BM-BE HSBC Global Investment Funds - Global 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 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 .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 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 -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 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. 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

© Copyright HSBC Global Asset Management (Bermuda) Limited 2021. All Rights Reserved.

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) Bond(s): a , usually to a company or government, that pays interest Bond Index Futures: a contract stating that the holder agrees to purchase a bond index at a particular price on a specified future date 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 Credit Rating: an assessment of the credit risk of a company, government or other organisation. It seeks to measure how likely it is that the issuer of a bond will be able to continue to make interest payments and repay the money loaned to it Developed Markets: countries with relatively high levels of personal income and established economies Duration: a measure of how long it takes in years for an investor in a bond to recoup the price they paid for the bond from its interest payments. It provides an indication of how much bond prices are likely to change if and when interest rates change 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 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 or Gilt: a loan to a national government in return for regular payments (known as the coupon) and a promise that the original investment (principal) is paid back at a specified date. Gilts are to the UK government 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 High yield bond: a bond paying a higher level of interest but which has a lower credit rating than investment grade 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 Investment Grade: a credit rating that indicates the issuer of a bond has a relatively low risk of being unable to make interest payments and repay the money to it Maturity: the period of time left for a bond or gilt to remain outstanding before the original loan and any final interest is repaid to the lender 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 Option adjusted duration (OAD): a duration value based on the probability of early redemption call by the bond issuer Option adjusted spread duration (OASD): estimates the price sensitivity of a bond to a 100 basis-point movement (either widening or narrowing) in its spread relative to treasuries, taking into account the likelihood of early redemption 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 : the total return anticipated on a bond if the bond is held until the end of its lifetime, excluding strategic currency hedges for Portfolio/Benchmark calculations. Number is shown in percentage Yield to Worst: the lowest potential yield that can be received on a bond without the issuer actually defaulting, excluding strategic currency hedges for Portfolio/Benchmark calculations. Number is shown in percentage