HSBC Global Investment Funds - Global Lower Carbon Equity

Sustainably Invested BM-BE HSBC Global Investment Funds - Global Lower Carbon Equity

Share Class AC 31 Aug 2021 AC LU1674673428 31/08/2021 Fund Objective and Strategy Investment Objective

The Fund aims to provide long term capital growth and income by investing in shares of companies that have a lower carbon intensity compared to its reference benchmark, MSCI World Net Index. Carbon intensity is calculated as a weighted average of the carbon intensities of the Fund’s investments.

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 developed markets.The investment process identifies and ranks stocks in the Fund’s investment universe. In order to lower the exposure to carbon intensive businesses, all stocks in the portfolio are assessed for their carbon footprint. A portfolio which aims to maximize growth and income and reduces the carbon footprint is then created. When assessing the carbon footprint and environmental impact associated with companies, the Investment Adviser will rely on carbon expertise, research and information provided by well-established financial data providers.The Fund will not invest in companies involved in the production of tobacco or related activities.The Fund may invest up to 10% in other funds, including HSBC funds.See the Prospectus for a full description of the investment objectives and derivative usage.

Share Class Details Since UCITS V Compliant Yes Performance (%) YTD 1M 3M 1Y 3Y¹ 5Y¹ Inception¹ Distribution Type Accumulating AC 16.25 2.53 5.90 26.75 11.93 - 11.72 Dealing Frequency Daily Reference Valuation Time 17:00 Luxembourg 18.11 2.49 5.75 29.71 14.96 - 14.32 Benchmark Min. Initial Investment USD 5,000

Ongoing Charge Figure 2 1.147% Rolling 31 Aug 2020- 31 Aug 2019- 31 Aug 2018- 31 Aug 2017- 31 Aug 2016- Performance Management Fee 0.80% 31 Aug 2021 31 Aug 2020 31 Aug 2019 31 Aug 2018 31 Aug 2017 (%) Share Class Base USD AC 26.75 16.31 -4.88 - - Currency Reference Domicile Luxembourg 29.71 16.84 0.26 - - Benchmark ISIN LU1674673428 Share Class Inception 27 Sep 2017 3-Year Risk Reference Reference Date AC Characteristics Fund Measures Benchmark Benchmark NAV per Share USD 15.46 Number of Holdings Fund Size USD 244,087,783 Volatility 16.89% 18.13% 214 1,560 ex Cash Bloomberg Ticker HSGLCAC LX Information Reference -0.95 - Avg Market MSCI World Net Ratio 337,447 382,152 Benchmark Cap (USD mil) Beta 0.92 - HSBC Index and Systematic Equity Manager Portfolio Management Past performance is not an indicator of future returns. The figures are calculated in the Team share class base currency, dividend reinvested, net of fees. Source: HSBC Global Asset Management, data as at 31 August 2021 1Result is annualised when calculation period is over one year. Risk Disclosure 2Ongoing Charges Figure, is based on • The Fund's unit value can go up as well as down, and any capital invested in the Fund may expenses over a year. The figure includes be at risk. annual management charge but not the • The value of investible securities can change over time due to a wide variety of factors, transaction costs. Such figures may vary from including but not limited to: political and economic news, government policy, changes in time to time. demographics, cultures and populations, natural or human-caused disasters etc. • 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. Monthly Performance Commentary Market Review Global equities rose in August as the global economy continued its path to normalisation despite worries about the Delta variant and uncertainty on the US Federal Reserve’s timing of monetary policy tightening. US stocks advanced as corporates posted healthy earnings results and the Senate passed a bipartisan infrastructure bill containing $550bn of new spending. Markets were further bolstered by better-than-expected job creation numbers. The latest US Federal Reserve meeting minutes indicated that most policymakers believed an asset purchase could start later this year, which weighed slightly on sentiment. European stocks moved higher as positive earnings continued, despite some impacts from the backdrop of rising COVID-19 cases and discussions around winding down US monetary stimulus. The UK’s economic recovery remained strong as it continued to ease social restrictions and made further progress with the COVID-19 vaccination programme. Asian stocks generally rose as it bounced back from last month’s retreat that was influenced by concerns around the Chinese government’s regulatory clampdown. The Chinese government signalled further policy interventions during the month including banning unfair competition among internet companies, but investors capitalised on a buying opportunity following last month’s drawdown. Among sectors – Technology, Financials, Utilities and Health Care outperformed. On the other hand, commodity-driven sectors – Basic Materials and Energy – along with Real Estate and Consumer Discretionary, were the laggards in August.

Factor Performance Overall style factor performance was slightly underwater in August. The more pro-cyclical factors marginally outperformed their defensive counterparts in the period. Within alpha factors, Size was the best performing factor globally, despite its modest return. Value was less directional and ended up slightly underwater but also outperformed the other factors. In the defensive universe, Low Risk and Quality factors were penalised and underperformed. Meanwhile, Industry Momentum was the worst-performing factor in August, as it continued to give back from the rewards that it gathered in earlier months. Regionally, in North America, style performance saw Value and Size as the laggard factors and key detractors to performance, while Quality, Low Risk and Industry Momentum were largely flat. In Europe, all alpha factors have lost value, with Industry Momentum lagging, and defensives holding up slightly better than pro-cyclicals. By contrast, in the UK, Size was the best performing factor, along with Value, whilst Quality, Low Risk and Industry Momentum factors were weaker and underperformed. In the Asia Pac ex Japan universe, Value was stronly rewarded and the top performing factor, while Quality lagged behind.

Fund Review On a portfolio level, exposure to low-carbon and ESG characteristics contributed to performance, while Industry Momentum and Value factors weighed on performance the most.

Industries On an industry basis, our overweight allocations to Technology Hardware & Equipment and Insurance coupled with our underweight exposures to Food, Beverage & Tobacco and Energy contributed to performance. Conversely, an overweight allocation to Consumer Durables & Apparel along with our underweight exposures to Materials and Pharmaceuticals, Biotechnology & Life Sciences weighed on performance.

Countries On a country basis, our overweight allocations to Israel and Netherlands coupled with our underweight exposures to Finland and Canada contributed to performance. Conversely, our overweight allocations to Sweden and Singapore along with our underweight exposures to Austria and France weighed on performance.

Stock Level On a stock level basis, our overweight allocations to Agilent Techs. (Health Care, USA) and Ebay (Consumer Discretionary, USA) coupled with an underweight exposure to Mastercard (Information Technology, USA) contributed to performance. Conversely, our overweight allocations to Rio Tinto (Materials, AUS) and Cigna (Health Care, USA) along with our underweight exposures to Bank of America (Financials, USA) and Netflix (Communication Services, USA) weighed on performance. Reference Carbon Footprint Fund Benchmark Carbon Intensity 54.07 136.15 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 2 NN GROUP NV 10126470 0.35 PARTNERS GROUP HOLDING AG 10221643 0.30 3 AVIVA PLC 10126677 0.39 IGM FINANCIAL INC 10142542 0.34 4 5 PHOENIX GROUP HOLDINGS PLC 10370431 0.54 SAMPO OYJ-A SHS 10126643 0.34 6 CIGNA CORP 10377862 0.90 NN GROUP NV 10126470 0.35 7 ASSICURAZIONI GENERALI 10126253 0.94 ST JAMES'S PLACE PLC 10228823 0.36 8 CNP ASSURANCES 10126468 0.95 AVIVA PLC 10126677 0.39 9 AXA SA 10126163 0.99 GJENSIDIGE FORSIKRING ASA 10229284 0.42 # AUTO TRADER GROUP PLC 10223135 1.05 IA FINANCIAL CORP INC 10379481 0.42 SCOUT24 AG 10129281 1.16 SCOR SE 10126277 0.49 HUMANA INC 10262456 1.31 SWISS RE AG 10126693 0.52

Ten Highest Carbon Intensity Issuers

1 Carbon Intensity Carbon Intensity 2 Fund (tonnes CO²e/USD Reference Benchmark (tonnes CO²e/USD million) million) 3 4 ORIGIN ENERGY LTD 10372667 1924.30 VISTRA CORP 10146430 8956.93 5 XINYI GLASS HOLDINGS LTD 10222584 1917.33 RWE AG 10121713 6561.33 6 7 AP MOLLER-MAERSK A/S-A 10221178 938.31 HK ELECTRIC INVESTMENTS -SS 10127084 6208.72 8 NIPPON YUSEN KK 10372743 876.85 EVERGY INC 10306409 5148.13 9 ENEL SPA 10126230 869.96 AMERICAN ELECTRIC POWER 10744184 5095.76 # BARRICK GOLD CORP 10496108 806.14 AES CORP 10160561 4853.37 B2GOLD CORP 10240005 687.59 LAFARGEHOLCIM LTD-REG 10126748 4770.25 RIO TINTO PLC 10126201 620.87 CLP HOLDINGS LTD 10127082 4633.77 NEWCREST MINING LTD 10250584 609.20 AGL ENERGY LTD 10128887 4565.14 OWENS CORNING 10127707 547.36 CF INDUSTRIES HOLDINGS INC 10127615 4536.22

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

Formula

Carbon Intensity Methodology, Scope 1 and Scope 2 GHG emissions are Weighted Average Carbon Intensity 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.

The carbon intensity calculation for government bonds has been revised to be in line with the draft Regulatory Technical Standards for SFDR. The methodology is now as follows:

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 / HSBC Sector Allocation (%) Geographical Allocation (%)

Information Technology 24.77 64.22 22.87 United States 67.72 Health Care 13.92 6.98 12.76 Japan 6.60 Consumer Discretionary 13.83 4.64 11.92 United Kingdom 4.17 Industrials 12.80 3.07 10.37 Switzerland 2.92 Financials 11.34 2.69 13.32 Australia 1.96 Communication Services 7.42 2.19 9.28 Germany 2.95 Consumer Staples 3.78 2.14 6.88 Canada 3.17 Materials 3.24 2.06 4.29 Netherlands 1.41 2.61 1.64 Real Estate 2.74 Sweden 1.02 2.24 1.59 Utilities 2.77 Italy 0.62 0.34 5.07 Energy 2.79 Other Locations 7.46 3.71 3.71 Cash & Others 0.00 Cash & Others 0.00

AC Reference Benchmark AC Reference Benchmark

Top 10 Holdings (%) Location Sector Weight (%) Apple Inc United States Information Technology 3.67 Microsoft Corp United States Information Technology 3.53 Alphabet Inc United States Communication Services 3.13 Amazon.com Inc United States Consumer Discretionary 2.06 NVIDIA Corp United States Information Technology 1.41 Home Depot Inc/The United States Consumer Discretionary 1.35 Accenture PLC United States Information Technology 1.23 Intel Corp United States Information Technology 1.21 Roche Holding AG Switzerland Health Care 1.17 Texas Instruments Inc United States Information Technology 1.15 Source: HSBC Global Asset Management, data as at 31 August 2021

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.

Issued by HSBC Global Asset Management (Bermuda) Limited

Licensed to conduct investment business by the Bermuda Monetary Authority

Further information can be found in the prospectus.

Weight (%) 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 Carbon Intensity Description: Portfolio's exposure to carbon-intensive companies, expressed in tons CO²e/USD million revenue. Carbon Intensity Formula: Σ((current value of investment/current portfolio value)*(issuer's Scope 1 and Scope 2 GHG emissions/issuer's $M revenue)) Carbon Intensity Methodology: Scope 1 and Scope 2 GHG emissions are allocated based on portfolio weights (the current value of the investmnet relative to the current portfolio value), rather than the equity ownership approach. Gross values should be used.