Sustainably Invested BM-BE HSBC Global Investment Funds - Global Equity Climate Change

Share Class AC 30 Sep 2020 AC LU0323239441 30/09/2020 Fund Objective and Strategy Investment Objective The Fund aims to provide long term total return by investing in companies that may benefit from the transition to a low carbon economy. The Fund aims to do this with a lower carbon intensity and a higher environmental, social and governance (“ESG”) rating than the weighted average of the constituents of the MSCI AC World Net index. Investment Strategy The Fund invests in normal market conditions a minimum of 70% in equities and equity equivalent securities of companies with revenue exposure to climate transition themes. The minimum revenue exposure threshold will be at least 10% of the relevant company’s total revenue. The Fund will not invest in equities and equity equivalent securities of companies or REITs considered non-compliant with the United Nations Global Compact Principles or have material exposure, exceeding a revenue exposure threshold, to specific excluded activities. The revenue exposure threshold will not be higher than 30% of the relevant company’s total revenue. Investments in Chinese equities include, but are not limited to, China A&B-shares. The Fund may invest up to 10% in units or shares of UCITS and/or other Eligible UCIs. The Fund may also invest up to 10% in eligible closed-ended Real Estate Investment Trusts (“REITs”). See the Prospectus for a description of the investment objectives and derivative usage.

Share Class Details UCITS V Compliant Yes Performance (%) YTD 1M 3M 1Y 3Y¹ 5Y¹ Distribution Type Accumulating AC 16.71 0.41 18.59 27.56 11.34 11.87 Dealing Frequency Daily Reference Valuation Time 17:00 Luxembourg 1.53 -3.48 8.13 10.44 7.12 10.30 Benchmark Min. Initial Investment USD 5,000

Ongoing Charge Figure 2 1.851% Rolling 30 Sep 2019- 30 Sep 2018- 30 Sep 2017- 30 Sep 2016- 30 Sep 2015- Performance 30 Sep 2020 30 Sep 2019 30 Sep 2018 30 Sep 2017 30 Sep 2016 Annual Management Fee 1.50% (%) AC 27.56 1.48 6.62 19.32 6.41 Share Class Base USD Reference Currency 10.44 1.38 9.77 18.65 11.96 Benchmark Domicile Luxembourg ISIN LU0323239441 3-Year Risk Reference Reference Share Class Inception AC Characteristics Fund 09 Nov 2007 Measures Benchmark Benchmark Date Number of Holdings NAV per Share USD 12.24 Volatility 16.96% 16.89% 52 2,995 ex Cash Fund Size USD 61,151,455 Information Bloomberg Ticker HSCLAUC LX 0.97 - Avg Market Ratio 160,831 277,831 Reference Cap (USD mil) MSCI AC World Net Benchmark Beta 0.97 - Manager Angus Parker

Past performance is not an indicator of future returns. The figures are calculated in the 1Result is annualised when calculation period share class base currency, dividend reinvested, net of fees. is over one year. Source: HSBC Global Asset Management, data as at 30 September 2020 2Ongoing Charges Figure, is based on expenses over a year. The figure includes annual management charge but not the Risk Disclosure transaction costs. Such figures may vary from • The Fund's unit value can go up as well as down, and any capital invested in the Fund may time to time. be at risk. • The value of investible securities can change over time due to a wide variety of factors, including but not limited to: political and economic news, government policy, changes in demographics, cultures and populations, natural or human-caused disasters etc. • The Fund may invest in Emerging Markets, these markets are less established, and often more volatile, than developed markets and involve higher risks, particularly market, liquidity and currency risks. • Derivatives may be used by the Fund, and these can behave unexpectedly. The pricing and volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of their underlying reference(s), instrument or asset. • Investment Leverage occurs when the economic exposure is greater than the amount invested, such as when derivatives are used. A Fund that employs leverage may experience greater gains and/or losses due to the amplification effect from a movement in the price of the reference source. • Further information on the Fund's potential risks can be found in the Key Investor Information Document and Prospectus.

Until 1 December 2013 the name of the sub-fund is HSBC Global Investment Funds – Climate Change. Please refer to the prospectus for the fund's prior investment objective. Monthly Performance Commentary Market Review

Global equities fell in September amid a selloff in technology stocks, ongoing Covid-19 concerns, and uncertainty over the timing of fresh US fiscal stimulus.

US stocks fell largely driven by weak performance in the US technology sector, particularly among mega-cap companies like Apple, Alphabet and Microsoft. The progress of discussions in the US Congress on another stimulus package stalled, despite continued urges from the Federal Reserve Chair, Jerome Powell, for fiscal support to the economy. News on COVID-19 vaccine developments and the continued instability of Mainland China-US relations added to stock market volatility. The S&P500 fell 3.9% in the month.

European stocks fell on heightened worries of new restrictions and lockdowns across Europe in response to the rapid rise in COVID-19 infections, putting the economic recovery into question. Eurozone inflation was reported to have fallen 0.2% in August, painting a weak consumer demand environment amidst the rising unemployment and low wage growth. The Stoxx Europe 600 fell 2.9% and the FTSE All Share fell 1.8% in the month.

Asian stocks fell in general owing to renewed concerns of COVID-19 infection risk, mixed economic data releases and geopolitical events in the region, including the Mainland China- border standoff. In , Yoshihide Suga was sworn in as the new Prime Minister and he vowed to continue with fiscal expansion to bolster the economy. The Shanghai Composite fell 5.2%, the SENSEX fell 1.5%, the KOSPI was flat and the Nikkei 225 rose 0.2% in the month.

Fund Review

Contributors to relative performance included Xinyi Solar, a Mainland China-based solar glass manufacturer, which rose on the back of Mainland China’s pledge to become carbon neutral by 2060 and the EU’s announcement to cut carbon emissions by 55% by 2030 compared to 1990 levels. Both announcements indicate strong long-term demand tailwinds for solar energy. Additionally, Azbil, a Japan-based industrial automation company, rallied as demand for its air controlling equipment and systems rose on the greater need for improved building ventilation following COVID-19. The fund also benefitted from an underweight exposure to Apple, a US-based technology company, which fell as the Information Technology sector gave back gains following a strong rally since March, which benefitted our performance as we do not own the company.

Detractors included First Solar, a US-based solar module manufacturer, which fell as its largest shareholder sold a significant stake in the company in a secondary market offering. Furthermore, SSE, a UK-based electricity network operator, was impacted by an outlook downgrade from stable to negative by Moody’s due to concerns around the company’s financial leverage.

During the period, there was no portfolio turnover.

Sector and country allocation effects are residual to stock selection. At the country level, effects were positive given an underweight exposure to the USA. At the sector level, effects were also positive given an overweight exposure to Industrials.

Outlook Covid-19 is a very significant challenge for the global economy. However, market pricing is broadly consistent with our baseline of a “swoosh” style recovery. Furthermore, substantial policy easing has reduced downside tail risks. However, investors should be aware of the risks. There is high uncertainty about when the global economy will recover to pre-virus levels of output. Policy mistakes are also possible, including a premature withdrawal of fiscal support. Higher government bond yields also pose a risk to current pricing.

Your portfolio aims to deliver diversified global equity exposure with a lower carbon footprint and a higher Environment, Social and Governance rating than the market index, by investing in companies that have exposure to the emerging Low Carbon economy and that look to manage the impact of climate change on its business. These companies also show an attractive combination of profitability and valuation. Reference Carbon Footprint Fund Benchmark Carbon Intensity 77.60 169.28 Carbon Intensity measures the quantity of carbon emission of a company (tonnes CO²e/USD million)

Ten Lowest Carbon Intensity Issuers

Carbon Intensity Carbon Intensity Fund (tonnes CO²e/USD Reference Benchmark (tonnes CO²e/USD million) million) 1 PROLOGIS INC 2.13 People's Insurance Co Grou-H (China) 0.13 2 AZURE POWER GLOBAL LTD 2.77 MERITZ SECURITIES CO LTD 0.14 3 PLC 4.40 SUL AMERICA SA - UNITS 0.24 4 SIEMENS GAMESA RENEWABLE ENE 6.13 PARTNERS GROUP HOLDING AG 0.30 5 AUTODESK INC 7.53 IGM FINANCIAL INC 0.30 6 ACCENTURE PLC-CL A 8.16 CHINA LIFE INSURANCE CO LTD 0.31 7 VERISK ANALYTICS INC 8.23 ZHONGAN ONLINE P&C INSURAN-H 0.32 8 VESTAS WIND SYSTEMS A/S 8.28 SAMPO OYJ-A SHS 0.34 9 IQVIA HOLDINGS INC 8.71 INDUSTRIVARDEN AB-C SHS 0.38 # CAPGEMINI SE 10.40 GJENSIDIGE FORSIKRING ASA 0.44

Ten Highest Carbon Intensity Issuers

Carbon Intensity Carbon Intensity Fund (tonnes CO²e/USD Reference Benchmark (tonnes CO²e/USD million) million) 1 2 SSE PLC 988.86 LUENMEI QUANTUM CO LTD-A 57768.37 3 ORSTED A/S 298.45 SHANXI XISHAN COAL & ELEC-A 36468.45 4 GROUP PLC 291.71 SHANGHAI ELECTRIC POWER CO-A 33754.05 5 TAIWAN SEMICONDUCTOR-SP ADR 255.49 CHINA GREAT WALL SECURITIE-A 25061.47 6 FIRST SOLAR INC 206.93 China Resources Power Hldgs Ordinary HKD 1 (836) 22724.01(China) 7 NESTE OYJ 163.15 GD POWER DEVELOPMENT CO -A 17939.06 8 GRUMA S.A.B.-B 154.11 NTPC LTD 17637.69 9 China Resources Cement Holdings Ltd Ordinary CRODA INTERNATIONAL PLC 125.10 12066.16 # ChinaHKD 0.1 Power (1313) International(2380) (China) Ordinary HKD BALL CORP 114.83 11881.39 1.00 (China) HSBC Europe Sustainable Equity ETF 102.88 SDIC POWER HOLDINGS CO LTD-A 11806.20

Carbon Intensity Description, Portfolio's exposure to carbon-intensive Description companies, expressed in tons CO²e/USD million revenue.

Formula

Weighted Average Carbon Intensity

Carbon Intensity Methodology, Scope 1 and Scope 2 GHG emissions are allocated based on portfolio weights (the current value of the investmnet Methodology relative to the current portfolio value), rather than the equity ownership approach. Gross values should be used.

Company carbon data, can often be “partially disclosed”, i.e. partial geographic coverage, or incomplete operational data. Trucost* undertakes analysis and research to assess company reported results. The proprietary Trucost model enables an estimate of total emissions which relies on more than just reported financial data. Where securities are not covered by Trucost, HSBC assigns a proxy value based on the average intensity score of comparable companies.*Trucost are a division of S&P Global; they assess risks relating to climate change, natural resource constraints, and broader environmental, social, and governance factors. Source of analytics: S&P Trucost / MSCI ESG ESG E S G

Fund 7.4 6.3 5.2 5.9 Reference Benchmark 6.1 6.2 4.9 5.4

ESG for Ten Highest Holdings by Weight

Carbon Fund Weight ESG E S G Intensity

MICROSOFT CORP 3.8% 10.0 7.2 7.2 7.9 28.0 KINGSPAN GROUP PLC 3.4% 8.2 7.5 4.5 6.9 79.9 LEGRAND SA 2.8% 7.5 7.3 2.8 7.5 26.6 NESTE OYJ 2.8% 10.0 5.9 10.0 8.7 163.2 Xinyi Solar Holding Co Ltd (968) (China) 2.7% 5.2 8.6 4.5 4.1 77.5 ACCENTURE PLC-CL A 2.7% 8.8 6.7 5.3 6.7 8.2 AZBIL CORP^ 2.6% 4.7 0.3 0.8 0.5 10.8 TRANE TECHNOLOGIES PLC 2.6% 10.0 7.4 6.3 6.8 34.3 TAIWAN SEMICONDUCTOR-SP ADR 2.4% 8.4 5.3 8.7 6.6 255.5 CRODA INTERNATIONAL PLC 2.4% 10.0 6.9 6.6 7.8 125.1

Carbon Reference Benchmark Weight ESG E S G Intensity

APPLE INC 3.9% 6.4 3.8 5.5 4.6 4.5 MICROSOFT CORP 2.9% 10.0 7.2 7.2 7.9 28.0 AMAZON.COM INC 2.6% 5.5 4.0 3.7 6.7 40.1 FACEBOOK INC-CLASS A 1.2% 4.3 10.0 2.2 4.8 27.3 ALIBABA GROUP HOLDING-SP ADR* 1.1% 5.6 7.8 6.2 0.8 45.4 ALPHABET INC-CL C 0.9% 7.8 7.4 5.7 4.1 32.3 ALPHABET INC-CL A 0.9% 7.8 7.4 5.7 4.1 32.3 JOHNSON & JOHNSON 0.8% 5.6 6.2 4.6 4.1 14.1 Tencent Holdings Ltd (700) Ordinary HKD 0.00002 (China) 0.7% 5.6 9.0 5.1 2.8 16.0 Taiwan Semiconductor Mfg(2330) (RMT) Common NTD 10 (Barra) 0.7% 8.4 5.3 8.7 6.6 255.5

ESG for Ten Lowest Holdings by Weight

Carbon Fund Weight ESG E S G Intensity

HSBC Europe Sustainable Equity ETF^ 0.653% 4.9 0.6 0.9 0.8 102.9 Zhuzhou CRRC Times Electric Co Ltd (HK) 0.696% 1.9 6.0 5.9 2.8 52.1 GRUMA S.A.B.-B 0.819% 4.0 2.8 4.4 5.2 154.1 NV 1.036% 6.9 7.9 5.0 5.3 36.3 COMPASS GROUP PLC 1.061% 6.4 7.0 3.9 7.7 4.4 AUTODESK INC 1.126% 7.9 4.9 5.9 6.8 7.5 Weichai Power Co. Ltd (2338) Ordinary CNY 1.00 Class 'H'(China) 1.141% 1.9 3.8 4.3 3.2 24.7 TPI COMPOSITES INC 1.168% 4.7 5.5 6.9 4.4 63.9 CISCO SYSTEMS INC 1.214% 8.5 5.5 5.8 5.6 14.4 SMURFIT KAPPA GROUP PLC 1.237% 6.8 5.5 3.8 8.1 291.7

Carbon Reference Benchmark Weight ESG E S G Intensity

SHANGHAI INDL (DETACHED)*^ 0.000% 5.2 0.6 0.7 1.2 90.0 HUBEI KAILE SCIENCE & TECH-A^ 0.000% 4.7 0.6 3.3 4.6 155.4 SUOFEIYA HOME COLLECTION C-A 0.000% 1.1 6.2 2.4 5.0 48.8 GRANDJOY HOLDINGS GROUP-A 0.000% 2.4 4.4 2.6 3.2 76.0 PCCW CASH*^ 0.000% 5.3 0.3 2.2 1.3 49.9 ANGANG STEEL CO LTD-A* 0.000% 1.3 1.6 4.1 3.1 1009.3 ZHEJIANG CONBA PHARMACEUTI-A 0.000% 2.5 3.9 3.6 2.8 28.7 FUJIAN STAR-NET COMMUNICAT-A 0.000% 1.5 3.2 2.9 5.1 44.5 ZHEJIANG WANFENG AUTO -A 0.000% 2.4 1.5 4.9 6.1 96.3 INNER MONGOLIA MENGDIAN HU-A^ 0.000% 5.3 1.0 2.9 3.8 25061.5 Source of analytics: S&P Trucost / MSCI Sector Allocation (%) Geographical Allocation (%)

Industrials 32.24 34.84 9.63 United States 58.01 27.77 Information Technology 21.65 9.73 3.18 9.54 Materials 4.78 8.72 Japan 6.88 8.13 Consumer Discretionary 12.87 8.21 2.77 4.93 Utilities 3.09 Mainland China 6.25 3.48 5.33 Communication Services 9.33 Ireland 4.59 2.75 0.19 Energy 2.84 Germany 4.31 2.33 2.52 Financials 12.52 4.25 2.00 1.48 Real Estate 2.75 3.76 1.97 Denmark 0.68 Pooled 0.00 1.85 Finland 2.75 Consumer Staples 7.96 0.33 1.31 Other Locations 10.89 Health Care 12.58 18.62 1.70 Cash & Others 1.70 Cash & Others 0.00 0.00

AC Reference Benchmark AC Reference Benchmark

Top 10 Holdings (%) Location Sector Weight (%) Microsoft Corp United States Information Technology 3.78 Kingspan Group PLC Ireland Industrials 3.35 Legrand SA France Industrials 2.76 Neste Oyj Finland Energy 2.75 Xinyi Solar Holdings Ltd Mainland China Information Technology 2.72 Accenture PLC United States Information Technology 2.68 Azbil Corp Japan Information Technology 2.65 Trane Technologies PLC United States Industrials 2.60 Taiwan Semiconductor Co Ltd Taiwan Information Technology 2.44 Croda International PLC United Kingdom Materials 2.44 Source: HSBC Global Asset Management, data as at 30 September 2020

Index Disclaimer Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com) Important Information HSBC Global Asset Management (Bermuda) Limited (“AMBM”) of 37 Front Street, Hamilton, Bermuda, is a wholly owned subsidiary of HSBC Bank Bermuda Limited (the “Bank”). AMBM and the Bank are licensed to conduct investment business by the Bermuda Monetary Authority.

Funds managed by AMBM are offered by Prospectus only in those jurisdictions where they are permitted by law. Persons are required to inform themselves and observe any relevant restrictions. AMBM makes no representation as to the suitability of the funds for investors.

Investors should be aware that performance returns are affected by market fluctuations. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future performance. Investors should note that the use of derivatives and investments involving a currency other than their own will create foreign exchange exposure, which involves special risks. It is the aim of the Company to preserve capital and, where applicable, to maintain a stable net asset value per share; these aims are not guaranteed. Additionally, investors should consider their investment objectives, whether or not they can assume these risks and should undertake their own appropriate professional advice. Expressions of opinion contained herein are subject to change without notice.

For investors investing via a nominee service provider, the nominee service provider will process the transaction and route all settlement proceeds to you, which may extend the settlement period. Please contact your investment advisor/introducing agent, or in the absence of those the nominee provider directly, to confirm the settlement period.

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Further information can be found in the prospectus. Terms of Glossary Accumulation Share: a type of share where the income earned by the Fund is retained in the Fund ACD: HSBC Global Asset Management (UK) Limited, the Authorised Corporate Director of the Company Actively Managed: where the fund manager uses their expertise to pick investments to achieve the fund’s objectives Beta: an historical measure of volatility to measure how a fund moves versus its benchmark (i.e. an Index) Collective Investment Scheme: a fund that more than one person contributes to with the aim of increasing the value of their investments or receiving income from a pooled investment. A fund manager will invest the pooled money into one or more types of asset, such as stocks, bonds or property Developed Markets: countries with relatively high levels of personal income and established economies Emerging Markets (EM): countries that are progressing toward becoming advanced, usually shown by some development in financial markets, the existence of some form of stock exchange and a regulatory body Equities: shares issued by a company Futures: a financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price Growth: the increase in the value of investments Hedge Funds: an investment fund that pools money from investors and invests in a variety of assets, often with complex investment strategies and risk management techniques Hedge or Hedging: using derivative type investments as a way to reduce risk Income: money generated by a fund, such as interest from a bond or a dividend from a share, which can be paid out to its investors or paid back into the fund and reinvested Income Share: the type of Share where the income earned by the Fund is paid out to you Information Ratio: a measure of the risk-adjusted return of a fund against its benchmark Market Capitalisation: the total dollar market value of a company’s outstanding shares. Commonly referred to as “market cap”, it is calculated by multiplying a company’s shares outstanding by the current market price of one share Net Asset Value (NAV): the value of the scheme property of a fund less the liabilities of the fund Ongoing Charges Figure: a measure of what it costs to invest in a fund. It includes the fee paid to the ACD and other operating costs Price Earnings (P/E) Ratio: the price paid for a share divided by the annual profit earned by the firm per share Preference Shares: shares of a company which entitle the holder to a fixed dividend, whose payment takes priority over that of ordinary share dividends. Preference shares may be convertible to the ordinary shares of a company Property-related securities: shares of property companies that own, manage or develop property and Real Estate Investment Trusts (REITs), which are investment companies that own buildings and land Return(s): the money made or lost on an investment Share(s): an equally valued holding in a fund of a company, representing part ownership of that fund, (including larger denomination shares and smaller denomination shares) Sharpe ratio: a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such calculations Volatility: a measure of the size and frequency of changes in the value of an investment over a short space of time Yield: the income from an investment, usually stated as a percentage of the value of the investment