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HSBC Global Investment Funds GLOBAL BOND Monthly Report 31 August 2021 | Share Class AD

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HSBC Global Investment Funds GLOBAL BOND Monthly Report 31 August 2021 | Share Class AD HSBC Global Investment Funds GLOBAL BOND Monthly report 31 August 2021 | Share class AD Share Class Details Investment objective Key metrics The Fund aims to provide capital growth and income by investing in a portfolio of developed NAV per Share USD 14.70 market bonds. Performance 1 month -0.35% Yield to maturity 1.25% Investment strategy Fund facts UCITS V compliant Yes In normal market conditions, the Fund will mostly invest its assets in investment grade bonds issued in developed markets and currencies of OECD (Organisation for Economic Co-operation Dividend treatment Distributing and Development) countries. The Fund may invest up to 20% of its assets in non-investment Distribution Frequency Annually grade bonds and up to 20% in bonds issued in emerging markets. The Fund may invest up to Dividend ex-date 8 July 2021 10% of its assets in bonds issued by any single government issuer with a non-investment grade rating. The Fund may invest up to 10% of its assets in onshore Chinese bonds which are issued Dividend Yield¹ 0.28% within the People’s Republic of China and traded on the China Interbank Bond Market. The Fund Last Paid Dividend 0.040562 may invest up to 30% in asset-backed securities (ABS) and mortgage-backed securities (MBS). Dealing frequency Daily The Fund may also invest up to 10% of its assets in contingent convertible securities. See the Prospectus for a full description of the investment objectives and derivative usage. Valuation Time 17:00 Luxembourg Share Class Base Currency USD Main risks Domicile Luxembourg Inception date 31 July 1989 • The Fund's unit value can go up as well as down, and any capital invested in the Fund may Fund Size USD 50,821,434 be at risk. Reference 100% Bloomberg Barclays • The Fund invests in bonds whose value generally falls when interest rates rise. This risk is benchmark Global Aggregate typically greater the longer the maturity of a bond investment and the higher its credit quality. The issuers of certain bonds, could become unwilling or unable to make payments on their Managers Ernst Josef Osiander bonds and default. Bonds that are in default may become hard to sell or worthless. Fees and expenses • Derivatives may be used by the Fund, and these can behave unexpectedly. The pricing and Minimum Initial USD 5,000 volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of Investment their underlying reference(s), instrument or asset. Ongoing Charge Figure² 0.997% Management fee 0.750% Performance Fund Reference benchmark Codes 115 ISIN LU0039216972 Bloomberg ticker HSBIMBI LX 110 ¹Dividend Yield: represents the ratio of 105 distributed income over the last 12 months to the fund’s current Net Asset Value. 100 ²Ongoing Charges Figure, is based on expenses over a year. The figure includes annual 100 on starting date 95 Return index rebased to management charge but not the transaction costs. Such figures may vary from time to time. 08/16 08/17 08/18 08/19 08/20 08/21 Past performance is not an indicator of future returns. The figures are calculated in the share class base currency, dividend reinvested, net of fees. Source: HSBC Asset Management, data as at 31 August 2021 HSBC Global Investment Funds GLOBAL BOND Monthly report 31 August 2021 | Share class AD Performance (%) YTD 1 month 3 months 6 months 1 year 3 years ann 5 years ann AD -2.92 -0.35 -0.10 -0.10 0.01 4.32 1.83 Reference benchmark -2.37 -0.42 0.22 0.27 0.72 4.56 2.47 31/08/2020- 31/08/2019- 31/08/2018- 31/08/2017- 31/08/2016- Rolling Performance (%) 31/08/2021 31/08/2020 31/08/2019 31/08/2018 31/08/2017 AD 0.01 5.42 7.69 -3.07 -0.49 Reference benchmark 0.72 5.33 7.77 -1.36 0.19 Reference Reference 3-Year Risk Measures AD benchmark 5-Year Risk Measures AD benchmark Volatility 4.54% 4.43% Volatility 4.70% 4.55% Sharpe ratio 0.66 0.73 Sharpe ratio 0.09 0.23 Tracking error 0.73% -- Tracking error 0.70% -- Information ratio -0.33 -- Information ratio -0.91 -- Reference Fixed Income Characteristics Fund benchmark Relative No. of holdings ex cash 173 27,266 -- Average coupon rate 2.04 2.35 -0.31 Yield to worst 1.23% 1.02% 0.20% Option Adjusted Duration 6.83 7.50 -0.67 Modified Duration to Worst 6.73 7.45 -0.72 Option Adjusted Spread Duration 3.32 3.90 -0.58 Average maturity 10.33 9.07 1.26 Rating average AA-/A+ AA-/A+ -- Reference Maturity Breakdown Credit rating (%) Fund benchmark Relative (Option Adjusted Reference AAA 48.59 36.99 11.59 Duration) Fund benchmark Relative AA 6.15 15.22 -9.07 0-2 years 0.09 0.16 -0.07 A 22.25 31.90 -9.65 2-5 years 0.73 1.07 -0.34 BBB 21.59 15.88 5.71 5-10 years 1.65 2.03 -0.39 BB 1.43 -- 1.43 10+ years 4.36 4.24 0.12 Total 6.83 7.50 -0.67 Past performance is not an indicator of future returns. The figures are calculated in the share class base currency, dividend reinvested, net of fees. Source: HSBC Asset Management, data as at 31 August 2021 HSBC Global Investment Funds GLOBAL BOND Monthly report 31 August 2021 | Share class AD Currency Bloc Currency Allocation Reference Allocation (Option Reference (%) Fund benchmark Relative Adjusted Duration) Fund benchmark Relative USD 43.80 42.03 1.76 Dollar 2.58 3.08 -0.50 EUR 20.25 23.48 -3.23 Other 1.60 1.82 -0.21 JPY 13.24 13.25 -0.01 Japan 1.17 1.28 -0.11 CNY 8.83 7.12 1.70 EM Local Currency 0.90 0.64 0.26 GBP 3.87 4.97 -1.10 United Kingdom 0.57 0.58 -0.01 CAD 2.84 2.82 0.02 Euro 0.01 0.11 -0.09 AUD 2.51 1.42 1.09 Total 6.83 7.50 -0.67 KRW 2.17 1.13 1.04 NOK 1.69 0.10 1.59 SGD 0.78 0.19 0.59 Other Currencies 0.04 3.48 -3.44 Geographical Allocation (%) United States 54.97 36.76 Mainland China 9.18 7.80 Japan 7.00 13.65 Italy 6.42 3.52 United Kingdom 5.98 5.31 Germany 5.28 4.97 France 4.25 5.61 Spain 3.21 2.44 Canada 3.08 3.45 Supranational 1.54 2.27 Other Locations 7.78 14.21 Cash -8.68 Fund Reference benchmark Reference Sector Allocation (%) Fund benchmark Relative Treasuries 66.62 53.20 13.42 Corp Non-fin 11.49 11.59 -0.10 US Agency Mbs 10.53 10.43 0.10 Corp Fin 6.64 6.88 -0.24 Supra/agencies 4.30 14.98 -10.68 Collateralised 0.42 2.91 -2.50 Source: HSBC Asset Management, data as at 31 August 2021 HSBC Global Investment Funds GLOBAL BOND Monthly report 31 August 2021 | Share class AD Top 10 Holdings Weight (%) US TREASURY N/B 2.250 15/08/27 7.30 US TREASURY N/B 0.875 15/11/30 5.95 US TREASURY N/B 0.125 15/09/23 5.25 CHINA GOVT BOND 3.270 19/11/30 3.97 US TREASURY N/B 1.625 15/05/26 3.52 US TREASURY N/B 0.125 31/03/23 3.16 US TREASURY N/B 4.375 15/11/39 2.75 US TREASURY N/B 1.375 15/08/50 2.63 CHINA GOVT BOND 3.390 16/03/50 2.32 DEUTSCHLAND REP 0.000 15/02/31 2.16 Source: HSBC Asset Management, data as at 31 August 2021 HSBC Global Investment Funds GLOBAL BOND Monthly report 31 August 2021 | Share class AD Monthly performance commentary Performance review Rates positioning was positive mainly due to the underweight in duration both in the US and Euro. Indeed, yields rebounded thanks to the recovery of the labour market. However, economics were uneven in the US due to the impact of the Delta variant. Long position in local rates in China also added value as slowing business surveys triggered some easing from the Central Bank. The fund also entered a steepening trade in the UK market. Overweight positions in Italy and Spain versus Germany did not contribute materially as spreads have barely moved over the month. Asset allocation and security selection did not contribute materially while corporate spreads were resilient but uneven and we continued to run a corporate beta slightly above 1. Foreign exchange positioning was positive. High beta currency such as the NOK rebounded where we have an overweight versus EUR and SEK. The short positions in the EUR and GBP vs. USD added to the performance as the USD was supported by the strong US labour market. Strategy The fund underweight duration position versus the benchmark was slightly increased during the month, mainly via an increased underweight position in Germany. We maintained largely unchanged our overall underweight in the US and Japan, and our long leg of the overweight position in Euro peripherals (Italy and Spain) versus Germany. We increased slightly our small overweight position in China. We increased our overall credit exposure via small additions in Securitised Credit. We maintained the EUR as our preferred funding currency given the strong theme currently on US outperformance in terms of economic growth but also vaccine rollout.
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