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Performance review: December 2016

HSBC Global Investment FundsA selection of focus funds

This publication is intended for Professional Clients only andshould not be distributed to or relied upon by Retail Clients.The information contained in this publication is not intended asinvestment advice or recommendation.Non contractual document.

This brochure includes a selection of 16 funds. It shouldbe noted that there are over 50 funds in the HSBCGlobal Investment Funds range that consists of global,regional and single country funds across Asset classesincluding equities, bonds and multi-asset.

2

Summary

HSBC Global Asset Management 3-4

Investment platform 3

Investment beliefs 4

Equity 6-11

Overview 6-7

HSBC GIF Euroland Equity 8

HSBC GIF Asia ex Japan Equity Smaller Companies 9

HSBC GIF Global Real Estate Equity 10

HSBC GIF Economic Scale Index GEM Equity 11

Fixed Income 13-26

Overview 13-15

HSBC GIF Global Short Duration High Yield Bond 16

HSBC GIF Global High Yield Bond 17

HSBC GIF Global High Income Bond 18

HSBC GIF GEM Debt Total Return 19

HSBC GIF Global Emerging Markets Bond 20

HSBC GIF Euro Bond 21

HSBC Euro Credit Bond 22

HSBC Euro Credit Bond Total Return 23

HSBC Euro High Yield 24

HSBC GIF RMB Fixed Income 25

HSBC GIF Asian Currencies Bond 26

Multi-Asset 28-30

Overview 28-29

HSBC GIF Multi-Asset Style Factors 30

ESG Integration 32-33

Client communication and materials 35-36

3

HSBC Global Asset ManagementStrong global investment platform

Non-contractual document

~2,300 employees

~500 investmentprofessionals

USD415.5 billion undermanagement

Investment and clientservice operations in~26 countries

A focused range of developed and emergingmarkets investment strategies, targeted atinstitutional and wholesale clients

Investment expertise in fixed income, equity,multi-asset and liquidity

Strong global investment platform supportinglocal teams

- Experienced investment teams focused onspecific strategies

- Local resource provides valuable insight andanalysis

- Global platform supports cross-bordercommunications

- Objective of meeting clients expectations

- Risk management focus

Firm-wide statistics

By asset class (USD billion)

Americas

Investmentprofessionals

315EMEA

Investmentprofessionals 157

AsiaInvestment

professionals70

By regional expertise (USD billion)

Strong global investment platform and operations supports local investment teams

*Other includes the asset of Hang Seng Bank, in which HSBC has a majority holding.1. Asia AUM and AUD include Hang Seng assets2. HSBC Jintrust Fund Management company is a joint venture between HSBC Global Asset Management and Shanxi Trust Corporation LimitedSource: HSBC Global Asset Management as at 30 September 2016. Assets from HSBC Brazil are not included. Any differences are due to rounding. Cross-border anddomestic assets by Legal Entity.

Canada

USA

Mexico

Argentina

Bermuda

UKSweden

Luxembourg

JerseyFrance

Spain

Switzerland

Malta

ItalyAustria

Germany

Turkey

Saudi Arabia UAEIndia

Singapore

Hong KongTaiwan

Japan

Australia

China2

EM (115.4)

Europe (127.4)

Global (71.9)

North America (63.5)

Asia Pacific (2.3)

Other (34.9)*

Fixed Income (189.7)

Equity (76.3)

Multi-Asset (55.6)

Liquidity (58.9)

Other (34.9)*

4

HSBC Global Asset ManagementOur investment beliefs

We put clients first

We invest for the long term

We are aligned with HSBC group strategy

We do not believe a flair based approach to beappropriate

We believe that a disciplined approach has powerand predictability

Who we are

Our investment processes and beliefs arecharacterised by:

– Clarity and focus

– Disciplined application

– High standards of governance

– Staying power and courageous integrity

We limit the extent to which our success relies onforecasting

Way of operating

Excess volatility is a symptom of market noise:Therefore we have a strong fundamental focus

We employ strong valuation disciplines and have acontrarian bias

We believe a short-term investment approach isdifficult to deploy successfully

Investments

We believe markets are inherently inefficient

We believe markets mean revert

We believe that excess volatility/risk is oftenmispriced

Markets are fast moving and complex

Our views about the markets

• Our people are our intellectual capital

• Our people follow disciplined processes that helps

us in achieving the right focus

• Our people tailor products to local needs

• Our organisation is designed to increase the power

and relevance of intellectual capital

Our intellectual capital

Excess volatility incites short-termism in investors

Prospective returns typically rise when prices fall

Processes of many investors have become over-engineered

Investors and investing

Source: HSBC Global Asset Management

1 2

3 4

5 6

Equity

6

Equity: introduction

Bill Maldonado

Global CIO Equities

Based in Hong Kong

“Our investment processes in all locations and for all

equity investment strategies are aligned with one

common approach.

Of course, different markets will have different biases

and characteristics and we need to allow for this. For

example, markets vary by number of stocks, liquidity,

market capitalisation etc. Our aim is to have a

consistent approach that can deal with these

differences, benefit from our local knowledge and

provide HSBC clients around the world with an

investment process they can trust for all equity

strategies”.

USD76.3 bn in equityassets under

management acrossdeveloped and

emerging marketstrategies

Analysts in majordeveloped and

emerging countries


~70 equity analysts

~10 macro-economists


Smart Beta / Alternative Weighting Schemes

Passive

Cap-Weighted

Indexation

ActiveFundamental

Stock Selection

FundamentalIndexation

Lower VolatilityMulti-FactorSingle Factor

HSBC equity capabilities

Pure Factor Economic ScaleIndexation

(ESI)

Enhanced Multi-Factor

Each equity capability is tailored to capture the essence of the investment opportunity. We believe that our clients’ alpha and betaequity investment objectives are best achieved through capabilities that have conceptual clarity and an investment process that isdifferentiated by design and implemented with discipline.

Low cost, efficient passive cap-weighted indexation solutions capture equity beta across reference cap-weighted indices

Smart Beta strategies based on Alternative Weighting Schemes and systematic rebalancing aim to deliver better risk-adjustedreturns compared to traditional beta strategies

High conviction, active fundamental stock selection strategies focus on companies with an attractive combination ofprofitability and valuation and aim to exploit large price deviations

With a differentiated investment approach, we believe HSBC strategies can be complementary and provide diversification withinexisting equity allocations.

Source: Assets under management and assets under distribution as at 30 September 2016.

7

Equity: capabilities and active investment process


Our equity solutions

Building blocks for strategic assetallocation

Cap-weighted indexation

Smart Beta / Alternative WeightingSchemes

– Single Factor: Pure Factor

– Multi-Factor: Enhanced Multi-Factor

– Fundamental Indexation: Economic ScaleIndexation (ESI)

– Lower Volatility

Active fundamental stock selection

– Core

– Dividend/Income

– Smaller Companies

– Real Estate

– Thematic

For illustrative purposes only. Source: HSBC Global Asset Management – June 20161 Tax transparency dependent on client domicile and investment domicile. Clients should seek tax advice.Please note that the products implementing the strategies described above may not be authorised/registered for sale in your country.

Investment vehicles

Available through:

Segregated mandate

Common Contractual Fund(Dublin-domiciled)1

Cross-border and locally-domiciled funds

Exchange-traded funds (cap-weighted indexation)

HSBC credentials

Client-focused equity investmentcapabilities

Investment capabilities withconceptual clarity that use aninvestment process differentiatedby design and implemented withdiscipline

Proprietary fundamental research

Local insight, global perspective;global network of investmentprofessionals

Strong investment governance

Strength, stability and values ofthe HSBC Group

2 Investment approach that focuses on rigorous research focused on valuations and profitability, disciplined security selection and risk management.* Visualiser is our internal data base application which seeks to retrieve the components of profitability and valuation of a given company at a given point in time forcross comparison with universe and sector. The output is a graphical illustration (this is why we call it our “Visualiser’ tool) of the universe illustrating how individualstocks position versus peers. Representative overview of the investment process, which may differ by product, client mandate or market conditions.

Implementation will depend on

the universe – stocks available – data availability

All active equity strategiesuse our global process

based on Valuation and Profitability2

Common tools such as Visualiser*To help management and

oversight of portfolios

Active equity investment process overview

An overview of our equity capabilities

8

HSBC GIF Euroland Equity

Denis GrandjeanFrédéric Leguay

• Strong cooperation and daily communication between the fund manager and the equity analysts ensures the fund is reactiveto market opportunities

• Rigorous fundamental research allows the portfolio manager to understand the profitability scenario of each company and todevelop conviction on the most attractive profitability/valuation companies

• Portfolio construction based on conviction: balancing adequate diversification & sufficient level of relative risk

• An access to large and well diversified companies in the Eurozone: companies with solid balance sheets, resilient levels ofprofitability and wide exposure to the global economy

Fund details

Domicile UCITS IV Luxembourg SICAV Minimum initialinvestment

A share: USD5,000 or equivalent

I share: USD1,000,000

Mgt. company HSBC Investment Funds (Luxembourg) S.A. Dealing Daily at 10:00am (CET)

Investment advisor HSBC Bank Plc. Luxembourg Branch Valuation Daily at 5:00pm (CET)

ISIN code AC: LU0165074666

AD: LU0165074740

IC: LU0165074823

ID: LU0165075127

Ongoing charge Management feesA share: 1.50%I share: 0.75%

Administration feesA share: 0.35%I share: 0.25%

Risk/RewardProfile 1

Main risks Equity risk, capital loss risk

*Comparative index is for illustrative purposes only as the fund has no official benchmark. **Characteristics and weightings are for illustrative purposes only, are notguaranteed and are subject to change over time, and without prior notice, taking into account any changes in markets. The performance figures displayed in thedocument relate to the past and past performance should not be seen as an indication of future returns. Representative overview of the investment process, which maydiffer by product, client mandate or market conditions. Source: HSBC Global Asset Management. Data Source - © Copyright 2016 Morningstar, Inc. All RightsReserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warrantedto be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.1Rating is based on price volatility over the last five years, and is an indicator of absolute risk; historical data may not be a reliable indication for the future; the rating isnot guaranteed to remain unchanged and the categorization may shift over time; the lowest rating does not mean a risk-free investment.

Performance (%) as at 31 December 2016

2016 3Y ann. 5Y ann. 2015 2014 2013

Fund (A share class Net) 3.9 5.5 12.4 10.8 1.9 30.5

Comparative index 4.4 6.1 11.9 9.8 4.3 23.4

Excess return -0.5 -0.6 0.5 1.0 -2.4 7.1

Strategy details

Launch 04.04.03

Base currency EUR

AUM as at 31/12/2016 755.10 million

ComparativeIndex*

MSCI EMU Net

Morningstar category Eurozone Large Cap Equity

Liquidity Daily

Portfolio characteristics**

Typical number of holdings 50-60 holdings

Individual stock weightings 1-5% average weights

Sector diversificationMinimum of 15 out of 24 GICS industrygroups

Regional exposure

Primarily invested in the 10 developedEurozone countries (Austria, Belgium,Finland, France, Germany, Ireland, Italy,Netherlands, Portugal, Spain)

Capitalisation constraints Min. market cap of €1 bn (at purchase)

Cash Typically fully invested

Tracking error 3-5%

TurnoverExpected to be moderate given the longterm investment horizon (< 30%)


Active FundamentalStock Selection

(I share)

9

HSBC GIF Asia ex JapanEquity Smaller Companies

• The fund aims to capture growth opportunities in smaller and less-established Asia ex Japan equities by investing within arigorously applied risk management framework

• A disciplined and repeatable investment process, is designed to drive long-term alpha by focusing on bottom-up stockselection

• Strong cooperation and daily communication between the fund manager and the equity analysts ensures the fund is reactiveto market opportunities

• Portfolio construction based on conviction: balancing adequate diversification & sufficient level of relative risk

Alex KwanElina Fung

Fund details





Investment advisor HSBC Global Asset Management (HK) Valuation Daily at 5:00pm (CET)

ISIN code AC: LU0164939612 ; ACEUR: LU0622164845

AD: LU0082770016

IC: LU0164939885

ID: LU0149726845




Main risks Equity risk, foreign exchange risk, liquidityrisk, emerging markets risk, small and midcap risk, capital loss risk



2016 3Y ann. 5Y ann. 2015 2014 2013


Comparative index -2.3 -1.2 4.8 -2.2 5.8 14.4

Excess return 12.6 8.0 9.1 2.8 3.7 10.1

Strategy details

Launch 21.11.97

Base currency USD


ComparativeIndex*

MSCI AC Asia ex JapanSmall Cap Net

Morningstar categoryAsia ex-Japan Small/Mid-Cap Equity

Liquidity Daily


Regional exposure

10 countries in Asia (e.g. Hong Kong,China Taiwan, S. Korea, Malaysia,Indonesia, India, Thailand, Philippines,Singapore)

Typical number of holdings 60-90 holdings

Individual stock weightingsRelative single company weights (bps) ±300

Sector diversification Relative sector weight (bp) ± 700

Country diversification Relative country weight (bp): ± 500

Capitalisation constraintsTypically invests in stocks with less thanUSD 2 bn in market cap

Cash 0-5%

Target tracking 4-12%

Turnover 60%



(I share)

10

HSBC GIF Global Real Estate Equity

Fund details





Investment advisor HSBC Global Asset Management (UK) Ltd Valuation Daily at 5:00pm (CET)


AD: LU1163227579

IC: LU1163227652

ID: LU1163227736




Main risks Equity risk, foreign exchange risk, capitalloss risk

*Characteristics and weightings are for illustrative purposes only, are not guaranteed and are subject to change over time, and without prior notice, taking into accountany changes in markets. The performance figures displayed in the document relate to the past and past performance should not be seen as an indication of futurereturns. Representative overview of the investment process, which may differ by product, client mandate or market conditions. Source: HSBC Global AssetManagement. Data Source - © Copyright 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or itscontent providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers areresponsible for any damages or losses arising from any use of this information. 1Rating is based on price volatility over the last five years, and is an indicator of absoluterisk; historical data may not be a reliable indication for the future; the rating is not guaranteed to remain unchanged and the categorization may shift over time; thelowest rating does not mean a risk-free investment.

Strategy details

Launch 27/03/2015

Base currency USD


ComparativeIndex

n.a.

Morningstar category Property - Indirect Global

Liquidity Daily

Portfolio characteristics*

Exposure Global developed markets only

Typical number of holdings45-50; benchmark agnostic weighting

approach

Target candidates

Targets investment in quality large capcompanies with income-generatingportfolios, conservative capital structuresand efficient cost structures, led by strongand experience management teams

Cluster perspective

We take a cluster perspective whenevaluating investment opportunity andconstructing the portfolio. Clusterrepresent functional grouping, such asresidential, industrial, retail, etc

Turnover c. 25-50%

• The fund seeks to capture the long-run performance of income-producing real estate through investments in global real estateequities

• Diversified across major urban markets and real estate clusters such as residential, office, retail

• Targets investment in quality large cap companies with income-generating portfolios, conservative capital structures andefficient cost structures, led by strong and experience management teams

• Our investment process reflects our perspective as investors in both unlisted and listed property markets

Nick LemingGuy D. Morrell


2016 3Y 5Y 2015 2014 2013

Fund (A share class Net) Fund performance will be shown when it is possible to show two time periods



11

HSBC GIF Economic Scale IndexGEM Equity

Fund details





Investment advisor HSBC Global Asset Management (UK) Ltd Valuation Daily at 5:00pm (CET)


IC: LU0819121061




Main risks Equity risk, foreign exchange risk, liquidityrisk, emerging markets risk, capital lossrisk


Strategy details

Launch 20/03/2013

Base currency USD


ComparativeIndex

HSBC Economic ScaleEmerging Markets Net

Morningstar categoryGlobal Emerging MarketsEquity

Liquidity Daily

Portfolio characteristics*

Fully invested in Emerging Markets

Typical number of holdings ~800

Reference currency USD

Fund’s tracking error vsmarket cap equivalent

2-5%

Index tracking error 0.6%

Replication Full replication

Rebalancing Semi-annual

• The fund aims to track the HSBC Economic Scale Index Emerging Markets by investing in securities that are included inthe Index

• The strategy aims to track the Index while minimising as far as possible the tracking error between the fund‘s performanceand that of the Index

• HSBC Economic Scale Index methodology looks at stocks from a broad spectrum of companies across developed andemerging markets. Stocks in the Index are screened on liquidity, availability and size. Semi-annual rebalancing is used tocapture “pricing errors” in stock markets

• The fund uses a full physical replication approach to replicate the Index

Joseph Molloy


2016 3Y ann. SI ann.. 2015 2014 2013

Fund (A share class Net) 18.9 -1.4 -1.5 -20.0 0.7 -

Comparative index 20.4 -0.1 -0.4 -18.9 2.8 -

Excess return -1.4 -1.2 -1.2 -1.1 -1.3 -


Fundamental Indexation

(I share)

Fixed Income

13

Fixed income: introduction

Xavier Baraton

Global CIO Fixed Income

Based in London

Set portfoliotop-downdecisions

Set countryand industryallocations

Determinetactical bets

and arbitrages

Define theinvestmentuniverse

Investmentrecommendations

Analysts assign andmaintain internal ratings

Portfolio construction

Credit analysts Portfolio managers

Hold the finalresponsibility for all investment

decisions

Main goal is to avoidcredit events

Portfolio construction,position monitoring and risk management

Fixed Income investment process overview

USD189.7 bn in fixedincome assets undermanagement across

developed andemerging market

strategies

Hubs in the major fixedincome markets


~40 credit analysts

~10 macro-economists

Our investment process is bottom-upyet also embedded within a frameworkbased on top-down decision making onpositioning and sector allocation

- Fundamental analysis, autonomousdecision-making within a commonphilosophy are the primary drivers ofperformance

- Issuer and sector selection relies on theglobal credit research platform

- Idea generation and discussion betweenanalysts and portfolio managers


“We are recognised as an active and specialised

fixed income manager with leadership in

Emerging Markets, Credit and other selected

areas such as short duration, asset backed

securities or inflation linked bonds.

Our investment process is robust and based on

a common approach around the world.

We also aim to use the best of our global

resources (ie macro teams) as well as local

insight when managing portfolios”.


14

Fixed income: capabilities and investment philosophy

• Global Aggregate

• Global Government

• Global Short Duration

• Global Total Return

• Global Corporate

• Global High Income

• Global High Yield

• Global Short Duration High Yield

• Global ABS

• Global Inflation Linked

• EMD Core

• EMD Local Debt

• EMD Total Return

• EMD Credit

• EMD Investment Grade

• EMD Inflation Linked

• US Short Duration

• US Credit

• Argentina

• Brazil

• Canada

• China

• Hong Kong

• India

• Indonesia

• Mexico

• Singapore

• Taiwan

• Turkey

• UK

• Euro Aggregate

• Euro Government

• Euro Short Duration

• Euro Credit

• Euro Credit Total Return

• Euro High Yield

• Euro Convertibles

• Euro Inflation Linked

• Asia Local Debt

• Asia Credit

• Asia High Yield

• Focused on delivering sustainable, value-added performance in selected areas at the global fixed income market

• Targeted range of products in areas where we are confident we have expertise and are highly competitive

• Strong global, regional and single country capabilities

Global CountryRegional

Source: HSBC Global Asset Management as at end June 2016. For informational purposes only and should not be construed as a recommendation for anyinvestment product or strategy. Not an exhaustive list of capabilities

Active fundamental approach foremerging markets and credit

• Lack of research and investmentconstraints (ie ALM, ratings) resultin inconsistencies between riskpremiums and fundamentals

• Macro and country analysis is aneffective and reliable approach fordetermining emerging marketcountry and currency allocations

• Fundamental, bottom-up creditresearch is our main foundation toexploit relative value opportunities

Rates and G10 FX marketsutilise active fundamentalapproach and judgmentcombined with quantitativetechniques

• We look to exploit distortionsand inconsistencies between theshape of yield curves andeconomic and financial factors

• In these generally more liquidand efficient markets, we alsodevelop and use sophisticatedmodelling

Two fundamental tenets of our fixedincome investment philosophy

• Fixed income markets are inefficientresulting from misunderstanding andmispricing of risk

• Combining active management withfundamental and in-depth researchenables us to add value in fixed incomeportfolios

Investment philosophy

Capabilities


15

Fixed Income: global research platform

Extensive research resources support the fixed income process

10 Macro and global economicprofessionals

Providing:

• Analysis and ad hoc studies ofglobal economics – growth,inflation, fiscal policy, centralbank policy, geo-political events

• Formulation of top-down ‘HouseView’, assessment of risks to‘House View’ and itsassumptions, scenario analysis

• Assessment of consensus viewevolution, identifyingdisagreements

• Proprietary research and thoughtleadership

Macro and Investment Strategy

15 Quantitative professionalsdedicated to fixed income

Supporting:

• Asset allocation

• Alpha generation for developedmarkets rates, FX and credit

• Risk calibration, risk monitoringand portfolio optimization tools

• Modelling, screening and filteringfor specific capabilities

• Proprietary research and thoughtleadership

Fixed Income Quantitative Research,Portfolio Analytics and Design

40+ Seasoned sector-specialistcredit analysts coveringdeveloped and emerging marketcredits

Covering:

• Definition of eligible investmentuniverse

• Issuer selection – assessmentof fundamentals, valuation andtechnicals

• Sector allocation –fundamentals (macro andinnovation trends, M&A activity,competition, company relativeposition), valuationand technicals

• Credit allocation – ratingmodels, curve description, keymacro indicators

Global Credit Research

Global credit research platform - framework

• Our local/sector specialists can provide detailed issuer recommendations to various credit teams globally depending onthe currency of bond issue

- Our US Dollar funds can invest in a Brazilian meat producer that issues in USD

- Our RMB funds can invest in a European auto manufacturer that issues in RMB

Source: HSBC Global Asset Management as at 19 April 2016. The numbers in the boxes are the number of analysts in that region/industry combination. An analyst can

cover several sectors and all analysts have at least 50% High Yield coverage.


16

HSBC GIF Global Short DurationHigh Yield Bond

Fund details





Investment advisor HSBC Global Asset Management (USA) Inc Valuation Daily at 5:00pm (CET)

ISIN code AC: LU0922809933, ACEUR: LU0930306138ACHEURLU0922810519IC: LU0922810196, ICEUR: LU0930306724ICHEUR: LU0922810600




Main risks Credit risk, interest rate risk, liquidity risk,capital loss risk


Strategy highlights

Strategy details

Launch 12/06/2013

Base currency USD


ComparativeIndex*

BOA ML Global HY 1-3Year BB-B US and EuroNon Financial 2%Constrained (USDhedged)

Morningstar category Global HY Bond

Liquidity Daily


Currency of assets (hedgedto comparative index)

Min. 90% (and max. 10% in othercurrencies)

AllocationBB and B high yield corporate bonds(USD and EUR)

Tactical allocationInvestment grade (max. 30%);

ABS, EMD local currency (max. 10%)

• A well-diversified non-investment grade and unrated bond portfolio with low interest rate exposure while benefiting from localspecialised resources:- The fund consists of BB and B high yield corporate bonds managed by specialist sleeve managers: USD and Euro- Issuer limit BB- and above: max. 5%; issuer limit B+ : max. 3%- The overall lead portfolio manager is responsible for fund and risk monitoring, overlay and tactical management

• Ability to invest strategically or tactically in additional asset classes or segments- Investment grade securities (max. 30% of the portfolio)- ABS (max. 10%)- Emerging market bonds (max. 10%)

• As least 90% of bonds are denominated in USD or hedged into USD, up to 10% in other currency exposure• Rigorous fundamental bottom-up process

Mary Bowers


2016 3Y ann. SI ann. 2015 2014 2013

Fund (A share class Net) 6.6 2.9 3.4 0.9 1.2 -

Comparative index 10.6 4.1 4.7 -2.6 2.3 -

Excess return -4.0 -1.2 -1.2 1.2 -1.1 -


Ricky Liu

(I share)

17

HSBC GIF Global High Yield Bond

Fund details






ISIN code ACHEUR: LU0850060020AD: LU0780246079IC: LU0780246319; ICHEUR: LU0850060707ID: LU0780246400






Strategy highlights

Strategy details

Launch 20/07/2012

Base currency USD

AUM as at 31/12/2016 2,072.31 million

ComparativeIndex*

BofA Merrill LynchGlobal High Yield BB-BConstrained HedgedUSD

Morningstar category Global HY Bond

Liquidity Daily


Currency of assets (hedgedto comparative index)

USD (and max. 10% in emerging marketscurrency)

AllocationWell-diversified portfolio in US, euro andemerging markets

Tactical allocationInvestment grade

CCC-rated bonds

• A well-diversified non-investment grade and unrated bond portfolio while benefiting from local specialised resources:- The core investment universe consists of BB and B corporate bonds in the US, Euro and emerging markets. These assets

are managed in three sleeves by specialist fund managers- The overall lead portfolio manager is responsible for fund and risk monitoring, overlay and tactical management

• Ability to invest strategically or tactically in additional asset classes or segments- Investment grade securities- CCC-rated bonds

• Euro assets are hedged into USD, up to 10% in local emerging markets currency• Rigorous fundamental bottom-up process


2016 3Y SI ann. 2015 2014 2013

Fund (A share class Net) 11.9 - 2.6 -2.3 - -

Comparative index 14.3 - 4.1 -0.9 - -

Excess return -2.4 - -1.5 -1.4 - -


Mary Bowers Ricky Liu

(I share)

18

HSBC GIF Global High Income Bond

Fund details






ISIN code AC: LU0524291613; ACHEUR: LU0807188023AD: LU0770104676IC: LU0524292264; ICHEUR: LU0807188452ID: LU0524292009





Strategy highlights

• A well-diversified bond portfolio while benefiting from local specialised resources:- The fund consists of four core sleeves managed by specialist sleeve managers: USD BBB, USD BB, Euro (BBB / BB),

EMD USD and an off-benchmark allocation to ABS- The overall lead portfolio manager is responsible for fund and risk monitoring, overlay and tactical management

• Ability to invest strategically or tactically in additional asset classes or segments- Investment grade securities- B-rated entities- ABS- EMD local currency (up to 10% of fund)

• Euro assets hedged into USD, up to 10% EMD local currency risk• Rigorous fundamental bottom-up process

Jerry Samet

Potential sources ofperformance**

Issuers selection (fundamental) 50%

Regional allocation 15%

Sector allocation 10%

Credit allocation (beta) 15%

Duration 10%

Investment guidelines**

Currency ofassets (hedged tocomparativeindex)

USD (and max. 10% inemerging marketscurrency)

AllocationFour sleeves: USDBBB & BB, EUR BBB& BB, EMD and ABS

Tactical allocation

Investment grade, B-rated entities, ABS,EMD local currency(up to 10% of fund)

Strategy details

Launch 28.07.2010

Base ccy USD

AUM as at31/12/2016

2,933.20 million

ComparativeIndex*

35% Barclays EM USD, 20% BarclaysUS Agg. Corp. Baa 15% Barclays USHY Ba 15% BarclaysEuro Agg. Corp. Baa HedgedUSD15% Barclays Euro HY BB(USD Hedged)

Morningstarcategory

US Flexible Bond

Liquidity Daily

Allocation**

Typical number of highyield bonds

600-800

Max. % per bond 4%


2016 3Y ann. SI ann. 2015 2014 2013

Fund (A share class Net) 6.6 3.5 5.5 -1.4 5.5 1.3


Excess return -2.9 -1.8 -1.0 -1.5 3.1 -1.1


(I share)

19

HSBC GIF GEM Debt Total Return

Fund details


M share: USD5,000 or equivalent

L share: USD1,000,000


Investment advisor HSBC Global Asset Management (USA) Inc. Valuation Daily at 5:00pm (CET)

ISIN code M1C: LU0283739885M1CEUR:LU0551372856M1CHEUR: LU0795840619M1D: LU0283740032M1DHEUR:LU0795840700L1C: LU0310511422L1CEUR: LU0551372344

Ongoing charge Management fees1

M1 share: 1.00%L1 share: 0.50%

Administration feesM1 share: 0.35%L1 share: 0.25%

Risk/RewardProfile1

Main risks Credit risk, interest rate risk, foreignexchange risk, liquidity risk, emergingmarkets risk, capital loss risk

*Characteristics and weightings are for illustrative purposes only, are not guaranteed and are subject to change over time, and without prior notice, taking intoaccount any changes in markets. The performance figures displayed in the document relate to the past and past performance should not be seen as an indicationof future returns. 1The Management Company is also entitled to a Performance Fee as further detailed in the Full Prospectus (20% above 5% annual performanceor 5% of the NAV by share class – a hurdle rate). Representative overview of the investment process, which may differ by product, client mandate or marketconditions. Source: HSBC Global Asset Management. Data Source - © Copyright 2016 Morningstar, Inc. All Rights Reserved. The information contained herein:(1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. 1Rating is based on price volatilityover the last five years, and is an indicator of absolute risk; historical data may not be a reliable indication for the future; the rating is not guaranteed to remainunchanged and the categorization may shift over time; the lowest rating does not mean a risk-free investment.

• Flexible access and allocation within the full emerging markets debt opportunity set, both hard and local currencywith an ability to express short, medium, and long-term views irrespective of a benchmark

• Seeks to generate enhanced total return from capital growth and income while reducing volatility normally associatedwith emerging markets

• Asset allocation decision has been a key driver of returns

Potential sources ofperformance*

Country allocation 35%

Issuer selection 15%

Currency selection 15%

Yield curve positioning 15%

Instrument selection 10%

Duration management 10%

Investment guidelines*

Hard currency Flexible

Local currency Flexible

USD cash Flexible

Duration 1-4 years

Typical number ofsecurities 100 – 300

Typical number ofcountries 10 - 30

Strategy details

Launch 18/06/2007

Base currency USD

AUM as at 31/12/2016 3,860.85 million

Comparative Index n.a.

Morningstar categoryGlobal Emerging MarketsBond

Liquidity Daily

Net performance (%) as at 31 December 2016

2016 3Y ann. 5Y ann. 2015 2014 2013

Fund (M1 share class) 5.1 3.0 3.5 -2.2 6.4 -1.8


Strategy highlights

Nishant Upadhyay

(I share)

20

Fund details





Investment advisor HSBC Global Asset Management (USA) Inc. Valuation Daily at 5:00pm (CET)

ISIN code AC: LU0566116140; ACEUR: LU0551370132ACHEUR: LU0811140721AD: LU0566116223; ADEUR: LU0551370215ADHEUR: LU0543814684IC: LU0164944026; ICEUR: LU0551370306ICHEUR: LU0747734787; ID: LU0149732736IDEUR: LU0551370561IDHEUR: LU0431287282



Risk/RewardProfile1

Main risks Credit risk, interest rate risk, emerging marketsrisk, capital loss risk, Non-investment graderisk, derivative risk, CoCo-bond risk, currencyrisk

*Index given for comparative and illustrative purposes only. The fund is not managed to the index, is actively managed and returns may deviate materially from theperformance of the specified index. **Characteristics and weightings are for illustrative purposes only, are not guaranteed and are subject to change over time, andwithout prior notice, taking into account any changes in markets. The performance figures displayed in the document relate to the past and past performance shouldnot be seen as an indication of future returns. Representative overview of the investment process, which may differ by product, client mandate or market conditions.Source: HSBC Global Asset Management. Data Source - © Copyright 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) isproprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. NeitherMorningstar nor its content providers are responsible for any damages or losses arising from any use of this information. 1Rating is based on price volatility over thelast five years, and is an indicator of absolute risk; historical data may not be a reliable indication for the future; the rating is not guaranteed to remain unchangedand the categorization may shift over time; the lowest rating does not mean a risk-free investment.

Strategy details

Launch 24/07/1998

Base currency USD

AUM as at31/12/2016

3,686.13 million

Comparative Index*JP Morgan EMBIGlobal

Morningstar categoryGlobal EmergingMarkets Bond

Liquidity Daily

• Invests predominantly in emerging market sovereign and quasi-sovereign bonds and in bonds issued by companieswhich have their registered office in emerging markets, denominated in USD (EM hard currency)

• Tactical use of emerging market corporate bonds and local currency opportunities

• Average credit quality BBB and tactical use of EM corporate debt and local sovereigns and currencies

• Seeks to manage credit quality in emerging economies while reducing currency risk

• Spread compression and yield have been key drivers of performance

Net performance (%) as at 31 December 2016

2016 3Y ann. 5Y ann. 2015 2014 2013

Fund (A share class) 7.4 3.6 3.8 -1.5 5.0 -7.8

Comparative index 10.1 5.6 5.4 1.2 5.5 -6.6

Excess return -2.7 -2.0 -1.6 -2.7 -0.5 -1.2


Potential sources ofperformance**

Country allocation 50%


Currency selection 10%

Yield curve positioning 10%

Instrument selection 10%

Duration management 5%


Hard currencysovereigns 65 - 80%

Hard currency quasi-sovereigns 15 - 35%

Hard currencycorporates 5 - 15%

Local currency 0 - 15%

Duration+/- 2 year ofbenchmark*

Typical number ofsecurities 200 - 300

Typical number ofcountries 30 - 45

HSBC GIF Global EmergingMarkets Bond

Strategy highlights

Nishant Upadhyay

(I share)

21

HSBC GIF Euro Bond

Fund details





Investment advisor HSBC Global Asset Management (France) Valuation Daily at 5:00pm (CET)


AD: LU0165129403

IC: LU0165130088

ID: LU0165129825




Main risks Credit risk, interest rate risk, capital lossrisk


Strategy highlights

Strategy details

Launch 18/12/2001

Base currency EUR

AUM as at31/12/2016

188.78 million

Comparative Index*Barclays EuroAggregate

Morningstarcategory

EUR DiversifiedBond

Liquidity Daily


Currency ofassets (hedgedto comparativeindex)

EUR

Allocation

Europe, OECD countries

Sovereigns andCorporate bonds

Tacticalallocation

Investment grade

• Invests in a diversified range of government, covered, agencies/supranationals and corporate (financial and non-financial)

investment grade bonds (Baa3/BBB- according to Moody’s and Standard & Poor’s respectively) issued in Euro

• The portfolio typically consists of 80-100 issues. A breakdown of the type of active positions held in the portfolio is as follows:

– 35 - 45 bond picking bets

– 3 - 10 sector bets

– 1 - 3 credit exposure bets

Jean-PhilippeMunch


2016 3Y ann. 5Y ann. 2015 2014 2013



Excess return 0.0 -0.9 -0.2 -2.1 -0.3 0.0


Potential sources of performance**



Credit allocation 10%

Duration & curve 50%

Arbitrages 5%

KarenBenouaich

(I share)

22

HSBC GIF Euro Credit Bond

Fund details







AD: LU0165124867

IC: LU0165125831

ID: LU0165125914




Main risks Credit risk, interest rate risk, capital lossrisk


Strategy highlights

Strategy details

Launch 04/04/2003

Base currency EUR

AUM as at31/12/2016

1,138.15 billion

Comparative Index*Markit iBoxx EURCorporates

Morningstar categoryEUR CorporateBond

Liquidity Daily


Currency ofassets (hedgedto comparativeindex)

EUR

AllocationEurope, non Europe

Corporate bonds

Tacticalallocation

Investment grade

10 % maximum of its netassets in High Yieldissues

• Primarily invests in euro-denominated corporate bonds carrying a minimum credit rating of Baa3/BBB- (according to Moody’s

and Standard & Poor’s respectively), with the opportunity to invest up to 10% in High Yield issues

• The portfolio typically consists of 80-120 credit bonds. A breakdown of the type of active positions held in the portfolio is as

follows:

– 50 - 80 bond picking bets– 2 - 8 sector bets– 2 - 5 credit exposure bets

• The team seeks to invest in stable-to-improving credits at attractive valuations

• This involves proprietary valuation models designed to identify bonds that offer attractive risk premiums and in-depth credit

research to assess the effective risk entailed

Jean-OlivierNeyrat


2016 3Y ann. 5Y ann. 2015 2014 2013


Comparative index 4.7 4.0 5.5 -0.7 8.2 2.2

Excess return -1.4 -0.6 0.7 -0.1 -0.5 0.9




Issuer selection (relative Value) 10%




ErwanOlivier

(I share)

23

HSBC GIF Euro Credit BondTotal Return

Fund details






ISIN code AC : LU0988492970

AD : LU0988493192

IC : LU0988493606

ID : LU0988493788






Strategy highlights

• The fund benefits from bottom-up issuer selection based on the best ideas from our global credit platform as well as adynamic and flexible top-down input to express our views on macroeconomic scenarios

• The strategy has been designed for investors seeking diversified exposure to euro fixed income markets through a broadinvestment universe (government bonds, agencies, covered, credit, hybrids, floaters, CDS)

• The fund’s flexibility is also facilitated by its large investment universe made of a broad range of sub-asset classes andinstruments such as:− Euro or euro-hedged credit bonds (investment grade and high yield)− CDS (either on indices or single names), futures and options− Government bonds and cash (for beta and liquidity management)

Strategy details

Launch 12/12/2013

Base ccy EUR

AUM as at31/12/2016

257.85 million

ComparativeIndex

n.a.

Morningstar categoryOE EUR FlexibleBond

Liquidity Daily

Potential sources of performance*




Investment guidelines*

Currency ofassets (hedged tocomparativeindex)

EUR

Non EUR

Allocation

- Europe, nonEurope

- Sovereigns,Corporate bonds,CDS

Tactical allocationInvestment grade

and high yield issues

Allocation*


80-120

Max. % per bond n.a.


2016 3Y ann. SI ann. 2015 2014 2013

Fund (A share class Net) 2.2 2.8 9.0 -0.7 7.0 -


Jean-OlivierNeyrat

ErwanOlivier

(I share)

24

HSBC GIF Euro HighYield Bond

Fund details







AD: LU0165128421

IC: LU0165129072

ID: LU0165129155




Main risksCredit risk, interest rate risk, liquidity risk,capital loss risk


Strategy highlights

• Core investment universe: BB and B rated corporate bonds

• Investments on an opportunistic basis on Investment Grade or CCC-rated bonds

• All bonds held in the portfolio are denominated in Euro or hedged back to Euro

• Use of CDS (single names and indices) on a long and short basis

• Portfolio typically holds 60-75 High Yield issuers (maximum 4% per issuer) selected on the basis of inputs from the Credit

Research platform

PhilippeIgigabel



Issuer selection (relative Value) 10%



Duration 5%


Currency ofassets

EUR

Euro or hedged backto Euro (currently 8%of GBP

denominated bonds)

AllocationEuro zone, Europe,OECD countries

Tactical allocation

BB and B ratedcorporate bonds

Investment Grade orCCC-rated bonds onan opportunistic basis

Strategy details

Launch 04.04.2003

Base ccy EUR

AUM as at31/12/2016

2,166.54 billion

ComparativeIndex*

BofA Merrill Lynch EuroHigh Yield BB-BConstrained

Morningstarcategory

EUR High Yield Bond

Liquidity Daily

Allocation**


120-160

Max. % per bond n.a.


2016 3Y ann. 5Y ann. 2015 2014 2013



Excess return -2.9 -0.7 -0.8 -0.3 0.3 -1.7


SophieSentilhes

(I share)

25

HSBC GIF RMB Fixed Income

Non contractual document

Fund details





Investment advisor HSBC Global Asset Management (Hong Kong)Limited

Valuation Daily at 5:00pm (CET)

ISIN code AC: LU0692309627; ACOEUR : LU0782296676AD: LU0692309460

IC: LU0692310807; ICEUR: LU0708054647;ID: LU0692310633






Strategy highlights

Strategy details

Launch 25/10/2011

Base currency USD


Comparative Index*Offshore Renminbi OvernightDeposit Rate

Morningstar category RMB Bond

Liquidity Daily


Average credit quality A3/Baa3

Typical number of securities 50-100

• This fund is characterised by bottom-up issuer selection; seeking quality companies (highly sensitive to corporate governanceissues in some of the less well developed markets)

• The fund invests in offshore (CNH) Renminbi bonds; pure Renminbi exposure (no active currency allocation)

• The aim is to achieve a high quality / low duration portfolio

• Credit analysis is key in the investment process; analysis is based on a rigorous issuer selection process which relies onfundamental research with a strong focus on qualitative factors; will buy high yield bonds on a selective basis, although theallocation to these will be limited

• The credit research team (6 based in Hong Kong and 3 in China) leverages the integrated global credit research platform ofanalysts based in New York, London, Paris and Hong Kong with sector and geographic specialisation

• Credit analysts define the universe of eligible investments. Their primary goal is to avoid credit events

• Portfolio managers are responsible for portfolio construction; they set portfolios betas, country and industry allocations as wellas tactical bets and arbitrages

Alfred MuiGregory Suen


2016 3Y ann. SI ann. 2015 2014 2013

Fund (A share class Net) -2.2 -1.8 1.2 -2.6 -0.7 6.1


(I share)

26

HSBC GIF Asian Currencies Bond

Non contractual document

Fund details







ISIN code AC: LU0210635099; ACEUR: LU0712166163AD: LU0210635255IC: LU0210635685;ID: LU0210635842; IDEUR: LU0643830515






Strategy highlights

Strategy details

Launch 27/04/2011

Base currency USD


Comparative Index*Markit iBoxx Pan AsiaBond ex China & HK

Morningstar categoryEAA OE Asia Bond -Local Currency

Liquidity Daily

GordonRodrigues


Target outperformance 100 bps

Target tracking error 0 - 3%

Average portfolio turnover 100 - 150%

Typical number of securities 50-75

Typical number of countries 8


YTD 3Y ann. SI ann. 2015 2014 2013

Fund (A share class Net) -1.3 -2.5 -1.0 -8.0 2.1 -7.2

Comparative index 1.3 -0.7 0.2 -6.0 2.9 -6.2

Excess return -2.6 -1.8 -1.2 -2.0 -0.8 -1.0

• This strategy looks to take advantage of the rapidly growing local currency bond markets

- The new offshore renminbi market is an exciting innovation

- The market is dominated by government bonds, but corporates are a growing sector

• The strategy is managed against a comparative customised Markit iBoxx Pan Asia Bond ex HKD and CNY which is morereplicable than other indices. HKD excluded because of HKD peg and low yields; CNY because the onshore market isinaccessible

• This strategy can be flexible, taking off benchmark positions in

- Corporate bonds

- Non-benchmark currencies (CNH and INR)

- Dollar bonds hedged back into local currencies


J. Teo(I share)

Multi-Asset

28

HSBC Global Asset Management, Multi-AssetBusiness

• Over 20 years of experience managing Multi-Asset solutionsdesigned to meet our clients’ financial objectives

• A globally consistent investment approach blending themerits of quantitative and qualitative methods:

• Active asset allocation

• Valuation driven approach

• Focus on risk management and cost efficient fulfilment

Multi-Asset business: large and diversified



5 Key offices: Hong Kong,Paris, Düsseldorf, London

and Vancouver

5 Key offices: Hong Kong,Paris, Düsseldorf, London

and Vancouver

USD55.6 bnunder management

USD55.6 bnunder management

USD75.1 bnunder distribution

USD75.1 bnunder distribution

Multi-Asset statistics

Multi-Asset AUM (USD55. bn) as at end of September 2016

Global Resources, local implementation

• Multi-Asset investment teams receive input from:

- Global investment support teams (Asset Allocation, Macro, Portfolio Design)

- Fixed Income and Equity investment teams

• Our organisation ensures cohesiveness and consistency, while maintaining the teams’ autonomy

North AmericaInvestment

professionals 45EMEA

Investmentprofessionals 6

AsiaInvestment

professionals4

Canada

USA

Mexico

Argentina

Bermuda

UKFrance

Germany

Turkey

India HongKong

Taiwan

USD43.1 billion AUM

USD38.0 billion AUDEMEA

USD3.6 billion AUM

USD24.3 billion AUDAsia

USD8.8 billion AUM

USD12.9 billion AUD

NorthAmerica


• Our Multi-Asset’s client base is well diversified across our key clientsegments, with a fair split between institutional and retail clients

• Institutional investors represent a significant part of our assets,reflecting our long experience in managing institutional mandates withspecific constraints. Their needs are evolving from benchmarkedsolutions to total or absolute return strategies

• Wealth investors is a fast growing segment as Multi-Asset productsare becoming the default option for outcome oriented solutions formanaging and growing their wealth

Retail (45%)

Private Bank /Wholesale (3%)

Insurance (13%)

Institutional (39%)


29

Leadership structure and teams

• Global Multi-Asset Strategy

• Local tactical asset allocationdecisions

• Ongoing review of risk/returncontribution

• Monthly committees - weeklyinvestment calls

Global with local accountability

• Portfolio construction reviewedglobally

• Asset valuation agreed globally

• Portfolio governance reviewedindependently

Global oversight of processes

• Promotes best practice andconsistency while maintainingteam ownership of performance

• Ties in management of globaland regional process andgovernance frameworks

Benefits of a global team

Multi-Asset CIOsMulti-Asset CIOs

Chris CheethamGlobal CIO

Chris CheethamGlobal CIO

Babak KianiGermany

Babak KianiGermany

J.C. BertrandFrance

J.C. BertrandFrance

Denis GouldAsia

Denis GouldAsia

Philip GlazeUK

Philip GlazeUK

Erick VegaLatAm

Erick VegaLatAm

Jim HugganNorth AmericaJim Huggan

North America

Global Multi-Asset StrategyGlobal CIO / Local CIOs

Heads of local MA Teams

Global Multi-Asset StrategyGlobal CIO / Local CIOs

Heads of local MA Teams

Global Investment StrategyJoseph Little

(+10 Professionals)

Global Investment StrategyJoseph Little

(+10 Professionals)

Portfolio Analytics and DesignIan Barnett

(+5 Professionals)

Portfolio Analytics and DesignIan Barnett

(+5 Professionals)

Product SpecialistsStéphane Levy

(+8 Professionals)

Product SpecialistsStéphane Levy

(+8 Professionals)

Global resources availablefor local teams


Source: HSBC Global Asset Management. Multi-Asset Investment professionals data as at 30 September 2016. For illustrative purpose only

An overview of our philosophy and approach

• Our Multi-Asset capabilities combine multiple alpha sources in both developed and emerging markets and aim to optimiserisk adjusted returns

• We believe asset class prices are excessively volatile compared with underlying fundamentals

- These price fluctuations generate opportunities which can be identified through:

- Analysis of common factors such as valuation, economic cycle, profitability

- Analysis of specific factors (size, quality, confidence, results revision, rate levels,…)

• Our investment process is based on discipline, transparency and control

• Risk budgeting and risk management contribute to performance

• When selecting our underlying investments, we consider Environmental, Social and Governance (ESG) issues as acomponent of our investment due diligence

Our global process provides a well structured environment for local investment teams

30

HSBC GIF Multi-Asset Style Factors

Fund details


I share: USD1,000,000*




ISIN code IC: LU1460782227* Ongoing charge Management feesI share: 0.70%*

Administration feesI share: 0.20%*


Main risks Interest rate risk, equity risk, foreignexchange risk, derivative risk,counterparty risk, emerging markets risk,capital loss risk

* I share class: for all investors. ** Comparative index is for illustrative purposes only as the fund has no official benchmark. *** Characteristics and weightings are forillustrative purposes only, are not guaranteed and are subject to change over time, and without prior notice, taking into account any changes in markets. Theperformance figures displayed in the document relate to the past and past performance should not be seen as an indication of future returns. Representative overviewof the investment process, which may differ by product, client mandate or market conditions. Source: HSBC Global Asset Management. Data Source - © Copyright 2016Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied ordistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arisingfrom any use of this information. 1Rating is based on price volatility over the last five years, and is an indicator of absolute risk; historical data may not be a reliableindication for the future; the rating is not guaranteed to remain unchanged and the categorization may shift over time; the lowest rating does not mean a risk-freeinvestment.

Strategy highlights

Strategy details

Launch 7/10/2016 (I share class*)

Base currency EUR

AUM at launch 104 million

Comparative Index** Eonia Capitalised

Morningstar category Alt-Multistrategy

Liquidity Daily

Portfolio characteristics***

Allocation 9 portfolios (3 asset classes x 3 style factors)

Allocationguidelines

Equity: +/-100%; +/-50% on average

Bond Duration: +/- 18 years; +/- 9 years on average

Currency: +/-100%; +/-60% on average

Total leverage: +/-325%; +/-225% on average

Rebalancing Weekly

Volatility 6-8% with limited directional risk

• The strategy aims to provide long term total return with low correlation to traditional asset classes

• The strategy employs long/short investment strategies within a set of distinct investment “styles” across asset classes (equity,fixed income, DM and currency) and on a global basis including emerging markets

• Investment process:

- Combines 3 style factors (value, carry and momentum) as sources of alpha

- Portfolio construction combines risk parity and weighting methodology to ensure transparent “relative value” solution

• The strategy is implemented using highly liquid derivatives only: index futures, interest rate swaps, currency forwards(including non-deliverable forwards). This makes the portfolio easy to look through in a Solvency II context

• The portfolio is leveraged (up or down) to align with the expected volatility with the targeted risk profile


YTD 3Y 5Y 2015 2014 2013

Fund (I)* Fund performance will be shown when it is possible to show two time periods


M. Guillemet K. Desaulty

ESG Integration

(Environmental, Social andGovernance)

32

Active investment/ESG integrationWe believe that Environment, Social and Governance(ESG) issues can have a material effect on companyfundamentals, in terms of both opportunities and risks.ESG analysis can highlight latent risks and provide earlywarning signals of a potential deterioration of companyfundamentals. Considering ESG factors is an essentialpart of our investment due diligence for active strategies.

We would expect company management to activelyconsider ESG issues within their company strategy andoperations. If they do, the company would be betterplaced to strengthen its competitive position and deliversustained or improving cash flow and profitability. Suchcompanies would contribute to sustainable economicgrowth.

Individual security analysis is assigned to individualinvestment team members, who are responsible for bothfinancial and ESG analysis and, ultimately, the securityrecommendation. This ensures that ESG factors aregiven appropriate weighting in investmentrecommendations and decision-making.

We capture ESG research in our "Global ESG IntranetResearch Platform.“ We add four proprietary analyses toour internal and external data:

1. ESG Roadmap: Materiality of ESG factors by sector

2. ESG Rating: Visible in our investment team’s desktopdecision support system alongside information thatsupports idea generation and portfolio construction

3. ESG Risk Category: We consider an Absoluteapproach by assessing the company’s compliancewith the United Nations Global Compact. We alsoconsider a Relative approach by considering thecompany ESG Rating relative to other companieswithin sectors. An additional layer of “due diligence” isrequired for high risk companies, which requires theinvestment case to be reviewed by the local CIO whowould make the final investment decision

4. Executive Summary: summary snapshot by company

Responsible Investment

Voting ReportingEngagementActive investment/

ESG integration

ReportingAs a signatory to the Montreal Carbon Pledge, on 1December 2015, we reported our carbon footprint forequity portfolios managed in Hong Kong, London andParis.

EngagementFor active strategies, the investment team meets regularlywith companies, both investees and potential investments,providing opportunities to engage with seniormanagement and monitor company performance. Theprincipal objective of our discussions is to understand howcompany management is delivering sustainableprofitability and shareholder returns. We will raise ESGissues to understand management’s perspective andstrategy.

In addition, we aim to undertake specific engagementactivities with companies in serious breach of principlesoutlined in the United Nations Global Compact. Thesecompanies pose high risks to longer-term economicsustainability and growth, and therefore equity marketreturns.

The HSBC Group is engaged

1992: United Nations Environment ProgrammeFinance Initiative

2000: United Nations Global Compact

2003: Equator Principles (founder)

2006: United Nations Principles for ResponsibleInvestment (UN PRI)*

2012: Principles for Sustainable Insurance

2015: Montreal Carbon Pledge

Holistic responsible investing approach

VotingProxies are voted per client instructions or, secondarily, perour Global Proxy Voting policy which reinforces goodgovernance practices. We maintain a record of our votingdecisions including the rationale when we do not supportmanagement.


* The UN PRI HSBC Global Asset Management’s RI Transparency Report is publicly available through the UN PRI websiteFor illustrative purposes only. Source: HSBC Global Asset Management – September 2016

33 Document non contractuel

ESG (Environment, Social and Governance) criteriaIntegrated into our investment processes

Integration of ESG criteria is key in our security selection

• Absolute: level of consistency/adherence to the 10 ONU principles

• Relative approach: ranking from 0 to 10 and per percentile. Source: MSCI ESGResearch & GMI and our ESG internal weightings by sector

• The results of the ratings are ranked from 0 to 10 (10 is best) and a percentileranking is issued (100th is best rate)

Absoluteand

relativeapproach

Ratings:

• « High Risk » : company violated 1 or several of the 10 ONU principles, or ranked inthe 5 last percentile

• « Medium Risk » : company is suspected as not fulfilling 1 of the 10 principles, orranked between 5th and 20th percentiles

• « Low Risk » : identify/determine? Company complies to ONU principles, or rankedbetween 20th and 100th percentiles

Ratings:

• « High Risk » : company violated 1 or several of the 10 ONU principles, or ranked inthe 5 last percentile

• « Medium Risk » : company is suspected as not fulfilling 1 of the 10 principles, orranked between 5th and 20th percentiles

• « Low Risk » : identify/determine? Company complies to ONU principles, or rankedbetween 20th and 100th percentiles

Risk rankingacross

ESGintranet tool

• High, Medium and Low ratings are available in the "Font-office" tools

• « Executive Summary» for each stock (hosted on internal website tool)

• Financial and ESG analysis: for new investment cases, annual reviews andmonitoring of « High Risk »

• A «Due Diligence» is required for all « High Risk » names along with decisions fromlocal CIO who is responsible of the final decision (maintain, under monitoring,exclusion)

RiskManagement

• Voting policy favors governance practice

• We publish an annual report summarising voting decisions and reasons for which wedid support resolutions

For additional information related to the voting poilicy and the exercise of voting rightsis available in the annual report, please refer to the following website:http://www.assetmanagement.hsbc.com/fr/footer/politique.html

Votingright

• A dedicated team of "Engagement" meets both companies held in the portfolio

• The aim of this engagement actions is to create awareness and to increaseunderstanding of our concerns and expectations

• Engagement actions will define our voting decisions and whether the stock shouldbe liquidated

Engagement

Source: HSBC Global Asset Management. For illustrative purposes only. Representative overview of the investment process, which may differ by product,client mandate or market conditions.

Client communication andmaterials

35

Investment and corporate materials

Weekly iNews – over 400 clients are following us!

Investment communication pack

• Weekly, monthly updates (ID, IM)

• New World Insights (NWI)

• Investment Event (IE) publications

• Macro Insight

IW: Investment weekly IM: Investment monthly

IE: Investment Events Macro Insight

Bi-annual investment outlook (e-magazine w/ embedded videos)

• December – June | Macro Insight

– Overview

– Interviews with Global CIOs

– Webinars per asset class

– Outlook per asset class

China Insights India Insights Europe Insights

For illustrative purposes only. Source: HSBC Global Asset Management – June 2016

36

Investment and corporate materials

Fund presentations Fund overviews

• HSBC Global Asset Management Overview

• Organisation, team, and capabilities

• Focus on Fund

• Investment process, portfolio constructionand risk management

• Key features of the fund; HSBC Credentials,

risks, fund details

Capability brochures Capability publications

Handbooks Educational publications

For illustrative purposes only. Source: HSBC Global Asset Management – June 2016

37

Important information

This publication is distributed by HSBC Global Asset Management (France) and is only intended for professional investors as defined byMiFID.

The information contained herein is subject to change without notice. All non-authorised reproduction or use of this commentary and analysiswill be the responsibility of the user and will be likely to lead to legal proceedings. This document has no contractual value and is not by anymeans intended as a solicitation, nor a recommendation for the purchase or sale of any financial instrument in any jurisdiction in which suchan offer is not lawful. The commentary and analysis presented in this document reflect the opinion of HSBC Global Asset Management onthe markets, according to the information available to date. They do not constitute any kind of commitment from HSBC Global AssetManagement (France). Consequently, HSBC Global Asset Management (France) will not be held responsible for any investment ordisinvestment decision taken on the basis of the commentary and/or analysis in this document.

All data come from HSBC Global Asset Management unless otherwise specified. Any third party information has been obtained from sourceswe believe to be reliable, but which we have not independently verified. Representative overview of the investment process, which may differby product, client mandate or market conditions.

The funds presented in this document may not be registered and/or authorised for sale in your country. The performance figures displayed inthe document relate to the past and past performance should not be seen as an indication of future returns. It is important to remember thatthe value of investments and any income from them can go down as well as up and is not guaranteed. Please note that the fund is authorisedto invest a in structured products and derivatives, which may be less liquid than standard bond issues. Please note that the fund is invested ininvestment grade, below investment grade and non rated issues. Non rated issues represent a higher risk of default compared to InvestmentGrade issues. Fluctuations in the rate of exchange of currencies may have a significant impact on fund performance.

Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC Global Asset Management(France) accepts no liability for any failure to meet such forecast, projection or target.

The above mentioned target/limits/objectives is/are to be considered on the recommended minimum investment period; there can be noassurance that the strategy of the fund will achieve this objective.

The funds mentioned may be exposed to Over the Counter (OTC) markets for all or part of its total assets. Certain funds will therefore besubject to the risk that its direct counterparty will not perform its obligations under the OTC transactions and that the Sub-Fund will sustainlosses. Funds may be exposed to specific risk such as emerging markets, interest rates, credit risk, high yield risk, equity risk, fixed incomerisk, small caps risk, contingent convertible security risk, exchange risk, derivative risk, ABS risk, alternative risk, operational risk, focusedstrategy risk.

Investment in Financial Derivative Instruments (FDI) may result in losses in excess of the amount invested. This is because a smallmovement in the price of the underlying financial instrument may result in a substantial movement in the price of the FDI. The performancefigures displayed in the document relate to the past and past performance should not be seen as an indication of future returns.

All subscriptions in any fund presented in this document are accepted only on the basis of the current prospectus, available on request fromHSBC Global Asset Management (France), the centralisation agent, the financial department or the usual representative. Before subscription,investors should refer to the Key Investor Information Document (KIID) and/or the simplified prospectus of the fund as well as its completeprospectus. For more detailed information on the risk associated with the sub-fund, investors should refer to the complete prospectus of thesub-fund. The funds presented are a sub-funds of HSBC Global Investment Funds, a Luxemburg domiciled SICAV. Shares of the Companymay not be offered or sold for sale or sold to any "U.S. Person within the meaning of the Articles of Incorporation, i.e. a citizen or resident ofthe United States of America (the "United States"), a partnership organised or existing under the laws of any state, territory or possession ofthe United States, or a corporation organised or existing under the laws of the United States or of any state, territory or possession thereof, orany estate or trust, other than an estate or trust the income of which from sources outside the United States is not includible in gross incomefor purposes of computing United States income tax payable by it.

Important information for Luxembourg investors: HSBC entities in Luxembourg are regulated and authorised by the Commission deSurveillance du Secteur Financier (CSSF).

Important information for Swiss investors: This document has no contractual value and is not by any means intended as a solicitation, nor arecommendation for the purchase or sale of any financial instrument. This document may be distributed in Switzerland only to qualifiedinvestors according to Art. 10 para 3, 3bis and 3ter of the Federal Collective Investment Schemes Act (CISA).

The presented funds are authorised for distribution in Switzerland in the meaning of Art. 120 of the Federal Collective Investment SchemesAct. (Potential) investors are kindly asked to consult the latest issued Key Investor Information Document (KIID), prospectus, articles ofincorporation and the (semi-)annual report of the fund which may be obtained free of charge at the head office of the representative: HSBCGlobal Asset Management (Switzerland) Ltd., Gartenstrasse 26, P.O. Box, CH-8002 Zurich. Paying agent: HSBC Private Bank (Suisse) S.A.,Quai des Bergues 9-17, P. O. Box 2888, CH-1211 Geneva 1. Investors and potential investors should read and note the risk warnings in theprospectus and relevant KIID. Before subscription, investors should refer to the prospectus for general risk factors and to the KIID for specificrisk factors associated with this fund. Issue and redemption expenses are not taken into consideration in the calculation of performance data.

The above document has been approved for distribution/issue by the following entities:

HSBC Global Asset Management (France) 421 345 489 RCS Nanterre. Portfolio management company authorised by the French regulatoryauthority AMF (no. GP99026) with capital of 8.050.320 euros. Offices: Immeuble Cœur Défense, 110, esplanade du Général Charles deGaulle, 92400 Courbevoie - La Défense 4 . (Website: www.assetmanagement.hsbc.com/fr). Postal address: 75419 Paris cedex 08, France.

HSBC Global Asset Management (Switzerland) Limited. Gartenstrasse 26, P.O. Box, CH-8027 Zurich, Switzerland (Website:www.assetmanagement.hsbc.com/ch). Copyright © 2016. HSBC Global Asset Management (France). All rights reserved.

Copyright © 2017. HSBC Global Asset Management (France). All rights reserved. Updated in January 2017.

AMFR_Ext_189_2016 valid until March 2017


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