HSBC Global Funds ICAV – Index Fund Series

• HSBC Global Funds ICAV - US Equity Index Fund invests in equity securities which are constituents of S&P 500 Net Total Return Index (“the Index”). The Fund may also invest in an equity security in advance of the equity security becoming an Index constituent. The securities in which the Fund invests will be listed or traded on Recognised Markets in the US. The Fund will adopt a full replication strategy by aiming to hold all of the stocks included in the Index in the same proportions in which they are included in the Index. The Fund is subject to the concentration risks of investing in a single market and/or substantial investments in securities issued by a single issuer.
• HSBC Global Funds ICAV - Global Equity Index Fund invests mainly in equity securities which are constituents of MSCI World Net Total Return Index (“the Index”) and equity security in advance of the equity security becoming an Index constituent. If the overall portfolio matches the characteristics of the Index, the Fund may also invest in non-Index constituents.
• HSBC Global Funds ICAV - Global Aggregate Bond Index Fund invests mainly in constituents of Bloomberg Barclays Global Aggregate Bond Index (total return hedged to USD): bonds, Asset Backed Securities (“ABS”), Mortgage Backed Securities (“MBS”), Commercial Mortgage Backed Securities (“CMBS”) and Covered Bonds all of which may be callable.
• HSBC Global Funds ICAV - Global Corporate Bond Index Fund invests mainly in corporate bonds, ABS and MBS all of which are constituents of Bloomberg Barclays Global Aggregate Corporate Bond Index (total return hedged to USD) and may be callable.
• HSBC Global Funds ICAV - Global Emerging Market Government Bond Index Fund invests fixed income securities which are constituents in JP Morgan EMBI Global Diversified Index (total return) (the “Index”), certain securities in the portfolio are not Index constituent securities is permitted. The Fund is subject to the risks of investing in emerging markets.
• HSBC Global Funds ICAV - China Government Local Bond Index Fund invests fixed income securities which are constituents in Bloomberg Barclays China Treasury and Policy Bank 9% Capped Bond Index (total return) (the “Index”), certain securities in the portfolio are not Index constituent securities is permitted. The Fund is subject to the risks of investing in emerging markets, and may involve substantial index concentration risk, new index risk, risks associated with CIBM and Bond Connect, mainland China tax and currency risks, mainland china market risks.
• For HSBC Global Funds ICAV - Global Aggregate Bond Index Fund and Global Corporate Bond Index Fund, if the overall portfolio matches the characteristics of the Indexes, the Funds may also invest in non-Index constituents, included non-Investment grade bonds which may be callable. ABS, MBS, CMBS, unrated bonds, and non-investment grade bonds which are callable bonds may subject to additional risks and volatility. The Funds are also subject to the risks of investing in emerging markets.
• The above Funds are passively managed index funds. Unlike “actively managed” unit trusts and mutual funds, the manager will not have the discretion to adapt to market changes due to the inherent investment nature of the Funds. A fall in their tracking indexes (“the Indexes”) will result in a similar fall in the net asset value of the Funds.
• Changes in the net asset value of the above Funds are unlikely to exactly replicate changes in the Indexes. The Funds’ returns may therefore deviate from those of the Indexes (known as “tracking error”) due to practical limitations as well as fees and expenses, amongst other reasons. Whilst the Funds will seek to minimize tracking error, there is no guarantee or assurance of exact replication of the Indexes.
• Because the above Funds’ base currency, investments and classes may be denominated in different currencies, investors may be affected adversely by exchange controls and exchange rate fluctuations.
• The above Funds may invest in financial derivative instruments for investment purpose which may lead to higher volatility to its net asset value.
• The above Funds’ investments may involve substantial credit, currency, volatility, liquidity, tax, interest rate, sovereign and political risks. Investors may suffer substantial loss of their investments in the Funds.
• Unit trusts are NOT equivalent to time deposits. Investors should not invest in the above Funds solely based on the information provided in this document and should read the offering documents of the Funds for details.

• Onshore RMB bonds lowly correlated with other fixed income assets
  China’s onshore bonds have low correlation with other fixed income assets worldwide, which is conducive to income sources diversification in a turbulent market.

• Provide attractive income in a low yield environment
  The world’s major central banks have slashed their policy rates down to zero or negative, causing developed countries’ sovereign bond yields to plunge to record lows. In contrast, China’s RMB-denominated government bonds offer more attractive yield.

China’s government bond yield remains attractive to global investors

Source: Bloomberg, as of 15 June 2020. Past performance is not indicative of future performance