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HSBC Global Investment Funds - Global Bond Total Return

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HSBC Global Investment Funds - Global Bond Total Return BM-BE HSBC Global Investment Funds - Global Bond Total Return Share Class AC 31 Jul 2021 AC LU1163225284 31/07/2021 Fund Objective and Strategy Investment Objective The Fund aims to provide long term capital growth and income by investing in a portfolio of global bonds. Investment Policy The Fund employs a Total Return strategy which has a flexible allocation across the global bond universe and currency markets, over an investment cycle, to achieve risk-adjusted returns above those of the investment universe. However, your capital is still at risk and there is no guarantee of stable growth over time.In normal market conditions, the Fund will primarily invest its assets in investment grade bonds and non-investment grade bonds issued by governments, government-related entities, supranational entities and companies that are based in or carry out the larger part of their business in developed or emerging markets.The Fund may invest up to 10% in onshore Chinese bonds which are issued within the People’s Republic of China and traded on the China Interbank Bond Market.The Fund may invest up to 20% in asset-backed securities and mortgage-backed securities, and up to 10% in contingent convertible securities.The Fund may invest up to 49% in cash and money market instruments, and up to 10% in other funds.The Fund may invest up to 10% in securities issued by any single government issuer with a non-investment grade rating.The Fund’s primary currency exposure is to USD.See the Prospectus for a full description of the investment objectives and derivative usage. Performance (%) Share Class Details UCITS V Compliant Fund Yes Distribution Type Accumulating 120 115 Dealing Frequency Daily 110 Valuation Time 17:00 Luxembourg 105 Min. Initial Investment USD 5,000 100 95 Ongoing Charge Figure 2 1.149% 90 Management Fee 0.90% Share Class Base USD Currency Domicile Luxembourg Performance (%) YTD 1M 3M 1Y 3Y¹ 5Y¹ ISIN LU1163225284 AC 0.81 0.04 0.60 2.01 5.78 3.62 Share Class Inception 27 Feb 2015 Date Rolling NAV per Share USD 12.00 31 Jul 2020- 31 Jul 2019- 31 Jul 2018- 31 Jul 2017- 31 Jul 2016- Performance Fund Size USD 242,898,580 31 Jul 2021 31 Jul 2020 31 Jul 2019 31 Jul 2018 31 Jul 2017 (%) Bloomberg Ticker HSBAICU LX AC 2.01 7.79 7.63 -0.67 1.62 Ernst Josef Osiander Manager Oliver Boulind Past performance is not an indicator of future returns. The figures are calculated in the share class base currency, dividend reinvested, net of fees. 1Result is annualised when calculation period Source: HSBC Global Asset Management, data as at 31 July 2021 is over one year. 2Ongoing Charges Figure, is based on Risk Disclosure expenses over a year. The figure includes annual management charge but not the • The Fund's unit value can go up as well as down, and any capital invested in the Fund transaction costs. Such figures may vary from may be at risk. time to time. • The Fund invests in bonds whose value generally falls when interest rates rise. This risk is 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 bonds and default. Bonds that are in default may become hard to sell or worthless. • 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. 3-Year Risk Measures AC 5-Year Risk Measures AC Volatility 3.43% Volatility 2.95% Sharpe Ratio 1.27 Sharpe Ratio 0.74 Characteristics Fund Characteristics Fund Option Adjusted Spread Number of Holdings ex Cash 220 4.87 Duration (OASD)3 Average Coupon 2.94 Rating Average4 BBB/BBB- Option Adjusted Duration Maturity Average 6.20 2.24 (OAD) Yield to Worst (Gross) 2.51 Sector Allocation (Market Fund Value %) Credit Quality Rating Corp Non-fin 47.15 Fund Allocation (Market Value %) Corp Fin 25.27 AAA 3.17 Supra/agencies 9.93 AA 0.81 Treasuries 5.50 A 12.91 Collateralised 4.86 BBB 47.29 Other 3.67 BB 30.32 Over The counter -0.01 B 1.87 credit default swap index -1.26 NR -1.26 Cash 4.89 Cash 4.89 Sorted from largest to smallest per market values of weight. Sorted from highest to lowest rating. Cash is not included in any rating. Currency Allocation (Market Fund Maturity Breakdown (Option Value %) Fund Adjusted Duration) USD 101.15 0-2 years 0.10 CNY 5.34 2-5 years 1.23 NOK 1.47 5-10 years 0.13 KRW 1.00 10-20 years 1.05 AUD 1.00 20+ years -0.29 MXN 0.00 Total 2.24 NZD 0.00 Sorted from shortest to longest per the length of maturity. CAD -0.06 SEK -0.50 Duration Allocation by GBP -1.08 Currency Bloc (Option Fund Other Currencies -8.32 Adjusted Duration) Only top 10 breakdowns are displayed. Other breakdowns are Euro 1.42 included in Others. EM Local Currency 0.52 Dollar 0.46 Other 0.09 UK -0.26 Total 2.24 Sorted from largest to smallest per Option Adjusted Duration. Top 10 Holdings (%) Weight (%) US TREASURY N/B 0.250 31/05/25 2.21 CHINA GOVT BOND 3.270 19/11/30 1.61 VMWARE INC 2.200 15/08/31 1.29 BORGWARNER INC 1.000 19/05/31 1.14 EXP-IMP BK CHINA 3.230 23/03/30 1.00 CHINA DEV BANK 3.800 25/01/36 0.93 AMERICAN TOWER 1.250 21/05/33 0.88 CNH IND FIN 1.625 03/07/29 0.85 CAPITAL ONE FINL 1.650 12/06/29 0.85 MPT OP PTNR/FINL 3.692 05/06/28 0.84 3Spread duration excludes interest rate futures and bond futures. We can force the local government spread duration to zero for certain funds on request. 4Average credit rating uses 'Index rating' which is an average of S&P, Fitch, Moody’s. The average fund and benchmark rating does not include securities rated NR or NA. Source: HSBC Global Asset Management, data as at 31 July 2021 Monthly Performance Commentary Performance review Carry from credit positions, both Developed Markets and Emerging Markets, were the primary driver of returns. Interest rates fell significantly during the month and contributed modestly to returns. Long positions in the Norwegian krone, Australian dollar and Korean won detracted from performance. Shorts in the Euro and Swedish kroner only partially offset the impact of the underperforming positions. Strategy The fund’s overall duration was kept largely unchanged at c. 2.0 years. The fund decreased the long duration in the US, and kept largely unchanged the exposure to the UK, Canada and Euro Peripherals (Italy and Spain). The fund closed our long Netherlands versus short Germany positioning. We kept our long France versus short Germany position, and increased our long China positioning. We slightly reduced our overall credit exposure during the month, mainly via positions in Corporates Financials and Emerging Markets. We slightly increased our exposure to Corporates HY and Securitised Credit. We maintained the positions in Asian HY and Securitised Credit. In developed market currencies, we added a short GBP versus USD position during the month and thus moved to an overall long positioning in USD. The fund remains long NOK versus SEK and EUR and short EUR versus AUD and USD. The fund also remains long KRW versus USD. 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.
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