Hong Kong Equity IC

Investment Objective: The Fund aims to provide long term capital growth by investing in a portfolio of Hong Kong SAR shares, while promoting environmental, social and governance (ESG) characteristics. The Fund promotes ESG characteristics within the meaning of Article 8 of SFDR. More information on HSBC Global Asset Management’s responsible investing policies is available at www.assetmanagement.hsbc.com/about-us/responsible-investing/policies. Investment Policy: In normal market conditions, the Fund will invest at least 90% of its assets in shares (or securities similar to shares) of companies of any size that are based in or carry out the larger part of their business activities in, Hong Kong SAR. The Fund includes the identification and analysis of a company’s ESG Credentials as an integral part of the investment decision making process to reduce risk and enhance returns. ESG Credentials may include environmental and social factors, and corporate governance practices. The Fund will not invest in companies with involvement in specific excluded activities, such as: companies involved in the production of controversial weapons and tobacco; companies with more than 10% revenue generated from thermal coal extraction; and companies with more than 10% revenue generated from coal-fired power generation. The Fund conducts enhanced due diligence on companies that are considered to be non-compliant with the UN Global Compact Principles. Please refer to the Prospectus for more details on ESG Credentials and excluded activities. The Fund may invest up to 20% in China A and China B-shares. For China A-shares, up to 20% through the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect, up to 10% in China A-shares Access Products (CAAPs) and up to 10% in CAAPs issued by any single issuer. The Fund may invest up to 10% of its assets in other funds and up to 10% in Real Estate Investment Trusts (REITs). The Fund may also invest in derivatives and may use them for efficient portfolio management purposes, hedging and cash flow management purposes. Derivatives will not be used extensively for investment purposes. Derivatives may also be embedded in other instruments used by the Fund. The Fund may enter into securities lending transactions for up to 29% of its assets. However, this is not expected to exceed 25%. The reference currency of the Fund is USD. The reference currency of this share class is USD. The Fund is actively managed and does not track a benchmark. The Fund has an internal or external target to a reference benchmark, FTSE MPF Hong Kong Net. The Investment Advisor will use its discretion to invest in securities not included in the reference benchmark based on active investment management strategies and specific investment opportunities. It is foreseen that a significant percentage of the Fund's investments will be components of the reference benchmark. However, their weightings may deviate materially from those of the reference benchmark. Any deviations with respect to the benchmark are monitored within a comprehensive risk framework, which includes monitoring at security & sector level. The deviation of the Fund’s performance relative to the benchmark is also monitored, but not constrained, to a defined range. The reference benchmark has a high level of concentration. This means that a small number of securities make up a significant proportion of the benchmark. Income is reinvested. You may sell your investment on most working days. Recommendation: this Fund may not be appropriate for investors who plan to withdraw their money within a period of 5 years.