May 2015 "Hang Seng Investment Series - "Index Fund Series" / "Mainland China/ Kong Fund Series"" HANG SENG INDEX FUND IMPORTANT RISK WARNINGS / FUND INFORMATION FOR INVESTORS ● Hang Seng Index Fund (the "Fund") invests primarily in the constituent stocks of the Hang Seng Index (the "Index"). ● The key risks to which the Fund is subject include tracking error risks, risks associated with passive investments and risks of concentration of investments in a single market/one or several constituent stocks of the Index. ● The Fund’s investments include shares of companies which have substantial exposure to growth opportunities in the mainland China and listed in Hong Kong (including H-shares and red chips shares). Investing in mainland China, an emerging market, involves special considerations and risks. ● In respect of the Fund’s investments in H-shares or certain red chips shares, the Fund is subject to withholding income tax imposed in the PRC; and such withholding tax will reduce the income from the Fund and adversely affect the performance of the Fund. ● The Manager may at its discretion pay dividend out of the capital of the Fund. Investors should note that payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the Fund’s capital may result in an immediate reduction of the Net Asset Value per Unit of the Fund. ● Investment involves risks and investors may lose substantial part of their investment in the Fund. Investors should not only base on this factsheet alone to make investment decisions, but should read the Fund’s offering documents (including the full text of the risk factors stated therein) in detail.

INVESTMENT OBJECTIVE PERFORMANCE IN HK DOLLAR +

The investment objective of the Fund is to match as closely as practicable Performance in Price Return# the performance of the Index for each of the morning and the afternoon trading sessions of the SEHK through investing primarily in the constituent Cumulative Performance in HK Dollar 3 Mth 6 Mth 1 Yr 3 Yr 5 Yr L-T-D stocks of the Index. Fund - Class A Unit 15.07% 14.59% 27.54% 33.94% 33.94% 255.21% FUND INFORMATION Hang Seng Index 14.80% 17.23% 27.10% 33.37% 33.28% 247.36% Annual Performance in HK Dollar

Fund Manager Hang Seng Investment Management Limited Y-T-D 2014 2013 2012 2011 2010 Trustee HSBC Institutional Trust Services (Asia) Limited Fund - Class A Unit 19.30% 1.61% 2.87% 23.06% -20.04% 4.01% (1) Unit Class Class A Unit Hang Seng Index 19.18% 1.28% 2.87% 22.91% -19.97% 5.32%

Fund Code U42272 Performance in Total Return* U42281(MIP)

Start Date 13/07/1998 Cumulative Performance in HK Dollar Unit Price 3 Mth 6 Mth 1 Yr 3 Yr 5 Yr L-T-D #^ (2) - Morning Unit Price HKD33.06 ^ (2) Fund - Class A Unit 15.07% 17.30% 30.56% 43.12% 48.05% 390.05% - Afternoon Unit Price HKD33.07 Hang Seng Index 15.39% 17.96% 32.14% 48.54% 57.37% 498.22% Past 52 weeks Hi/Lo HKD33.41/ Annual Performance in HK Dollar Unit price HKD25.57 Subscription Fee Up to 3% Y-T-D 2014 2013 2012 2011 2010 Switching Fee (3) 1% Fund - Class A Unit 19.29% 4.08% 4.95% 25.82% -18.47% 6.98% Management Fee Up to 1% p.a. Hang Seng Index 19.80% 5.30% 6.36% 27.22% -17.51% 8.40% Administration Fee Nil Note: On or before 8 October 2004, the Fund solely invested in units of the Hang Seng Index Pooled Fund. + Whilst the investment objective of the Fund is to match as closely as practicable the performance of the Incentive Fee Nil Index, there can be no assurance that the performance of the Fund will be identical to the performance of

Fund Size HKD2,258.48 million the Index. Factors that may affect the performance of the Fund relative to the Index include but are not Base Currency HKD limited to fees, costs and expenses borne by the Fund as well as time difference associated with portfolio re- Dealing Frequency Two Dealing Sessions per Dealing Day (4) balancing, etc. # Fund: Unit Price-to-Unit Price return, with no dividend reinvested. (Source: Unit Prices are provided by HSBC Volatility(5) 15.83% Institutional Trust Services (Asia) Limited. The Fund's performance information is provided by the Manager.) (1) The Manager currently intends to make declaration of distribution on an annual basis (i.e. December in each Please note that the Fund Units currently available are income units only and the Manager currently intends year). Unless a Unitholder requests otherwise, the distribution will be reinvested in the subscription of to make declaration of distribution on an annual basis. Unless a Unitholder requests otherwise, each further Units. distribution from the Fund will be reinvested in the subscription of further Units. The performance (2) The subscription fee has not been included. information presented is calculated based on the assumption that no such reinvestments were made, and is (3) The switching fee of Class A Unit of the Fund is up to 2%. for reference only. (4) A Dealing Day is any day which is a Business Day. Please refer to the Explanatory Memorandum of the Hang Index: Price return with no dividend reinvested. Source: Hang Seng Indexes Company Limited. Seng Investment Series for the definition of "Business Day". * Fund: Unit Price-to-Unit Price return, total return with dividend (if any) reinvested. (Source: Unit Prices are (5) This figure represents 3-year annualized volatility. provided by HSBC Institutional Trust Services (Asia) Limited. The Fund's performance information is provided ^ The Net Asset Value of the Fund will be calculated twice in respect of each Dealing Day as at such time after by the Manager.) Please note that the Fund Units currently available are income units only. The performance each of the Morning Cut-off Time and the Afternoon Cut-off Time respectively. information presented is calculated based on the assumption that there were no distributions to Units subscribed for in the morning are not available for redemption in the afternoon of the same dealing Unitholders, and is for reference only. day. Index: Total return with dividend reinvested, net of PRC withholding tax. Source: Hang Seng Indexes There is only one cut-off time for any fund switching application: it is the afternoon cut-off time. Company Limited.

TOP HOLDINGS

HSBC Holdings 11.16% Holdings 9.17% 6.87% China Construction 6.44% AIA Group 6.33% ICBC 5.04% 4.29% HKEx 3.34% 2.94% China Life Insurance 2.85%

(Source: Hang Seng Investment Management Limited / HSBC Institutional Trust Services (Asia) Limited. All information as at Afternoon Dealing Session on 30 Apr 2015, except for # which represents the Unit Price of the Fund as at the Morning Dealing Session on 30 Apr 2015.)

Please read the disclaimer in relation to the Index in the Fund's Term Sheet. The Fund has been authorized by the Securities and Futures Commission in Hong Kong ("SFC"). (SFC authorisation is not a recommendation or endorsement of the Fund nor does it guarantee the commercial merits of the Fund or its performance. It does not mean the Fund is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.) Certain information contained in this factsheet is obtained and prepared from sources which Hang Seng Investment Management Limited ("HSIM") reasonably believes to be reliable. For information sourced externally (as disclosed), HSIM has reasonable belief that such information is accurate and complete. This factsheet is for your information and reference only, and does not constitute any offer or solicitation to buy or sell any investment fund. Investors should note that all investment involves risks and not all investment risks are predictable. Prices of fund units may go up or down and past performance information presented is not indicative of future performance. Investors should refer to the relevant fund’s offering document (including the full text of the risk factors stated therein) before making any investment decision. This factsheet has not been reviewed by the SFC. Issued by Hang Seng Investment Management Limited, a wholly-owned subsidiary of