4%, opening of FDI/Disinvestment sub theme 9.5% and 2. Infrastructure (29.5%) which includes Power-6.7%, Construction-15.8% and Logistics-7%. Well-diversified exposure across sectors encompassing the above themes. Review: HSBC Dynamic Fund The cash levels and sector allocation in the fund are likely to change depending on market conditions and technical factors. We are overweight Information Technology, Energy, Pharma, Telecommunication and underweight Consumer Discretionary, Financials, Industrials, Consumer Staples, Materials, Real Estate. Review: HSBC MIP Regular and Savings Plans Review: HSBC MIP Regular and Savings Plans Our current exposure is 12.41% in HMIP Regular and 22.05%, in HMIP Savings. Currently it is more biased towards large caps than mid/small caps. The equity portfolio of MIP-S used to be predominantly mid and small caps a year back. But since this segment of the market tends to be more volatile in uncertain times, we intended to progressively increase the exposure to large caps keeping in view the risk tolerance of investors in this fund.


Fund Manager’s Comments - Equity & MIP

4

Market Assessment

Initial part of the April 2011 saw some easing in y ields: Bond markets witnessed an eventful start to the new financial year. The onset of the new financial year saw the benchmark ten year yields softening below 8%, triggered by softer than expected Index of Industrial Production (IIP) numbers and announcement of new benchmark papers. Liquidity too was easy as expected: Liquidity conditions too remained comfortable after acute tightening witnessed in March 2011.

Things turned after monthly inflation data for Marc h, at 8.98%: The softening of yields remained short lived post the monthly inflation release which stood higher than the market and the RBI expectation. Second fortnight of April 2011 witnessed hardening of yields across the curve in anticipation of increasing rates in the monetary policy by RBI and impending pass through of high fuel prices. RBI announced its annual credit policy on 3 May 2011. Highlights of the same are as follows:

RBI simplified its overnight lending rates with repo rate (rate at which the RBI lends to banks) now being the operating rate. Other rates such as reverse repo rate (rate at which the RBI borrows from banks) will be determined by the predefined spread over the operating rate.

Both repo and reverse repo rates have been moved up by 50 bps, making the rates 7.25% and 6.25% respectively.

Cash Reserve ratio has been maintained unchanged at 6% Saving bank deposit rate has been increased to 4% from 3.5% Wholesale Price Inflation (WPI) estimated for March 2012 at 6% with an upward bias. Bank Deposits are projected to grow at 17% and non food credit is projected to grow at

19%.

Overall Assessment and Outlook of the credit policy

The Global economy has been showing signs of continuing growth. However, higher oil and commodity prices and lower government spending moderated the growth rates lately. The European Central Bank (ECB) was the first bank from advanced economies to raise policy rates recently. The Domestic economy has grown by 8.6% in 2010-11. Index of industrial production (IIP) has moderated in the second half of the year. Many indicators such as credit offtake, corporate sales and profits suggest that the economic activity is strong. On the inflation front , RBI stated that it is driven by structural (more permanent in nature) and transitory factors. Earlier in the year food prices were driving inflation higher, which is now driven by fuel price and non-food manufacturing products. Further, a concern has been raised about administered fuel prices. These prices (esp auto and cooking fuel) may need to be hiked to curtail subsidy burden, which will exert inflation pressure. Over the long run, high inflation will harm sustained growth as it cre ates uncertainty about the interest rate available for investment in capital assets. Thus, the RBI thinks that controlling inflation takes precedence even at cost of some growth in the short run. As a result, the RBI raised the repo rate by 50 bps and implemented other policy measures. Benchmark ten year yields traded as high as 8.29 % after it made its debut on 11 April 2011 at 7.80%. Non Statutory Liquidity Ratio (SLR) yields too have hardened over the past one month, especially at the shorter end of the curve. Impact on longer end yields has been relatively less (as compared to the sovereign curve) owing to the lack of fresh supply. Going Forward We expect that the recent (bigger) step taken by RBI to control the inflation menace would be a key in controlling the inflation. However, there will be many upward pressures on inflation due to fuel price hike and dependence of food prices on a normal monsoon. We expect the extent and pace of the hike to be driven by outlook on commodity prices, monsoons and its impact on domestic growth. Yields would remain under pressure as supply pressures mount and macro scenario remains detrimental for bonds. Moreover, the extent and pace of recovery in advanced economies, mounting inflationary pressures and an attempt to migrate away from ultra-loose monetary policy would impose on the sovereign yields of respective economies. This could imply pressure on the domestic yields and may also contribute to widening of the credit spreads in the long term. Bond funds and MIPs have been focusing on accrual and holding low duration, which to some extent protects from the upward yield movement. Short-end funds should benefit due to higher short end yields.


Fund Manager’s Comments - Debt

5

An Open Ended Diversified Equity Scheme Investment Objective: Aims to generate long term capital growth from an actively managed portfolio of equity and equity related securities.


HSBC Equity Fund (HEF)

Issuer Market Value

(`̀̀̀ in Lacs) % to Net Assets

Auto

Tata Motors DVR 2,262.74 2.40%

Banks

ICICI Bank 6,218.63 6.60%

State Bank of India 5,805.52 6.16%

HDFC Bank 5,146.35 5.46%

Punjab National Bank 2,453.16 2.60%

Construction Project

Larsen and Toubro 4,738.78 5.03%

Consumer Non Durables

I T C 4,587.55 4.87%

Glaxo Smithkline Consumer Healthcare 2,638.60 2.80%

Engineering Services

VA Tech Wabag 1,146.64 1.22%

Ferrous Metals

Tata Steel 1,664.55 1.77%

Finance

Housing Development Finance Corporation 4,134.78 4.39%

Industrial Capital Goods

Bharat Heavy Electricals 4,501.35 4.78%

Industrial Products

Jain Irrigation Systems 1,234.58 1.31%

Media & Entertainment

Sun TV Network 1,036.64 1.10%

Minerals/mining

Coal India 1,883.72 2.00%

Non - Ferrous Metals

Hindustan Zinc 3,075.84 3.26%

Oil

Oil & Natural Gas Corporation 3,601.26 3.82%

Cairn India 2,764.48 2.93%

Pesticides

United Phosphorus 953.19 1.01%

Petroleum Products

Reliance Industries 5,754.94 6.11%

Bharat Petroleum Corporation 1,129.88 1.20%

Pharmaceuticals

Dr Reddy’s Laboratories 1,647.26 1.75%

Cadila Healthcare 1,169.24 1.24%

Software

Infosys Technologies 6,015.94 6.38%

Tata Consultancy Services 3,252.16 3.45%

Telecom - Services

Bharti Airtel 3,078.41 3.27%

Textiles Products

Grasim Industries 3,531.53 3.75%

Fixed Deposit

HSBC Bank** 1,800.00 1.91%

HSBC Bank** 1,600.00 1.70%

6


HSBC Equity Fund (HEF)

HSBC Bank** 900.00 0.96%

Other Equity Investments 2,506.28 2.66%

CBLOs 536.61 0.57%

Reverse Repos 854.39 0.91%

Net Current Assets 611.29 0.65%

Total Net Assets as on 29 April 2011 94,236.27 100 .00%

** Fixed deposits are placed as margin Deposit for Futures, Options and Equities. Total outstanding explosure in derivatives as on April 29, 2011 is ` 3746.67 (National value in lakhs).

Asset Allocation

Auto 2.40%

Banks 20.82%

Construction Project 5.03%

Consumer Non Durables 7.67%

Engineering Services 1.22%

Ferrous Metals 1.77%

Finance 4.39%

Industrial Capital Goods 4.78%

Industrial Products 1.31%

Media & Entertainment 1.10%

Minerals/mining 2.00%

Non - Ferrous Metals 3.26%

Oil 6.76%

Pesticides 1.01%

Petroleum Products 7.31%

Pharmaceuticals 2.99%

Software 9.83%

Telecom - Services 3.27%

Textiles Products 3.75%

Fixed Deposit 4.56%

Other Equity Investments 2.66%

Reverse Repos/CBLOs 1.48%

Net Current Assets 0.65%

Performance* (%) as on 29 April 2011

HEF BSE 200 6 Months -5.72 -7.01 1 Year 8 .01 5.99 3 Years 3.01 3.09 5 Years 10.52 9.89 Since Inception

32.32 24.15

* Past performance may or may not be sustained in the future. Returns less than 1 year are absolute. Returns equal to or greater than 1 year are compounded annualized. ‘Since inception’ returns are calculated on ` 10 invested at inception. Calculations are based on Growth NAVs.

Date of Allotment 10-Dec-02 Benchmark BSE 200 Average AUM ` 962.16 crores NAV (Growth) per unit (as on 29.04.11)

` 104.8068

Fund Manager Jitendra Sriram SIP Available Minimum Application Amount

` 10,000

Exit Load@

1% - if redeemed/ switched out

$

within 1 year from date of investment; otherwise Nil.

Standard Deviation

1.23%

R-Squared 0.9598 Beta (Slope) 0.7635 Sharpe Ratio -0.0277 Annualised Expense Rati o from 01 April 2010 onwards 2.06% Portfolio Turnover

1.26

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @

Including SIP/STP where applicable. $ No load in case of switches between

equity schemes of HSBC Mutual Fund.

Dividend Declaration Record

Date/period of dividend declared

Dividend ( `̀̀̀ per unit) Non-

Institutional

Dividend ( `̀̀̀ per unit) Institutional

NAV per unit (cum dividend)

HSBC Equity Fund - Dividend 11-Dec-09 2.50 2.50 29.4073 28-May-10 1.50 1.50 26.6911 19-Nov-10 2.00 2.00 29.3244

7

An Open Ended Flexi-Cap Equity Scheme Investment Objective: Seeks long term capital growth through investments across all market capitalisations, including small, mid and large cap stocks. It aims to be predominantly invested in equity & equity related securities. However it could move a significant portion of its assets towards fixed income securities if the fund manager becomes negative on equity markets.


HSBC India Opportunities Fund (HIOF)

Issuer Market Value

(`̀̀̀ in Lacs)

% to Net Assets

Auto

Eicher Motors 303.13 1.64%

Auto Ancillaries

Bosch 1,435.65 7.77%

Banks

State Bank of India 908.69 4.92%

ICICI Bank 902.70 4.89%

HDFC Bank 723.10 3.91%

Bank of Baroda 656.57 3.55%

Cement

Shree Cement 271.36 1.47%


Larsen and Toubro 861.60 4.66%


I T C 779.02 4.22%

Triveni Engineering & Industries 355.34 1.92%

Fertilisers

Coromandel Fertilisers 354.62 1.92%

Finance

Housing Development Finance Corporation 763.34 4.13%

CRISIL 295.20 1.60%


Bharat Heavy Electricals 720.22 3.90%

Industrial Products

Jain Irrigation Systems 263.38 1.43%

Leisure Facilities

Talwalkars Better Value Fitness 201.06 1.09%

Minerals/mining

Coal India 239.75 1.30%

Oil

Oil & Natural Gas Corporation 692.55 3.75%

Cairn India 502.63 2.72%

Paper Products

Tamil Nadu Newsprint & Papers 204.13 1.11%

Petroleum Products


Bharat Petroleum Corporation 226.64 1.23%

Pharmaceuticals

Aventis Pharma 358.97 1.94%

Aurobindo Pharma 271.33 1.47%

Software

Infosys Technologies 980.86 5.31%

Tata Consultancy Services 629.45 3.41%

Info Edge (India) 383.32 2.08%

Telecom - Services

Bharti Airtel 513.07 2.78%

Fixed Deposit

HSBC Bank** 800.00 4.33%

8


HSBC India Opportunities Fund (HIOF)

HSBC Bank** 500.00 2.71%

Other Equity Investments 272.29 1.47%

CBLOs 27.37 0.15%





Asset Allocation

Auto 1.64%

Auto Ancillaries 7.77%

Banks 17.28%

Cement 1.47%



Fertilisers 1.92%

Finance 5.73%



Leisure Facilities 1.09%


Oil 6.47%

Paper Products 1.11%



Software 10.79%


Fixed Deposit 7.04%





HIOF BSE 500 6 Months -5.08 -7.59 1 Year 9 .50 5.46 3 Years 1.48 2.56 5 Years 6.86 9.40 Since Inception 19.30 18.06


Date of Allotment 24-Feb-04 Benchmark BSE 500 Average AUM ` 188.92 crores NAV (Growth) per unit (as on 29.04.11)

` 35.5193

Fund Manager Jitendra Sriram & Dhimant Shah

SIP Available Minimum Application Amount

` 10,000

Exit Load@


$


Standard Deviation

1.19%

R-Squared 0.9380 Beta (Slope) 0.7503 Sharpe Ratio -0.0291 Annualised Expense Ratio from 01 April 2010 onwards 2.38% Portfolio Turnover

1.46

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Including SIP/STP where applicable. $ No load in case of switches between


Dividend Declaration Record

Date/period of dividend declared


Institutional



HSBC India Opportunities Fund – Dividend 19-Nov-10 1.00 1.00 18.2313 11-Dec-09 1.00 1.00 16.9013 24-Mar-08 1.00 1.00 16.4065

9

An Open Ended Diversified Equity Scheme Investment Objective: Seeks to generate long term capital growth from an actively managed portfolio of equity and equity related securities primarily being midcap stocks. However, it could move a portion of its assets towards fixed income securities if the fund manager becomes negative on the Indian equity markets.


HSBC Midcap Equity Fund (HMEF)

Issuer Market Value

(`̀̀̀ in Lacs)

% to Net Assets

Auto Ancillaries

Federal-Mogul Goetze (India) 687.84 4.84%

Autoline Industries 412.70 2.90%

WABCO - TVS (India) 190.71 1.34%

Banks

The Jammu and Kashmir Bank 653.91 4.60%

Dena Bank 578.07 4.06%

Bank of Maharashtra 270.93 1.90%

State Bank of Bikaner and Jaipur 269.75 1.90%

State Bank of Travancore 209.95 1.48%

Consumer Durables

Hitachi Home & Life Solutions (India) 480.15 3.38%


KRBL Limited 816.93 5.74%

Venkys (India) Limited 646.99 4.55%

Gujarat Ambuja Exports Limited 483.92 3.40%

Hardware

Allied Digital Services 346.27 2.43%

Hotels

Asian Hotels (East) 476.47 3.35%


Numeric Power Systems 270.95 1.90%

Industrial Products

Diamond Power Infrastructure 683.93 4.81%

Polyplex Corporation 353.31 2.48%


Prime Focus Limited 785.89 5.52%

Pesticides

PI Industries Ltd 497.56 3.50%

Power

BF Utilities 447.85 3.15%

Software

Nucleus Software Exports 156.25 1.10%

Textiles - Cotton

Vardhman Textiles 323.75 2.28%

Textiles - Synthetic

Bombay Dyeing & Manufacturing Company 1,113.32 7.83%

JBF Industries 337.18 2.37%

Transportation

Jet Airways (India) 712.00 5.01%

Fixed Deposit

HSBC Bank** 320.00 2.25%

10


HSBC Midcap Equity Fund (HMEF)

Other Equity Investments^^ 475.03 3.34%

CBLOs 331.89 2.33%





^^ It contains securities which are fair valued.

Asset Allocation


Banks 13.94%

Consumer Durables 3.38%


Hardware 2.43%

Hotels 3.35%




Pesticides 3.50%

Power 3.15%

Software 1.10%

Textiles - Cotton 2.28%

Textiles - Synthetic 10.20%

Transportation 5.01%

Fixed Deposit 2.25%





HMEF BSE Midcap

6 Months -23.02 -14.55 1 Year -9 .41 -1 .26 3 Years -2 .00 -0 .21 5 Years 1.56 4.47 Since Inception 13.23 14.04


Date of Allotment 19-May-05 Benchmark BSE Midcap Average AUM ` 148.21 crores NAV (Growth) per unit (as on 29.04.11)

` 20.9415

Fund Manager Dhiraj Sachdev & Dhimant Shah


` 10,000

Exit Load@


$


Standard Deviation

1.41%


2.01




Dividend Declaration Record Date/period

of dividend declared


Institutional



HSBC Midcap Equity Fund - Dividend 24-Mar-08 0.75 0.75 13.3797 11-Dec-09 1.00 1.00 13.8927 19-Nov-10 2.00 2.00 15.4864

11

An Open Ended Flexi-Theme Equity Scheme Investment Objective: Seeks to generate long term capital growth from an actively managed portfolio of equity and equity related securities by investing primarily in sectors, areas and themes that play an important role in, and/or benefit from India’s progress, reform process and economic development.


HSBC Progressive Themes Fund (HPTF)

Issuer Market Value

(`̀̀̀ in Lacs)

% to Net Assets

Auto

Tata Motors DVR 761.04 3.35%

Ashok Leyland 259.70 1.14%

Tata Motors 253.55 1.12%

Banks

The Jammu and Kashmir Bank 1,453.14 6.40%

ICICI Bank 947.28 4.17%


IDBI Bank 642.66 2.83%

The Karnataka Bank 570.53 2.51%

Construction

Kajaria Ceramics Limited 1,517.04 6.68%

Gammon Infrastructure Projects 349.80 1.54%


Gammon India 310.10 1.37%



Fertilisers

Gujarat State Fertiliser & Chemicals 369.62 1.63%

Finance

IFCI Ltd. 810.42 3.57%

Rane Holdings Limited 491.10 2.16%

Industrial Products

FAG Bearings India Ltd 1,393.67 6.14%

Diamond Power Infrastructure 586.46 2.58%

Polyplex Corporation 493.76 2.17%


Prime Focus Limited 611.89 2.70%

Petroleum Products

Hindustan Petroleum Corporation 950.39 4.19%

Indian Oil Corporation 766.70 3.38%

Power

Reliance Infrastructure 825.00 3.63%

Software

Polaris Software Lab 463.77 2.04%

Textiles - Cotton



Bombay Dyeing & Manufacturing Company 1,211.67 5.34%

Trading

The State Trading Corporation 226.39 1.00%

Transportation

Jet Airways (india) 487.41 2.15%

Balmer Lawrie & Company 267.66 1.18%

Fixed Deposit

HSBC Bank** 800.00 3.52%

HSBC Bank** 800.00 3.52%

12


HSBC Progressive Themes Fund (HPTF)


CBLOs 441.94 1.95%






Asset Allocation

Auto 5.61%

Banks 19.03%

Construction 8.22%



Fertilisers 1.63%

Finance 5.73%




Power 3.63%

Software 2.04%



Trading 1.00%


Fixed Deposit 7.05%





HPTF BSE 200 6 Months -20.85 -7.01 1 Year -9 .16 5.99 3 Years -8 .16 3.09 5 Years 0.54 9.89 Since Inception

3.80 12.58


Date of Allotment 23-Feb-06 Benchmark BSE 200 Average AUM ` 231.60 crores NAV (Growth) per unit (as on 29.04.11)

` 12.1292

Fund Manager Dhiraj Sachdev & Jitendra Shriram


` 10,000

Exit Load@


$

within 1 year from date of investment; otherwiseNil.

Standard Deviation

1.40%


2.78







Institutional



HSBC Progressive Themes Dividend 11-May-07 1.00000 1.00000 12.2390 26-May-08 1.00000 1.00000 13.7160

13

An Open Ended Equity Linked Savings Scheme Investment Objective: Aims to provide long term capital appreciation by investing in a diversified portfolio of equity & equity related instruments of companies across various sectors and industries, with no capitalisation bias. The Fund may also invest in fixed income securities.


HSBC Tax Saver Equity Fund (HTSF)

Issuer Market Value

(`̀̀̀ in Lacs)

% to Net Assets

Auto


Mahindra and Mahindra 529.48 2.16%

Auto Ancillaries

Bosch 697.89 2.84%

Motherson Sumi Systems 552.60 2.25%

Exide Industries 529.80 2.16%

Banks

ICICI Bank 1,611.68 6.57%

HDFC Bank 964.13 3.93%



Punjab National Bank 284.42 1.16%

Cement


Construction

Sadbhav Engineering 623.81 2.54%



UB Engineering 271.81 1.11%


I T C 1,038.69 4.23%

Glaxo Smithkline Consumer Healthcare 586.36 2.39%

McLeod Russel India 396.41 1.62%


VA Tech Wabag 391.97 1.60%

Ferrous Metals

Tata Steel 484.15 1.97%

Fertilisers

Coromandel Fertilisers 494.26 2.01%

Finance


Rural Electrification Corporation 417.55 1.70%


Crompton Greaves 567.55 2.31%


Minerals/mining

Coal India 345.63 1.41%


Hindustan Zinc 723.15 2.95%

Oil


Petroleum Products



Pharmaceuticals

Lupin 662.29 2.70%

Dr Reddys Laboratories 499.17 2.03%

14


HSBC Tax Saver Equity Fund (HTSF)


Software

Infosys Technologies 1,336.88 5.45%

Tata Consultancy Services 1,293.87 5.27%

Telecom - Services


Textiles Products

Grasim Industries 367.87 1.50%

Textiles - Cotton



CBLOs 102.44 0.42%





Asset Allocation

Auto 4.65% Auto Ancillaries 7.26% Banks 18.23% Cement 2.01% Construction 2.54% Construction Project 4.64% Consumer Non Durables 8.24% Engineering Services 1.60% Ferrous Metals 1.97% Fertilisers 2.01% Finance 4.64% Industrial Capital Goods 3.74% Minerals/mining 1.41% Non - Ferrous Metals 2.95% Oil 2.28% Petroleum Products 5.97% Pharmaceuticals 6.47% Software 10.72% Telecom - Services 2.56% Textiles Products 1.50% Textiles - Cotton 1.03% Other Equity Investments 1.88% Reverse Repos/CBLOs 1.08% Net Current Assets 0.62%


HTSF BSE 200 6 Months -9.59 -7.01 1 Year 3 .46 5.99 3 Years 8.49 3.09 Since Inception 9.25 8.48


Date of Allotment 05-Jan-07 Benchmark BSE 200 Average AUM ` 248.96 crores NAV (Growth) per unit (as on 29.04.11)

` 14.6462

Fund Manager Dhimant Shah & Aditya Khemani


` 500

Exit Load@

Nil Standard Deviation

1.20%

R-Squared 0.9207 Beta (Slope) 0.7355 Sharpe Ratio -0.0122 Annua lised Expense Ratio from 01 April 2010 onwards 2.34% Portfolio Turnover

1.06







Institutional



HSBC Tax Saver Equity Dividend 19-Feb-10 1.00 1.00 12.8713

15

An Open Ended Equity Scheme Investment Objective: To provide long-term capital growth from a diversified portfolio of equity and equity related instruments. The focus would be to invest in stocks of companies facing “out-of-ordinary” conditions.


HSBC Unique Opportunities Fund (HUOF)

Issuer Market Value

(`̀̀̀ in Lacs)

% to Net Assets

Auto



Auto Ancillaries

Motherson Sumi Systems 278.57 3.01%


Steel Strips Wheels 151.75 1.64%

Banks

ICICI Bank 601.80 6.49%



The Jammu and Kashmir Bank 222.01 2.40%

Allahabad Bank 153.83 1.66%




JHS Svendgaard Laboratories 96.67 1.04%


VA Tech Wabag 189.07 2.04%

Ferrous Metals

Tata Steel 166.46 1.80%

Fertilisers

Gujarat State Fertiliser & Chemicals 209.08 2.26%

Finance

Rural Electrification Corporation 214.74 2.32%

Shriram Transport Finance Company 185.98 2.01%


Gas

Petronet LNG 144.33 1.56%



McNally Bharat Engineering Company 179.46 1.94%


Industrial Products

Greaves Cotton 279.90 3.02%

Jain Irrigation Systems 99.55 1.07%

Leisure Facilities

Talwalkars Better Value Fitness 93.86 1.01%

Minerals/mining

Coal India 160.92 1.74%



Petroleum Products

Reliance Industries 354.15 3.82%


Pharmaceuticals

Lupin 317.41 3.42%


16


HSBC Unique Opportunities Fund (HUOF)

Software



Textiles - Cotton



JBF Industries 216.06 2.33%

Fixed Deposit

HSBC Bank** 600.00 6.47%

HSBC Bank** 200.00 2.16%

HSBC Bank** 100.00 1.08%


CBLOs 93.00 1.00%



Total Net Assets as on 29 April 2011 9,269.02 100. 00%

** Fixed deposits are placed as margin Deposit for Futures , Options &Equities.Total outstanding explosure in derivatives as on April 29,2011 is ` 1282.58(National value in lakhs).


Asset Allocation

Auto 5.06% Auto Ancillaries 6.49% Banks 18.02% Construction Project 3.61% Consumer Non Durables 1.04% Engineering Services 2.04% Ferrous Metals 1.80% Fertilisers 2.26% Finance 5.96% Gas 1.56% Industrial Capital Goods 5.68% Industrial Products 4.09% Leisure Facilities 1.01% Minerals/mining 1.74% Non - Ferrous Metals 2.91% Petroleum Products 5.25% Pharmaceuticals 5.31% Software 6.82% Textiles - Cotton 1.06% Textiles - Synthetic 2.33% Fixed Deposit 9.71% Other Equity Investments 1.05% Reverse Repos/CBLOs 2.60% Net Current Assets 2.60%


HUOF BSE 200 6 Months -11.14 -7.01 1 Year 6 .85 5.99 3 Years -1 .79 3.09 Since Inception 2.71 11.00


Date of Allotment 21-Mar-07 Benchmark BSE 200 Average AUM ` 96.07 crores NAV (Growth) per unit (as on 29.04.11)

` 11.1593

Fund Manager Dhimant Shah & Jitendra Sriram


` 10,000

Exit Load@


$


Standard Deviation

1.24%


2.57




17

An Open Ended Equity Scheme Investment Objective: To Provide long term capital appreciation by allocating funds in equity and equity related instruments. It also has the flexibility to move, entirely if required into debt instruments in times that the view on equity markets seems negative.


HSBC Dynamic Fund (HDF)

Issuer Market Value

(`̀̀̀ in Lacs)

% to Net Assets

Auto


Banks

ICICI Bank 802.40 7.28%


HDFC Bank 516.50 4.69%





I T C 588.59 5.34%

Ferrous Metals

Tata Steel 116.52 1.06%

Finance

CRISIL 177.12 1.61%



Minerals/mining

Coal India 137.00 1.24%



Oil


Cairn India 408.39 3.71%

Petroleum Products

Reliance Industries 595.17 5.40%

Pharmaceuticals

Lupin 357.09 3.24%

Dr. Reddy’s Laboratories 179.70 1.63%


Software



Telecom - Services


Textiles Products


Transportation

Gujarat Pipavav Port 244.62 2.22%

Fixed Deposit

HSBC Bank** 960.00 8.71%

18


HSBC Dynamic (HDF)


CBLOs 16.34 0.15%




*Fixed deposits are placed as margin Deposit for Futures ,Options and Equities. Total outstanding explosure in derivatives as on April 29,2011 is ` 1171.07 (Notional value in lakhs).

Asset Allocation

Auto 2.22%

Banks 22.56%



Ferrous Metals 1.06%

Finance 1.61%



Non - Ferrous Metals 1.74%

Oil 7.73%



Software 8.79%


Textiles Products 4.01%


Fixed Deposit 8.71%





HDF BSE 200 6 Months -6.47 -7.01 1 Year 7 .81 5.99 3 Years -0 .35 3.09 Since Inception 1.03 3.75


Date of Allotment 24-Sep-07 Benchmark BSE 200 Average AUM ` 113.84 Crores NAV (Growth) per unit (as on 29.04.11)

` 10.3772

Fund Manager Jitendra Sriram (for Equity portion) Sanjay Shah (for Debt portion)


` 10,000

Exit Load@

1% - if redeemed/ Switched out

$ within 1 year from date of investment otherwise Nil.

Standard Deviation 1.10% R-Squared 0.9094 Beta (Slope) 0.6703 Sharpe Ratio -0.0355 Annualised Expense Ratio from 01 April 2010 onwards 2.47% Portfolio Turnover 1.53 Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @



19

An Open Ended Scheme Investment Objective: To provide long term capital appreciation by investing in India and in the emerging markets, in equity and equity related instruments, share classes and units/securities issued by overseas mutual funds or unit trusts. The fund may also invest a limited proportion in domestic debt and money market instruments.


HSBC Emerging Markets (HEMF)

Issuer Market Value

(`̀̀̀ in Lacs)

% to Net Assets

Overseas Mutual Fund

HSBC GIF Global Emerging Markets Equity 5,975.54 101.43%

CBLOs 49.54 0.84%


Net Current Assets -174.10 -2.69%

Total Net Assets as on 28 April 2011 5,891.46 100.0 0%

Asset Allocation


Net Current Assets -2.96%



HEMF BSE 200 6 Months 8.62 4.09 1 Year 17.80 12.09 3 Years -0 .02 0.09 Since Inception 2.67 3.65


Date of Allotment 17-Mar-08 Benchmark MSCI Emerging

Markets Index Average AUM ` 60.04 crores NAV (Growth) per unit (as on 28.04.11)

` 10.8561

Fund Manager Niren Parekh (dedicated fund Manager for overseas investments) Gaurav Mehrotra (Co-fund manager for overseas investments)


` 10,000

Exit Load@


$


Standard Deviation 0.01% R-Squared 0.5942 Beta (Slope) 0.9505 Sharpe Ratio -0.0107 Annualised Expense Ratio from 01 April 2010 onwards 1.65% Portfolio Turnover - Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Including SIP/STP where applicable. $ No load in case of switches between


20

An Open Ended Equity Scheme

Investment Objective: To provide long term capital appreciation primarily from a diversified portfolio of equity and equity related instruments of small cap companies.


HSBC Small Cap Fund (HSCF)

Issuer Market Value

(`̀̀̀ in Lacs)

% to Net Assets

Auto

Majestic Auto 69.21 1.98%

Auto Ancillaries

Autoline Industries 198.71 5.68%

Pricol 90.80 2.60%

Banks

State Bank of Travancore 116.64 3.34%

State Bank of Bikaner and Jaipur 115.61 3.31%

Cement

Orient Paper and Industries 119.94 3.43%

Chemicals

India Glycols Limited 96.56 2.76%

Deepak Nitrite 49.57 1.42%

Construction

Sadbhav Engineering 162.90 4.66%

Consumer Durables

Hitachi Home & Life Solutions (india) 207.78 5.94%

Tube Investments of India 133.43 3.82%

IFB Industries 93.22 2.67%


KRBL Limited 190.93 5.46%


Lakshmi Energy and Foods 47.65 1.36%

Finance

Rane Holdings Limited 193.98 5.55%

Hardware

Allied Digital Services 62.94 1.80%

Hotels

Asian Hotels (East) 111.54 3.19%


TIL 150.30 4.30%

Indo Tech Transformers 134.11 3.84%

Sanghvi Movers 67.84 1.94%

Industrial Products

Ador Welding 90.10 2.58%

Pesticides

Excel Crop Care 182.55 5.22%

PI Industries Ltd 61.65 1.76%

Software

Nucleus Software Exports 162.01 4.63%

Textiles - Products

SRF 81.20 2.32%

Textiles - Cotton

RSWM 124.96 3.57%


Bombay Dyeing & Manufacturing Company 129.82 3.71%

Transportation

Sical Logistics 53.24 1.52%

21


HSBC Small Cap Fund (HSCF)


CBLOs 27.78 0.79%


Net Current Assets (59.33) -1.70%


Asset Allocation

Auto 1.98%


Banks 6.64%

Cement 3.43%

Chemicals 4.18%

Construction 4.66%

Consumer Durables 12.43%


Finance 5.55%

Hardware 1.80%

Hotels 3.19%



Pesticides 6.98%

Software 4.63%

Textiles - Products 2.32%








HSCF

BSE Smal l Cap

6 Months -24.47 -17.76 1 Year -4 .79 -5 .34 3 Years 2.88 -0 .22 Since Inception 4.85 7.58


Date of Allotment 24-Mar-08 Benchmark BSE Small Cap

Index Average AUM ` 36.41 crores NAV (Growth) per unit (as on 29.04.11)

` 11.5805

Fund Manager Dhiraj Sachdev & Dhimant Shah

SIP Available (Upon conversion into open ended scheme)

Minimum Application Amount

` 10,000

Exit Load@

1%- if redeemed/ switched outs within 1 year from date of investment; otherwise Nil.

Standard Deviation 1.15% R-Squared 0.8714 Beta (Slope) 0.8957 Sharpe Ratio 0.0315 Annualised Expense Ratio from 01 April 2010 onwards* 2.48% Portfolio Turnover 0.80 Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @



Dividend Declaration

Record Date/period of

dividend declared


Institutional



HSBC Equity Fund - Dividend 19-Nov-10 1.00 1.00 14.3053

22


Fund Managers - Equity

Name of Scheme Fund Manager

HSBC Equity Fund Jitendra Sriram (from 05 July 2006)

HSBC India Opportunities Fund Jitendra Sriram (from 05 July 2006) & Dhimant Shah (from 24 February 2009)

HSBC Midcap Equity Fund Dhiraj Sachdev (from 01 December 2009) & Dhimant Shah (from 23 March 2007)

HSBC Progressive Themes Fund Dhiraj Sachdev (from 01 December 2009) & Jitendra Sriram (from 24 February 2009)

HSBC Tax Saver Equity Fund Dhimant Shah (from 14 August 2009) & Aditya Khemani (from 24 February 2009)

HSBC Unique Opportunities Fund Dhimant Shah (from 24 February 2009) & Jitendra Sriram (from 02 February 2007)

HSBC Dynamic Fund For Equity portion: Jitendra Sriram (from 03 August 2007) & For Debt portion: Sanjay Shah (from 14 August 2009)

HSBC Emerging Markets Fund Niren Parekh (from 17 March 2008) & Gaurav Mehrotra (from 27 October 2010)

HSBC Small Cap Fund Dhiraj Sachdev (from 01 December 2009) & Dhimant Shah (from 31 March 2008)

Fund Manager’s Experience Jitendra Sriram Vice President & Head of Fund Management – Equities B.E. (Elect), Post Graduate Diploma in Business Management Experience: Over 15 years experience in Equity Research. This involved analysing various sectors and companies and presenting investment ideas to fund managers in India and abroad.

� HSBC Asset Management (India) Private Limited Head of Fund Management - Equities from February 2009 to present � HSBC Asset Management (India) Private Limited Fund Manager from May 2006 to February 2009 � Deutsche Equities India Private Limited Vice President from August 2002 to April 2006 � HSBC Securities and Capital Markets (India) Private Limited Deputy Head of Research from March 1997 to August 2002 � ITC Classic Share & Stock Broking

Analyst from June 1995 to March 1997

Dhiraj Sachdev Senior Fund Manager B.Com., ACA, Grad CWA, Diploma in Foreign Trade Management (DFTM) Experience: Over 14 years of experience in Equity Research & Fund Management. � HSBC Asset Management (India) Private Limited Senior Fund Manager from December 2009 to present � HSBC Asset Management (India) Private Limited Head of Equity-Portfolio Management Services from October 2005 to November 2009 � ASK Raymond James Securities India Private Limited Portfolio Manager from October 2003 to September 2005 � HDFC Bank Limited Senior Manager Equities from November 1999 to September 2003 � DSQ Software Ltd Business Analyst from June 1999 to November 1999 � Probity Research & Services Ltd (India Infoline Limited) Research Analyst from November 1998 to May 1999 � Ford Brothers Capital Services (P) Limited

Manager Research from July 1996 to Sept 1998

23


Fund Managers - Equity

Dhimant Shah Vice President & Fund Manager B.Com., CA Experience: Over 17 years experience in Equity Research. This involved analysing various sectors and companies and presenting investment ideas to fund managers in India and abroad.

� HSBC Asset Management (India) Private Limited Fund Manager from Mar 2007 to present � Reliance Asset Management Co. Limited Vice President/ Portfolio Manager from October 2005 to February 2007 � ASK Raymond James Securities Pvt. Limited Portfolio Manager from September 2003 to September 2005 � IL&FS Asset Management Co. Limited Senior Analyst from April 1997 to August 2003

Niren Parekh Associate Vice President, Investment Management (Dedicated Fund Manager for overseas investments) Post Graduate Diploma in Business Management, CA Experience: Over 5 years experience in research. � HSBC Asset Management (India) Private Limited Assistant Fund Manager from September 2007 to present � Motilal Oswal Securities Limited Analyst from October 2005 to September 2007 � SBI Capital Markets Management Trainee from May 2005 to September 2005 Gaurav Mehrotra Associate Vice President, Investment Management (Co-Fund Manager for overseas investments) Post Graduate Diploma in Business Management, Bachelor of Engineering Experience: Over 5 years experience in research. � HSBC Asset Management (India) Private Limited Associate Vice president from September 2007 to present � JPMorgan Services India Private Limited Equity Research from August 2005 to September 2007 � Tata Consultancy Services Limited Business Analyst from June 2004 to July 2005 Aditya Khemani Associate Vice President and Assistant Fund Manager, Equities B.Com. (Hons.), Post Graduate Diploma in Business Management Experience: Over 5 years experience in research. � HSBC Asset Management (India) Private Limited Assistant Fund Manager, Equities from February 2009 to present Associate Vice President - Investment Management from October 2007 to February 2009 � SBI Funds Management India Private Limited Senior Manager - Equity Research from March 2007 to September 2007 � Prudential ICICI Asset Management Company India Private Limited Assistant Manager - Equity Research from December 2005 to February 2007 � Morgan Stanley Advantage Services India Private Limited Research Associate from May 2005 to November 2005

24

An Open Ended Fund with Regular & Savings Plans. Monthly income is not assured and is subject to availability of distributable surplus. Investment Objective: Seeks to generate reasonable returns through investments in Debt and Money Market Instruments.The secondary objective of the scheme is to invest in equity and equity related instruments to seek capital appreciation.


HSBC MIP – Saving Plan (HMIP-S)

Issuer Market Value

(`̀̀̀ in Lacs)

% to Net Assets

Rating

Money Market Instruments CPs Kotak Mahindra Prime 1,929.65 3.00% P1+ SREI Equipment Finance 494.18 0.77% A1+ CDs Fixed Central Bank of India 3,229.35 5.02% PR1+ State Bank of Patiala 2,997.09 4.66% A1+ State Bank of Patiala 2,606.23 4.05% A1+ Indian Overseas Bank 2,587.59 4.02% A1+ Indian Overseas Bank 2,354.39 3.66% P1+ Corporation Bank 1,982.62 3.08% P1+ Punjab National Bank 1,970.49 3.06% PR1+ Allahabad Bank 1,486.16 2.31% A1+ State Bank of Travancore 1,447.21 2.25% P1+ Oriental Bank of Commerce 1,385.36 2.15% P1+ Oriental Bank of Commerce 1,256.70 1.95% P1+ UCO Bank 1,092.53 1.70% P1+ Union Bank of India 966.46 1.50% P1+ Bank of India 964.58 1.50% P1+ Indian Bank 942.33 1.47% (Ind) F1+ Punjab National Bank 923.80 1.44% PR1+ Axis Bank 791.93 1.23% P1+ State Bank of Travancore 477.10 0.74% PR1+ Axis Bank 282.88 0.44% P1+ UCO Bank 147.93 0.23% P1+ Fixed Depo sit HSBC Bank** 120.00 0.19% Unrated HSBC Bank** 100.00 0.16% Unrated Corporate/PSU Debt Fixed Exim Bank 3,927.47 6.11% AAA Power Finance Corporation 1,710.36 2.66% AAA Housing Development Finance Corporation 1,397.35 2.17% AAA Power Grid Corporation of India 1,246.35 1.94% AAA State Bank of India 1,035.49 1.61% AAA National Bank For Agricultural and Rural 846.61 1.32% AAA LIC Housing Finance 784.52 1.22% AAA LIC Housing Finance 340.07 0.53% AAA Power Grid Corporation of India 296.00 0.46% AAA National Housing Bank 221.37 0.34% AAAInd Government Securities 7.80% Government Stock M 11-Apr-21 957.95 1.49% Sovereign 8.08% Government Stock-M-02-Aug-2022 674.11 1.05% Sovereign 7.83% Government Stock M 11-Apr-18 667.28 1.04% Sovereign Equities Listed Equity ICICI Bank 807.98 1.26%


Tata Motors DVR 669.63 1.04% Bharti Airtel 603.52 0.94%




HDFC Bank 516.50 0.80%


Rural Electrification Corporation 493.90 0.77% Titan Industries 482.91 0.75%





Sterlite Industries (india) 381.68 0.59%

Lupin 378.32 0.59%

Coal India 376.74 0.59% Mahindra and Mahindra 359.29 0.56%

Bajaj Auto 358.18 0.56%


25


HSBC MIP – Saving Plan (HMIP-S)

Asian Paints 356.51 0.55%


Amara Raja Batteries 342.49 0.53%

Tata Steel 339.08 0.53%



Ub Engineering 221.42 0.34% Spicejet 215.22 0.33%

Hindustan Door-oliver 204.24 0.32%

Sun TV Network 190.78 0.30%



Ahluwalia Contracts (India) 160.45 0.25%

Jet Airways (India) 145.74 0.23%

Karur Vysya Bank 136.52 0.21%

Hitachi Home & Life Solutions (India) 91.94 0.14% Karur Vysya Bank Par Value Rights - 75 44.02 0.07% Vardhman Special Steels^^ 17.30 0.03% Cash Equivalents CBLOs 1,106.63 1.72% Reverse Repos 1,761.99 2.74% Net Current Assets 620.48 0.96% Total Net Assets as on 29 April 2011 64,310.13 100.00%

** Fixed deposits are placed as margin Deposit for Futures, Options and Equities. ^^ This security is fair valued.

Asset Allocation Money Market Investments 50.25% Fixed Deposit 0.34% Corporate/PSU Debt 18.36% Government Securities 3.58% Reverse Repos / CBLOs 4.46% Net Current Assets 0.96% Other Equity Investments 22.05%

Rating Profile

AAA 68.61% Sovereign 5.58% Unrated 0.34% Other Equity Investments 22.05% Reverse Repos / CBLOs 4.46% Net Current Assets 0.96%


HMIP-S

Cr is i l MIP Blended

Index 6 Months -0.64 1.73 1 Year 2 .97 5.48 3 Years 7.97 6.31 5 Years 9.19 7.19 Since Inception

9.59 7.16


Date of Allotment 24-Feb-04 Benchmark Crisil MIP Blended


` 19.3073

Average Maturity of Portfolio

21.25 months

Modified Duration of Portfolio

15.94 months

Fund Manager Dhimant Shah & Aditya Khemani (for Equity portion) Sanjay Shah & Ruchir Parekh (for Debt portion)

SIP Available Minimum Application Amount Growth ` 10,000 Quarterly Dividend ` 10,000 Monthly Dividend ` 25,000 Exit Load

@ 1% - if redeemed/

switched out within 1 year from date of investment.

Annualised Expense Ratio from 01 April 2010 onwards 1.94%

@ Including SIP/STP where applicable.




Institutional



HSBC MIP - Savings Plan - Monthly Dividend 29-Apr-11 0.05285 0.04933 11.4444 25-Mar-11 0.02196 0.02047 11.2770 09-Mar-11 0.0175 0.01637 11.2253 HSBC MIP - Savings Plan - Quarterly Dividend 17-Sep-10 0.21961 0.20467 12.4361 16-Dec-10 0.21961 0.20467 12.2219 18-Mar-11 0.15812 0.14737 11.6352

26

An Open Ended Fund with Regular & Savings Plans. Monthly income is not assured and is subject to availability of distributable surplus. Investment Objective: Seeks to generate reasonable returns through investments in Debt and Money Market Instruments.The secondary objective of the scheme is to invest in equity and equity related instruments to seek capital appreciation.


HSBC MIP – Regular Plan (HMIP-R)

Issuer Market Value

(`̀̀̀ in Lacs)

% to Net Assets

Rating

Money Market Instruments CPs Tata Capital 783.49 3.60% A1+ Kotak Mahindra Prime 482.41 2.22% P1+ CDs Fixed andhra Bank 1,839.06 8.46% PR1+ State Bank of Patiala 1,737.48 7.99% A1+ Corporation Bank 1,663.44 7.65% P1+ Bank of India 1,446.87 6.65% P1+ Axis Bank 1,187.90 5.46% P1+ Punjab National Bank 985.26 4.53% PR1+ State Bank of Travancore 964.80 4.44% P1+ Oriental Bank of Commerce 676.68 3.11% P1+ ICICI Bank 459.63 2.11% A1+ State Bank of Hyderabad 369.68 1.70% A1+ Fixed Deposit HSBC Bank** 100.00 0.46% Unrated Corporate/PSU Debt Fixed Exim Bank 1,357.64 6.24% AAA Power Finance Corporation 1,172.82 5.39% AAA State Bank of India 517.74 2.38% AAA Housing Development Finance Corporation 499.05 2.29% AAA Power Grid Corporation of India 219.94 1.01% AAA Power Grid Corporation of India 197.33 0.91% AAA National Bank For Agricultural and Rural 149.40 0.69% AAA LIC Housing Finance 145.74 0.67% AAA Government Securities 7.80% Government Stock M 11-Apr-21 356.79 1.64% Sovereign 8.08% Government Stock-M-02-Aug-2022 255.87 1.18% Sovereign 7.83% Government Stock M 11-Apr-18 255.14 1.17% Sovereign Equities Listed Equity ICICI Bank 161.60 0.74%




Tata Motors DVR 113.52 0.52% Aurobindo Pharma 111.78 0.51%


Titan Industries 96.03 0.44%

Rural Electrification Corporation 95.44 0.44% Crompton Greaves 88.27 0.41%

HDFC Bank 87.23 0.40%



Amara Raja Batteries 77.83 0.36%

Bajaj Auto 73.70 0.34%

Lupin 73.32 0.34%

Coal India 72.30 0.33% Shree Cement 71.46 0.33%



Tata Steel 69.05 0.32%

Asian Paints 68.59 0.32%

Sterlite Industries (India) 67.25 0.31%

Hindustan Door-Oliver 59.33 0.27%


Sun TV Network 53.91 0.25%


UB Engineering 50.58 0.23% Bharat Petroleum Corporation 50.36 0.23%


Spicejet 42.26 0.19%


Hitachi Home & Life Solutions (India) 28.68 0.13%

27


HSBC MIP – Regular Plan (HMIP-R)

Karur Vysya Bank 27.72 0.13%

Ahluwalia Contracts (India) 23.77 0.11%


Karur Vysya Bank Par Value Rights - 75 8.94 0.04% Vardhman Special Steels^^ 2.16 0.01% Cash Equival ents CBLOs 305.97 1.41% Reverse Repos 487.16 2.24% Net Current Assets 430.92 1.98% Total Net Assets as on 29 April 2011 21,746.56 100.00%

** Fixed deposits are placed as margin Deposit for Futures, Options and Equities.

^^ This security is fair valued.

Asset Allocation

Money Market Investments 57.93%

Fixed Deposit 0.46%

Corporate/PSU Debt 19.59%

Government Securities 3.99%

Reverse Repos / CBLOs 3.65%



Rating Profile

AAA 77.51%

Sovereign 3.99%

Unrated 0.46%





HMIP-R

Cr is i l MIP

Blended Index

6 Months 0.43 1.73 1 Year 2 .96 5.48 3 Years 6.90 6.31 5 Years 7.87 7.19 Since Inception

7.74 7.16


Date of Allotment 24-Feb-04 Benchmark Crisil MIP Blended


` 17.0763


21.88 months


16.24 months

Fund Manager Dhimant Shah & Aditya Khemani (for Equity portion) Sanjay Shah & Ruchir Parekh (for Debt portion)

SIP Available Minimum Application Amount Growth ` 10,000 Quarterly Dividend ` 10,000 Monthly Dividend ` 25,000 Exit Load

@ 1% - if redeemed/

switched out within 1 year from date of investment.






Institutional



HSBC MIP - Regular Plan - Monthly Dividend 29-Apr-11 0.04405 0.04111 10.8107 25-Feb-11 0.02635 0.02456 10.6078 25-Mar-11 0.03514 0.03275 10.7181 HSBC MIP - Regular Plan - Quarterly Dividend 17-Sep-10 0.20204 0.18830 11.7955 16-Dec-10 0.20204 0.18830 11.6089 18-Mar-11 0.15812 0.14737 11.2409

28

An Open Ended Income Scheme Investment Objective: Aims to provide reasonable income through a diversified portfolio of fixed income securities. The AMC’s view of interest rate trends and the nature of the Plans will be reflected in the type and maturities of securities in which the Short Term and Investment Plans are invested.


HSBC Income Fund – Investment Plan (HIF-IP)

Issuer

Market Value (`̀̀̀ in

Lacs)

% to Net Assets

Rating

Money Market Instruments

CPs

ICICI Securitires Primary Dealership 198.94 9.84% P1+

CDs

Fixed

Bank of India 189.88 9.39% P1+

Axis Bank 188.59 9.33% P1+

Indian Overseas Bank 184.83 9.14% A1+

Corporation Bank 184.83 9.14% P1+

State Bank of Patiala 184.44 9.12% A1+

Securitised Debt

Fixed India MBS 2002 Series I-D (LIC Housing Finance) PTC

49.92 2.47% AAA (SO)

Corporate/PSU Debt

Fixed

National Housing Bank 259.87 12.85% AAA (Ind)

Housing Development Finance Corporation 199.62 9.87% AAA

LIC Housing Finance 196.13 9.70% AAA National Bank for Agricultural and Rural Development

99.60 4.93% AAA

Exim Bank 48.49 2.40% AAA

Government Securities

7.83% Government Stock M 11-Apr-18 49.07 2.43% Sovereign

5.59% Government Stock M 04-Jun-2016 0.36 0.02% Sovereign

Cash Equivalents

CBLOs 19.43 0.96%




29


HSBC Income Fund – Investment Plan (HIF-IP)

Asset Allocation


Securitised Debt 2.47%



Cash Equivalents 2.49%


Rating Profile

AAA 98.18%

Sovereign 2.44%




HIF-IP

Cr is i l Composi te Bond Fund

Index 6 Months 3.40 2.61 1 Year 4 .94 4.52 3 Years 7.26 5.93 5 Years 7.33 5.84 Since Inception 6.44 5.23


Date of Allotment

10-Dec-02

Benchmark Crisil Composite Bond Fund Index

Average AUM ` 20.63 crores NAV (Growth) per unit (as on 29.04.11)

` 16.8868


18.10 months


15.04 months

Fund Manager Ruchir Parekh& Sanjay Shah

SIP Available Minimum Application Amount Regular ` 10,000 Institutional ` 50,00,000

Exit Load@

Regular and Institutional Options:0.5% - if redeemed/switched out within 6 months from date of investment

Annualised Expense Ratio from 01 April 2010 onwards Regular 1.85% Institutional 1.50%





Institutional



HSBC Income Fund - Investment Plan - Regular Option - Quarterly Dividend 17-Sep-10 0.19325 0.18011 11.1756 16-Dec-10 0.17568 0.16374 11.1070 18-Mar-11 0.17568 0.16374 11.0669 HSBC Income Fund - Investment Plan - Institutional Option - Quarterly Dividend 12-Jun-09 0.11387 0.10598 11.0294 11-Sep-09 0.11387 0.10598 10.9960 11-Dec-09 0.11387 0.10598 11.0973

30

An Open Ended Income Scheme Investment Objective: Aims to provide reasonable income through a diversified portfolio of fixed income securities. The AMC’s view of interest rate trends and the nature of the Plans will be reflected in the type and maturities of securities in which the Short Term and Investment Plans are invested.


HSBC Income Fund – Short Term Plan (HIF-STP)

Issuer


Lacs)

% to Net Assets

Rating


CPs

Tata Capital 1,664.91 6.54% A1+

Tata Capital 988.51 3.88% A1+

ICICI Securitires Primary Dealership 298.40 1.17% P1+

CDs

Fixed

State Bank of Hyderabad 1,940.82 7.62% A1+

State Bank of Travancore 1,908.39 7.49% PR1+

Bank of India 1,898.85 7.46% P1+

Axis Bank 1,885.88 7.41% P1+

Corporation Bank 1,486.96 5.84% P1+

Canara Bank 1,486.14 5.84% P1+

Union Bank of India 1,449.68 5.69% P1+

Indian Bank 1,413.50 5.55% (Ind) F1+

UCO Bank 1,390.50 5.46% P1+

Indian Overseas Bank 1,386.21 5.44% A1+

Punjab National Bank 1,385.70 5.44% PR1+

Central Bank of India 1,384.01 5.44% PR1+

State Bank of Patiala 1,291.06 5.07% A1+

Allahabad Bank 990.77 3.89% A1+

Oriental Bank of Commerce 923.57 3.63% P1+

Cash Equivalents

CBLOs 2,510.46 9.86%


Net Current Assets -2,414.29 -9.48%


(Rated mfAAA by ICRA)

31


HSBC Income Fund – Short Term Plan (HIF-STP)

Asset Allocation




Rating Profile

AAA 98.86%




HIF-STP

Cr is i l Shor t -Term Bond Fund Index

6 Months 3.93 2.97 1 Year 5 .88 4.96 3 Years 6.68 6.82 5 Years 6.98 6.95 Since Inception 6.25 5.90


Core MTM (% to Net Assets)**

66.24

** Core MTM would mean bonds / instruments which have residual maturity greater than 3 months and are valued as per Crisil Bond Valuer. Core MTM is as on 29 April 2011. Date of Allotment

10-Dec-02

Benchmark Crisil Short Term Bond Fund Index


` 16.6320


6.17 months


5.62 months

Fund Manager Ruchir Parekh& Sanjay Shah

SIP Available Minimum Application Amount Regular ` 1,00,000 Institutional ` 100,00,000 Institutional Plus ` 500,00,000

Exit Load@

Regular, Institutional and Institutional Plus Options: 0.25% - if redeemed/switched out within 3 months from date of allotment

Annualised Expense Ratio from 01 April 2010 onwards Regular 0.98% Institutional 0.68% Institutional Plus 0.59%





Institutional



HSBC Income Fund - Short Term Plan - Regular Option - Monthly Dividend 29-Apr-11 0.07994 0.07461 11.0376 25-Mar-11 0.05359 0.04994 10.9879 25-Feb-11 0.03960 0.03690 10.9651 HSBC Income Fund - Short Term Plan - Institutional Option - Monthly Dividend 28-Jan-11 0.03663 0.03414 10.0951 26-Nov-10 0.03889 0.03625 10.0656 31-Dec-10 0.04746 0.04423 10.0862 HSBC Income Fund - Short Term Plan - Institutional Plus Option - Monthly Dividend 29-Apr-11 0.07692 0.07179 10.1120 25-Feb-11 0.00151 0.00141 10.0023 25-Mar-11 0.05182 0.04830 10.0658

32

An Open Ended Income Scheme Investment Objective: Seeks to generate a reasonable return with commensurate risk through investments in floating rate debt instruments and fixed rate debt instruments swapped for floating rate returns. The Scheme may also invest in fixed rate money market and debt instruments.


HSBC Floating Rate Fund – Long Term Plan (HFRF-LTP)

Issuer


Lacs)

% to Net Assets

Rating


CPs

Tata Capital 3,954.03 6.99% A1+

SREI Equipment Finance 2,470.91 4.37% A1+

Kotak Mahindra Prime 1,985.12 3.51% P1+


CDs

Fixed

Canara Bank 4,652.87 8.23% P1+

Syndicate Bank 3,505.29 6.20% PR1+

UCO Bank 3,451.79 6.10% P1+

Axis Bank 2,480.82 4.39% P1+


UCO Bank 2,476.91 4.38% P1+

ING Vysya Bank 2,474.56 4.38% P1+

HDFC Bank 2,474.18 4.37% PR1+

State Bank of Travancore 2,473.26 4.37% P1+

ICICI Bank 2,472.61 4.37% A1+

Central Bank of India 2,469.55 4.37% PR1+


Oriental Bank of Commerce 2,462.66 4.35% P1+

ING Vysya Bank 2,461.34 4.35% P1+


Oriental Bank of Commerce 1,484.91 2.63% P1+

Axis Bank 988.56 1.75% P1+

Canara Bank 689.61 1.22% P1+

Cash Equivalents

CBLOs 938.00 1.66%

Reverse Repos 1,493.50 2.64%




33


HSBC Floating Rate Fund – Long Term Plan (HFRF-LTP)

Asset Allocation




Rating Profile

AAA 96.04%




HFRF-LTP

Cr is i l L iqu id Fund Index

6 Months 3.68 3.78 1 Year 6 .06 6.48 3 Years 6.28 6.16 5 Years 6.94 6.47 Since Inception 6.57 6.16



0.00

**Core MTM would mean bonds / instruments which have residual maturity greater than 3 months and are valued as per Crisil Bond Valuer. Core MTM is as on 29 April 2011. Date of Allotment

16-Nov-04

Benchmark Crisil Liquid Fund Index


` 15.1048


1.59 months


1.46 months

Fund Manager Sanjay Shah & Kedar Karnik

SIP Available Minimum Application Amount Regular ` 10,000 Institutional ` 50,00,000

Exit Load@

Nil Annualised Expense Ratio from 01 April 2010 onwards Regular 1.00% Institutional 0.30%





Institutional



HSBC Floating Rate Fund - Long Term Plan - Regular Option - Monthly Dividend 29-Apr-11 0.06921 0.06460 10.0786 25-Mar-11 0.05190 0.04837 10.0591 25-Feb-11 0.04986 0.04647 10.0568 HSBC Floating Rate Fund - Long Term Plan - Institutional Option - Monthly Dividend 29-Apr-11 0.07774 0.07256 10.3847 25-Mar-11 0.06538 0.06094 10.3713 25-Feb-11 0.05217 0.04862 10.3642 HSBC Floating Rate Fund - Long Term Plan - Institutional Option - Weekly Dividend 29-Apr-11 0.01834 0.01710 11.2505 29-Oct-10 0.01284 0.01196 11.2446 27-Aug-10 0.01017 0.00948 11.2413

34

An Open Ended Income Scheme Investment Objective: Seeks to generate a reasonable return with commensurate risk through investments in floating rate debt instruments and fixed rate debt instruments swapped for floating rate returns. The Scheme may also invest in fixed rate money market and debt instruments.


HSBC Floating Rate Fund – Short Term Plan (HFRF-STP)

Issuer


Lacs)

% to Net Assets

Rating

Cash Equivalents

CBLOs 754.24 33.35%





35


HSBC Floating Rate Fund – Short Term Plan (HFRF-STP)

Asset Allocation



Rating Profile




HFRF- STP


1 Week 5.61 7.04 2 Weeks 5.49 6.99 1 Month 5.61 7.23 3 Months 5.87 7.92 6 Months 5.75 7.61 1 Year 5 .22 6.52 3 Years 4.83 6.16 5 Years 5.94 6.47 Since Inception 5.83 6.16 * Past performance may or may not be sustained in the future. Returns less than 1 year are absolute. Returns equal to or greater than 1 year are compounded annualized. ‘Since inception’ returns are calculated on ` 10 invested at inception. Calculations are based on Growth NAVs.

MTM (% to Net Assets)* 0.00 *The MTM % disclosed is the weekly average for the week ended 29 April 2011. Date of Allotment 16-Nov-04 Benchmark Crisil Liquid Fund


` 14.4097


0.10 months

Modified Dur ation of Portfolio

0.04 months

Fund Manager Sanjay Shah & Kedar Karnik

SIP Available Minimum Application Amount Regular ` 10,000 Institutional ` 50,00,000 Institutional Plus ` 5,00,00,000

Exit Load@

Nil Annualised Expense Ratio from 01 April 2010 onwards Regular 0.50% Institutional 0.43% Institutional Plus 0.35% @ Including SIP/STP where applicable.

Expense Ratios (%)

01 April 2011 to 29 April 2011

Average for the month

- Regular 0.50 0.50 - Institutional 0.43 0.43 - Institutional Plus 0.35 0.35




Institutional



HSBC Floating Rate Fund - Short Term Plan - Institutional Option - Monthly Dividend 26-Mar-10 0.01567 0.01567 10.1497 30-Apr-10 0.02177 0.02177 10.1575 28-May-10 0.01928 0.01928 10.1542 HSBC Floating Rate Fund - Short Term Plan - Institutional Plus Option - Monthly Dividend 30-Dec-05 0.03967 0.04259 10.0540 27-Jan-06 0.03825 0.03562 10.0485 24-Feb-06 0.03660 0.03408 10.0483

36

An Open Ended Liquid Scheme Investment Objective: Aims to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities.


HSBC Cash Fund – (HCF)

Issuer


Lacs)

% to Net Assets

Rating


CPs

Tata Capital 2,469.32 7.35% A1+

ICICI Securities Primary Dealership 1,989.35 5.92% P1+


CDs

Fixed

Central Bank of India 2,372.54 7.06% P1+

IDBI Bank 1,994.01 5.94% A1+

Canara Bank 1,773.28 5.28% P1+

Bank of Baroda 1,588.79 4.73% A1+

Axis Bank 1,482.85 4.41% P1+

Syndicate Bank 1,431.74 4.26% PR1+

UCO Bank 1,331.40 3.96% P1+



Cash Equivalents

CBLOs 4,374.35 13.02%


Net Current Asset 2,159.80 6.43%


(Rated mfA1+ by ICRA)

37


HSBC Cash Fund – (HCF)

Asset Allocation



Net Current Asset 6.43%

Rating Profile

AAA 59.81%




HCF


1 Week 7.03 7.04 2 Weeks 7.09 6.99 1 Month 7.17 7.23 3 Months 7.20 7.92 6 Months 6.72 7.61 1 Year 5 .75 6.52 3 Years 4.89 6.16 5 Years 5.89 6.47 Since Inception 5.58 5.72


MTM (% to Net Assets)* 0.00 *The MTM % disclosed is the weekly average for the week ended 29 April 2011. Date of Allotment

04-Dec-02

Benchmark Crisil Liquid Fund Index


` 15.7850


0.92 months


0.82 months

Fund Manager Ruchir Parekh & Kedar Karnik

SIP Available Minimum Application Amount Regular ` 10,000 Institutional ` 50,00,000 Institutional Plus

` 5,00,00,000

Exit Load@

Nil Annualised Expe nse Ratio from 01 April 2010 onwards Regular 0.75% Institutional 0.60% Institutional Plus

0.35%


Expense Ratios (%)

01 April 2011 to29 April 2011






Institutional



HSBC Cash Fund - Institutional Option - Monthly Dividend 29-Apr-11 0.05944 0.05944 10.5968 25-Feb-11 0.04591 0.04591 10.5799 25-Mar-11 0.04624 0.04624 10.5803 HSBC Cash Fund - Institutional Plus Option - Monthly Dividend 28-Mar-11 0.04672 0.04672 10.1359 25-Feb-11 0.04640 0.04640 10.1354 28-Jan-11 0.04450 0.04450 10.1330

38

An Open Ended Gilt Scheme Investment Objective: Aims to generate reasonable returns through investments in Government Securities of various maturities. The AMC's view of interest rate trends and the nature of the plans will be reflected in the maturities of securities in which the Plans are invested.


HSBC Gilt Fund (HGF)

Issuer


Lacs)

% to Net Assets

Rating



8.08% Government Stock-M-02-Aug-2022 4.92 6.39% Sovereign


Cash Equivalents

CBLOs 22.00 28.58%


Net Current Asset 0.34 0.44%

Total Net Assets as on 29 April 2011 76.99 100.00%

Asset Allocation




Rating Profile

Sovereign 25.48%




HGF

I -Sec Composi te

Index 6 Months 3.89 3.40 1 Year 7 .47 5.83 3 Years 2.24 7.96 5 Years 3.18 7.36 Since Inception 3.07 6.01


Date of Allotment

05-Dec-03

Benchm ark I-Sec Composite Index


` 12.5105


27.33 months


18.66 months

Fund Manager Sanjay Shah SIP Available Minimum Application Amount

` 10,000

Exit Load@

0.5% if redeemed / switched out with 6 months from date of investment.



Dividend Declaration Record Date /period



Institutional



HSBC Gilt Fund - Monthly Dividend 31-Oct-08 0.06136 0.05711 10.8077 28-Nov-08 0.04193 0.03903 10.7855 26-Dec-08 0.03400 0.03164 10.7764

39

An Open Ended Debt Scheme

Investment Objective: Seeks to provide liquidity and reasonable returns by investing primarily in a mix of short term debt and money market instruments


HSBC Ultra Short Term Bond Fund (HUSBF) – (HCF)

Issuer


Lacs)

% to Net Assets

Rating


CPs


CDs

Fixed



Canara Bank 990.76 6.77% P1+

Bank of Baroda 893.69 6.11% A1+

IDBI Bank 498.50 3.41% A1+

Canara Bank 296.99 2.03% P1+

Central Bank of India 98.86 0.68% P1+

Corporate/PSU Debt

INBMK Linked

Axis Bank 4,462.97 30.50% LAAA

Cash Equivalents

CBLOs 1,174.04 8.02%




(Rated mfA1+ by ICRA)

40


HSBC Ultra Short Term Bond Fund (HUSBF)

Asset Allocation





Rating Profile

AAA 75.18%



Asset Allocation for Floaters % to Net Asset

INBMK Linked 30.50%


30.5

** Core MTM would mean bonds / instruments which have residual maturity greater than 3 months and are valued as per Crisil Bond Valuer. Core MTM is as on 29 April 2011.

41


HSBC Ultra Short Term Bond Fund (HUSBF)


HUSBF

Customise d Benchmark

Index** 6 Months 6.38 7.44 1 Year 5 .43 6.35 3 years 5.57 6.25 Since Incept ion 6.48 -

* Past performance may or may not be sustained in the future. Returns less than 1 year are absolute. Returns equal to or greater than 1 year are compounded annualized. ‘Since inception’ returns are calculated on ` 10 invested at inception. Calculations are based on Growth NAVs. **Composite index of Crisil Liquid Fund Index (90%) and Crisil Short Term Bond Fund Index (10%)

Date of Allotment

05-Dec-03

Benchmark Customised Benchmark Index**


` 13.2963


1.51 months


1.38 months

Fund Manager Sanjay Shah& Kedar Naik

SIP Available Minimum Application Amount Regular ` 10,000 Institutional ` 50,00,000 Institutional Plus ` 50,00,00,000 Exit Load

@ Regular, Institutional

and Institutional Plus Options:0.25% - if redeemed/switched out within15 days from date of allotment

Annualised Expense Ratio from 01 April 2010 onwards Regular 1.30% Institutional 1.05% Institutional Plus 0.40%

@ Including SIP/STP where applicable

**Composite index of Crisil Liquid Fund Index(90%)and Crisil Short Term Bond Fund Index (10%)

Expense Ratios (%)

01 April 2011 to29 April 2011



Dividend Declaration

Record Date/period of dividend

declared


Institutional



HSBC Ultra Short Term Bond Fund -Institutional Option -Monthly Dividend 29-Apr-11 0.07796 0.07276 10.2270 25-Mar-11 0.04671 0.04354 10.1917 25-Feb-11 0.03604 0.03359 10.1795 HSBC Ultra Short Term Bond Fund-Institutional Plus Option-Monthly Dividend 25-Mar-11 0.05214 0.04859 10.3865 25-Feb-11 0.04125 0.03845 10.3741 28-Jan-11 0.04829 0.04501 10.3821

42

An Open Ended Debt Scheme Investment Objective: Seeks to deliver returns in the form of interest income and capital gains, along with high liquidity, commensurate with the current view on the markets and the interest rate cycle, through active investment in debt and money market instruments.


HSBC Flexi Debt Fund (HFDF)

Issuer


Lacs)

% to Net Assets

Rating


CPs

Kotak Mahindra Prime 496.28 8.95% P1+

CDs

Fixed

Axis Bank 494.96 8.93% P1+


State Bank of Patiala 482.63 8.71% A1+

Indian Overseas Bank 462.07 8.34% A1+

Corporation Bank 462.07 8.34% P1+

Andhra Bank 459.77 8.29% PR1+

Bank of India 284.83 5.14% P1+

Corporate/PSU Debt

Fixed

LIC Housing Finance 490.32 8.85% AAA

Housing Development Finance Corporation 399.24 7.20% AAA National Bank for Agricultural and Rural Development

398.40 7.19% AAA

Power Finance Corporation 48.87 0.88% AAA


7.80% Government Stock-M-11-Apr1 146.63 2.65% Sovereign

8.08% Government Stock-M-02-Aug-2022 49.21 0.89% Sovereign

Cash Equivalents

CBLOs 90.04 1.62%





43


HSBC Flexi Debt Fund (HFDF)

Asset Allocation






Rating Profile

AAA 89.53%

Sovereign 3.53%




HFDF

Cr is i l Composi te Bond Fund

Index 6 Months 3.39 2.61 1 Year 5 .07 4.52 3 Years 8.10 5.93 Since Inception 8.16 6.05


Date of Allotment 05-Oct-07 Benchmark Crisil Composite

Bond Fund Index Average AUM ` 54.30 crores NAV (Growth) per unit (as on 29.04.11)

` 13.2191


14.91months


11.93 months

Fund Manager Sanjay Shah & Ruchir Parekh

SIP Available Minimum Application Amount Regular ` 10,000 Institutional ` 50,00,000 Exit Load

@ Regular &

institutional Option-0.25%- if redeemed/ switched out within 3 months from the date of investment.

Annualised Expense Ratio from 01 April 2010 onwards Regular 1.85% Institutional 1.50%





Institutional



HSBC Flexi Debt Fund -Regular Option -Monthly Dividend 29-Apr-11 0.06847 0.06390 10.3796 25-Mar-11 0.06761 0.06301 10.3788 25-Feb-11 0.04557 0.04247 10.3537 HSBC Flexi Debt Fund-Institutional Option- Monthly Dividend 29-Apr-11 0.07312 0.06824 10.6151 25-Mar-11 0.07166 0.06679 10.6136 25-Feb-11 0.04907 0.04573 10.5880 HSBC Flexi Debt Fund-Regular Option- Quarterly Divi dend 18-Mar-11 0.13176 0.12280 11.2335 16-Dec-10 0.13176 0.12280 11.2075 17-Sep-10 0.13176 0.12280 11.2185 HSBC Flexi Debt Fund- Institutional Option -Monthly Dividend 18-Mar-11 0.13176 0.12280 11.0873 16-Dec-10 0.13176 0.12280 11.0539 17-Sep-10 0.13176 0.12280 11.0575 HSBC Flexi Debt Fund - Institutional Option –Half Yearly Dividend 18-Mar-11 0.10541 0.09824 10.6654 17-Sep-10 0.10541 0.09824 10.4880 12-Mar-10 0.10511 0.09783 10.3551

44


Fund Managers – MIP & Debt

Name of Scheme Fund Manager

HSBC MIP - Savings & Regular Plan

For Debt portion: Sanjay Shah (from 14 August 2009) & For Equity portion: Dhimant Shah (from 14 August 2009) & Aditya Khemani (from 24 February 2009)

HSBC Income Fund - Investment Plan

Ruchir Parekh (from 25 January 2011)& Sanjay Shah (from 09 January 2009)

HSBC Income Fund - Short Term Plan

Ruchir Parekh (from 25 January 2011)& Sanjay Shah (from 09 January 2009)

HSBC Floating Rate Fund Long Term Plan & Short Term Plan

Sanjay Shah (from 09 January 2009) & Kedar Karnik (from 11 January 2010)

HSBC Cash Fund Sanjay Shah (from 09 January 2009) & Kedar Karnik (from 11 January 2010)

HSBC Gilt Fund Sanjay Shah (from 09 January 2009)

HSBC Ultra Short Term Bond Fund

Sanjay Shah (from 09 January 2009) & Kedar Karnik (from 18 December 2008)

HSBC Flexi Debt Fund Sanjay Shah (from 09 January 2009) & Ruchir Parekh (from 25 January 2011)

Fund Manager’s Experience Sanjay Shah Vice President & Fund Manager - Fixed Income B. Com, A.C.A., Post Graduate Diploma in Management Experience: Over 11 years of experience in Risk.

� HSBC Asset Management (India) Private Limited Vice President & Fund Manager, Fixed Income since December 2008 onwards � FIL Fund Management Private Limited Credit Analyst from September 2008 to December 2008 � Lehman Brothers Structured Financial Services Private Limited Vice President, Convertible Products from September 2006 to September 2008 � Rabo India Finance Private Limited Senior Manager – Credit Risk from July 2004 to September 2006 � ICICI Bank Limited Manager, Credit Risk from January 2003 to June 2004 � SBI Funds Management Private Limited Chief Manager, Debt Funds from June 1999 to January 2003

45


Fund Managers – MIP & Debt

Ruchir Parekh Vice President & Fund Manager - Fixed Income MBA, B.Com Experience: Over 10 years experience in research and Fund Management.

� HSBC Asset Management (India) Private Limited Fund Manager, Fixed Income from January 2011 onwards. � AIG Global Asset Management (India) Priave Limited. Fund Manager, Fixed Income from April 2007 - January 2011. � HDFC Asset Management Company Limited. Sr. Manager, Fixed Income Analyst from February 2003 - April 2007. � Bear Stearns & Co., New York, NY Fixed Income Analyst from October 2000 - March 2002. � Moodys Investors Service, New York, NY Senior Associate from June 1997 - October 2000. Kedar Karnik Associate Vice President & Assistant Fund Manager - Fixed Income M.M.S. (Finance), B.E. Experience: Over 5 years experience in research and credit rating.

� HSBC Asset Management (India) Private Limited Associate Vice President & Assistant Fund Manager - Fixed Income from December 2008 to present � HSBC Asset Management (India) Private Limited Associate Vice President & Credit Analyst from July 2008 to December 2008 � CRISIL Limited Manager – Financial Sector Ratings from September 2005 to July 2008 � ICICI Bank Limited Management Trainee from May 2005 to September 2005

46

Statutory Details & Disclaimers

All returns have been sourced from MutualFundsIndia Explorer software unless otherwise stated. With regard to equity schemes (including the equity component of MIPs), Fund performance is calculated on a total return basis (i.e. it includes dividends re-invested) while the benchmark is calculated on a price return basis (i.e. it does not consider dividends re-invested). This document has been prepared by HSBC Asset Management (India) Private Limited (HSBC) for information purposes only and should not be construed as an offer or solicitation of an offer for purchase of any of the funds of HSBC Mutual Fund. All information contained in this document (including that sourced from third parties), is obtained from sources HSBC, the third party believes to be reliable but which it has not independently verified and HSBC, the third party makes no guarantee, representation or warranty and accepts no responsibility or liability as to the accuracy or completeness of such information. The information and opinions contained within the document are based upon publicly available information and rates of taxation applicable at the time of publication, which are subject to change from time to time. Expressions of opinion are those of HSBC only and are subject to change without notice. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed or recommended in this report and should understand that the views regarding future prospects may or may not be realized. Neither this document nor the units of HSBC Mutual Fund have been registered in any jurisdiction. The distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions. Mutual fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing. © Copyright. HSBC Asset Management (India) Private Limited 2011, ALL RIGHTS RESERVED. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Asset Management (India) Private Limited.

Investors may obtain Scheme Information Document / Statement of Additional Information and Key Information Memorandums along with application forms from the office of HSBC Mutual Fund.

Statutory Details: HSBC Mutual Fund has been set up as a trust by HSBC Securities and Capital Markets (India) Private Limited (liability restricted to the corpus of 1 lakh). The Sponsor/associates of the Sponsor/Asset Management Company (AMC) are not responsible or liable for any loss or shortfall resulting from the operation of the Schemes. The Trustees of HSBC Mutual Fund have appointed HSBC Asset Management (India) Private Limited as the Investment Manager. Risk Factors: All investments in mutual funds and s ecurities are subject to market risks and the Net Asset Value (NAV) of the Scheme(s) may go up or down depending on the factors and forces affecting the securities markets . There can be no assurance that the objectives of the Scheme(s) will be achieved. Past performance of the Sponsor, AMC, Mutual Fund or any associates of the Sponsor/AMC do es not indicate the future performance of the Scheme(s) of the Mutual Fund. Th e names of the Scheme(s) do not in any manner indicate the quality of the Scheme(s) or their future prospects or returns. Please read the Scheme Information Document and Sta tement of Additional Information carefully before investing.

47

HSBC MUTUAL FUND CONTACT NUMBERS

City Telephone No.

Ahmedabad 098983 77319 Andhra Pradesh 098496 77319 Bangalore 080 4118 6519 Bihar 099313 97319 Chandigarh 0172 500 8119 Chennai 044 4200 8719 Coimbatore 098944 77319 Delhi 011 4149 0719 Hyderabad 040 6667 4719 Indore 098934 77319 Jaipur 099280 37319 Karnataka 099809 27319 Kerala 098954 77319 Kochi 098954 77319 Kolkata 033 2213 9919 Lucknow 099367 97319 Maharashtra / Goa 099600 77321 MP / Chattisgarh 098934 77319 Mumbai 022 6666 8819 NCR 099107 97319

Pune 020 2600 1119, 020 2600 1121

Punjab 098769 37319 UP 099350 97321 Vadodara 098983 77319

sms INVEST to 56767

HSBC Asset Management (India) Private Limited 314 D. N. Road, Fort, Mumbai 400 001 Tel.: 022-6614 5000 Fax: 022-4002 9600 Email: [email protected] Website : www.assetmanagement.hsbc.com/in

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