HSBC Canadian Money Market Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Canadian Money Market Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Fund’s benchmark. Over the first six months of the year, we Fund; we, us and our refer to HSBC Global Asset Management targeted the Fund’s duration at its blended 45-day benchmark (Canada) Limited; and the Fund refers to the HSBC Canadian after the Bank of Canada kept rates on hold and stated that any Money Market Fund. future rates changes would be contingent on incoming data. We are the manager, trustee and primary investment advisor of Recent Developments the Fund. The Bank of Canada maintained its policy rate at 1.75% during Introduction the first six months of 2019. The Bank stated that any future rate This Interim Management Report of Fund Performance contains moves would be highly data dependent and that it would be financial highlights but does not contain either the semi-annual closely monitoring developments in household spending, oil financial report or annual financial statements of the investment markets and global trade policy. The Bank also highlighted at its fund. You may obtain a copy of the Fund’s semi-annual financial May 2019 meeting that the slowdown in the latter part of 2018 report or annual financial statements at your request, at no cost, and the early part of 2019 was temporary and that the economy by calling us toll-free at 1-888-390-3333, by visiting our website was expected to pick up in the second half of the year. at www.assetmanagement.hsbc.ca, by visiting the SEDAR Strong employment, low interest rates and reasonable corporate website at www.sedar.com or by writing to us at: profits continue to provide a reasonably positive backdrop for Corporate Secretary growth in both the US and Canada. The Canadian economy HSBC Global Asset Management (Canada) Limited expanded by only 0.4% in the first quarter of 2019, with rd 3 Floor, 885 West Georgia Street positives from consumer spending and business investment and Vancouver, BC V6C 3E8 a negative impact from trade. That said, following two You may also contact us using one of these methods to request a consecutive disappointing quarters, indicators improved in the copy of the Fund’s proxy voting policies and procedures, proxy second quarter of 2019. voting disclosure record or quarterly statement of investment Central banks in the US and Canada have strongly indicated that portfolio. they stand prepared to lower rates if necessary in response to a Results of Operations growth slowdown. We foresee one to two cuts in the US and As of June 30, 2019, the Fund's net assets increased by 23.4% likely stable rates in Canada over the next 12 months. to $213.3 million from $172.8 million at the end of 2018. Net Related Party Transactions contributions and positive investment performance resulted in We, on behalf of the Fund, in our role as fund manager, may, an overall increase in net asset value. from time to time, enter into transactions or arrangements with Investment Performance or involving other members of the HSBC Group or other people The HSBC Canadian Money Market Fund (Investor Series) rose or companies related or connected to us or the Fund. To proceed 0.65% for the six months ending June 30, 2019, while the with the transactions, the Fund relies on the positive benchmark rose 0.82% over the same period. The benchmark is recommendation of the Fund’s Independent Review Committee. A a weighted composite consisting of the FTSE Canada 30 Day condition of this positive recommendation is that the transactions T-Bill Index (50%) and FTSE Canada 60 Day T-Bill Index (50%). are performed in accordance with our policy on Related Party The Fund’s returns are after the deduction of fees and expenses, Transactions. For more general information on persons related to while the benchmark’s returns do not include any costs of the Fund and the types of potential transactions, see the Fund’s investing. See the Past Performance section for the returns of Simplified Prospectus. other series of the Fund, which may vary due to differences in management fees and expenses. The following is a summary of current transactions and arrangements with entities that are related to us or the Fund. The marginal improvement in portfolio and market returns compared to 2018 reflects the slightly higher investable rate Manager, Trustee and Investment Advisor environment following three Bank of Canada policy rate We are the manager, trustee and primary investment advisor of increases in 2018. the Fund. As manager, we manage the overall business and We took a defensive position to the corporate debt sector over operations of the Fund. As trustee, we hold legal title to the the period, focusing on high-quality issues to minimize credit property of the Fund on your behalf. As primary investment and liquidity risk and protect the Fund’s primary objectives of advisor, we provide investment advice and portfolio preserving capital and providing liquidity. management services to the Fund. We receive a fee from the Fund for these services based on assets under management, We also looked to add value by adjusting the weighted-average calculated daily and paid monthly. maturity (or duration) of the portfolio holdings relative to the

1 HSBC Canadian Money Market Fund

Distribution Services HSBC Canadian Money Market Fund – Investor The Fund is distributed through us, HSBC Investment Funds Series – Net Assets per Unit(1) (Canada) Inc. (our wholly owned subsidiary and affiliate) and Period ended June 30, 2019, and years ended December 31 HSBC Securities (Canada) Inc. (an affiliate) directly or through its June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, division, HSBC InvestDirect. We pay distribution and servicing 2019 2018 2017 2016 2015 2014 fees to them based on the amount of assets held in the Net assets per unit, investor’s account, and additionally, in some cases, on the beginning of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 amount of the initial purchase. If you hold units of this Fund Increase and/or other HSBC Mutual Funds in a registered plan with HSBC (decrease) from Investment Funds (Canada) Inc., they may charge you an annual operations: Total revenue 0.09 0.16 0.09 0.07 0.08 0.10 fee to cover the annual administration costs of the plan. We Total expenses (0.03) (0.08) (0.07) (0.06) (0.07) (0.10) permit HSBC Investment Funds (Canada) Inc. to collect these Realized gains (losses) – – – – – – fees by redeeming sufficient units of the Fund with the highest Unrealized gains (losses) – – – – – 0.01 market value in your registered plan. Total increase Purchases of Securities Underwritten by a Related Party (decrease) from operations (2) $0.06 $0.08 $0.02 $0.01 $0.01 $0.01 The Fund may invest in certain securities that are underwritten, in whole or in part, by entities that are a related party to us. To Distributions to unitholders: proceed with these transactions, the Fund relies on the approval From net investment of the Fund’s Independent Review Committee by way of income (excluding Standing Instruction. A condition of this approval is that the dividends) (0.06) (0.08) (0.02) (0.01) (0.01) (0.01) transactions are performed in accordance with our policy on From dividends – – – – – – From capital gains – – – – – – Purchases of Securities Underwritten by a Related Party. During Return of capital – – – – – – the period, the Fund did not invest in any such securities. Total annual distributions (2,3) $(0.06) $(0.08) $(0.02) $(0.01) $(0.01) $(0.01) Financial Highlights Net assets per unit, The following tables show selected key financial information end of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 about the Fund and are intended to help you understand the Fund’s financial performance for the six-month period ended June 30, 2019, and for the last five years ended December 31, Ratios and Supplemental Data as applicable. In the year a fund is established, “period” June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, represents the period from inception to December 31 or June 30 2019 2018 2017 2016 2015 2014 of that fiscal year, as applicable. This information is derived from Net Asset Value (in the Fund’s unaudited semi-annual financial statements and the 000s) (4) $78,581 $73,814 $80,968 $94,686 $105,687 $121,931 Number of units audited annual financial statements. The information in the outstanding (in 000s) (4) 7,858 7,381 8,097 9,469 10,569 12,193 following tables is based on prescribed regulations, and as a Management expense result, is not expected to add due to the increase/decrease in net ratio ("MER") (5) 0.59% 0.79% 0.61% 0.56% 0.73% 0.98% assets from operations being based on average units MER before waivers or absorptions (5) 1.02% 1.01% 1.00% 0.98% 0.98% 0.98% outstanding during the period and all other numbers being Trading expense ratio (6) n/a n/a n/a n/a n/a n/a based on actual units outstanding at the relevant point in time. Net Asset Value per unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

2 HSBC Canadian Money Market Fund

HSBC Canadian Money Market Fund – Advisor HSBC Canadian Money Market Fund – Series – Net Assets per Unit(1) Premium Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 beginning of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.09 0.16 0.09 0.07 0.08 0.10 Total revenue 0.09 0.16 0.09 0.07 0.08 0.10 Total expenses (0.03) (0.08) (0.06) (0.06) (0.07) (0.10) Total expenses (0.02) (0.05) (0.05) (0.04) (0.04) (0.04) Realized gains (losses) –––––– Realized gains (losses) – – – – – – Unrealized gains Unrealized gains (losses) –––––– (losses) – – – – – 0.01 Total increase Total increase (decrease) from (decrease) from operations (2) $0.06 $0.08 $0.03 $0.01 $0.01 $– operations (2) $0.07 $0.11 $0.04 $0.03 $0.04 $0.07 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) (0.06) (0.08) (0.03) (0.01) (0.01) – dividends) (0.07) (0.11) (0.04) (0.03) (0.04) (0.07) From dividends –––––– From dividends – – – – – – Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.06) $(0.08) $(0.03) $(0.01) $(0.01) $– distributions (2,3) $(0.07) $(0.11) $(0.04) $(0.03) $(0.04) $(0.07) Net assets per unit, Net assets per unit, end of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 end of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

3 HSBC Canadian Money Market Fund

HSBC Canadian Money Market Fund – Manager HSBC Canadian Money Market Fund – Series – Net Assets per Unit(1) Institutional Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 beginning of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.09 0.16 0.08 0.07 0.08 0.10 Total revenue 0.09 0.16 0.09 0.07 0.08 0.09 Total expenses (0.02) (0.06) (0.05) (0.05) (0.07) (0.07) Total expenses – (0.01) (0.01) – – (0.01) Realized gains (losses) –––––– Realized gains (losses) – – – – – – Unrealized gains Unrealized gains (losses) –––––0.01 (losses) – – – – – 0.01 Total increase Total increase (decrease) from (decrease) from operations (2) $0.07 $0.10 $0.03 $0.02 $0.01 $0.04 operations (2) $0.09 $0.15 $0.08 $0.07 $0.08 $0.09 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) (0.07) (0.10) (0.03) (0.02) (0.01) (0.04) dividends) (0.09) (0.15) (0.08) (0.07) (0.08) (0.09) From dividends –––––– From dividends – – – – – – Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.07) $(0.10) $(0.03) $(0.02) $(0.01) $(0.04) distributions (2,3) $(0.09) $(0.15) $(0.08) $(0.07) $(0.08) $(0.09) Net assets per unit, Net assets per unit, end of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 end of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $67 $74 $74 $747 $871 $1,161 000s) (4) $70,601 $70,883 $74,387 $62,727 $58,187 $55,543 Number of units Number of units outstanding (in 000s) (4) 7 7 7 75 87 116 outstanding (in 000s) (4) 7,060 7,088 7,439 6,273 5,819 5,554 Management expense Management expense ratio ("MER") (5) 0.45% 0.65% 0.50% 0.51% 0.68% 0.70% ratio ("MER") (5) 0.10% 0.08% 0.08% 0.04% 0.05% 0.06% MER before waivers or MER before waivers or absorptions (5) 1.55% 1.94% 0.85% 0.78% 0.74% 0.70% absorptions (5) 0.10% 0.08% 0.08% 0.04% 0.05% 0.06% Trading expense ratio (6) n/a n/a n/a n/a n/a n/a Trading expense ratio (6) n/a n/a n/a n/a n/a n/a Net Asset Value per Net Asset Value per unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC Canadian Money Market Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the including differences in management fees and expenses. The end of the period. The MER may vary from one mutual fund to Fund’s past performance does not necessarily indicate how it another and from one series of units to another. In the period, we will perform in the future. waived certain fees and expenses otherwise payable by this Fund. We will continue to waive management and operating fees until Year-by-Year Returns such time as market yields rise above the MER of the Fund. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns – Investor Series higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 10% and the performance of the Fund. The rate is calculated based on the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding short-term securities. 5% Management Fees For the six months ended June 30, 2019, the Fund paid us management fees of $375,033. The management fee for each 0.8% 0.7% 0.1% 0.0% 0.1% 0.1% 0.1% 0.1% 0.1% 0.2% 0.3% series is calculated as a percentage of the daily net asset value 0% for that series. The fees are reduced, where required, so that Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Returns – Advisor Series The Fund’s management fees were used by us to pay costs for For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 10% making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales 5% representatives and registered dealers and brokers, including HSBC Investment Funds (Canada) Inc., for units of the Fund bought and held by unitholders. Finally, we used management 0.8% 0.7% fees to pay for additional marketing and distribution services to 0.1% 0.0% 0.1% 0.1% 0.1% 0.1% 0.0% 0.2% 0.3% 0% the Fund. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for the Fund, such distribution costs represented 54% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC Canadian Money Market Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 10% Asset Mix Percentage of NAV

Corporate Bonds 61.12% 5% Government Bonds 38.47% Cash & Equivalents 0.41% Total 100.00% 1.1% 0.7% 0.6% 0.6% 0.6% 0.8% 0.3% 0.2% 0.3% 0.3% 0.4% 0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Top 25 Holdings 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Percentage of NAV

Returns – Manager Series Canada Housing Trust No. 1, 2.00%, 12/15/2019 4.94% For the 12-month periods ended December 31 and the Royal Bank of Canada, 1.70%, 07/02/2019 3.89% six-month period ended June 30, 2019 Bank of Nova Scotia, 1.70%, 07/02/2019 3.28% 10% Fédération des caisses Desjardins du Québec, 1.75%, 07/02/2019 3.28% Municipal Finance Authority of British Columbia, 1.80%, 07/03/2019 3.28% Government of Canada, 1.66%, 08/22/2019 2.80% 5% Province of Ontario, 1.74%, 08/07/2019 2.57% Ontario Teachers' Finance Trust, 1.80%, 08/09/2019 2.10% Province of Ontario, 1.77%, 10/02/2019 2.07% Province of Alberta, 1.74%, 07/09/2019 1.97% 1.0% 0.7% 0.2% 0.1% 0.4% 0.4% 0.3% 0.4% 0.1% 0.2% 0.3% Government of Canada, 1.65%, 08/08/2019 1.87% 0% Province of Ontario, 1.89%, 07/24/2019 1.86% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Manulife Bank of Canada, 1.83%, 12/16/2019 1.77% BNP Paribas SA, 1.88%, 08/06/2019 1.75% CAFO Inc., 1.89%, 07/24/2019 1.73% Returns – Institutional Series Citibank, 1.77%, 07/12/2019 1.73% For the 12-month periods ended December 31 and the MUFG Bank, Ltd., 1.84%, 09/12/2019 1.73% six-month period ended June 30, 2019 Mizuho Bank, Ltd., 1.83%, 07/05/2019 1.69% 10% Bank of Nova Scotia, 2.08%, 08/27/2019 1.64% Canadian Imperial Bank of Commerce, 1.82%, 07/25/2019 1.64% Imperial Oil Limited, 1.77%, 07/11/2019 1.64% Province of Ontario, 1.78%, 11/06/2019 1.63% Royal Bank of Canada, 1.79%, 07/09/2019 1.55% 5% BNP Paribas SA, 1.84%, 09/23/2019 1.54% Ontario Teachers' Finance Trust, 1.89%, 08/19/2019 1.51% Total of Top 25 Holdings 55.46% 1.5% 1.0% 1.0% 1.0% 1.0% 0.6% 0.6% 0.7% 0.7% 0.8% 0.9% 0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

6 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents, as well as the Funds’ 3 Floor, 885 West Georgia Street Financial Statements, at no cost by calling us toll-free at Vancouver, BC V6C 3E8 1-888-390-3333, contacting your authorized dealer or Toronto visiting our website at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, FTSE Global Debt Capital Markets Inc. Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC U.S. Dollar Money Market Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC U.S. Dollar Money Market Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Fund’s benchmark. Over the first six months of the year, we Fund; we, us and our refer to HSBC Global Asset Management targeted the Fund’s duration slightly below its blended 45-day (Canada) Limited; and the Fund refers to the HSBC U.S. Dollar benchmark, as the market is pricing in three to four rate cuts by Money Market Fund. the US Federal Reserve in 2019. We are the manager, trustee and primary investment advisor of Recent Developments the Fund. The US Federal Reserve signalled a pause in its rate-hiking cycle Introduction in the early part of 2019 after raising the federal funds rate four This Interim Management Report of Fund Performance contains times to the range of 2.25%-2.50% in 2018. Softening data, financial highlights but does not contain either the semi-annual combined with the heightened downside risk and uncertainties financial report or annual financial statements of the investment to economic growth, has prompted the central bank to closely fund. You may obtain a copy of the Fund’s semi-annual financial monitor incoming data. report or annual financial statements at your request, at no cost, The central banks in both the US and Canada have strongly by calling us toll-free at 1-888-390-3333, by visiting our website indicated that they are prepared to lower rates if necessary in at www.assetmanagement.hsbc.ca, by visiting the SEDAR response to a growth slowdown. Market expectations for the website at www.sedar.com or by writing to us at: next 12 months have moved sharply in response, pricing in Corporate Secretary three to four cuts in the US and at least one cut in Canada. HSBC Global Asset Management (Canada) Limited Given our more sanguine view of the economy, we foresee one 3rd Floor, 885 West Georgia Street to two cuts in the US and likely stable rates in Canada over this Vancouver, BC V6C 3E8 time frame. You may also contact us using one of these methods to request a Related Party Transactions copy of the Fund’s proxy voting policies and procedures, proxy We, on behalf of the Fund, in our role as fund manager, may, voting disclosure record or quarterly statement of investment from time to time, enter into transactions or arrangements with portfolio. or involving other members of the HSBC Group or other people or companies related or connected to us or the Fund. To proceed Results of Operations with the transactions, the Fund relies on the positive As of June 30, 2019, the Fund's net assets increased by 168.5% recommendation of the Fund’s Independent Review Committee. A to $58.8 million from $21.9 million at the end of 2018. Net condition of this positive recommendation is that the transactions contributions and positive investment performance resulted in are performed in accordance with our policy on Related Party an overall increase in net asset value. Transactions. For more general information on persons related to the Fund and the types of potential transactions, see the Fund’s Investment Performance Simplified Prospectus. The HSBC U.S. Dollar Money Market Fund (Investor Series) rose 0.81% for the six months ending June 30, 2019, while its The following is a summary of current transactions and benchmark rose 1.22% over the same period. The benchmark is arrangements with entities that are related to us or the Fund. a weighted composite consisting of the Citigroup 1 Month US T-Bill Index (75%) and Citigroup 3 Month US T-Bill Index (25%). Manager, Trustee and Investment Advisor We are the manager, trustee and primary investment advisor of The Fund’s returns are after the deduction of fees and expenses, the Fund. As manager, we manage the overall business and while the benchmark’s returns do not include any costs of operations of the Fund. As trustee, we hold legal title to the investing. See the Past Performance section for the returns of property of the Fund on your behalf. As primary investment other series of the Fund, which may vary due to differences in advisor, we provide investment advice and portfolio management fees and expenses. management services to the Fund. We receive a fee from the The marginal improvement in portfolio and market returns Fund for these services based on assets under management, compared to 2018 largely reflects the higher investable rate calculated daily and paid monthly. environment following four policy rate increases from the US Federal Reserve in 2018. Distribution Services The Fund is distributed through us, HSBC Investment Funds We held a defensive position to the corporate debt sector over (Canada) Inc. (our wholly owned subsidiary and affiliate) and the first six months of the year, focusing on high-quality issues HSBC Securities (Canada) Inc. (an affiliate) directly or through its to minimize credit and liquidity risk and protect the Fund’s division, HSBC InvestDirect. We pay distribution and servicing primary objectives of preserving capital and providing liquidity. fees to them based on the amount of assets held in the We also looked to add value by adjusting the weighted-average investor’s account, and additionally, in some cases, on the maturity (or duration) of the portfolio holdings relative to the amount of the initial purchase. If you hold units of this Fund

1 HSBC U.S. Dollar Money Market Fund and/or other HSBC Mutual Funds in a registered plan with HSBC All figures are stated in US dollars. Investment Funds (Canada) Inc., they may charge you an annual fee to cover the annual administration costs of the plan. We HSBC U.S. Dollar Money Market Fund – permit HSBC Investment Funds (Canada) Inc. to collect these Investor Series – Net Assets per Unit(1) fees by redeeming sufficient units of the Fund with the highest Period ended June 30, 2019, and years ended December 31 market value in your registered plan. June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 Purchases of Securities Underwritten by a Related Party The Fund may invest in certain securities that are underwritten, Net assets per unit, beginning of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 in whole or in part, by entities that are a related party to us. To proceed with these transactions, the Fund relies on the approval Increase (decrease) from of the Fund’s Independent Review Committee by way of operations: Standing Instruction. A condition of this approval is that the Total revenue 0.13 0.20 0.11 0.05 0.02 0.01 transactions are performed in accordance with our policy on Total expenses (0.05) (0.09) (0.08) (0.04) (0.01) (0.01) Realized gains (losses) – – – – – – Purchases of Securities Underwritten by a Related Party. During Unrealized gains the period, the Fund did not invest in any such securities. (losses) – – – – – – Total increase Financial Highlights (decrease) from The following tables show selected key financial information operations (2) $0.08 $0.11 $0.03 $0.01 $0.01 $– about the Fund and are intended to help you understand the Distributions to Fund’s financial performance for the six-month period ended unitholders: June 30, 2019, and for the last five years ended December 31, From net investment as applicable. In the year a fund is established, “period” income (excluding dividends) (0.08) (0.11) (0.03) (0.01) (0.01) – represents the period from inception to December 31 or June 30 From dividends – – – – – – of that fiscal year, as applicable. This information is derived from From capital gains – – – – – – the Fund’s unaudited semi-annual financial statements and the Return of capital – – – – – – audited annual financial statements. The information in the Total annual following tables is based on prescribed regulations, and as a distributions (2,3) $(0.08) $(0.11) $(0.03) $(0.01) $(0.01) $– result, is not expected to add due to the increase/decrease in net Net assets per unit, assets from operations being based on average units end of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 outstanding during the period and all other numbers being based on actual units outstanding at the relevant point in time. Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 Net Asset Value (in 000s) (4) $13,082 $12,834 $15,852 $21,759 $39,480 $41,155 Number of units outstanding (in 000s) (4) 1,308 1,283 1,585 2,176 3,948 4,115 Management expense ratio ("MER") (5) 0.94% 0.94% 0.76% 0.41% 0.13% 0.11% MER before waivers or absorptions (5) 1.36% 1.49% 1.39% 1.18% 1.18% 1.23% Trading expense ratio (6) n/a n/a n/a n/a n/a n/a Net Asset Value per unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

2 HSBC U.S. Dollar Money Market Fund

HSBC U.S. Dollar Money Market Fund – Advisor HSBC U.S. Dollar Money Market Fund – Series – Net Assets per Unit(1) Premium Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014* 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $– $– $– $– $– $10.00 beginning of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 Increase Increase (decrease) from (decrease) from operations: operations: Totalrevenue0.03––––0.01 Total revenue 0.13 0.20 0.11 0.06 0.02 0.01 Totalexpenses(0.01)––––(0.01) Total expenses (0.03) (0.08) (0.07) (0.04) (0.01) (0.01) Realized gains (losses) – ––––– Realized gains (losses) – – – – – – Unrealized gains Unrealized gains (losses) –––––– (losses) – – – – – – Total increase Total increase (decrease) from (decrease) from operations (2) $0.02 $– $– $– $– $– operations (2) $0.10 $0.12 $0.04 $0.02 $0.01 $– Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)(0.02)––––– dividends) (0.10) (0.12) (0.04) (0.02) (0.01) – From dividends – ––––– From dividends – – – – – – Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.02) $– $– $– $– $– distributions (2,3) $(0.10) $(0.12) $(0.04) $(0.02) $(0.01) $– Net assets per unit, Net assets per unit, end of period (2) $10.00 $– $– $– $– $– end of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

3 HSBC U.S. Dollar Money Market Fund

HSBC U.S. Dollar Money Market Fund – HSBC U.S. Dollar Money Market Fund – Manager Series – Net Assets per Unit(1) Institutional Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015** 2014 2019*** 2018*** 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $– $– $– $– $10.00 $10.00 beginning of period (2) $– $10.00 $10.00 $10.00 $10.00 $10.00 Increase Increase (decrease) from (decrease) from operations: operations: Totalrevenue–––––0.01 Total revenue – 0.10 0.11 0.05 0.01 0.01 Totalexpenses–––––(0.01) Total expenses – (0.02) (0.03) (0.02) – – Realized gains (losses) –––––– Realized gains (losses) – – – – – – Unrealized gains Unrealized gains (losses) –––––– (losses) – – – – – – Total increase Total increase (decrease) from (decrease) from operations (2) $– $– $– $– $– $– operations (2) $– $0.08 $0.08 $0.03 $0.01 $0.01 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – (0.08) (0.08) (0.03) (0.01) (0.01) From dividends –––––– From dividends – – – – – – Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $– $– $– $– $– distributions (2,3) $– $(0.08) $(0.08) $(0.03) $(0.01) $(0.01) Net assets per unit, Net assets per unit, end of period (2) $– $– $– $– $– $10.00 end of period (2) $– $– $10.00 $10.00 $10.00 $10.00

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015** 2014 2019*** 2018*** 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $– $– $– $– $– $32 000s) (4) $– $– $37 $36 $201 $6,757 Number of units Number of units outstanding (in 000s) (4) –––––3outstanding (in 000s) (4) – – 4 4 20 676 Management expense Management expense ratio ("MER") (5) ––––0.09%0.10%ratio ("MER") (5) – 0.35% 0.31% 0.22% (0.03)% (0.01)% MER before waivers or MER before waivers or absorptions(5) ––––2.95%0.91%absorptions (5) – 1.36% 0.87% 0.29% 0.18% 0.17% Trading expense ratio (6) n/a n/a n/a n/a n/a n/a Trading expense ratio (6) n/a n/a n/a n/a n/a n/a Net Asset Value per Net Asset Value per unit (4) $– $– $– $– $– $10.00 unit (4) $– $– $10.00 $10.00 $10.00 $10.00 ** The Manager Series was fully redeemed since 2015; however, it *** The Institutional Series was fully redeemed during 2018 & 2019; remains in offer as at period-end. however, it remains in offer as at period-end. (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC U.S. Dollar Money Market Fund

Management Fees 5% For the six months ended June 30, 2019, the Fund paid us management fees of $99,512. The management fee for each series is calculated as a percentage of the daily net asset value 1.1% 0.8% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.3% for that series. The fees are reduced, where required, so that 0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 these fees do not duplicate fees payable by mutual funds in 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 which the Fund invests for the same service.

The Fund’s management fees were used by us to pay costs for Returns – Advisor Series For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 10% making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including 5% HSBC Investment Funds (Canada) Inc., for units of the Fund bought and held by unitholders. Finally, we used management fees to pay for additional marketing and distribution services to 0.1% 0.0% 0.0% 0.0% 0.0% the Fund. 0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014* 2015* 2016* 2017* 2018* 2019* For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual * The Advisor Series was fully redeemed during 2014. There were no Funds were used to fund distribution costs. In comparison, for unitholders for the full calendar year since 2015; however, the series remains in offer as at period-end. the Fund, such distribution costs represented 30% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC U.S. Dollar Money Market Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 10% Asset Mix Percentage of NAV

Corporate Bonds 96.22% 5% Government Bonds 3.56% Cash & Equivalents 0.22% Total 100.00% 1.2% 0.9% 0.4% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Top 25 Holdings 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Percentage of NAV

Returns – Manager Series Royal Bank of Canada, 2.30%, 07/02/2019 5.61% For the 12-month periods ended December 31 and the Bank of Nova Scotia, 2.40%, 07/02/2019 5.10% six-month period ended June 30, 2019 PSP Capital Inc., 2.55%, 07/22/2019 4.59% 10% Ontario Teachers' Finance Trust, 2.26%, 10/07/2019 4.13% Farm Credit Canada, 2.33%, 07/16/2019 3.56% OMERS Finance Trust, 2.28%, 09/16/2019 3.38% NRW Bank, 2.30%, 09/19/2019 3.05% Hydro-Québec, 2.50%, 08/01/2019 2.96% 5% Farm Credit Canada, 2.34%, 07/29/2019 2.89% CDP Financial Inc., 2.28%, 09/06/2019 2.88% Farm Credit Canada, 2.38%, 07/02/2019 2.21% Caisse des Depots et Consignations, 2.48%, 09/03/2019 2.20% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% Farm Credit Canada, 2.34%, 07/05/2019 2.04% 0% Federal Home Loan Bank, 2.22%, 07/12/2019 1.79% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015* 2016* 2017* 2018* 2019* CAFO Inc., 2.40%, 08/01/2019 1.70% PACCAR Financial Ltd., 2.45%, 07/25/2019 1.70% * The Manager Series was fully redeemed during 2015. There were no NRW Bank, 2.41%, 08/06/2019 1.69% unitholders for the full calendar year since 2016; however, the series Ontario Teachers' Finance Trust, 2.53%, 10/30/2019 1.68% remains in offer as at period-end. NRW Bank, 2.54%, 07/26/2019 1.61% Federal Home Loan Bank, 2.38%, 07/05/2019 1.53% Returns – Institutional Series Fédération des caisses Desjardins du Québec, 2.35%, For the 12-month periods ended December 31 and the 08/20/2019 1.52% six-month period ended June 30, 2019 Macquarie Bank, 2.39%, 09/09/2019 1.52% 10% Caisse des Depots et Consignations, 2.41%, 07/26/2019 1.36% Norinchukin Bank, 2.52%, 08/09/2019 1.36% Banco Santander SA, 2.38%, 09/06/2019 1.35% Total of Top 25 Holdings 63.41%

0.8% 0.4% 0.2% 0.2% 0.2% 0.1% 0.1% 0.2% 0.3% 0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* 2019*

* The Institutional Series was fully redeemed since 2018; however, the series remains in offer as at period-end.

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Mortgage Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Mortgage Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Overall, mortgages outperformed short-term government bonds Fund; we, us and our refer to HSBC Global Asset Management in the period due to their higher running yield and the tightening (Canada) Limited; and the Fund refers to the HSBC in mortgage yield spreads. We believe mortgage rates still Mortgage Fund. represent attractive value at current levels. With the yield spread now closer to its long-term historical average, the incremental We are the manager, trustee and primary investment advisor of yield advantage is considerable given the historically low the Fund. interest rate environment.

Introduction The Fund’s relatively high running yield continues to be a This Interim Management Report of Fund Performance contains positive for returns and will help offset some of the negative financial highlights but does not contain either the semi-annual impacts if mortgage rates move higher. Portfolio duration is financial report or annual financial statements of the investment conservatively positioned below two years. fund. You may obtain a copy of the Fund’s semi-annual financial report or annual financial statements at your request, at no cost, Recent Developments by calling us toll-free at 1-888-390-3333, by visiting our website With longer-term yields expected to rise modestly over the next at www.assetmanagement.hsbc.ca, by visiting the SEDAR year, we aim to maintain the Fund’s interest rate exposure at or website at www.sedar.com or by writing to us at: slightly below the benchmark in the near term. Given that yields at the short end of the yield curve are now discounting one 25 Corporate Secretary basis-point rate cut, we expect that upward pressure on HSBC Global Asset Management (Canada) Limited longer-term yields will lead to a steepening of the yield curve. 3rd Floor, 885 West Georgia Street Vancouver, BC V6C 3E8 We feel that the corporate sector remains fundamentally sound, with stable earnings growth and defensively positioned balance You may also contact us using one of these methods to request a sheets. Sector valuations in credit markets have mostly copy of the Fund’s proxy voting policies and procedures, proxy recovered from the widening we saw in the last quarter of 2018. voting disclosure record or quarterly statement of investment That said, we continue to prefer provincial and corporate bonds portfolio. over Government of Canada bonds and we expect to remain Results of Operations slightly overweight in these sectors. As of June 30, 2019, the Fund's net assets increased by 0.7% to Related Party Transactions $2,082.3 million from $2,068.7 million at the end of 2018. We, on behalf of the Fund, in our role as fund manager, may, Positive investment performance, partially offset by net from time to time, enter into transactions or arrangements with withdrawals, resulted in an overall increase in net asset value. or involving other members of the HSBC Group or other people Investment Performance or companies related or connected to us or the Fund. To proceed The HSBC Mortgage Fund (Investor Series) rose 1.93% for the with the transactions, the Fund relies on the positive six months ending June 30, 2019, while the benchmark rose recommendation of the Fund’s Independent Review Committee. A 1.79% over the same period. The benchmark is a weighted condition of this positive recommendation is that the transactions composite consisting of the FTSE Canada 1-Year Mortgage are performed in accordance with our policy on Related Party Index (45%), FTSE Canada 3-Year Mortgage Index (25%), FTSE Transactions. For more general information on persons related to Canada Short Term Bond Index (10%), FTSE Canada 5-Year the Fund and the types of potential transactions, see the Fund’s Mortgage Index (10%) and FTSE Canada 91 Day T-Bill Index Simplified Prospectus. (10%), with a discount factor applied to mortgage components. The following is a summary of current transactions and The Fund’s returns are after the deduction of fees and expenses, arrangements with entities that are related to us or the Fund. while the benchmark’s returns do not include any costs of investing. See the Past Performance section for the returns of Manager, Trustee and Investment Advisor other series of the Fund, which may vary due to differences in We are the manager, trustee and primary investment advisor of management fees and expenses. the Fund. As manager, we manage the overall business and operations of the Fund. As trustee, we hold legal title to the Broad posted mortgage rates were stable in the first half of the property of the Fund on your behalf. As primary investment year, with the yield on the FTSE Residential Mortgage Index advisor, we provide investment advice and portfolio remaining at 4.29% from the end of 2018. The yield differential management services to the Fund. We receive a fee from the between five-year fixed mortgage rates and five-year Fund for these services based on assets under management, Government of Canada bonds widened to 395 basis points in calculated daily and paid monthly. Q2, up from 346 basis points at the end of 2018.

1 HSBC Mortgage Fund

Mortgage Sale and Administration Services represents the period from inception to December 31 or June 30 The HSBC Mortgage Fund purchases its mortgages from HSBC of that fiscal year, as applicable. This information is derived from Bank Canada (“the Bank”) (of which we are a wholly owned the Fund’s unaudited semi-annual financial statements and the subsidiary) at an amount that will produce a yield to the HSBC audited annual financial statements. The information in the Mortgage Fund of not more than 1/4 of 1% less than the interest following tables is based on prescribed regulations, and as a rate at which the Bank is making a similar commitment at the result, is not expected to add due to the increase/decrease in net time of purchase. The lesser yield of 1/4 of 1% is in assets from operations being based on average units consideration of the agreement by the Bank to repurchase the outstanding during the period and all other numbers being mortgages under certain circumstances. This fee amounted to based on actual units outstanding at the relevant point in time. $1,848,003 on June 30, 2019 (June 30, 2018 - $1,909,676). To proceed with the transactions, the Fund relied on the HSBC Mortgage Fund – Investor Series – Net approval of the Fund’s Independent Review Committee by way Assets per Unit(1) of Standing Instruction. A condition of this approval was that the Period ended June 30, 2019, and years ended December 31 transactions were performed in accordance with National Policy June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, No. 29 and in accordance with all requirements of various relief 2019 2018 2017 2016 2015 2014 orders that have been granted to us by the regulators in relation Net assets per unit, to these kinds of transactions. beginning of period (2) $11.37 $11.46 $11.62 $11.57 $11.59 $11.60 Increase In addition, pursuant to an agreement between us, the Bank and (decrease) from the Fund, the Fund will pay the Bank a fee for the administration operations: of the mortgages purchased from the Bank, which will be Total revenue 0.15 0.30 0.29 0.32 0.33 0.32 accrued and paid daily as an expense to the Fund. During the Total expenses (0.09) (0.18) (0.18) (0.18) (0.18) (0.17) Realized gains (losses) (0.01) (0.06) (0.02) (0.01) – – six-month period ended June 30, 2019, the Fund paid $757,906 Unrealized gains in administration fees to the Bank (June 30, 2018 - $780,464). (losses) 0.16 (0.03) (0.14) 0.06 (0.02) (0.01) Total increase Distribution Services (decrease) from The Fund is distributed through us, HSBC Investment Funds operations (2) $0.21 $0.03 $(0.05) $0.19 $0.13 $0.14 (Canada) Inc. (our wholly owned subsidiary and affiliate) and Distributions to HSBC Securities (Canada) Inc. (an affiliate) directly or through its unitholders: division, HSBC InvestDirect. We pay distribution and servicing From net investment fees to them based on the amount of assets held in the income (excluding investor’s account, and additionally, in some cases, on the dividends) (0.08) (0.12) (0.11) (0.14) (0.15) (0.15) From dividends – – – – – – amount of the initial purchase. If you hold units of this Fund From capital gains – – – – – – and/or other HSBC Mutual Funds in a registered plan with HSBC Return of capital – – – – – – Investment Funds (Canada) Inc., they may charge you an annual Total annual fee to cover the annual administration costs of the plan. We distributions (2,3) $(0.08) $(0.12) $(0.11) $(0.14) $(0.15) $(0.15) permit HSBC Investment Funds (Canada) Inc. to collect these Net assets per unit, fees by redeeming sufficient units of the Fund with the highest end of period (2) $11.52 $11.37 $11.46 $11.62 $11.57 $11.59 market value in your registered plan.

Purchases of Securities Underwritten by a Related Party Ratios and Supplemental Data The Fund may invest in certain securities that are underwritten, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, in whole or in part, by entities that are a related party to us. To 2019 2018 2017 2016 2015 2014 proceed with these transactions, the Fund relies on the approval Net Asset Value (in of the Fund’s Independent Review Committee by way of 000s) (4) $116,503 $126,917 $172,501 $211,105 $219,732 $274,087 Standing Instruction. A condition of this approval is that the Number of units transactions are performed in accordance with our policy on outstanding (in 000s) (4) 10,117 11,160 15,056 18,170 18,997 23,647 Management expense Purchases of Securities Underwritten by a Related Party. During ratio ("MER") (5) 1.59% 1.56% 1.56% 1.57% 1.53% 1.50% the period, the Fund did not invest in any such securities. MER before waivers or absorptions (5) 1.59% 1.56% 1.56% 1.57% 1.53% 1.50% Financial Highlights Trading expense The following tables show selected key financial information ratio (6) n/a n/a n/a n/a n/a n/a Portfolio turnover about the Fund and are intended to help you understand the rate (7) 6.41% 35.30% 32.90% 36.57% 40.94% 27.10% Fund’s financial performance for the six-month period ended Net Asset Value per June 30, 2019, and for the last five years ended December 31, unit (4) $11.52 $11.37 $11.46 $11.62 $11.57 $11.59 as applicable. In the year a fund is established, “period”

2 HSBC Mortgage Fund

HSBC Mortgage Fund – Advisor Series – Net HSBC Mortgage Fund – Premium Series – Net Assets per Unit(1) Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $9.99 $10.07 $10.22 $10.18 $10.20 $10.20 beginning of period (2) $10.05 $10.13 $10.28 $10.24 $10.26 $10.28 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.13 0.27 0.26 0.28 0.29 0.28 Total revenue 0.14 0.27 0.26 0.28 0.29 0.28 Total expenses (0.08) (0.16) (0.16) (0.16) (0.16) (0.15) Total expenses (0.05) (0.10) (0.10) (0.10) (0.10) (0.10) Realized gains (losses) (0.01) (0.05) (0.02) (0.01) – – Realized gains (losses) (0.01) (0.05) (0.02) (0.01) – – Unrealized gains Unrealized gains (losses) 0.14 (0.02) (0.12) 0.05 (0.02) (0.01) (losses) 0.14 (0.03) (0.13) 0.07 (0.02) (0.01) Total increase Total increase (decrease) from (decrease) from operations (2) $0.18 $0.04 $(0.04) $0.16 $0.11 $0.12 operations (2) $0.22 $0.09 $0.01 $0.24 $0.17 $0.17 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) (0.07) (0.11) (0.10) (0.12) (0.14) (0.13) dividends) (0.10) (0.17) (0.16) (0.18) (0.20) (0.19) From dividends –––––– From dividends – – – – – – Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.07) $(0.11) $(0.10) $(0.12) $(0.14) $(0.13) distributions (2,3) $(0.10) $(0.17) $(0.16) $(0.18) $(0.20) $(0.19) Net assets per unit, Net assets per unit, end of period (2) $10.11 $9.99 $10.07 $10.22 $10.18 $10.20 end of period (2) $10.17 $10.05 $10.13 $10.28 $10.24 $10.26

3 HSBC Mortgage Fund

HSBC Mortgage Fund – Manager Series – Net HSBC Mortgage Fund – Institutional Series – Assets per Unit(1) Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $10.13 $10.21 $10.35 $10.30 $10.32 $10.33 beginning of period (2) $10.49 $10.57 $10.72 $10.67 $10.68 $10.69 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.14 0.27 0.26 0.28 0.29 0.29 Total revenue 0.14 0.28 0.27 0.29 0.30 0.30 Total expenses (0.05) (0.11) (0.11) (0.11) (0.10) (0.10) Total expenses (0.01) (0.01) (0.01) (0.01) (0.01) – Realized gains (losses) (0.01) (0.05) (0.02) (0.01) – – Realized gains (losses) (0.01) (0.05) (0.02) (0.01) – – Unrealized gains Unrealized gains (losses) 0.15 (0.02) (0.14) 0.05 (0.02) (0.01) (losses) 0.15 (0.02) (0.13) 0.06 (0.02) (0.01) Total increase Total increase (decrease) from (decrease) from operations (2) $0.23 $0.09 $(0.01) $0.21 $0.17 $0.18 operations (2) $0.27 $0.20 $0.11 $0.33 $0.27 $0.29 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) (0.10) (0.16) (0.15) (0.17) (0.19) (0.19) dividends) (0.15) (0.27) (0.26) (0.28) (0.30) (0.29) From dividends –––––– From dividends – – – – – – Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.10) $(0.16) $(0.15) $(0.17) $(0.19) $(0.19) distributions (2,3) $(0.15) $(0.27) $(0.26) $(0.28) $(0.30) $(0.29) Net assets per unit, Net assets per unit, end of period (2) $10.25 $10.13 $10.21 $10.35 $10.30 $10.32 end of period (2) $10.63 $10.49 $10.57 $10.72 $10.67 $10.68

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset 000s) (4) $1,429 $1,094 $2,633 $2,197 $3,492 $3,771 Value (in Number of units 000s) (4) $1,738,629 $1,689,517 $1,765,690 $1,682,482 $1,721,170 $1,653,831 outstanding (in 000s) (4) 139 108 258 212 339 366 Number of Management expense units ratio ("MER") (5) 0.95% 1.09% 1.08% 1.06% 1.01% 0.97% outstanding MER before waivers or (in 000s) (4) 163,631 161,000 167,067 157,014 161,375 154,790 absorptions (5) 0.95% 1.09% 1.08% 1.06% 1.01% 0.97% Management Trading expense ratio (6) n/a n/a n/a n/a n/a n/a expense ratio Portfolio turnover rate (7) 6.41% 35.30% 32.90% 36.57% 40.94% 27.10% ("MER") (5) 0.13% 0.10% 0.10% 0.10% 0.07% 0.04% Net Asset Value per MER before unit (4) $10.25 $10.13 $10.21 $10.35 $10.30 $10.32 waivers or absorptions (5) 0.13% 0.10% 0.10% 0.10% 0.07% 0.04% Trading expense ratio (6) n/a n/a n/a n/a n/a n/a Portfolio turnover rate (7) 6.41% 35.30% 32.90% 36.57% 40.94% 27.10% Net Asset Value per unit (4) $10.63 $10.49 $10.57 $10.72 $10.67 $10.68 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All

4 HSBC Mortgage Fund

balances are stated in accordance with IFRS. Under IFRS, the net the Fund, such distribution costs represented 49% of the assets per unit presented in the financial statements is the same as management fees collected. This may vary by series, depending the net asset value calculated for fund pricing purposes. on the assets invested in each of the series. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant Past Performance time. The increase/decrease in net assets from operations per unit is The performance information shown assumes that all based on the weighted average number of units outstanding for the distributions made by the Fund in the periods shown were relevant series over the financial period. reinvested in additional securities of the Fund. The performance (3) Distributions are automatically reinvested in additional units of the Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is including differences in management fees and expenses. The established, the MER is annualized from the date of inception to the Fund’s past performance does not necessarily indicate how it end of the period. The MER may vary from one mutual fund to another and from one series of units to another. We may have will perform in the future. waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the Year-by-Year Returns discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The higher the Fund’s portfolio turnover rate in a period, the greater the Returns – Investor Series trading costs payable by the Fund in the period, and the greater the For the 12-month periods ended December 31 and the chance of an investor receiving taxable capital gains in the period. six-month period ended June 30, 2019 There is not necessarily a relationship between a high turnover rate 10% and the performance of the Fund. The rate is calculated based on the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding 4.8% short-term securities. 5% 2.1% 1.7% 1.9% 1.6% 1.3% 1.3% 1.2% 1.1% Management Fees 0.3% For the six months ended June 30, 2019, the Fund paid us 0% management fees of $1,808,404. The management fee for each -0.4% series is calculated as a percentage of the daily net asset value for that series. The fees are reduced, where required, so that -5% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 these fees do not duplicate fees payable by mutual funds in 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 which the Fund invests for the same service. The Fund’s management fees were used by us to pay costs for Returns – Advisor Series For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of 10% the investment portfolio and providing other services. The management fees also funded commission payments and other 4.8% compensation (collectively “distribution costs”) to sales 5% representatives and registered dealers and brokers, including 2.1% 1.9% 1.6% 1.3% 1.3% 1.2% 1.1% 1.6% HSBC Investment Funds (Canada) Inc., for units of the Fund 0.3% 0% bought and held by unitholders. Finally, we used management -0.4% fees to pay for additional marketing and distribution services to the Fund. -5% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 For the six months ended June 30, 2019, approximately 45% of 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for

5 HSBC Mortgage Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 10% Asset Mix Percentage of NAV

5.3% Residential Mortgages 75.04% 5% Corporate Bonds 13.65% 2.7% Government Bonds 1.97% 2.2% 2.2% 2.2% 1.9% 1.9% 1.7% 1.7% Cash & Equivalents 9.34% 0.9% Total 100.00% 0.1% 0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Top 25 Holdings Percentage Returns – Manager Series of NAV For the 12-month periods ended December 31 and the Residential Mortgages 75.04% six-month period ended June 30, 2019 Government of Canada, 6.96%, 12/01/2021 1.32% 10% Wells Fargo Canada Corp., 2.94%, 07/25/2019 0.48% Bruce Power LP, 2.84%, 06/23/2021 0.38% CAFO Inc., 1.93%, 07/03/2019 0.38% Enbridge Inc., 3.94%, 06/30/2023 0.36% 5.3% TMX Group Ltd., 4.46%, 10/03/2023 0.36% 5% Alimentation Couche-Tard Inc., 3.90%, 11/01/2022 0.35% Daimler Canada Finance Inc., 1.90%, 08/22/2019 0.33% 2.7% 2.2% 2.2% 2.2% Empire Life Insurance Co., 3.38%, 12/16/2026 0.33% 1.9% 1.8% 1.7% 1.7% National Bank Financial, 1.65%, 07/02/2019 0.33% 0.8% 0.1% Anheuser-Busch InBev Finance Inc., 2.60%, 05/15/2024 0.31% 0% Bank of America Corp., 3.23%, 06/22/2022 0.30% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Canadian Natural Resources Ltd., 3.31%, 02/11/2022 0.30% Canadian Western Bank, 2.00%, 11/06/2019 0.29% Hydro One Inc., 2.01%, 09/12/2019 0.29% Returns – Institutional Series Manulife Bank of Canada, 1.92%, 10/28/2019 0.29% For the 12-month periods ended December 31 and the Brookfield Property Finance ULC, 4.35%, 07/03/2023 0.26% six-month period ended June 30, 2019 Aviva PLC, 4.50%, 05/10/2021 0.25% 10% Brookfield Asset Management Inc., 5.30%, 03/01/2021 0.25% Citigroup Inc., 3.39%, 11/18/2021 0.25% CU Inc., 6.80%, 08/13/2019 0.25% 6.3% Morgan Stanley, 3.00%, 02/07/2024 0.25% Caterpillar Financial Services Ltd., 2.20%, 12/09/2019 0.24% 5% Heathrow Funding Ltd., 3.00%, 06/17/2023 0.24% 3.6% 3.2% 3.2% Total of Top 25 Holdings 83.43% 2.9% 2.8% 2.7% 2.6% 2.7% 1.8% 1.1%

0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Canadian Bond Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Canadian Bond Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the The shape of the yield curve continued to flatten over the first Fund; we, us and our refer to HSBC Global Asset Management half of the year, with a 21-basis-point difference between (Canada) Limited; and the Fund refers to the HSBC Canadian two-year and 30-year Government of Canada yields at the end Bond Fund. of the quarter compared to a 32-basis-point difference at the end of 2018. This is the flattest the yield curve has been since We are the manager, trustee and primary investment advisor of late 2007. the Fund. The Fund’s security selection within corporate bonds and Introduction overweight positions in provincials and corporates were This Interim Management Report of Fund Performance contains positives for performance in the first half of the year. While the financial highlights but does not contain either the semi-annual Fund’s higher running yield and small allocation to emerging financial report or annual financial statements of the investment market debt had a positive impact on relative returns, this was fund. You may obtain a copy of the Fund’s semi-annual financial offset by the Fund’s lower duration, or interest rate risk, which report or annual financial statements at your request, at no cost, was a drag on performance. by calling us toll-free at 1-888-390-3333, by visiting our website Recent Developments at www.assetmanagement.hsbc.ca, by visiting the SEDAR Like the global economy, the Canadian economy seems poised website at www.sedar.com or by writing to us at: for a rebound as the year progresses, with consensus growth Corporate Secretary estimates of 1.4% for 2019 and 1.8% for 2020. Canadian HSBC Global Asset Management (Canada) Limited inflation remains modest, with consensus expectations of 1.9% 3rd Floor, 885 West Georgia Street in 2019 and 2.0% in 2020. Vancouver, BC V6C 3E8 Longer-term yields are expected to rise modestly over the next You may also contact us using one of these methods to request a year, and we therefore aim to maintain the Fund’s interest rate copy of the Fund’s proxy voting policies and procedures, proxy exposure at or slightly below the benchmark in the near term. voting disclosure record or quarterly statement of investment With yields at the short end of the yield curve now discounting one 25-basis-point rate cut, we expect that upward pressure on portfolio. longer-term yields will lead to a steepening of the yield curve. Results of Operations We feel that the corporate sector remains fundamentally sound, As of June 30, 2019, the Fund's net assets increased by 4.2% to with stable earnings growth and defensively positioned balance $728.8 million from $699.5 million at the end of 2018. Positive sheets. Sector valuations in credit markets have mostly investment performance, partially offset by net withdrawals, recovered from the widening we saw in the last quarter of 2018. resulted in an overall increase in net asset value. That said, we continue to prefer provincial and corporate bonds over Government of Canada bonds and will look to remain Investment Performance slightly overweight in these sectors. The HSBC Canadian Bond Fund (Investor Series) rose 6.27% for the six months ending June 30, 2019, while the benchmark Related Party Transactions FTSE Canada Universe Bond Index rose 6.52% over the same We, on behalf of the Fund, in our role as fund manager, may, period. The Fund’s returns are after the deduction of fees and from time to time, enter into transactions or arrangements with expenses, while the benchmark’s returns do not include any or involving other members of the HSBC Group or other people costs of investing. See the Past Performance section for the or companies related or connected to us or the Fund. To proceed returns of other series of the Fund, which may vary due to with the transactions, the Fund relies on the positive differences in management fees and expenses. recommendation of the Fund’s Independent Review Committee. A condition of this positive recommendation is that the transactions Increasing evidence of a slowing global expansion continues to are performed in accordance with our policy on Related Party provide a positive backdrop for fixed income assets, which have Transactions. For more general information on persons related to seen positive returns across different sectors and terms. The the Fund and the types of potential transactions, see the Fund’s 10-year Government of Canada bond yield, commonly looked at Simplified Prospectus. as a proxy for the broad market, finished Q2 at 1.46% compared The following is a summary of current transactions and to 1.96% at the end of 2018. Over the past six months, arrangements with entities that are related to us or the Fund. provincial bonds (8.95%) have been the best-performing sector, followed by corporate bonds (7.24%) and Government of Manager, Trustee and Investment Advisor Canada bonds (5.82%). We are the manager, trustee and primary investment advisor of the Fund. As manager, we manage the overall business and operations of the Fund. As trustee, we hold legal title to the

1 HSBC Canadian Bond Fund property of the Fund on your behalf. As primary investment HSBC Canadian Bond Fund – Investor Series – advisor, we provide investment advice and portfolio Net Assets per Unit(1) management services to the Fund. We receive a fee from the Period ended June 30, 2019, and years ended December 31 Fund for these services based on assets under management, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, calculated daily and paid monthly. 2019 2018 2017 2016 2015 2014 Net assets per unit, Distribution Services beginning of period (2) $13.19 $13.51 $13.46 $13.72 $13.79 $13.19 The Fund is distributed through us, HSBC Investment Funds Increase (Canada) Inc. (our wholly owned subsidiary and affiliate) and (decrease) from HSBC Securities (Canada) Inc. (an affiliate) directly or through its operations: division, HSBC InvestDirect. We pay distribution and servicing Total revenue 0.21 0.44 0.46 0.49 0.51 0.64 Total expenses (0.07) (0.15) (0.15) (0.16) (0.16) (0.22) fees to them based on the amount of assets held in the Realized gains (losses) 0.03 0.02 – 0.13 0.03 (0.01) investor’s account, and additionally, in some cases, on the Unrealized gains amount of the initial purchase. If you hold units of this Fund (losses) 0.66 (0.34) 0.06 (0.27) (0.08) 0.60 and/or other HSBC Mutual Funds in a registered plan with HSBC Total increase Investment Funds (Canada) Inc., they may charge you an annual (decrease) from operations (2) $0.83 $(0.03) $0.37 $0.19 $0.30 $1.01 fee to cover the annual administration costs of the plan. We permit HSBC Investment Funds (Canada) Inc. to collect these Distributions to unitholders: fees by redeeming sufficient units of the Fund with the highest From net investment market value in your registered plan. income (excluding dividends) (0.15) (0.29) (0.31) (0.34) (0.36) (0.37) Purchases of Securities Underwritten by a Related Party From dividends – – – – – – The Fund may invest in certain securities that are underwritten, From capital gains – (0.03) – (0.11) – – Return of capital – – – – – – in whole or in part, by entities that are a related party to us. To Total annual proceed with these transactions, the Fund relies on the approval distributions (2,3) $(0.15) $(0.32) $(0.31) $(0.45) $(0.36) $(0.37) of the Fund’s Independent Review Committee by way of Net assets per unit, Standing Instruction. A condition of this approval is that the end of period (2) $13.86 $13.19 $13.51 $13.46 $13.72 $13.79 transactions are performed in accordance with our policy on Purchases of Securities Underwritten by a Related Party. During the period, the Fund did not invest in any such securities. Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Financial Highlights 2019 2018 2017 2016 2015 2014 The following tables show selected key financial information Net Asset Value (in about the Fund and are intended to help you understand the 000s) (4) $176,436 $175,288 $219,455 $261,792 $277,246 $314,236 Fund’s financial performance for the six-month period ended Number of units outstanding (in 000s) (4) 12,730 13,292 16,241 19,448 20,209 22,780 June 30, 2019, and for the last five years ended December 31, Management expense as applicable. In the year a fund is established, “period” ratio ("MER") (5) 1.16% 1.14% 1.14% 1.13% 1.13% 1.14% represents the period from inception to December 31 or June 30 MER before waivers or of that fiscal year, as applicable. This information is derived from absorptions (5) 1.16% 1.14% 1.14% 1.13% 1.13% 1.14% Trading expense the Fund’s unaudited semi-annual financial statements and the ratio (6) n/a n/a n/a n/a n/a n/a audited annual financial statements. The information in the Portfolio turnover following tables is based on prescribed regulations, and as a rate (7) 15.64% 43.39% 35.58% 34.38% 23.54% 18.01% Net Asset Value per result, is not expected to add due to the increase/decrease in net unit (4) $13.86 $13.19 $13.51 $13.46 $13.72 $13.79 assets from operations being based on average units outstanding during the period and all other numbers being based on actual units outstanding at the relevant point in time.

2 HSBC Canadian Bond Fund

HSBC Canadian Bond Fund – Advisor Series – HSBC Canadian Bond Fund – Premium Series – Net Assets per Unit(1) Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $10.46 $10.77 $10.78 $11.04 $11.16 $10.67 beginning of period (2) $10.74 $11.02 $10.99 $11.19 $11.25 $10.75 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.17 0.35 0.37 0.39 0.41 0.62 Total revenue 0.17 0.36 0.38 0.40 0.42 0.69 Total expenses (0.09) (0.18) (0.16) (0.18) (0.18) (0.20) Total expenses (0.05) (0.09) (0.09) (0.10) (0.09) (0.18) Realized gains (losses) 0.02 0.02 – 0.10 0.02 – Realized gains (losses) 0.02 0.02 – 0.10 0.02 (0.01) Unrealized gains Unrealized gains (losses) 0.52 (0.29) 0.04 (0.19) (0.18) 0.35 (losses) 0.54 (0.29) 0.06 (0.27) (0.08) 0.35 Total increase Total increase (decrease) from (decrease) from operations (2) $0.62 $(0.10) $0.25 $0.12 $0.07 $0.77 operations (2) $0.68 $– $0.35 $0.13 $0.27 $0.85 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) (0.12) (0.23) (0.25) (0.28) (0.29) (0.30) dividends) (0.14) (0.27) (0.29) (0.30) (0.32) (0.33) From dividends –––––– From dividends – – – – – – From capital gains – (0.03) – (0.08) – – From capital gains – (0.03) – (0.09) – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.12) $(0.26) $(0.25) $(0.36) $(0.29) $(0.30) distributions (2,3) $(0.14) $(0.30) $(0.29) $(0.39) $(0.32) $(0.33) Net assets per unit, Net assets per unit, end of period (2) $10.96 $10.46 $10.77 $10.78 $11.04 $11.16 end of period (2) $11.29 $10.74 $11.02 $10.99 $11.19 $11.25

3 HSBC Canadian Bond Fund

HSBC Canadian Bond Fund – Manager Series – HSBC Canadian Bond Fund – Institutional Series Net Assets per Unit(1) – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $9.79 $10.09 $10.10 $10.34 $10.44 $9.98 beginning of period (2) $11.22 $11.50 $11.45 $11.67 $11.74 $11.22 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.16 0.33 0.35 0.37 0.38 0.78 Total revenue 0.18 0.37 0.39 0.41 0.43 0.30 Total expenses (0.05) (0.11) (0.09) (0.10) (0.09) (0.14) Total expenses – – – – – (0.01) Realized gains (losses) 0.02 0.03 – 0.08 0.01 0.01 Realized gains (losses) 0.02 0.02 – 0.11 0.02 (0.01) Unrealized gains Unrealized gains (losses) 0.49 (0.28) 0.02 (0.26) (0.02) 0.17 (losses) 0.56 (0.26) 0.04 (0.22) (0.11) 0.63 Total increase Total increase (decrease) from (decrease) from operations (2) $0.62 $(0.03) $0.28 $0.09 $0.28 $0.82 operations (2) $0.76 $0.13 $0.43 $0.30 $0.34 $0.91 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) (0.14) (0.29) (0.29) (0.32) (0.33) (0.34) dividends) (0.19) (0.36) (0.39) (0.41) (0.43) (0.44) From dividends –––––– From dividends – – – – – – From capital gains – (0.03) – (0.08) – – From capital gains – (0.03) – (0.10) – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.14) $(0.32) $(0.29) $(0.40) $(0.33) $(0.34) distributions (2,3) $(0.19) $(0.39) $(0.39) $(0.51) $(0.43) $(0.44) Net assets per unit, Net assets per unit, end of period (2) $10.26 $9.79 $10.09 $10.10 $10.34 $10.44 end of period (2) $11.79 $11.22 $11.50 $11.45 $11.67 $11.74

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $171 $154 $226 $298 $373 $125 000s) (4) $402,702 $384,608 $366,375 $317,001 $304,750 $269,154 Number of units Number of units outstanding (in 000s) (4) 17 16 22 29 36 12 outstanding (in 000s) (4) 34,146 34,271 31,863 27,675 26,109 22,934 Management expense Management expense ratio ("MER") (5) 1.04% 1.09% 0.94% 0.93% 0.93% 0.59% ratio ("MER") (5) 0.08% 0.05% 0.05% 0.04% 0.04% 0.06% MER before waivers or MER before waivers or absorptions (5) 1.07% 1.21% 0.94% 0.93% 0.93% 0.59% absorptions (5) 0.08% 0.05% 0.05% 0.04% 0.04% 0.06% Trading expense ratio (6) n/a n/a n/a n/a n/a n/a Trading expense Portfolio turnover rate (7) 15.64% 43.39% 35.58% 34.38% 23.54% 18.01% ratio (6) n/a n/a n/a n/a n/a n/a Net Asset Value per Portfolio turnover unit (4) $10.26 $9.79 $10.09 $10.10 $10.34 $10.44 rate (7) 15.64% 43.39% 35.58% 34.38% 23.54% 18.01% Net Asset Value per unit (4) $11.79 $11.22 $11.50 $11.45 $11.67 $11.74 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC Canadian Bond Fund

time. The increase/decrease in net assets from operations per unit is HSBC Investment Funds (Canada) Inc., for units of the Fund based on the weighted average number of units outstanding for the bought and held by unitholders. Finally, we used management relevant series over the financial period. fees to pay for additional marketing and distribution services to (3) Distributions are automatically reinvested in additional units of the the Fund. Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. For the six months ended June 30, 2019, approximately 45% of (4) This information is provided as at period-end of the year shown. the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the Fund, such distribution costs represented 50% of the the stated period and is expressed as an annualized percentage of management fees collected. This may vary by series, depending daily average net asset value during the period. In the year a series is on the assets invested in each of the series. established, the MER is annualized from the date of inception to the end of the period. The MER may vary from one mutual fund to Past Performance another and from one series of units to another. We may have The performance information shown assumes that all waived or absorbed certain fees and expenses otherwise payable by distributions made by the Fund in the periods shown were the Fund. The amount of expenses absorbed or waived is at the reinvested in additional securities of the Fund. The performance discretion of and can be terminated at any time by us. information does not take into account sales, redemption, The Fund may invest in units of other mutual funds and pooled distribution, optional charges or expenses you may be charged funds. You should note that in addition to the fees and expenses outside of the Fund or the effect of any income tax you may paid by the Fund, these other funds have their own operating expenses to pay. The Fund will effectively bear the operating have to pay as a result of your investment in the Fund that expenses of the other funds in proportion to its holdings in the other would have reduced returns or performance. The performance funds. However, the Fund will not invest in units of other funds if the of different fund series may vary for a number of reasons, Fund would be required to pay any management fees in respect of including differences in management fees and expenses. The such investments. In addition, the Fund will not make investments in Fund’s past performance does not necessarily indicate how it other funds if the Fund would be required to pay any sales or redemption fees in respect of such investments that duplicate a fee will perform in the future. payable by unitholders of the Fund. Further, the Fund will not invest in units of other funds if any sales or redemption fees are payable in Year-by-Year Returns respect of such investments. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The higher the Fund’s portfolio turnover rate in a period, the greater the Returns – Investor Series trading costs payable by the Fund in the period, and the greater the For the 12-month periods ended December 31 and the chance of an investor receiving taxable capital gains in the period. six-month period ended June 30, 2019 There is not necessarily a relationship between a high turnover rate 10% and the performance of the Fund. The rate is calculated based on 7.5% 7.5% the lesser of purchases or sales of securities divided by the average 6.4% 6.2% 6.3% weighted market value of the portfolio securities, excluding short-term securities. 5% 4.0% 2.7% 2.0% Management Fees 1.4% 0.0% For the six months ended June 30, 2019, the Fund paid us 0% management fees of $1,390,796. The management fee for each -1.3% series is calculated as a percentage of the daily net asset value for that series. The fees are reduced, where required, so that -5% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 these fees do not duplicate fees payable by mutual funds in 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 which the Fund invests for the same service. The Fund’s management fees were used by us to pay costs for managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including

5 HSBC Canadian Bond Fund

10% 10% 8.6% 8.6% 7.5% 7.4% 7.5% 7.3% 6.8% 6.4% 6.1% 6.0% 5.2% 5% 4.0% 5% 3.8% 3.2% 2.3% 2.5% 1.5% 0.8% 1.1% 0% 0% -0.5% -0.2% -1.1%

-5% -5% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Returns – Premium Series For the 12-month periods ended December 31 and the six-month period ended June 30, 2019 10% 7.7% 7.7% 6.7% 6.4% 6.4% 5% 4.3% 3.0% 2.3% 1.6% 0.3% 0% -1.0%

-5% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Returns – Manager Series For the 12-month periods ended December 31 and the six-month period ended June 30, 2019 10% 8.1% 8.0% 6.9% 6.7% 6.3% 5% 4.6% 2.9% 2.2% 1.5% 0.0% 0% -0.7%

-5% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

6 HSBC Canadian Bond Fund

Summary of Investment Portfolio As at June 30, 2019

Asset Mix Percentage of NAV

Corporate Bonds 45.11% Government Bonds 44.90% Investment Funds 9.03% Cash & Equivalents 0.96% Total 100.00%

Top 25 Holdings Percentage of NAV

HSBC Mortgage Fund - Institutional Series 7.00% Government of Canada, 3.96%, 12/01/2036 5.02% Government of Canada, 4.00%, 06/01/2041 4.51% Province of Ontario, 2.90%, 06/02/2049 3.00% Province of Alberta, 3.50%, 06/01/2031 2.32% Province of Saskatchewan, 5.00%, 03/05/2037 2.23% Government of Canada, 2.75%, 12/01/2048 2.14% Province of Ontario, 2.85%, 06/02/2023 2.11% HSBC Emerging Markets Debt Fund - Institutional Series 2.03% Province of British Columbia, 2.80%, 06/18/2048 1.90% Province of Ontario, 5.60%, 06/02/2035 1.75% Province of New Brunswick, 3.55%, 06/03/2043 1.50% Province of Manitoba, 4.05%, 09/05/2045 1.37% Province of Ontario, 2.90%, 06/02/2028 1.35% City of Toronto, 3.80%, 12/13/2042 1.32% Peel Regional Municipality, 5.10%, 06/29/2040 1.20% Suncor Energy Inc., 3.10%, 11/26/2021 1.12% Province of Ontario, 2.70%, 06/02/2029 1.10% Muskrat Falls / Labrador Transmission Assets Funding Trust, 3.83%, 06/01/2037 1.09% Province of Ontario, 2.60%, 06/02/2027 1.00% Goldman Sachs Group Inc., 3.55%, 02/12/2021 0.98% BHP Billiton Finance Ltd., 3.23%, 05/15/2023 0.96% Brookfield Property Finance ULC, 4.35%, 07/03/2023 0.95% Genworth MI Canada Inc., 4.24%, 04/01/2024 0.95% Canadian Imperial Bank of Commerce, 1.64%, 07/12/2021 0.93% Total of Top 25 Holdings 49.83%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. The Fund invests in other mutual funds, and the prospectus and other information about the underlying funds are available on SEDAR at www.sedar.com.

7 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents, as well as the Funds’ 3 Floor, 885 West Georgia Street Financial Statements, at no cost by calling us toll-free at Vancouver, BC V6C 3E8 1-888-390-3333, contacting your authorized dealer or Toronto visiting our website at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Global Corporate Bond Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Global Corporate Bond Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the sentiment, sparked by the US administration’s threat of further Fund; we, us and our refer to HSBC Global Asset Management tariffs on China, but the market rallied in June in anticipation of (Canada) Limited; and the Fund refers to the HSBC Global rate cuts in 2019. Corporate Bond Fund. US Treasuries rallied over the first half of 2019 with two-, three- We are the manager, trustee and primary investment advisor of and five-year yields falling 74, 75 and 75 basis points to end the Fund. We have entered into a sub-advisory agreement with June at 1.75%, 1.71% and 1.77%, respectively, while 10-year HSBC Global Asset Management (USA) Inc. and HSBC Global and 30-year yields fell 68 and 49 basis points to end the period Asset Management (France), under which HSBC Global Asset at 2.01% and 2.53%, respectively. The yield on 10-year German Management (USA) Inc. and HSBC Global Asset Management bunds fell 57 basis points to -0.33%. (France) provide investment advice and portfolio management The Fund’s overweight position to the US component of its services to the Fund. For an explanation of the relationship portfolio and underweight position to the euro component between us and the sub-advisors, see the section Selection of contributed to positive performance as European bonds Sub-Advisors in the Fund’s Simplified Prospectus. underperformed US bonds over the period. Issue selection was Introduction also positive for performance, driven by positioning in the US This Interim Management Report of Fund Performance contains component of the portfolio. financial highlights but does not contain either the semi-annual Recent Developments financial report or annual financial statements of the investment Over the period, the Fund was overweight in US-dollar bonds fund. You may obtain a copy of the Fund’s semi-annual financial and underweight in euro bonds as US bonds were more report or annual financial statements at your request, at no cost, attractive from a relative value perspective. In credit quality, the by calling us toll-free at 1-888-390-3333, by visiting our website Fund is in line with the reference index. Within this rating, the at www.assetmanagement.hsbc.ca, by visiting the SEDAR fund is overweight in AA and BBB rated bonds and underweight website at www.sedar.com or by writing to us at: in A rated bonds. Corporate Secretary By sector, the Fund’s largest overweight positions compared to HSBC Global Asset Management (Canada) Limited the benchmark are in energy and financials, and the largest 3rd Floor, 885 West Georgia Street underweight positions are in consumer non-cyclicals and Vancouver, BC V6C 3E8 technology. Within the energy sector, the fund is overweight in You may also contact us using one of these methods to request a pipelines and refining and underweight in exploration and copy of the Fund’s proxy voting policies and procedures, proxy production and services. The underweight position in the voting disclosure record or quarterly statement of investment technology sector is due to current valuations that have made portfolio. the sector relatively less attractive.

Results of Operations Related Party Transactions As of June 30, 2019, the Fund's net assets increased by 0.4% to We, on behalf of the Fund, in our role as fund manager, may, $44.7 million from $44.5 million at the end of 2018. Positive from time to time, enter into transactions or arrangements with investment performance, partially offset by net withdrawals, or involving other members of the HSBC Group or other people resulted in an overall increase in net asset value. or companies related or connected to us or the Fund. To proceed with the transactions, the Fund relies on the positive Investment Performance recommendation of the Fund’s Independent Review Committee. A The HSBC Global Corporate Bond Fund (Investor Series) rose condition of this positive recommendation is that the transactions 7.96% for the six months ending June 30, 2019, while the are performed in accordance with our policy on Related Party benchmark Bloomberg Barclays Global Aggregate Corporates Transactions. For more general information on persons related to AWS Hedged US Dollar Index rose 8.35% over the same period. the Fund and the types of potential transactions, see the Fund’s The Fund’s returns are after the deduction of fees and expenses, Simplified Prospectus. while the benchmark’s returns do not include any costs of investing. See the Past Performance section for the returns of The following is a summary of current transactions and other series of the Fund, which may vary due to differences in arrangements with entities that are related to us or the Fund. management fees and expenses. Manager, Trustee and Investment Advisor The year began with a risk-on rally as recessionary fears faded We are the manager, trustee and primary investment advisor of and a more “patient” tone from the US Federal Reserve helped the Fund. As manager, we manage the overall business and boost investor sentiment. Credit markets experienced one of operations of the Fund. As trustee, we hold legal title to the their best starts to the year, driving spreads tighter. Credit property of the Fund on your behalf. As primary investment spreads widened in May as investors shifted to a risk-off advisor, we provide investment advice and portfolio

1 HSBC Global Corporate Bond Fund management services to the Fund. We receive a fee from the All figures are stated in US dollars. Fund for these services based on assets under management, calculated daily and paid monthly. HSBC Global Corporate Bond Fund – Investor We have entered into a sub-advisory agreement with HSBC Series – Net Assets per Unit(1) Global Asset Management (USA) Inc. (an affiliate) and HSBC Period ended June 30, 2019, and years ended December 31 Global Asset Management (France) (an affiliate), under which June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, HSBC Global Asset Management (USA) Inc. and HSBC Global 2019 2018 2017 2016 2015 Asset Management (France) provide investment advice and Net assets per unit, portfolio management services to the Fund. We pay HSBC beginning of period (2) $9.78 $10.45 $10.16 $9.86 $10.00 Global Asset Management (USA) Inc. and HSBC Global Asset Increase Management (France) an investment advisory fee from the Fund (decrease) from based on assets under management, calculated daily and paid operations: quarterly. For more information on our ability to hire Total revenue 0.16 0.31 0.29 0.28 0.06 Total expenses (0.09) (0.19) (0.19) (0.18) (0.04) sub-advisors, see the section Organization and Management of Realized gains (losses) – 0.26 (0.01) 0.05 0.08 the HSBC Mutual Funds in the Fund’s Simplified Prospectus. Unrealized gains (losses) 0.71 (0.67) 0.29 0.01 (0.17) Distribution Services Total increase The Fund is distributed through us, HSBC Investment Funds (decrease) from (Canada) Inc. (our wholly owned subsidiary and affiliate) and operations (2) $0.78 $(0.29) $0.38 $0.16 $(0.07) HSBC Securities (Canada) Inc. (an affiliate) directly or through its Distributions to division, HSBC InvestDirect. We pay distribution and servicing unitholders: fees to them based on the amount of assets held in the From net investment investor’s account, and additionally, in some cases, on the income (excluding dividends) (0.06) (0.11) (0.09) (0.09) (0.01) amount of the initial purchase. If you hold units of this Fund From dividends – – – – – and/or other HSBC Mutual Funds in a registered plan with HSBC From capital gains – (0.23) – – (0.07) Investment Funds (Canada) Inc., they may charge you an annual Return of capital – – – – – fee to cover the annual administration costs of the plan. We Total annual permit HSBC Investment Funds (Canada) Inc. to collect these distributions (2,3) $(0.06) $(0.34) $(0.09) $(0.09) $(0.08) fees by redeeming sufficient units of the Fund with the highest Net assets per unit, end market value in your registered plan. of period (2) $10.50 $9.78 $10.45 $10.16 $9.86

Purchases of Securities Underwritten by a Related Party During the period, the Fund invested in certain securities that Ratios and Supplemental Data were underwritten, in whole or in part, by entities that are a June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, related party to us. To proceed with the transactions, the Fund 2019 2018 2017 2016 2015 relied on the approval of the Fund’s Independent Review Net Asset Value (in Committee by way of Standing Instruction. A condition of this 000s) (4) $4,811 $4,289 $3,961 $3,316 $529 Number of units approval was that the transactions were performed in outstanding (in accordance with our policy on Purchases of Securities 000s) (4) 458 438 379 327 54 Underwritten by a Related Party. Management expense ratio Financial Highlights ("MER") (5) 1.89% 1.88% 1.88% 1.80% 2.02% The following tables show selected key financial information MER before waivers or absorptions (5) 1.89% 1.89% 1.90% 1.85% 2.35% about the Fund and are intended to help you understand the Trading expense Fund’s financial performance for the six-month period ended ratio (6) n/a n/a n/a n/a n/a June 30, 2019, and for the last three years ended December 31, Portfolio turnover as applicable. In the year a fund is established, “period” rate (7) 49.31% 81.74% 104.11% 81.94% 40.29% represents the period from inception to December 31 or June 30 Net Asset Value per unit (4) $10.50 $9.78 $10.45 $10.16 $9.86 of that fiscal year, as applicable. This information is derived from the Fund’s unaudited semi-annual financial statements and the audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net assets from operations being based on average units outstanding during the period and all other numbers being based on actual units outstanding at the relevant point in time.

2 HSBC Global Corporate Bond Fund

HSBC Global Corporate Bond Fund – Advisor HSBC Global Corporate Bond Fund – Premium Series – Net Assets per Unit(1) Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019** 2018** 2017 2016 2015 2019 2018 2017 2016 2015 Net assets per unit, Net assets per unit, beginning of period (2) $– $10.73 $10.30 $9.84 $10.00 beginning of period (2) $9.79 $10.45 $10.16 $9.86 $10.00 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue – – (0.01) (0.01) – Total revenue 0.16 0.30 0.29 0.28 0.06 Total expenses – – – – – Total expenses (0.08) (0.16) (0.16) (0.15) (0.04) Realized gains (losses) – 0.19 (0.09) – 0.05 Realized gains (losses) – 0.27 0.01 0.04 0.09 Unrealized gains Unrealized gains (losses) – (0.19) 0.10 1.00 0.01 (losses) 0.70 (0.71) 0.29 (0.07) (0.17) Total increase Total increase (decrease) from (decrease) from operations (2) $– $– $– $0.99 $0.06 operations (2) $0.78 $(0.30) $0.43 $0.10 $(0.06) Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) – (0.10) (0.10) (0.11) (0.01) dividends) (0.08) (0.15) (0.12) (0.12) (0.02) From dividends – – – – – From dividends – – – – – From capital gains – – – – (0.07) From capital gains – (0.23) – – (0.08) Return of capital – – – – – Return of capital – – – – – Total annual Total annual distributions (2,3) $– $(0.10) $(0.10) $(0.11) $(0.08) distributions (2,3) $(0.08) $(0.38) $(0.12) $(0.12) $(0.10) Net assets per unit, end Net assets per unit, end of period (2) $– $– $10.73 $10.30 $9.84 of period (2) $10.50 $9.79 $10.45 $10.16 $9.86

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019** 2018** 2017 2016 2015 2019 2018 2017 2016 2015 Net Asset Value (in Net Asset Value (in 000s) (4) $– $– $–* $–* $–* 000s) (4) $16,996 $19,828 $23,063 $14,336 $1,713 Number of units Number of units outstanding (in outstanding (in 000s) (4) – – –* –* –* 000s) (4) 1,619 2,026 2,206 1,411 174 Management Management expense ratio expense ratio ("MER") (5) – – 0.00% 0.00% 0.00% ("MER") (5) 1.55% 1.52% 1.53% 1.46% 1.84% MER before waivers MER before waivers or absorptions (5) – – 0.00% 0.00% 0.00% or absorptions (5) 1.55% 1.53% 1.54% 1.50% 1.84% Trading expense Trading expense ratio (6) – n/a n/a n/a n/a ratio (6) n/a n/a n/a n/a n/a Portfolio turnover Portfolio turnover rate (7) – 81.74% 104.11% 81.94% 40.29% rate (7) 49.31% 81.74% 104.11% 81.94% 40.29% Net Asset Value per Net Asset Value per unit (4) $– $– $10.73 $10.30 $9.84 unit (4) $10.50 $9.79 $10.45 $10.16 $9.86 * Amount less than one thousand. ** The Advisor Series was fully redeemed during 2018 & 2019; however, it remains in offer as at period-end.

3 HSBC Global Corporate Bond Fund

HSBC Global Corporate Bond Fund – Manager HSBC Global Corporate Bond Fund – Series – Net Assets per Unit(1) Institutional Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018*** 2017 2016 2015 2019 2018 2017 2016 2015 Net assets per unit, Net assets per unit, beginning of period (2) $– $10.62 $10.24 $9.82 $10.00 beginning of period (2) $9.75 $10.42 $10.13 $9.84 $10.00 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue – – (0.01) (0.01) – Total revenue 0.16 0.30 0.28 0.28 0.05 Total expenses – – – – – Total expenses (0.01) (0.03) (0.02) (0.02) (0.01) Realized gains (losses) – 0.18 (0.09) – 0.05 Realized gains (losses) – 0.27 (0.03) 0.04 0.07 Unrealized gains Unrealized gains (losses) – (0.18) 0.10 0.99 0.02 (losses) 0.71 (0.70) 0.32 0.26 (0.16) Total increase Total increase (decrease) from (decrease) from operations (2) $– $– $– $0.98 $0.07 operations (2) $0.86 $(0.16) $0.55 $0.56 $(0.05) Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) – (0.12) (0.15) (0.15) (0.02) dividends) (0.15) (0.27) (0.26) (0.26) (0.03) From dividends – – – – – From dividends – – – – – From capital gains – – – – (0.08) From capital gains – (0.24) – – (0.08) Return of capital – – – – – Return of capital – – – – – Total annual Total annual distributions (2,3) $– $(0.12) $(0.15) $(0.15) $(0.10) distributions (2,3) $(0.15) $(0.51) $(0.26) $(0.26) $(0.11) Net assets per unit, end Net assets per unit, end of period (2) $– $– $10.62 $10.24 $9.82 of period (2) $10.46 $9.75 $10.42 $10.13 $9.84

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018*** 2017 2016 2015 2019 2018 2017 2016 2015 Net Asset Value (in Net Asset Value (in 000s) (4) $– $– $–* $–* $–* 000s) (4) $22,914 $20,339 $21,427 $28,376 $24,663 Number of units Number of units outstanding (in outstanding (in 000s) (4) – – –* –* –* 000s) (4) 2,190 2,086 2,057 2,802 2,507 Management Management expense ratio expense ratio ("MER") (5) – – 0.00% 0.00% 0.00% ("MER") (5) 0.26% 0.25% 0.23% 0.19% 0.47% MER before waivers MER before waivers or absorptions (5) – – 0.00% 0.00% 0.00% or absorptions (5) 0.26% 0.25% 0.23% 0.22% 0.47% Trading expense Trading expense ratio (6) – n/a n/a n/a n/a ratio (6) n/a n/a n/a n/a n/a Portfolio turnover Portfolio turnover rate (7) – 81.74% 104.11% 81.94% 40.29% rate (7) 49.31% 81.74% 104.11% 81.94% 40.29% Net Asset Value per Net Asset Value per unit (4) $– $– $10.62 $10.24 $9.82 unit (4) $10.46 $9.75 $10.42 $10.13 $9.84 * Amount less than one thousand. (1) This information is derived from the Fund’s unaudited semi-annual *** The Manager Series was fully redeemed during 2018 & 2019; financial report and audited annual financial statements. All however, it remains in offer as at period-end. balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC Global Corporate Bond Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the including differences in management fees and expenses. The end of the period. The MER may vary from one mutual fund to Fund’s past performance does not necessarily indicate how it another and from one series of units to another. We may have will perform in the future. waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the Year-by-Year Returns discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns – Investor Series higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 15% and the performance of the Fund. The rate is calculated based on the lesser of purchases or sales of securities divided by the average 10% weighted market value of the portfolio securities, excluding 8.0% short-term securities. 5% 3.9% 3.8% Management Fees For the six months ended June 30, 2019, the Fund paid us 0% management fees of $129,123. The management fee for each series is calculated as a percentage of the daily net asset value -5% -3.1% for that series. The fees are reduced, where required, so that Dec. 31 Dec. 31 Dec. 31 Jun. 30 2016 2017 2018 2019 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Returns – Advisor Series The Fund’s management fees were used by us to pay costs for For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 15% making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The 10% management fees also funded commission payments and other 5.8% compensation (collectively “distribution costs”) to sales 5.1% 5% representatives and registered dealers and brokers, including HSBC Investment Funds (Canada) Inc., for units of the Fund 0% bought and held by unitholders. Finally, we used management fees to pay for additional marketing and distribution services to -5% the Fund. Dec. 31 Dec. 31 Dec. 31 Jun. 30 2016 2017 2018* 2019* For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual * The Advisor Series was fully redeemed since 2018; however, it remains Funds were used to fund distribution costs. In comparison, for in offer as at period-end. the Fund, such distribution costs represented 35% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC Global Corporate Bond Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 15% Asset Mix Percentage 10% 8.1% of NAV

Corporate Bonds 89.59% 5% 4.2% 4.1% Government Bonds 4.82% Cash & Equivalents 5.59% 0% Total 100.00%

-2.8% -5% > Dec. 31 Dec. 31 Dec. 31 Jun. 30 Geographic Mix 2016 2017 2018 2019 Percentage of NAV

Returns – Manager Series United States 44.38% For the 12-month periods ended December 31 and the France 11.70% six-month period ended June 30, 2019 Netherlands 8.42% 15% United Kingdom 7.73% Australia 2.81% Italy 2.43% 10% Germany 2.37% Spain 2.29% 5.8% 5.1% 5% Cayman Islands 1.70% British Virgin Islands 1.42% Ireland 1.41% 0% Canada 1.34% Belgium 1.05% -5% Switzerland 0.80% Dec. 31 Dec. 31 Dec. 31 Jun. 30 2016 2017 2018* 2019* Jersey 0.73% Sweden 0.56% * The Manager Series was fully redeemed since 2018; however, it remains Luxembourg 0.55% in offer as at period-end. New Zealand 0.51% Saudi Arabia 0.45% Returns – Institutional Series Mexico 0.44% For the 12-month periods ended December 31 and the Norway 0.29% six-month period ended June 30, 2019 Denmark 0.28% 15% Austria 0.27% Portugal 0.27% Bermuda 0.21% 10% 8.8% Cash & Equivalents 5.59% 5.6% 5.5% Total 100.00% 5%

0% -1.5% -5% Dec. 31 Dec. 31 Dec. 31 Jun. 30 2016 2017 2018 2019

6 HSBC Global Corporate Bond Fund

Top 25 Holdings Percentage of NAV

LafargeHolcim Sterling Finance (Netherlands) BV, 3.00%, 05/12/2032 1.43% United States Treasury Note, 3.38%, 11/15/2048 1.29% Electricite de France SA, 6.00%, 12/29/2049 1.21% Omega Healthcare Investors Inc., 4.38%, 08/01/2023 1.20% United Kingdom Gilt, 4.25%, 12/07/2027 1.09% Cooperatieve Rabobank UA, 2.25%, 03/23/2022 1.01% Lloyds Banking Group PLC, 2.25%, 10/16/2024 0.86% AerCap Ireland Capital DAC / AerCap Global Aviation Trust, 3.50%, 01/15/2025 0.83% Sinopec Group Overseas Development (2016) Ltd., 1.75%, 09/29/2019 0.78% AT&T Inc., 2.90%, 12/04/2026 0.74% Comcast Corp., 3.95%, 10/15/2025 0.72% Barclays PLC, 3.25%, 02/12/2027 0.71% Macquarie Group Ltd., 3.19%, 11/28/2023 0.68% Pfizer Inc., 2.74%, 06/15/2043 0.68% BNP Paribas SA, 4.38%, 03/01/2033 0.64% JPMorgan Chase & Co., 3.80%, 07/23/2024 0.64% Sinopec Group Overseas Development (2018) Ltd., 4.13%, 09/12/2025 0.64% United States Treasury Note, 2.25%, 04/30/2021 0.64% UniCredit Spa, 1.00%, 01/18/2023 0.63% Dell International LLC / EMC Corp., 4.90%, 10/01/2026 0.61% Orange SA, 3.25%, 01/15/2032 0.61% Citigroup Inc., 4.45%, 09/29/2027 0.60% Severn Trent Utilities Finance PLC, 2.75%, 12/05/2031 0.60% EPR Properties, 4.75%, 12/15/2026 0.58% Banco Santander SA, 3.13%, 01/19/2027 0.57% Total of Top 25 Holdings 19.99%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Emerging Markets Debt Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Emerging Markets Debt Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the rebound in oil prices. While numerous risks presented Fund; we, us and our refer to HSBC Global Asset Management themselves in Q2 – including escalating global trade tensions, (Canada) Limited; and the Fund refers to the HSBC Emerging generally weaker growth data and downside pressure on Markets Debt Fund. commodity prices – the sharp fall in developed market rates We are the manager, trustee and primary investment advisor of supported positive returns overall across emerging market the Fund. We have entered into a sub-advisory agreement with debt assets. HSBC Global Asset Management (USA) Inc., under which HSBC Both investment-grade and high-yield countries performed Global Asset Management (USA) Inc. provides investment strongly given the positive benefits of the compression in yield advice and portfolio management services to the Fund. For an and improved market sentiment. The Fund’s underweight explanation of the relationship between us and the sub-advisor, position to China contributed to relative performance as did see the section Selection of Sub-Advisors in the Fund’s Simplified overweight positions in select high-yield countries. An Prospectus. overweight position to Mexico and the allocation to the Introduction quasi-sovereign PEMEX detracted from performance. This Interim Management Report of Fund Performance contains Within local exposures, the largest contributor to returns was an financial highlights but does not contain either the semi-annual overweight position to the Argentine peso as the currency was financial report or annual financial statements of the investment up 15.5% over the period. Underweight exposure to the Chilean fund. You may obtain a copy of the Fund’s semi-annual financial peso and underweight positions to local rates in Poland, report or annual financial statements at your request, at no cost, Thailand and the Czech Republic also contributed to returns. by calling us toll-free at 1-888-390-3333, by visiting our website at www.assetmanagement.hsbc.ca, by visiting the SEDAR Recent Developments website at www.sedar.com or by writing to us at: The Fund maintains an overweight risk position given the Corporate Secretary portfolio management team’s medium-term positive outlook for HSBC Global Asset Management (Canada) Limited emerging market debt. At the end of June, the Fund held an 3rd Floor, 885 West Georgia Street overweight position in hard currency duration of +0.09 years Vancouver, BC V6C 3E8 and an overweight-to-spread duration of +0.04 years versus the benchmark. You may also contact us using one of these methods to request a copy of the Fund’s proxy voting policies and procedures, proxy Given the overall low level of yield, the Fund is underweight to voting disclosure record or quarterly statement of investment local rate duration and favours overweight positions to countries portfolio. with high real rates rather than underweight positions to low carry countries with a high correlation to US rates. At the end of Results of Operations the period, the Fund was underweight to local rate duration by As of June 30, 2019, the Fund's net assets decreased by 6.5% to -0.12 years versus the benchmark. For local currency, the Fund $477.4 million from $510.4 million at the end of 2018. Net ended the period with a neutral position to emerging market withdrawals, partially offset by positive investment currencies; overweight positions to the Argentine peso, Indian performance, resulted in an overall decrease in net asset value. rupee, Indonesian rupiah, Malaysian ringgit and Polish zloty; and underweight positions to the Israeli shekel, Thai baht and Investment Performance Singapore dollar. The HSBC Emerging Markets Debt Fund (Investor Series) rose 4.94% for the six months ending June 30, 2019, while the Related Party Transactions benchmark rose 5.66% over the same period. The benchmark is We, on behalf of the Fund, in our role as fund manager, may, a weighted composite consisting of the JP Morgan Emerging from time to time, enter into transactions or arrangements with Markets Bond Index Global Hedged (C$) (50%), JP Morgan or involving other members of the HSBC Group or other people Government Bond Index – Emerging Markets Global Diversified or companies related or connected to us or the Fund. To proceed Unhedged (C$) (25%) and JP Morgan Emerging Local Markets with the transactions, the Fund relies on the positive Index Plus (C$) (25%). The Fund’s returns are after the recommendation of the Fund’s Independent Review Committee. A deduction of fees and expenses, while the benchmark’s returns condition of this positive recommendation is that the transactions do not include any costs of investing. See the Past Performance are performed in accordance with our policy on Related Party section for the returns of other series of the Fund, which may Transactions. For more general information on persons related to vary due to differences in management fees and expenses. the Fund and the types of potential transactions, see the Fund’s Simplified Prospectus. Following a difficult 2018, emerging market assets had a very strong first half of the year thanks to more dovish tones from the The following is a summary of current transactions and US Federal Reserve, ongoing US-China trade negotiations and a arrangements with entities that are related to us or the Fund.

1 HSBC Emerging Markets Debt Fund

Purchases of Securities Underwritten by a Related Party Ratios and Supplemental Data During the period, the Fund invested in certain securities that June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, were underwritten, in whole or in part, by entities that are a 2019 2018 2017 2016 2015 2014 related party to us. To proceed with the transactions, the Fund Net Asset Value (in relied on the approval of the Fund’s Independent Review 000s) (4) $11,859 $12,018 $14,598 $17,924 $21,126 $29,038 Committee by way of Standing Instruction. A condition of this Number of units outstanding (in 000s) (4) 1,183 1,234 1,406 1,771 2,102 2,858 approval was that the transactions were performed in Management expense accordance with our policy on Purchases of Securities ratio ("MER") (5) 1.82% 1.80% 1.78% 1.78% 1.76% 1.80% Underwritten by a Related Party. MER before waivers or absorptions (5) 1.82% 1.80% 1.78% 1.78% 1.76% 1.80% Financial Highlights Trading expense ratio (6) n/a n/a n/a n/a n/a n/a Portfolio turnover rate (7) 42.80% 84.05% 51.34% 79.90% 61.87% 75.75% The following tables show selected key financial information Net Asset Value per about the Fund and are intended to help you understand the unit (4) $10.02 $9.73 $10.38 $10.12 $10.05 $10.16 Fund’s financial performance for the six-month period ended June 30, 2019, and for the last five years ended December 31, as applicable. In the year a fund is established, “period” represents the period from inception to December 31 or June 30 of that fiscal year, as applicable. This information is derived from the Fund’s unaudited semi-annual financial statements and the audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a

2 HSBC Emerging Markets Debt Fund

HSBC Emerging Markets Debt Fund – Advisor HSBC Emerging Markets Debt Fund – Premium Series – Net Assets per Unit(1) Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $9.51 $10.19 $10.00 $9.98 $10.11 $10.06 beginning of period (2) $9.69 $10.33 $10.07 $10.00 $10.11 $10.06 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.20 0.53 0.44 0.48 0.51 0.46 Total revenue 0.26 0.54 0.44 0.48 0.52 0.46 Total expenses (0.11) (0.23) (0.25) (0.25) (0.25) (0.19) Total expenses (0.07) (0.14) (0.15) (0.15) (0.14) (0.15) Realized gains (losses) 0.01 (0.48) 0.30 0.17 (0.41) 0.04 Realized gains (losses) 0.06 (0.49) 0.31 0.15 (0.41) 0.07 Unrealized gains Unrealized gains (losses) 0.47 (0.18) (0.04) (0.13) 0.38 0.20 (losses) 0.25 (0.23) (0.04) (0.04) 0.40 0.25 Total increase Total increase (decrease) from (decrease) from operations (2) $0.57 $(0.36) $0.45 $0.27 $0.23 $0.51 operations (2) $0.50 $(0.32) $0.56 $0.44 $0.37 $0.63 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) (0.19) (0.33) (0.26) (0.29) (0.33) (0.27) dividends) (0.21) (0.36) (0.30) (0.32) (0.37) (0.31) From dividends –––––– From dividends – – – – – – Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.19) $(0.33) $(0.26) $(0.29) $(0.33) $(0.27) distributions (2,3) $(0.21) $(0.36) $(0.30) $(0.32) $(0.37) $(0.31) Net assets per unit, Net assets per unit, end of period (2) $9.76 $9.51 $10.19 $10.00 $9.98 $10.11 end of period (2) $9.98 $9.69 $10.33 $10.07 $10.00 $10.11

3 HSBC Emerging Markets Debt Fund

HSBC Emerging Markets Debt Fund – Manager HSBC Emerging Markets Debt Fund – Series – Net Assets per Unit(1) Institutional Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019** 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $9.32 $9.99 $9.79 $9.79 $10.16 $10.10 beginning of period (2) $9.77 $10.40 $10.15 $10.08 $10.19 $10.15 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.13 0.52 0.43 0.47 0.50 0.46 Total revenue 0.26 0.55 0.44 0.48 0.52 0.46 Total expenses (0.04) (0.16) (0.18) (0.19) (0.37) (0.12) Total expenses (0.01) (0.02) (0.01) (0.01) (0.01) (0.02) Realized gains (losses) 0.01 (0.47) 0.29 0.14 (0.44) 0.14 Realized gains (losses) 0.06 (0.50) 0.29 0.14 (0.49) 0.15 Unrealized gains Unrealized gains (losses) 0.22 (0.18) (0.03) (0.07) 0.32 (0.10) (losses) 0.25 (0.18) (0.05) (0.08) 0.30 (0.14) Total increase Total increase (decrease) from (decrease) from operations (2) $0.32 $(0.29) $0.51 $0.35 $0.01 $0.38 operations (2) $0.56 $(0.15) $0.67 $0.53 $0.32 $0.45 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) (0.11) (0.37) (0.32) (0.34) (0.38) (0.34) dividends) (0.27) (0.49) (0.44) (0.46) (0.50) (0.45) From dividends – ––––– From dividends – – – – – – Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.11) $(0.37) $(0.32) $(0.34) $(0.38) $(0.34) distributions (2,3) $(0.27) $(0.49) $(0.44) $(0.46) $(0.50) $(0.45) Net assets per unit, Net assets per unit, end of period (2) $– $9.32 $9.99 $9.79 $9.79 $10.16 end of period (2) $10.05 $9.77 $10.40 $10.15 $10.08 $10.19

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019** 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $– $3 $3 $3 $3 $3 000s) (4) $459,884 $492,884 $442,807 $309,614 $297,099 $229,849 Number of units Number of units outstanding (in 000s) (4) – –* –* –* –* –* outstanding (in 000s) (4) 45,757 50,468 42,561 30,514 29,475 22,554 Management expense Management expense ratio ("MER") (5) 1.46% 1.70% 1.82% 1.88% 3.72% 1.15% ratio ("MER") (5) 0.18% 0.16% 0.13% 0.14% 0.11% 0.17% MER before waivers or MER before waivers or absorptions (5) 21.13% 29.90% 28.67% 27.06% 20.04% 1.15% absorptions (5) 0.18% 0.16% 0.13% 0.14% 0.11% 0.17% Trading expense ratio (6) n/a n/a n/a n/a n/a n/a Trading expense Portfolio turnover rate (7) 42.80% 84.05% 51.34% 79.90% 61.87% 75.75% ratio (6) n/a n/a n/a n/a n/a n/a Net Asset Value per Portfolio turnover unit (4) $– $9.32 $9.99 $9.79 $9.79 $10.16 rate (7) 42.80% 84.05% 51.34% 79.90% 61.87% 75.75% Net Asset Value per * Amount less than one thousand. unit (4) $10.05 $9.77 $10.40 $10.15 $10.08 $10.19 ** The Manager Series was fully redeemed during 2019; however, it (1) This information is derived from the Fund’s unaudited semi-annual remains in offer as at period-end. financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC Emerging Markets Debt Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the including differences in management fees and expenses. The end of the period. The MER may vary from one mutual fund to Fund’s past performance does not necessarily indicate how it another and from one series of units to another. We may have will perform in the future. waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the Year-by-Year Returns discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns – Investor Series higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 20% and the performance of the Fund. The rate is calculated based on 15% the lesser of purchases or sales of securities divided by the average 12.7% weighted market value of the portfolio securities, excluding 10% short-term securities. 5.3% 4.9% 5% 3.6% 3.2% 2.1% Management Fees 0% For the six months ended June 30, 2019, the Fund paid us management fees of $121,002. The management fee for each -5% -4.1% -3.0% series is calculated as a percentage of the daily net asset value -10% for that series. The fees are reduced, where required, so that Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2012 2013 2014 2015 2016 2017 2018 2019 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Returns – Advisor Series The Fund’s management fees were used by us to pay costs for For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 20% making brokerage arrangements for the purchase and sale of 15% the investment portfolio and providing other services. The 12.7% management fees also funded commission payments and other 10% compensation (collectively “distribution costs”) to sales 4.6% 4.6% 5% 3.2% 3.0% representatives and registered dealers and brokers, including 1.9% HSBC Investment Funds (Canada) Inc., for units of the Fund 0% bought and held by unitholders. Finally, we used management -5% -4.1% -3.5% fees to pay for additional marketing and distribution services to -10% the Fund. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2012 2013 2014 2015 2016 2017 2018 2019 For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for the Fund, such distribution costs represented 37% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC Emerging Markets Debt Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 20% Sector Mix 15% 13.2% Percentage 10% of NAV 5.6% 5.1% Government Bonds 57.95% 5% 3.5% 3.9% 2.5% Energy 8.05% 0% Financials 2.41% Materials 2.24% -5% -3.7% -2.7% Utilities 1.94% Communication Services 0.54% -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Industrials 0.24% 2012 2013 2014 2015 2016 2017 2018 2019 Health Care 0.06% Cash & Equivalents 26.57% Returns – Manager Series Total 100.00% For the 12-month periods ended December 31 and the

six-month period ended June 30, 2019 > Geographic Mix 20% Percentage 15% 14.0% of NAV Indonesia 9.55% 10% Mexico 7.69% 5.3% 5% 3.8% 3.5% Brazil 6.41% 0.1% Turkey 4.60% 0% Russia 4.51% Colombia 3.65% -5% -3.5% -2.9% Argentina 3.48% -10% South Africa 3.34% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2012 2013 2014 2015 2016 2017 2018 2019* Saudi Arabia 2.02% Oman 1.74% * The Manager Series was fully redeemed during the first month of 2019; Chile 1.55% however, it remains in offer as at period-end. Hungary 1.54% Sri Lanka 1.42% Returns – Institutional Series China 1.25% For the 12-month periods ended December 31 and the Qatar 1.25% six-month period ended June 30, 2019 Romania 1.13% 20% India 1.08% 14.7% Peru 1.05% 15% Malaysia 0.99% 10% Nigeria 0.96% 7.0% Ghana 0.87% 4.9% 5.3% 5.8% 5% 3.8% British Virgin Islands 0.84% Morocco 0.79% 0% Gabon 0.73% -1.4% -5% -2.5% Luxembourg 0.67% Dominican Republic 0.64% -10% Egypt 0.59% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2012 2013 2014 2015 2016 2017 2018 2019 Bahrain 0.53% Ireland 0.53% Kazakhstan 0.48% Costa Rica 0.47% Lebanon 0.45% Cayman Islands 0.44% Singapore 0.44% Thailand 0.44% Panama 0.43% United Arab Emirates 0.43% Venezuela 0.43% Ecuador 0.39%

6 HSBC Emerging Markets Debt Fund

Geographic Mix Percentage of NAV

Ivory Coast 0.38% Poland 0.37% United States 0.37% Ukraine 0.31% Philippines 0.29% Mongolia 0.28% Austria 0.25% Senegal 0.19% Croatia 0.18% Mauritius 0.17% United Kingdom 0.16% Serbia 0.15% Paraguay 0.12% Zambia 0.11% El Salvador 0.10% Bermuda 0.07% Netherlands 0.07% Jamaica 0.06% Cash & Equivalents 26.57% Total 100.00%

Top 25 Holdings Percentage of NAV

United States Treasury Bill, 2.37%, 10/24/2019 6.78% United States Treasury Bill, 2.39%, 09/26/2019 6.25% United States Treasury Bill, 2.46%, 08/29/2019 5.15% Brazil Letras do Tesouro Nacional, 0.00%, 01/01/2020 2.56% Colombian TES, 11.00%, 07/24/2020 2.03% Egypt Treasury Bills, 17.55%, 03/17/2020 1.45% Brazil Notas do Tesouro Nacional, Serie F, 10.00%, 01/01/2021 1.41% Saudi Government International Bond, 4.50%, 10/26/2046 1.40% South Africa Government Bond, 7.00%, 02/28/2031 1.18% Egypt Treasury Bills, 17.36%, 01/21/2020 1.16% Argentine Republic Government International Bond, 5.63%, 01/26/2022 1.03% Indonesia Government International Bond, 4.35%, 01/08/2027 0.94% Mexico Government International Bond, 4.50%, 04/22/2029 0.92% Indonesia Treasury Bond, 8.25%, 07/15/2021 0.91% Mexican Bonos, 5.75%, 03/05/2026 0.89% Argentine Republic Government International Bond, 6.88%, 01/11/2048 0.86% Russian Federal Bond - OFZ, 6.40%, 05/27/2020 0.82% Peru Government International Bond, 6.35%, 08/12/2028 0.80% Sri Lanka Government International Bond, 6.75%, 04/18/2028 0.79% Brazil Notas do Tesouro Nacional, Serie F, 10.00%, 01/01/2023 0.77% Bonos de la Tesoreria de la Republica en pesos, 4.50%, 03/01/2026 0.74% Indonesia Treasury Bond, 5.63%, 05/15/2023 0.74% United States Treasury Bill, 2.46%, 08/15/2019 0.73% Indonesia Treasury Bond, 6.13%, 05/15/2028 0.72% Petroleos Mexicanos, 6.88%, 08/04/2026 0.69% Total of Top 25 Holdings 41.72%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Monthly Income Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Monthly Income Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the The Fund generated a strong positive return in the first half of Fund; we, us and our refer to HSBC Global Asset Management the year and was slightly ahead of its benchmark. A modestly (Canada) Limited; and the Fund refers to the HSBC Monthly overweight position in Canadian equities and underweight Income Fund. positions in fixed income and preferred shares added positively to relative performance. The performance of the fixed income We are the manager, trustee and primary investment advisor of segment of the portfolio exceeded that of the broad short-term the Fund. bond market and also contributed positively to overall Fund performance. However, these positive performance drivers were Introduction partially offset by security selection in the Fund’s common and This Interim Management Report of Fund Performance contains preferred stock holdings. financial highlights but does not contain either the semi-annual financial report or annual financial statements of the investment Recent Developments fund. You may obtain a copy of the Fund’s semi-annual financial While ongoing trade tensions are a headwind for both market report or annual financial statements at your request, at no cost, sentiment and overall growth, we continue to see a low risk of by calling us toll-free at 1-888-390-3333, by visiting our website recession in North America for 2019 and 2020. We expect that at www.assetmanagement.hsbc.ca, by visiting the SEDAR both the global and Canadian economies will improve as the website at www.sedar.com or by writing to us at: year progresses. Equity markets continue to enjoy positive earnings and have relatively attractive valuations compared to Corporate Secretary bonds. In Canada, gains in earnings are moderating after a few HSBC Global Asset Management (Canada) Limited very strong years, and we foresee mid-single-digit gains in both rd 3 Floor, 885 West Georgia Street 2019 and 2020. Vancouver, BC V6C 3E8 The Fund continues to hold an overweight position in common You may also contact us using one of these methods to request a shares over fixed income and preferred shares. In fixed income, copy of the Fund’s proxy voting policies and procedures, proxy the strong rally in government bonds over the last three quarters voting disclosure record or quarterly statement of investment has left that sector extraordinarily expensive, as is seen by the portfolio. Government of Canada five-year bond yield falling from 2.3% on September 30, 2018, to 1.4% on June 30, 2019. We continue to Results of Operations find better opportunities in corporate and shorter-term As of June 30, 2019, the Fund's net assets increased by 8.5% to securities. $987.6 million from $910.4 million at the end of 2018. Net contributions and positive investment performance resulted in Related Party Transactions an overall increase in net asset value. We, on behalf of the Fund, in our role as fund manager, may, from time to time, enter into transactions or arrangements with Investment Performance or involving other members of the HSBC Group or other people The HSBC Monthly Income Fund (Investor Series) rose 7.09% or companies related or connected to us or the Fund. To proceed for the six months ending June 30, 2019, while the benchmark with the transactions, the Fund relies on the positive rose 7.38% over the same period. The benchmark is a weighted recommendation of the Fund’s Independent Review Committee. A composite consisting of the S&P/TSX Capped Composite Index condition of this positive recommendation is that the transactions (35%), HSBC Mortgage Fund Benchmark (30%), FTSE Canada are performed in accordance with our policy on Related Party Short-Term Bond Index (15%), FTSE Canada Mid-Term Bond Transactions. For more general information on persons related to Index (15%) and S&P/TSX Preferred Share Index (5%). The the Fund and the types of potential transactions, see the Fund’s Fund’s returns are after the deduction of fees and expenses, Simplified Prospectus. while the benchmark’s returns do not include any costs of investing. See the Past Performance section for the returns of The following is a summary of current transactions and other series of the Fund, which may vary due to differences in arrangements with entities that are related to us or the Fund. management fees and expenses. Manager, Trustee and Investment Advisor Following the sharp equity market downturn in 2018, sentiment We are the manager, trustee and primary investment advisor of was much more positive in the first half of 2019. Although the the Fund. As manager, we manage the overall business and buoyant market sentiment in Q1 was challenged in Q2 by operations of the Fund. As trustee, we hold legal title to the escalating US-China trade tensions, markets continued to push property of the Fund on your behalf. As primary investment higher. Reasonable valuations and corporate fundamentals also advisor, we provide investment advice and portfolio proved supportive for both equity and debt corporate assets, management services to the Fund. We receive a fee from the while government bond prices also rose (yields fell) in Fund for these services based on assets under management, anticipation of lower central bank rates. calculated daily and paid monthly.

1 HSBC Monthly Income Fund

Distribution Services HSBC Monthly Income Fund – Investor Series – The Fund is distributed through us, HSBC Investment Funds Net Assets per Unit(1) (Canada) Inc. (our wholly owned subsidiary and affiliate) and Period ended June 30, 2019, and years ended December 31 HSBC Securities (Canada) Inc. (an affiliate) directly or through its June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, division, HSBC InvestDirect. We pay distribution and servicing 2019 2018 2017 2016 2015 2014 fees to them based on the amount of assets held in the Net assets per unit, investor’s account, and additionally, in some cases, on the beginning of period (2) $9.98 $10.65 $10.42 $9.71 $10.20 $9.85 amount of the initial purchase. If you hold units of this Fund Increase and/or other HSBC Mutual Funds in a registered plan with HSBC (decrease) from Investment Funds (Canada) Inc., they may charge you an annual operations: Total revenue 0.17 0.32 0.31 0.32 0.34 0.34 fee to cover the annual administration costs of the plan. We Total expenses (0.07) (0.15) (0.15) (0.14) (0.14) (0.14) permit HSBC Investment Funds (Canada) Inc. to collect these Realized gains (losses) 0.04 0.17 0.15 0.19 0.02 (0.02) fees by redeeming sufficient units of the Fund with the highest Unrealized gains (losses) 0.57 (0.76) 0.15 0.57 (0.46) 0.41 market value in your registered plan. Total increase Purchases of Securities Underwritten by a Related Party (decrease) from operations (2) $0.71 $(0.42) $0.46 $0.94 $(0.24) $0.59 The Fund may invest in certain securities that are underwritten, in whole or in part, by entities that are a related party to us. To Distributions to unitholders: proceed with these transactions, the Fund relies on the approval From net investment of the Fund’s Independent Review Committee by way of income (excluding Standing Instruction. A condition of this approval is that the dividends) (0.12) (0.07) (0.18) (0.04) (0.09) (0.10) transactions are performed in accordance with our policy on From dividends – (0.12) – (0.16) (0.11) (0.10) From capital gains – (0.01) – – – – Purchases of Securities Underwritten by a Related Party. During Return of capital – (0.04) (0.06) (0.04) (0.04) (0.04) the period, the Fund did not invest in any such securities. Total annual distributions (2,3) $(0.12) $(0.24) $(0.24) $(0.24) $(0.24) $(0.24) Financial Highlights Net assets per unit, The following tables show selected key financial information end of period (2) $10.57 $9.98 $10.65 $10.42 $9.71 $10.20 about the Fund and are intended to help you understand the Fund’s financial performance for the six-month period ended June 30, 2019, and for the last five years ended December 31, Ratios and Supplemental Data as applicable. In the year a fund is established, “period” June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, represents the period from inception to December 31 or June 30 2019 2018 2017 2016 2015 2014 of that fiscal year, as applicable. This information is derived from Net Asset Value (in the Fund’s unaudited semi-annual financial statements and the 000s) (4) $343,977 $326,163 $368,703 $372,673 $372,980 $429,542 Number of units audited annual financial statements. The information in the outstanding (in 000s) (4) 32,557 32,683 34,635 35,774 38,419 42,122 following tables is based on prescribed regulations, and as a Management expense result, is not expected to add due to the increase/decrease in net ratio ("MER") (5) 1.46% 1.43% 1.43% 1.43% 1.42% 1.41% assets from operations being based on average units MER before waivers or absorptions (5) 1.46% 1.43% 1.43% 1.43% 1.42% 1.41% outstanding during the period and all other numbers being Trading expense based on actual units outstanding at the relevant point in time. ratio (6) 0.01% 0.01% 0.01% 0.02% 0.01% 0.01% Portfolio turnover rate (7) 8.83% 34.21% 19.49% 25.63% 12.83% 13.25% Net Asset Value per unit (4) $10.57 $9.98 $10.65 $10.42 $9.71 $10.20

2 HSBC Monthly Income Fund

HSBC Monthly Income Fund – Advisor Series – HSBC Monthly Income Fund – Premium Series Net Assets per Unit(1) – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $9.70 $10.39 $10.22 $9.56 $10.10 $9.76 beginning of period (2) $10.33 $11.02 $10.77 $10.03 $10.53 $10.17 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.16 0.30 0.30 0.32 0.34 0.33 Total revenue 0.17 0.33 0.32 0.33 0.35 0.35 Total expenses (0.09) (0.19) (0.19) (0.18) (0.19) (0.14) Total expenses (0.04) (0.09) (0.09) (0.09) (0.09) (0.09) Realized gains (losses) 0.04 0.17 0.13 0.19 0.01 – Realized gains (losses) 0.04 0.17 0.16 0.20 0.02 (0.02) Unrealized gains Unrealized gains (losses) 0.56 (0.67) 0.19 0.57 (0.46) 0.46 (losses) 0.59 (0.80) 0.15 0.60 (0.48) 0.41 Total increase Total increase (decrease) from (decrease) from operations (2) $0.67 $(0.39) $0.43 $0.90 $(0.30) $0.65 operations (2) $0.76 $(0.39) $0.54 $1.04 $(0.20) $0.65 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) (0.12) (0.06) (0.18) (0.04) (0.09) (0.10) dividends) (0.15) (0.08) (0.22) (0.05) (0.12) (0.12) From dividends – (0.11) – (0.16) (0.11) (0.10) From dividends – (0.15) – (0.19) (0.14) (0.13) Fromcapitalgains–(0.01)–––– From capital gains – (0.02) – – – – Return of capital – (0.05) (0.06) (0.04) (0.04) (0.04) Return of capital – (0.05) (0.08) (0.06) (0.04) (0.05) Total annual Total annual distributions (2,3) $(0.12) $(0.23) $(0.24) $(0.24) $(0.24) $(0.24) distributions (2,3) $(0.15) $(0.30) $(0.30) $(0.30) $(0.30) $(0.30) Net assets per unit, Net assets per unit, end of period (2) $10.25 $9.70 $10.39 $10.22 $9.56 $10.10 end of period (2) $10.94 $10.33 $11.02 $10.77 $10.03 $10.53

3 HSBC Monthly Income Fund

HSBC Monthly Income Fund – Manager Series HSBC Monthly Income Fund – Institutional – Net Assets per Unit(1) Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $10.37 $11.11 $10.90 $10.19 $10.76 $10.39 beginning of period (2) $8.66 $9.27 $9.21 $8.60 $9.13 $8.82 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.17 0.33 0.33 0.33 0.36 0.36 Total revenue 0.14 0.30 0.27 0.28 0.35 0.29 Total expenses (0.06) (0.13) (0.12) (0.13) (0.14) (0.10) Total expenses (0.01) (0.03) (0.04) (0.02) (0.03) – Realized gains (losses) 0.04 0.19 0.17 0.20 0.01 (0.02) Realized gains (losses) 0.04 0.15 0.13 0.16 (0.04) (0.04) Unrealized gains Unrealized gains (losses) 0.59 (0.55) 0.11 0.61 (0.38) 0.44 (losses) 0.33 (0.94) 0.18 0.44 (0.34) 0.46 Total increase Total increase (decrease) from (decrease) from operations (2) $0.74 $(0.16) $0.49 $1.01 $(0.15) $0.68 operations (2) $0.50 $(0.52) $0.54 $0.86 $(0.06) $0.71 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) (0.15) (0.08) (0.23) (0.05) (0.12) (0.12) dividends) (0.17) (0.09) (0.24) (0.05) (0.13) (0.13) From dividends – (0.15) – (0.20) (0.14) (0.14) From dividends – (0.17) – (0.22) (0.15) (0.15) Fromcapitalgains–(0.02)–––– From capital gains – (0.02) –––– Return of capital – (0.06) (0.08) (0.06) (0.04) (0.05) Return of capital – (0.05) (0.09) (0.06) (0.05) (0.05) Total annual Total annual distributions (2,3) $(0.15) $(0.31) $(0.31) $(0.31) $(0.30) $(0.31) distributions (2,3) $(0.17) $(0.33) $(0.33) $(0.33) $(0.33) $(0.33) Net assets per unit, Net assets per unit, end of period (2) $10.96 $10.37 $11.11 $10.90 $10.19 $10.76 end of period (2) $9.16 $8.66 $9.27 $9.21 $8.60 $9.13

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $169 $154 $477 $248 $251 $110 000s) (4) $606 $332 $115 $491 $758 $111 Number of units Number of units outstanding (in 000s) (4) 15 15 43 23 25 10 outstanding (in 000s) (4) 66 38 12 53 88 12 Management expense Management expense ratio ("MER") (5) 1.25% 1.22% 1.17% 1.28% 1.39% 0.90% ratio ("MER") (5) 0.18% 0.39% 0.44% 0.21% 0.32% 0.06% MER before waivers or MER before waivers or absorptions (5) 1.28% 1.22% 1.17% 1.28% 1.47% 0.90% absorptions (5) 0.18% 0.45% 0.44% 0.21% 0.32% 0.06% Trading expense ratio (6) 0.01% 0.01% 0.01% 0.02% 0.01% 0.01% Trading expense ratio (6) 0.01% 0.01% 0.01% 0.02% 0.01% 0.01% Portfolio turnover rate (7) 8.83% 34.21% 19.49% 25.63% 12.83% 13.25% Portfolio turnover rate (7) 8.83% 34.21% 19.49% 25.63% 12.83% 13.25% Net Asset Value per Net Asset Value per unit (4) $10.96 $10.37 $11.11 $10.90 $10.19 $10.76 unit (4) $9.16 $8.66 $9.27 $9.21 $8.60 $9.13 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC Monthly Income Fund

time. The increase/decrease in net assets from operations per unit is HSBC Investment Funds (Canada) Inc., for units of the Fund based on the weighted average number of units outstanding for the bought and held by unitholders. Finally, we used management relevant series over the financial period. fees to pay for additional marketing and distribution services to (3) Distributions are automatically reinvested in additional units of the the Fund. Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. For the six months ended June 30, 2019, approximately 45% of (4) This information is provided as at period-end of the year shown. the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the Fund, such distribution costs represented 49% of the the stated period and is expressed as an annualized percentage of management fees collected. This may vary by series, depending daily average net asset value during the period. In the year a series is on the assets invested in each of the series. established, the MER is annualized from the date of inception to the end of the period. The MER may vary from one mutual fund to Past Performance another and from one series of units to another. We may have The performance information shown assumes that all waived or absorbed certain fees and expenses otherwise payable by distributions made by the Fund in the periods shown were the Fund. The amount of expenses absorbed or waived is at the reinvested in additional securities of the Fund. The performance discretion of and can be terminated at any time by us. information does not take into account sales, redemption, The Fund may invest in units of other mutual funds and pooled distribution, optional charges or expenses you may be charged funds. You should note that in addition to the fees and expenses outside of the Fund or the effect of any income tax you may paid by the Fund, these other funds have their own operating expenses to pay. The Fund will effectively bear the operating have to pay as a result of your investment in the Fund that expenses of the other funds in proportion to its holdings in the other would have reduced returns or performance. The performance funds. However, the Fund will not invest in units of other funds if the of different fund series may vary for a number of reasons, Fund would be required to pay any management fees in respect of including differences in management fees and expenses. The such investments. In addition, the Fund will not make investments in Fund’s past performance does not necessarily indicate how it other funds if the Fund would be required to pay any sales or redemption fees in respect of such investments that duplicate a fee will perform in the future. payable by unitholders of the Fund. Further, the Fund will not invest in units of other funds if any sales or redemption fees are payable in Year-by-Year Returns respect of such investments. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The higher the Fund’s portfolio turnover rate in a period, the greater the Returns – Investor Series trading costs payable by the Fund in the period, and the greater the For the 12-month periods ended December 31 and the chance of an investor receiving taxable capital gains in the period. six-month period ended June 30, 2019 There is not necessarily a relationship between a high turnover rate 20% and the performance of the Fund. The rate is calculated based on 16.1% the lesser of purchases or sales of securities divided by the average 15% weighted market value of the portfolio securities, excluding 9.9% 10% short-term securities. 7.9% 7.1% 6.0% 5.9% 6.0% 4.5% Management Fees 5% For the six months ended June 30, 2019, the Fund paid us 0% management fees of $4,380,908. The management fee for each -1.6% -5% -2.5% series is calculated as a percentage of the daily net asset value -4.1% for that series. The fees are reduced, where required, so that -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 these fees do not duplicate fees payable by mutual funds in 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 which the Fund invests for the same service. The Fund’s management fees were used by us to pay costs for managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including

5 HSBC Monthly Income Fund

Returns – Advisor Series Returns – Institutional Series For the 12-month periods ended December 31 and the For the 12-month periods ended December 31 and the six-month period ended June 30, 2019 six-month period ended June 30, 2019 20% 25% 16.2% 15% 20% 17.4% 9.5% 15% 10% 8.1% 11.2% 6.9% 9.4% 6.0% 5.9% 6.0% 10% 7.5% 7.4% 7.4% 7.7% 5% 4.1% 5% 4.3% 0% 0% -1.5% -0.2% -5% -3.0% -4.4% -5% -2.4% -3.1% -10% -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 20% 16.7% Asset Mix 15% Percentage 10.5% of NAV 10% 8.5% 6.6% 6.5% 6.6% 7.4% 5.1% Canadian Equities 39.44% 5% Investment Funds 29.75% Corporate Bonds 24.86% 0% Government Bonds 4.69% -1.0% -1.9% -5% -3.5% Cash & Equivalents 1.26% Total 100.00% -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sector Mix Percentage Returns – Manager Series of NAV For the 12-month periods ended December 31 and the six-month period ended June 30, 2019 Investment Funds 29.75% Financials 26.34% 20% Energy 11.14% 15% Government Bonds 4.69% 10.1% Industrials 4.37% 10% 6.5% 6.5% 7.2% Materials 4.34% 4.8% 5% Consumer Staples 3.67% Communication Services 3.50% 0% Real Estate 3.37% Utilities 2.45% -5% -2.5% -4.0% Consumer Discretionary 2.17% -10% Asset Backed 1.92% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Information Technology 1.03% 2013 2014 2015 2016 2017 2018 2019 Cash & Equivalents 1.26% Total 100.00%

6 HSBC Monthly Income Fund

Top 25 Holdings Percentage of NAV

HSBC Mortgage Fund - Institutional Series 28.64% Toronto-Dominion Bank 3.01% Royal Bank of Canada 2.91% Enbridge Inc. 1.89% Canadian National Railway Co. 1.79% Government of Canada, 6.58%, 12/01/2026 1.79% Bank of Nova Scotia 1.72% Brookfield Asset Management Inc. 1.51% Suncor Energy Inc. 1.44% Manulife Financial Corp. 1.41% Bank of Montreal 1.35% TC Energy Corp. 1.31% Alimentation Couche-Tard Inc., Class B 1.22% Canadian Pacific Railway Ltd. 1.07% Nutrien Ltd. 1.07% Canada Housing Trust No. 1, 2.35%, 03/15/2028 1.05% Canadian Imperial Bank of Commerce 1.00% Shaw Communications Inc. 0.95% Dollarama Inc. 0.92% TELUS Corp. 0.80% Bank of Nova Scotia, 3.10%, 02/02/2028 0.78% Canadian Natural Resources Ltd. 0.76% Toronto-Dominion Bank, 3.22%, 07/25/2029 0.74% Loblaw Cos., Ltd. 0.72% Sun Life Financial Inc. 0.71% Total of Top 25 Holdings 60.56%

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, BMO Capital Markets, FTSE Global Debt Capital Markets Inc. Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC U.S. Dollar Monthly Income Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC U.S. Dollar Monthly Income Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the equities, the broad market’s strong performance was led by the Fund; we, us and our refer to HSBC Global Asset Management cyclical information technology sector, which posted a 27% (Canada) Limited; and the Fund refers to the HSBC U.S. Dollar return and accounted for 29% of the overall market Monthly Income Fund. performance.

We are the manager, trustee and primary investment advisor of In the fixed income portion of the portfolio, positive returns were the Fund. We have entered into a sub-advisory agreement with driven mainly by issue selection with a positive effect from HSBC Global Asset Management (USA) Inc. and Federated positioning in the banking subsector as well as energy. Sector Investment Counseling Inc., under which HSBC Global Asset allocation effects were also positive, driven by an overweight Management (USA) Inc. and Federated Investment position to banking within financials and an underweight Counseling Inc. provide investment advice and portfolio position in industrials. management services to the Fund. For an explanation of the relationship between us and the sub-advisors, see the section In the equity component of the portfolio, consumer staples was Selection of Sub-Advisors in the Fund’s Simplified Prospectus. the top-contributing sector and the utilities sector also added to performance. REITS were also a positive contributor and all four Introduction holdings delivered double-digit returns. The underperformance This Interim Management Report of Fund Performance contains of low-beta, high-quality and high-yield posed challenges to the financial highlights but does not contain either the semi-annual Fund’s high-yield dividend strategy. Seventeen of the Fund’s financial report or annual financial statements of the investment holdings raised their dividend payments over the period. fund. You may obtain a copy of the Fund’s semi-annual financial report or annual financial statements at your request, at no cost, Recent Developments by calling us toll-free at 1-888-390-3333, by visiting our website In the fixed income component of the Fund, the average credit at www.assetmanagement.hsbc.ca, by visiting the SEDAR rating is in line with the benchmark and remains overweight in website at www.sedar.com or by writing to us at: AA and BBB credits and underweight in As. The Fund is Corporate Secretary overweight in financials and underweight in industrials and HSBC Global Asset Management (Canada) Limited technology. 3rd Floor, 885 West Georgia Street Portfolio duration is only slightly underweight the benchmark, Vancouver, BC V6C 3E8 reflecting the fall in government yields so far this year. Along the You may also contact us using one of these methods to request a yield curve, the portfolio employs a barbell strategy and is copy of the Fund’s proxy voting policies and procedures, proxy underweight in the one-year to three-year and five-year to voting disclosure record or quarterly statement of investment seven-year segments of the curve. portfolio. On the equity side, the portfolio remains concentrated in Results of Operations consumer staples, integrated energy, telecommunication As of June 30, 2019, the Fund's net assets increased by 2.6% to services and utilities. These segments contain dividend-friendly $807.5 million from $787.2 million at the end of 2018. Positive stocks, enabling the Fund to provide investors with a high investment performance, partially offset by net withdrawals, dividend yield complemented by dividend growth. resulted in an overall increase in net asset value. Related Party Transactions Investment Performance We, on behalf of the Fund, in our role as fund manager, may, The HSBC U.S. Dollar Monthly Income Fund (Investor from time to time, enter into transactions or arrangements with Series) rose 7.23% for the six months ending June 30, 2019, or involving other members of the HSBC Group or other people while its benchmark rose 8.60% over the same period. The or companies related or connected to us or the Fund. To proceed benchmark is a weighted composite consisting of the Merrill with the transactions, the Fund relies on the positive Lynch US Corporate, A-Rated 1-10 Year Index (US$) (70%) and recommendation of the Fund’s Independent Review Committee. A Dow Jones US Select Dividend Net Index (US$) (30%). The condition of this positive recommendation is that the transactions Fund’s returns are after the deduction of fees and expenses, are performed in accordance with our policy on Related Party while the benchmark’s returns do not include any costs of Transactions. For more general information on persons related to investing. See the Past Performance section for the returns of the Fund and the types of potential transactions, see the Fund’s other series of the Fund, which may vary due to differences in Simplified Prospectus. management fees and expenses. The following is a summary of current transactions and The market reached new highs in 2019 as investor optimism arrangements with entities that are related to us or the Fund. increased amid talks of the US Federal Reserve lowering rates and hopes of a truce in the ongoing US-China trade war. Within

1 HSBC U.S. Dollar Monthly Income Fund

Manager, Trustee and Investment Advisor result, is not expected to add due to the increase/decrease in net We are the manager, trustee and primary investment advisor of assets from operations being based on average units the Fund. As manager, we manage the overall business and outstanding during the period and all other numbers being operations of the Fund. As trustee, we hold legal title to the based on actual units outstanding at the relevant point in time. property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio All figures are stated in US dollars. management services to the Fund. We receive a fee from the Fund for these services based on assets under management, HSBC U.S. Dollar Monthly Income Fund – calculated daily and paid monthly. Investor Series – Net Assets per Unit(1) We have entered into a sub-advisory agreement with HSBC Period ended June 30, 2019, and years ended December 31 Global Asset Management (USA) Inc. (an affiliate), under which June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, HSBC Global Asset Management (USA) Inc. provides 2019 2018 2017 2016 2015 2014 investment advice and portfolio management services to the Net assets per unit, Fund. We pay HSBC Global Asset Management (USA) Inc. an beginning of period (2) $10.08 $10.95 $10.89 $11.09 $11.30 $11.22 investment advisory fee from the Fund based on assets under Increase management, calculated daily and paid quarterly. For more (decrease) from information on our ability to hire sub-advisors, see the section operations: Total revenue 0.19 0.38 0.37 0.35 0.34 0.37 Organization and Management of the HSBC Mutual Funds in the Total expenses (0.09) (0.18) (0.19) (0.20) (0.20) (0.20) Fund’s Simplified Prospectus. Realized gains (losses) (0.02) 0.12 0.28 0.28 0.15 0.33 Unrealized gains Distribution Services (losses) 0.64 (0.79) 0.16 0.06 (0.26) 0.05 The Fund is distributed through us, HSBC Investment Funds Total increase (Canada) Inc. (our wholly owned subsidiary and affiliate) and (decrease) from HSBC Securities (Canada) Inc. (an affiliate) directly or through its operations (2) $0.72 $(0.47) $0.62 $0.49 $0.03 $0.55 division, HSBC InvestDirect. We pay distribution and servicing Distributions to fees to them based on the amount of assets held in the unitholders: investor’s account, and additionally, in some cases, on the From net investment income (excluding amount of the initial purchase. If you hold units of this Fund dividends) (0.09) (0.20) (0.18) (0.09) (0.09) (0.12) and/or other HSBC Mutual Funds in a registered plan with HSBC From dividends – – – (0.07) (0.08) (0.11) Investment Funds (Canada) Inc., they may charge you an annual From capital gains – (0.20) (0.36) (0.51) (0.08) (0.24) fee to cover the annual administration costs of the plan. We Return of capital – – – (0.01) (0.01) – permit HSBC Investment Funds (Canada) Inc. to collect these Total annual fees by redeeming sufficient units of the Fund with the highest distributions (2,3) $(0.09) $(0.40) $(0.54) $(0.68) $(0.26) $(0.47) market value in your registered plan. Net assets per unit, end of period (2) $10.71 $10.08 $10.95 $10.89 $11.09 $11.30 Purchases of Securities Underwritten by a Related Party During the period, the Fund invested in certain securities that Ratios and Supplemental Data were underwritten, in whole or in part, by entities that are a related party to us. To proceed with the transactions, the Fund June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 relied on the approval of the Fund’s Independent Review Committee by way of Standing Instruction. A condition of this Net Asset Value (in approval was that the transactions were performed in 000s) (4) $163,409 $156,472 $179,931 $183,231 $198,858 $231,522 Number of units accordance with our policy on Purchases of Securities outstanding (in 000s) (4) 15,258 15,527 16,431 16,826 17,935 20,482 Underwritten by a Related Party. Management expense ratio ("MER") (5) 1.74% 1.73% 1.73% 1.72% 1.73% 1.74% Financial Highlights MER before waivers or The following tables show selected key financial information absorptions (5) 1.74% 1.73% 1.73% 1.72% 1.73% 1.74% Trading expense about the Fund and are intended to help you understand the ratio (6) 0.02% 0.01% 0.02% 0.03% 0.02% 0.03% Fund’s financial performance for the six-month period ended Portfolio turnover June 30, 2019, and for the last five years ended December 31, rate (7) 33.13% 57.60% 63.98% 45.54% 43.16% 64.99% as applicable. In the year a fund is established, “period” Net Asset Value per represents the period from inception to December 31 or June 30 unit (4) $10.71 $10.08 $10.95 $10.89 $11.09 $11.30 of that fiscal year, as applicable. This information is derived from the Fund’s unaudited semi-annual financial statements and the audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a

2 HSBC U.S. Dollar Monthly Income Fund

HSBC U.S. Dollar Monthly Income Fund – HSBC U.S. Dollar Monthly Income Fund – Advisor Series – Net Assets per Unit(1) Premium Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $9.46 $10.35 $10.34 $10.57 $10.82 $10.74 beginning of period (2) $10.12 $10.99 $10.92 $11.12 $11.33 $11.23 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.18 0.36 0.35 0.33 0.32 0.35 Total revenue 0.19 0.38 0.37 0.35 0.34 0.37 Total expenses (0.11) (0.22) (0.22) (0.22) (0.22) (0.19) Total expenses (0.07) (0.15) (0.16) (0.16) (0.16) (0.16) Realized gains (losses) (0.01) 0.11 0.26 0.27 0.11 0.30 Realized gains (losses) (0.02) 0.12 0.28 0.29 0.15 0.33 Unrealized gains Unrealized gains (losses) 0.60 (0.74) 0.14 0.03 (0.07) (0.08) (losses) 0.64 (0.80) 0.16 0.04 (0.28) 0.03 Total increase Total increase (decrease) from (decrease) from operations (2) $0.66 $(0.49) $0.53 $0.41 $0.14 $0.38 operations (2) $0.74 $(0.45) $0.65 $0.52 $0.05 $0.57 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) (0.09) (0.20) (0.18) (0.09) (0.09) (0.12) dividends) (0.11) (0.23) (0.21) (0.11) (0.10) (0.13) From dividends – – – (0.07) (0.08) (0.11) From dividends – – – (0.08) (0.09) (0.13) From capital gains – (0.18) (0.34) (0.48) (0.07) (0.23) From capital gains – (0.20) (0.37) (0.51) (0.08) (0.25) Return of capital – – – (0.01) (0.01) – Return of capital – – – (0.01) (0.01) – Total annual Total annual distributions (2,3) $(0.09) $(0.38) $(0.52) $(0.65) $(0.25) $(0.46) distributions (2,3) $(0.11) $(0.43) $(0.58) $(0.71) $(0.28) $(0.51) Net assets per unit, Net assets per unit, end of period (2) $10.03 $9.46 $10.35 $10.34 $10.57 $10.82 end of period (2) $10.75 $10.12 $10.99 $10.92 $11.12 $11.33

3 HSBC U.S. Dollar Monthly Income Fund

HSBC U.S. Dollar Monthly Income Fund – HSBC U.S. Dollar Monthly Income Fund – Manager Series – Net Assets per Unit(1) Institutional Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $9.35 $10.29 $10.24 $10.48 $10.76 $10.68 beginning of period (2) $10.36 $11.23 $11.15 $11.32 $11.52 $11.40 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.18 0.31 0.33 0.33 0.33 0.37 Total revenue 0.20 0.39 0.38 0.36 0.35 0.37 Total expenses (0.06) (0.18) (0.14) (0.19) (0.17) (0.14) Total expenses – – (0.01) (0.01) (0.01) (0.01) Realized gains (losses) 0.03 0.11 0.22 0.20 0.15 0.38 Realized gains (losses) (0.02) 0.12 0.19 0.28 0.15 0.33 Unrealized gains Unrealized gains (losses) 0.42 (1.54) 0.09 0.57 (0.36) 0.32 (losses) 0.65 (0.82) 0.51 0.26 (0.28) (0.02) Total increase Total increase (decrease) from (decrease) from operations (2) $0.57 $(1.30) $0.50 $0.91 $(0.05) $0.93 operations (2) $0.83 $(0.31) $1.07 $0.89 $0.21 $0.67 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) (0.11) (0.24) (0.22) (0.11) (0.11) (0.13) dividends) (0.18) (0.36) (0.34) (0.18) (0.17) (0.20) From dividends – – – (0.09) (0.09) (0.13) From dividends – – – (0.14) (0.14) (0.19) From capital gains – (0.19) (0.34) (0.48) (0.08) (0.24) From capital gains – (0.21) (0.39) (0.53) (0.10) (0.26) Return of capital – – – (0.01) (0.01) – Return of capital – – – (0.01) (0.01) – Total annual Total annual distributions (2,3) $(0.11) $(0.43) $(0.56) $(0.69) $(0.29) $(0.50) distributions (2,3) $(0.18) $(0.57) $(0.73) $(0.86) $(0.42) $(0.65) Net assets per unit, Net assets per unit, end of period (2) $9.93 $9.35 $10.29 $10.24 $10.48 $10.76 end of period (2) $11.01 $10.36 $11.23 $11.15 $11.32 $11.52

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $95 $31 $755 $104 $83 $21 000s) (4) $10,686 $9,815 $11,399 $1,827 $3,490 $7,087 Number of units Number of units outstanding (in 000s) (4) 10 3 73 10 8 2 outstanding (in 000s) (4) 970 948 1,015 164 308 615 Management expense Management expense ratio ("MER") (5) 1.19% 1.74% 1.33% 1.76% 1.64% 1.23% ratio ("MER") (5) 0.06% 0.04% 0.07% 0.05% 0.04% 0.05% MER before waivers or MER before waivers or absorptions (5) 2.03% 1.84% 1.40% 2.73% 2.11% 1.23% absorptions (5) 0.06% 0.04% 0.07% 0.05% 0.04% 0.05% Trading expense ratio (6) 0.02% 0.01% 0.02% 0.03% 0.02% 0.03% Trading expense ratio (6) 0.02% 0.01% 0.02% 0.03% 0.02% 0.03% Portfolio turnover rate (7) 33.13% 57.60% 63.98% 45.54% 43.16% 64.99% Portfolio turnover rate (7) 33.13% 57.60% 63.98% 45.54% 43.16% 64.99% Net Asset Value per Net Asset Value per unit (4) $9.93 $9.35 $10.29 $10.24 $10.48 $10.76 unit (4) $11.01 $10.36 $11.23 $11.15 $11.32 $11.52 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC U.S. Dollar Monthly Income Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund; cash distributions are not available. information does not take into account sales, redemption, (4) This information is provided as at period-end of the year shown. distribution, optional charges or expenses you may be charged (5) Management expense ratio is based on total expenses (excluding outside of the Fund or the effect of any income tax you may distributions, commissions and other portfolio transaction costs) for have to pay as a result of your investment in the Fund that the stated period and is expressed as an annualized percentage of would have reduced returns or performance. The performance daily average net asset value during the period. In the year a series is of different fund series may vary for a number of reasons, established, the MER is annualized from the date of inception to the end of the period. The MER may vary from one mutual fund to including differences in management fees and expenses. The another and from one series of units to another. We may have Fund’s past performance does not necessarily indicate how it waived or absorbed certain fees and expenses otherwise payable by will perform in the future. the Fund. The amount of expenses absorbed or waived is at the discretion of and can be terminated at any time by us. Year-by-Year Returns (6) The trading expense ratio represents total commissions and other The following bar charts show the Fund’s performance for the portfolio transaction costs expressed as an annualized percentage of six-month period ended June 30, 2019, and for each of the daily average net asset value during the financial period. previous 12-month periods ended December 31. In percentage (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s terms, the bar charts show how much an investment made on portfolio advisor manages its portfolio investments. A portfolio the first day of each financial period would have grown or turnover rate of 100% is equivalent to the Fund buying and selling all decreased by the last day of each financial period. of the securities in its portfolio once in the course of the period. The higher the Fund’s portfolio turnover rate in a period, the greater the Returns – Investor Series trading costs payable by the Fund in the period, and the greater the For the 12-month periods ended December 31 and the chance of an investor receiving taxable capital gains in the period. six-month period ended June 30, 2019 There is not necessarily a relationship between a high turnover rate and the performance of the Fund. The rate is calculated based on 15% the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding 10% 6.8% 7.2% short-term securities. 5.4% 5.0% 5.6% 5% 4.3% Management Fees 0.3% For the six months ended June 30, 2019, the Fund paid us 0% management fees of $5,089,615. The management fee for each -5% series is calculated as a percentage of the daily net asset value -4.4% for that series. The fees are reduced, where required, so that -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 these fees do not duplicate fees payable by mutual funds in 2012 2013 2014 2015 2016 2017 2018 2019 which the Fund invests for the same service.

The Fund’s management fees were used by us to pay costs for Returns – Advisor Series For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 15% making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The 10% management fees also funded commission payments and other 7.0% 5.3% 5.0% 5.2% compensation (collectively “distribution costs”) to sales 5% 4.0% representatives and registered dealers and brokers, including 0.0% 0% HSBC Investment Funds (Canada) Inc., for units of the Fund bought and held by unitholders. Finally, we used management -5% fees to pay for additional marketing and distribution services to -4.8% the Fund. -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2013 2014 2015 2016 2017 2018 2019 For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for the Fund, such distribution costs represented 40% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC U.S. Dollar Monthly Income Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 15% Asset Mix 10% Percentage 7.2% 7.4% 5.7% 6.0% of NAV 5.4% 4.7% 5% Corporate Bonds 63.41% 0.7% US Equities 24.03% 0% International Equities 6.58% Government Bonds 3.78% -5% -4.0% Investment Funds 0.53% Cash & Equivalents 1.67% -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Total 100.00% 2012 2013 2014 2015 2016 2017 2018 2019

Returns – Manager Series Sector Mix For the 12-month periods ended December 31 and the Percentage six-month period ended June 30, 2019 of NAV 15% Financials 45.22% Energy 11.17% 10% Consumer Staples 9.28% 7.5% 5.9% 5.5% 6.0% Utilities 7.50% 5% 4.3% Real Estate 5.87% Communication Services 5.49% 0.1% 0% Health Care 5.01% Government Bonds 3.78% -5% Industrials 1.73% -5.1% Consumer Discretionary 1.72% -10% Materials 0.71% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2013 2014 2015 2016 2017 2018 2019 Investment Funds 0.53% Information Technology 0.32% Cash & Equivalents 1.67% Returns – Institutional Series Total 100.00% For the 12-month periods ended December 31 and the six-month period ended June 30, 2019 15%

10% 8.7% 7.2% 7.3% 8.1% 6.8% 6.1% 5% 2.0% 0%

-5% -2.7%

-10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2012 2013 2014 2015 2016 2017 2018 2019

6 HSBC U.S. Dollar Monthly Income Fund

Top 25 Holdings Percentage of NAV

AT&T Inc. 1.74% Philip Morris International Inc. 1.55% Dominion Energy Inc. 1.44% Exxon Mobil Corp. 1.35% Bank of America Corp., 3.46%, 03/15/2025 1.33% BP PLC 1.31% AbbVie Inc. 1.27% The Coca-Cola Co. 1.25% Chevron Corp. 1.18% Verizon Communications Inc. 1.18% The Southern Co. 1.16% Duke Energy Corp. 1.13% Bank of Nova Scotia, 2.45%, 09/19/2022 1.10% Kimberly-Clark Corp. 1.09% National Grid PLC 1.05% GlaxoSmithKline PLC 1.04% Bank of Montreal, 3.30%, 02/05/2024 1.02% PepsiCo Inc. 0.97% BP Capital Markets America Inc., 4.23%, 11/06/2028 0.96% Citigroup Inc., 3.52%, 10/27/2028 0.96% Merck & Co., Inc., 3.40%, 03/07/2029 0.92% PPL Corp. 0.92% Bank of America Corp., 3.71%, 04/24/2028 0.85% Altria Group Inc. 0.84% Macquarie Group Ltd., 3.19%, 11/28/2023 0.81% Total of Top 25 Holdings 28.42%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Canadian Balanced Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Canadian Balanced Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Although the Fund generated a strong positive return in the first Fund; we, us and our refer to HSBC Global Asset Management half of the year, it fell modestly short of its benchmark. A slightly (Canada) Limited; and the Fund refers to the HSBC Canadian overweight position in Canadian and global equities and Balanced Fund. underweight position in fixed income added positively to relative performance. The performance of the fixed income segment of We are the manager, trustee and primary investment advisor of the portfolio exceeded that of the broad bond market and also the Fund. contributed positively to overall Fund performance. However, Introduction these positive performance drivers were more than offset by This Interim Management Report of Fund Performance contains security selection within both the domestic and global equity financial highlights but does not contain either the semi-annual components of the Fund. This resulted in the Fund modestly financial report or annual financial statements of the investment underperforming against its benchmark for the six-month fund. You may obtain a copy of the Fund’s semi-annual financial period. report or annual financial statements at your request, at no cost, Recent Developments by calling us toll-free at 1-888-390-3333, by visiting our website While ongoing trade tensions are a headwind for both market at www.assetmanagement.hsbc.ca, by visiting the SEDAR sentiment and overall growth, we continue to see a low risk of website at www.sedar.com or by writing to us at: recession in North America for 2019 and 2020. Corporate Secretary We expect that both the global and Canadian economies will HSBC Global Asset Management (Canada) Limited improve as the year progresses. Equity markets continue to 3rd Floor, 885 West Georgia Street enjoy positive earnings and have relatively attractive valuations Vancouver, BC V6C 3E8 compared to bonds, and we foresee mid-single-digit gains in You may also contact us using one of these methods to request a both 2019 and 2020. copy of the Fund’s proxy voting policies and procedures, proxy The Fund continues to remain overweight in equities. In fixed voting disclosure record or quarterly statement of investment income, the strong rally in government bonds over the last three portfolio. quarters has left that sector extraordinarily expensive, as is seen Results of Operations by the Government of Canada 10-year bond yield falling from As of June 30, 2019, the Fund's net assets increased by 8.1% to 2.4% on September 30, 2018, to 1.50% on June 30, 2019. We $587.8 million from $543.8 million at the end of 2018. Positive continue to find better opportunities in corporate and investment performance, partially offset by net withdrawals, shorter-term securities. resulted in an overall increase in net asset value. Related Party Transactions Investment Performance We, on behalf of the Fund, in our role as fund manager, may, The HSBC Canadian Balanced Fund (Investor Series) rose 9.37% from time to time, enter into transactions or arrangements with for the six months ending June 30, 2019, while the benchmark or involving other members of the HSBC Group or other people rose 11.02% over the same period. The benchmark is a or companies related or connected to us or the Fund. To proceed weighted composite consisting of the FTSE Canada Universe with the transactions, the Fund relies on the positive Bond Index (35%), S&P/TSX Capped Composite Index (35%), recommendation of the Fund’s Independent Review Committee. A MSCI World Net Index (C$) (25%) and FTSE Canada 91-Day condition of this positive recommendation is that the transactions T-Bill Index (5%). The Fund’s returns are after the deduction of are performed in accordance with our policy on Related Party fees and expenses, while the benchmark’s returns do not Transactions. For more general information on persons related to include any costs of investing. See the Past Performance section the Fund and the types of potential transactions, see the Fund’s for the returns of other series of the Fund, which may vary due Simplified Prospectus. to differences in management fees and expenses. The following is a summary of current transactions and Following the sharp equity market downturn in 2018, sentiment arrangements with entities that are related to us or the Fund. was much more positive in the first half of 2019. Although the Manager, Trustee and Investment Advisor buoyant market sentiment from Q1 was challenged in Q2 by We are the manager, trustee and primary investment advisor of escalating US-China trade tensions, markets continued to push the Fund. As manager, we manage the overall business and higher. Reasonable valuations and corporate fundamentals also operations of the Fund. As trustee, we hold legal title to the proved supportive for both equity and debt corporate assets, property of the Fund on your behalf. As primary investment while government bond prices also rose (yields fell) in advisor, we provide investment advice and portfolio anticipation of lower central bank rates.

1 HSBC Canadian Balanced Fund management services to the Fund. We receive a fee from the HSBC Canadian Balanced Fund – Investor Fund for these services based on assets under management, Series – Net Assets per Unit(1) calculated daily and paid monthly. Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Distribution Services 2019 2018 2017 2016 2015 2014 The Fund is distributed through us, HSBC Investment Funds Net assets per unit, (Canada) Inc. (our wholly owned subsidiary and affiliate) and beginning of period (2) $27.46 $29.77 $28.05 $26.14 $26.04 $23.87 HSBC Securities (Canada) Inc. (an affiliate) directly or through its Increase division, HSBC InvestDirect. We pay distribution and servicing (decrease) from fees to them based on the amount of assets held in the operations: investor’s account, and additionally, in some cases, on the Total revenue 0.32 1.11 0.89 0.75 1.25 0.79 Total expenses (0.28) (0.57) (0.56) (0.52) (0.52) (0.49) amount of the initial purchase. If you hold units of this Fund Realized gains (losses) (0.01) 0.66 1.05 0.86 0.50 0.35 and/or other HSBC Mutual Funds in a registered plan with HSBC Unrealized gains Investment Funds (Canada) Inc., they may charge you an annual (losses) 2.56 (2.86) 0.58 1.17 (0.77) 1.82 fee to cover the annual administration costs of the plan. We Total increase permit HSBC Investment Funds (Canada) Inc. to collect these (decrease) from operations (2) $2.59 $(1.66) $1.96 $2.26 $0.46 $2.47 fees by redeeming sufficient units of the Fund with the highest market value in your registered plan. Distributions to unitholders: From net investment Purchases of Securities Underwritten by a Related Party income (excluding The Fund may invest in certain securities that are underwritten, dividends) – (0.07) (0.07) (0.06) (0.10) (0.12) in whole or in part, by entities that are a related party to us. To From dividends (0.03) (0.19) (0.18) (0.19) (0.18) (0.19) proceed with these transactions, the Fund relies on the approval From capital gains – (0.34) – (0.17) (0.05) – Return of capital – – – – – – of the Fund’s Independent Review Committee by way of Total annual Standing Instruction. A condition of this approval is that the distributions (2,3) $(0.03) $(0.60) $(0.25) $(0.42) $(0.33) $(0.31) transactions are performed in accordance with our policy on Net assets per unit, Purchases of Securities Underwritten by a Related Party. During end of period (2) $30.01 $27.46 $29.77 $28.05 $26.14 $26.04 the period, the Fund did not invest in any such securities. Financial Highlights Ratios and Supplemental Data The following tables show selected key financial information June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, about the Fund and are intended to help you understand the 2019 2018 2017 2016 2015 2014 Fund’s financial performance for the six-month period ended Net Asset Value (in June 30, 2019, and for the last five years ended December 31, 000s) (4) $360,590 $339,139 $381,244 $375,211 $380,633 $407,513 as applicable. In the year a fund is established, “period” Number of units outstanding (in 000s) (4) 12,017 12,349 12,807 13,379 14,560 15,652 represents the period from inception to December 31 or June 30 Management expense of that fiscal year, as applicable. This information is derived from ratio ("MER") (5) 2.00% 1.97% 1.98% 1.96% 1.97% 1.98% the Fund’s unaudited semi-annual financial statements and the MER before waivers or audited annual financial statements. The information in the absorptions (5) 2.00% 1.97% 1.98% 1.96% 1.97% 1.98% Trading expense following tables is based on prescribed regulations, and as a ratio (6) 0.02% 0.02% 0.02% 0.04% 0.05% 0.07% result, is not expected to add due to the increase/decrease in net Portfolio turnover assets from operations being based on average units rate (7) 9.19% 23.97% 19.95% 23.99% 32.21% 19.66% Net Asset Value per outstanding during the period and all other numbers being unit (4) $30.01 $27.46 $29.77 $28.04 $26.14 $26.04 based on actual units outstanding at the relevant point in time.

2 HSBC Canadian Balanced Fund

HSBC Canadian Balanced Fund – Advisor Series HSBC Canadian Balanced Fund – Premium – Net Assets per Unit(1) Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $14.27 $15.54 $14.70 $13.55 $13.51 $12.39 beginning of period (2) $13.68 $14.83 $13.98 $13.03 $12.96 $11.88 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.17 0.59 0.53 0.44 0.46 0.32 Total revenue 0.16 0.56 – 0.38 0.65 0.41 Total expenses (0.17) (0.37) (0.36) (0.32) (0.40) (0.25) Total expenses (0.10) (0.21) – (0.19) (0.18) (0.18) Realized gains (losses) – 0.34 0.51 0.51 0.18 0.22 Realized gains (losses) (0.01) 0.32 – 0.43 0.25 0.16 Unrealized gains Unrealized gains (losses) 1.24 (1.50) 0.44 0.66 (0.36) 0.83 (losses) 1.25 (1.45) 1.05 0.63 (0.53) 0.84 Total increase Total increase (decrease) from (decrease) from operations (2) $1.24 $(0.94) $1.12 $1.29 $(0.12) $1.12 operations (2) $1.30 $(0.78) $1.05 $1.25 $0.19 $1.23 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) – (0.04) (0.04) (0.03) (0.05) (0.06) dividends) – (0.06) (0.04) (0.03) (0.07) (0.07) From dividends (0.01) (0.10) (0.10) (0.11) (0.10) (0.10) From dividends (0.06) (0.15) (0.17) (0.16) (0.13) (0.15) From capital gains – (0.18) – (0.09) (0.02) – From capital gains – (0.18) – (0.10) (0.02) – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.01) $(0.32) $(0.14) $(0.23) $(0.17) $(0.16) distributions (2,3) $(0.06) $(0.39) $(0.21) $(0.29) $(0.22) $(0.22) Net assets per unit, Net assets per unit, end of period (2) $15.56 $14.27 $15.54 $14.70 $13.55 $13.51 end of period (2) $14.94 $13.68 $14.83 $13.98 $13.03 $12.96

3 HSBC Canadian Balanced Fund

HSBC Canadian Balanced Fund – Manager HSBC Canadian Balanced Fund – Institutional Series – Net Assets per Unit(1) Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015* 2014* 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $10.52 $11.40 $10.73 $10.00 $– $13.12 beginning of period (2) $15.21 $16.50 $15.55 $14.49 $14.42 $13.21 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.12 0.41 0.39 0.31 – 0.16 Total revenue 0.18 0.63 0.49 0.42 0.71 0.45 Total expenses (0.07) (0.10) (0.10) (0.09) – (0.06) Total expenses – (0.01) (0.01) (0.01) (0.01) (0.01) Realized gains (losses) – 0.26 0.30 0.32 – 0.16 Realized gains (losses) (0.01) 0.36 0.56 0.48 0.28 0.19 Unrealized gains Unrealized gains (losses) 1.05 (1.05) 0.26 0.56 – 0.74 (losses) 1.41 (1.61) 0.46 0.68 (0.46) 1.00 Total increase Total increase (decrease) from (decrease) from operations (2) $1.10 $(0.48) $0.85 $1.10 $– $1.00 operations (2) $1.58 $(0.63) $1.50 $1.57 $0.52 $1.63 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) – (0.06) (0.04) (0.03) – – dividends) – (0.12) (0.06) (0.04) (0.14) (0.09) From dividends (0.07) (0.15) (0.17) (0.14) – (0.08) From dividends (0.17) (0.30) (0.39) (0.35) (0.27) (0.34) From capital gains – (0.15) – (0.08) – – From capital gains – (0.23) – (0.13) (0.03) – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.07) $(0.36) $(0.21) $(0.25) $– $(0.08) distributions (2,3) $(0.17) $(0.65) $(0.45) $(0.52) $(0.44) $(0.43) Net assets per unit, Net assets per unit, end of period (2) $11.47 $10.52 $11.40 $10.73 $– $– end of period (2) $16.62 $15.21 $16.50 $15.55 $14.49 $14.42

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015* 2014* 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $510 $636 $777 $139 $– $– 000s) (4) $78,103 $71,038 $72,958 $105,033 $95,585 $93,659 Number of units Number of units outstanding (in 000s) (4) 44 60 68 13 – – outstanding (in 000s) (4) 4,699 4,669 4,422 6,755 6,596 6,497 Management expense Management expense ratio ("MER") (5) 1.31% 0.91% 0.94% 1.27% – 0.90% ratio ("MER") (5) 0.10% 0.07% 0.08% 0.06% 0.07% 0.09% MER before waivers or MER before waivers or absorptions (5) 1.31% 0.91% 0.94% 3.74% – 0.90% absorptions (5) 0.10% 0.07% 0.08% 0.06% 0.07% 0.09% Trading expense ratio (6) 0.02% 0.02% 0.02% 0.04% 0.05% 0.07% Trading expense ratio (6) 0.02% 0.02% 0.02% 0.04% 0.05% 0.07% Portfolio turnover rate (7) 9.19% 23.97% 19.95% 23.99% 32.21% 19.66% Portfolio turnover rate (7) 9.19% 23.97% 19.95% 23.99% 32.21% 19.66% Net Asset Value per Net Asset Value per unit (4) $11.47 $10.52 $11.40 $10.73 $– $– unit (4) $16.62 $15.21 $16.50 $15.55 $14.49 $14.42 * The Manager Series was fully redeemed during 2014 & 2015; (1) This information is derived from the Fund’s unaudited semi-annual however, it remains in offer as at period-end. financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC Canadian Balanced Fund

time. The increase/decrease in net assets from operations per unit is HSBC Investment Funds (Canada) Inc., for units of the Fund based on the weighted average number of units outstanding for the bought and held by unitholders. Finally, we used management relevant series over the financial period. fees to pay for additional marketing and distribution services to (3) Distributions are automatically reinvested in additional units of the the Fund. Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. For the six months ended June 30, 2019, approximately 45% of (4) This information is provided as at period-end of the year shown. the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the Fund, such distribution costs represented 48% of the the stated period and is expressed as an annualized percentage of management fees collected. This may vary by series, depending daily average net asset value during the period. In the year a series is on the assets invested in each of the series. established, the MER is annualized from the date of inception to the end of the period. The MER may vary from one mutual fund to Past Performance another and from one series of units to another. We may have The performance information shown assumes that all waived or absorbed certain fees and expenses otherwise payable by distributions made by the Fund in the periods shown were the Fund. The amount of expenses absorbed or waived is at the reinvested in additional securities of the Fund. The performance discretion of and can be terminated at any time by us. information does not take into account sales, redemption, The Fund may invest in units of other mutual funds and pooled distribution, optional charges or expenses you may be charged funds. You should note that in addition to the fees and expenses outside of the Fund or the effect of any income tax you may paid by the Fund, these other funds have their own operating expenses to pay. The Fund will effectively bear the operating have to pay as a result of your investment in the Fund that expenses of the other funds in proportion to its holdings in the other would have reduced returns or performance. The performance funds. However, the Fund will not invest in units of other funds if the of different fund series may vary for a number of reasons, Fund would be required to pay any management fees in respect of including differences in management fees and expenses. The such investments. In addition, the Fund will not make investments in Fund’s past performance does not necessarily indicate how it other funds if the Fund would be required to pay any sales or redemption fees in respect of such investments that duplicate a fee will perform in the future. payable by unitholders of the Fund. Further, the Fund will not invest in units of other funds if any sales or redemption fees are payable in Year-by-Year Returns respect of such investments. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The higher the Fund’s portfolio turnover rate in a period, the greater the Returns – Investor Series trading costs payable by the Fund in the period, and the greater the For the 12-month periods ended December 31 and the chance of an investor receiving taxable capital gains in the period. six-month period ended June 30, 2019 There is not necessarily a relationship between a high turnover rate 20% and the performance of the Fund. The rate is calculated based on 13.9% the lesser of purchases or sales of securities divided by the average 15% 12.5% weighted market value of the portfolio securities, excluding 10.4% 10% 8.9% 9.4% short-term securities. 7.2% 6.8% 7.0% 5% Management Fees 1.7% For the six months ended June 30, 2019, the Fund paid us 0% management fees of $3,965,596. The management fee for each -5% -3.6% series is calculated as a percentage of the daily net asset value -5.7% for that series. The fees are reduced, where required, so that -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 these fees do not duplicate fees payable by mutual funds in 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 which the Fund invests for the same service. The Fund’s management fees were used by us to pay costs for managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including

5 HSBC Canadian Balanced Fund

Returns – Advisor Series Returns – Institutional Series For the 12-month periods ended December 31 and the For the 12-month periods ended December 31 and the six-month period ended June 30, 2019 six-month period ended June 30, 2019 20% 20% 16.1% 14.0% 14.6% 15% 15% 12.5% 10.4% 10.1% 11.0% 10.4% 10% 9.2% 10% 9.3% 8.9% 9.1% 7.2% 6.9% 6.6% 5% 5% 3.6% 1.6% 0% 0% -1.7% -5% -3.6% -5% -3.8% -6.1% -10% -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009* 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

* The Advisor Series was fully redeemed during 2009. Summary of Investment Portfolio Returns – Premium Series As at June 30, 2019 For the 12-month periods ended December 31 and the six-month period ended June 30, 2019 Asset Mix 20% Percentage 14.5% 15% of NAV 11.0% 9.5% 9.7% Investment Funds 34.16% 10% 7.4% 7.6% Canadian Equities 33.58% Corporate Bonds 15.88% 5% 2.2% Government Bonds 15.71% 0% Cash & Equivalents 0.67% -5% -3.1% Total 100.00% -5.1% -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sector Mix Percentage of NAV Returns – Manager Series For the 12-month periods ended December 31 and the Investment Funds 34.16% six-month period ended June 30, 2019 Financials 19.24% Government Bonds 15.71% 20% Energy 8.59% 15.2% 15% 13.7% Materials 4.27% Industrials 4.02% 9.7% 10% 8.4% 8.1% 8.2% Consumer Staples 2.70% Consumer Discretionary 2.20% 5% Communication Services 2.18% 0% Information Technology 1.96% Real Estate 1.96% -5% -2.5% -4.6% Utilities 1.26% Asset Backed 1.08% -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Cash & Equivalents 0.67% 2009 2010 2011 2012 2013 2014* 2015* 2016* 2017 2018 2019 Total 100.00% * The Manager Series was fully redeemed during 2014. There were no unitholders for the full calendar year during 2015 and 2016.

6 HSBC Canadian Balanced Fund

Top 25 Holdings Percentage of NAV

HSBC Global Equity Fund - Institutional Series 26.04% HSBC Mortgage Fund - Institutional Series 3.76% HSBC Small Cap Growth Fund - Institutional Series 2.61% Royal Bank of Canada 2.47% Toronto-Dominion Bank 2.30% Government of Canada, 3.96%, 12/01/2036 1.93% Canadian National Railway Co. 1.67% Bank of Nova Scotia 1.60% Enbridge Inc. 1.52% Brookfield Asset Management Inc., Class A 1.41% Suncor Energy Inc. 1.36% Alimentation Couche-Tard Inc., Class B 1.19% Province of Ontario, 2.90%, 06/02/2049 1.17% Nutrien Ltd. 1.06% Manulife Financial Corp. 1.03% Canadian Pacific Railway Ltd. 1.01% Bank of Montreal 0.98% Government of Canada, 4.00%, 06/01/2041 0.98% Province of Ontario, 2.60%, 06/02/2027 0.97% TC Energy Corp. 0.97% Dollarama Inc. 0.90% HSBC Emerging Markets Debt Fund - Institutional Series 0.78% Province of Saskatchewan, 5.00%, 03/05/2037 0.78% CGI Inc. 0.76% Open Text Corp. 0.74% Total of Top 25 Holdings 59.99%

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, FTSE Global Debt Capital Markets Inc., Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Dividend Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Dividend Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the positions in health care, materials, information technology and Fund; we, us and our refer to HSBC Global Asset Management industrials. Although security selection was positive, with strong (Canada) Limited; and the Fund refers to the HSBC performers in the energy and consumer discretionary sectors, Dividend Fund. this was more than offset by underweight positioning in the information technology and health care sectors. We are the manager, trustee and primary investment advisor of the Fund. Recent Developments Introduction Global growth continues be positive, with the economy showing improving momentum in both the US and China despite This Interim Management Report of Fund Performance contains ongoing trade tensions. Strong employment, low interest rates financial highlights but does not contain either the semi-annual and reasonable corporate profits continue to provide a positive financial report or annual financial statements of the investment backdrop for growth in both the US and Canada. Although fund. You may obtain a copy of the Fund’s semi-annual financial growth is softer in the rest of the developed world, it is report or annual financial statements at your request, at no cost, supported by expansive policy that should prevent further by calling us toll-free at 1-888-390-3333, by visiting our website deterioration. at www.assetmanagement.hsbc.ca, by visiting the SEDAR website at www.sedar.com or by writing to us at: The Canadian economy has also been expanding positively from Corporate Secretary consumer spending and business investment, although it has HSBC Global Asset Management (Canada) Limited been negatively impacted by trade. Central banks in the US and 3rd Floor, 885 West Georgia Street Canada have strongly indicated that they are prepared to lower Vancouver, BC V6C 3E8 rates in response to a growth slowdown. We foresee one to two cuts in the US and likely stable rates in Canada over the next 12 You may also contact us using one of these methods to request a months. Inflation remains modest both globally and locally. copy of the Fund’s proxy voting policies and procedures, proxy voting disclosure record or quarterly statement of investment The outlook for Canadian equities remains relatively attractive portfolio. compared to bonds. Gains in earnings are moderating after a few very strong years, and we foresee mid-single-digit gains in Results of Operations both 2019 and 2020. As of June 30, 2019, the Fund's net assets increased by 13.3% to $770.3 million from $680.1 million at the end of 2018. Positive Related Party Transactions investment performance, partially offset by net withdrawals, We, on behalf of the Fund, in our role as fund manager, may, resulted in an overall increase in net asset value. from time to time, enter into transactions or arrangements with or involving other members of the HSBC Group or other people Investment Performance or companies related or connected to us or the Fund. To proceed The HSBC Dividend Fund (Investor Series) rose 14.01% for the with the transactions, the Fund relies on the positive six months ending June 30, 2019, while the benchmark recommendation of the Fund’s Independent Review Committee. A S&P/TSX Capped Composite Index rose 16.22% over the same condition of this positive recommendation is that the transactions period. The Fund’s returns are after the deduction of fees and are performed in accordance with our policy on Related Party expenses, while the benchmark’s returns do not include any Transactions. For more general information on persons related to costs of investing. See the Past Performance section for the returns of other series of the Fund, which may vary due to the Fund and the types of potential transactions, see the Fund’s differences in management fees and expenses. Simplified Prospectus. The market had two faces in the first half of 2019. After a strong The following is a summary of current transactions and start early in the year that reversed losses incurred in 2018, arrangements with entities that are related to us or the Fund. sentiment was challenged as escalating US-China trade tensions spurred volatility. However, continued global policy Manager, Trustee and Investment Advisor support and the expectation of significant rate cuts in the US We are the manager, trustee and primary investment advisor of continued to push equity markets higher. Over the first half of the Fund. As manager, we manage the overall business and the year, global equities gained 11.9%, US markets gained operations of the Fund. As trustee, we hold legal title to the 17.3% and the Canadian market posted a solid 16.2% return. property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio The Fund lagged its benchmark primarily due to underweight management services to the Fund. We receive a fee from the positions in health care and information technology. We Fund for these services based on assets under management, maintained overweight positions in energy, financials, consumer calculated daily and paid monthly. staples and consumer discretionary stocks and underweight

1 HSBC Dividend Fund

Distribution Services HSBC Dividend Fund – Investor Series – Net The Fund is distributed through us, HSBC Investment Funds Assets per Unit(1) (Canada) Inc. (our wholly owned subsidiary and affiliate) and Period ended June 30, 2019, and years ended December 31 HSBC Securities (Canada) Inc. (an affiliate) directly or through its June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, division, HSBC InvestDirect. We pay distribution and servicing 2019 2018 2017 2016 2015 2014 fees to them based on the amount of assets held in the Net assets per unit, investor’s account, and additionally, in some cases, on the beginning of period (2) $38.31 $43.26 $39.81 $33.04 $35.86 $32.68 amount of the initial purchase. If you hold units of this Fund Increase and/or other HSBC Mutual Funds in a registered plan with HSBC (decrease) from Investment Funds (Canada) Inc., they may charge you an annual operations: Total revenue 0.70 1.28 1.19 1.09 1.10 1.03 fee to cover the annual administration costs of the plan. We Total expenses (0.41) (0.82) (0.79) (0.69) (0.69) (0.68) permit HSBC Investment Funds (Canada) Inc. to collect these Realized gains (losses) 0.36 1.82 1.31 0.69 0.42 0.31 fees by redeeming sufficient units of the Fund with the highest Unrealized gains (losses) 4.73 (6.73) 2.06 6.00 (3.16) 2.83 market value in your registered plan. Total increase Purchases of Securities Underwritten by a Related Party (decrease) from operations (2) $5.38 $(4.45) $3.77 $7.09 $(2.33) $3.49 The Fund may invest in certain securities that are underwritten, in whole or in part, by entities that are a related party to us. To Distributions to unitholders: proceed with these transactions, the Fund relies on the approval From net investment of the Fund’s Independent Review Committee by way of income (excluding Standing Instruction. A condition of this approval is that the dividends) – – – – – – transactions are performed in accordance with our policy on From dividends (0.29) (0.42) (0.37) (0.43) (0.40) (0.30) From capital gains – – – – – – Purchases of Securities Underwritten by a Related Party. During Return of capital – – – – – – the period, the Fund did not invest in any such securities. Total annual distributions (2,3) $(0.29) $(0.42) $(0.37) $(0.43) $(0.40) $(0.30) Financial Highlights Net assets per unit, The following tables show selected key financial information end of period (2) $43.38 $38.31 $43.26 $39.81 $33.04 $35.86 about the Fund and are intended to help you understand the Fund’s financial performance for the six-month period ended June 30, 2019, and for the last five years ended December 31, Ratios and Supplemental Data as applicable. In the year a fund is established, “period” June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, represents the period from inception to December 31 or June 30 2019 2018 2017 2016 2015 2014 of that fiscal year, as applicable. This information is derived from Net Asset Value (in the Fund’s unaudited semi-annual financial statements and the 000s) (4) $462,165 $412,180 $497,698 $499,381 $464,478 $566,018 Number of units audited annual financial statements. The information in the outstanding (in 000s) (4) 10,654 10,759 11,505 12,543 14,059 15,785 following tables is based on prescribed regulations, and as a Management expense result, is not expected to add due to the increase/decrease in net ratio ("MER") (5) 1.96% 1.94% 1.95% 1.95% 1.95% 1.95% assets from operations being based on average units MER before waivers or absorptions (5) 1.96% 1.94% 1.95% 1.95% 1.95% 1.95% outstanding during the period and all other numbers being Trading expense based on actual units outstanding at the relevant point in time. ratio (6) 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% Portfolio turnover rate (7) 7.32% 16.61% 11.35% 8.90% 11.73% 12.85% Net Asset Value per unit (4) $43.38 $38.31 $43.26 $39.81 $33.04 $35.86

2 HSBC Dividend Fund

HSBC Dividend Fund – Advisor Series – Net HSBC Dividend Fund – Premium Series – Net Assets per Unit(1) Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $18.85 $21.38 $19.75 $16.43 $17.90 $16.30 beginning of period (2) $15.30 $17.27 $15.89 $13.19 $14.31 $13.04 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.34 0.63 0.58 0.54 0.55 0.51 Total revenue 0.28 0.51 0.48 0.44 0.44 0.41 Total expenses (0.25) (0.50) (0.48) (0.40) (0.40) (0.34) Total expenses (0.12) (0.23) (0.23) (0.20) (0.20) (0.19) Realized gains (losses) 0.18 0.91 0.57 0.37 0.19 0.17 Realized gains (losses) 0.14 0.72 0.54 0.28 0.16 0.13 Unrealized gains Unrealized gains (losses) 2.49 (3.13) 0.91 3.00 (1.65) 1.52 (losses) 1.85 (2.74) 0.82 2.48 (1.32) 1.01 Total increase Total increase (decrease) from (decrease) from operations (2) $2.76 $(2.09) $1.58 $3.51 $(1.31) $1.86 operations (2) $2.15 $(1.74) $1.61 $3.00 $(0.92) $1.36 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends (0.15) (0.20) (0.18) (0.21) (0.20) (0.14) From dividends (0.16) (0.26) (0.24) (0.25) (0.23) (0.20) Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.15) $(0.20) $(0.18) $(0.21) $(0.20) $(0.14) distributions (2,3) $(0.16) $(0.26) $(0.24) $(0.25) $(0.23) $(0.20) Net assets per unit, Net assets per unit, end of period (2) $21.28 $18.85 $21.38 $19.75 $16.43 $17.90 end of period (2) $17.32 $15.30 $17.27 $15.89 $13.19 $14.31

3 HSBC Dividend Fund

HSBC Dividend Fund – Manager Series – Net HSBC Dividend Fund – Institutional Series – Net Assets per Unit(1) Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $19.96 $22.55 $20.73 $17.27 $18.79 $17.12 beginning of period (2) $15.42 $17.42 $16.03 $13.30 $14.44 $13.16 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.38 0.68 0.63 0.57 0.59 0.54 Total revenue 0.28 0.52 0.48 0.44 0.45 0.42 Total expenses (0.10) (0.21) (0.21) (0.23) (0.21) (0.16) Total expenses – (0.01) (0.01) (0.01) (0.01) (0.01) Realized gains (losses) 0.18 0.92 0.84 0.40 0.15 0.16 Realized gains (losses) 0.14 0.74 0.55 0.28 0.15 0.12 Unrealized gains Unrealized gains (losses) 2.35 (3.78) 1.48 3.07 (1.86) 1.50 (losses) 1.91 (2.70) 0.85 2.53 (1.37) 1.12 Total increase Total increase (decrease) from (decrease) from operations (2) $2.81 $(2.39) $2.74 $3.81 $(1.33) $2.04 operations (2) $2.33 $(1.45) $1.87 $3.24 $(0.78) $1.65 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends (0.27) (0.45) (0.38) (0.43) (0.40) (0.36) From dividends (0.28) (0.49) (0.47) (0.46) (0.43) (0.39) Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.27) $(0.45) $(0.38) $(0.43) $(0.40) $(0.36) distributions (2,3) $(0.28) $(0.49) $(0.47) $(0.46) $(0.43) $(0.39) Net assets per unit, Net assets per unit, end of period (2) $22.60 $19.96 $22.55 $20.73 $17.27 $18.79 end of period (2) $17.46 $15.42 $17.42 $16.03 $13.30 $14.44

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $2,065 $1,488 $1,461 $453 $284 $191 000s) (4) $111,652 $99,118 $102,459 $86,051 $72,064 $61,881 Number of units Number of units outstanding (in 000s) (4) 91 75 65 22 16 10 outstanding (in 000s) (4) 6,394 6,427 5,883 5,369 5,417 4,286 Management expense Management expense ratio ("MER") (5) 0.93% 0.94% 0.97% 1.21% 1.12% 0.87% ratio ("MER") (5) 0.06% 0.04% 0.04% 0.04% 0.04% 0.05% MER before waivers or MER before waivers or absorptions (5) 0.93% 0.94% 0.97% 1.21% 1.12% 0.87% absorptions (5) 0.06% 0.04% 0.04% 0.04% 0.04% 0.05% Trading expense ratio (6) 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% Trading expense ratio (6) 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% Portfolio turnover rate (7) 7.32% 16.61% 11.35% 8.90% 11.73% 12.85% Portfolio turnover rate (7) 7.32% 16.61% 11.35% 8.90% 11.73% 12.85% Net Asset Value per Net Asset Value per unit (4) $22.60 $19.96 $22.55 $20.73 $17.27 $18.79 unit (4) $17.46 $15.42 $17.42 $16.03 $13.30 $14.44 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC Dividend Fund

time. The increase/decrease in net assets from operations per unit is HSBC Investment Funds (Canada) Inc., for units of the Fund based on the weighted average number of units outstanding for the bought and held by unitholders. Finally, we used management relevant series over the financial period. fees to pay for additional marketing and distribution services to (3) Distributions are automatically reinvested in additional units of the the Fund. Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. For the six months ended June 30, 2019, approximately 45% of (4) This information is provided as at period-end of the year shown. the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the Fund, such distribution costs represented 49% of the the stated period and is expressed as an annualized percentage of management fees collected. This may vary by series, depending daily average net asset value during the period. In the year a series is on the assets invested in each of the series. established, the MER is annualized from the date of inception to the end of the period. The MER may vary from one mutual fund to Past Performance another and from one series of units to another. We may have The performance information shown assumes that all waived or absorbed certain fees and expenses otherwise payable by distributions made by the Fund in the periods shown were the Fund. The amount of expenses absorbed or waived is at the reinvested in additional securities of the Fund. The performance discretion of and can be terminated at any time by us. information does not take into account sales, redemption, The Fund may invest in units of other mutual funds and pooled distribution, optional charges or expenses you may be charged funds. You should note that in addition to the fees and expenses outside of the Fund or the effect of any income tax you may paid by the Fund, these other funds have their own operating expenses to pay. The Fund will effectively bear the operating have to pay as a result of your investment in the Fund that expenses of the other funds in proportion to its holdings in the other would have reduced returns or performance. The performance funds. However, the Fund will not invest in units of other funds if the of different fund series may vary for a number of reasons, Fund would be required to pay any management fees in respect of including differences in management fees and expenses. The such investments. In addition, the Fund will not make investments in Fund’s past performance does not necessarily indicate how it other funds if the Fund would be required to pay any sales or redemption fees in respect of such investments that duplicate a fee will perform in the future. payable by unitholders of the Fund. Further, the Fund will not invest in units of other funds if any sales or redemption fees are payable in Year-by-Year Returns respect of such investments. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The higher the Fund’s portfolio turnover rate in a period, the greater the Returns – Investor Series trading costs payable by the Fund in the period, and the greater the For the 12-month periods ended December 31 and the chance of an investor receiving taxable capital gains in the period. six-month period ended June 30, 2019 There is not necessarily a relationship between a high turnover rate 40% and the performance of the Fund. The rate is calculated based on the lesser of purchases or sales of securities divided by the average 30% 28.1% weighted market value of the portfolio securities, excluding 21.9% 20% 17.5% short-term securities. 14.0% 10.1% 8.5% 10.7% 9.6% Management Fees 10% For the six months ended June 30, 2019, the Fund paid us 0% management fees of $5,113,632. The management fee for each -10% -7.5% -6.8% series is calculated as a percentage of the daily net asset value -10.5% for that series. The fees are reduced, where required, so that -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 these fees do not duplicate fees payable by mutual funds in 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 which the Fund invests for the same service. The Fund’s management fees were used by us to pay costs for managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including

5 HSBC Dividend Fund

0% 0%

-10% -7.4% -7.1% -10% -5.6% -5.0% -10.9% -8.8% -20% -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 40% Asset Mix 30% 22.6% Percentage 18.2% of NAV 20% 14.3% 9.1% 11.3% 10.2% Canadian Equities 97.24% 10% Investment Funds 1.44% 0% Cash & Equivalents 1.32% Total 100.00% -10% -6.9% -6.3% -10.0% -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Sector Mix 2011 2012 2013 2014 2015 2016 2017 2018 2019 Percentage of NAV

Returns – Manager Series Financials 33.38% For the 12-month periods ended December 31 and the Energy 18.87% six-month period ended June 30, 2019 Industrials 9.27% 40% Materials 9.22% 29.4% Consumer Discretionary 5.79% 30% 22.8% Consumer Staples 5.55% 20% 18.8% Communication Services 5.50% 14.6% Utilities 4.44% 11.3% 9.7% 11.9% 10.7% 10% Information Technology 2.71% Real Estate 2.51% 0% Investment Funds 1.44% -10% -6.4% -6.0% Cash & Equivalents 1.32% -9.6% Total 100.00% -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

6 HSBC Dividend Fund

Top 25 Holdings Percentage of NAV

Royal Bank of Canada 7.35% Toronto-Dominion Bank 6.91% Canadian National Railway Co. 4.74% Bank of Nova Scotia 4.56% Enbridge Inc. 4.19% Brookfield Asset Management Inc. 4.11% Suncor Energy Inc. 3.81% Bank of Montreal 3.34% Alimentation Couche-Tard Inc., Class B 3.23% Manulife Financial Corp. 3.23% Nutrien Ltd. 2.86% Canadian Pacific Railway Ltd. 2.84% TC Energy Corp. 2.82% Dollarama Inc. 2.44% TELUS Corp. 2.12% Canadian Natural Resources Ltd. 2.01% Shaw Communications Inc., Class B 1.96% Loblaw Cos., Ltd. 1.91% Sun Life Financial Inc. 1.89% Canadian Imperial Bank of Commerce 1.87% Brookfield Infrastructure Partners LP 1.83% Pembina Pipeline Corp. 1.81% CCL Industries Inc. 1.73% CGI Inc. 1.53% Canadian Utilities Ltd. 1.45% Total of Top 25 Holdings 76.54%

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Equity Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Equity Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the health care. The portfolio remains well diversified across and Fund; we, us and our refer to HSBC Global Asset Management within the major sectors of the market. Overweight sector (Canada) Limited; and the Fund refers to the HSBC Equity Fund. positions include energy, consumer and information technology, and underweight positions are held in the utilities, health care, We are the manager, trustee and primary investment advisor of real estate, materials and industrials sectors. the Fund. Introduction Recent Developments While the global macro picture is less robust than it has been This Interim Management Report of Fund Performance contains over the previous few years, it remains quite positive with strong financial highlights but does not contain either the semi-annual employment, low interest rates and reasonable corporate financial report or annual financial statements of the investment profits. We also expect accommodative central bank policy to fund. You may obtain a copy of the Fund’s semi-annual financial help mitigate any slowdown in the global economy. report or annual financial statements at your request, at no cost, by calling us toll-free at 1-888-390-3333, by visiting our website Canada’s economy is emerging from a soft patch as indicators at www.assetmanagement.hsbc.ca, by visiting the SEDAR have improved. Positive earnings – combined with relatively website at www.sedar.com or by writing to us at: attractive valuations compared to bonds – are contributing to a Corporate Secretary positive environment for Canadian equities. Although gains in HSBC Global Asset Management (Canada) Limited earnings are moderating after a few very strong years, we still 3rd Floor, 885 West Georgia Street foresee mid-single-digit gains in both 2019 and 2020 compared Vancouver, BC V6C 3E8 toa14%risein2018. You may also contact us using one of these methods to request a We are noticing an increasing divergence of performance and copy of the Fund’s proxy voting policies and procedures, proxy valuation in the market, with quality, defensive and high-growth voting disclosure record or quarterly statement of investment names reaching new highs while their cyclical counterparts portfolio. appear to have less support. However, the strategic positioning and management of the Fund remains unchanged. We continue Results of Operations to look for opportunities to achieve strong risk-adjusted returns As of June 30, 2019, the Fund's net assets increased by 12.9% with a disciplined valuation approach. to $554.7 million from $491.4 million at the end of 2018. Positive investment performance, partially offset by net withdrawals, Related Party Transactions resulted in an overall increase in net asset value. We, on behalf of the Fund, in our role as fund manager, may, from time to time, enter into transactions or arrangements with Investment Performance or involving other members of the HSBC Group or other people The HSBC Equity Fund (Investor Series) rose 14.55% for the six or companies related or connected to us or the Fund. To proceed months ending June 30, 2019, while the benchmark S&P/TSX with the transactions, the Fund relies on the positive Capped Composite Index rose 16.22% over the same period. recommendation of the Fund’s Independent Review Committee. A The Fund’s returns are after the deduction of fees and expenses, condition of this positive recommendation is that the transactions while the benchmark’s returns do not include any costs of are performed in accordance with our policy on Related Party investing. See the Past Performance section for the returns of Transactions. For more general information on persons related to other series of the Fund, which may vary due to differences in management fees and expenses. the Fund and the types of potential transactions, see the Fund’s Simplified Prospectus. The market had two faces in the first half of 2019. After a strong start early in the year that reversed losses incurred in 2018, The following is a summary of current transactions and sentiment was challenged as escalating US-China trade arrangements with entities that are related to us or the Fund. tensions spurred volatility. However, continued global policy support and the expectation of significant rate cuts in the US Manager, Trustee and Investment Advisor continued to push equity markets higher. Over the first half of We are the manager, trustee and primary investment advisor of the year, global equities gained 11.9%, the US market gained the Fund. As manager, we manage the overall business and 17.3% and the Canadian market posted a solid 16.2% return, led operations of the Fund. As trustee, we hold legal title to the by the information technology, health care, industrial and property of the Fund on your behalf. As primary investment utilities sectors. advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Although the Fund had a positive return, it lagged its benchmark Fund for these services based on assets under management, primarily due to the negative impact of security selection in the calculated daily and paid monthly. information technology sector and an underweight position in

1 HSBC Equity Fund

Distribution Services HSBC Equity Fund – Investor Series – Net The Fund is distributed through us, HSBC Investment Funds Assets per Unit(1) (Canada) Inc. (our wholly owned subsidiary and affiliate) and Period ended June 30, 2019, and years ended December 31 HSBC Securities (Canada) Inc. (an affiliate) directly or through its June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, division, HSBC InvestDirect. We pay distribution and servicing 2019 2018 2017 2016 2015 2014 fees to them based on the amount of assets held in the Net assets per unit, investor’s account, and additionally, in some cases, on the beginning of period (2) $48.88 $56.01 $51.29 $42.56 $45.80 $40.79 amount of the initial purchase. If you hold units of this Fund Increase and/or other HSBC Mutual Funds in a registered plan with HSBC (decrease) from Investment Funds (Canada) Inc., they may charge you an annual operations: Total revenue 0.84 1.56 1.36 1.25 1.29 1.19 fee to cover the annual administration costs of the plan. We Total expenses (0.52) (1.06) (1.03) (0.89) (0.89) (0.86) permit HSBC Investment Funds (Canada) Inc. to collect these Realized gains (losses) (0.21) 2.24 1.19 1.01 0.63 0.63 fees by redeeming sufficient units of the Fund with the highest Unrealized gains (losses) 7.09 (8.52) 3.29 7.38 (4.05) 4.16 market value in your registered plan. Total increase Purchases of Securities Underwritten by a Related Party (decrease) from operations (2) $7.20 $(5.78) $4.81 $8.75 $(3.02) $5.12 The Fund may invest in certain securities that are underwritten, in whole or in part, by entities that are a related party to us. To Distributions to unitholders: proceed with these transactions, the Fund relies on the approval From net investment of the Fund’s Independent Review Committee by way of income (excluding Standing Instruction. A condition of this approval is that the dividends) – – – – – – transactions are performed in accordance with our policy on From dividends (0.28) (0.45) (0.15) (0.16) (0.10) (0.06) From capital gains – (0.73) – – – – Purchases of Securities Underwritten by a Related Party. During Return of capital – – – – – – the period, the Fund did not invest in any such securities. Total annual distributions (2,3) $(0.28) $(1.18) $(0.15) $(0.16) $(0.10) $(0.06) Financial Highlights Net assets per unit, The following tables show selected key financial information end of period (2) $55.72 $48.88 $56.01 $51.29 $42.56 $45.80 about the Fund and are intended to help you understand the Fund’s financial performance for the six-month period ended June 30, 2019, and for the last five years ended December 31, Ratios and Supplemental Data as applicable. In the year a fund is established, “period” June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, represents the period from inception to December 31 or June 30 2019 2018 2017 2016 2015 2014 of that fiscal year, as applicable. This information is derived from Net Asset Value (in the Fund’s unaudited semi-annual financial statements and the 000s) (4) $160,605 $146,351 $178,143 $182,643 $169,326 $205,048 Number of units audited annual financial statements. The information in the outstanding (in 000s) (4) 2,883 2,994 3,181 3,561 3,978 4,477 following tables is based on prescribed regulations, and as a Management expense result, is not expected to add due to the increase/decrease in net ratio ("MER") (5) 1.97% 1.94% 1.96% 1.95% 1.96% 1.96% assets from operations being based on average units MER before waivers or absorptions (5) 1.97% 1.94% 1.96% 1.95% 1.96% 1.96% outstanding during the period and all other numbers being Trading expense based on actual units outstanding at the relevant point in time. ratio (6) 0.03% 0.03% 0.03% 0.04% 0.03% 0.03% Portfolio turnover rate (7) 7.54% 17.29% 13.59% 11.22% 9.57% 13.66% Net Asset Value per unit (4) $55.72 $48.88 $56.01 $51.29 $42.56 $45.80

2 HSBC Equity Fund

HSBC Equity Fund – Advisor Series – Net Assets HSBC Equity Fund – Premium Series – Net per Unit(1) Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $20.01 $23.04 $21.21 $16.92 $18.41 $16.39 beginning of period (2) $14.86 $17.03 $15.60 $12.95 $13.92 $12.37 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.34 0.67 0.56 0.50 0.54 0.48 Total revenue 0.26 0.48 0.42 0.77 0.40 0.36 Total expenses (0.26) (0.56) (0.53) (0.13) (0.39) (0.33) Total expenses (0.11) (0.23) (0.23) (0.39) (0.19) (0.19) Realized gains (losses) (0.10) 0.74 0.44 0.43 (0.01) 0.36 Realized gains (losses) (0.07) 0.67 0.38 0.62 0.17 0.15 Unrealized gains Unrealized gains (losses) 2.97 (4.51) 0.88 3.09 (1.24) 1.60 (losses) 2.15 (2.60) 1.01 1.86 (1.33) 1.11 Total increase Total increase (decrease) from (decrease) from operations (2) $2.95 $(3.66) $1.35 $3.89 $(1.10) $2.11 operations (2) $2.23 $(1.68) $1.58 $2.86 $(0.95) $1.43 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends (0.11) (0.18) (0.06) (0.07) (0.05) (0.03) From dividends (0.13) (0.21) (0.14) (0.13) (0.09) (0.07) Fromcapitalgains–(0.30)–––– From capital gains – (0.24) – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.11) $(0.48) $(0.06) $(0.07) $(0.05) $(0.03) distributions (2,3) $(0.13) $(0.45) $(0.14) $(0.13) $(0.09) $(0.07) Net assets per unit, Net assets per unit, end of period (2) $22.76 $20.01 $23.04 $21.21 $16.92 $18.41 end of period (2) $16.93 $14.86 $17.03 $15.60 $12.95 $13.92

3 HSBC Equity Fund

HSBC Equity Fund – Manager Series – Net HSBC Equity Fund – Institutional Series – Net Assets per Unit(1) Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $21.80 $25.02 $22.93 $19.12 $20.64 $18.32 beginning of period (2) $22.28 $25.54 $23.40 $19.41 $20.86 $18.48 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.39 0.70 0.62 0.56 0.58 0.54 Total revenue 0.38 0.72 0.63 0.58 0.59 0.54 Total expenses (0.12) (0.26) (0.25) (0.27) (0.25) (0.17) Total expenses (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) Realized gains (losses) (0.13) 0.98 0.69 0.46 0.24 0.27 Realized gains (losses) (0.10) 1.01 0.56 0.48 0.24 0.26 Unrealized gains Unrealized gains (losses) 2.51 (3.87) 1.94 3.38 (1.84) 1.86 (losses) 3.20 (3.83) 1.52 3.45 (2.12) 1.87 Total increase Total increase (decrease) from (decrease) from operations (2) $2.65 $(2.45) $3.00 $4.13 $(1.27) $2.50 operations (2) $3.47 $(2.11) $2.70 $4.50 $(1.30) $2.66 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends (0.26) (0.41) (0.31) (0.31) (0.25) (0.19) From dividends (0.37) (0.60) (0.54) (0.48) (0.41) (0.31) Fromcapitalgains–(0.37)–––– From capital gains – (0.42) – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $(0.26) $(0.78) $(0.31) $(0.31) $(0.25) $(0.19) distributions (2,3) $(0.37) $(1.02) $(0.54) $(0.48) $(0.41) $(0.31) Net assets per unit, Net assets per unit, end of period (2) $24.83 $21.80 $25.02 $22.93 $19.12 $20.64 end of period (2) $25.39 $22.28 $25.54 $23.40 $19.41 $20.86

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $683 $374 $412 $176 $157 $141 000s) (4) $357,149 $312,701 $325,917 $277,954 $111,747 $92,400 Number of units Number of units outstanding (in 000s) (4) 28 17 16 8 8 7 outstanding (in 000s) (4) 14,066 14,033 12,760 11,879 5,756 4,429 Management expense Management expense ratio ("MER") (5) 1.00% 1.07% 1.04% 1.31% 1.24% 0.85% ratio ("MER") (5) 0.06% 0.04% 0.05% 0.05% 0.05% 0.06% MER before waivers or MER before waivers or absorptions (5) 1.00% 1.07% 1.16% 1.38% 1.24% 0.85% absorptions (5) 0.06% 0.04% 0.05% 0.05% 0.05% 0.06% Trading expense ratio (6) 0.03% 0.03% 0.03% 0.04% 0.03% 0.03% Trading expense ratio (6) 0.03% 0.03% 0.03% 0.04% 0.03% 0.03% Portfolio turnover rate (7) 7.54% 17.29% 13.59% 11.22% 9.57% 13.66% Portfolio turnover Net Asset Value per rate (7) 7.54% 17.29% 13.59% 11.22% 9.57% 13.66% unit (4) $24.83 $21.80 $25.02 $22.93 $19.12 $20.64 Net Asset Value per unit (4) $25.39 $22.28 $25.54 $23.40 $19.41 $20.86 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC Equity Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the including differences in management fees and expenses. The end of the period. The MER may vary from one mutual fund to Fund’s past performance does not necessarily indicate how it another and from one series of units to another. We may have will perform in the future. waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the Year-by-Year Returns discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns – Investor Series higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 40% and the performance of the Fund. The rate is calculated based on 30% 26.2% the lesser of purchases or sales of securities divided by the average 20.9% weighted market value of the portfolio securities, excluding 20% 15.8% 12.4% 14.5% short-term securities. 11.3% 9.5% 10% 7.3% Management Fees 0% For the six months ended June 30, 2019, the Fund paid us management fees of $1,600,169. The management fee for each -10% -6.9% -11.4% -10.6% series is calculated as a percentage of the daily net asset value -20% for that series. The fees are reduced, where required, so that Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Returns – Advisor Series The Fund’s management fees were used by us to pay costs for For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 40% making brokerage arrangements for the purchase and sale of 30% 26.2% 25.8% the investment portfolio and providing other services. The management fees also funded commission payments and other 20% 15.9% 14.3% 11.3% 12.5% compensation (collectively “distribution costs”) to sales 9.0% 10% 7.3% representatives and registered dealers and brokers, including HSBC Investment Funds (Canada) Inc., for units of the Fund 0% bought and held by unitholders. Finally, we used management -10% -7.8% fees to pay for additional marketing and distribution services to -11.4% -11.1% -20% the Fund. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for the Fund, such distribution costs represented 49% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC Equity Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 40% Sector Mix 30% Percentage 21.6% of NAV 20% 16.5% 14.9% 13.0% Financials 32.34% 7.9% 10.1% 10% Energy 19.59% Materials 10.49% 0% Industrials 9.76% -10% -6.3% Consumer Discretionary 6.02% -10.9% -10.1% Information Technology 5.75% -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Consumer Staples 5.66% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Communication Services 4.96% Utilities 2.42% Returns – Manager Series Real Estate 1.42% Investment Funds 0.28% For the 12-month periods ended December 31 and the Cash & Equivalents 1.31% six-month period ended June 30, 2019 Total 100.00% 40% 30% 27.5% Top 25 Holdings 21.7% 20% 17.2% Percentage 13.7% 15.1% 12.5% 10.5% of NAV 10% 8.5% Royal Bank of Canada 7.26% 0% Toronto-Dominion Bank 6.73% Canadian National Railway Co. 4.89% -10% -6.2% Bank of Nova Scotia 4.69% -10.4% -9.8% Enbridge Inc. 4.44% -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Brookfield Asset Management Inc., Class A 4.12% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Suncor Energy Inc. 3.98% Alimentation Couche-Tard Inc., Class B 3.49% Returns – Institutional Series Nutrien Ltd. 3.10% For the 12-month periods ended December 31 and the Manulife Financial Corp. 3.01% six-month period ended June 30, 2019 Canadian Pacific Railway Ltd. 2.95% Bank of Montreal 2.88% 40% TC Energy Corp. 2.83% 30% 28.5% Dollarama Inc. 2.63% 23.2% CGI Inc. 2.24% 20% 18.1% Open Text Corp. 2.17% 13.4% 14.6% 15.6% 9.4% 11.6% Canadian Natural Resources Ltd. 2.11% 10% Canadian Imperial Bank of Commerce 1.94% 0% CCL Industries Inc. 1.87% Loblaw Cos., Ltd. 1.84% -10% -5.1% -9.7% -8.9% TELUS Corp. 1.83% Shaw Communications Inc., Class B 1.76% -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Imperial Oil Ltd. 1.58% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Pembina Pipeline Corp. 1.56% Sun Life Financial Inc. 1.51% Total of Top 25 Holdings 77.41%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Small Cap Growth Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Small Cap Growth Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the dollar lower relative to the Canadian dollar. Lower discount rates Fund; we, us and our refer to HSBC Global Asset Management have helped “longer-duration” equities, and high-quality (Canada) Limited; and the Fund refers to the HSBC Small Cap companies with longer secular growth runways have Growth Fund. outperformed. We are the manager, trustee and primary investment advisor of Most sectors in the S&P/TSX SmallCap Index participated in the the Fund. We have entered into a sub-advisory agreement with rebound alongside risky assets globally. The most notable Mawer Investment Management Limited and Triasima Portfolio exception was the energy sector, which continues to face a Management Inc. to provide portfolio management and significantly challenged environment in Canada. investment advisory services to the Fund. For an explanation of The Fund outperformed its benchmark, with stock selection and the relationship between us and the sub-advisors, see the sector allocation both contributing to performance. Stock section Selection of Sub-Advisors in the Fund’s Simplified selection in the energy and real estate sectors had the strongest Prospectus. impact on performance, while the Fund benefited from a lower Introduction exposure to the underperforming energy sector than This Interim Management Report of Fund Performance contains its benchmark. financial highlights but does not contain either the semi-annual Recent Developments financial report or annual financial statements of the investment The materials sector contributed the most to benchmark fund. You may obtain a copy of the Fund’s semi-annual financial performance during the period. The appeal of gold has improved report or annual financial statements at your request, at no cost, due to a fall in interest rates and a possible peak in the value of by calling us toll-free at 1-888-390-3333, by visiting our website the US dollar. However, the materials’ sector breadth is fairly at www.assetmanagement.hsbc.ca, by visiting the SEDAR deep and yielded handsome returns in subsectors that include website at www.sedar.com or by writing to us at: precious metals, copper and paper packaging. Corporate Secretary Conversely, the energy and health care sectors underperformed. HSBC Global Asset Management (Canada) Limited As the price of oil and natural gas declined, so did the stock 3rd Floor, 885 West Georgia Street price of energy sector names. Small cap investors appeared Vancouver, BC V6C 3E8 disinterested in this sector because of ongoing pipeline issues You may also contact us using one of these methods to request a and burdensome regulation. Capital has fled to other areas of copy of the Fund’s proxy voting policies and procedures, proxy the market, broadly speaking. voting disclosure record or quarterly statement of investment portfolio. Related Party Transactions We, on behalf of the Fund, in our role as fund manager, may, Results of Operations from time to time, enter into transactions or arrangements with As of June 30, 2019, the Fund's net assets increased by 11.4% or involving other members of the HSBC Group or other people to $210.0 million from $188.5 million at the end of 2018. Positive or companies related or connected to us or the Fund. To proceed investment performance, partially offset by net withdrawals, with the transactions, the Fund relies on the positive resulted in an overall increase in net asset value. recommendation of the Fund’s Independent Review Committee. A condition of this positive recommendation is that the transactions Investment Performance are performed in accordance with our policy on Related Party The HSBC Small Cap Growth Fund (Investor Series) rose 15.44% Transactions. For more general information on persons related to for the six months ending June 30, 2019, while the benchmark the Fund and the types of potential transactions, see the Fund’s S&P/TSX SmallCap Index (C$) rose 10.42% over the same Simplified Prospectus. period. The Fund’s returns are after the deduction of fees and expenses, while the benchmark’s returns do not include any The following is a summary of current transactions and costs of investing. See the Past Performance section for the arrangements with entities that are related to us or the Fund. returns of other series of the Fund, which may vary due to Manager, Trustee and Investment Advisor differences in management fees and expenses. We are the manager, trustee and primary investment advisor of Despite concerns over global growth and trade tensions the Fund. As manager, we manage the overall business and between the US and China, changing central bank rhetoric has operations of the Fund. As trustee, we hold legal title to the fuelled a 180-degree reversal in investor psychology and property of the Fund on your behalf. As primary investment propelled global equity markets higher since the beginning of advisor, we provide investment advice and portfolio the year. Most notably, the US Federal Reserve seemed to management services to the Fund. We receive a fee from the confirm the market’s expectation that it could consider rate cuts Fund for these services based on assets under management, later this year, causing a gold and bond rally and sending the US calculated daily and paid monthly.

1 HSBC Small Cap Growth Fund

Distribution Services HSBC Small Cap Growth Fund – Investor Series The Fund is distributed through us, HSBC Investment Funds – Net Assets per Unit(1) (Canada) Inc. (our wholly owned subsidiary and affiliate) and Period ended June 30, 2019, and years ended December 31 HSBC Securities (Canada) Inc. (an affiliate) directly or through its June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, division, HSBC InvestDirect. We pay distribution and servicing 2019 2018 2017 2016 2015 2014 fees to them based on the amount of assets held in the Net assets per unit, investor’s account, and additionally, in some cases, on the beginning of period (2) $52.09 $62.88 $59.96 $50.51 $49.22 $46.91 amount of the initial purchase. If you hold units of this Fund Increase and/or other HSBC Mutual Funds in a registered plan with HSBC (decrease) from Investment Funds (Canada) Inc., they may charge you an annual operations: Total revenue 0.55 1.14 1.20 1.08 1.14 1.03 fee to cover the annual administration costs of the plan. We Total expenses (0.63) (1.37) (1.35) (1.23) (1.14) (1.15) permit HSBC Investment Funds (Canada) Inc. to collect these Realized gains (losses) 2.84 2.67 3.25 3.74 5.07 2.91 fees by redeeming sufficient units of the Fund with the highest Unrealized gains (losses) 5.33 (11.42) (0.34) 5.81 (3.75) (0.91) market value in your registered plan. Total increase Purchases of Securities Underwritten by a Related Party (decrease) from operations (2) $8.09 $(8.98) $2.76 $9.40 $1.32 $1.88 The Fund may invest in certain securities that are underwritten, in whole or in part, by entities that are a related party to us. To Distributions to unitholders: proceed with these transactions, the Fund relies on the approval From net investment of the Fund’s Independent Review Committee by way of income (excluding Standing Instruction. A condition of this approval is that the dividends) – – – – – – transactions are performed in accordance with our policy on From dividends – – – – – – From capital gains – 1.55 – – – – Purchases of Securities Underwritten by a Related Party. During Return of capital – – – – – – the period, the Fund did not invest in any such securities. Total annual distributions (2,3) $– $1.55 $– $– $– $– Financial Highlights Net assets per unit, The following tables show selected key financial information end of period (2) $60.13 $52.09 $62.88 $59.96 $50.51 $49.22 about the Fund and are intended to help you understand the Fund’s financial performance for the six-month period ended June 30, 2019, and for the last five years ended December 31, Ratios and Supplemental Data as applicable. In the year a fund is established, “period” June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, represents the period from inception to December 31 or June 30 2019 2018 2017 2016 2015 2014 of that fiscal year, as applicable. This information is derived from Net Asset Value (in the Fund’s unaudited semi-annual financial statements and the 000s) (4) $126,498 $115,161 $150,496 $157,535 $139,976 $167,617 Number of units audited annual financial statements. The information in the outstanding (in 000s) (4) 2,104 2,211 2,394 2,627 2,771 3,405 following tables is based on prescribed regulations, and as a Management expense result, is not expected to add due to the increase/decrease in net ratio ("MER") (5) 2.28% 2.25% 2.26% 2.24% 2.26% 2.25% assets from operations being based on average units MER before waivers or absorptions (5) 2.28% 2.25% 2.26% 2.24% 2.26% 2.25% outstanding during the period and all other numbers being Trading expense based on actual units outstanding at the relevant point in time. ratio (6) 0.08% 0.16% 0.17% 0.16% 0.15% 0.19% Portfolio turnover rate (7) 15.31% 43.98% 39.30% 39.70% 31.36% 41.09% Net Asset Value per unit (4) $60.13 $52.09 $62.88 $59.96 $50.51 $49.22

2 HSBC Small Cap Growth Fund

HSBC Small Cap Growth Fund – Advisor Series HSBC Small Cap Growth Fund – Premium – Net Assets per Unit(1) Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $20.36 $24.75 $23.72 $20.08 $19.66 $18.75 beginning of period (2) $23.42 $28.30 $26.84 $22.49 $21.80 $20.66 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.21 0.44 0.46 0.43 0.44 0.40 Total revenue 0.25 0.51 0.54 0.49 0.51 0.46 Total expenses (0.30) (0.65) (0.65) (0.59) (0.54) (0.47) Total expenses (0.22) (0.47) (0.46) (0.42) (0.38) (0.39) Realized gains (losses) 1.07 1.05 1.33 1.48 2.05 1.08 Realized gains (losses) 1.28 1.22 1.44 1.69 2.28 1.26 Unrealized gains Unrealized gains (losses) 2.19 (4.17) (0.25) 2.09 (1.83) (0.73) (losses) 2.39 (5.32) (0.21) 2.56 (1.70) (0.77) Total increase Total increase (decrease) from (decrease) from operations (2) $3.17 $(3.33) $0.89 $3.41 $0.12 $0.28 operations (2) $3.70 $(4.06) $1.31 $4.32 $0.71 $0.56 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends –––––– From dividends – – – – – – Fromcapitalgains–(0.66)–––– From capital gains – (0.85) – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $–$(0.66)$–$–$–$–distributions (2,3) $– $(0.85) $– $– $– $– Net assets per unit, Net assets per unit, end of period (2) $23.45 $20.36 $24.75 $23.72 $20.08 $19.66 end of period (2) $27.11 $23.42 $28.30 $26.84 $22.49 $21.80

3 HSBC Small Cap Growth Fund

HSBC Small Cap Growth Fund – Manager HSBC Small Cap Growth Fund – Institutional Series – Net Assets per Unit(1) Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $25.49 $30.86 $29.11 $24.26 $23.39 $22.05 beginning of period (2) $25.53 $30.88 $28.81 $23.94 $22.83 $21.29 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.27 0.56 0.59 0.53 0.55 0.48 Total revenue 0.27 0.57 0.58 0.52 0.55 0.47 Total expenses (0.17) (0.36) (0.34) (0.31) (0.29) (0.27) Total expenses (0.01) (0.02) (0.02) (0.02) (0.02) (0.02) Realized gains (losses) 1.38 1.30 1.55 1.83 2.44 1.34 Realized gains (losses) 1.41 1.34 1.59 1.75 2.30 1.36 Unrealized gains Unrealized gains (losses) 2.67 (5.44) (0.33) 2.79 (1.76) (0.28) (losses) 2.58 (5.82) (0.01) 2.99 (2.03) (0.16) Total increase Total increase (decrease) from (decrease) from operations (2) $4.15 $(3.94) $1.47 $4.84 $0.94 $1.27 operations (2) $4.25 $(3.93) $2.14 $5.24 $0.80 $1.65 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends –––––– From dividends – – – – – – Fromcapitalgains–(1.10)–––– From capital gains – (1.37) – (0.24) – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $–$(1.10)$–$–$–$–distributions (2,3) $– $(1.37) $– $(0.24) $– $– Net assets per unit, Net assets per unit, end of period (2) $29.58 $25.49 $30.86 $29.11 $24.26 $23.39 end of period (2) $29.79 $25.53 $30.88 $28.81 $23.94 $22.83

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $1,297 $1,220 $1,678 $1,822 $1,398 $1,708 000s) (4) $49,290 $42,544 $45,283 $43,930 $43,273 $35,048 Number of units Number of units outstanding (in 000s) (4) 44 48 54 63 58 73 outstanding (in 000s) (4) 1,655 1,667 1,467 1,525 1,807 1,535 Management expense Management expense ratio ("MER") (5) 1.24% 1.20% 1.18% 1.16% 1.19% 1.13% ratio ("MER") (5) 0.10% 0.08% 0.07% 0.06% 0.07% 0.08% MER before waivers or MER before waivers or absorptions (5) 1.24% 1.20% 1.18% 1.16% 1.19% 1.13% absorptions (5) 0.10% 0.08% 0.07% 0.06% 0.07% 0.08% Trading expense ratio (6) 0.08% 0.16% 0.17% 0.16% 0.15% 0.19% Trading expense ratio (6) 0.08% 0.16% 0.17% 0.16% 0.15% 0.19% Portfolio turnover rate (7) 15.31% 43.98% 39.30% 39.70% 31.36% 41.09% Portfolio turnover rate (7) 15.31% 43.98% 39.30% 39.70% 31.36% 41.09% Net Asset Value per Net Asset Value per unit (4) $29.58 $25.49 $30.86 $29.11 $24.26 $23.39 unit (4) $29.79 $25.53 $30.88 $28.81 $23.94 $22.83 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC Small Cap Growth Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the including differences in management fees and expenses. The end of the period. The MER may vary from one mutual fund to Fund’s past performance does not necessarily indicate how it another and from one series of units to another. We may have will perform in the future. waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the Year-by-Year Returns discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns – Investor Series higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 80% and the performance of the Fund. The rate is calculated based on 60% 50.7% the lesser of purchases or sales of securities divided by the average 45.9% weighted market value of the portfolio securities, excluding 40% 24.7% short-term securities. 18.7% 20% 15.4% 15.4% Management Fees 4.9% 2.6% 4.9% 0% For the six months ended June 30, 2019, the Fund paid us -0.8% management fees of $1,463,520. The management fee for each -20% -14.6% series is calculated as a percentage of the daily net asset value -40% for that series. The fees are reduced, where required, so that Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Returns – Advisor Series The Fund’s management fees were used by us to pay costs for For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 80% making brokerage arrangements for the purchase and sale of 60% 50.7% the investment portfolio and providing other services. The 45.9% management fees also funded commission payments and other 40% 24.6% compensation (collectively “distribution costs”) to sales 18.1% 20% 15.3% 15.2% representatives and registered dealers and brokers, including 4.9% 2.1% 4.3% HSBC Investment Funds (Canada) Inc., for units of the Fund 0% -0.8% bought and held by unitholders. Finally, we used management -20% -15.0% fees to pay for additional marketing and distribution services to -40% the Fund. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for the Fund, such distribution costs represented 38% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC Small Cap Growth Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 80% Sector Mix 60% 46.7% Percentage of NAV 40% Industrials 19.75% 16.0% 19.4% 15.8% 20% Materials 15.88% 5.5% 3.2% 5.4% 0% Real Estate 12.99% -0.2% Information Technology 11.70% -20% -14.1% Consumer Discretionary 11.14% Financials 8.98% -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Energy 8.19% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Communication Services 2.95% Consumer Staples 2.93% Returns – Manager Series Health Care 0.79% For the 12-month periods ended December 31 and the Utilities 0.40% six-month period ended June 30, 2019 Cash & Equivalents 4.30% Total 100.00% 80%

60% 47.6% Top 25 Holdings 40% Percentage 26.0% 20.0% of NAV 20% 16.6% 16.0% 6.1% 6.0% Boyd Group Income Fund 4.64% 0.3% 3.7% 0% MTY Food Group Inc. 4.14% Enghouse Systems Ltd. 3.96% -20% -13.7% Stella-Jones Inc. 3.89% -40% Altus Group Ltd. 3.63% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Government of Canada, 1.67%, 08/08/2019 3.23% 2009* 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Morneau Shepell Inc. 2.94% * The Manager Series was fully redeemed during 2009. NFI Group Inc. 2.54% The Descartes Systems Group Inc. 2.52% Returns – Institutional Series Parkland Fuel Corp. 2.35% For the 12-month periods ended December 31 and the Equitable Group Inc. 2.27% Mainstreet Equity Corp. 2.24% six-month period ended June 30, 2019 Winpak Ltd. 2.17% 80% Cogeco Inc. 2.16% Richelieu Hardware Ltd. 2.00% 60% 53.8% 49.1% Sleep Country Canada Holdings Inc. 2.00% 40% Recipe Unlimited Corp. 1.95% 27.4% 17.9% 21.3% Canadian Western Bank 1.85% 20% 16.7% 7.2% 7.2% Richards Packaging Income Fund 1.77% 1.4% 4.9% 0% Jamieson Wellness Inc. 1.75% FirstService Corp. 1.59% -20% -12.7% Stantec Inc. 1.56% Colliers International Group Inc. 1.51% -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 New Look Vision Group Inc. 1.50% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Absolute Software Corp. 1.36% Total of Top 25 Holdings 61.52%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Global Equity Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Global Equity Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the its planned rate hikes and possibly cut rates. Meanwhile, Fund; we, us and our refer to HSBC Global Asset Management European stocks performed well as the European Central Bank (Canada) Limited; and the Fund refers to the HSBC Global signalled it might consider monetary easing if the inflation Equity Fund. outlook fails to improve.

We are the manager, trustee and primary investment advisor of The Fund underperformed against its benchmark, with asset the Fund. We have entered into a sub-advisory agreement with allocation contributing to performance and stock selection HSBC Global Asset Management (UK) Limited, under which weighing on performance. On a sector basis, overweight HSBC Global Asset Management (UK) Limited provides allocations to industrials and consumer discretionary coupled investment advice and portfolio management services to the with an underweight exposure to health care contributed to Fund. For an explanation of the relationship between us and the performance. Conversely, an underweight allocation to sub-advisor, see the section Selection of Sub-Advisors in the information technology weighed on performance. On a country Fund’s Simplified Prospectus. basis, overweight allocations to France, Italy and the Netherlands contributed to performance, while an overweight Introduction allocation to Japan and an underweight exposure to the US This Interim Management Report of Fund Performance contains weighed on performance. financial highlights but does not contain either the semi-annual financial report or annual financial statements of the investment Recent Developments fund. You may obtain a copy of the Fund’s semi-annual financial The Fund uses a systematic investment approach known as the report or annual financial statements at your request, at no cost, HSBC Economic Scale Equity strategy to invest in companies by calling us toll-free at 1-888-390-3333, by visiting our website according to their economic scale. The strategy incorporates a at www.assetmanagement.hsbc.ca, by visiting the SEDAR rebalancing process to evaluate new stock weights in June website at www.sedar.com or by writing to us at: based on each company’s contribution to Gross National Product, and then rebalances each constituent stock back to Corporate Secretary those weights in December. The strategy aims to take HSBC Global Asset Management (Canada) Limited advantage of excess volatility in market prices to add excess 3rd Floor, 885 West Georgia Street return while delivering the equity market premium. In the June Vancouver, BC V6C 3E8 2019 rebalance, there were 127 additions and 331 deletions.

You may also contact us using one of these methods to request a The starting universe for the portfolio construction of the HSBC copy of the Fund’s proxy voting policies and procedures, proxy Economic Scale Equity strategy was reviewed and amended in voting disclosure record or quarterly statement of investment June 2019. Going forward, at the June annual rebalance, the portfolio. strategy will use the MSCI ACWI universe as the starting investable universe rather than a bespoke one. The investment Results of Operations process has not changed and will remain the same. As of June 30, 2019, the Fund's net assets increased by 7.7% to $731.7 million from $679.7 million at the end of 2018. Positive Related Party Transactions investment performance, partially offset by net withdrawals, We, on behalf of the Fund, in our role as fund manager, may, from time to time, enter into transactions or arrangements with resulted in an overall increase in net asset value. or involving other members of the HSBC Group or other people Investment Performance or companies related or connected to us or the Fund. To proceed The HSBC Global Equity Fund (Investor Series) rose 8.56% for with the transactions, the Fund relies on the positive the six months ending June 30, 2019, while the benchmark recommendation of the Fund’s Independent Review Committee. A condition of this positive recommendation is that the transactions MSCI World Net Index (C$) rose 11.92% over the same period. are performed in accordance with our policy on Related Party The Fund’s returns are after the deduction of fees and expenses, Transactions. For more general information on persons related to while the benchmark’s returns do not include any costs of the Fund and the types of potential transactions, see the Fund’s investing. See the Past Performance section for the returns of Simplified Prospectus. other series of the Fund, which may vary due to differences in management fees and expenses. The following is a summary of current transactions and arrangements with entities that are related to us or the Fund. Global equity markets gained over the first half of the year, which was dominated by trade tensions and the central banks’ Manager, Trustee and Investment Advisor shifts towards a dovish stance. In the US, stocks were boosted We are the manager, trustee and primary investment advisor of by the US Federal Reserve’s announcement that it would adjust the Fund. As manager, we manage the overall business and operations of the Fund. As trustee, we hold legal title to the

1 HSBC Global Equity Fund property of the Fund on your behalf. As primary investment assets from operations being based on average units advisor, we provide investment advice and portfolio outstanding during the period and all other numbers being management services to the Fund. We receive a fee from the based on actual units outstanding at the relevant point in time. Fund for these services based on assets under management, calculated daily and paid monthly. HSBC Global Equity Fund – Investor Series – We have entered into a sub-advisory agreement with HSBC Net Assets per Unit(1) Global Asset Management (UK) Limited (an affiliate), under Period ended June 30, 2019, and years ended December 31 which HSBC Global Asset Management (UK) Limited provides June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, investment advice and portfolio management services to the 2019 2018 2017 2016 2015 2014 Fund. We pay HSBC Global Asset Management (UK) Limited an Net assets per unit, investment advisory fee from the Fund based on assets under beginning of period (2) $13.73 $15.21 $13.78 $13.20 $12.58 $11.13 management, calculated daily and paid quarterly. For more Increase information on our ability to hire sub-advisors, see the section (decrease) from Organization and Management of the HSBC Mutual Funds in the operations: Total revenue 0.27 0.40 0.38 0.31 0.32 0.26 Fund’s Simplified Prospectus. Total expenses (0.10) (0.22) (0.21) (0.18) (0.22) (0.30) Realized gains (losses) 0.17 0.50 0.54 0.10 2.79 1.44 Distribution Services Unrealized gains The Fund is distributed through us, HSBC Investment Funds (losses) 0.85 (1.48) 1.08 0.41 (1.25) 0.16 (Canada) Inc. (our wholly owned subsidiary and affiliate) and Total increase HSBC Securities (Canada) Inc. (an affiliate) directly or through its (decrease) from operations (2) $1.19 $(0.80) $1.79 $0.64 $1.64 $1.56 division, HSBC InvestDirect. We pay distribution and servicing fees to them based on the amount of assets held in the Distributions to unitholders: investor’s account, and additionally, in some cases, on the From net investment amount of the initial purchase. If you hold units of this Fund income (excluding and/or other HSBC Mutual Funds in a registered plan with HSBC dividends) – – – – – (0.03) From dividends – (0.30) (0.25) (0.11) (0.31) (0.09) Investment Funds (Canada) Inc., they may charge you an annual From capital gains – (0.40) (0.12) – (0.78) – fee to cover the annual administration costs of the plan. We Return of capital – – – – – – permit HSBC Investment Funds (Canada) Inc. to collect these Total annual fees by redeeming sufficient units of the Fund with the highest distributions (2,3) $– $(0.70) $(0.37) $(0.11) $(1.09) $(0.12) market value in your registered plan. Net assets per unit, end of period (2) $14.91 $13.73 $15.21 $13.78 $13.20 $12.58 Investments in Securities of Related Parties In accordance with Canadian securities legislation and policies set out by our Independent Review Committee, the Fund may Ratios and Supplemental Data invest its assets in the securities of companies related to the June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Fund’s investment advisor or sub-advisor. During the period, the 2019 2018 2017 2016 2015 2014 Fund held, purchased or sold shares in HSBC Holdings plc (our Net Asset Value (in ultimate parent company) and Hang Seng Bank, which 000s) (4) $45,749 $43,360 $41,687 $39,123 $39,718 $32,537 Number of units represented 0.39% and 0.04% of the Fund’s assets, outstanding (in 000s) (4) 3,069 3,158 2,741 2,839 3,008 2,585 respectively, as at June 30, 2019. Management expense ratio ("MER") (5) 1.47% 1.43% 1.46% 1.44% 1.60% 2.56% Financial Highlights MER before waivers or absorptions (5) 1.47% 1.43% 1.46% 1.44% 1.60% 2.56% The following tables show selected key financial information Trading expense ratio (6) 0.03% 0.03% 0.02% 0.06% 0.12% 0.22% about the Fund and are intended to help you understand the Portfolio turnover rate (7) 12.50% 30.49% 22.34% 30.23% 122.23% 102.60% Fund’s financial performance for the six-month period ended Net Asset Value per June 30, 2019, and for the last five years ended December 31, unit (4) $14.91 $13.73 $15.21 $13.78 $13.20 $12.58 as applicable. In the year a fund is established, “period” represents the period from inception to December 31 or June 30 of that fiscal year, as applicable. This information is derived from the Fund’s unaudited semi-annual financial statements and the audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net

2 HSBC Global Equity Fund

HSBC Global Equity Fund – Advisor Series – Net HSBC Global Equity Fund – Premium Series – Assets per Unit(1) Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $16.15 $17.96 $16.35 $12.47 $12.06 $10.68 beginning of period (2) $17.59 $19.47 $17.65 $16.92 $16.17 $14.34 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.32 0.49 0.46 0.30 0.30 0.28 Total revenue 0.34 0.52 0.49 0.41 0.40 0.34 Total expenses (0.16) (0.35) (0.34) (0.14) (0.39) (0.28) Total expenses (0.10) (0.22) (0.21) (0.18) (0.21) (0.31) Realized gains (losses) 0.21 0.60 0.62 0.65 2.57 1.45 Realized gains (losses) 0.23 0.65 0.76 0.12 2.35 1.86 Unrealized gains Unrealized gains (losses) 0.92 (1.55) 1.30 0.72 (1.12) (0.53) (losses) 1.08 (2.10) 1.19 0.62 (1.00) (0.17) Total increase Total increase (decrease) from (decrease) from operations (2) $1.29 $(0.81) $2.04 $1.53 $1.36 $0.92 operations (2) $1.55 $(1.15) $2.23 $0.97 $1.54 $1.72 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––(0.03) dividends) – – – – – (0.08) From dividends – (0.34) (0.29) (0.13) (0.29) (0.08) From dividends – (0.39) (0.37) (0.21) (0.43) (0.19) From capital gains – (0.47) (0.14) – (0.73) – From capital gains – (0.54) (0.18) – (1.08) – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $(0.81) $(0.43) $(0.13) $(1.02) $(0.11) distributions (2,3) $– $(0.93) $(0.55) $(0.21) $(1.51) $(0.27) Net assets per unit, Net assets per unit, end of period (2) $17.49 $16.15 $17.96 $16.35 $12.47 $12.06 end of period (2) $19.14 $17.59 $19.47 $17.65 $16.92 $16.17

3 HSBC Global Equity Fund

HSBC Global Equity Fund – Manager Series – HSBC Global Equity Fund – Institutional Series – Net Assets per Unit(1) Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $14.09 $15.68 $14.26 $13.76 $13.23 $11.70 beginning of period (2) $16.46 $18.25 $16.54 $15.85 $15.12 $13.37 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.28 0.40 0.40 0.32 0.34 0.27 Total revenue 0.32 0.49 0.46 0.38 0.39 0.31 Total expenses (0.09) (0.21) (0.20) (0.20) (0.27) (0.18) Total expenses (0.01) (0.01) (0.02) (0.01) (0.01) (0.02) Realized gains (losses) 0.19 0.48 0.64 0.14 3.00 1.52 Realized gains (losses) 0.21 0.59 0.65 0.15 3.31 1.74 Unrealized gains Unrealized gains (losses) 0.75 (1.29) 0.67 0.51 (1.33) 0.18 (losses) 1.02 (1.75) 1.35 1.12 (1.48) 0.21 Total increase Total increase (decrease) from (decrease) from operations (2) $1.13 $(0.62) $1.51 $0.77 $1.74 $1.79 operations (2) $1.54 $(0.68) $2.44 $1.64 $2.21 $2.24 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – (0.15) From dividends – (0.33) (0.32) (0.20) (0.35) (0.27) From dividends – (0.46) (0.47) (0.36) (0.45) (0.37) From capital gains – (0.46) (0.15) – (0.87) – From capital gains – (0.63) (0.23) – (1.14) – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $(0.79) $(0.47) $(0.20) $(1.22) $(0.27) distributions (2,3) $– $(1.09) $(0.70) $(0.36) $(1.59) $(0.52) Net assets per unit, Net assets per unit, end of period (2) $15.32 $14.09 $15.68 $14.26 $13.76 $13.23 end of period (2) $18.00 $16.46 $18.25 $16.54 $15.85 $15.12

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $46 $38 $63 $36 $30 $27 000s) (4) $666,553 $619,429 $628,673 $575,413 $304,747 $251,894 Number of units Number of units outstanding (in 000s) (4) 334222outstanding (in 000s) (4) 37,039 37,628 34,441 34,781 19,229 16,658 Management expense Management expense ratio ("MER") (5) 1.19% 1.34% 1.32% 1.50% 1.87% 1.41% ratio ("MER") (5) 0.11% 0.07% 0.09% 0.07% 0.07% 0.11% MER before waivers or MER before waivers or absorptions (5) 2.49% 3.07% 2.70% 3.67% 2.97% 1.41% absorptions (5) 0.11% 0.07% 0.09% 0.07% 0.07% 0.11% Trading expense ratio (6) 0.03% 0.03% 0.02% 0.06% 0.12% 0.22% Trading expense Portfolio turnover rate (7) 12.50% 30.49% 22.34% 30.23% 122.23% 102.60% ratio (6) 0.03% 0.03% 0.02% 0.06% 0.12% 0.22% Net Asset Value per Portfolio turnover unit (4) $15.32 $14.09 $15.68 $14.26 $13.76 $13.23 rate (7) 12.50% 30.49% 22.34% 30.23% 122.23% 102.60% Net Asset Value per unit (4) $18.00 $16.46 $18.25 $16.54 $15.85 $15.12 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC Global Equity Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the including differences in management fees and expenses. The end of the period. The MER may vary from one mutual fund to Fund’s past performance does not necessarily indicate how it another and from one series of units to another. We may have will perform in the future. waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the Year-by-Year Returns discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns – Investor Series higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 40% and the performance of the Fund. The rate is calculated based on 31.6% 30% the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding 20% 14.1% short-term securities. 13.5% 13.0% 9.8% 8.6% 10% 6.7% 5.2% Management Fees 0.5% 0% For the six months ended June 30, 2019, the Fund paid us management fees of $371,199. The management fee for each -10% -6.6% -5.0% series is calculated as a percentage of the daily net asset value -20% for that series. The fees are reduced, where required, so that Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Returns – Advisor Series The Fund’s management fees were used by us to pay costs for For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 40% making brokerage arrangements for the purchase and sale of 31.6% 32.2% 30% the investment portfolio and providing other services. The management fees also funded commission payments and other 20% 14.1% 12.4% compensation (collectively “distribution costs”) to sales 9.9% 11.8% 10% 6.7% 8.3% representatives and registered dealers and brokers, including 0.6% HSBC Investment Funds (Canada) Inc., for units of the Fund 0% bought and held by unitholders. Finally, we used management -10% -6.5% -5.5% fees to pay for additional marketing and distribution services to -20% the Fund. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for the Fund, such distribution costs represented 42% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC Global Equity Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 40% 32.3% Sector Mix 30% Percentage of NAV 20% 14.7% 13.9% 13.3% 10.4% 8.8% Financials 16.51% 10% 5.5% Industrials 16.30% 0% Consumer Discretionary 12.59% Consumer Staples 9.62% -10% -6.1% -4.7% Information Technology 9.43% Communication Services 8.63% -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Health Care 8.07% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Energy 6.02% Materials 5.70% Returns – Manager Series Utilities 3.77% For the 12-month periods ended December 31 and the Real Estate 1.52% six-month period ended June 30, 2019 Investment Funds 1.20% Cash & Equivalents 0.64% 60% Total 100.00%

40% 33.1% Geographic> Mix 20% 15.4% 11.1% 13.2% 13.2% Percentage 7.8% 5.1% 8.7% 1.7% of NAV 0% -5.5% -4.9% United States 43.93% -20% Japan 11.22% France 6.95% -40% United Kingdom 6.89% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Germany 6.29% Canada 3.52% Netherlands 2.75% Returns – Institutional Series Switzerland 2.66% For the 12-month periods ended December 31 and the Spain 2.15% six-month period ended June 30, 2019 Australia 1.83% 50% Italy 1.56% Sweden 1.45% 40% 34.9% Ireland 1.34% 30% Singapore 1.09% 20% 16.9% 15.3% Hong Kong 0.90% 12.6% 14.5% 9.2% 9.3% Denmark 0.64% 10% 6.6% 3.0% Belgium 0.57% 0% Finland 0.54% Norway 0.45% -10% -4.2% -3.7% Luxembourg 0.37% -20% Austria 0.25% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Cayman Islands 0.24% Portugal 0.16% Israel 0.15% Bermuda 0.10% Jersey 0.06% Taiwan 0.05% British Virgin Islands 0.02% New Zealand 0.02% Papua New Guinea 0.01% Investment Funds 1.20% Cash & Equivalents 0.64% Total 100.00%

6 HSBC Global Equity Fund

Top 25 Holdings Percentage of NAV

Walmart Inc. 1.80% Apple Inc. 0.94% General Electric Co. 0.91% AT&T Inc. 0.79% iShares Core S&P 500 ETF 0.78% Wells Fargo & Co. 0.74% Royal Dutch Shell PLC 0.72% JPMorgan Chase & Co. 0.69% Volkswagen AG 0.69% Bank of America Corp. 0.63% Nippon Telegraph & Telephone Corp. 0.62% Verizon Communications Inc. 0.58% Exxon Mobil Corp. 0.57% Siemens AG 0.56% United Parcel Service Inc., Class B 0.54% Berkshire Hathaway Inc., Class B 0.51% Toyota Motor Corp. 0.50% Citigroup Inc. 0.49% Microsoft Corp. 0.45% The Home Depot Inc. 0.44% The Walt Disney Co. 0.44% Chevron Corp. 0.43% iShares MSCI EAFE ETF 0.42% Deutsche Post AG 0.41% BP PLC 0.40% Total of Top 25 Holdings 16.05%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Global Equity Volatility Focused Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Global Equity Volatility Focused Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Stock selections that detracted from relative performance Fund; we, us and our refer to HSBC Global Asset Management included Deutsche Wohnen, which fell in the aftermath of a (Canada) Limited; and the Fund refers to the HSBC Global Equity proposal from a city senate member for a five-year rent freeze in Volatility Focused Fund. Berlin. Furthermore, Trend Micro fell after downwardly revising its guidance based on weaker than expected sales in Europe, We are the manager, trustee and primary investment advisor of foreign exchange headwinds and delays to several projects. The the Fund. We have entered into a sub-advisory agreement with fall was compounded later in the period as quarterly earnings HSBC Global Asset Management (UK) Limited, under which came in lower than consensus. HSBC Global Asset Management (UK) Limited provides investment advice and portfolio management services to the Contributors to performance included IQVIA, which gained after Fund. For an explanation of the relationship between us and the reporting strong earnings driven by its 2017 investments and as sub-advisor, see the section Selection of Sub-Advisors in the the company’s merger integration and repositioned strategy Fund’s Simplified Prospectus. propelled its margin and growth profile upwards. Additionally, Otsuka Corp. saw its largest gains since the company listed in Introduction 2000. The company reported solid earnings and guided for This Interim Management Report of Fund Performance contains accelerating growth for the fiscal year ahead given that appetite financial highlights but does not contain either the semi-annual remains strong for IT investment in corporate Japan. financial report or annual financial statements of the investment fund. You may obtain a copy of the Fund’s semi-annual financial Recent Developments report or annual financial statements at your request, at no cost, The portfolio management team believes its measure of the by calling us toll-free at 1-888-390-3333, by visiting our website global equity risk premium (excess return over cash) is still at www.assetmanagement.hsbc.ca, by visiting the SEDAR reasonable given other opportunities. Global equities offer website at www.sedar.com or by writing to us at: attractive rewards despite the risks to the growth outlook, while corporate fundamentals remain solid. Subdued corporate Corporate Secretary earnings expectations imply a relatively low bar for an upward HSBC Global Asset Management (Canada) Limited surprise. Overall, policy support can help offset headwinds from 3rd Floor, 885 West Georgia Street more modest global growth, trade tensions and political Vancouver, BC V6C 3E8 uncertainty in many regions. You may also contact us using one of these methods to request a However, investors must be aware of potential risks. Episodic copy of the Fund’s proxy voting policies and procedures, proxy volatility may be triggered by concerns surrounding global voting disclosure record or quarterly statement of investment economic growth, trade tensions and political risks. Rising wage portfolio. growth in many developed economies could undermine Results of Operations corporate profits. Although a further significant deterioration of As of June 30, 2019, the Fund's net assets increased by 7.2% to the global economic outlook could dampen the portfolio $96.4 million from $89.9 million at the end of 2018. Positive management team’s view, the team believes we are facing a investment performance, partially offset by net withdrawals, “cyclical slowdown” rather than a more severe recessionary resulted in an overall increase in net asset value. environment.

Investment Performance Related Party Transactions The HSBC Global Equity Volatility Focused Fund (Investor We, on behalf of the Fund, in our role as fund manager, may, Series) rose 14.68% for the six months ending June 30, 2019, from time to time, enter into transactions or arrangements with while the benchmark MSCI All Country World Net Index (US$) or involving other members of the HSBC Group or other people rose 16.23% over the same period. The Fund’s returns are after or companies related or connected to us or the Fund. To proceed the deduction of fees and expenses, while the benchmark’s with the transactions, the Fund relies on the positive returns do not include any costs of investing. See the Past recommendation of the Fund’s Independent Review Committee. A Performance section for the returns of other series of the Fund, condition of this positive recommendation is that the transactions which may vary due to differences in management fees are performed in accordance with our policy on Related Party and expenses. Transactions. For more general information on persons related to the Fund and the types of potential transactions, see the Fund’s The Fund’s country and sector allocations were positive, Simplified Prospectus. particularly the underweight exposure to India and an overweight exposure to information technology. The following is a summary of current transactions and arrangements with entities that are related to us or the Fund.

1 HSBC Global Equity Volatility Focused Fund

Manager, Trustee and Investment Advisor assets from operations being based on average units We are the manager, trustee and primary investment advisor of outstanding during the period and all other numbers being the Fund. As manager, we manage the overall business and based on actual units outstanding at the relevant point in time. operations of the Fund. As trustee, we hold legal title to the property of the Fund on your behalf. As primary investment All figures are stated in US dollars. advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the HSBC Global Equity Volatility Focused Fund – Fund for these services based on assets under management, Investor Series – Net Assets per Unit(1) calculated daily and paid monthly. Period ended June 30, 2019, and years ended December 31 We have entered into a sub-advisory agreement with HSBC June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Global Asset Management (UK) Limited (an affiliate), under 2019 2018 2017 2016 2015 which HSBC Global Asset Management (UK) Limited provides Net assets per unit, investment advice and portfolio management services to the beginning of period (2) $10.68 $11.97 $10.37 $9.94 $10.00 Fund. We pay HSBC Global Asset Management (UK) Limited an Increase investment advisory fee from the Fund based on assets under (decrease) from management, calculated daily and paid quarterly. For more operations: information on our ability to hire sub-advisors, see the section Total revenue 0.20 0.43 0.27 0.25 0.04 Total expenses (0.13) (0.28) (0.27) (0.24) (0.05) Organization and Management of the HSBC Mutual Funds in the Realized gains (losses) 0.09 (0.16) 0.48 (0.10) (0.02) Fund’s Simplified Prospectus. Unrealized gains (losses) 1.38 (1.40) 1.13 0.70 (0.10) Distribution Services Total increase The Fund is distributed through us, HSBC Investment Funds (decrease) from (Canada) Inc. (our wholly owned subsidiary and affiliate) and operations (2) $1.54 $(1.41) $1.61 $0.61 $(0.13) HSBC Securities (Canada) Inc. (an affiliate) directly or through its Distributions to division, HSBC InvestDirect. We pay distribution and servicing unitholders: fees to them based on the amount of assets held in the From net investment income (excluding investor’s account, and additionally, in some cases, on the dividends) – – – – – amount of the initial purchase. If you hold units of this Fund From dividends – (0.12) – – – and/or other HSBC Mutual Funds in a registered plan with HSBC From capital gains – – – – – Investment Funds (Canada) Inc., they may charge you an annual Return of capital – – – – – fee to cover the annual administration costs of the plan. We Total annual permit HSBC Investment Funds (Canada) Inc. to collect these distributions (2,3) $– $(0.12) $– $– $– fees by redeeming sufficient units of the Fund with the highest Net assets per unit, end market value in your registered plan. of period (2) $12.25 $10.68 $11.97 $10.37 $9.94

Investments in Securities of Related Parties In accordance with Canadian securities legislation and policies Ratios and Supplemental Data set out by our Independent Review Committee, the Fund may June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, invest its assets in the securities of companies related to the 2019 2018 2017 2016 2015 Fund’s investment advisor or sub-advisor. During the period, the Net Asset Value (in Fund held, purchased or sold shares in HSBC Holdings plc (our 000s) (4) $15,384 $13,151 $8,314 $3,648 $1,092 Number of units ultimate parent company), which represented 1.47% of the outstanding (in Fund’s assets, as at June 30, 2019. 000s) (4) 1,256 1,231 695 352 110 Management Financial Highlights expense ratio The following tables show selected key financial information ("MER") (5) 2.31% 2.36% 2.43% 2.37% 2.48% about the Fund and are intended to help you understand the MER before waivers or absorptions (5) 2.31% 2.36% 2.49% 2.60% 3.01% Fund’s financial performance for the six-month period ended Trading expense June 30, 2019, and for the last three years ended December 31, ratio (6) 0.06% 0.09% 0.26% 0.23% 0.13% as applicable. In the year a fund is established, “period” Portfolio turnover represents the period from inception to December 31 or June 30 rate (7) 18.95% 39.60% 102.98% 85.90% 13.89% of that fiscal year, as applicable. This information is derived from Net Asset Value per unit (4) $12.25 $10.68 $11.97 $10.37 $9.94 the Fund’s unaudited semi-annual financial statements and the audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net

2 HSBC Global Equity Volatility Focused Fund

HSBC Global Equity Volatility Focused Fund – HSBC Global Equity Volatility Focused Fund – Advisor Series – Net Assets per Unit(1) Premium Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 Net assets per unit, Net assets per unit, beginning of period (2) $10.89 $12.20 $10.42 $9.84 $10.00 beginning of period (2) $10.70 $12.00 $10.36 $9.94 $10.00 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.20 0.44 0.21 0.08 – Total revenue 0.19 0.43 0.26 0.24 0.04 Total expenses (0.13) (0.28) (0.26) – – Total expenses (0.10) (0.21) (0.21) (0.18) (0.04) Realized gains (losses) 0.10 (0.17) 0.27 (0.11) (0.01) Realized gains (losses) 0.10 (0.16) 0.45 (0.10) (0.03) Unrealized gains Unrealized gains (losses) 1.40 (1.48) 2.95 0.03 0.01 (losses) 1.43 (1.41) 1.25 0.64 (0.14) Total increase Total increase (decrease) from (decrease) from operations (2) $1.57 $(1.49) $3.17 $– $– operations (2) $1.62 $(1.35) $1.75 $0.60 $(0.17) Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) – – – – – dividends) – – – – – From dividends – (0.13) – (0.01) – From dividends – (0.19) (0.03) (0.06) – From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual Total annual distributions (2,3) $– $(0.13) $– $(0.01) $– distributions (2,3) $– $(0.19) $(0.03) $(0.06) $– Net assets per unit, end Net assets per unit, end of period (2) $12.50 $10.89 $12.20 $10.42 $9.84 of period (2) $12.31 $10.70 $12.00 $10.36 $9.94

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 Net Asset Value (in Net Asset Value (in 000s) (4) $15 $16 $10 $–* $–* 000s) (4) $75,979 $73,000 $43,618 $9,236 $2,610 Number of units Number of units outstanding (in outstanding (in 000s) (4) 1 1 1 –* –* 000s) (4) 6,173 6,821 3,635 892 263 Management Management expense ratio expense ratio ("MER") (5) 2.31% 2.27% 2.36% 0.00% 0.00% ("MER") (5) 1.75% 1.79% 1.85% 1.80% 2.06% MER before waivers MER before waivers or absorptions (5) 11.74% 2.27% 2.42% 0.00% 0.00% or absorptions (5) 1.75% 1.79% 1.89% 2.01% 2.36% Trading expense Trading expense ratio (6) 0.06% 0.09% 0.26% 0.23% 0.13% ratio (6) 0.06% 0.09% 0.26% 0.23% 0.13% Portfolio turnover Portfolio turnover rate (7) 18.95% 39.60% 102.98% 85.90% 13.89% rate (7) 18.95% 39.60% 102.98% 85.90% 13.89% Net Asset Value per Net Asset Value per unit (4) $12.50 $10.89 $12.20 $10.42 $9.84 unit (4) $12.31 $10.70 $12.00 $10.36 $9.94 * Amount less than one thousand.

3 HSBC Global Equity Volatility Focused Fund

HSBC Global Equity Volatility Focused Fund – HSBC Global Equity Volatility Focused Fund – Manager Series – Net Assets per Unit(1) Institutional Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019** 2018** 2017 2016 2015 2019 2018 2017 2016 2015 Net assets per unit, Net assets per unit, beginning of period (2) $– $11.98 $10.31 $9.84 $10.00 beginning of period (2) $10.65 $11.98 $10.41 $9.98 $10.00 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue – 0.21 0.11 0.08 – Total revenue 0.20 0.42 0.26 0.25 0.03 Total expenses – – – – – Total expenses (0.01) (0.02) (0.02) (0.02) (0.01) Realized gains (losses) – (0.01) 0.44 (0.11) (0.01) Realized gains (losses) 0.10 (0.12) 0.38 (0.14) (0.02) Unrealized gains Unrealized gains (losses) – (0.20) 1.42 0.03 0.01 (losses) 1.30 (1.07) 1.36 0.72 (0.03) Total increase Total increase (decrease) from (decrease) from operations (2) $– $– $1.97 $– $– operations (2) $1.59 $(0.79) $1.98 $0.81 $(0.03) Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) – – – – – dividends) – – – – – From dividends – – (0.10) (0.12) – From dividends – (0.39) (0.30) (0.23) – From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual Total annual distributions (2,3) $– $– $(0.10) $(0.12) $– distributions (2,3) $– $(0.39) $(0.30) $(0.23) $– Net assets per unit, end Net assets per unit, end of period (2) $– $– $11.98 $10.31 $9.84 of period (2) $12.34 $10.65 $11.98 $10.41 $9.98

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019** 2018** 2017 2016 2015 2019 2018 2017 2016 2015 Net Asset Value (in Net Asset Value (in 000s) (4) $– $– $–* $–* $–* 000s) (4) $5,033 $3,728 $5,093 $7,146 $10,193 Number of units Number of units outstanding (in outstanding (in 000s) (4) – – –* –* –* 000s) (4) 408 350 425 687 1,021 Management Management expense ratio expense ratio ("MER") (5) – – 0.00% 0.00% 0.00% ("MER") (5) 0.16% 0.20% 0.21% 0.22% 0.57% MER before waivers MER before waivers or absorptions (5) – – 0.00% 0.00% 0.00% or absorptions (5) 0.16% 0.20% 0.29% 0.42% 0.70% Trading expense Trading expense ratio (6) – 0.09% 0.26% 0.23% 0.13% ratio (6) 0.06% 0.09% 0.26% 0.23% 0.13% Portfolio turnover Portfolio turnover rate (7) – 39.60% 102.98% 85.90% 13.89% rate (7) 18.95% 39.60% 102.98% 85.90% 13.89% Net Asset Value per Net Asset Value per unit (4) $– $– $11.98 $10.31 $9.84 unit (4) $12.34 $10.65 $11.98 $10.41 $9.98 * Amount less than one thousand. (1) This information is derived from the Fund’s unaudited semi-annual ** The Manager Series was fully redeemed during 2018 & 2019; financial report and audited annual financial statements. All however, it remains in offer as at period-end. balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC Global Equity Volatility Focused Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the including differences in management fees and expenses. The end of the period. The MER may vary from one mutual fund to Fund’s past performance does not necessarily indicate how it another and from one series of units to another. We may have will perform in the future. waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the Year-by-Year Returns discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns – Investor Series higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 25% and the performance of the Fund. The rate is calculated based on 20% 15.5% 14.7% the lesser of purchases or sales of securities divided by the average 15% weighted market value of the portfolio securities, excluding 10% short-term securities. 4.3% 5% Management Fees 0% For the six months ended June 30, 2019, the Fund paid us -5% management fees of $698,083. The management fee for each -10% -9.7% series is calculated as a percentage of the daily net asset value -15% for that series. The fees are reduced, where required, so that Dec. 31 Dec. 31 Dec. 31 Jun. 30 2016 2017 2018 2019 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Returns – Advisor Series The Fund’s management fees were used by us to pay costs for For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 25% making brokerage arrangements for the purchase and sale of 20% 17.1% 14.7% the investment portfolio and providing other services. The 15% management fees also funded commission payments and other 10% compensation (collectively “distribution costs”) to sales 6.0% 5% representatives and registered dealers and brokers, including 0% HSBC Investment Funds (Canada) Inc., for units of the Fund -5% bought and held by unitholders. Finally, we used management -10% fees to pay for additional marketing and distribution services to -9.7% -15% the Fund. Dec. 31 Dec. 31 Dec. 31 Jun. 30 2016 2017 2018 2019 For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for the Fund, such distribution costs represented 35% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC Global Equity Volatility Focused Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 25% 20% Sector Mix 16.2% 15.0% Percentage 15% of NAV 10% 4.9% Financials 17.94% 5% Information Technology 17.47% 0% Industrials 14.93% -5% Health Care 10.95% -10% Consumer Staples 8.40% -9.2% Communication Services 6.12% -15% Dec. 31 Dec. 31 Dec. 31 Jun. 30 Consumer Discretionary 5.94% 2016 2017 2018 2019 Energy 5.64% Materials 5.51% Returns – Manager Series Investment Funds 2.05% For the 12-month periods ended December 31 and the Utilities 1.74% six-month period ended June 30, 2019 Real Estate 1.70% Cash & Equivalents 1.61% 25% Total 100.00% 20% 17.2% 15% > 10% Geographic Mix 6.0% Percentage 5% of NAV 0% United States 45.33% -5% United Kingdom 13.54% -10% Japan 7.27% -15% Germany 6.09% Dec. 31 Dec. 31 Dec. 31 Jun. 30 2016 2017 2018* 2019* Switzerland 3.81% Hong Kong 3.59% * The Manager Series was fully redeemed since 2018; however, it remains France 2.85% in offer as at period-end. Netherlands 2.42% Australia 2.10% Returns – Institutional Series Italy 1.74% For the 12-month periods ended December 31 and the Thailand 1.66% six-month period ended June 30, 2019 China 1.48% 25% Singapore 1.20% 20% 18.0% South Korea 1.13% 15.9% Jersey 1.07% 15% Canada 0.53% 10% 6.6% Indonesia 0.53% 5% Investment Funds 2.05% 0% Cash & Equivalents 1.61% Total 100.00% -5% -10% -7.8% -15% Dec. 31 Dec. 31 Dec. 31 Jun. 30 2016 2017 2018 2019

6 HSBC Global Equity Volatility Focused Fund

Top 25 Holdings Percentage of NAV

IQVIA Holdings Inc. 2.82% The Home Depot Inc. 2.61% Nestle SA 2.36% The Walt Disney Co. 2.29% Microsoft Corp. 2.21% Johnson & Johnson 2.16% United Technologies Corp. 2.12% BHP Group Ltd. 2.10% Masco Corp. 2.09% Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen 2.09% Accenture PLC 2.06% iShares MSCI ACWI ETF 2.05% Apple Inc. 2.04% Phillips 66 1.99% Capgemini SE 1.96% SAP SE 1.94% Cisco Systems Inc. 1.92% BP PLC 1.91% UnitedHealth Group Inc. 1.87% Diageo PLC 1.83% Prudential PLC 1.80% Everest Re Group Ltd. 1.77% Eni SpA 1.74% Guangdong Investment Ltd. 1.74% Wolters Kluwer NV 1.67% Total of Top 25 Holdings 51.14%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC U.S. Equity Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC U.S. Equity Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the The Fund’s sector tilts were modestly positive, while Fund; we, us and our refer to HSBC Global Asset Management fundamental factor bets detracted from return. Overweight (Canada) Limited; and the Fund refers to the HSBC positions to real estate and consumer services contributed to U.S. Equity Fund. performance, as did tilts toward growth-oriented sectors. Underweight positions in food, beverage and tobacco, materials We are the manager, trustee and primary investment advisor of and utilities hurt performance. the Fund. We have entered into a sub-advisory agreement with Los Angeles Capital Management and Equity Research, Inc., The Fund gained positive returns from underweight positions in under which Los Angeles Capital Management and Equity companies whose returns could not be explained by Research, Inc. provides investment advice and portfolio fundamentals or news events. It also saw positive returns from management services to the Fund. For an explanation of the overweight positions to profitability and underweight positions relationship between us and the sub-advisor, see the section to valuation factors. Detractors from performance came from Selection of Sub-Advisors in the Fund’s Simplified Prospectus. tilts toward one-year momentum and peer momentum, and from overweight positions to success and earnings quality and Introduction transcript quality. The Fund’s defensive posture also detracted This Interim Management Report of Fund Performance contains from returns, as investors’ appetite for riskier companies financial highlights but does not contain either the semi-annual increased in the first half of 2019. financial report or annual financial statements of the investment fund. You may obtain a copy of the Fund’s semi-annual financial Recent Developments report or annual financial statements at your request, at no cost, Over the first six months of the year, the Fund moved out of by calling us toll-free at 1-888-390-3333, by visiting our website holdings with value-oriented characteristics such as at www.assetmanagement.hsbc.ca, by visiting the SEDAR higher-yielding stocks and appraisal (intrinsic value), as well as website at www.sedar.com or by writing to us at: out of larger market capitalization companies. The Fund shifted into stocks with stronger three-year momentum and into Corporate Secretary companies with sources of foreign revenue, as well as those HSBC Global Asset Management (Canada) Limited with stronger cash earnings and positive analyst insight. 3rd Floor, 885 West Georgia Street Vancouver, BC V6C 3E8 At the end of the mid-year period, the Fund’s largest positive sector tilts were towards capital goods and technology, while You may also contact us using one of these methods to request a copy of the Fund’s proxy voting policies and procedures, proxy the largest negative sector tilts were away from voting disclosure record or quarterly statement of investment commodity-linked sectors such as energy and basic materials, portfolio. as well as biotechnology and utilities. Results of Operations Related Party Transactions As of June 30, 2019, the Fund's net assets increased by 14.0% We, on behalf of the Fund, in our role as fund manager, may, to $227.7 million from $199.7 million at the end of 2018. Net from time to time, enter into transactions or arrangements with contributions and positive investment performance resulted in or involving other members of the HSBC Group or other people an overall increase in net asset value. or companies related or connected to us or the Fund. To proceed with the transactions, the Fund relies on the positive Investment Performance recommendation of the Fund’s Independent Review Committee. A The HSBC U.S. Equity Fund (Investor Series) rose 11.66% for the condition of this positive recommendation is that the transactions six months ending June 30, 2019, while the benchmark Russell are performed in accordance with our policy on Related Party 1000 Index (C$) rose 13.70% over the same period. The Fund’s Transactions. For more general information on persons related to returns are after the deduction of fees and expenses, while the the Fund and the types of potential transactions, see the Fund’s benchmark’s returns do not include any costs of investing. See Simplified Prospectus. the Past Performance section for the returns of other series of the Fund, which may vary due to differences in management The following is a summary of current transactions and fees and expenses. arrangements with entities that are related to us or the Fund. The first half of 2019 saw a preference for growth over value, Manager, Trustee and Investment Advisor large cap over small cap and developed markets over emerging We are the manager, trustee and primary investment advisor of markets. After suffering steep declines at the end of 2018, the Fund. As manager, we manage the overall business and equities bounced back over the first half of 2019, led by operations of the Fund. As trustee, we hold legal title to the technology as the top-performing sector and biotechnology as property of the Fund on your behalf. As primary investment the weakest sector. advisor, we provide investment advice and portfolio

1 HSBC U.S. Equity Fund management services to the Fund. We receive a fee from the HSBC U.S. Equity Fund – Investor Series – Net Fund for these services based on assets under management, Assets per Unit(1) calculated daily and paid monthly. Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Distribution Services 2019 2018 2017 2016 2015 2014 The Fund is distributed through us, HSBC Investment Funds Net assets per unit, (Canada) Inc. (our wholly owned subsidiary and affiliate) and beginning of period (2) $31.36 $32.73 $31.43 $29.96 $24.96 $20.84 HSBC Securities (Canada) Inc. (an affiliate) directly or through its Increase division, HSBC InvestDirect. We pay distribution and servicing (decrease) from fees to them based on the amount of assets held in the operations: investor’s account, and additionally, in some cases, on the Total revenue 0.24 0.51 0.67 0.80 0.49 0.42 Total expenses (0.38) (0.78) (0.73) (0.66) (0.63) (0.51) amount of the initial purchase. If you hold units of this Fund Realized gains (losses) 0.51 2.36 1.66 3.24 2.96 3.24 and/or other HSBC Mutual Funds in a registered plan with HSBC Unrealized gains Investment Funds (Canada) Inc., they may charge you an annual (losses) 3.29 (1.70) 0.33 (1.27) 1.98 0.95 fee to cover the annual administration costs of the plan. We Total increase permit HSBC Investment Funds (Canada) Inc. to collect these (decrease) from operations (2) $3.66 $0.39 $1.93 $2.11 $4.80 $4.10 fees by redeeming sufficient units of the Fund with the highest market value in your registered plan. Distributions to unitholders: From net investment Financial Highlights income (excluding The following tables show selected key financial information dividends) – – – – – – about the Fund and are intended to help you understand the From dividends – – (0.08) (0.21) – – Fund’s financial performance for the six-month period ended From capital gains – (1.67) (0.58) (0.56) – – Return of capital – – – – – – June 30, 2019, and for the last five years ended December 31, Total annual as applicable. In the year a fund is established, “period” distributions (2,3) $– $(1.67) $(0.66) $(0.77) $– $– represents the period from inception to December 31 or June 30 Net assets per unit, of that fiscal year, as applicable. This information is derived from end of period (2) $35.02 $31.36 $32.73 $31.43 $29.96 $24.96 the Fund’s unaudited semi-annual financial statements and the audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a Ratios and Supplemental Data result, is not expected to add due to the increase/decrease in net June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, assets from operations being based on average units 2019 2018 2017 2016 2015 2014 outstanding during the period and all other numbers being Net Asset Value (in based on actual units outstanding at the relevant point in time. 000s) (4) $146,611 $131,823 $136,364 $140,326 $141,048 $103,949 Number of units outstanding (in 000s) (4) 4,187 4,204 4,166 4,465 4,708 4,165 Management expense ratio ("MER") (5) 2.27% 2.26% 2.26% 2.25% 2.26% 2.29% MER before waivers or absorptions (5) 2.27% 2.26% 2.26% 2.25% 2.26% 2.29% Trading expense ratio (6) 0.03% 0.04% 0.04% 0.05% 0.07% 0.10% Portfolio turnover rate (7) 43.22% 98.65% 94.02% 90.70% 111.86% 136.44% Net Asset Value per unit (4) $35.02 $31.36 $32.73 $31.43 $29.96 $24.96

2 HSBC U.S. Equity Fund

HSBC U.S. Equity Fund – Advisor Series – Net HSBC U.S. Equity Fund – Premium Series – Net Assets per Unit(1) Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $13.44 $14.09 $13.61 $13.00 $10.89 $9.09 beginning of period (2) $25.36 $26.36 $25.27 $24.06 $19.96 $16.57 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.09 0.21 0.29 0.35 0.21 0.18 Total revenue 0.19 0.42 0.54 0.65 0.39 0.33 Total expenses (0.19) (0.39) (0.38) (0.34) (0.34) (0.23) Total expenses (0.23) (0.47) (0.44) (0.40) (0.38) (0.31) Realized gains (losses) 0.28 0.89 0.72 1.37 1.32 1.46 Realized gains (losses) 0.40 1.91 1.33 2.61 2.37 2.53 Unrealized gains Unrealized gains (losses) 1.49 (0.23) 0.19 (1.57) 0.95 0.10 (losses) 2.60 (1.43) 0.21 (0.99) 1.10 0.88 Total increase Total increase (decrease) from (decrease) from operations (2) $1.67 $0.48 $0.82 $(0.19) $2.14 $1.51 operations (2) $2.96 $0.43 $1.64 $1.87 $3.48 $3.43 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends – – (0.03) (0.09) – – From dividends – – (0.14) (0.25) (0.03) – From capital gains – (0.72) (0.28) (0.24) – – From capital gains – (1.39) (0.50) (0.49) – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $(0.72) $(0.31) $(0.33) $– $– distributions (2,3) $– $(1.39) $(0.64) $(0.74) $(0.03) $– Net assets per unit, Net assets per unit, end of period (2) $14.98 $13.44 $14.09 $13.61 $13.00 $10.89 end of period (2) $28.39 $25.36 $26.36 $25.27 $24.06 $19.96

3 HSBC U.S. Equity Fund

HSBC U.S. Equity Fund – Manager Series – Net HSBC U.S. Equity Fund – Institutional Series – Assets per Unit(1) Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $20.52 $21.33 $20.50 $19.60 $16.25 $13.42 beginning of period (2) $15.13 $15.55 $14.86 $14.15 $11.61 $– Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.16 0.34 0.44 0.52 0.32 0.27 Total revenue 0.12 0.25 0.32 0.38 0.23 0.13 Total expenses (0.16) (0.35) (0.31) (0.30) (0.27) (0.17) Total expenses (0.01) (0.02) (0.02) (0.02) (0.02) (0.01) Realized gains (losses) 0.33 1.55 1.09 2.13 1.95 2.13 Realized gains (losses) 0.23 1.13 0.78 1.54 1.29 0.73 Unrealized gains Unrealized gains (losses) 2.15 (1.14) 0.22 (0.99) 1.28 0.47 (losses) 1.41 (0.79) 0.14 (0.21) 0.63 1.24 Total increase Total increase (decrease) from (decrease) from operations (2) $2.48 $0.40 $1.44 $1.36 $3.28 $2.70 operations (2) $1.75 $0.57 $1.22 $1.69 $2.13 $2.09 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends – – (0.17) (0.28) (0.05) – From dividends – – (0.20) (0.33) (0.07) – From capital gains – (1.16) (0.44) (0.41) – – From capital gains – (0.90) (0.36) (0.33) – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $(1.16) $(0.61) $(0.69) $(0.05) $– distributions (2,3) $– $(0.90) $(0.56) $(0.66) $(0.07) $– Net assets per unit, Net assets per unit, end of period (2) $23.00 $20.52 $21.33 $20.50 $19.60 $16.25 end of period (2) $17.07 $15.13 $15.55 $14.86 $14.15 $11.61

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $184 $164 $161 $151 $170 $122 000s) (4) $1,710 $1,566 $1,569 $1,719 $1,183 $335 Number of units Number of units outstanding (in 000s) (4) 888797outstanding (in 000s) (4) 100 104 101 116 84 29 Management expense Management expense ratio ("MER") (5) 1.52% 1.57% 1.49% 1.59% 1.50% 1.17% ratio ("MER") (5) 0.12% 0.14% 0.13% 0.13% 0.15% 0.13% MER before waivers or MER before waivers or absorptions (5) 1.55% 1.67% 1.71% 1.72% 1.50% 1.17% absorptions (5) 0.12% 0.14% 0.13% 0.13% 0.15% 0.13% Trading expense ratio (6) 0.03% 0.04% 0.04% 0.05% 0.07% 0.10% Trading expense ratio (6) 0.03% 0.04% 0.04% 0.05% 0.07% 0.10% Portfolio turnover rate (7) 43.22% 98.65% 94.02% 90.70% 111.86% 136.44% Portfolio turnover rate (7) 43.22% 98.65% 94.02% 90.70% 111.86% 136.44% Net Asset Value per Net Asset Value per unit (4) $23.00 $20.52 $21.33 $20.50 $19.60 $16.25 unit (4) $17.07 $15.13 $15.55 $14.86 $14.15 $11.61 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC U.S. Equity Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the including differences in management fees and expenses. The end of the period. The MER may vary from one mutual fund to Fund’s past performance does not necessarily indicate how it another and from one series of units to another. We may have will perform in the future. waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the Year-by-Year Returns discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns – Investor Series higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 60% and the performance of the Fund. The rate is calculated based on 50% 43.9% the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding 40% short-term securities. 30% 19.8% 20.0% 20% Management Fees 11.7% 9.1% 8.7% For the six months ended June 30, 2019, the Fund paid us 10% 7.1% 7.5% 6.2% 1.1% management fees of $1,965,006. The management fee for each 0% -1.7% series is calculated as a percentage of the daily net asset value -10% for that series. The fees are reduced, where required, so that Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Returns – Advisor Series The Fund’s management fees were used by us to pay costs for For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 60% making brokerage arrangements for the purchase and sale of 50% 43.9% the investment portfolio and providing other services. The 40% management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales 30% 19.7% 19.4% representatives and registered dealers and brokers, including 20% 11.4% 9.1% 8.7% HSBC Investment Funds (Canada) Inc., for units of the Fund 10% 7.1% 7.3% 5.7% bought and held by unitholders. Finally, we used management 0.7% 0% fees to pay for additional marketing and distribution services to -1.7% -10% the Fund. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for the Fund, such distribution costs represented 41% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC U.S. Equity Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 60% Sector Mix 50% 44.7% Percentage 40% of NAV

30% Information Technology 24.96% 20.4% 20.7% 20% Financials 13.85% 12.0% Health Care 12.76% 10% 7.7% 8.1% 6.8% 1.7% Consumer Discretionary 12.86% 0% Industrials 11.92% -1.2% Communication Services 7.32% -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Consumer Staples 6.99% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Real Estate 4.49% Energy 2.16% Returns – Manager Series Materials 1.26% For the 12-month periods ended December 31 and the Utilities 1.11% six-month period ended June 30, 2019 Cash & Equivalents 0.32% Total 100.00% 60% 50% 45.5% 40% Top 25 Holdings Percentage 30% of NAV 21.1% 20.9% 20% Microsoft Corp. 4.05% 10.3% 9.9% 12.1% 10% 8.4% 8.2% 7.0% Apple Inc. 4.04% 1.8% Alphabet Inc. 3.61% 0% -0.6% Amazon.com Inc. 2.93% -10% Facebook Inc. 2.58% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 The Home Depot Inc. 1.48% Mastercard Inc., Class A 1.42% Johnson & Johnson 1.39% Returns – Institutional Series Visa Inc., Class A 1.14% For the 12-month periods ended December 31 and the Oracle Corp. 1.13% six-month period ended June 30, 2019 Cisco Systems Inc. 1.03% 60% Yum China Holdings Inc. 1.01% 50% Curtiss-Wright Corp. 0.99% Procter & Gamble Co. 0.99% 40% S&P Global Inc. 0.89% 30% JPMorgan Chase & Co. 0.87% 22.6% The Coca-Cola Co. 0.87% 20% 12.9% 11.4% 9.8% Costco Wholesale Corp. 0.86% 10% 8.5% 3.3% Honeywell International Inc. 0.86% 0% Bank of America Corp. 0.83% AutoZone Inc. 0.82% -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Thermo Fisher Scientific Inc. 0.81% 2009 2010* 2011* 2012* 2013* 2014* 2015 2016 2017 2018 2019 McDonald's Corp. 0.80% Cerner Corp. 0.79% * The Institutional Series was fully redeemed during 2010. There were PayPal Holdings Inc. 0.79% no unitholders during the years of 2011 to 2014; however, the series Total of Top 25 Holdings 36.98% remains in offer as at period-end.

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC European Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC European Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Stock selection also had an overall negative impact on Fund; we, us and our refer to HSBC Global Asset Management performance. The top positive contributors were (Canada) Limited; and the Fund refers to the HSBC HeidelbergCement, Heineken and Rio Tinto. However, the European Fund. portfolio management team’s decision not to hold LVMH, Nestle and Airbus was the biggest detractor from performance. We are the manager, trustee and primary investment advisor of Although these stocks have high valuations, they continue to the Fund. We have hired HSBC Global Asset Management draw investors because their growth seems to be secure. (France), as a sub-advisor to provide portfolio management and investment advisory services to the Fund. For an explanation of Recent Developments the relationship between us and the sub-advisor, see the section The portfolio management team has maintained its disciplined Selection of Sub-Advisors in the Fund’s Simplified Prospectus. investment process, investing in liquid names with an attractive Introduction combination of profitability and valuation. Proprietary fundamental research confirms investment attractiveness. This Interim Management Report of Fund Performance contains financial highlights but does not contain either the semi-annual From an asset-class perspective, the portfolio management financial report or annual financial statements of the investment team sees equities as more attractive than bonds or cash. The fund. You may obtain a copy of the Fund’s semi-annual financial team expects to see heightened volatility in equity markets report or annual financial statements at your request, at no cost, given uncertainties in the global economy, divergence of by calling us toll-free at 1-888-390-3333, by visiting our website monetary policy, currency and commodity price volatility, and at www.assetmanagement.hsbc.ca, by visiting the SEDAR geopolitical tensions. website at www.sedar.com or by writing to us at: The Fund is overweight in industrials, communication services Corporate Secretary and financials and underweight in consumer goods and utilities. HSBC Global Asset Management (Canada) Limited 3rd Floor, 885 West Georgia Street Related Party Transactions Vancouver, BC V6C 3E8 We, on behalf of the Fund, in our role as fund manager, may, from time to time, enter into transactions or arrangements with You may also contact us using one of these methods to request a or involving other members of the HSBC Group or other people copy of the Fund’s proxy voting policies and procedures, proxy or companies related or connected to us or the Fund. To proceed voting disclosure record or quarterly statement of investment with the transactions, the Fund relies on the positive portfolio. recommendation of the Fund’s Independent Review Committee. A Results of Operations condition of this positive recommendation is that the transactions are performed in accordance with our policy on Related Party As of June 30, 2019, the Fund's net assets increased by 0.6% to Transactions. For more general information on persons related to $35.3 million from $35.1 million at the end of 2018. Positive the Fund and the types of potential transactions, see the Fund’s investment performance, partially offset by net withdrawals, Simplified Prospectus. resulted in an overall increase in net asset value. The following is a summary of current transactions and Investment Performance arrangements with entities that are related to us or the Fund. The HSBC European Fund (Investor Series) rose 7.81% for the six months ending June 30, 2019, while the benchmark MSCI Manager, Trustee and Investment Advisor Europe Net Index (C$) rose 10.80% over the same period. The We are the manager, trustee and primary investment advisor of Fund’s returns are after the deduction of fees and expenses, the Fund. As manager, we manage the overall business and while the benchmark’s returns do not include any costs of operations of the Fund. As trustee, we hold legal title to the investing. See the Past Performance section for the returns of property of the Fund on your behalf. As primary investment other series of the Fund, which may vary due to differences in advisor, we provide investment advice and portfolio management fees and expenses. management services to the Fund. We receive a fee from the Fund for these services based on assets under management, The Fund underperformed against its benchmark, with sector calculated daily and paid monthly. allocation proving detrimental to relative performance. Underweight positions in sectors with high valuations (such as We have entered into a sub-advisory agreement with HSBC consumer durables; food, beverage and tobacco; and Global Asset Management (France), an affiliate, under which semiconductors) and overweight positions in HSBC Global Asset Management (France) provides investment telecommunication and banks weighed heavily on performance. advice and portfolio management services to the Fund. We pay On the other hand, the Fund’s overweight positions in software, HSBC Global Asset Management (France) a fee based on assets materials, insurance and health-care equipment had the under management, calculated daily and paid quarterly. For strongest positive impacts. more information on our ability to hire sub-advisors, see the

1 HSBC European Fund section Organization and Management of the HSBC Mutual Funds HSBC European Fund – Investor Series – Net in the Fund’s Simplified Prospectus. Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Distribution Services June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, The Fund is distributed through us, HSBC Investment Funds 2019 2018 2017 2016 2015 2014 (Canada) Inc. (our wholly owned subsidiary and affiliate) and Net assets per unit, HSBC Securities (Canada) Inc. (an affiliate) directly or through its beginning of period (2) $25.52 $30.19 $25.98 $28.61 $24.50 $24.79 division, HSBC InvestDirect. We pay distribution and servicing Increase fees to them based on the amount of assets held in the (decrease) from investor’s account, and additionally, in some cases, on the operations: amount of the initial purchase. If you hold units of this Fund Total revenue 0.92 0.93 0.79 0.72 0.74 0.77 Total expenses (0.33) (0.73) (0.71) (0.62) (0.68) (0.60) and/or other HSBC Mutual Funds in a registered plan with HSBC Realized gains (losses) 0.20 0.97 1.95 2.37 1.30 2.25 Investment Funds (Canada) Inc., they may charge you an annual Unrealized gains fee to cover the annual administration costs of the plan. We (losses) 1.23 (5.58) 2.29 (5.15) 2.92 (2.63) permit HSBC Investment Funds (Canada) Inc. to collect these Total increase fees by redeeming sufficient units of the Fund with the highest (decrease) from operations (2) $2.02 $(4.41) $4.32 $(2.68) $4.28 $(0.21) market value in your registered plan. Distributions to Financial Highlights unitholders: From net investment The following tables show selected key financial information income (excluding about the Fund and are intended to help you understand the dividends) – – – – – – Fund’s financial performance for the six-month period ended From dividends – (0.21) (0.06) (0.14) (0.11) (0.17) June 30, 2019, and for the last five years ended December 31, From capital gains – – – – – – Return of capital – – – – – – as applicable. In the year a fund is established, “period” Total annual represents the period from inception to December 31 or June 30 distributions (2,3) $– $(0.21) $(0.06) $(0.14) $(0.11) $(0.17) of that fiscal year, as applicable. This information is derived from Net assets per unit, the Fund’s unaudited semi-annual financial statements and the end of period (2) $27.51 $25.52 $30.19 $25.98 $28.61 $24.50 audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net Ratios and Supplemental Data assets from operations being based on average units June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, outstanding during the period and all other numbers being 2019 2018 2017 2016 2015 2014 based on actual units outstanding at the relevant point in time. Net Asset Value (in 000s) (4) $29,471 $29,204 $35,634 $34,746 $42,693 $39,841 Number of units outstanding (in 000s) (4) 1,071 1,144 1,181 1,337 1,492 1,626 Management expense ratio ("MER") (5) 2.53% 2.47% 2.47% 2.41% 2.44% 2.40% MER before waivers or absorptions (5) 2.53% 2.47% 2.47% 2.41% 2.44% 2.40% Trading expense ratio (6) 0.04% 0.06% 0.22% 0.36% 0.14% 0.17% Portfolio turnover rate (7) 7.83% 28.39% 44.82% 105.18% 45.64% 50.18% Net Asset Value per unit (4) $27.51 $25.52 $30.19 $25.98 $28.61 $24.50

2 HSBC European Fund

HSBC European Fund – Advisor Series – Net HSBC European Fund – Premium Series – Net Assets per Unit(1) Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $13.12 $15.55 $13.42 $14.19 $12.19 $12.33 beginning of period (2) $15.20 $18.02 $15.50 $17.08 $14.62 $14.79 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.48 0.50 0.42 0.43 0.37 0.39 Total revenue 0.55 0.57 0.43 0.45 0.46 0.47 Total expenses (0.17) (0.40) (0.40) (0.04) (0.37) (0.30) Total expenses (0.16) (0.34) (0.33) (0.29) (0.31) (0.27) Realized gains (losses) 0.10 0.62 1.05 1.08 0.63 1.07 Realized gains (losses) 0.12 0.60 1.04 1.46 0.70 1.42 Unrealized gains Unrealized gains (losses) 0.61 (1.97) 1.20 (2.81) 1.37 (1.49) (losses) 0.76 (3.67) 1.34 (3.16) 1.48 (1.97) Total increase Total increase (decrease) from (decrease) from operations (2) $1.02 $(1.25) $2.27 $(1.34) $2.00 $(0.33) operations (2) $1.27 $(2.84) $2.48 $(1.54) $2.33 $(0.35) Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends – (0.12) (0.03) (0.08) (0.06) (0.08) From dividends – (0.25) (0.14) (0.17) (0.16) (0.19) Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $(0.12) $(0.03) $(0.08) $(0.06) $(0.08) distributions (2,3) $– $(0.25) $(0.14) $(0.17) $(0.16) $(0.19) Net assets per unit, Net assets per unit, end of period (2) $14.14 $13.12 $15.55 $13.42 $14.19 $12.19 end of period (2) $16.43 $15.20 $18.02 $15.50 $17.08 $14.62

3 HSBC European Fund

HSBC European Fund – Manager Series – Net HSBC European Fund – Institutional Series – Assets per Unit(1) Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018* 2017* 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $– $– $9.87 $10.76 $9.24 $10.00 beginning of period (2) $10.03 $11.90 $10.27 $11.33 $9.71 $10.00 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.18 – 0.03 0.26 0.28 0.10 Total revenue 0.37 0.37 0.32 0.32 0.25 0.30 Total expenses (0.03) – 0.03 (0.16) (0.17) (0.07) Total expenses (0.03) (0.06) (0.06) (0.04) (0.04) (0.02) Realized gains (losses) 0.02 – 0.14 0.66 0.46 0.66 Realized gains (losses) 0.08 0.39 0.80 1.03 0.50 0.96 Unrealized gains Unrealized gains (losses) (0.49) – 0.02 (3.34) 1.02 (1.17) (losses) 0.46 (2.25) 0.90 (2.33) 1.04 (1.41) Total increase Total increase (decrease) from (decrease) from operations (2) $(0.32) $– $0.22 $(2.58) $1.59 $(0.48) operations (2) $0.88 $(1.55) $1.96 $(1.02) $1.75 $(0.17) Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends – – – (0.16) (0.16) (0.17) From dividends – (0.32) (0.29) (0.28) (0.29) (0.28) Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $– $– $(0.16) $(0.16) $(0.17) distributions (2,3) $– $(0.32) $(0.29) $(0.28) $(0.29) $(0.28) Net assets per unit, Net assets per unit, end of period (2) $9.69 $– $– $9.87 $10.76 $9.24 end of period (2) $10.92 $10.03 $11.90 $10.27 $11.33 $9.71

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018* 2017* 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $5 $– $– $11 $51 $39 000s) (4) $269 $251 $287 $328 $761 $385 Number of units Number of units outstanding (in 000s) (4) 1 – – 1 5 4 outstanding (in 000s) (4) 25 25 24 32 67 40 Management expense Management expense ratio ("MER") (5) 1.47% – 0.00% 1.62% 1.61% 1.32% ratio ("MER") (5) 0.51% 0.53% 0.54% 0.39% 0.39% 0.22% MER before waivers or MER before waivers or absorptions (5) 11.78% – 8.78% 6.00% 2.51% 1.32% absorptions (5) 0.55% 0.62% 0.56% 0.39% 0.39% 0.22% Trading expense ratio (6) 0.04% – 0.22% 0.36% 0.14% 0.17% Trading expense ratio (6) 0.04% 0.06% 0.22% 0.36% 0.14% 0.17% Portfolio turnover rate (7) 7.83% – 44.82% 105.18% 45.64% 50.18% Portfolio turnover rate (7) 7.83% 28.39% 44.82% 105.18% 45.64% 50.18% Net Asset Value per Net Asset Value per unit (4) $9.69 $– $– $9.87 $10.76 $9.24 unit (4) $10.92 $10.03 $11.90 $10.27 $11.33 $9.71 * The Manager Series was fully redeemed during 2017 & 2018; (1) This information is derived from the Fund’s unaudited semi-annual however, it remains in offer as at period-end. financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC European Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the including differences in management fees and expenses. The end of the period. The MER may vary from one mutual fund to Fund’s past performance does not necessarily indicate how it another and from one series of units to another. We may have will perform in the future. waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the Year-by-Year Returns discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns – Investor Series higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 60% and the performance of the Fund. The rate is calculated based on 40% 32.6% the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding 20% 15.3% 16.9% 17.3% 16.4% short-term securities. 7.8% 0% -3.8% -0.5% Management Fees -8.7% -20% -13.0% -14.7% For the six months ended June 30, 2019, the Fund paid us management fees of $336,929. The management fee for each -40% series is calculated as a percentage of the daily net asset value -60% for that series. The fees are reduced, where required, so that Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Returns – Advisor Series The Fund’s management fees were used by us to pay costs for For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 60% making brokerage arrangements for the purchase and sale of 40% 32.6% the investment portfolio and providing other services. The 20% 15.3% 16.9% 16.9% 16.1% management fees also funded commission payments and other 7.8% compensation (collectively “distribution costs”) to sales 0% representatives and registered dealers and brokers, including -3.8% -0.5% -4.9% HSBC Investment Funds (Canada) Inc., for units of the Fund -20% -13.0% -14.9% bought and held by unitholders. Finally, we used management -40% fees to pay for additional marketing and distribution services to -60% the Fund. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for the Fund, such distribution costs represented 38% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC European Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 60% Sector Mix 40% 33.4% Percentage 18.0% 17.9% 20% 17.1% of NAV 8.1% 0.1% Financials 20.93% 0% Industrials 17.08% -8.2% -20% -12.4% -14.2% Health Care 11.88% Consumer Staples 9.71% -40% Communication Services 9.12% Materials 9.07% -60% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Energy 8.11% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Consumer Discretionary 4.82% Information Technology 4.65% Returns – Manager Series Utilities 2.77% For the 12-month periods ended December 31 and the Cash & Equivalents 1.86% six-month period ended June 30, 2019 Total 100.00% 40%

> 30% Geographic Mix 20% 16.5% 18.2% Percentage of NAV 10% France 22.26% 0% United Kingdom 22.01% -2.8% -10% -6.8% Germany 18.39% -12.0% Netherlands 9.19% -20% Switzerland 7.86% -30% Italy 5.23% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012* 2013* 2014* 2015 2016 2017* 2018* 2019* Spain 4.76% Jersey 1.60% * The Manager Series was fully redeemed during 2012. There were no Belgium 1.33% unitholders during the years of 2013 and 2014. The series was fully Sweden 1.26% redeemed since 2017; however, the series remains in offer as at period- Austria 1.23% end. Ireland 1.08% Denmark 0.87% Returns – Institutional Series Luxembourg 0.71% For the 12-month periods ended December 31 and the Finland 0.36% six-month period ended June 30, 2019 Cash & Equivalents 1.86% 40% Total 100.00% 30% 19.7% 18.7% 20% 17.8% 8.9% 10% 0%

-10% -6.9% -20% -13.0% -30% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010* 2011* 2012* 2013* 2014* 2015 2016 2017 2018 2019

* The Institutional Series was fully redeemed during 2010. There were no unitholders during the years of 2011 to 2014.

6 HSBC European Fund

Top 25 Holdings Percentage of NAV

Novartis AG 3.62% Royal Dutch Shell PLC, Class A 3.18% Enel SpA 2.77% Reckitt Benckiser Group PLC 2.43% Heineken NV 2.33% Allianz SE 2.26% Prudential PLC 2.23% Siemens AG 2.13% AXA SA 2.10% Bayer AG 2.10% AstraZeneca PLC 2.07% Capgemini SE 2.05% Deutsche Post AG 2.01% Deutsche Telekom AG 1.98% Koninklijke Philips NV 1.98% BP PLC 1.97% HeidelbergCement AG 1.84% Orange SA 1.83% Rio Tinto PLC 1.77% Banco Santander SA 1.75% Total SA 1.73% ING Groep NV 1.70% SAP SE 1.66% Ferguson PLC 1.60% Nestle SA 1.60% Total of Top 25 Holdings 52.69%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC AsiaPacific Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC AsiaPacific Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the and both sides raising tariffs – triggered a widespread sell-off. Fund; we, us and our refer to HSBC Global Asset Management The market in Asia rebounded strongly in the last month of the (Canada) Limited; and the Fund refers to the HSBC quarter, driven by expectations of aggressive US Federal AsiaPacific Fund. Reserve easing in the second half of the year and the potential We are the manager, trustee and primary investment advisor of delay of additional US tariffs on Chinese goods. the Fund. We have entered into a sub-advisory agreement with The Fund’s stock selections in China and Thailand contributed to HSBC Global Asset Management (Hong Kong) Limited, under performance, while selections in India and Australia had a which HSBC Global Asset Management (Hong Kong) Limited negative impact. In particular, the share price of an Indian provides investment advice and portfolio management services pharmaceutical company fell after the US Food and Drug to the Fund. For an explanation of the relationship between us Administration delayed the launch of one of the company’s and the sub-advisor, see the section Selection of Sub-Advisors in drugs due to deficiencies in its manufacturing facilities. the Fund’s Simplified Prospectus. Recent Developments Introduction After a strong rebound in the first half of the year, valuations This Interim Management Report of Fund Performance contains have returned to their mean levels. Looking ahead, it remains to financial highlights but does not contain either the semi-annual be seen if corporate earnings pick up to justify valuations. financial report or annual financial statements of the investment fund. You may obtain a copy of the Fund’s semi-annual financial The portfolio management team believes market performance in report or annual financial statements at your request, at no cost, the second half of the year will be in line with earnings trends by calling us toll-free at 1-888-390-3333, by visiting our website and that growth stocks will outperform. Potential negative at www.assetmanagement.hsbc.ca, by visiting the SEDAR surprises from trade negotiations remain a key risk to the Asian website at www.sedar.com or by writing to us at: market. Nevertheless, the current macro backdrop is quite Corporate Secretary different from 2018, particularly with central banks capitulating HSBC Global Asset Management (Canada) Limited to a more accommodative stance. 3rd Floor, 885 West Georgia Street On the growth front, China has launched a string of favourable Vancouver, BC V6C 3E8 polices since Q3 2018 and the overall growth profile in the You may also contact us using one of these methods to request a region looks much better in 2019 than it did in 2018. Looking copy of the Fund’s proxy voting policies and procedures, proxy ahead, increasing volatility could become a feature if political voting disclosure record or quarterly statement of investment and policy uncertainty remain elevated. Bottom-up stock portfolio. selection remains key to outperformance.

Results of Operations Related Party Transactions As of June 30, 2019, the Fund's net assets increased by 4.0% to We, on behalf of the Fund, in our role as fund manager, may, $38.6 million from $37.1 million at the end of 2018. Positive from time to time, enter into transactions or arrangements with investment performance, partially offset by net withdrawals, or involving other members of the HSBC Group or other people resulted in an overall increase in net asset value. or companies related or connected to us or the Fund. To proceed with the transactions, the Fund relies on the positive Investment Performance recommendation of the Fund’s Independent Review Committee. A The HSBC AsiaPacific Fund (Investor Series) rose 5.77% for the condition of this positive recommendation is that the transactions six months ending June 30, 2019, while the benchmark MSCI All Country Asia Pacific ex-Japan Net Index (C$) rose 7.39% are performed in accordance with our policy on Related Party over the same period. The Fund’s returns are after the deduction Transactions. For more general information on persons related to of fees and expenses, while the benchmark’s returns do not the Fund and the types of potential transactions, see the Fund’s include any costs of investing. See the Past Performance section Simplified Prospectus. for the returns of other series of the Fund, which may vary due The following is a summary of current transactions and to differences in management fees and expenses. arrangements with entities that are related to us or the Fund. Market performance was very strong in the first four months of the year, driven mostly by the dovish tilt of the US Federal Manager, Trustee and Investment Advisor Reserve, which sparked a risk-on sentiment among investors. We are the manager, trustee and primary investment advisor of Elsewhere, domestic easing policies in China and easing the Fund. As manager, we manage the overall business and US-China trade tension also supported market sentiment. operations of the Fund. As trustee, we hold legal title to the However, in May, the unexpected intensification of the property of the Fund on your behalf. As primary investment US-China trade war – with trade negotiations breaking down advisor, we provide investment advice and portfolio

1 HSBC AsiaPacific Fund management services to the Fund. We receive a fee from the assets from operations being based on average units Fund for these services based on assets under management, outstanding during the period and all other numbers being calculated daily and paid monthly. based on actual units outstanding at the relevant point in time.

We have entered into a sub-advisory agreement with HSBC Global Asset Management (Hong Kong) Limited (an affiliate), HSBC AsiaPacific Fund – Investor Series – Net under which HSBC Global Asset Management (Hong Assets per Unit(1) Kong) Limited provides investment advice and portfolio Period ended June 30, 2019, and years ended December 31 management services to the Fund. We pay HSBC Global Asset June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Management (Hong Kong) Limited an investment advisory fee 2019 2018 2017 2016 2015 2014 from the Fund based on assets under management, calculated Net assets per unit, daily and paid quarterly. For more information on our ability to beginning of period (2) $16.26 $18.49 $14.50 $14.08 $13.60 $12.36 hire sub-advisors, see the section Organization and Management Increase of the HSBC Mutual Funds in the Fund’s Simplified Prospectus. (decrease) from operations: Total revenue 0.29 0.46 0.42 0.37 0.45 0.44 Distribution Services Total expenses (0.22) (0.48) (0.44) (0.34) (0.37) (0.33) The Fund is distributed through us, HSBC Investment Funds Realized gains (losses) 0.71 0.73 1.90 0.66 1.24 1.44 (Canada) Inc. (our wholly owned subsidiary and affiliate) and Unrealized gains HSBC Securities (Canada) Inc. (an affiliate) directly or through its (losses) 0.19 (2.94) 2.12 (0.25) (0.46) (0.15) division, HSBC InvestDirect. We pay distribution and servicing Total increase fees to them based on the amount of assets held in the (decrease) from operations (2) $0.97 $(2.23) $4.00 $0.44 $0.86 $1.40 investor’s account, and additionally, in some cases, on the amount of the initial purchase. If you hold units of this Fund Distributions to unitholders: and/or other HSBC Mutual Funds in a registered plan with HSBC From net investment Investment Funds (Canada) Inc., they may charge you an annual income (excluding fee to cover the annual administration costs of the plan. We dividends) – – – – – – From dividends – – – (0.05) (0.33) (0.11) permit HSBC Investment Funds (Canada) Inc. to collect these From capital gains – – – – – – fees by redeeming sufficient units of the Fund with the highest Return of capital – – – – – – market value in your registered plan. Total annual distributions (2,3) $– $– $– $(0.05) $(0.33) $(0.11) Related Brokerage Commissions Net assets per unit, From time to time, the Fund may enter into purchases and sales end of period (2) $17.20 $16.26 $18.49 $14.50 $14.08 $13.60 of securities, derivative instruments, foreign exchange contracts or other instruments with The Hongkong & Shanghai Banking Corporation Limited, HSBC Securities (Asia) Ltd. or other dealers Ratios and Supplemental Data that are members of the HSBC Group (“Related Brokers”). These June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Related Brokers may earn commissions or spreads provided 2019 2018 2017 2016 2015 2014 that such trades are made on terms and conditions comparable Net Asset Value (in to those offered by or to unrelated parties. During the period 000s) (4) $32,273 $31,260 $36,527 $31,259 $33,791 $34,685 Number of units ended June 30, 2019, the Fund paid commissions to Related outstanding (in 000s) (4) 1,876 1,922 1,975 2,155 2,400 2,550 Brokers amounting to $1,471 (June 30, 2018 – $397). Management expense ratio ("MER") (5) 2.66% 2.70% 2.60% 2.49% 2.51% 2.49% Financial Highlights MER before waivers or absorptions (5) 2.66% 2.72% 2.60% 2.49% 2.51% 2.49% The following tables show selected key financial information Trading expense ratio (6) 0.30% 0.23% 0.24% 0.28% 0.21% 0.25% about the Fund and are intended to help you understand the Portfolio turnover rate (7) 41.72% 61.69% 60.27% 64.98% 47.80% 56.07% Fund’s financial performance for the six-month period ended Net Asset Value per June 30, 2019, and for the last five years ended December 31, unit (4) $17.20 $16.26 $18.49 $14.50 $14.08 $13.60 as applicable. In the year a fund is established, “period” represents the period from inception to December 31 or June 30 of that fiscal year, as applicable. This information is derived from the Fund’s unaudited semi-annual financial statements and the audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net

2 HSBC AsiaPacific Fund

HSBC AsiaPacific Fund – Advisor Series – Net HSBC AsiaPacific Fund – Premium Series – Net Assets per Unit(1) Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $22.82 $25.97 $20.41 $18.67 $17.54 $15.85 beginning of period (2) $14.43 $16.32 $12.74 $12.36 $11.94 $10.85 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.38 0.64 0.60 0.93 0.60 0.76 Total revenue 0.27 0.43 0.37 0.32 0.40 0.37 Total expenses (0.31) (0.70) (0.68) (0.53) (0.53) (0.44) Total expenses (0.16) (0.34) (0.32) (0.23) (0.25) (0.23) Realized gains (losses) 0.91 1.06 2.63 0.78 1.77 1.88 Realized gains (losses) 0.65 0.71 1.74 0.63 1.15 1.30 Unrealized gains Unrealized gains (losses) 0.72 (3.27) 2.28 (2.70) 3.97 – (losses) 0.06 (2.88) 1.62 (0.16) (0.31) (0.34) Total increase Total increase (decrease) from (decrease) from operations (2) $1.70 $(2.27) $4.83 $(1.52) $5.81 $2.20 operations (2) $0.82 $(2.08) $3.41 $0.56 $0.99 $1.10 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends – – – (0.05) (0.13) (0.07) From dividends – – – (0.11) (0.35) (0.16) Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $– $– $(0.05) $(0.13) $(0.07) distributions (2,3) $– $– $– $(0.11) $(0.35) $(0.16) Net assets per unit, Net assets per unit, end of period (2) $24.14 $22.82 $25.97 $20.41 $18.67 $17.54 end of period (2) $15.30 $14.43 $16.32 $12.74 $12.36 $11.94

3 HSBC AsiaPacific Fund

HSBC AsiaPacific Fund – Manager Series – Net HSBC AsiaPacific Fund – Institutional Series – Assets per Unit(1) Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $25.59 $28.79 $22.49 $21.56 $20.87 $18.97 beginning of period (2) $23.35 $25.97 $20.28 $19.70 $19.03 $17.30 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.48 0.74 0.66 0.53 0.69 0.67 Total revenue 0.42 0.65 0.60 0.53 0.61 0.63 Total expenses (0.20) (0.46) (0.43) (0.04) (0.36) (0.29) Total expenses (0.06) (0.13) (0.12) (0.07) (0.07) (0.06) Realized gains (losses) 1.15 1.12 2.99 1.11 1.89 2.23 Realized gains (losses) 1.02 0.98 2.67 0.94 1.64 2.05 Unrealized gains Unrealized gains (losses) 0.16 (5.34) 3.07 (0.68) (0.79) (0.22) (losses) 0.25 (4.38) 3.09 (0.13) (0.37) (0.36) Total increase Total increase (decrease) from (decrease) from operations (2) $1.59 $(3.94) $6.29 $0.92 $1.43 $2.39 operations (2) $1.63 $(2.88) $6.24 $1.27 $1.81 $2.26 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends – – (0.16) (0.33) (0.74) (0.39) From dividends – – (0.43) (0.53) (0.90) (0.57) Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $– $(0.16) $(0.33) $(0.74) $(0.39) distributions (2,3) $– $– $(0.43) $(0.53) $(0.90) $(0.57) Net assets per unit, Net assets per unit, end of period (2) $27.21 $25.59 $28.79 $22.49 $21.56 $20.87 end of period (2) $24.96 $23.35 $25.97 $20.28 $19.70 $19.03

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $160 $126 $82 $62 $32 $30 000s) (4) $1,428 $1,434 $1,387 $1,247 $1,539 $1,303 Number of units Number of units outstanding (in 000s) (4) 653311outstanding (in 000s) (4) 57 61 53 62 78 68 Management expense Management expense ratio ("MER") (5) 1.56% 1.66% 1.64% 0.21% 1.63% 1.39% ratio ("MER") (5) 0.51% 0.53% 0.48% 0.36% 0.35% 0.31% MER before waivers or MER before waivers or absorptions (5) 2.06% 2.43% 2.79% 3.97% 3.35% 1.39% absorptions (5) 0.52% 0.62% 0.48% 0.36% 0.35% 0.31% Trading expense ratio (6) 0.30% 0.23% 0.24% 0.28% 0.21% 0.25% Trading expense ratio (6) 0.30% 0.23% 0.24% 0.28% 0.21% 0.25% Portfolio turnover rate (7) 41.72% 61.69% 60.27% 64.98% 47.80% 56.07% Portfolio turnover rate (7) 41.72% 61.69% 60.27% 64.98% 47.80% 56.07% Net Asset Value per Net Asset Value per unit (4) $27.21 $25.59 $28.79 $22.49 $21.56 $20.87 unit (4) $24.96 $23.35 $25.97 $20.28 $19.70 $19.03 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC AsiaPacific Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the including differences in management fees and expenses. The end of the period. The MER may vary from one mutual fund to Fund’s past performance does not necessarily indicate how it another and from one series of units to another. We may have will perform in the future. waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the Year-by-Year Returns discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns – Investor Series higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 60% and the performance of the Fund. The rate is calculated based on 42.3% the lesser of purchases or sales of securities divided by the average 40% 27.5% weighted market value of the portfolio securities, excluding short-term securities. 20% 10.5% 11.9% 10.9% 5.6% 5.9% 3.4% 5.8% Management Fees 0% For the six months ended June 30, 2019, the Fund paid us -20% -12.0% management fees of $357,941. The management fee for each -20.2% series is calculated as a percentage of the daily net asset value -40% for that series. The fees are reduced, where required, so that Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Returns – Advisor Series The Fund’s management fees were used by us to pay costs for For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 60% making brokerage arrangements for the purchase and sale of 42.2% the investment portfolio and providing other services. The 40% 27.3% management fees also funded commission payments and other 20% 10.5% 11.9% 11.1% 9.6% compensation (collectively “distribution costs”) to sales 5.5% 7.2% 5.8% representatives and registered dealers and brokers, including 0% HSBC Investment Funds (Canada) Inc., for units of the Fund bought and held by unitholders. Finally, we used management -20% -12.1% -19.4% fees to pay for additional marketing and distribution services to -40% the Fund. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for the Fund, such distribution costs represented 43% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC AsiaPacific Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 60% Sector Mix 40% Percentage 28.1% of NAV 20% 12.5% 11.5% Financials 23.53% 6.2% 6.5% 4.0% 6.0% Information Technology 17.83% 0% Consumer Discretionary 15.66% Communication Services 13.39% -20% -11.6% -19.3% Energy 6.65% Materials 5.08% -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Health Care 4.48% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Industrials 3.82% Consumer Staples 3.34% Returns – Manager Series Utilities 2.88% For the 12-month periods ended December 31 and the Real Estate 2.08% six-month period ended June 30, 2019 Cash & Equivalents 1.26% Total 100.00% 60% 43.7% 40% > 28.7% Geographic Mix Percentage 20% 11.9% 13.2% 12.1% 6.8% 6.8% 5.8% 6.3% of NAV 0% China 22.07% India 11.68% -20% -11.1% Hong Kong 11.64% -19.4% South Korea 11.29% -40% Australia 10.78% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Taiwan 8.94% Cayman Islands 7.94% Luxembourg 6.35% Returns – Institutional Series Indonesia 5.06% For the 12-month periods ended December 31 and the Papua New Guinea 1.63% six-month period ended June 30, 2019 Malaysia 1.36% 60% Singapore 0.00% 45.2% Cash & Equivalents 1.26% 40% 30.2% Total 100.00%

20% 12.9% 14.4% 13.3% 7.9% 8.2% 5.6% 6.9% 0%

-20% -10.1% -18.5% -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

6 HSBC AsiaPacific Fund

Top 25 Holdings Percentage of NAV

Tencent Holdings Ltd. 5.38% AIA Group Ltd. 5.28% Taiwan Semiconductor Manufacturing Co., Ltd. 3.83% Commonwealth Bank of Australia 3.48% Glenmark Pharmaceuticals Ltd. 3.47% L'Occitane International SA 3.46% Samsung Electronics Co., Ltd. 3.28% Samsung Electro-Mechanics Co., Ltd. 3.10% Samsonite International SA 2.89% Vipshop Holdings Ltd. 2.83% BOC Hong Kong (Holdings) Ltd. 2.75% Sea Ltd. 2.31% Telekomunikasi Indonesia Persero Tbk PT 2.30% Yageo Corp. 2.17% Ping An Insurance (Group) Co. of China Ltd. 2.16% MediaTek Inc. 2.10% DLF Ltd. 2.08% CNOOC Ltd. 2.06% Alibaba Group Holding Ltd., ADR 2.03% BHP Group Ltd. 1.94% China State Construction International Holdings Ltd. 1.92% Macquarie Group Ltd. 1.78% Challenger Ltd. 1.74% BNK Financial Group Inc. 1.73% Xinyi Glass Holdings Ltd. 1.69% Total of Top 25 Holdings 67.76%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Chinese Equity Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Chinese Equity Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Trump raised tariffs on $200 billion of Chinese goods from 10% Fund; we, us and our refer to HSBC Global Asset Management to 25% and banned Chinese tech giant Huawei. Domestic data (Canada) Limited; and the Fund refers to the HSBC Chinese for April and May came in mixed, suggesting growth has not yet Equity Fund. fully bottomed out. We are the manager, trustee and primary investment advisor of The Fund’s stock selections in the real estate and consumer the Fund. We have entered into a sub-advisory agreement with discretionary sectors were key drags on performance in the first HSBC Global Asset Management (Hong Kong) Limited, under half of 2019. which HSBC Global Asset Management (Hong Kong) Limited provides investment advice and portfolio management services Recent Developments to the Fund. For an explanation of the relationship between us Easing US-China trade tensions could bode well for investors’ and the sub-advisor, see the section Selection of Sub-Advisors in risk appetite and trigger a short-term recovery in market the Fund’s Simplified Prospectus. sentiment. Over the long term, however, domestic growth and policy support will play a more important role. The ongoing Introduction cyclical recovery should continue as the accommodative policy This Interim Management Report of Fund Performance contains stance and effects of macro policy support continue to feed financial highlights but does not contain either the semi-annual through. Nevertheless, pressure on trade talks, economic financial report or annual financial statements of the investment growth and deleveraging remain key risks to the market. As fund. You may obtain a copy of the Fund’s semi-annual financial investors shift their focus to corporate earnings, companies with report or annual financial statements at your request, at no cost, strong fundamentals and growth are expected to outperform. by calling us toll-free at 1-888-390-3333, by visiting our website Although short-term uncertainties arising from trade tensions at www.assetmanagement.hsbc.ca, by visiting the SEDAR could introduce more volatility, this could also create mispricing website at www.sedar.com or by writing to us at: opportunities that disciplined investors can capture. Corporate Secretary The portfolio management team is overweight in the consumer HSBC Global Asset Management (Canada) Limited discretionary and consumer staples sectors and underweight in 3rd Floor, 885 West Georgia Street communication and industrials. Vancouver, BC V6C 3E8 Related Party Transactions You may also contact us using one of these methods to request a We, on behalf of the Fund, in our role as fund manager, may, copy of the Fund’s proxy voting policies and procedures, proxy from time to time, enter into transactions or arrangements with voting disclosure record or quarterly statement of investment or involving other members of the HSBC Group or other people portfolio. or companies related or connected to us or the Fund. To proceed Results of Operations with the transactions, the Fund relies on the positive recommendation of the Fund’s Independent Review Committee. A As of June 30, 2019, the Fund's net assets increased by 5.9% to condition of this positive recommendation is that the transactions $171.0 million from $161.4 million at the end of 2018. Positive are performed in accordance with our policy on Related Party investment performance, partially offset by net withdrawals, Transactions. For more general information on persons related to resulted in an overall increase in net asset value. the Fund and the types of potential transactions, see the Fund’s Investment Performance Simplified Prospectus. The HSBC Chinese Equity Fund (Investor Series) rose 6.31% for The following is a summary of current transactions and the six months ending June 30, 2019, while the benchmark arrangements with entities that are related to us or the Fund. MSCI China 10/40 Net Index (C$) rose 7.68% over the same period. The Fund’s returns are after the deduction of fees and Manager, Trustee and Investment Advisor expenses, while the benchmark’s returns do not include any We are the manager, trustee and primary investment advisor of costs of investing. See the Past Performance section for the the Fund. As manager, we manage the overall business and returns of other series of the Fund, which may vary due to operations of the Fund. As trustee, we hold legal title to the differences in management fees and expenses. property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio Offshore Chinese equities rallied in the first four months of 2019, management services to the Fund. We receive a fee from the driven by positive progress on US-China trade talks, a more Fund for these services based on assets under management, dovish tone from the US Federal Reserve and strong domestic calculated daily and paid monthly. policy support, including the RRR cut, relaxation of the SME loan definition and introduction of new quotas for local We have entered into a sub-advisory agreement with HSBC government debt. However, the market fell in May with the Global Asset Management (Hong Kong) Limited (an affiliate), renewal of US-China trade tensions after US President Donald under which HSBC Global Asset Management (Hong

1 HSBC Chinese Equity Fund

Kong) Limited provides investment advice and portfolio HSBC Chinese Equity Fund – Investor Series – management services to the Fund. We pay HSBC Global Asset Net Assets per Unit(1) Management (Hong Kong) Limited an investment advisory fee Period ended June 30, 2019, and years ended December 31 from the Fund based on assets under management, calculated June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, daily and paid quarterly. For more information on our ability to 2019 2018 2017 2016 2015 2014 hire sub-advisors, see the section Organization and Management Net assets per unit, of the HSBC Mutual Funds in the Fund’s Simplified Prospectus. beginning of period (2) $29.56 $34.59 $24.66 $26.24 $24.10 $20.39 Increase Distribution Services (decrease) from The Fund is distributed through us, HSBC Investment Funds operations: (Canada) Inc. (our wholly owned subsidiary and affiliate) and Total revenue 0.27 0.90 0.57 0.60 0.77 0.57 Total expenses (0.41) (0.88) (0.78) (0.62) (0.70) (0.54) HSBC Securities (Canada) Inc. (an affiliate) directly or through its Realized gains (losses) 0.66 1.33 4.42 (0.14) 4.40 2.27 division, HSBC InvestDirect. We pay distribution and servicing Unrealized gains fees to them based on the amount of assets held in the (losses) 1.36 (6.12) 5.83 (1.54) (1.75) 1.14 investor’s account, and additionally, in some cases, on the Total increase amount of the initial purchase. If you hold units of this Fund (decrease) from operations (2) $1.88 $(4.77) $10.04 $(1.70) $2.72 $3.44 and/or other HSBC Mutual Funds in a registered plan with HSBC Investment Funds (Canada) Inc., they may charge you an annual Distributions to unitholders: fee to cover the annual administration costs of the plan. We From net investment permit HSBC Investment Funds (Canada) Inc. to collect these income (excluding fees by redeeming sufficient units of the Fund with the highest dividends) – – – – – – market value in your registered plan. From dividends – – – – (0.09) (0.03) From capital gains – – – – – – Return of capital – – – – – – Related Brokerage Commissions Total annual From time to time, the Fund may enter into purchases and sales distributions (2,3) $– $– $– $– $(0.09) $(0.03) of securities, derivative instruments, foreign exchange contracts Net assets per unit, or other instruments with The Hongkong & Shanghai Banking end of period (2) $31.42 $29.56 $34.59 $24.66 $26.24 $24.10 Corporation Limited, HSBC Securities (Asia) Ltd. or other dealers that are members of the HSBC Group (“Related Brokers”). These Related Brokers may earn commissions or spreads provided Ratios and Supplemental Data that such trades are made on terms and conditions comparable June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, to those offered by or to unrelated parties. During the period 2019 2018 2017 2016 2015 2014 ended June 30, 2019, the Fund paid commissions to Related Net Asset Value (in Brokers amounting to $14,818 (June 30, 2018 - $24,250). 000s) (4) $130,663 $123,879 $158,292 $128,747 $156,131 $170,790 Number of units outstanding (in 000s) (4) 4,158 4,191 4,576 5,221 5,950 7,086 Financial Highlights Management expense The following tables show selected key financial information ratio ("MER") (5) 2.65% 2.63% 2.61% 2.59% 2.57% 2.62% about the Fund and are intended to help you understand the MER before waivers or Fund’s financial performance for the six-month period ended absorptions (5) 2.65% 2.63% 2.61% 2.59% 2.57% 2.62% Trading expense June 30, 2019, and for the last five years ended December 31, ratio (6) 0.72% 0.55% 0.36% 0.33% 0.42% 0.57% as applicable. In the year a fund is established, “period” Portfolio turnover represents the period from inception to December 31 or June 30 rate (7) 103.46% 149.85% 88.19% 79.53% 112.64% 99.24% Net Asset Value per of that fiscal year, as applicable. This information is derived from unit (4) $31.42 $29.56 $34.59 $24.66 $26.24 $24.10 the Fund’s unaudited semi-annual financial statements and the audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net assets from operations being based on average units outstanding during the period and all other numbers being based on actual units outstanding at the relevant point in time.

2 HSBC Chinese Equity Fund

HSBC Chinese Equity Fund – Advisor Series – HSBC Chinese Equity Fund – Premium Series – Net Assets per Unit(1) Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $29.94 $35.04 $25.01 $26.57 $24.41 $20.64 beginning of period (2) $16.87 $19.63 $13.91 $14.80 $13.59 $11.50 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.27 0.95 0.53 0.68 0.83 0.65 Total revenue 0.16 0.52 0.33 0.35 0.49 0.36 Total expenses (0.42) (0.93) (0.84) (0.66) (0.75) (0.56) Total expenses (0.18) (0.39) (0.34) (0.27) (0.31) (0.24) Realized gains (losses) 0.74 1.27 4.74 (0.17) 4.63 2.33 Realized gains (losses) 0.37 0.62 2.48 (0.03) 2.20 1.27 Unrealized gains Unrealized gains (losses) 1.94 (3.69) 5.83 (1.01) (1.33) 0.20 (losses) 0.85 (3.70) 3.35 (0.70) (2.19) 0.84 Total increase Total increase (decrease) from (decrease) from operations (2) $2.53 $(2.40) $10.26 $(1.16) $3.38 $2.62 operations (2) $1.20 $(2.95) $5.82 $(0.65) $0.19 $2.23 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends ––––(0.08)(0.02) From dividends – – – (0.08) (0.13) (0.09) Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $– $– $– $(0.08) $(0.02) distributions (2,3) $– $– $– $(0.08) $(0.13) $(0.09) Net assets per unit, Net assets per unit, end of period (2) $31.82 $29.94 $35.04 $25.01 $26.57 $24.41 end of period (2) $17.99 $16.87 $19.63 $13.91 $14.80 $13.59

3 HSBC Chinese Equity Fund

HSBC Chinese Equity Fund – Manager Series – HSBC Chinese Equity Fund – Institutional Series Net Assets per Unit(1) – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $32.53 $37.74 $26.71 $28.56 $26.30 $22.26 beginning of period (2) $36.81 $42.05 $29.26 $31.16 $28.60 $24.20 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.31 1.05 0.58 0.67 0.87 0.66 Total revenue 0.36 0.89 0.67 0.73 0.94 0.69 Total expenses (0.28) (0.65) (0.62) (0.52) (0.54) (0.35) Total expenses (0.04) (0.08) (0.06) (0.05) (0.04) (0.04) Realized gains (losses) 0.58 1.56 5.18 – 5.36 2.50 Realized gains (losses) 0.74 2.31 5.51 (0.19) 5.06 2.74 Unrealized gains Unrealized gains (losses) 2.14 (7.15) 5.07 (1.41) (1.89) 0.78 (losses) 1.54 (7.98) 6.73 (2.18) (2.79) 1.74 Total increase Total increase (decrease) from (decrease) from operations (2) $2.75 $(5.19) $10.21 $(1.26) $3.80 $3.59 operations (2) $2.60 $(4.86) $12.85 $(1.69) $3.17 $5.13 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends – – – (0.28) (0.39) (0.30) From dividends – – – (0.73) (0.87) (0.72) Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $– $– $(0.28) $(0.39) $(0.30) distributions (2,3) $– $– $– $(0.73) $(0.87) $(0.72) Net assets per unit, Net assets per unit, end of period (2) $34.74 $32.53 $37.74 $26.71 $28.56 $26.30 end of period (2) $39.60 $36.81 $42.05 $29.26 $31.16 $28.60

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $336 $373 $594 $166 $168 $290 000s) (4) $2,917 $2,554 $3,808 $2,450 $3,292 $2,789 Number of units Number of units outstanding (in 000s) (4) 10 11 16 6 6 11 outstanding (in 000s) (4) 74 69 91 84 106 98 Management expense Management expense ratio ("MER") (5) 1.69% 1.74% 1.86% 2.00% 1.79% 1.56% ratio ("MER") (5) 0.22% 0.20% 0.17% 0.17% 0.13% 0.17% MER before waivers or MER before waivers or absorptions (5) 1.69% 1.74% 1.86% 2.09% 1.79% 1.56% absorptions (5) 0.22% 0.20% 0.17% 0.17% 0.13% 0.17% Trading expense ratio (6) 0.72% 0.55% 0.36% 0.33% 0.42% 0.57% Trading expense ratio (6) 0.72% 0.55% 0.36% 0.33% 0.42% 0.57% Portfolio turnover rate (7) 103.46% 149.85% 88.19% 79.53% 112.64% 99.24% Portfolio turnover rate (7) 103.46% 149.85% 88.19% 79.53% 112.64% 99.24% Net Asset Value per Net Asset Value per unit (4) $34.74 $32.53 $37.74 $26.71 $28.56 $26.30 unit (4) $39.60 $36.81 $42.05 $29.26 $31.16 $28.60 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC Chinese Equity Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the including differences in management fees and expenses. The end of the period. The MER may vary from one mutual fund to Fund’s past performance does not necessarily indicate how it another and from one series of units to another. We may have will perform in the future. waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the Year-by-Year Returns discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns – Investor Series higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 60% and the performance of the Fund. The rate is calculated based on 36.9% 40.3% the lesser of purchases or sales of securities divided by the average 40% weighted market value of the portfolio securities, excluding 16.5% 18.3% short-term securities. 20% 11.8% 9.2% 6.3% Management Fees 0% For the six months ended June 30, 2019, the Fund paid us -6.2% -6.0% -20% -14.6% management fees of $1,791,796. The management fee for each -19.3% series is calculated as a percentage of the daily net asset value -40% for that series. The fees are reduced, where required, so that Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Returns – Advisor Series The Fund’s management fees were used by us to pay costs for For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 60% making brokerage arrangements for the purchase and sale of 36.8% 40.1% the investment portfolio and providing other services. The 40% management fees also funded commission payments and other 16.5% 18.3% 20% 11.7% compensation (collectively “distribution costs”) to sales 9.2% 6.3% representatives and registered dealers and brokers, including 0% HSBC Investment Funds (Canada) Inc., for units of the Fund -6.2% -5.9% bought and held by unitholders. Finally, we used management -20% -14.6% -19.3% fees to pay for additional marketing and distribution services to -40% the Fund. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for the Fund, such distribution costs represented 42% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC Chinese Equity Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 60% Sector Mix 41.1% 40% Percentage of NAV 17.1% 19.0% 20% 12.3% Financials 26.00% 9.9% 6.6% Consumer Discretionary 25.88% 0% Communication Services 16.71% -5.5% Consumer Staples 8.21% -20% -14.1% -18.9% Health Care 7.20% Real Estate 6.14% -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Energy 5.07% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Industrials 1.81% Utilities 0.89% Returns – Manager Series Materials 0.75% Cash & Equivalents 1.34% For the 12-month periods ended December 31 and the Total 100.00% six-month period ended June 30, 2019 60% Top 25 Holdings 38.2% 41.3% 40% Percentage of NAV 17.8% 19.6% 20% 13.0% 10.0% 6.8% Tencent Holdings Ltd. 9.76% Alibaba Group Holding Ltd., ADR 9.49% 0% China Construction Bank Corp., Class H 8.39% -5.2% -5.5% Ping An Insurance (Group) Co. of China Ltd., Class H 6.26% -20% -13.8% -18.4% CNOOC Ltd. 5.01% Kweichow Moutai Co., Ltd. 4.67% -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Industrial & Commercial Bank of China Ltd., Class H 3.98% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 New Oriental Education & Technology Group Inc., ADR 3.97% China Mobile Ltd. 3.59% Returns – Institutional Series AIA Group Ltd. 3.41% For the 12-month periods ended December 31 and the TAL Education Group, ADR 3.01% six-month period ended June 30, 2019 Ctrip.com International Ltd., ADR 2.60% China Merchants Bank Co., Ltd., Class H 2.22% 60% Jiangsu Hengrui Medicine Co., Ltd. 2.22% 40.0% 43.7% 3SBio Inc. 2.12% 40% Link REIT 1.83% 19.4% 21.2% WuXi Biologics (Cayman) Inc. 1.75% 20% 14.6% 11.9% 7.6% China Tower Corp., Ltd. 1.58% China Resources Beer (Holdings) Co., Ltd. 1.44% 0% Li Ning Co., Ltd. 1.40% -3.9% -3.7% Gree Electric Appliances Inc. of Zhuhai 1.38% -20% -12.5% -17.3% China Resources Land Ltd. 1.34% Longfor Group Holdings Ltd. 1.19% -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 China Mengniu Dairy Co., Ltd. 0.99% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 China Overseas Land & Investment Ltd. 0.97% Total of Top 25 Holdings 84.57%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Indian Equity Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Indian Equity Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the incumbent government in the upcoming May national elections. Fund; we, us and our refer to HSBC Global Asset Management Since the elections, the market focus has shifted to the (Canada) Limited; and the Fund refers to the HSBC Indian upcoming Union Budget and subsequent measures to deal with Equity Fund. slowing growth.

We are the manager, trustee and primary investment advisor of The Fund’s stock selections in the financials, industrials and the Fund. We have entered into a sub-advisory agreement with utilities sectors contributed to performance, while stock HSBC Global Asset Management (Hong Kong) Limited, under selections in communication services and materials detracted which HSBC Global Asset Management (Hong Kong) Limited from performance. provides investment advice and portfolio management services to the Fund. For an explanation of the relationship between us Recent Developments and the sub-advisor, see the section Selection of Sub-Advisors in The portfolio management team is constructive on the India the Fund’s Simplified Prospectus. story from a medium- to long-term perspective. The country has powerful structural growth drivers that include demographics Introduction and increasing urbanization, the need for infrastructure and the This Interim Management Report of Fund Performance contains ability to absorb capital. The current government has put several financial highlights but does not contain either the semi-annual building blocks in place to support economic improvement, and financial report or annual financial statements of the investment the tailwinds from these structural shifts will likely manifest in fund. You may obtain a copy of the Fund’s semi-annual financial coming years. In particular, the GST regime should lead to faster report or annual financial statements at your request, at no cost, formalization of the economy, broaden the tax base, improve by calling us toll-free at 1-888-390-3333, by visiting our website the fiscal situation and make it easier to do business. Policies to at www.assetmanagement.hsbc.ca, by visiting the SEDAR structurally repair the banking sector will help revive credit website at www.sedar.com or by writing to us at: growth and move the economy forward. Separately, India also stands out as relatively insulated from ongoing US-China trade Corporate Secretary friction given its domestic economy and low correlations and HSBC Global Asset Management (Canada) Limited sensitivity to Chinese equities. 3rd Floor, 885 West Georgia Street The portfolio management team continues to prefer cyclical Vancouver, BC V6C 3E8 sectors over defensives given its belief that the economy is You may also contact us using one of these methods to request a undergoing a gradual recovery. From a long-term perspective, copy of the Fund’s proxy voting policies and procedures, proxy cyclicals are still very cheap. The Fund favours the financials and voting disclosure record or quarterly statement of investment consumer discretionary sectors, while its largest underweight portfolio. position is to the energy sector. Results of Operations Related Party Transactions As of June 30, 2019, the Fund's net assets decreased by 2.1% to We, on behalf of the Fund, in our role as fund manager, may, $19.0 million from $19.4 million at the end of 2018. Net from time to time, enter into transactions or arrangements with withdrawals, partially offset by positive investment or involving other members of the HSBC Group or other people or companies related or connected to us or the Fund. To proceed performance, resulted in an overall decrease in net asset value. with the transactions, the Fund relies on the positive Investment Performance recommendation of the Fund’s Independent Review Committee. A The HSBC Indian Equity Fund (Investor Series) rose 2.61% for condition of this positive recommendation is that the transactions the six months ending June 30, 2019, while the benchmark are performed in accordance with our policy on Related Party Transactions. For more general information on persons related to S&P/IFCI India Composite Index (C$) rose 2.52% over the same the Fund and the types of potential transactions, see the Fund’s period. The Fund’s returns are after the deduction of fees and Simplified Prospectus. expenses, while the benchmark’s returns do not include any costs of investing. See the Past Performance section for the The following is a summary of current transactions and returns of other series of the Fund, which may vary due to arrangements with entities that are related to us or the Fund. differences in management fees and expenses. Manager, Trustee and Investment Advisor The Indian equity market started the year weaker than other We are the manager, trustee and primary investment advisor of Asian markets. In March, however, market sentiment broke out the Fund. As manager, we manage the overall business and on the upside and rose by more than 10% as opinion polls operations of the Fund. As trustee, we hold legal title to the suggested a relatively better performance than expected by the property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio

1 HSBC Indian Equity Fund management services to the Fund. We receive a fee from the assets from operations being based on average units Fund for these services based on assets under management, outstanding during the period and all other numbers being calculated daily and paid monthly. based on actual units outstanding at the relevant point in time.

We have entered into a sub-advisory agreement with HSBC Global Asset Management (Hong Kong) Limited (an affiliate), HSBC Indian Equity Fund – Investor Series – Net under which HSBC Global Asset Management (Hong Assets per Unit(1) Kong) Limited provides investment advice and portfolio Period ended June 30, 2019, and years ended December 31 management services to the Fund. We pay HSBC Global Asset June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Management (Hong Kong) Limited an investment advisory fee 2019 2018 2017 2016 2015 2014 from the Fund based on assets under management, calculated Net assets per unit, daily and paid quarterly. For more information on our ability to beginning of period (2) $11.81 $12.96 $9.88 $10.52 $10.10 $7.05 hire sub-advisors, see the section Organization and Management Increase of the HSBC Mutual Funds in the Fund’s Simplified Prospectus. (decrease) from operations: Total revenue 0.05 0.18 0.26 0.16 0.56 0.18 Distribution Services Total expenses (0.19) (0.39) (0.38) (0.31) (0.33) (0.27) The Fund is distributed through us, HSBC Investment Funds Realized gains (losses) 0.37 0.65 1.46 (0.24) 0.84 0.04 (Canada) Inc. (our wholly owned subsidiary and affiliate) and Unrealized gains HSBC Securities (Canada) Inc. (an affiliate) directly or through its (losses) 0.07 (1.65) 1.86 (0.32) (0.59) 3.11 division, HSBC InvestDirect. We pay distribution and servicing Total increase fees to them based on the amount of assets held in the (decrease) from operations (2) $0.30 $(1.21) $3.20 $(0.71) $0.48 $3.06 investor’s account, and additionally, in some cases, on the amount of the initial purchase. If you hold units of this Fund Distributions to unitholders: and/or other HSBC Mutual Funds in a registered plan with HSBC From net investment Investment Funds (Canada) Inc., they may charge you an annual income (excluding fee to cover the annual administration costs of the plan. We dividends) – – – – – – From dividends – – – – – – permit HSBC Investment Funds (Canada) Inc. to collect these From capital gains – – – – – – fees by redeeming sufficient units of the Fund with the highest Return of capital – – – – – – market value in your registered plan. Total annual distributions (2,3) $– $– $– $– $– $– Related Brokerage Commissions Net assets per unit, From time to time, the Fund may enter into purchases and sales end of period (2) $12.12 $11.81 $12.96 $9.88 $10.52 $10.10 of securities, derivative instruments, foreign exchange contracts or other instruments with The Hongkong & Shanghai Banking Corporation Limited, HSBC Securities (Asia) Ltd. or other dealers Ratios and Supplemental Data that are members of the HSBC Group (“Related Brokers”). These June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Related Brokers may earn commissions or spreads provided 2019 2018 2017 2016 2015 2014 that such trades are made on terms and conditions comparable Net Asset Value (in to those offered by or to unrelated parties. During the period 000s) (4) $15,049 $15,734 $19,000 $18,881 $23,951 $26,220 Number of units ended June 30, 2019, the Fund paid commissions to Related outstanding (in 000s) (4) 1,242 1,332 1,466 1,911 2,276 2,597 Brokers amounting to $121 (June 30, 2018 – $61). Management expense ratio ("MER") (5) 3.26% 3.25% 3.27% 3.26% 3.11% 3.07% Financial Highlights MER before waivers or absorptions (5) 3.56% 3.64% 4.17% 3.43% 3.11% 3.07% The following tables show selected key financial information Trading expense ratio (6) 0.10% 0.10% 0.14% 0.16% 0.11% 0.14% about the Fund and are intended to help you understand the Portfolio turnover rate (7) 9.78% 22.03% 26.40% 22.06% 19.77% 17.18% Fund’s financial performance for the six-month period ended Net Asset Value per June 30, 2019, and for the last five years ended December 31, unit (4) $12.12 $11.81 $12.96 $9.88 $10.52 $10.10 as applicable. In the year a fund is established, “period” represents the period from inception to December 31 or June 30 of that fiscal year, as applicable. This information is derived from the Fund’s unaudited semi-annual financial statements and the audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net

2 HSBC Indian Equity Fund

HSBC Indian Equity Fund – Advisor Series – Net HSBC Indian Equity Fund – Premium Series – Assets per Unit(1) Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $12.39 $13.62 $10.38 $11.00 $10.58 $7.39 beginning of period (2) $11.46 $12.50 $9.48 $10.03 $9.57 $6.65 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.05 0.18 0.27 0.18 0.54 0.19 Total revenue 0.05 0.17 0.26 0.16 0.52 0.16 Total expenses (0.20) (0.42) (0.41) (0.33) (0.37) (0.29) Total expenses (0.15) (0.31) (0.31) (0.24) (0.27) (0.21) Realized gains (losses) 0.39 0.68 1.53 (0.67) 0.94 0.10 Realized gains (losses) 0.37 0.63 1.29 (0.21) 0.77 0.06 Unrealized gains Unrealized gains (losses) – (1.75) 1.98 (0.17) (0.85) 2.88 (losses) 0.14 (1.61) 1.74 (0.15) (0.57) 2.83 Total increase Total increase (decrease) from (decrease) from operations (2) $0.24 $(1.31) $3.37 $(0.99) $0.26 $2.88 operations (2) $0.41 $(1.12) $2.98 $(0.44) $0.45 $2.84 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends –––––– From dividends – – – – – – Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $– $– $– $– $– distributions (2,3) $– $– $– $– $– $– Net assets per unit, Net assets per unit, end of period (2) $12.71 $12.39 $13.62 $10.38 $11.00 $10.58 end of period (2) $11.79 $11.46 $12.50 $9.48 $10.03 $9.57

3 HSBC Indian Equity Fund

HSBC Indian Equity Fund – Manager Series – HSBC Indian Equity Fund – Institutional Series – Net Assets per Unit(1) Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $12.95 $14.06 $10.61 $11.18 $10.63 $7.35 beginning of period (2) $14.02 $15.02 $11.16 $11.60 $10.88 $7.41 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.05 0.19 0.28 0.17 0.60 0.17 Total revenue 0.06 0.20 0.29 0.18 0.60 0.19 Total expenses (0.13) (0.28) (0.28) (0.23) (0.25) (0.19) Total expenses (0.05) (0.11) (0.12) (0.09) (0.10) (0.06) Realized gains (losses) 0.37 0.71 1.52 (0.23) 0.90 0.22 Realized gains (losses) 0.45 0.76 1.84 (0.26) 0.88 0.12 Unrealized gains Unrealized gains (losses) 0.16 (1.82) 2.03 (0.33) (0.66) 2.98 (losses) 0.09 (1.41) 1.75 (0.11) (0.66) 3.50 Total increase Total increase (decrease) from (decrease) from operations (2) $0.45 $(1.20) $3.55 $(0.62) $0.59 $3.18 operations (2) $0.55 $(0.56) $3.76 $(0.28) $0.72 $3.75 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends –––––– From dividends – – – – – – Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $– $– $– $– $– distributions (2,3) $– $– $– $– $– $– Net assets per unit, Net assets per unit, end of period (2) $13.36 $12.95 $14.06 $10.61 $11.18 $10.63 end of period (2) $14.56 $14.02 $15.02 $11.16 $11.60 $10.88

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $67 $92 $70 $83 $95 $111 000s) (4) $134 $127 $70 $36 $47 $44 Number of units Number of units outstanding (in 000s) (4) 5 758810outstanding (in 000s) (4) 995344 Management expense Management expense ratio ("MER") (5) 2.08% 2.19% 2.24% 2.25% 2.25% 2.04% ratio ("MER") (5) 0.83% 0.84% 0.87% 0.85% 0.87% 0.64% MER before waivers or MER before waivers or absorptions (5) 3.35% 3.67% 4.57% 3.46% 2.66% 2.04% absorptions (5) 1.57% 2.30% 3.55% 3.18% 2.18% 0.64% Trading expense ratio (6) 0.10% 0.10% 0.14% 0.16% 0.11% 0.14% Trading expense ratio (6) 0.10% 0.10% 0.14% 0.16% 0.11% 0.14% Portfolio turnover rate (7) 9.78% 22.03% 26.40% 22.06% 19.77% 17.18% Portfolio turnover rate (7) 9.78% 22.03% 26.40% 22.06% 19.77% 17.18% Net Asset Value per Net Asset Value per unit (4) $13.36 $12.95 $14.06 $10.61 $11.18 $10.63 unit (4) $14.56 $14.02 $15.02 $11.16 $11.60 $10.88 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC Indian Equity Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the including differences in management fees and expenses. The end of the period. The MER may vary from one mutual fund to Fund’s past performance does not necessarily indicate how it another and from one series of units to another. We may have will perform in the future. waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the Year-by-Year Returns discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns – Investor Series higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 80% and the performance of the Fund. The rate is calculated based on 60% 43.3% the lesser of purchases or sales of securities divided by the average 40% 34.3% 31.2% weighted market value of the portfolio securities, excluding 20% 11.4% short-term securities. 4.2% 2.6% 0% Management Fees -20% -9.6% -6.1% -8.9% For the six months ended June 30, 2019, the Fund paid us -40% management fees of $198,872. The management fee for each -60% -47.5% series is calculated as a percentage of the daily net asset value -80% for that series. The fees are reduced, where required, so that Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Returns – Advisor Series The Fund’s management fees were used by us to pay costs for For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 80% making brokerage arrangements for the purchase and sale of 60% 43.2% the investment portfolio and providing other services. The 40% 34.4% 31.2% management fees also funded commission payments and other 20% 11.4% compensation (collectively “distribution costs”) to sales 4.0% 2.6% 0% representatives and registered dealers and brokers, including -20% -9.6% -5.7% -9.0% HSBC Investment Funds (Canada) Inc., for units of the Fund -40% bought and held by unitholders. Finally, we used management -47.5% fees to pay for additional marketing and distribution services to -60% -80% the Fund. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for the Fund, such distribution costs represented 37% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC Indian Equity Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 80% Sector Mix 60% 44.0% Percentage 35.0% 40% 31.9% of NAV 20% 4.7% 2.9% Financials 41.01% 0% Information Technology 13.07% -20% -8.8% -5.5% -8.4% Materials 9.18% -40% Energy 6.98% Consumer Discretionary 6.96% -60% -47.3% Consumer Staples 5.01% -80% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Industrials 4.83% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Real Estate 4.09% Communication Services 3.40% Returns – Manager Series Health Care 2.13% Utilities 2.10% For the 12-month periods ended December 31 and the Cash & Equivalents 1.24% six-month period ended June 30, 2019 Total 100.00% 80% 60% 44.7% Top 25 Holdings 40% 35.8% 32.5% Percentage 20% 12.6% 5.2% 3.2% of NAV 0% HDFC Bank Ltd. 9.92% -5.1% -20% -8.6% -7.9% Infosys Ltd. 8.83% -40% ICICI Bank Ltd. 6.53% -60% -47.0% Axis Bank Ltd. 6.45% Reliance Industries Ltd. 5.54% -80% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Housing Development Finance Corp., Ltd. 4.97% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 HCL Technologies Ltd. 4.24% Grasim Industries Ltd. 3.91% Returns – Institutional Series ITC Ltd. 3.88% For the 12-month periods ended December 31 and the Larsen & Toubro Ltd. 3.82% six-month period ended June 30, 2019 Maruti Suzuki India Ltd. 3.62% State Bank of India 3.21% 80% SBI Life Insurance Co., Ltd. 2.11% 60% 46.8% DLF Ltd. 1.93% 37.7% 40% 34.6% Sun TV Network Ltd. 1.47% 14.1% Petronet LNG Ltd. 1.44% 20% 6.6% 3.9% Vodafone Idea Ltd. 1.40% 0% Oberoi Realty Ltd. 1.37% -7.3% -3.8% -6.6% -20% UltraTech Cement Ltd. 1.33% -40% Indian Bank 1.28% -60% -46.2% AU Small Finance Bank Ltd. 1.17% Bandhan Bank Ltd. 1.16% -80% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Future Retail Ltd. 1.14% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 United Spirits Ltd. 1.13% Vedanta Ltd. 1.09% Total of Top 25 Holdings 82.94%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Emerging Markets Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Emerging Markets Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the At the stock level, key contributors to performance included Fund; we, us and our refer to HSBC Global Asset Management China Jinmao, which delivered a positive earnings outlook (Canada) Limited; and the Fund refers to the HSBC Emerging driven by its pipeline of joint government projects and the Markets Fund. significant margins that result from its low land costs. MRV Engenharia also contributed to performance, rallying at the start We are the manager, trustee and primary investment advisor of of the year and then again in the period after one of Brazil’s the Fund. We have entered into a sub-advisory agreement with largest banks in Brazil confirmed it was reducing mortgage rates HSBC Global Asset Management (UK) Limited, under which and increasing lending, which spurred demand for houses. HSBC Global Asset Management (UK) Limited provides investment advice and portfolio management services to the Detractors from performance included Hyundai Marine & Fire Fund. For an explanation of the relationship between us and the Insurance, whose share price slid with the wider Korean equity sub-advisor, see the section Selection of Sub-Advisors in the market due to macro and political uncertainties and foreign Fund’s Simplified Prospectus. outflows. Vale’s valuations fell in the aftermath of the Feijao Mine dam disaster, which resulted in the company suspending Introduction its dividend and buyback program. This Interim Management Report of Fund Performance contains financial highlights but does not contain either the semi-annual Recent Developments financial report or annual financial statements of the investment Near-term volatility can be expected with ongoing US-China fund. You may obtain a copy of the Fund’s semi-annual financial trade talks, economic transitions in China and the robustness of report or annual financial statements at your request, at no cost, the global economy. Geopolitical uncertainty also poses risks. by calling us toll-free at 1-888-390-3333, by visiting our website However, bouts of market uncertainty can give rise to at www.assetmanagement.hsbc.ca, by visiting the SEDAR opportunities to invest in companies at a more attractive website at www.sedar.com or by writing to us at: entry price.

Corporate Secretary The portfolio management team uses fundamental analysis to HSBC Global Asset Management (Canada) Limited identify quality companies that offer an attractive combination 3rd Floor, 885 West Georgia Street of profitability and valuation. The team remains positive on Vancouver, BC V6C 3E8 select emerging and BRIC markets based on supportive valuations despite a more muted growth outlook. You may also contact us using one of these methods to request a copy of the Fund’s proxy voting policies and procedures, proxy Related Party Transactions voting disclosure record or quarterly statement of investment We, on behalf of the Fund, in our role as fund manager, may, portfolio. from time to time, enter into transactions or arrangements with Results of Operations or involving other members of the HSBC Group or other people or companies related or connected to us or the Fund. To proceed As of June 30, 2019, the Fund's net assets increased by 12.2% with the transactions, the Fund relies on the positive to $83.5 million from $74.4 million at the end of 2018. Net recommendation of the Fund’s Independent Review Committee. A contributions and positive investment performance resulted in condition of this positive recommendation is that the transactions an overall increase in net asset value. are performed in accordance with our policy on Related Party Investment Performance Transactions. For more general information on persons related to The HSBC Emerging Markets Fund (Investor Series) rose 5.17% the Fund and the types of potential transactions, see the Fund’s for the six months ending June 30, 2019, while the benchmark Simplified Prospectus. MSCI Emerging Markets Net Index (C$) rose 5.80%. The Fund’s The following is a summary of current transactions and returns are after the deduction of fees and expenses, while the arrangements with entities that are related to us or the Fund. benchmark’s returns do not include any costs of investing. See the Past Performance section for the returns of other series of Manager, Trustee and Investment Advisor the Fund, which may vary due to differences in management We are the manager, trustee and primary investment advisor of fees and expenses. the Fund. As manager, we manage the overall business and operations of the Fund. As trustee, we hold legal title to the The Fund’s country and sector allocations were residual to stock property of the Fund on your behalf. As primary investment selection. At the country level, effects were positive and driven advisor, we provide investment advice and portfolio by an overweight exposure to Russia. At the sector level, effects management services to the Fund. We receive a fee from the were also positive and driven by an underweight exposure to Fund for these services based on assets under management, health care. calculated daily and paid monthly.

1 HSBC Emerging Markets Fund

We have entered into a sub-advisory agreement with HSBC HSBC Emerging Markets Fund – Investor Series Global Asset Management (UK) Limited (an affiliate), under – Net Assets per Unit(1) which HSBC Global Asset Management (UK) Limited provides Period ended June 30, 2019, and years ended December 31 investment advice and portfolio management services to the June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Fund. We pay HSBC Global Asset Management (UK) Limited an 2019 2018 2017 2016 2015 2014 investment advisory fee from the Fund based on assets under Net assets per unit, management, calculated daily and paid quarterly. For more beginning of period (2) $9.80 $11.03 $8.73 $8.04 $8.40 $7.86 information on our ability to hire sub-advisors, see the section Increase Organization and Management of the HSBC Mutual Funds in the (decrease) from Fund’s Simplified Prospectus. operations: Total revenue 0.30 0.36 0.28 0.25 0.28 0.28 Total expenses (0.14) (0.30) (0.29) (0.23) (0.25) (0.23) Distribution Services Realized gains (losses) 0.21 0.20 0.82 (0.34) 0.22 0.07 The Fund is distributed through us, HSBC Investment Funds Unrealized gains (Canada) Inc. (our wholly owned subsidiary and affiliate) and (losses) 0.17 (1.48) 1.53 0.98 (0.49) 0.41 HSBC Securities (Canada) Inc. (an affiliate) directly or through its Total increase division, HSBC InvestDirect. We pay distribution and servicing (decrease) from operations (2) $0.54 $(1.22) $2.34 $0.66 $(0.24) $0.53 fees to them based on the amount of assets held in the investor’s account, and additionally, in some cases, on the Distributions to unitholders: amount of the initial purchase. If you hold units of this Fund From net investment and/or other HSBC Mutual Funds in a registered plan with HSBC income (excluding Investment Funds (Canada) Inc., they may charge you an annual dividends) – – – – – – fee to cover the annual administration costs of the plan. We From dividends – (0.04) – – (0.05) – From capital gains – – – – – – permit HSBC Investment Funds (Canada) Inc. to collect these Return of capital – – – – – – fees by redeeming sufficient units of the Fund with the highest Total annual market value in your registered plan. distributions (2,3) $– $(0.04) $– $– $(0.05) $– Net assets per unit, Related Brokerage Commissions end of period (2) $10.31 $9.80 $11.03 $8.73 $8.04 $8.40 From time to time, the Fund may enter into purchases and sales of securities, derivative instruments, foreign exchange contracts or other instruments with The Hongkong & Shanghai Banking Ratios and Supplemental Data Corporation Limited, HSBC Securities (Asia) Ltd. or other dealers June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, that are members of the HSBC Group (“Related Brokers”). These 2019 2018 2017 2016 2015 2014 Related Brokers may earn commissions or spreads provided Net Asset Value (in that such trades are made on terms and conditions comparable 000s) (4) $6,504 $6,619 $7,390 $7,063 $7,250 $9,009 Number of units to those offered by or to unrelated parties. During the period outstanding (in 000s) (4) 631 675 670 809 901 1,073 ended June 30, 2019, the Fund paid commissions to Related Management expense Brokers amounting to $176 (June 30, 2018 - $nil). ratio ("MER") (5) 2.82% 2.86% 2.87% 2.77% 2.83% 2.76% MER before waivers or Financial Highlights absorptions (5) 2.82% 2.86% 2.87% 2.77% 2.83% 2.76% Trading expense ratio (6) 0.24% 0.20% 0.21% 0.40% 0.41% 0.33% The following tables show selected key financial information Portfolio turnover rate (7) 45.20% 66.01% 49.42% 102.19% 103.59% 79.06% about the Fund and are intended to help you understand the Net Asset Value per Fund’s financial performance for the six-month period ended unit (4) $10.31 $9.80 $11.03 $8.73 $8.04 $8.40 June 30, 2019, and for the last five years ended December 31, as applicable. In the year a fund is established, “period” represents the period from inception to December 31 or June 30 of that fiscal year, as applicable. This information is derived from the Fund’s unaudited semi-annual financial statements and the audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net assets from operations being based on average units outstanding during the period and all other numbers being based on actual units outstanding at the relevant point in time.

2 HSBC Emerging Markets Fund

HSBC Emerging Markets Fund – Advisor Series HSBC Emerging Markets Fund – Premium – Net Assets per Unit(1) Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014* 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $– $– $– $– $– $12.97 beginning of period (2) $10.39 $11.69 $9.27 $8.52 $8.93 $8.32 Increase Increase (decrease) from (decrease) from operations: operations: Totalrevenue–––––0.49 Total revenue 0.31 0.40 0.29 0.26 0.30 0.28 Totalexpenses–––––(0.34) Total expenses (0.12) (0.25) (0.27) (0.21) (0.22) (0.19) Realized gains (losses) –––––(0.01) Realized gains (losses) 0.24 0.15 0.85 (0.46) 0.13 0.03 Unrealized gains Unrealized gains (losses) –––––0.80 (losses) – (1.95) 1.68 1.15 (0.39) 0.53 Total increase Total increase (decrease) from (decrease) from operations (2) $– $– $– $– $– $0.94 operations (2) $0.43 $(1.65) $2.55 $0.74 $(0.18) $0.65 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends –––––– From dividends – (0.11) (0.06) (0.02) (0.10) – Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $– $– $– $– $– distributions (2,3) $– $(0.11) $(0.06) $(0.02) $(0.10) $– Net assets per unit, Net assets per unit, end of period (2) $– $– $– $– $– $– end of period (2) $10.95 $10.39 $11.69 $9.27 $8.52 $8.93

3 HSBC Emerging Markets Fund

HSBC Emerging Markets Fund – Manager HSBC Emerging Markets Fund – Institutional Series – Net Assets per Unit(1) Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014** 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $– $– $– $– $– $– beginning of period (2) $18.88 $21.26 $16.81 $15.43 $16.10 $14.98 Increase Increase (decrease) from (decrease) from operations: operations: Totalrevenue–––––– Total revenue 0.58 0.69 0.55 0.48 0.56 0.54 Totalexpenses–––––– Total expenses (0.03) (0.08) (0.08) (0.05) (0.06) (0.05) Realized gains (losses) –––––– Realized gains (losses) 0.40 0.31 1.58 (0.63) 0.21 0.18 Unrealized gains Unrealized gains (losses) –––––– (losses) 0.30 (2.86) 2.98 2.00 (1.03) 0.79 Total increase Total increase (decrease) from (decrease) from operations (2) $– $– $– $– $– $– operations (2) $1.25 $(1.94) $5.03 $1.80 $(0.32) $1.46 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends –––––– From dividends – (0.55) (0.50) (0.36) (0.48) (0.29) Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $– $– $– $– $– distributions (2,3) $– $(0.55) $(0.50) $(0.36) $(0.48) $(0.29) Net assets per unit, Net assets per unit, end of period (2) $– $– $– $– $– $– end of period (2) $20.10 $18.88 $21.26 $16.81 $15.43 $16.10

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014** 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $– $– $– $– $– $– 000s) (4) $76,073 $66,684 $63,318 $54,411 $48,661 $45,895 Number of units Number of units outstanding (in 000s) (4) ––––––outstanding (in 000s) (4) 3,785 3,532 2,978 3,237 3,154 2,851 Management expense Management expense ratio ("MER") (5) ––––––ratio ("MER") (5) 0.36% 0.39% 0.42% 0.30% 0.35% 0.31% MER before waivers or MER before waivers or absorptions(5) ––––––absorptions (5) 0.36% 0.39% 0.42% 0.30% 0.35% 0.31% Trading expense ratio (6) – – – 0.40% 0.41% 0.33% Trading expense ratio (6) 0.24% 0.20% 0.21% 0.40% 0.41% 0.33% Portfolio turnover rate (7) – – – 102.19% 103.59% 79.06% Portfolio turnover rate (7) 45.20% 66.01% 49.42% 102.19% 103.59% 79.06% Net Asset Value per Net Asset Value per unit(4) $–$–$–$–$–$–unit (4) $20.10 $18.88 $21.26 $16.81 $15.43 $16.10 ** The Manager Series was fully redeemed since 2014; however, it (1) This information is derived from the Fund’s unaudited semi-annual remains in offer as at period-end. financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC Emerging Markets Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the including differences in management fees and expenses. The end of the period. The MER may vary from one mutual fund to Fund’s past performance does not necessarily indicate how it another and from one series of units to another. We may have will perform in the future. waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the Year-by-Year Returns discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns – Investor Series higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 60% and the performance of the Fund. The rate is calculated based on 43.8% the lesser of purchases or sales of securities divided by the average 40% weighted market value of the portfolio securities, excluding 26.3% short-term securities. 20% 16.1% 6.2% 6.8% 8.6% 5.2% Management Fees 0% For the six months ended June 30, 2019, the Fund paid us -4.8% -3.6% -20% -10.8% management fees of $84,581. The management fee for each -26.7% series is calculated as a percentage of the daily net asset value -40% for that series. The fees are reduced, where required, so that Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Returns – Advisor Series The Fund’s management fees were used by us to pay costs for For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 60% making brokerage arrangements for the purchase and sale of 43.8% the investment portfolio and providing other services. The 40% management fees also funded commission payments and other 20% 16.1% compensation (collectively “distribution costs”) to sales 6.2% representatives and registered dealers and brokers, including 0% HSBC Investment Funds (Canada) Inc., for units of the Fund -4.9% bought and held by unitholders. Finally, we used management -20% fees to pay for additional marketing and distribution services to -26.7% -40% the Fund. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014* 2015* 2016* 2017* 2018* 2019* For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual * The Advisor Series was fully redeemed during 2014; however, it remains Funds were used to fund distribution costs. In comparison, for in offer as at period-end. the Fund, such distribution costs represented 43% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC Emerging Markets Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 60% Sector Mix 40% Percentage 26.8% of NAV 20% 16.8% Financials 33.12% 7.4% 9.0% 5.4% Information Technology 15.33% 0% Consumer Discretionary 13.73% -4.0% -3.4% Communication Services 10.05% -20% -10.2% Energy 8.34% -26.3% Materials 8.17% -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Industrials 4.52% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Real Estate 2.77% Consumer Staples 1.12% Returns – Manager Series Investment Funds 1.02% For the 12-month periods ended December 31 and the Cash & Equivalents 1.83% six-month period ended June 30, 2019 Total 100.00% 60% 45.4% Geographic> Mix 40% Percentage of NAV 20% 17.5% 7.4% China 20.88% 0% South Korea 15.83% India 9.36% -20% Russia 8.66% -25.7% Taiwan 6.15% -40% Brazil 5.89% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013* 2014* 2015* 2016* 2017* 2018* 2019* South Africa 5.31% Hong Kong 4.91% * The Manager Series was fully redeemed during 2013; however, it remains Cayman Islands 4.32% in offer as at period-end. Indonesia 3.06% United Kingdom 2.30% Returns – Institutional Series Mexico 2.13% For the 12-month periods ended December 31 and the Hungary 1.75% six-month period ended June 30, 2019 Thailand 1.65% 60% Egypt 1.54% 47.3% Switzerland 1.31% 40% Turkey 1.20% 29.5% Malaysia 0.90% 19.1% 20% Investment Funds 1.02% 8.8% 9.4% 11.3% 6.4% Cash & Equivalents 1.83% 0% Total 100.00% -2.5% -1.2% -8.5% -20% -24.8% -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

6 HSBC Emerging Markets Fund

Top 25 Holdings Percentage of NAV

Samsung Electronics Co., Ltd. 5.08% Alibaba Group Holding Ltd., ADR 4.77% Tencent Holdings Ltd. 3.83% ICICI Bank Ltd. 3.08% Naspers Ltd. 2.98% China Construction Bank Corp., Class H 2.55% SK Hynix Inc. 2.52% Reliance Industries Ltd. 2.50% Taiwan Semiconductor Manufacturing Co., Ltd. 2.49% Ping An Insurance (Group) Co. of China Ltd., Class H 2.32% Gazprom 2.31% Banco Bradesco SA 2.28% Sberbank of Russia 2.05% Lukoil PJSC 2.03% OTP Bank Nyrt 1.75% Hyundai Motor Co. 1.74% Bank Rakyat Indonesia (Persero) Tbk PT 1.71% Industrial & Commercial Bank of China Ltd., Class H 1.69% E.Sun Financial Holding Co., Ltd. 1.67% Infosys Ltd. 1.58% Commercial International Bank Egypt SAE, GDR 1.54% China Overseas Land & Investment Ltd. 1.44% Geely Automobile Holdings Ltd. 1.44% Xinyi Glass Holdings Ltd. 1.44% Anhui Conch Cement Co., Ltd., Class H 1.41% Total of Top 25 Holdings 58.20%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC BRIC Equity Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC BRIC Equity Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the The Fund’s country and sector allocations were residual to stock Fund; we, us and our refer to HSBC Global Asset Management selection. At the country level, effects were negative given the (Canada) Limited; and the Fund refers to the HSBC BRIC Fund’s overweight exposure to China. At the sector level, effects Equity Fund. were positive and driven by underweight exposures to health care and communication services. We are the manager, trustee and primary investment advisor of the Fund. We have entered into a sub-advisory agreement with Key contributors to performance included MRV Engenharia, HSBC Global Asset Management (UK) Limited, under which which gained along with other Brazilian house builders as one of HSBC Global Asset Management (UK) Limited provides the largest banks in Brazil confirmed that it is reducing investment advice and portfolio management services to the mortgage rates and increasing lending. The sector was also Fund. For an explanation of the relationship between us and the buoyed by real rates hitting six-year lows on positive expectations from pension reforms. Gazprom also advanced as sub-advisor, see the section Selection of Sub-Advisors in the it reported solid first-quarter profits. Fund’s Simplified Prospectus. Detractors from performance included Vale, which fell in the Introduction aftermath of the Feijao Mine dam disaster and resulted in the This Interim Management Report of Fund Performance contains company suspending its dividend and buyback program. financial highlights but does not contain either the semi-annual Furthermore, Maruti Suzuki India fell along with other Indian car financial report or annual financial statements of the investment manufacturers as slow job growth and weaker buying sentiment fund. You may obtain a copy of the Fund’s semi-annual financial in the country led to poor sales and a glut of unsold cars, which report or annual financial statements at your request, at no cost, are incurring inventory charges and eroding the company’s by calling us toll-free at 1-888-390-3333, by visiting our website bottom line. at www.assetmanagement.hsbc.ca, by visiting the SEDAR website at www.sedar.com or by writing to us at: Recent Developments Near-term volatility can be expected with ongoing US-China Corporate Secretary trade talks, economic transitions in China and the robustness of HSBC Global Asset Management (Canada) Limited the global economy. Geopolitical uncertainty also poses risks. 3rd Floor, 885 West Georgia Street However, bouts of market uncertainty can give rise to Vancouver, BC V6C 3E8 opportunities to invest in companies at a more attractive entry price. You may also contact us using one of these methods to request a copy of the Fund’s proxy voting policies and procedures, proxy The portfolio management team uses fundamental analysis to voting disclosure record or quarterly statement of investment identify quality companies that offer an attractive combination portfolio. of profitability and valuation. The team remains positive on select emerging and BRIC markets based on supportive Results of Operations valuations despite a more muted growth outlook. As of June 30, 2019, the Fund's net assets increased by 7.6% to $32.7 million from $30.4 million at the end of 2018. Positive Related Party Transactions investment performance, partially offset by net withdrawals, We, on behalf of the Fund, in our role as fund manager, may, resulted in an overall increase in net asset value. from time to time, enter into transactions or arrangements with or involving other members of the HSBC Group or other people Investment Performance or companies related or connected to us or the Fund. To proceed The HSBC BRIC Equity Fund (Investor Series) rose 12.07% for with the transactions, the Fund relies on the positive the six months ending June 30, 2019, while the benchmark rose recommendation of the Fund’s Independent Review Committee. A 12.33% over the same period. The benchmark is a weighted condition of this positive recommendation is that the transactions are performed in accordance with our policy on Related Party composite consisting of the MSCI Brazil Net Index (C$) (25%), Transactions. For more general information on persons related to MSCI Russia Net Index (C$) (25%), MSCI India Net Index (C$) the Fund and the types of potential transactions, see the Fund’s (25%) and MSCI China Net Index (C$) (25%). The Fund’s returns Simplified Prospectus. are after the deduction of fees and expenses, while the benchmark’s returns do not include any costs of investing. See The following is a summary of current transactions and the Past Performance section for the returns of other series of arrangements with entities that are related to us or the Fund. the Fund, which may vary due to differences in management fees and expenses. Manager, Trustee and Investment Advisor We are the manager, trustee and primary investment advisor of the Fund. As manager, we manage the overall business and operations of the Fund. As trustee, we hold legal title to the

1 HSBC BRIC Equity Fund property of the Fund on your behalf. As primary investment HSBC BRIC Equity Fund – Investor Series – Net advisor, we provide investment advice and portfolio Assets per Unit(1) management services to the Fund. We receive a fee from the Period ended June 30, 2019, and years ended December 31 Fund for these services based on assets under management, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, calculated daily and paid monthly. 2019 2018 2017 2016 2015 2014

We have entered into a sub-advisory agreement with HSBC Net assets per unit, beginning of period (2) $13.07 $13.25 $10.95 $8.62 $9.13 $8.84 Global Asset Management (UK) Limited (an affiliate), under Increase which HSBC Global Asset Management (UK) Limited provides (decrease) from investment advice and portfolio management services to the operations: Fund. We pay HSBC Global Asset Management (UK) Limited an Total revenue 0.35 0.53 0.43 0.35 0.43 0.39 investment advisory fee from the Fund based on assets under Total expenses (0.21) (0.42) (0.40) (0.27) (0.27) (0.26) Realized gains (losses) 0.45 0.95 1.05 (0.49) 0.95 0.03 management, calculated daily and paid quarterly. For more Unrealized gains information on our ability to hire sub-advisors, see the section (losses) 0.99 (1.15) 1.29 2.70 (1.32) 0.17 Organization and Management of the HSBC Mutual Funds in the Total increase Fund’s Simplified Prospectus. (decrease) from operations (2) $1.58 $(0.09) $2.37 $2.29 $(0.21) $0.33 Distribution Services Distributions to The Fund is distributed through us, HSBC Investment Funds unitholders: (Canada) Inc. (our wholly owned subsidiary and affiliate) and From net investment income (excluding HSBC Securities (Canada) Inc. (an affiliate) directly or through its dividends)–––––– division, HSBC InvestDirect. We pay distribution and servicing From dividends – (0.08) (0.03) (0.01) (0.09) (0.06) fees to them based on the amount of assets held in the From capital gains – – –––– investor’s account, and additionally, in some cases, on the Returnofcapital–––––– amount of the initial purchase. If you hold units of this Fund Total annual and/or other HSBC Mutual Funds in a registered plan with HSBC distributions (2,3) $– $(0.08) $(0.03) $(0.01) $(0.09) $(0.06) Investment Funds (Canada) Inc., they may charge you an annual Net assets per unit, end of period (2) $14.65 $13.07 $13.25 $10.95 $8.62 $9.13 fee to cover the annual administration costs of the plan. We permit HSBC Investment Funds (Canada) Inc. to collect these fees by redeeming sufficient units of the Fund with the highest Ratios and Supplemental Data market value in your registered plan. June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 Financial Highlights Net Asset Value (in The following tables show selected key financial information 000s) (4) $28,984 $27,191 $31,612 $31,494 $31,150 $42,463 about the Fund and are intended to help you understand the Number of units Fund’s financial performance for the six-month period ended outstanding (in 000s) (4) 1,978 2,080 2,386 2,876 3,615 4,652 Management expense June 30, 2019, and for the last five years ended December 31, ratio ("MER") (5) 3.11% 3.19% 3.26% 2.91% 2.85% 2.90% as applicable. In the year a fund is established, “period” MER before waivers or represents the period from inception to December 31 or June 30 absorptions (5) 3.11% 3.20% 3.38% 2.91% 2.85% 2.90% of that fiscal year, as applicable. This information is derived from Trading expense ratio (6) 0.16% 0.12% 0.14% 0.30% 0.34% 0.19% Portfolio turnover rate (7) 31.66% 38.23% 31.81% 55.60% 99.62% 41.89% the Fund’s unaudited semi-annual financial statements and the Net Asset Value per audited annual financial statements. The information in the unit (4) $14.65 $13.07 $13.25 $10.95 $8.62 $9.13 following tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net assets from operations being based on average units outstanding during the period and all other numbers being based on actual units outstanding at the relevant point in time.

2 HSBC BRIC Equity Fund

HSBC BRIC Equity Fund – Advisor Series – Net HSBC BRIC Equity Fund – Premium Series – Net Assets per Unit(1) Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $13.12 $13.24 $10.94 $8.64 $9.20 $8.91 beginning of period (2) $14.41 $14.61 $12.07 $9.51 $10.07 $9.76 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.35 0.53 0.44 0.34 0.43 0.42 Total revenue 0.40 0.62 0.49 0.39 0.47 0.42 Total expenses (0.22) (0.43) (0.39) (0.30) (0.32) (0.27) Total expenses (0.20) (0.39) (0.37) (0.26) (0.26) (0.24) Realized gains (losses) 0.45 1.01 1.06 (0.58) 0.98 (0.09) Realized gains (losses) 0.51 1.13 1.18 (0.51) 1.17 – Unrealized gains Unrealized gains (losses) 1.01 (1.30) 1.17 2.69 (1.32) 0.18 (losses) 0.99 (2.24) 1.29 3.09 (1.47) 0.22 Total increase Total increase (decrease) from (decrease) from operations (2) $1.59 $(0.19) $2.28 $2.15 $(0.23) $0.24 operations (2) $1.70 $(0.88) $2.59 $2.71 $(0.09) $0.40 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends – (0.09) (0.03) (0.01) (0.08) (0.05) From dividends – (0.16) (0.10) (0.07) (0.14) (0.11) Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $(0.09) $(0.03) $(0.01) $(0.08) $(0.05) distributions (2,3) $– $(0.16) $(0.10) $(0.07) $(0.14) $(0.11) Net assets per unit, Net assets per unit, end of period (2) $14.70 $13.12 $13.24 $10.94 $8.64 $9.20 end of period (2) $16.19 $14.41 $14.61 $12.07 $9.51 $10.07

3 HSBC BRIC Equity Fund

HSBC BRIC Equity Fund – Manager Series – Net HSBC BRIC Equity Fund – Institutional Series – Assets per Unit(1) Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net assets per unit, Net assets per unit, beginning of period (2) $13.60 $13.79 $11.40 $9.01 $9.58 $9.28 beginning of period (2) $15.06 $15.27 $12.62 $9.94 $10.53 $10.19 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.38 0.55 0.46 0.38 0.45 0.41 Total revenue 0.40 0.57 0.49 0.41 0.50 0.45 Total expenses (0.13) (0.31) (0.29) (0.22) (0.23) (0.18) Total expenses (0.05) (0.12) (0.12) (0.05) (0.04) (0.05) Realized gains (losses) 0.48 0.99 1.11 (0.43) 1.22 – Realized gains (losses) 0.51 1.38 1.20 (0.57) 1.01 0.08 Unrealized gains Unrealized gains (losses) 1.08 (1.32) 1.23 2.86 (1.26) 0.07 (losses) 1.15 (1.27) 1.62 3.05 (1.75) 0.14 Total increase Total increase (decrease) from (decrease) from operations (2) $1.81 $(0.09) $2.51 $2.59 $0.18 $0.30 operations (2) $2.01 $0.56 $3.19 $2.84 $(0.28) $0.62 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends – (0.22) (0.17) (0.13) (0.18) (0.16) From dividends – (0.47) (0.41) (0.32) (0.35) (0.32) Fromcapitalgains–––––– From capital gains – – – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $(0.22) $(0.17) $(0.13) $(0.18) $(0.16) distributions (2,3) $– $(0.47) $(0.41) $(0.32) $(0.35) $(0.32) Net assets per unit, Net assets per unit, end of period (2) $15.32 $13.60 $13.79 $11.40 $9.01 $9.58 end of period (2) $17.08 $15.06 $15.27 $12.62 $9.94 $10.53

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014 Net Asset Value (in Net Asset Value (in 000s) (4) $119 $85 $88 $72 $58 $118 000s) (4) $1,960 $1,850 $4,306 $4,980 $6,138 $6,932 Number of units Number of units outstanding (in 000s) (4) 8666612outstanding (in 000s) (4) 115 123 282 395 618 659 Management expense Management expense ratio ("MER") (5) 1.91% 2.25% 2.26% 2.26% 2.29% 1.88% ratio ("MER") (5) 0.69% 0.74% 0.81% 0.47% 0.40% 0.45% MER before waivers or MER before waivers or absorptions (5) 2.67% 3.31% 3.59% 3.30% 2.60% 1.88% absorptions (5) 0.69% 0.75% 0.94% 0.47% 0.40% 0.45% Trading expense ratio (6) 0.16% 0.12% 0.14% 0.30% 0.34% 0.19% Trading expense ratio (6) 0.16% 0.12% 0.14% 0.30% 0.34% 0.19% Portfolio turnover rate (7) 31.66% 38.23% 31.81% 55.60% 99.62% 41.89% Portfolio turnover rate (7) 31.66% 38.23% 31.81% 55.60% 99.62% 41.89% Net Asset Value per Net Asset Value per unit (4) $15.32 $13.60 $13.79 $11.40 $9.01 $9.58 unit (4) $17.08 $15.06 $15.27 $12.62 $9.94 $10.53 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

4 HSBC BRIC Equity Fund

time. The increase/decrease in net assets from operations per unit is Past Performance based on the weighted average number of units outstanding for the The performance information shown assumes that all relevant series over the financial period. distributions made by the Fund in the periods shown were (3) Distributions are automatically reinvested in additional units of the reinvested in additional securities of the Fund. The performance Fund, unless the unitholder withdraws from the automatic information does not take into account sales, redemption, reinvestment plan by providing written notice to us. distribution, optional charges or expenses you may be charged (4) This information is provided as at period-end of the year shown. outside of the Fund or the effect of any income tax you may (5) Management expense ratio is based on total expenses (excluding have to pay as a result of your investment in the Fund that distributions, commissions and other portfolio transaction costs) for would have reduced returns or performance. The performance the stated period and is expressed as an annualized percentage of of different fund series may vary for a number of reasons, daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the including differences in management fees and expenses. The end of the period. The MER may vary from one mutual fund to Fund’s past performance does not necessarily indicate how it another and from one series of units to another. We may have will perform in the future. waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the Year-by-Year Returns discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for the (6) The trading expense ratio represents total commissions and other six-month period ended June 30, 2019, and for each of the portfolio transaction costs expressed as an annualized percentage of previous 12-month periods ended December 31. In percentage daily average net asset value during the financial period. terms, the bar charts show how much an investment made on (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the first day of each financial period would have grown or portfolio advisor manages its portfolio investments. A portfolio decreased by the last day of each financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns – Investor Series higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 80% and the performance of the Fund. The rate is calculated based on 59.0% 60% the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding 40% 27.2% short-term securities. 21.2% 20% 9.4% 12.1% Management Fees 0.0% 0.8% 3.9% 0% For the six months ended June 30, 2019, the Fund paid us -4.7% -0.7% management fees of $329,504. The management fee for each -20% -22.3% series is calculated as a percentage of the daily net asset value -40% for that series. The fees are reduced, where required, so that Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Returns – Advisor Series The Fund’s management fees were used by us to pay costs for For the 12-month periods ended December 31 and the managing the investment portfolio, providing investment six-month period ended June 30, 2019 analysis and recommendations, making investment decisions, 80% making brokerage arrangements for the purchase and sale of 58.9% 60% the investment portfolio and providing other services. The management fees also funded commission payments and other 40% 26.8% compensation (collectively “distribution costs”) to sales 21.3% 20% 9.5% 12.0% representatives and registered dealers and brokers, including 0.0% 0.8% 3.8% HSBC Investment Funds (Canada) Inc., for units of the Fund 0% -0.3% -5.2% bought and held by unitholders. Finally, we used management -20% fees to pay for additional marketing and distribution services to -22.2% -40% the Fund. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for the Fund, such distribution costs represented 38% of the management fees collected. This may vary by series, depending on the assets invested in each of the series.

5 HSBC BRIC Equity Fund

Returns – Premium Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 80% Sector Mix 60% Percentage 40% of NAV 27.7% 21.9% Financials 28.74% 20% 12.3% 10.0% Energy 26.18% 1.3% 4.4% 0% Consumer Discretionary 12.23% -4.3% -0.2% Materials 7.48% -20% Industrials 5.43% -21.8% Communication Services 5.41% -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Real Estate 4.80% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Information Technology 3.74% Consumer Staples 1.88% Returns – Manager Series Utilities 1.81% For the 12-month periods ended December 31 and the Investment Funds 0.43% six-month period ended June 30, 2019 Cash & Equivalents 1.87% Total 100.00% 80% 60.6%

60% > Geographic Mix 40% 28.0% Percentage 22.4% of NAV 20% 10.7% 12.7% 4.9% 1.1% 1.8% 0.2% Russia 27.07% 0% Brazil 22.91% -4.1% -20% India 22.15% -21.4% China 16.00% -40% Cayman Islands 4.57% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Hong Kong 4.06% Cyprus 0.94% Investment Funds 0.43% Returns – Institutional Series Cash & Equivalents 1.87% For the 12-month periods ended December 31 and the Total 100.00% six-month period ended June 30, 2019 80% 62.7% 60%

40% 30.3% 24.2% 20% 12.2% 13.4% 6.5% 2.4% 3.3% 1.7% 0% -2.3% -20% -20.3% -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

6 HSBC BRIC Equity Fund

Top 25 Holdings Percentage of NAV

Gazprom OAO 6.97% Lukoil PJSC, ADR 6.18% Sberbank of Russia, GDR 5.78% Banco Bradesco SA 4.97% Reliance Industries Ltd. 4.69% Tencent Holdings Ltd. 3.72% Petroleo Brasileiro SA 3.31% Alibaba Group Holding Ltd., ADR 3.11% Novatek OAO 2.72% ICICI Bank Ltd. 2.55% Axis Bank Ltd. 2.51% Infosys Ltd. 2.37% Maruti Suzuki India Ltd. 2.33% Banco do Brasil SA 2.27% China Construction Bank Corp., Class H 2.16% Kroton Educacional SA 2.08% Ping An Insurance (Group) Co. of China Ltd., Class H 1.97% Petrobras Distribuidora SA 1.90% China Conch Venture Holdings Ltd. 1.77% BB Seguridade Participacoes SA 1.72% Anhui Conch Cement Co., Ltd., Class H 1.69% Mobile TeleSystems OJSC 1.69% China State Construction International Holdings Ltd. 1.65% Shriram Transport Finance Co., Ltd. 1.62% Industrial & Commercial Bank of China Ltd., Class H 1.61% Total of Top 25 Holdings 73.34%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC World Selection® Diversified Conservative Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019

®World Selection is a registered trademark of HSBC Group Management Services Limited. HSBC World Selection Diversified Conservative Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the lower central bank rates. From a Canadian perspective, global Fund; we, us and our refer to HSBC Global Asset Management equities gained 11.9%, domestic equities rose 16.2% and the (Canada) Limited; and the Fund refers to the HSBC World domestic bond market gained 6.5%. Selection Diversified Conservative Fund. Although the Fund generated a solid return in the first half of We are the manager, trustee and primary investment advisor of 2019, it fell short of its benchmark. The Fund was modestly the Fund. overweight in a combination of Canadian and global equities and underweight in fixed income. While this positioning added Introduction value to performance, the Fund’s preference for mortgages over This Interim Management Report of Fund Performance contains domestic bonds had a negative impact. Additionally, security financial highlights but does not contain either the semi-annual selection within both the domestic and global equity financial report or annual financial statements of the investment components of the Fund detracted from relative performance. fund. You may obtain a copy of the Fund’s semi-annual financial report or annual financial statements at your request, at no cost, Recent Developments by calling us toll-free at 1-888-390-3333, by visiting our website The global economy is moving away from the cyclical slowdown at www.assetmanagement.hsbc.ca, by visiting the SEDAR experienced at the end of 2018, led by improving momentum in website at www.sedar.com or by writing to us at: both the US and China. While ongoing trade tensions are a Corporate Secretary headwind for both market sentiment and overall growth, we see HSBC Global Asset Management (Canada) Limited a low risk of recession in North America for 2019 and 2020. rd 3 Floor, 885 West Georgia Street Central banks in both the US and Canada have strongly Vancouver, BC V6C 3E8 indicated that they are prepared to lower rates in response to a You may also contact us using one of these methods to request a growth slowdown. We foresee one to two cuts in the US and copy of the Fund’s proxy voting policies and procedures, proxy likely stable rates in Canada over the next 12 months. voting disclosure record or quarterly statement of investment We expect that both the global and Canadian economies will portfolio. improve as the year progresses. Equity markets continue to Results of Operations enjoy positive earnings and have relatively attractive valuations As of June 30, 2019, the Fund's net assets increased by 5.4% to compared to bonds. In Canada, gains in earnings are $228.3 million from $216.7 million at the end of 2018. Positive moderating after a few very strong years, and we foresee investment performance, partially offset by net withdrawals, mid-single-digit gains in both 2019 and 2020. resulted in an overall increase in net asset value. The Fund remains overweight in equities. In fixed income, the strong rally in government bonds over the last three quarters Investment Performance has left that sector extraordinarily expensive, as is seen by the The HSBC World Selection Diversified Conservative Fund Government of Canada 10-year bond yield falling from 2.4% on (Investor Series) rose 6.37% for the six months ending June 30, September 30, 2018, to 1.50% on June 30, 2019. We continue 2019, while the benchmark rose 8.35% over the same period. The benchmark is a weighted composite consisting of the FTSE to find better opportunities in corporate and shorter-term Canada Universe Bond Index (65%), S&P/TSX Capped securities. Composite Index (16%), MSCI World Index (C$) (12%) and FTSE Canada 91 Day T-Bill Index (7%). The Fund’s returns are after Related Party Transactions We, on behalf of the Fund, in our role as fund manager, may, the deduction of fees and expenses, while the benchmark’s returns do not include any costs of investing. See the Past from time to time, enter into transactions or arrangements with Performance section for the returns of other series of the Fund, or involving other members of the HSBC Group or other people which may vary due to differences in management fees and or companies related or connected to us or the Fund. To proceed expenses. with the transactions, the Fund relies on the positive recommendation of the Fund’s Independent Review Committee. A Following the sharp equity market downturn in 2018, sentiment condition of this positive recommendation is that the transactions was much more positive in the first half of 2019, as the US are performed in accordance with our policy on Related Party Federal Reserve changed its message from a tightening to an Transactions. For more general information on persons related to easing bias. Although the buoyant market sentiment of the first the Fund and the types of potential transactions, see the Fund’s quarter of 2019 was challenged in the second quarter by Simplified Prospectus. escalating US-China trade tensions, markets continued to push higher. Reasonable valuations and corporate fundamentals The following is a summary of current transactions and supported both equity and debt corporate assets, and arrangements with entities that are related to us or the Fund. government bond prices also rose (yields fell) in anticipation of

1 HSBC World Selection Diversified Conservative Fund

Manager, Trustee and Investment Advisor HSBC World Selection Diversified Conservative We are the manager, trustee and primary investment advisor of Fund – Investor Series – Net Assets per Unit(1) the Fund. As manager, we manage the overall business and Period ended June 30, 2019, and years ended December 31 operations of the Fund. As trustee, we hold legal title to the June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, property of the Fund on your behalf. As primary investment 2019 2018 2017 2016 2015 2014 advisor, we provide investment advice and portfolio Net assets per unit, management services to the Fund. We receive a fee from the beginning of period (2) $12.15 $12.79 $12.40 $12.16 $12.24 $11.63 Fund for these services based on assets under management, Increase calculated daily and paid monthly. (decrease) from operations: Distribution Services Total revenue 0.18 0.44 0.38 0.41 0.42 0.38 Total expenses (0.10) (0.20) (0.21) (0.21) (0.21) (0.21) The Fund is distributed through us, HSBC Investment Funds Realized gains (losses) 0.02 0.06 0.10 0.26 0.14 0.08 (Canada) Inc. (our wholly owned subsidiary and affiliate) and Unrealized gains HSBC Securities (Canada) Inc. (an affiliate) directly or through its (losses) 0.67 (0.66) 0.27 0.13 (0.23) 0.48 division, HSBC InvestDirect. We pay distribution and servicing Total increase fees to them based on the amount of assets held in the (decrease) from operations (2) $0.77 $(0.36) $0.54 $0.59 $0.12 $0.73 investor’s account, and additionally, in some cases, on the amount of the initial purchase. If you hold units of this Fund Distributions to unitholders: and/or other HSBC Mutual Funds in a registered plan with HSBC From net investment Investment Funds (Canada) Inc., they may charge you an annual income (excluding fee to cover the annual administration costs of the plan. We dividends) – (0.11) (0.10) (0.09) (0.11) (0.11) permit HSBC Investment Funds (Canada) Inc. to collect these From dividends – (0.05) (0.05) (0.06) (0.06) (0.05) From capital gains – (0.12) – (0.20) (0.08) – fees by redeeming sufficient units of the Fund with the highest Return of capital – – – – – – market value in your registered plan. Total annual distributions (2,3) $– $(0.28) $(0.15) $(0.35) $(0.25) $(0.16) Financial Highlights Net assets per unit, The following tables show selected key financial information end of period (2) $12.92 $12.15 $12.79 $12.40 $12.16 $12.24 about the Fund and are intended to help you understand the Fund’s financial performance for the six-month period ended June 30, 2019, and for the last five years ended December 31, Ratios and Supplemental Data as applicable. In the year a fund is established, “period” June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, represents the period from inception to December 31 or June 30 2019 2018 2017 2016 2015 2014 of that fiscal year, as applicable. This information is derived from Net Asset Value (in the Fund’s unaudited semi-annual financial statements and the 000s) (4) $228,274 $216,716 $217,577 $187,633 $167,462 $146,307 Number of units audited annual financial statements. The information in the outstanding (in 000s) (4) 17,667 17,840 17,017 15,136 13,777 11,958 following tables is based on prescribed regulations, and as a Management expense result, is not expected to add due to the increase/decrease in net ratio ("MER") (5) 1.70% 1.66% 1.70% 1.75% 1.74% 1.78% assets from operations being based on average units MER before waivers or absorptions (5) 1.70% 1.66% 1.70% 1.75% 1.74% 1.78% outstanding during the period and all other numbers being Trading expense based on actual units outstanding at the relevant point in time. ratio (6) 0.01% 0.01% 0.01% 0.02% 0.02% 0.01% Portfolio turnover rate (7) 4.53% 10.34% 8.64% 17.79% 12.42% 7.85% Net Asset Value per unit (4) $12.92 $12.15 $12.79 $12.40 $12.16 $12.24

2 HSBC World Selection Diversified Conservative Fund

HSBC World Selection Diversified Conservative HSBC World Selection Diversified Conservative Fund – Advisor Series – Net Assets per Unit(1) Fund – Institutional Series – Net Assets per Period ended June 30, 2019, and years ended December 31 Unit(1) June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Period ended June 30, 2019, and years ended December 31 * * * * 2019 2018 2017 2016 2015 2014 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, ** ** ** ** Net assets per unit, 2019 2018 2017 2016 2015 2014 beginning of period (2) $– $– $– $11.57 $11.69 $11.11 Net assets per unit, Increase beginning of period (2) $– $10.00 $10.54 $9.50 $10.00 $9.70 (decrease) from Increase operations: (decrease) from Total revenue – – – 0.09 0.39 0.34 operations: Total expenses – – – (0.08) (0.27) (0.21) Total revenue 0.01 0.08 – 0.31 0.08 – Realized gains (losses) – – – 0.05 0.13 0.08 Total expenses – – – (0.04) – – Unrealized gains Realized gains (losses) – 0.01 – 0.23 0.01 – (losses) – – – 0.01 (0.15) 0.54 Unrealized gains Total increase (losses) 0.09 (0.20) 0.13 0.11 (0.07) (0.02) (decrease) from Total increase operations (2) $– $– $– $0.07 $0.10 $0.75 (decrease) from Distributions to operations (2) $0.10 $(0.11) $0.13 $0.61 $0.02 $(0.02) unitholders: Distributions to From net investment unitholders: income (excluding From net investment dividends)––––(0.09)(0.09) income (excluding From dividends ––––(0.05)(0.04) dividends) – – – (0.03) (0.19) – Fromcapitalgains––––(0.06)– From dividends – – – (0.02) (0.10) – Returnofcapital–––––– From capital gains – – – (0.07) (0.22) – Total annual Returnofcapital–––––– distributions (2,3) $– $– $– $– $(0.20) $(0.13) Total annual Net assets per unit, distributions (2,3) $– $– $– $(0.12) $(0.51) $– end of period (2) $– $– $– $– $11.57 $11.69 Net assets per unit, end of period (2) $– $– $– $10.54 $9.50 $– Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Ratios and Supplemental Data * * * * 2019 2018 2017 2016 2015 2014 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, ** ** ** ** Net Asset Value (in 2019 2018 2017 2016 2015 2014 000s) (4) $– $– $– $– $143 $163 Net Asset Value (in Number of units 000s) (4) $– $– $– $40 $9 $– outstanding (in 000s) (4) ––––1214Number of units Management expense outstanding (in 000s) (4) – – – 4 1 – ratio ("MER") (5) – – – 2.40% 2.30% 1.87% Management expense MER before waivers or ratio ("MER") (5) 0.31% 0.29% 0.97% 0.52% 0.07% 0.09% absorptions (5) – – – 2.86% 2.60% 1.87% MER before waivers or Trading expense ratio (6) – – – 0.02% 0.02% 0.01% absorptions (5) 0.31% 0.29% 1.30% 0.81% 0.07% 0.09% Portfolio turnover rate (7) – – – 17.79% 12.42% 7.85% Trading expense ratio (6) 0.01% 0.01% 0.01% 0.02% 0.02% 0.01% Net Asset Value per Portfolio turnover rate (7) 4.53% 10.34% 8.64% 17.79% 12.42% 7.85% unit (4) $– $– $– $– $11.57 $11.69 Net Asset Value per * The Advisor Series was fully redeemed during 2016; however, it unit (4) $– $– $– $10.54 $9.50 $– remains in offer as at period-end. ** The Institutional Series was fully redeemed during 2014, 2017, 2018 & 2019; however, it remains in offer as at peiod-end. (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

3 HSBC World Selection Diversified Conservative Fund

time. The increase/decrease in net assets from operations per unit is HSBC Investment Funds (Canada) Inc., for units of the Fund based on the weighted average number of units outstanding for the bought and held by unitholders. Finally, we used management relevant series over the financial period. fees to pay for additional marketing and distribution services to (3) Distributions are automatically reinvested in additional units of the the Fund. Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. For the six months ended June 30, 2019, approximately 45% of (4) This information is provided as at period-end of the year shown. the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the Fund, such distribution costs represented 48% of the the stated period and is expressed as an annualized percentage of management fees collected. This may vary by series, depending daily average net asset value during the period. In the year a series is on the assets invested in each of the series. established, the MER is annualized from the date of inception to the end of the period. The MER may vary from one mutual fund to Past Performance another and from one series of units to another. We may have The performance information shown assumes that all waived or absorbed certain fees and expenses otherwise payable by distributions made by the Fund in the periods shown were the Fund. The amount of expenses absorbed or waived is at the reinvested in additional securities of the Fund. The performance discretion of and can be terminated at any time by us. The Fund may invest in units of other mutual funds and pooled information does not take into account sales, redemption, funds. You should note that in addition to the fees and expenses distribution, optional charges or expenses you may be charged paid by the Fund, these other funds have their own operating outside of the Fund or the effect of any income tax you may expenses to pay. The Fund will effectively bear the operating have to pay as a result of your investment in the Fund that expenses of the other funds in proportion to its holdings in the other would have reduced returns or performance. The performance funds. However, the Fund will not invest in units of other funds if the of different fund series may vary for a number of reasons, Fund would be required to pay any management fees in respect of including differences in management fees and expenses. The such investments. In addition, the Fund will not make investments in other funds if the Fund would be required to pay any sales or Fund’s past performance does not necessarily indicate how it redemption fees in respect of such investments that duplicate a fee will perform in the future. payable by unitholders of the Fund. (6) The trading expense ratio represents total commissions and other Year-by-Year Returns portfolio transaction costs expressed as an annualized percentage of The following bar charts show the Fund’s performance for the daily average net asset value during the financial period. six-month period ended June 30, 2019, and for each of the (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s previous 12-month periods ended December 31. In percentage portfolio advisor manages its portfolio investments. A portfolio terms, the bar charts show how much an investment made on turnover rate of 100% is equivalent to the Fund buying and selling all the first day of each financial period would have grown or of the securities in its portfolio once in the course of the period. The decreased by the last day of each financial period. higher the Fund’s portfolio turnover rate in a period, the greater the trading costs payable by the Fund in the period, and the greater the Returns – Investor Series chance of an investor receiving taxable capital gains in the period. For the 12-month periods ended December 31 and the There is not necessarily a relationship between a high turnover rate six-month period ended June 30, 2019 and the performance of the Fund. The rate is calculated based on the lesser of purchases or sales of securities divided by the average 15% weighted market value of the portfolio securities, excluding short-term securities. 10% 8.3% 6.6% 6.4% Management Fees 4.8% 5.3% 4.8% 4.9% 5% 4.4% For the six months ended June 30, 2019, the Fund paid us 1.4% 1.3% management fees of $1,542,166. The management fee for each 0% series is calculated as a percentage of the daily net asset value for that series. The fees are reduced, where required, so that -2.8% -5% these fees do not duplicate fees payable by mutual funds in Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 which the Fund invests for the same service. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

The Fund’s management fees were used by us to pay costs for managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including

4 HSBC World Selection Diversified Conservative Fund

Returns – Advisor Series Top 25 Holdings* For the 12-month periods ended December 31 and the Percentage six-month period ended June 30, 2019 of NAV

15% HSBC Canadian Bond Fund - Institutional Series 41.85% HSBC Mortgage Fund - Institutional Series 16.86% 10% 8.8% HSBC Global Equity Fund - Institutional Series 10.69% 6.5% HSBC Dividend Fund - Institutional Series 10.33% 4.8% 5.4% 4.8% HSBC Canadian Money Market Fund - Institutional Series 6.81% 5% HSBC Equity Fund - Institutional Series 6.40% 1.5% 0.7% HSBC Emerging Markets Debt Fund - Institutional Series 5.25% 0% HSBC Emerging Markets Fund - Institutional Series 1.95% Remaining Holdings -0.14% Total of Top 25 Holdings 100.00% -5% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 * The Fund had less than 25 holdings as at June 30, 2019. 2009 2010 2011 2012 2013 2014 2015 2016* 2017* 2018* 2019*

* The Advisor Series was fully redeemed during 2016; however, the series remains in offer as at period-end. Summary of Investment Portfolio As at June 30, 2019

Asset Mix Percentage of NAV

Bonds 63.96% Canadian Equities 16.73% International Equities 12.64% Cash & Equivalents 6.67% Total 100.00%

5 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents, as well as the Funds’ 3 Floor, 885 West Georgia Street Financial Statements, at no cost by calling us toll-free at Vancouver, BC V6C 3E8 1-888-390-3333, contacting your authorized dealer or Toronto visiting our website at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, FTSE Global Debt Capital Markets Inc., Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC World Selection® Diversified Moderate Conservative Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019

®World Selection is a registered trademark of HSBC Group Management Services Limited. HSBC World Selection Diversified Moderate Conservative Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the lower central bank rates. From a Canadian perspective, global Fund; we, us and our refer to HSBC Global Asset Management equities gained 11.9%, domestic equities rose 16.2% and the (Canada) Limited; and the Fund refers to the HSBC World domestic bond market gained 6.5%. Selection Diversified Moderate Conservative Fund. Although the Fund generated a solid return in the first half of We are the manager, trustee and primary investment advisor of 2019, it fell short of its benchmark. The Fund was modestly the Fund. overweight in a combination of Canadian and global equities and underweight in fixed income. While this positioning added Introduction value to performance, the Fund’s preference for mortgages over This Interim Management Report of Fund Performance contains domestic bonds had a negative impact. Additionally, security financial highlights but does not contain either the semi-annual selection within both the domestic and global equity financial report or annual financial statements of the investment components of the Fund detracted from relative performance. fund. You may obtain a copy of the Fund’s semi-annual financial report or annual financial statements at your request, at no cost, Recent Developments by calling us toll-free at 1-888-390-3333, by visiting our website The global economy is moving away from the cyclical slowdown at www.assetmanagement.hsbc.ca, by visiting the SEDAR experienced at the end of 2018, led by improving momentum in website at www.sedar.com or by writing to us at: both the US and China. While ongoing trade tensions are a Corporate Secretary headwind for both market sentiment and overall growth, we see HSBC Global Asset Management (Canada) Limited a low risk of recession in North America for 2019 and 2020. rd 3 Floor, 885 West Georgia Street Central banks in both the US and Canada have strongly Vancouver, BC V6C 3E8 indicated that they are prepared to lower rates in response to a You may also contact us using one of these methods to request a growth slowdown. We foresee one to two cuts in the US and copy of the Fund’s proxy voting policies and procedures, proxy likely stable rates in Canada over the next 12 months. voting disclosure record or quarterly statement of investment We expect that both the global and Canadian economies will portfolio. improve as the year progresses. Equity markets continue to Results of Operations enjoy positive earnings and have relatively attractive valuations As of June 30, 2019, the Fund's net assets increased by 5.9% to compared to bonds. In Canada, gains in earnings are $373.9 million from $353.0 million at the end of 2018. Positive moderating after a few very strong years, and we foresee investment performance, partially offset by net withdrawals, mid-single-digit gains in both 2019 and 2020. resulted in an overall increase in net asset value. The Fund remains overweight in equities. In fixed income, the strong rally in government bonds over the last three quarters Investment Performance has left that sector extraordinarily expensive, as is seen by the The HSBC World Selection Diversified Moderate Conservative Government of Canada 10-year bond yield falling from 2.4% on Fund (Investor Series) rose 7.33% for the six months ending September 30, 2018, to 1.50% on June 30, 2019. We continue June 30, 2019, while the benchmark rose 9.57% over the same period. The benchmark is a weighted composite consisting of to find better opportunities in corporate and shorter-term the FTSE Canada Universe Bond Index (52%), S&P/TSX Capped securities. Composite Index (22.5%), MSCI World Index (C$) (20.5%) and FTSE Canada 91 Day T-Bill Index (5%). The Fund’s returns are Related Party Transactions We, on behalf of the Fund, in our role as fund manager, may, after the deduction of fees and expenses, while the benchmark’s returns do not include any costs of investing. See the Past from time to time, enter into transactions or arrangements with Performance section for the returns of other series of the Fund, or involving other members of the HSBC Group or other people which may vary due to differences in management fees or companies related or connected to us or the Fund. To proceed and expenses. with the transactions, the Fund relies on the positive recommendation of the Fund’s Independent Review Committee. A Following the sharp equity market downturn in 2018, sentiment condition of this positive recommendation is that the transactions was much more positive in the first half of 2019, as the US are performed in accordance with our policy on Related Party Federal Reserve changed its message from a tightening to an Transactions. For more general information on persons related to easing bias. Although the buoyant market sentiment of the first the Fund and the types of potential transactions, see the Fund’s quarter of 2019 was challenged in the second quarter by Simplified Prospectus. escalating US-China trade tensions, markets continued to push higher. Reasonable valuations and corporate fundamentals The following is a summary of current transactions and supported both equity and debt corporate assets, and arrangements with entities that are related to us or the Fund. government bond prices also rose (yields fell) in anticipation of

1 HSBC World Selection Diversified Moderate Conservative Fund

Manager, Trustee and Investment Advisor HSBC World Selection Diversified Moderate We are the manager, trustee and primary investment advisor of Conservative Fund – Investor Series – Net the Fund. As manager, we manage the overall business and Assets per Unit(1) operations of the Fund. As trustee, we hold legal title to the Period ended June 30, 2019, and years ended December 31 property of the Fund on your behalf. As primary investment June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, advisor, we provide investment advice and portfolio 2019 2018 2017 2016 2015 2014 management services to the Fund. We receive a fee from the Net assets per unit, Fund for these services based on assets under management, beginning of period (2) $12.83 $13.70 $13.07 $12.87 $12.76 $12.01 calculated daily and paid monthly. Increase (decrease) from Distribution Services operations: The Fund is distributed through us, HSBC Investment Funds Total revenue 0.17 0.51 0.41 0.43 0.46 0.35 Total expenses (0.10) (0.21) (0.22) (0.22) (0.22) (0.21) (Canada) Inc. (our wholly owned subsidiary and affiliate) and Realized gains (losses) 0.03 0.09 0.11 0.46 0.16 0.11 HSBC Securities (Canada) Inc. (an affiliate) directly or through its Unrealized gains division, HSBC InvestDirect. We pay distribution and servicing (losses) 0.85 (0.91) 0.49 0.06 (0.13) 0.57 fees to them based on the amount of assets held in the Total increase investor’s account, and additionally, in some cases, on the (decrease) from operations (2) $0.95 $(0.52) $0.79 $0.73 $0.27 $0.82 amount of the initial purchase. If you hold units of this Fund and/or other HSBC Mutual Funds in a registered plan with HSBC Distributions to unitholders: Investment Funds (Canada) Inc., they may charge you an annual From net investment fee to cover the annual administration costs of the plan. We income (excluding permit HSBC Investment Funds (Canada) Inc. to collect these dividends) – (0.10) (0.08) (0.08) (0.07) (0.09) From dividends – (0.07) (0.08) (0.08) (0.06) (0.04) fees by redeeming sufficient units of the Fund with the highest From capital gains – (0.17) – (0.37) (0.09) – market value in your registered plan. Return of capital – – – – – – Total annual Financial Highlights distributions (2,3) $– $(0.34) $(0.16) $(0.53) $(0.22) $(0.13) The following tables show selected key financial information Net assets per unit, about the Fund and are intended to help you understand the end of period (2) $13.77 $12.83 $13.70 $13.07 $12.87 $12.76 Fund’s financial performance for the six-month period ended June 30, 2019, and for the last five years ended December 31, as applicable. In the year a fund is established, “period” Ratios and Supplemental Data represents the period from inception to December 31 or June 30 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, of that fiscal year, as applicable. This information is derived from 2019 2018 2017 2016 2015 2014 the Fund’s unaudited semi-annual financial statements and the Net Asset Value (in audited annual financial statements. The information in the 000s) (4) $373,027 $352,546 $342,013 $287,724 $260,684 $211,245 Number of units following tables is based on prescribed regulations, and as a outstanding (in 000s) (4) 27,087 27,476 24,964 22,021 20,259 16,561 result, is not expected to add due to the increase/decrease in net Management expense assets from operations being based on average units ratio ("MER") (5) 1.68% 1.64% 1.69% 1.73% 1.73% 1.76% MER before waivers or outstanding during the period and all other numbers being absorptions (5) 1.68% 1.64% 1.69% 1.73% 1.73% 1.76% based on actual units outstanding at the relevant point in time. Trading expense ratio (6) 0.02% 0.02% 0.01% 0.03% 0.05% 0.04% Portfolio turnover rate (7) 3.31% 9.70% 7.85% 31.67% 11.35% 11.29% Net Asset Value per unit (4) $13.77 $12.83 $13.70 $13.07 $12.87 $12.76

2 HSBC World Selection Diversified Moderate Conservative Fund

HSBC World Selection Diversified Moderate HSBC World Selection Diversified Moderate Conservative Fund – Advisor Series – Net Conservative Fund – Manager Series – Net Assets per Unit(1) Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016* 2015* 2014* 2019 2018 2017** 2016** 2015** 2014** Net assets per unit, Net assets per unit, beginning of period (2) $9.48 $10.16 $10.00 $– $– $– beginning of period (2) $9.44 $10.00 $– $– $– $– Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.13 0.43 0.19 – – – Total revenue 0.18 0.31 – – – – Total expenses (0.07) (0.19) (0.03) – – – Total expenses (0.03) (0.04) – – – – Realized gains (losses) 0.02 0.07 0.02 – – – Realized gains (losses) 0.03 0.06 – – – – Unrealized gains Unrealized gains (losses) 0.62 (0.87) 0.03 – – – (losses) 0.40 (0.54) – – – – Total increase Total increase (decrease) from (decrease) from operations (2) $0.70 $(0.56) $0.21 $– $– $– operations (2) $0.58 $(0.21) $– $– $– $– Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) – (0.07) (0.05) – – – dividends) – (0.10) – – – – From dividends – (0.06) (0.05) – – – From dividends – (0.08) – – – – Fromcapitalgains–(0.13)–––– From capital gains – (0.17) – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $(0.26) $(0.10) $– $– $– distributions (2,3) $– $(0.35) $– $– $– $– Net assets per unit, Net assets per unit, end of period (2) $10.17 $9.48 $10.16 $– $– $– end of period (2) $10.17 $9.44 $– $– $– $–

3 HSBC World Selection Diversified Moderate Conservative Fund

HSBC World Selection Diversified Moderate time. The increase/decrease in net assets from operations per unit is Conservative Fund – Institutional Series – Net based on the weighted average number of units outstanding for the Assets per Unit(1) relevant series over the financial period. Period ended June 30, 2019, and years ended December 31 (3) Distributions are automatically reinvested in additional units of the Fund, unless the unitholder withdraws from the automatic June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, reinvestment plan by providing written notice to us. 2019*** 2018*** 2017*** 2016 2015 2014*** (4) This information is provided as at period-end of the year shown. Net assets per unit, beginning of period (2) $– $10.00 $9.48 $9.81 $10.00 $– (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for Increase the stated period and is expressed as an annualized percentage of (decrease) from daily average net asset value during the period. In the year a series is operations: established, the MER is annualized from the date of inception to the Total revenue – 0.09 0.05 0.02 0.20 0.02 end of the period. The MER may vary from one mutual fund to Total expenses – – (0.01) – – – Realized gains (losses) – 0.03 0.04 – 0.02 – another and from one series of units to another. We may have Unrealized gains waived or absorbed certain fees and expenses otherwise payable by (losses) – 0.26 0.34 (0.50) (0.06) (0.13) the Fund. The amount of expenses absorbed or waived is at the discretion of and can be terminated at any time by us. Total increase The Fund may invest in units of other mutual funds and pooled (decrease) from funds. You should note that in addition to the fees and expenses operations (2) $– $0.38 $0.42 $(0.48) $0.16 $(0.11) paid by the Fund, these other funds have their own operating Distributions to expenses to pay. The Fund will effectively bear the operating unitholders: expenses of the other funds in proportion to its holdings in the other From net investment funds. However, the Fund will not invest in units of other funds if the income (excluding Fund would be required to pay any management fees in respect of dividends) – – – (0.07) (0.11) – such investments. In addition, the Fund will not make investments in From dividends – – – (0.09) (0.09) – other funds if the Fund would be required to pay any sales or From capital gains – – – (0.39) (0.14) – redemption fees in respect of such investments that duplicate a fee Returnofcapital–––––– payable by unitholders of the Fund. Total annual (6) The trading expense ratio represents total commissions and other distributions (2,3) $– $– $– $(0.55) $(0.34) $– portfolio transaction costs expressed as an annualized percentage of Net assets per unit, daily average net asset value during the financial period. end of period (2) $– $– $– $9.48 $9.81 $– (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio Ratios and Supplemental Data turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, higher the Fund’s portfolio turnover rate in a period, the greater the *** *** *** *** 2019 2018 2017 2016 2015 2014 trading costs payable by the Fund in the period, and the greater the Net Asset Value (in chance of an investor receiving taxable capital gains in the period. 000s) (4) $– $– $– $58 $544 $– There is not necessarily a relationship between a high turnover rate Number of units and the performance of the Fund. The rate is calculated based on outstanding (in 000s) (4) – – – 6 56 – the lesser of purchases or sales of securities divided by the average Management expense weighted market value of the portfolio securities, excluding ratio ("MER") (5) 0.00% 0.17% 0.58% 0.32% 0.09% 0.16% short-term securities. MER before waivers or absorptions (5) 0.00% 0.17% 0.61% 0.32% 0.09% 0.16% Management Fees Trading expense ratio (6) 0.02% 0.02% 0.01% 0.03% 0.05% 0.04% Portfolio turnover rate (7) 3.31% 9.70% 7.85% 31.67% 11.35% 11.29% For the six months ended June 30, 2019, the Fund paid us Net Asset Value per management fees of $2,536,621. The management fee for each unit (4) $– $– $– $9.48 $9.81 $– series is calculated as a percentage of the daily net asset value *** The Institutional Series was fully redeemed during 2017; however, it for that series. The fees are reduced, where required, so that remains in offer as at period-end. these fees do not duplicate fees payable by mutual funds in (1) This information is derived from the Fund’s unaudited semi-annual which the Fund invests for the same service. financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net The Fund’s management fees were used by us to pay costs for assets per unit presented in the financial statements is the same as managing the investment portfolio, providing investment the net asset value calculated for fund pricing purposes. analysis and recommendations, making investment decisions, (2) Net assets per unit and distributions per unit are based on the actual making brokerage arrangements for the purchase and sale of number of units outstanding for the relevant series at the relevant the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including

4 HSBC World Selection Diversified Moderate Conservative Fund

HSBC Investment Funds (Canada) Inc., for units of the Fund Returns – Advisor Series bought and held by unitholders. Finally, we used management For the 12-month periods ended December 31 and the fees to pay for additional marketing and distribution services to six-month period ended June 30, 2019 the Fund. 15% For the six months ended June 30, 2019, approximately 45% of 10% 7.3% the total management fees collected from all HSBC Mutual 6.2% Funds were used to fund distribution costs. In comparison, for 5% the Fund, such distribution costs represented 48% of the 0.2% management fees collected. This may vary by series, depending 0% on the assets invested in each of the series. -5% -4.1% Past Performance -10% The performance information shown assumes that all Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 distributions made by the Fund in the periods shown were 2011 2012 2013* 2014* 2015* 2016* 2017* 2018 2019 reinvested in additional securities of the Fund. The performance * The Advisor Series was fully redeemed during 2013. There were no information does not take into account sales, redemption, unitholders during the years of 2014 to 2017. distribution, optional charges or expenses you may be charged outside of the Fund or the effect of any income tax you may Returns – Manager Series have to pay as a result of your investment in the Fund that For the 12-month periods ended December 31 and the would have reduced returns or performance. The performance six-month period ended June 30, 2019 of different fund series may vary for a number of reasons, 10% including differences in management fees and expenses. The 7.8% Fund’s past performance does not necessarily indicate how it will perform in the future. Year-by-Year Returns 5% The following bar charts show the Fund’s performance for the six-month period ended June 30, 2019, and for each of the previous 12-month periods ended December 31. In percentage terms, the bar charts show how much an investment made on 0% Dec. 31 Jun. 30 the first day of each financial period would have grown or 2018* 2019 decreased by the last day of each financial period. * There were no unitholders for the 12 consecutive months prior to 2019. Returns – Investor Series For the 12-month periods ended December 31 and the Summary of Investment Portfolio six-month period ended June 30, 2019 As at June 30, 2019 15% Asset Mix 10% 9.5% 7.7% 7.2% 7.3% Percentage 6.1% 6.1% 5.1% 5.6% of NAV 5% 2.6% 0.2% Bonds 50.89% 0% Canadian Equities 23.32% International Equities 21.04% -5% -3.8% Cash & Equivalents 4.75% Total 100.00% -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

5 HSBC World Selection Diversified Moderate Conservative Fund

Top 25 Holdings* Percentage of NAV

HSBC Canadian Bond Fund - Institutional Series 31.43% HSBC Global Equity Fund - Institutional Series 18.09% HSBC Mortgage Fund - Institutional Series 14.14% HSBC Dividend Fund - Institutional Series 11.69% HSBC Equity Fund - Institutional Series 11.63% HSBC Emerging Markets Debt Fund - Institutional Series 5.32% HSBC Canadian Money Market Fund - Institutional Series 4.89% HSBC Emerging Markets Fund - Institutional Series 2.95% Remaining Holdings -0.14% Total of Top 25 Holdings 100.00% * The Fund had less than 25 holdings as at June 30, 2019.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, FTSE Global Debt Capital Markets Inc., Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC World Selection® Diversified Balanced Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019

®World Selection is a registered trademark of HSBC Group Management Services Limited. HSBC World Selection Diversified Balanced Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the lower central bank rates. From a Canadian perspective, global Fund; we, us and our refer to HSBC Global Asset Management equities gained 11.9%, domestic equities rose 16.2% and the (Canada) Limited; and the Fund refers to the HSBC World domestic bond market gained 6.5%. Selection Diversified Balanced Fund. Although the Fund generated a solid return in the first half of We are the manager, trustee and primary investment advisor of 2019, it fell short of its benchmark. The Fund was modestly the Fund. overweight in a combination of Canadian and global equities and underweight in fixed income. While this positioning added Introduction value to performance, the Fund’s preference for mortgages over This Interim Management Report of Fund Performance contains domestic bonds had a negative impact. Additionally, security financial highlights but does not contain either the semi-annual selection within both the domestic and global equity financial report or annual financial statements of the investment components of the Fund detracted from relative performance. fund. You may obtain a copy of the Fund’s semi-annual financial report or annual financial statements at your request, at no cost, Recent Developments by calling us toll-free at 1-888-390-3333, by visiting our website The global economy is moving away from the cyclical slowdown at www.assetmanagement.hsbc.ca, by visiting the SEDAR experienced at the end of 2018, led by improving momentum in website at www.sedar.com or by writing to us at: both the US and China. While ongoing trade tensions are a Corporate Secretary headwind for both market sentiment and overall growth, we see HSBC Global Asset Management (Canada) Limited a low risk of recession in North America for 2019 and 2020. rd 3 Floor, 885 West Georgia Street Central banks in both the US and Canada have strongly Vancouver, BC V6C 3E8 indicated that they are prepared to lower rates in response to a You may also contact us using one of these methods to request a growth slowdown. We foresee one to two cuts in the US and copy of the Fund’s proxy voting policies and procedures, proxy likely stable rates in Canada over the next 12 months. voting disclosure record or quarterly statement of investment We expect that both the global and Canadian economies will portfolio. improve as the year progresses. Equity markets continue to Results of Operations enjoy positive earnings and have relatively attractive valuations As of June 30, 2019, the Fund's net assets increased by 7.9% to compared to bonds. In Canada, gains in earnings are $731.8 million from $678.3 million at the end of 2018. Positive moderating after a few very strong years, and we foresee investment performance, partially offset by net withdrawals, mid-single-digit gains in both 2019 and 2020. resulted in an overall increase in net asset value. The Fund remains overweight in equities. In fixed income, the strong rally in government bonds over the last three quarters Investment Performance has left that sector extraordinarily expensive, as is seen by the The HSBC World Selection Diversified Balanced Fund (Investor Government of Canada 10-year bond yield falling from 2.4% on Series) rose 8.57% for the six months ending June 30, 2019, September 30, 2018, to 1.50% on June 30, 2019. We continue while the benchmark rose 10.92% over the same period. The benchmark is a weighted composite consisting of the FTSE to find better opportunities in corporate and shorter-term Canada Universe Bond Index (33%), MSCI World Index (C$) securities. (32%), S&P/TSX Capped Composite Index (30%) and FTSE Canada 91 Day T-Bill Index (5%). The Fund’s returns are after Related Party Transactions We, on behalf of the Fund, in our role as fund manager, may, the deduction of fees and expenses, while the benchmark’s returns do not include any costs of investing. See the Past from time to time, enter into transactions or arrangements with Performance section for the returns of other series of the Fund, or involving other members of the HSBC Group or other people which may vary due to differences in management fees or companies related or connected to us or the Fund. To proceed and expenses. with the transactions, the Fund relies on the positive recommendation of the Fund’s Independent Review Committee. A Following the sharp equity market downturn in 2018, sentiment condition of this positive recommendation is that the transactions was much more positive in the first half of 2019, as the US are performed in accordance with our policy on Related Party Federal Reserve changed its message from a tightening to an Transactions. For more general information on persons related to easing bias. Although the buoyant market sentiment of the first the Fund and the types of potential transactions, see the Fund’s quarter of 2019 was challenged in the second quarter by Simplified Prospectus. escalating US-China trade tensions, markets continued to push higher. Reasonable valuations and corporate fundamentals The following is a summary of current transactions and supported both equity and debt corporate assets, and arrangements with entities that are related to us or the Fund. government bond prices also rose (yields fell) in anticipation of

1 HSBC World Selection Diversified Balanced Fund

Manager, Trustee and Investment Advisor HSBC World Selection Diversified Balanced We are the manager, trustee and primary investment advisor of Fund – Investor Series – Net Assets per Unit(1) the Fund. As manager, we manage the overall business and Period ended June 30, 2019, and years ended December 31 operations of the Fund. As trustee, we hold legal title to the June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, property of the Fund on your behalf. As primary investment 2019 2018 2017 2016 2015 2014 advisor, we provide investment advice and portfolio Net assets per unit, management services to the Fund. We receive a fee from the beginning of period (2) $14.20 $15.42 $14.40 $14.33 $13.95 $13.01 Fund for these services based on assets under management, Increase calculated daily and paid monthly. (decrease) from operations: Distribution Services Total revenue 0.16 0.65 0.45 0.49 0.47 0.32 Total expenses (0.13) (0.26) (0.27) (0.28) (0.28) (0.27) The Fund is distributed through us, HSBC Investment Funds Realized gains (losses) 0.05 0.12 0.12 0.84 0.25 0.11 (Canada) Inc. (our wholly owned subsidiary and affiliate) and Unrealized gains HSBC Securities (Canada) Inc. (an affiliate) directly or through its (losses) 1.14 (1.36) 0.84 (0.08) – 0.78 division, HSBC InvestDirect. We pay distribution and servicing Total increase fees to them based on the amount of assets held in the (decrease) from operations (2) $1.22 $(0.85) $1.14 $0.97 $0.44 $0.94 investor’s account, and additionally, in some cases, on the amount of the initial purchase. If you hold units of this Fund Distributions to unitholders: and/or other HSBC Mutual Funds in a registered plan with HSBC From net investment Investment Funds (Canada) Inc., they may charge you an annual income (excluding fee to cover the annual administration costs of the plan. We dividends) – (0.05) (0.02) (0.01) – (0.01) permit HSBC Investment Funds (Canada) Inc. to collect these From dividends – (0.09) (0.10) (0.15) (0.05) (0.04) From capital gains – (0.23) – (0.73) (0.09) – fees by redeeming sufficient units of the Fund with the highest Return of capital – – – – – – market value in your registered plan. Total annual distributions (2,3) $– $(0.37) $(0.12) $(0.89) $(0.14) $(0.05) Financial Highlights Net assets per unit, The following tables show selected key financial information end of period (2) $15.42 $14.20 $15.42 $14.40 $14.33 $13.95 about the Fund and are intended to help you understand the Fund’s financial performance for the six-month period ended June 30, 2019, and for the last five years ended December 31, Ratios and Supplemental Data as applicable. In the year a fund is established, “period” June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, represents the period from inception to December 31 or June 30 2019 2018 2017 2016 2015 2014 of that fiscal year, as applicable. This information is derived from Net Asset Value (in the Fund’s unaudited semi-annual financial statements and the 000s) (4) $731,313 $677,874 $653,583 $546,207 $491,755 $405,031 Number of units audited annual financial statements. The information in the outstanding (in 000s) (4) 47,436 47,737 42,381 37,924 34,308 29,026 following tables is based on prescribed regulations, and as a Management expense result, is not expected to add due to the increase/decrease in net ratio ("MER") (5) 1.83% 1.79% 1.90% 1.99% 1.99% 2.01% assets from operations being based on average units MER before waivers or absorptions (5) 1.83% 1.79% 1.90% 1.99% 1.99% 2.01% outstanding during the period and all other numbers being Trading expense based on actual units outstanding at the relevant point in time. ratio (6) 0.03% 0.03% 0.02% 0.05% 0.07% 0.06% Portfolio turnover rate (7) 3.47% 7.99% 6.36% 43.26% 12.89% 6.08% Net Asset Value per unit (4) $15.42 $14.20 $15.42 $14.40 $14.33 $13.95

2 HSBC World Selection Diversified Balanced Fund

HSBC World Selection Diversified Balanced HSBC World Selection Diversified Balanced Fund – Advisor Series – Net Assets per Unit(1) Fund – Manager Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017* 2016* 2015* 2014* Net assets per unit, Net assets per unit, beginning of period (2) $12.75 $13.88 $12.99 $12.97 $12.65 $11.78 beginning of period (2) $9.32 $10.00 $– $– $– $– Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.14 0.58 0.40 0.44 0.42 0.31 Total revenue 0.11 0.38 – – – – Total expenses (0.12) (0.26) (0.27) (0.29) (0.29) (0.25) Total expenses (0.04) (0.07) – – – – Realized gains (losses) 0.04 0.10 0.11 0.92 0.22 0.11 Realized gains (losses) 0.03 0.06 – – – – Unrealized gains Unrealized gains (losses) 1.02 (1.20) 0.76 (0.47) (0.02) 0.79 (losses) 0.53 (0.69) – 0.17 – – Total increase Total increase (decrease) from (decrease) from operations (2) $1.08 $(0.78) $1.00 $0.60 $0.33 $0.96 operations (2) $0.63 $(0.32) $– $0.17 $– $– Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends) – (0.05) (0.02) (0.01) – (0.01) dividends) – (0.05) – – – – From dividends – (0.08) (0.09) (0.13) (0.04) (0.02) From dividends – (0.08) – – – – From capital gains – (0.21) – (0.66) (0.07) – From capital gains – (0.20) – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $(0.34) $(0.11) $(0.80) $(0.11) $(0.03) distributions (2,3) $– $(0.33) $– $– $– $– Net assets per unit, Net assets per unit, end of period (2) $13.84 $12.75 $13.88 $12.99 $12.97 $12.65 end of period (2) $10.16 $9.32 $– $– $– $–

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017* 2016* 2015* 2014* Net Asset Value (in Net Asset Value (in 000s) (4) $426 $393 $415 $385 $620 $491 000s) (4) $45 $24 $– $– $– $– Number of units Number of units outstanding (in 000s) (4) 31 31 30 30 48 39 outstanding (in 000s) (4) 4 3 – – – – Management expense Management expense ratio ("MER") (5) 1.97% 1.98% 2.09% 2.27% 2.24% 2.07% ratio ("MER") (5) 1.04% 0.90% – 1.04% – – MER before waivers or MER before waivers or absorptions (5) 1.97% 1.98% 2.09% 2.27% 2.24% 2.07% absorptions (5) 1.18% 0.90% – 1.04% – – Trading expense ratio (6) 0.03% 0.03% 0.02% 0.05% 0.07% 0.06% Trading expense ratio (6) 0.03% 0.03% – 0.05% – – Portfolio turnover rate (7) 3.47% 7.99% 6.36% 43.26% 12.89% 6.08% Portfolio turnover rate (7) 3.47% 7.99% – 43.26% – – Net Asset Value per Net Asset Value per unit (4) $13.84 $12.75 $13.88 $12.99 $12.97 $12.65 unit (4) $10.16 $9.32 $– $– $– $– * The Manager Series was fully redeemed during 2014, 2015, 2016 & 2017; however, it remains in offer as at period-end.

3 HSBC World Selection Diversified Balanced Fund

HSBC World Selection Diversified Balanced time. The increase/decrease in net assets from operations per unit is Fund – Institutional Series – Net Assets per based on the weighted average number of units outstanding for the Unit(1) relevant series over the financial period. Period ended June 30, 2019, and years ended December 31 (3) Distributions are automatically reinvested in additional units of the Fund, unless the unitholder withdraws from the automatic June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, reinvestment plan by providing written notice to us. 2019 2018 2017** 2016 2015 2014** (4) This information is provided as at period-end of the year shown. Net assets per unit, beginning of period (2) $9.51 $10.00 $10.13 $9.90 $10.00 $10.06 (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for Increase the stated period and is expressed as an annualized percentage of (decrease) from daily average net asset value during the period. In the year a series is operations: established, the MER is annualized from the date of inception to the Total revenue 0.02 0.10 0.19 0.11 0.22 0.01 end of the period. The MER may vary from one mutual fund to Total expenses – – (0.04) (0.03) – – Realized gains (losses) 0.01 0.01 0.04 0.05 0.04 0.01 another and from one series of units to another. We may have Unrealized gains waived or absorbed certain fees and expenses otherwise payable by (losses) 0.29 (0.12) 0.49 (1.68) (0.09) 0.08 the Fund. The amount of expenses absorbed or waived is at the discretion of and can be terminated at any time by us. Total increase The Fund may invest in units of other mutual funds and pooled (decrease) from funds. You should note that in addition to the fees and expenses operations (2) $0.32 $(0.01) $0.68 $(1.55) $0.17 $0.10 paid by the Fund, these other funds have their own operating Distributions to expenses to pay. The Fund will effectively bear the operating unitholders: expenses of the other funds in proportion to its holdings in the other From net investment funds. However, the Fund will not invest in units of other funds if the income (excluding Fund would be required to pay any management fees in respect of dividends) – (0.06) – (0.01) – – such investments. In addition, the Fund will not make investments in From dividends – (0.10) – (0.14) (0.10) – other funds if the Fund would be required to pay any sales or From capital gains – (0.26) – (0.69) (0.18) – redemption fees in respect of such investments that duplicate a fee Returnofcapital–––––– payable by unitholders of the Fund. Total annual (6) The trading expense ratio represents total commissions and other distributions (2,3) $– $(0.42) $– $(0.84) $(0.28) $– portfolio transaction costs expressed as an annualized percentage of Net assets per unit, daily average net asset value during the financial period. end of period (2) $– $9.51 $– $10.13 $9.90 $– (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio Ratios and Supplemental Data turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, higher the Fund’s portfolio turnover rate in a period, the greater the ** ** 2019 2018 2017 2016 2015 2014 trading costs payable by the Fund in the period, and the greater the Net Asset Value (in chance of an investor receiving taxable capital gains in the period. 000s) (4) $– $1 $– $60 $167 $– There is not necessarily a relationship between a high turnover rate Number of units and the performance of the Fund. The rate is calculated based on outstanding (in 000s) (4) – – – 6 17 – the lesser of purchases or sales of securities divided by the average Management expense weighted market value of the portfolio securities, excluding ratio ("MER") (5) 0.19% 0.31% 0.51% 0.45% 0.07% 0.10% short-term securities. MER before waivers or absorptions (5) 0.19% 0.31% 1.37% 1.33% 0.07% 0.10% Management Fees Trading expense ratio (6) 0.03% 0.03% 0.02% 0.05% 0.07% 0.06% Portfolio turnover rate (7) 3.47% 7.99% 6.36% 43.26% 12.89% 6.08% For the six months ended June 30, 2019, the Fund paid us Net Asset Value per management fees of $5,495,146. The management fee for each unit (4) $– $9.51 $– $10.13 $9.90 $– series is calculated as a percentage of the daily net asset value ** The Institutional Series was fully redeemed during 2014 & 2017; for that series. The fees are reduced, where required, so that however, it remains in offer as at period-end. these fees do not duplicate fees payable by mutual funds in (1) This information is derived from the Fund’s unaudited semi-annual which the Fund invests for the same service. financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net The Fund’s management fees were used by us to pay costs for assets per unit presented in the financial statements is the same as managing the investment portfolio, providing investment the net asset value calculated for fund pricing purposes. analysis and recommendations, making investment decisions, (2) Net assets per unit and distributions per unit are based on the actual making brokerage arrangements for the purchase and sale of number of units outstanding for the relevant series at the relevant the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including

4 HSBC World Selection Diversified Balanced Fund

HSBC Investment Funds (Canada) Inc., for units of the Fund Returns – Advisor Series bought and held by unitholders. Finally, we used management For the 12-month periods ended December 31 and the fees to pay for additional marketing and distribution services to six-month period ended June 30, 2019 the Fund. 20% For the six months ended June 30, 2019, approximately 45% of 15% 13.0% the total management fees collected from all HSBC Mutual 10% 7.8% 7.7% 8.5% 7.6% 6.3% Funds were used to fund distribution costs. In comparison, for 5% 3.4% the Fund, such distribution costs represented 47% of the 0% management fees collected. This may vary by series, depending on the assets invested in each of the series. -5% -2.4% -5.6% -10% Past Performance -15% The performance information shown assumes that all Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2011 2012 2013 2014 2015 2016 2017 2018 2019 distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, Returns – Manager Series For the 12-month periods ended December 31 and the distribution, optional charges or expenses you may be charged six-month period ended June 30, 2019 outside of the Fund or the effect of any income tax you may have to pay as a result of your investment in the Fund that 20% would have reduced returns or performance. The performance of different fund series may vary for a number of reasons, 15% including differences in management fees and expenses. The Fund’s past performance does not necessarily indicate how it 10% 9.0% will perform in the future. 5% Year-by-Year Returns The following bar charts show the Fund’s performance for the 0% six-month period ended June 30, 2019, and for each of the Dec. 31 Jun. 30 previous 12-month periods ended December 31. In percentage 2018* 2019 terms, the bar charts show how much an investment made on * There were no unitholders for the 12 consecutive months prior to 2019. the first day of each financial period would have grown or decreased by the last day of each financial period. Returns – Institutional Series For the 12-month periods ended December 31 and the Returns – Investor Series six-month period ended June 30, 2019 For the 12-month periods ended December 31 and the 20% six-month period ended June 30, 2019 15% 20% 10% 15% 12.3% 13.0% 5% 10% 7.8% 7.7% 7.9% 8.6% 5.9% 6.6% 0% 5% 3.7% -5% 0% -10% -9.0% -5% -2.5% -5.5% -15% -10% Dec. 31 Dec. 31 Jun. 30 2017 2018* 2019* -15% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 * The Institutional Series was fully redeemed during 2018. There were 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 no unitholders for the full six-month period ended June 30, 2019. How- ever, the series remains in offer as at period-end.

5 HSBC World Selection Diversified Balanced Fund

Summary of Investment Portfolio As at June 30, 2019

Asset Mix Percentage of NAV

International Equities 32.45% Bonds 31.83% Canadian Equities 30.99% Cash & Equivalents 4.73% Total 100.00%

Top 25 Holdings* Percentage of NAV

HSBC Global Equity Fund - Institutional Series 28.49% HSBC Equity Fund - Institutional Series 22.71% HSBC Canadian Bond Fund - Institutional Series 20.57% HSBC Mortgage Fund - Institutional Series 5.94% HSBC Dividend Fund - Institutional Series 5.82% HSBC Emerging Markets Debt Fund - Institutional Series 5.32% HSBC Canadian Money Market Fund - Institutional Series 4.88% HSBC Emerging Markets Fund - Institutional Series 3.96% HSBC Small Cap Growth Fund - Institutional Series 2.46% Remaining Holdings -0.15% Total of Top 25 Holdings 100.00% * The Fund had less than 25 holdings as at June 30, 2019.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, FTSE TMX Global Debt Capital Markets Inc., Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC World Selection® Diversified Growth Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019

®World Selection is a registered trademark of HSBC Group Management Services Limited. HSBC World Selection Diversified Growth Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the equities gained 11.9%, domestic equities rose 16.2% and the Fund; we, us and our refer to HSBC Global Asset Management domestic bond market gained 6.5%. (Canada) Limited; and the Fund refers to the HSBC World Although the Fund generated a solid return in the first half of Selection Diversified Growth Fund. 2019, it fell short of its benchmark. The Fund was modestly We are the manager, trustee and primary investment advisor of overweight in a combination of Canadian and global equities the Fund. and underweight in fixed income. While this positioning added value to performance, the Fund’s preference for mortgages over Introduction domestic bonds had a negative impact. Additionally, security This Interim Management Report of Fund Performance contains selection within both the domestic and global equity financial highlights but does not contain either the semi-annual components of the Fund detracted from relative performance. financial report or annual financial statements of the investment fund. You may obtain a copy of the Fund’s semi-annual financial Recent Developments report or annual financial statements at your request, at no cost, The global economy is moving away from the cyclical slowdown by calling us toll-free at 1-888-390-3333, by visiting our website experienced at the end of 2018, led by improving momentum in at www.assetmanagement.hsbc.ca, by visiting the SEDAR both the US and China. While ongoing trade tensions are a website at www.sedar.com or by writing to us at: headwind for both market sentiment and overall growth, we see a low risk of recession in North America for 2019 and 2020. Corporate Secretary Central banks in both the US and Canada have strongly HSBC Global Asset Management (Canada) Limited indicated that they are prepared to lower rates in response to a 3rd Floor, 885 West Georgia Street growth slowdown. We foresee one to two cuts in the US and Vancouver, BC V6C 3E8 likely stable rates in Canada over the next 12 months. You may also contact us using one of these methods to request a We expect that both the global and Canadian economies will copy of the Fund’s proxy voting policies and procedures, proxy improve as the year progresses. Equity markets continue to voting disclosure record or quarterly statement of investment enjoy positive earnings and have relatively attractive valuations portfolio. compared to bonds. In Canada, gains in earnings are Results of Operations moderating after a few very strong years, and we foresee As of June 30, 2019, the Fund's net assets increased by 7.5% to mid-single-digit gains in both 2019 and 2020. $361.1 million from $336.0 million at the end of 2018. Positive The Fund remains overweight in equities. In fixed income, the investment performance, partially offset by net withdrawals, strong rally in government bonds over the last three quarters resulted in an overall increase in net asset value. has left that sector extraordinarily expensive, as is seen by the Government of Canada 10-year bond yield falling from 2.4% on Investment Performance September 30, 2018, to 1.50% on June 30, 2019. We continue The HSBC World Selection Diversified Growth Fund (Investor to find better opportunities in corporate and shorter-term Series) rose 9.14% for the six months ending June 30, 2019, securities. while the benchmark rose 12.07% over the same period. The benchmark is a weighted composite consisting of the MSCI Related Party Transactions World Index (C$) (46%), S&P/TSX Capped Composite Index We, on behalf of the Fund, in our role as fund manager, may, (31%) and FTSE Canada Universe Bond Index (23%). The Fund’s from time to time, enter into transactions or arrangements with returns are after the deduction of fees and expenses, while the or involving other members of the HSBC Group or other people benchmark’s returns do not include any costs of investing. See or companies related or connected to us or the Fund. To the Past Performance section for the returns of other series of proceed with the transactions, the Fund relies on the positive the Fund, which may vary due to differences in management recommendation of the Fund’s Independent Review Committee. fees and expenses. A condition of this positive recommendation is that the Following the sharp equity market downturn in 2018, sentiment transactions are performed in accordance with our policy on was much more positive in the first half of 2019, as the US Related Party Transactions. For more general information on Federal Reserve changed its message from a tightening to an persons related to the Fund and the types of potential easing bias. Although the buoyant market sentiment of the first transactions, see the Fund’s Simplified Prospectus. quarter of 2019 was challenged in the second quarter by The following is a summary of current transactions and escalating US-China trade tensions, markets continued to push arrangements with entities that are related to us or the Fund. higher. Reasonable valuations and corporate fundamentals supported both equity and debt corporate assets, and Manager, Trustee and Investment Advisor government bond prices also rose (yields fell) in anticipation of We are the manager, trustee and primary investment advisor of lower central bank rates. From a Canadian perspective, global the Fund. As manager, we manage the overall business and

1 HSBC World Selection Diversified Growth Fund operations of the Fund. As trustee, we hold legal title to the HSBC World Selection Diversified Growth property of the Fund on your behalf. As primary investment Fund – Investor Series – Net Assets per Unit(1) advisor, we provide investment advice and portfolio Period ended June 30, 2019, and years ended December 31 management services to the Fund. We receive a fee from the June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Fund for these services based on assets under management, 2019 2018 2017 2016 2015 2014 calculated daily and paid monthly. Net assets per unit, beginning of period (2) $14.84 $16.36 $15.00 $15.09 $15.01 $13.86 Distribution Services Increase The Fund is distributed through us, HSBC Investment Funds (decrease) from (Canada) Inc. (our wholly owned subsidiary and affiliate) and operations: HSBC Securities (Canada) Inc. (an affiliate) directly or through its Total revenue 0.13 0.76 0.49 0.49 0.62 0.29 Total expenses (0.15) (0.32) (0.32) (0.33) (0.35) (0.32) division, HSBC InvestDirect. We pay distribution and servicing Realized gains (losses) 0.08 0.20 0.26 1.24 0.83 0.36 fees to them based on the amount of assets held in the Unrealized gains investor’s account, and additionally, in some cases, on the (losses) 1.30 (1.72) 1.01 (0.29) (0.40) 0.80 amount of the initial purchase. If you hold units of this Fund Total increase and/or other HSBC Mutual Funds in a registered plan with HSBC (decrease) from operations (2) $1.36 $(1.08) $1.44 $1.11 $0.70 $1.13 Investment Funds (Canada) Inc., they may charge you an annual fee to cover the annual administration costs of the plan. We Distributions to unitholders: permit HSBC Investment Funds (Canada) Inc. to collect these From net investment fees by redeeming sufficient units of the Fund with the highest income (excluding market value in your registered plan. dividends) – – – – – – From dividends – (0.10) (0.07) (0.09) – – From capital gains – (0.33) – (1.10) (0.68) – Financial Highlights Return of capital – – – – – – The following tables show selected key financial information Total annual about the Fund and are intended to help you understand the distributions (2,3) $– $(0.43) $(0.07) $(1.19) $(0.68) $– Fund’s financial performance for the six-month period ended Net assets per unit, June 30, 2019, and for the last five years ended December 31, end of period (2) $16.20 $14.84 $16.36 $15.00 $15.09 $15.01 as applicable. In the year a fund is established, “period” represents the period from inception to December 31 or June 30 of that fiscal year, as applicable. This information is derived from Ratios and Supplemental Data the Fund’s unaudited semi-annual financial statements and the June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, audited annual financial statements. The information in the 2019 2018 2017 2016 2015 2014 following tables is based on prescribed regulations, and as a Net Asset Value (in result, is not expected to add due to the increase/decrease in net 000s) (4) $360,720 $335,712 $343,068 $315,402 $297,785 $265,597 Number of units assets from operations being based on average units outstanding (in 000s) (4) 22,266 22,616 20,975 21,032 19,737 17,690 outstanding during the period and all other numbers being Management expense based on actual units outstanding at the relevant point in time. ratio ("MER") (5) 2.07% 2.03% 2.17% 2.28% 2.27% 2.28% MER before waivers or absorptions (5) 2.07% 2.03% 2.17% 2.28% 2.27% 2.28% Trading expense ratio (6) 0.03% 0.04% 0.03% 0.06% 0.09% 0.10% Portfolio turnover rate (7) 3.05% 9.70% 11.42% 49.25% 23.62% 11.92% Net Asset Value per unit (4) $16.20 $14.84 $16.36 $15.00 $15.09 $15.01

2 HSBC World Selection Diversified Growth Fund

HSBC World Selection Diversified Growth HSBC World Selection Diversified Growth Fund – Advisor Series – Net Assets per Unit(1) Fund – Manager Series – Net Assets per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019 2018 2017* 2016* 2015* 2014* Net assets per unit, Net assets per unit, beginning of period (2) $12.34 $13.66 $12.56 $12.71 $12.68 $11.71 beginning of period (2) $9.46 $10.00 $10.00 $– $– $18.33 Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.11 0.66 0.39 0.40 0.52 0.21 Total revenue 0.08 0.36 0.01 – – 0.07 Total expenses (0.15) (0.33) (0.32) (0.35) (0.34) (0.28) Total expenses (0.06) (0.02) (0.01) – – (0.09) Realized gains (losses) 0.07 0.16 0.22 1.64 0.69 0.27 Realized gains (losses) 0.05 0.01 0.03 – – 0.15 Unrealized gains Unrealized gains (losses) 1.09 (1.57) 0.82 (1.45) (0.31) 0.87 (losses) 0.82 (0.52) 0.27 0.34 – 0.97 Total increase Total increase (decrease) from (decrease) from operations (2) $1.12 $(1.08) $1.11 $0.24 $0.56 $1.07 operations (2) $0.89 $(0.17) $0.30 $0.34 $– $1.10 Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends – (0.08) (0.05) (0.07) – – From dividends – (0.08) – – – – From capital gains – (0.27) – (0.91) (0.56) – From capital gains – (0.28) – – – – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $(0.35) $(0.05) $(0.98) $(0.56) $– distributions (2,3) $– $(0.36) $– $– $– $– Net assets per unit, Net assets per unit, end of period (2) $13.44 $12.34 $13.66 $12.56 $12.71 $12.68 end of period (2) $10.37 $9.46 $– $– $– $–

3 HSBC World Selection Diversified Growth Fund

HSBC World Selection Diversified Growth time. The increase/decrease in net assets from operations per unit is Fund – Institutional Series – Net Assets per based on the weighted average number of units outstanding for the Unit(1) relevant series over the financial period. Period ended June 30, 2019, and years ended December 31 (3) Distributions are automatically reinvested in additional units of the Fund, unless the unitholder withdraws from the automatic June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, reinvestment plan by providing written notice to us. 2019 2018** 2017** 2016 2015 2014** (4) This information is provided as at period-end of the year shown. Net assets per unit, beginning of period (2) $– $10.00 $10.12 $9.59 $10.00 $10.00 (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for Increase the stated period and is expressed as an annualized percentage of (decrease) from daily average net asset value during the period. In the year a series is operations: established, the MER is annualized from the date of inception to the Total revenue 0.04 – 0.10 0.13 0.27 0.01 end of the period. The MER may vary from one mutual fund to Total expenses – – (0.02) (0.03) – – Realized gains (losses) 0.01 0.01 0.11 0.31 0.04 0.03 another and from one series of units to another. We may have Unrealized gains waived or absorbed certain fees and expenses otherwise payable by (losses) 0.15 (0.12) 0.22 (3.61) (0.06) 0.07 the Fund. The amount of expenses absorbed or waived is at the discretion of and can be terminated at any time by us. Total increase The Fund may invest in units of other mutual funds and pooled (decrease) from funds. You should note that in addition to the fees and expenses operations (2) $0.20 $(0.11) $0.41 $(3.20) $0.25 $0.11 paid by the Fund, these other funds have their own operating Distributions to expenses to pay. The Fund will effectively bear the operating unitholders: expenses of the other funds in proportion to its holdings in the other From net investment funds. However, the Fund will not invest in units of other funds if the income (excluding Fund would be required to pay any management fees in respect of dividends)–––––– such investments. In addition, the Fund will not make investments in From dividends – – – (0.08) – – other funds if the Fund would be required to pay any sales or From capital gains – – – (0.98) (0.66) – redemption fees in respect of such investments that duplicate a fee Returnofcapital–––––– payable by unitholders of the Fund. Total annual (6) The trading expense ratio represents total commissions and other distributions (2,3) $– $– $– $(1.06) $(0.66) $– portfolio transaction costs expressed as an annualized percentage of Net assets per unit, daily average net asset value during the financial period. end of period (2) $10.10 $– $– $10.12 $9.59 $– (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio Ratios and Supplemental Data turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, higher the Fund’s portfolio turnover rate in a period, the greater the ** ** ** 2019 2018 2017 2016 2015 2014 trading costs payable by the Fund in the period, and the greater the Net Asset Value (in chance of an investor receiving taxable capital gains in the period. 000s) (4) $33 $– $– $52 $1,005 $– There is not necessarily a relationship between a high turnover rate Number of units and the performance of the Fund. The rate is calculated based on outstanding (in 000s) (4) 3 – – 5 105 – the lesser of purchases or sales of securities divided by the average Management expense weighted market value of the portfolio securities, excluding ratio ("MER") (5) 0.52% 0.33% 0.39% 0.38% 0.08% 0.09% short-term securities. MER before waivers or absorptions (5) 1.13% 0.33% 0.68% 0.38% 0.08% 0.09% Management Fees Trading expense ratio (6) 0.03% 0.04% 0.03% 0.06% 0.09% 0.10% Portfolio turnover rate (7) 3.05% 9.70% 11.42% 49.25% 23.62% 11.92% For the six months ended June 30, 2019, the Fund paid us Net Asset Value per management fees of $3,080,156. The management fee for each unit (4) $10.10 $– $– $10.12 $9.59 $– series is calculated as a percentage of the daily net asset value ** The Institutional Series was fully redeemed during 2014, 2017 and for that series. The fees are reduced, where required, so that 2018. these fees do not duplicate fees payable by mutual funds in (1) This information is derived from the Fund’s unaudited semi-annual which the Fund invests for the same service. financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net The Fund’s management fees were used by us to pay costs for assets per unit presented in the financial statements is the same as managing the investment portfolio, providing investment the net asset value calculated for fund pricing purposes. analysis and recommendations, making investment decisions, (2) Net assets per unit and distributions per unit are based on the actual making brokerage arrangements for the purchase and sale of number of units outstanding for the relevant series at the relevant the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including

4 HSBC World Selection Diversified Growth Fund

HSBC Investment Funds (Canada) Inc., for units of the Fund Returns – Advisor Series bought and held by unitholders. Finally, we used management For the 12-month periods ended December 31 and the fees to pay for additional marketing and distribution services to six-month period ended June 30, 2019 the Fund. 25% For the six months ended June 30, 2019, approximately 45% of 20% 16.7% 17.9% the total management fees collected from all HSBC Mutual 15% 8.9% 8.3% 9.1% 8.9% Funds were used to fund distribution costs. In comparison, for 10% 7.0% 6.5% 4.6% the Fund, such distribution costs represented 47% of the 5% management fees collected. This may vary by series, depending 0% on the assets invested in each of the series. -5% -5.5% -7.0% Past Performance -10% -15% The performance information shown assumes that all Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 distributions made by the Fund in the periods shown were 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, Returns – Manager Series distribution, optional charges or expenses you may be charged For the 12-month periods ended December 31 and the outside of the Fund or the effect of any income tax you may six-month period ended June 30, 2019 have to pay as a result of your investment in the Fund that 25% would have reduced returns or performance. The performance 20% 19.2% of different fund series may vary for a number of reasons, 15% 10.2% including differences in management fees and expenses. The 10% 8.2% Fund’s past performance does not necessarily indicate how it 5% will perform in the future. 0% -5% Year-by-Year Returns -4.4% The following bar charts show the Fund’s performance for the -10% six-month period ended June 30, 2019, and for each of the -15% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 previous 12-month periods ended December 31. In percentage 2010 2011 2012 2013 2014* 2015* 2016* 2017* 2018* 2019* terms, the bar charts show how much an investment made on the first day of each financial period would have grown or * The Manager Series was fully redeemed during 2014. There were no unitholders outstanding for the full calendar year of 2015 and onwards. decreased by the last day of each financial period. However, the series remains in offer as at period-end. Returns – Investor Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 25% 20% 16.7% 18.0% Asset Mix 15% Percentage 9.0% 9.5% 9.1% of NAV 10% 7.1% 8.4% 7.2% 5.0% 5% International Equities 46.53% Canadian Equities 31.77% 0% Bonds 21.66% -5% Cash & Equivalents 0.04% -5.5% -10% -6.5% Total 100.00% -15% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

5 HSBC World Selection Diversified Growth Fund

Top 25 Holdings* Percentage of NAV

HSBC Global Equity Fund - Institutional Series 41.03% HSBC Equity Fund - Institutional Series 28.71% HSBC Canadian Bond Fund - Institutional Series 9.69% HSBC Mortgage Fund - Institutional Series 6.61% HSBC Emerging Markets Fund - Institutional Series 5.50% HSBC Emerging Markets Debt Fund - Institutional Series 5.36% HSBC Small Cap Growth Fund - Institutional Series 3.06% HSBC Canadian Money Market Fund - Institutional Series 0.21% Remaining Holdings -0.17% Total of Top 25 Holdings 100.00% * The Fund had less than 25 holdings as at June 30, 2019.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, FTSE Global Debt Capital Markets Inc., Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC World Selection® Diversified Aggressive Growth Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019

®World Selection is a registered trademark of HSBC Group Management Services Limited. HSBC World Selection Diversified Aggressive Growth Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the equities gained 11.9%, domestic equities rose 16.2% and the Fund; we, us and our refer to HSBC Global Asset Management domestic bond market gained 6.5%. (Canada) Limited; and the Fund refers to the HSBC World Although the Fund generated a solid return in the first half of Selection Diversified Aggressive Growth Fund. 2019, it fell short of its benchmark. The benchmark was revised We are the manager, trustee and primary investment advisor of on January 1, 2019, by lowering 5% of the fixed income weight the Fund. and adding 3.5% to domestic equity and 1.5% to foreign equity, and we gradually shifted some of the Fund’s assets to align our Introduction investment view with the new benchmark. On average, the This Interim Management Report of Fund Performance contains Fund was slightly underweight in equities and overweight in financial highlights but does not contain either the semi-annual fixed income, and this position had a negative impact on financial report or annual financial statements of the investment performance. Additionally, security selection within both the fund. You may obtain a copy of the Fund’s semi-annual financial domestic and global equity components of the Fund detracted report or annual financial statements at your request, at no cost, by calling us toll-free at 1-888-390-3333, by visiting our website from relative performance. at www.assetmanagement.hsbc.ca, by visiting the SEDAR Recent Developments website at www.sedar.com or by writing to us at: The global economy is moving away from the cyclical slowdown Corporate Secretary experienced at the end of 2018, led by improving momentum in HSBC Global Asset Management (Canada) Limited both the US and China. While ongoing trade tensions are a rd 3 Floor, 885 West Georgia Street headwind for both market sentiment and overall growth, we see Vancouver, BC V6C 3E8 a low risk of recession in North America for 2019 and 2020. You may also contact us using one of these methods to request a Central banks in both the US and Canada have strongly copy of the Fund’s proxy voting policies and procedures, proxy indicated that they are prepared to lower rates in response to a voting disclosure record or quarterly statement of investment growth slowdown. We foresee one to two cuts in the US and portfolio. likely stable rates in Canada over the next 12 months. Results of Operations We expect that both the global and Canadian economies will improve as the year progresses. Equity markets continue to As of June 30, 2019, the Fund's net assets increased by 9.0% to enjoy positive earnings and have relatively attractive valuations $105.3 million from $96.6 million at the end of 2018. Positive compared to bonds. In Canada, gains in earnings are investment performance, partially offset by net withdrawals, moderating after a few very strong years, and we foresee resulted in an overall increase in net asset value. mid-single-digit gains in both 2019 and 2020. Investment Performance The Fund remains overweight in equities. In fixed income, the The HSBC World Selection Diversified Aggressive Growth Fund strong rally in government bonds over the last three quarters (Investor Series) rose 9.26% for the six months ending June 30, has left that sector extraordinarily expensive, as is seen by the 2019, while the benchmark rose 13.02% over the same period. Government of Canada 10-year bond yield falling from 2.4% on The benchmark is a weighted composite consisting of the MSCI September 30, 2018, to 1.50% on June 30, 2019. We continue World Index (C$) (64%), S&P/TSX Capped Composite Index to find better opportunities in corporate and shorter-term (31%) and FTSE Canada Universe Bond Index (5%). The Fund’s securities. returns are after the deduction of fees and expenses, while the benchmark’s returns do not include any costs of investing. See Related Party Transactions the Past Performance section for the returns of other series of We, on behalf of the Fund, in our role as fund manager, may, the Fund, which may vary due to differences in management from time to time, enter into transactions or arrangements with fees and expenses. or involving other members of the HSBC Group or other people or companies related or connected to us or the Fund. To proceed Following the sharp equity market downturn in 2018, sentiment with the transactions, the Fund relies on the positive was much more positive in the first half of 2019, as the US recommendation of the Fund’s Independent Review Committee. A Federal Reserve changed its message from a tightening to an condition of this positive recommendation is that the transactions easing bias. Although the buoyant market sentiment of the first are performed in accordance with our policy on Related Party quarter of 2019 was challenged in the second quarter by Transactions. For more general information on persons related to escalating US-China trade tensions, markets continued to push the Fund and the types of potential transactions, see the Fund’s higher. Reasonable valuations and corporate fundamentals Simplified Prospectus. supported both equity and debt corporate assets, and government bond prices also rose (yields fell) in anticipation of The following is a summary of current transactions and lower central bank rates. From a Canadian perspective, global arrangements with entities that are related to us or the Fund.

1 HSBC World Selection Diversified Aggressive Growth Fund

Manager, Trustee and Investment Advisor HSBC World Selection Diversified Aggressive We are the manager, trustee and primary investment advisor of Growth Fund – Investor Series – Net Assets per the Fund. As manager, we manage the overall business and Unit(1) operations of the Fund. As trustee, we hold legal title to the Period ended June 30, 2019, and years ended December 31 property of the Fund on your behalf. As primary investment June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, advisor, we provide investment advice and portfolio 2019 2018 2017 2016 2015 2014 management services to the Fund. We receive a fee from the Net assets per unit, Fund for these services based on assets under management, beginning of period (2) $15.67 $17.42 $15.72 $15.30 $14.68 $13.39 calculated daily and paid monthly. Increase (decrease) from Distribution Services operations: The Fund is distributed through us, HSBC Investment Funds Total revenue 0.09 0.87 0.54 0.46 0.75 0.30 Total expenses (0.17) (0.35) (0.35) (0.34) (0.36) (0.33) (Canada) Inc. (our wholly owned subsidiary and affiliate) and Realized gains (losses) 0.10 0.27 0.32 0.88 0.67 0.34 HSBC Securities (Canada) Inc. (an affiliate) directly or through its Unrealized gains division, HSBC InvestDirect. We pay distribution and servicing (losses) 1.42 (2.04) 1.25 0.16 (0.19) 0.94 fees to them based on the amount of assets held in the Total increase investor’s account, and additionally, in some cases, on the (decrease) from operations (2) $1.44 $(1.25) $1.76 $1.16 $0.87 $1.25 amount of the initial purchase. If you hold units of this Fund and/or other HSBC Mutual Funds in a registered plan with HSBC Distributions to unitholders: Investment Funds (Canada) Inc., they may charge you an annual From net investment fee to cover the annual administration costs of the plan. We income (excluding permit HSBC Investment Funds (Canada) Inc. to collect these dividends) – – – – – – From dividends – (0.09) (0.07) (0.06) – – fees by redeeming sufficient units of the Fund with the highest From capital gains – (0.42) – (0.63) (0.38) – market value in your registered plan. Return of capital – – – – – – Total annual Financial Highlights distributions (2,3) $– $(0.51) $(0.07) $(0.69) $(0.38) $– The following tables show selected key financial information Net assets per unit, about the Fund and are intended to help you understand the end of period (2) $17.12 $15.67 $17.42 $15.72 $15.30 $14.68 Fund’s financial performance for the six-month period ended June 30, 2019, and for the last five years ended December 31, as applicable. In the year a fund is established, “period” Ratios and Supplemental Data represents the period from inception to December 31 or June 30 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, of that fiscal year, as applicable. This information is derived from 2019 2018 2017 2016 2015 2014 the Fund’s unaudited semi-annual financial statements and the Net Asset Value (in audited annual financial statements. The information in the 000s) (4) $105,223 $96,034 $95,121 $84,052 $75,987 $59,490 Number of units following tables is based on prescribed regulations, and as a outstanding (in 000s) (4) 6,147 6,130 5,460 5,348 4,966 4,051 result, is not expected to add due to the increase/decrease in net Management expense assets from operations being based on average units ratio ("MER") (5) 2.14% 2.10% 2.22% 2.34% 2.35% 2.36% MER before waivers or outstanding during the period and all other numbers being absorptions (5) 2.14% 2.10% 2.22% 2.34% 2.35% 2.36% based on actual units outstanding at the relevant point in time. Trading expense ratio (6) 0.04% 0.04% 0.04% 0.08% 0.11% 0.13% Portfolio turnover rate (7) 9.21% 10.05% 12.45% 47.53% 24.71% 13.48% Net Asset Value per unit (4) $17.12 $15.67 $17.42 $15.72 $15.30 $14.68

2 HSBC World Selection Diversified Aggressive Growth Fund

HSBC World Selection Diversified Aggressive HSBC World Selection Diversified Aggressive Growth Fund – Advisor Series – Net Assets per Growth Fund – Institutional Series – Net Assets Unit(1) per Unit(1) Period ended June 30, 2019, and years ended December 31 Period ended June 30, 2019, and years ended December 31 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019* 2018 2017* 2016* 2015 2014* Net assets per unit, Net assets per unit, beginning of period (2) $14.67 $16.34 $14.82 $14.38 $13.87 $12.66 beginning of period (2) $8.79 $10.00 $– $9.57 $10.00 $– Increase Increase (decrease) from (decrease) from operations: operations: Total revenue 0.09 0.56 0.51 0.32 0.93 0.23 Total revenue – 0.50 0.01 0.01 0.19 – Total expenses (0.16) (0.37) (0.36) (0.39) (0.40) (0.32) Total expenses – (0.01) – (0.11) – – Realized gains (losses) 0.10 0.28 0.30 0.68 0.60 0.30 Realized gains (losses) – 0.10 0.06 0.01 0.30 – Unrealized gains Unrealized gains (losses) 0.98 (1.47) 1.33 (1.82) (0.31) 1.06 (losses) 0.06 (1.36) 0.15 (0.50) (0.71) – Total increase Total increase (decrease) from (decrease) from operations (2) $1.01 $(1.00) $1.78 $(1.21) $0.82 $1.27 operations (2) $0.06 $(0.77) $0.22 $(0.59) $(0.22) $– Distributions to Distributions to unitholders: unitholders: From net investment From net investment income (excluding income (excluding dividends)–––––– dividends) – – – – – – From dividends – (0.08) (0.06) (0.06) – – From dividends – (0.07) – – – – From capital gains – (0.40) – (0.57) (0.35) – From capital gains – (0.34) – – (0.46) – Returnofcapital–––––– Return of capital – – – – – – Total annual Total annual distributions (2,3) $– $(0.48) $(0.06) $(0.63) $(0.35) $– distributions (2,3) $– $(0.41) $– $– $(0.46) $– Net assets per unit, Net assets per unit, end of period (2) $16.02 $14.67 $16.34 $14.82 $14.38 $13.87 end of period (2) $– $8.79 $– $– $9.57 $–

Ratios and Supplemental Data Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 2019* 2018 2017* 2016* 2015 2014* Net Asset Value (in Net Asset Value (in 000s) (4) $29 $16 $12 $14 $98 $53 000s) (4) $– $515 $– $– $15 $– Number of units Number of units outstanding (in 000s) (4) 2 11174outstanding (in 000s) (4) – 59 – – 2 – Management expense Management expense ratio ("MER") (5) 2.26% 2.38% 2.46% 2.87% 2.79% 2.47% ratio ("MER") (5) 0.24% 0.22% 0.32% 7.75% 0.30% – MER before waivers or MER before waivers or absorptions (5) 5.35% 5.47% 10.01% 6.32% 4.21% 2.47% absorptions (5) 0.24% 0.22% 0.32% 7.76% 0.30% – Trading expense ratio (6) 0.04% 0.04% 0.04% 0.08% 0.11% 0.13% Trading expense ratio (6) 0.04% 0.04% 0.04% 0.08% 0.11% – Portfolio turnover rate (7) 9.21% 10.05% 12.45% 47.53% 24.71% 13.48% Portfolio turnover rate (7) 9.21% 10.05% 12.45% 47.53% 24.71% – Net Asset Value per Net Asset Value per unit (4) $16.02 $14.67 $16.34 $14.82 $14.38 $13.87 unit (4) $– $8.79 $– $– $9.57 $– * The Institutional Series was fully redeemed during 2014, 2016, 2017 & 2019; however, it remains in offer as at period-end. (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant

3 HSBC World Selection Diversified Aggressive Growth Fund

time. The increase/decrease in net assets from operations per unit is HSBC Investment Funds (Canada) Inc., for units of the Fund based on the weighted average number of units outstanding for the bought and held by unitholders. Finally, we used management relevant series over the financial period. fees to pay for additional marketing and distribution services to (3) Distributions are automatically reinvested in additional units of the the Fund. Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. For the six months ended June 30, 2019, approximately 45% of (4) This information is provided as at period-end of the year shown. the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the Fund, such distribution costs represented 46% of the the stated period and is expressed as an annualized percentage of management fees collected. This may vary by series, depending daily average net asset value during the period. In the year a series is on the assets invested in each of the series. established, the MER is annualized from the date of inception to the end of the period. The MER may vary from one mutual fund to Past Performance another and from one series of units to another. We may have The performance information shown assumes that all waived or absorbed certain fees and expenses otherwise payable by distributions made by the Fund in the periods shown were the Fund. The amount of expenses absorbed or waived is at the reinvested in additional securities of the Fund. The performance discretion of and can be terminated at any time by us. The Fund may invest in units of other mutual funds and pooled information does not take into account sales, redemption, funds. You should note that in addition to the fees and expenses distribution, optional charges or expenses you may be charged paid by the Fund, these other funds have their own operating outside of the Fund or the effect of any income tax you may expenses to pay. The Fund will effectively bear the operating have to pay as a result of your investment in the Fund that expenses of the other funds in proportion to its holdings in the other would have reduced returns or performance. The performance funds. However, the Fund will not invest in units of other funds if the of different fund series may vary for a number of reasons, Fund would be required to pay any management fees in respect of including differences in management fees and expenses. The such investments. In addition, the Fund will not make investments in other funds if the Fund would be required to pay any sales or Fund’s past performance does not necessarily indicate how it redemption fees in respect of such investments that duplicate a fee will perform in the future. payable by unitholders of the Fund. (6) The trading expense ratio represents total commissions and other Year-by-Year Returns portfolio transaction costs expressed as an annualized percentage of The following bar charts show the Fund’s performance for the daily average net asset value during the financial period. six-month period ended June 30, 2019, and for each of the (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s previous 12-month periods ended December 31. In percentage portfolio advisor manages its portfolio investments. A portfolio terms, the bar charts show how much an investment made on turnover rate of 100% is equivalent to the Fund buying and selling all the first day of each financial period would have grown or of the securities in its portfolio once in the course of the period. The decreased by the last day of each financial period. higher the Fund’s portfolio turnover rate in a period, the greater the trading costs payable by the Fund in the period, and the greater the Returns – Investor Series chance of an investor receiving taxable capital gains in the period. For the 12-month periods ended December 31 and the There is not necessarily a relationship between a high turnover rate six-month period ended June 30, 2019 and the performance of the Fund. The rate is calculated based on 30% the lesser of purchases or sales of securities divided by the average 24.1% weighted market value of the portfolio securities, excluding 18.7% short-term securities. 20% 11.3% 10.1% 9.7% 9.3% Management Fees 10% 6.8% 6.8% 7.2% For the six months ended June 30, 2019, the Fund paid us 0% management fees of $892,534. The management fee for each series is calculated as a percentage of the daily net asset value -10% -8.3% -7.1% for that series. The fees are reduced, where required, so that -20% these fees do not duplicate fees payable by mutual funds in Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 which the Fund invests for the same service. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

4 HSBC World Selection Diversified Aggressive Growth Fund

Returns – Advisor Series Summary of Investment Portfolio For the 12-month periods ended December 31 and the As at June 30, 2019 six-month period ended June 30, 2019 30% 24.0% Asset Mix 20% Percentage of NAV 10.2% 9.6% 10.7% 9.2% 10% 7.4% 6.1% International Equities 64.17% Canadian Equities 30.29% 0% Bonds 5.70% Cash & Equivalents -0.16% -10% -7.2% -8.4% Total 100.00% -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2011 2012 2013 2014 2015 2016 2017 2018 2019 Top 25 Holdings* Percentage Returns – Institutional Series of NAV For the 12-month periods ended December 31 and the HSBC Global Equity Fund - Institutional Series 56.75% six-month period ended June 30, 2019 HSBC Equity Fund - Institutional Series 27.23% 30% HSBC Emerging Markets Fund - Institutional Series 7.42% HSBC Small Cap Growth Fund - Institutional Series 3.06% HSBC Emerging Markets Debt Fund - Institutional Series 2.98% HSBC Mortgage Fund - Institutional Series 2.06% 20% HSBC Canadian Bond Fund - Institutional Series 0.66% 12.5% Remaining Holdings -0.16% Total of Top 25 Holdings 100.00% 10% * The Fund had less than 25 holdings as at June 30, 2019.

0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2012 2013* 2014* 2015* 2016* 2017* 2018* 2019*

* The Institutional Series was fully redeemed during 2013. There were no unitholders for the full calendar year of 2014 and onwards. How- ever, the series remains in offer as at period-end.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, FTSE Global Debt Capital Markets Inc., Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Wealth CompassTM Conservative Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019

HSBC Wealth CompassTM is a trademark of HSBC Group Management Services Limited. HSBC Wealth Compass Conservative Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the higher. Reasonable valuations and corporate fundamentals Fund; we, us and our refer to HSBC Global Asset Management supported both equity and debt corporate assets, and (Canada) Limited; and the Fund refers to the HSBC Wealth government bond prices also rose (yields fell) in anticipation of Compass Conservative Fund. lower central bank rates.

We are the manager, trustee and primary investment advisor of As the Fund’s underlying holdings are passively managed, the the Fund. Fund’s performance reflects the performance of the markets in which it invests. In the first half of 2019, the Fund’s fixed income Introduction holding delivered positive returns, with the FTSE Canada 91 Day This Interim Management Report of Fund Performance contains T-Bill Index and FTSE Canada Universe Bond Total Return Index financial highlights but does not contain either the semi-annual returning 0.81% and 6.52%, respectively. Equities were also financial report or annual financial statements of the investment positive, with domestic equities (as measured by the S&P/TSX fund. You may obtain a copy of the Fund’s semi-annual financial Composite Index) returning 16.22% year to date and global report or annual financial statements at your request, at no cost, equities (as measured by the MSCI ACWI ex Canada Index (net)) by calling us toll-free at 1-888-390-3333, by visiting our website returning 11.06% year to date. at www.assetmanagement.hsbc.ca, by visiting the SEDAR website at www.sedar.com or by writing to us at: Recent Developments The global economy is moving away from the cyclical slowdown Corporate Secretary experienced at the end of 2018, led by improving momentum in HSBC Global Asset Management (Canada) Limited both the US and China. While ongoing trade tensions are a rd 3 Floor, 885 West Georgia Street headwind for both market sentiment and overall growth, we see Vancouver, BC V6C 3E8 a low risk of recession in North America for 2019 and 2020. You may also contact us using one of these methods to request a Central banks in both the US and Canada have strongly copy of the Fund’s proxy voting policies and procedures, proxy indicated that they are prepared to lower rates in response to a growth slowdown. We foresee one to two cuts in the US and voting disclosure record or quarterly statement of investment likely stable rates in Canada over the next 12 months. portfolio. We expect that both the global and Canadian economies will Results of Operations improve as the year progresses. Equity markets continue to As of June 30, 2019, the Fund's net assets increased by 400.0% enjoy positive earnings and have relatively attractive valuations to $1.0 million from $0.2 million at the end of 2018. Net compared to bonds. In Canada, gains in earnings are contributions and positive investment performance resulted in moderating after a few very strong years, and we foresee an overall increase in net asset value. mid-single-digit gains in both 2019 and 2020.

Investment Performance Related Party Transactions The HSBC Wealth Compass Conservative Fund (Investor We, on behalf of the Fund, in our role as fund manager, may, Series) rose 8.03% for the six months ending June 30, 2019, from time to time, enter into transactions or arrangements with while the benchmark rose 8.25% over the same period. The or involving other members of the HSBC Group or other people Fund’s benchmark is a weighted composite consisting of the or companies related or connected to us or the Fund. To proceed FTSE Canada Universe Bond Total Return Index (65%), S&P/TSX with the transactions, the Fund relies on the positive Capped Composite Index (16%), MSCI ACWI ex Canada Index recommendation of the Fund’s Independent Review Committee. A (net) (C$) (12%) and FTSE Canada 91 Day T-Bill Index (7%). The condition of this positive recommendation is that the transactions Fund’s returns are after the deduction of fees and expenses, are performed in accordance with our policy on Related Party Transactions. For more general information on persons related to while the benchmark’s returns do not include any costs of the Fund and the types of potential transactions, see the Fund’s investing. See the Past Performance section for the returns of Simplified Prospectus. other series of the Fund, which may vary due to differences in management fees and expenses. The following is a summary of current transactions and arrangements with entities that are related to us or the Fund. Following the sharp equity market downturn in 2018, sentiment was much more positive in the first half of 2019 as the US Manager, Trustee and Investment Advisor Federal Reserve changed its message from a tightening to an We are the manager, trustee and primary investment advisor of easing bias. Although the buoyant market sentiment of the first the Fund. As manager, we manage the overall business and quarter of 2019 was challenged in the second quarter by operations of the Fund. As trustee, we hold legal title to the escalating US-China trade tensions, markets continued to push property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio

1 HSBC Wealth Compass Conservative Fund management services to the Fund. We receive a fee from the Ratios and Supplemental Data Fund for these services based on assets under management, June 30, Dec. 31, calculated daily and paid monthly. 2019 2018 Net Asset Value (in 000s) (4) $875 $82 Distribution Services Number of units outstanding (in 000s) (4) 82 8 The Fund is distributed through us, HSBC Investment Funds Management expense ratio ("MER") (5) 0.86% 0.90% (Canada) Inc. (our wholly owned subsidiary and affiliate) and MER before waivers or absorptions (5) 13.18% 26.11% Trading expense ratio (6) 0.12% 0.08% HSBC Securities (Canada) Inc. (an affiliate) directly or through its Portfolio turnover rate (7) 3.45% 14.76% division, HSBC InvestDirect. We pay distribution and servicing Net Asset Value per unit (4) $10.66 $9.86 fees to them based on the amount of assets held in the investor’s account, and additionally, in some cases, on the HSBC Wealth Compass Conservative Fund – amount of the initial purchase. If you hold units of this Fund (1) and/or other HSBC Mutual Funds in a registered plan with HSBC Institutional Series – Net Assets per Unit Period ended June 30, 2019, and year ended December 31 Investment Funds (Canada) Inc., they may charge you an annual fee to cover the annual administration costs of the plan. We June 30, Dec. 31, 2019 2018 permit HSBC Investment Funds (Canada) Inc. to collect these fees by redeeming sufficient units of the Fund with the highest Net assets per unit, beginning of period (2) $9.99 $10.00 market value in your registered plan. Increase (decrease) from operations: Total revenue 0.14 0.22 Total expenses – 0.01 Financial Highlights Realized gains (losses) – (0.04) The following tables show selected key financial information Unrealized gains (losses) 0.71 (0.20) about the Fund and are intended to help you understand the Total increase (decrease) from operations (2) $0.85 $(0.01) Fund’s financial performance for the six-month period ended Distributions to unitholders: June 30, 2019, and for the year ended December 31, 2018. In From net investment income (excluding dividends) – – the year a fund is established, “period” represents the period From dividends – – from inception to December 31 or June 30 of that fiscal year, as From capital gains – – Return of capital – – applicable. This information is derived from the Fund’s unaudited semi-annual financial statements and the audited Total annual distributions (2,3) $– $– annual financial statements. The information in the following Net assets per unit, end of period (2) $10.83 $9.99 tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net assets from Ratios and Supplemental Data operations being based on average units outstanding during the June 30, Dec. 31, period and all other numbers being based on actual units 2019 2018 outstanding at the relevant point in time. Net Asset Value (in 000s) (4) $163 $150 Number of units outstanding (in 000s) (4) 15 15 Management expense ratio ("MER") (5) 0.14% 0.15% HSBC Wealth Compass Conservative Fund – MER before waivers or absorptions (5) 17.83% 44.90% (1) Investor Series – Net Assets per Unit Trading expense ratio (6) 0.12% 0.08% Period ended June 30, 2019, and year ended December 31 Portfolio turnover rate (7) 3.45% 14.76% Net Asset Value per unit (4) $10.83 $9.99 June 30, Dec. 31, 2019 2018 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All Net assets per unit, beginning of period (2) $9.86 $10.00 balances are stated in accordance with IFRS. Under IFRS, the net Increase (decrease) from operations: assets per unit presented in the financial statements is the same as Total revenue 0.17 0.28 the net asset value calculated for fund pricing purposes. Total expenses (0.04) (0.06) (1) This information is derived from the Fund's unaudited semi-annual Realized gains (losses) 0.01 (0.05) Unrealized gains (losses) 0.42 (0.40) financial statements and audited annual financial statements. (2) Total increase (decrease) from operations (2) $0.56 $(0.23) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant Distributions to unitholders: From net investment income (excluding dividends) – – From dividends – – From capital gains – – Return of capital – – Total annual distributions (2,3) $– $– Net assets per unit, end of period (2) $10.66 $9.86

2 HSBC Wealth Compass Conservative Fund

time. The increase/decrease in net assets from operations per unit is HSBC Investment Funds (Canada) Inc., for units of the Fund based on the weighted average number of units outstanding for the bought and held by unitholders. Finally, we used management relevant series over the financial period. fees to pay for additional marketing and distribution services to (3) Distributions are automatically reinvested in additional units of the the Fund. Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. For the six months ended June 30, 2019, approximately 45% of (4) This information is provided as at period-end of the year shown. the total management fees collected from all HSBC Mutual (5) Management expense ratio is based on total expenses (excluding Funds were used to fund distribution costs. In comparison, for distributions, commissions and other portfolio transaction costs) for the Fund, such distribution costs represented 29% of the the stated period and is expressed as an annualized percentage of management fees collected. This may vary by series, depending daily average net asset value during the period. In the year a series is established, the MER is annualized from the date of inception to the on the assets invested in each of the series. end of the period. The MER may vary from one mutual fund to another and from one series of units to another. We may have Past Performance waived or absorbed certain fees and expenses otherwise payable by The Fund began operations on April 5, 2018. Due to policies the Fund. The amount of expenses absorbed or waived is at the issued by the Canadian Securities Administrators, rates of return discretion of and can be terminated at any time by us. are not reported for funds in existence for less than one year. The Fund may invest in units of other mutual funds and pooled funds. You should note that in addition to the fees and expenses paid by the Fund, these other funds have their own operating Year-by-Year Returns expenses to pay. The Fund will effectively bear the operating The following bar charts show the Fund’s performance for the expenses of the other funds in proportion to its holdings in the other six-month period ended June 30, 2019, and for each of the funds. However, the Fund will not invest in units of other funds if the previous 12-month periods ended December 31. In percentage Fund would be required to pay any management fees in respect of terms, the bar charts show how much an investment made on such investments. In addition, the Fund will not make investments in other funds if the Fund would be required to pay any sales or the first day of each financial period would have grown or redemption fees in respect of such investments that duplicate a fee decreased by the last day of each financial period. payable by unitholders of the Fund. Returns – Investor Series Effective May 17, 2019, the management fees for the Investor Series For the 12-month periods ended December 31 and the of this fund was reduced from 0.75% to 0.50% and for the Manager Series was reduced from 0.40% to 0.25%. six-month period ended June 30, 2019 (6) The trading expense ratio represents total commissions and other 10% portfolio transaction costs expressed as an annualized percentage of 8.0% daily average net asset value during the financial period. (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all 5% of the securities in its portfolio once in the course of the period. The higher the Fund’s portfolio turnover rate in a period, the greater the trading costs payable by the Fund in the period, and the greater the chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 0% Dec. 31 Jun. 30 and the performance of the Fund. The rate is calculated based on 2018* 2019 the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding * The Fund was launched in April 2018 so there is no 2018 calendar short-term securities. year performance return. Management Fees For the six months ended June 30, 2019, the Fund paid us management fees of $1,340. The management fee for each series is calculated as a percentage of the daily net asset value for that series. The fees are reduced, where required, so that these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. The Fund’s management fees were used by us to pay costs for managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including

3 HSBC Wealth Compass Conservative Fund

Returns – Institutional Series Top 25 Holdings* For the 12-month periods ended December 31 and the Percentage six-month period ended June 30, 2019 of NAV

10% iShares Core Canadian Universe Bond Index ETF 66.67% 8.5% iShares Core S&P/TSX Capped Composite Index ETF 15.80% HSBC Canadian Money Market Fund - Institutional Series 6.84% iShares Core S&P Total US Stock Market ETF 6.74% iShares Core MSCI Total International Stock ETF 4.91% 5% Remaining Holdings -0.96% Total of Top 25 Holdings 100.00% * The Fund had less than 25 holdings as at June 30, 2019.

0% Dec. 31 Jun. 30 2018* 2019

* The Fund was launched in April 2018 so there is no 2018 calendar year performance return. Summary of Investment Portfolio As at June 30, 2019

Asset Mix Percentage of NAV

Bonds 66.67% Canadian Equities 15.80% International Equities 11.65% Cash & Equivalents 5.88% Total 100.00%

4 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents, as well as the Funds’ 3 Floor, 885 West Georgia Street Financial Statements, at no cost by calling us toll-free at Vancouver, BC V6C 3E8 1-888-390-3333, contacting your authorized dealer or Toronto visiting our website at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, FTSE Global Debt Capital Markets Inc., Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Wealth CompassTM Moderate Conservative Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019

HSBC Wealth CompassTM is a trademark of HSBC Group Management Services Limited. HSBC Wealth Compass Moderate Conservative Fund

We are the manager, trustee and primary investment advisor of As the Fund’s underlying holdings are passively managed, the the Fund. Fund’s performance reflects the performance of the markets in which it invests. In the first half of 2019, the Fund’s fixed income Introduction holding delivered positive returns, with the FTSE Canada 91 Day This Interim Management Report of Fund Performance contains T-Bill Index and FTSE Canada Universe Bond Total Return Index financial highlights but does not contain either the semi-annual returning 0.81% and 6.52%, respectively. Equities were also financial report or annual financial statements of the investment positive, with domestic equities (as measured by the S&P/TSX fund. You may obtain a copy of the Fund’s semi-annual financial Composite Index) returning 16.22% year to date and global report or annual financial statements at your request, at no cost, equities (as measured by the MSCI ACWI ex Canada Index (net)) by calling us toll-free at 1-888-390-3333, by visiting our website returning 11.06% year to date. at www.assetmanagement.hsbc.ca, by visiting the SEDAR website at www.sedar.com or by writing to us at: Recent Developments The global economy is moving away from the cyclical slowdown Corporate Secretary experienced at the end of 2018, led by improving momentum in HSBC Global Asset Management (Canada) Limited both the US and China. While ongoing trade tensions are a rd 3 Floor, 885 West Georgia Street headwind for both market sentiment and overall growth, we see Vancouver, BC V6C 3E8 a low risk of recession in North America for 2019 and 2020. You may also contact us using one of these methods to request a Central banks in both the US and Canada have strongly copy of the Fund’s proxy voting policies and procedures, proxy indicated that they are prepared to lower rates in response to a growth slowdown. We foresee one to two cuts in the US and voting disclosure record or quarterly statement of investment likely stable rates in Canada over the next 12 months. portfolio. We expect that both the global and Canadian economies will Results of Operations improve as the year progresses. Equity markets continue to As of June 30, 2019, the Fund's net assets increased by 566.7% enjoy positive earnings and have relatively attractive valuations to $2.0 million from $0.3 million at the end of 2018. Net compared to bonds. In Canada, gains in earnings are contributions and positive investment performance resulted in moderating after a few very strong years, and we foresee an overall increase in net asset value. mid-single-digit gains in both 2019 and 2020.

Investment Performance Related Party Transactions The HSBC Wealth Compass Moderate Conservative Fund We, on behalf of the Fund, in our role as fund manager, may, (Investor Series) rose 8.95% for the six months ending June 30, from time to time, enter into transactions or arrangements with 2019, while the benchmark rose 9.40% over the same period. or involving other members of the HSBC Group or other people The Fund’s benchmark is a composite consisting of the FTSE or companies related or connected to us or the Fund. To proceed Canada Universe Bond Total Return Index (52%), S&P/TSX with the transactions, the Fund relies on the positive Composite Total Return Index (10% Capped) (22.5%), MSCI recommendation of the Fund’s Independent Review Committee. A ACWI ex Canada Index (net) (C$) (20.5%) and FTSE Canada 91 condition of this positive recommendation is that the transactions Day T-Bill Index (5%). The Fund’s returns are after the deduction are performed in accordance with our policy on Related Party Transactions. For more general information on persons related to of fees and expenses, while the benchmark’s returns do not the Fund and the types of potential transactions, see the Fund’s include any costs of investing. See the Past Performance section Simplified Prospectus. for the returns of other series of the Fund, which may vary due to differences in management fees and expenses. The following is a summary of current transactions and arrangements with entities that are related to us or the Fund. Following the sharp equity market downturn in 2018, sentiment was much more positive in the first half of 2019 as the US Manager, Trustee and Investment Advisor Federal Reserve changed its message from a tightening to an We are the manager, trustee and primary investment advisor of easing bias. Although the buoyant market sentiment of the first the Fund. As manager, we manage the overall business and quarter of 2019 was challenged in the second quarter by operations of the Fund. As trustee, we hold legal title to the escalating US-China trade tensions, markets continued to push property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio

1 HSBC Wealth Compass Moderate Conservative Fund management services to the Fund. We receive a fee from the Ratios and Supplemental Data Fund for these services based on assets under management, June 30, Dec. 31, calculated daily and paid monthly. 2019 2018 Net Asset Value (in 000s) (4) $1,812 $150 Distribution Services Number of units outstanding (in 000s) (4) 165 15 The Fund is distributed through us, HSBC Investment Funds Management expense ratio ("MER") (5) 0.87% 0.90% (Canada) Inc. (our wholly owned subsidiary and affiliate) and MER before waivers or absorptions (5) 8.09% 21.70% Trading expense ratio (6) 0.16% 0.09% HSBC Securities (Canada) Inc. (an affiliate) directly or through its Portfolio turnover rate (7) 13.90% 16.72% division, HSBC InvestDirect. We pay distribution and servicing Net Asset Value per unit (4) $11.00 $10.10 fees to them based on the amount of assets held in the investor’s account, and additionally, in some cases, on the amount of the initial purchase. If you hold units of this Fund HSBC Wealth Compass Moderate Conservative Fund – Institutional Series – Net Assets per and/or other HSBC Mutual Funds in a registered plan with HSBC (1) Investment Funds (Canada) Inc., they may charge you an annual Unit Period ended June 30, 2019, and year ended December 31 fee to cover the annual administration costs of the plan. We permit HSBC Investment Funds (Canada) Inc. to collect these June 30, Dec. 31, 2019 2018 fees by redeeming sufficient units of the Fund with the highest Net assets per unit, beginning of period (2) $9.89 $10.00 market value in your registered plan. Increase (decrease) from operations: Financial Highlights Total revenue 0.14 0.21 Total expenses – 0.01 The following tables show selected key financial information Realized gains (losses) 0.04 (0.06) about the Fund and are intended to help you understand the Unrealized gains (losses) 0.73 (0.28) Fund’s financial performance for the six-month period ended Total increase (decrease) from operations (2) $0.91 $(0.12) June 30, 2019, and for the year ended December 31, 2018. In Distributions to unitholders: the year a fund is established, “period” represents the period From net investment income (excluding dividends) – – from inception to December 31 or June 30 of that fiscal year, as From dividends – – applicable. This information is derived from the Fund’s From capital gains – – Return of capital – – unaudited semi-annual financial statements and the audited Total annual distributions (2,3) $– $– annual financial statements. The information in the following tables is based on prescribed regulations, and as a result, is not Net assets per unit, end of period (2) $10.81 $9.89 expected to add due to the increase/decrease in net assets from operations being based on average units outstanding during the Ratios and Supplemental Data period and all other numbers being based on actual units June 30, Dec. 31, outstanding at the relevant point in time. 2019 2018 Net Asset Value (in 000s) (4) $162 $148 HSBC Wealth Compass Moderate Conservative Number of units outstanding (in 000s) (4) 15 15 (1) Management expense ratio ("MER") (5) 0.14% 0.15% Fund – Investor Series – Net Assets per Unit MER before waivers or absorptions (5) 10.64% 42.51% Period ended June 30, 2019, and year ended December 31 Trading expense ratio (6) 0.16% 0.09% Portfolio turnover rate (7) 13.90% 16.72% June 30, Dec. 31, Net Asset Value per unit (4) $10.81 $9.89 2019 2018 (1) This information is derived from the Fund’s unaudited semi-annual Net assets per unit, beginning of period (2) $10.10 $10.00 financial report and audited annual financial statements. All Increase (decrease) from operations: balances are stated in accordance with IFRS. Under IFRS, the net Total revenue 0.19 0.26 assets per unit presented in the financial statements is the same as Total expenses (0.04) (0.10) the net asset value calculated for fund pricing purposes. Realized gains (losses) 0.04 (0.06) Unrealized gains (losses) 0.42 (0.30) (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant Total increase (decrease) from operations (2) $0.61 $(0.20) time. The increase/decrease in net assets from operations per unit is Distributions to unitholders: based on the weighted average number of units outstanding for the From net investment income (excluding dividends) – – relevant series over the financial period. From dividends – – (3) Distributions are automatically reinvested in additional units of the From capital gains – – Fund, unless the unitholder withdraws from the automatic Return of capital – – reinvestment plan by providing written notice to us. Total annual distributions (2,3) $– $– (4) This information is provided as at period-end of the year shown. Net assets per unit, end of period (2) $11.00 $10.10 (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for

2 HSBC Wealth Compass Moderate Conservative Fund

the stated period and is expressed as an annualized percentage of the Fund, such distribution costs represented 20% of the daily average net asset value during the period. In the year a series is management fees collected. This may vary by series, depending established, the MER is annualized from the date of inception to the on the assets invested in each of the series. end of the period. The MER may vary from one mutual fund to another and from one series of units to another. We may have Past Performance waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the The Fund began operations on April 5, 2018. Due to policies discretion of and can be terminated at any time by us. issued by the Canadian Securities Administrators, rates of return The Fund may invest in units of other mutual funds and pooled are not reported for funds in existence for less than one year. funds. You should note that in addition to the fees and expenses paid by the Fund, these other funds have their own operating Year-by-Year Returns expenses to pay. The Fund will effectively bear the operating The following bar charts show the Fund’s performance for the expenses of the other funds in proportion to its holdings in the other six-month period ended June 30, 2019, and for each of the funds. However, the Fund will not invest in units of other funds if the previous 12-month periods ended December 31. In percentage Fund would be required to pay any management fees in respect of terms, the bar charts show how much an investment made on such investments. In addition, the Fund will not make investments in other funds if the Fund would be required to pay any sales or the first day of each financial period would have grown or redemption fees in respect of such investments that duplicate a fee decreased by the last day of each financial period. payable by unitholders of the Fund. Returns – Investor Series Effective May 17, 2019, the management fees for the Investor Series For the 12-month periods ended December 31 and the of this fund was reduced from 0.75% to 0.50% and for the Manager Series was reduced from 0.40% to 0.25%. six-month period ended June 30, 2019 10% (6) The trading expense ratio represents total commissions and other 8.9% portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the financial period. (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all 5% of the securities in its portfolio once in the course of the period. The higher the Fund’s portfolio turnover rate in a period, the greater the trading costs payable by the Fund in the period, and the greater the chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 0% Dec. 31 Jun. 30 and the performance of the Fund. The rate is calculated based on 2018* 2019 the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding * The Fund was launched in April 2018 so there is no 2018 calendar short-term securities. year performance return.

Management Fees Returns – Institutional Series For the six months ended June 30, 2019, the Fund paid us For the 12-month periods ended December 31 and the management fees of $2,775. The management fee for each six-month period ended June 30, 2019 series is calculated as a percentage of the daily net asset value 15% for that series. The fees are reduced, where required, so that these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. 10% 9.3% The Fund’s management fees were used by us to pay costs for managing the investment portfolio, providing investment 5% analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The 0% management fees also funded commission payments and other Dec. 31 Jun. 30 2018* 2019 compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including * The Fund was launched in April 2018 so there is no 2018 calendar HSBC Investment Funds (Canada) Inc., for units of the Fund year performance return. bought and held by unitholders. Finally, we used management fees to pay for additional marketing and distribution services to the Fund. For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for

3 HSBC Wealth Compass Moderate Conservative Fund

Summary of Investment Portfolio Top 25 Holdings* As at June 30, 2019 Percentage of NAV

iShares Core Canadian Universe Bond Index ETF 52.93% Asset Mix iShares Core S&P/TSX Capped Composite Index ETF 22.19% Percentage iShares Core S&P Total US Stock Market ETF 11.55% of NAV iShares Core MSCI Total International Stock ETF 8.56% Bonds 52.93% HSBC Canadian Money Market Fund - Institutional Series 5.07% Canadian Equities 22.19% Remaining Holdings -0.30% International Equities 20.11% Total of Top 25 Holdings 100.00% Cash & Equivalents 4.77% * The Fund had less than 25 holdings as at June 30, 2019. Total 100.00%

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, FTSE Global Debt Capital Markets Inc., Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Wealth CompassTM Balanced Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019

HSBC Wealth CompassTM is a trademark of HSBC Group Management Services Limited. HSBC Wealth Compass Balanced Fund

We are the manager, trustee and primary investment advisor of As the Fund’s underlying holdings are passively managed, the the Fund. Fund’s performance reflects the performance of the markets in which it invests. In the first half of 2019, the Fund’s fixed income Introduction holding delivered positive returns, with the FTSE Canada 91 Day This Interim Management Report of Fund Performance contains T-Bill Index and FTSE Canada Universe Bond Total Return Index financial highlights but does not contain either the semi-annual returning 0.81% and 6.52%, respectively. Equities were also financial report or annual financial statements of the investment positive, with domestic equities (as measured by the S&P/TSX fund. You may obtain a copy of the Fund’s semi-annual financial Composite Index) returning 16.22% year to date and global report or annual financial statements at your request, at no cost, equities (as measured by the MSCI ACWI ex Canada Index (net)) by calling us toll-free at 1-888-390-3333, by visiting our website returning 11.06% year to date. at www.assetmanagement.hsbc.ca, by visiting the SEDAR website at www.sedar.com or by writing to us at: Recent Developments The global economy is moving away from the cyclical slowdown Corporate Secretary experienced at the end of 2018, led by improving momentum in HSBC Global Asset Management (Canada) Limited both the US and China. While ongoing trade tensions are a rd 3 Floor, 885 West Georgia Street headwind for both market sentiment and overall growth, we see Vancouver, BC V6C 3E8 a low risk of recession in North America for 2019 and 2020. You may also contact us using one of these methods to request a Central banks in both the US and Canada have strongly copy of the Fund’s proxy voting policies and procedures, proxy indicated that they are prepared to lower rates in response to a growth slowdown. We foresee one to two cuts in the US and voting disclosure record or quarterly statement of investment likely stable rates in Canada over the next 12 months. portfolio. We expect that both the global and Canadian economies will Results of Operations improve as the year progresses. Equity markets continue to As of June 30, 2019, the Fund's net assets increased by 514.3% enjoy positive earnings and have relatively attractive valuations to $4.3 million from $0.7 million at the end of 2018. Net compared to bonds. In Canada, gains in earnings are contributions and positive investment performance resulted in moderating after a few very strong years, and we foresee an overall increase in net asset value. mid-single-digit gains in both 2019 and 2020.

Investment Performance Related Party Transactions The HSBC Wealth Compass Balanced Fund (Investor We, on behalf of the Fund, in our role as fund manager, may, Series) rose 10.06% for the six months ending June 30, 2019, from time to time, enter into transactions or arrangements with while the benchmark rose 10.65% over the same period. The or involving other members of the HSBC Group or other people Fund’s benchmark is a weighted composite consisting of the or companies related or connected to us or the Fund. To proceed FTSE Canada Universe Bond Total Return Index (33%), MSCI with the transactions, the Fund relies on the positive ACWI ex Canada Index (net) (C$) (32%), S&P/TSX Composite recommendation of the Fund’s Independent Review Committee. A Total Return Index (10% Capped) (30%) and FTSE Canada 91 condition of this positive recommendation is that the transactions Day T-Bill Index (5%).The Fund’s returns are after the deduction are performed in accordance with our policy on Related Party Transactions. For more general information on persons related to of fees and expenses, while the benchmark’s returns do not the Fund and the types of potential transactions, see the Fund’s include any costs of investing. See the Past Performance section Simplified Prospectus. for the returns of other series of the Fund, which may vary due to differences in management fees and expenses. The following is a summary of current transactions and arrangements with entities that are related to us or the Fund. Following the sharp equity market downturn in 2018, sentiment was much more positive in the first half of 2019 as the US Manager, Trustee and Investment Advisor Federal Reserve changed its message from a tightening to an We are the manager, trustee and primary investment advisor of easing bias. Although the buoyant market sentiment of the first the Fund. As manager, we manage the overall business and quarter of 2019 was challenged in the second quarter by operations of the Fund. As trustee, we hold legal title to the escalating US-China trade tensions, markets continued to push property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio

1 HSBC Wealth Compass Balanced Fund management services to the Fund. We receive a fee from the Ratios and Supplemental Data Fund for these services based on assets under management, June 30, Dec. 31, calculated daily and paid monthly. 2019 2018 Net Asset Value (in 000s) (4) $4,235 $552 Distribution Services Number of units outstanding (in 000s) (4) 400 57 The Fund is distributed through us, HSBC Investment Funds Management expense ratio ("MER") (5) 0.91% 0.95% (Canada) Inc. (our wholly owned subsidiary and affiliate) and MER before waivers or absorptions (5) 4.00% 17.39% Trading expense ratio (6) 0.13% 0.11% HSBC Securities (Canada) Inc. (an affiliate) directly or through its Portfolio turnover rate (7) 4.33% 28.95% division, HSBC InvestDirect. We pay distribution and servicing Net Asset Value per unit (4) $10.59 $9.62 fees to them based on the amount of assets held in the investor’s account, and additionally, in some cases, on the HSBC Wealth Compass Balanced Fund – amount of the initial purchase. If you hold units of this Fund (1) and/or other HSBC Mutual Funds in a registered plan with HSBC Institutional Series – Net Assets per Unit Period ended June 30, 2019, and year ended December 31 Investment Funds (Canada) Inc., they may charge you an annual fee to cover the annual administration costs of the plan. We June 30, Dec. 31, 2019 2018 permit HSBC Investment Funds (Canada) Inc. to collect these fees by redeeming sufficient units of the Fund with the highest Net assets per unit, beginning of period (2) $9.68 $10.00 market value in your registered plan. Increase (decrease) from operations: Total revenue 0.14 0.21 Total expenses – – Financial Highlights Realized gains (losses) 0.01 (0.09) The following tables show selected key financial information Unrealized gains (losses) 0.90 (0.33) about the Fund and are intended to help you understand the Total increase (decrease) from operations (2) $1.05 $(0.21) Fund’s financial performance for the six-month period ended Distributions to unitholders: June 30, 2019, and for the year ended December 31, 2018. In From net investment income (excluding dividends) – (0.07) the year a fund is established, “period” represents the period From dividends – (0.04) from inception to December 31 or June 30 of that fiscal year, as From capital gains – – Return of capital – – applicable. This information is derived from the Fund’s unaudited semi-annual financial statements and the audited Total annual distributions (2,3) $– $(0.11) annual financial statements. The information in the following Net assets per unit, end of period (2) $10.70 $9.68 tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net assets from Ratios and Supplemental Data operations being based on average units outstanding during the June 30, Dec. 31, period and all other numbers being based on actual units 2019 2018 outstanding at the relevant point in time. Net Asset Value (in 000s) (4) $113 $152 Number of units outstanding (in 000s) (4) 11 16 Management expense ratio ("MER") (5) 0.14% 0.15% HSBC Wealth Compass Balanced Fund – MER before waivers or absorptions (5) 4.65% 28.23% (1) Investor Series – Net Assets per Unit Trading expense ratio (6) 0.13% 0.11% Period ended June 30, 2019, and year ended December 31 Portfolio turnover rate (7) 4.33% 28.95% Net Asset Value per unit (4) $10.70 $9.68 June 30, Dec. 31, 2019 2018 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All Net assets per unit, beginning of period (2) $9.62 $10.00 balances are stated in accordance with IFRS. Under IFRS, the net Increase (decrease) from operations: assets per unit presented in the financial statements is the same as Total revenue 0.18 0.25 the net asset value calculated for fund pricing purposes. Total expenses (0.04) (0.06) (2) Net assets per unit and distributions per unit are based on the actual Realized gains (losses) 0.01 (0.12) Unrealized gains (losses) 0.45 (1.00) number of units outstanding for the relevant series at the relevant time. The increase/decrease in net assets from operations per unit is Total increase (decrease) from operations (2) $0.60 $(0.93) based on the weighted average number of units outstanding for the Distributions to unitholders: relevant series over the financial period. From net investment income (excluding dividends) – (0.02) (3) Distributions are automatically reinvested in additional units of the From dividends – (0.01) Fund, unless the unitholder withdraws from the automatic From capital gains – – reinvestment plan by providing written notice to us. Return of capital – – (4) This information is provided as at period-end of the year shown. Total annual distributions (2,3) $– $(0.03) (5) Management expense ratio is based on total expenses (excluding Net assets per unit, end of period (2) $10.59 $9.62 distributions, commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of

2 HSBC Wealth Compass Balanced Fund

daily average net asset value during the period. In the year a series is the Fund, such distribution costs represented 20% of the established, the MER is annualized from the date of inception to the management fees collected. This may vary by series, depending end of the period. The MER may vary from one mutual fund to on the assets invested in each of the series. another and from one series of units to another. We may have waived or absorbed certain fees and expenses otherwise payable by Past Performance the Fund. The amount of expenses absorbed or waived is at the discretion of and can be terminated at any time by us. The Fund began operations on April 5, 2018. Due to policies The Fund may invest in units of other mutual funds and pooled issued by the Canadian Securities Administrators, rates of return funds. You should note that in addition to the fees and expenses are not reported for funds in existence for less than one year. paid by the Fund, these other funds have their own operating expenses to pay. The Fund will effectively bear the operating Year-by-Year Returns expenses of the other funds in proportion to its holdings in the other The following bar charts show the Fund’s performance for the funds. However, the Fund will not invest in units of other funds if the six-month period ended June 30, 2019, and for each of the Fund would be required to pay any management fees in respect of previous 12-month periods ended December 31. In percentage such investments. In addition, the Fund will not make investments in terms, the bar charts show how much an investment made on other funds if the Fund would be required to pay any sales or redemption fees in respect of such investments that duplicate a fee the first day of each financial period would have grown or payable by unitholders of the Fund. decreased by the last day of each financial period.

Effective May 17, 2019, the management fees for the Investor Series Returns – Investor Series of this Fund was reduced from 0.80% to 0.55% and for the Manager For the 12-month periods ended December 31 and the Series was reduced from 0.45% to 0.30%. six-month period ended June 30, 2019 (6) The trading expense ratio represents total commissions and other 15% portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the financial period. (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s 10.1% 10% portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The higher the Fund’s portfolio turnover rate in a period, the greater the 5% trading costs payable by the Fund in the period, and the greater the chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 0% and the performance of the Fund. The rate is calculated based on Dec. 31 Jun. 30 2018* 2019 the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding * The Fund was launched in April 2018 so there is no 2018 calendar short-term securities. year performance return.

Management Fees Returns – Institutional Series For the six months ended June 30, 2019, the Fund paid us For the 12-month periods ended December 31 and the management fees of $7,639. The management fee for each six-month period ended June 30, 2019 series is calculated as a percentage of the daily net asset value 15% for that series. The fees are reduced, where required, so that these fees do not duplicate fees payable by mutual funds in 10.5% which the Fund invests for the same service. 10% The Fund’s management fees were used by us to pay costs for managing the investment portfolio, providing investment 5% analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The 0% management fees also funded commission payments and other Dec. 31 Jun. 30 2018* 2019 compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including * The Fund was launched in April 2018 so there is no 2018 calendar HSBC Investment Funds (Canada) Inc., for units of the Fund year performance return. bought and held by unitholders. Finally, we used management fees to pay for additional marketing and distribution services to the Fund. For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for

3 HSBC Wealth Compass Balanced Fund

Summary of Investment Portfolio Top 25 Holdings* As at June 30, 2019 Percentage of NAV

iShares Core Canadian Universe Bond Index ETF 33.72% Asset Mix iShares Core S&P/TSX Capped Composite Index ETF 29.58% Percentage iShares Core S&P Total US Stock Market ETF 17.82% of NAV iShares Core MSCI Total International Stock ETF 13.25% Bonds 33.72% HSBC Canadian Money Market Fund - Institutional Series 4.99% International Equities 31.07% Remaining Holdings 0.64% Canadian Equities 29.58% Total of Top 25 Holdings 100.00% Cash & Equivalents 5.63% * The Fund had less than 25 holdings as at June 30, 2019. Total 100.00%

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, FTSE Global Debt Capital Markets Inc., Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Wealth CompassTM Growth Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019

HSBC Wealth CompassTM is a trademark of HSBC Group Management Services Limited. HSBC Wealth Compass Growth Fund

We are the manager, trustee and primary investment advisor of As the Fund’s underlying holdings are passively managed, the the Fund. Fund’s performance reflects the performance of the markets in which it invests. In the first half of 2019, the Fund’s fixed income Introduction holding delivered positive returns, with the FTSE Canada 91 Day This Interim Management Report of Fund Performance contains T-Bill Index and FTSE Canada Universe Bond Total Return Index financial highlights but does not contain either the semi-annual returning 0.81% and 6.52%, respectively. Equities were also financial report or annual financial statements of the investment positive, with domestic equities (as measured by the S&P/TSX fund. You may obtain a copy of the Fund’s semi-annual financial Composite Index) returning 16.22% year to date and global report or annual financial statements at your request, at no cost, equities (as measured by the MSCI ACWI ex Canada Index (net)) by calling us toll-free at 1-888-390-3333, by visiting our website returning 11.06% year to date. at www.assetmanagement.hsbc.ca, by visiting the SEDAR website at www.sedar.com or by writing to us at: Recent Developments The global economy is moving away from the cyclical slowdown Corporate Secretary experienced at the end of 2018, led by improving momentum in HSBC Global Asset Management (Canada) Limited both the US and China. While ongoing trade tensions are a rd 3 Floor, 885 West Georgia Street headwind for both market sentiment and overall growth, we see Vancouver, BC V6C 3E8 a low risk of recession in North America for 2019 and 2020. You may also contact us using one of these methods to request a Central banks in both the US and Canada have strongly copy of the Fund’s proxy voting policies and procedures, proxy indicated that they are prepared to lower rates in response to a growth slowdown. We foresee one to two cuts in the US and voting disclosure record or quarterly statement of investment likely stable rates in Canada over the next 12 months. portfolio. We expect that both the global and Canadian economies will Results of Operations improve as the year progresses. Equity markets continue to As of June 30, 2019, the Fund's net assets increased by 300.0% enjoy positive earnings and have relatively attractive valuations to $1.6 million from $0.4 million at the end of 2018. Net compared to bonds. In Canada, gains in earnings are contributions and positive investment performance resulted in moderating after a few very strong years, and we foresee an overall increase in net asset value. mid-single-digit gains in both 2019 and 2020.

Investment Performance Related Party Transactions The HSBC Wealth Compass Growth Fund (Investor Series) rose We, on behalf of the Fund, in our role as fund manager, may, 12.29% for the six months ending June 30, 2019, while the from time to time, enter into transactions or arrangements with benchmark rose 12.47% over the same period. The Fund’s or involving other members of the HSBC Group or other people benchmark is a weighted composite consisting of the MSCI or companies related or connected to us or the Fund. To ACWI ex Canada Index (net) (C$) (46%), S&P/TSX Composite proceed with the transactions, the Fund relies on the positive Total Return Index (10% Capped) (31%) and FTSE Canada recommendation of the Fund’s Independent Review Committee. Universe Bond Total Return Index (23%). The Fund’s returns are A condition of this positive recommendation is that the after the deduction of fees and expenses, while the benchmark’s transactions are performed in accordance with our policy on Related Party Transactions. For more general information on returns do not include any costs of investing. See the Past persons related to the Fund and the types of potential Performance section for the returns of other series of the Fund, transactions, see the Fund’s Simplified Prospectus. which may vary due to differences in management fees and expenses. The following is a summary of current transactions and arrangements with entities that are related to us or the Fund. Following the sharp equity market downturn in 2018, sentiment was much more positive in the first half of 2019 as the US Manager, Trustee and Investment Advisor Federal Reserve changed its message from a tightening to an We are the manager, trustee and primary investment advisor of easing bias. Although the buoyant market sentiment of the first the Fund. As manager, we manage the overall business and quarter of 2019 was challenged in the second quarter by operations of the Fund. As trustee, we hold legal title to the escalating US-China trade tensions, markets continued to push property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio

1 HSBC Wealth Compass Growth Fund management services to the Fund. We receive a fee from the Ratios and Supplemental Data Fund for these services based on assets under management, June 30, Dec. 31, calculated daily and paid monthly. 2019 2018 Net Asset Value (in 000s) (4) $1,505 $248 Distribution Services Number of units outstanding (in 000s) (4) 146 27 The Fund is distributed through us, HSBC Investment Funds Management expense ratio ("MER") (5) 0.96% 1.00% (Canada) Inc. (our wholly owned subsidiary and affiliate) and MER before waivers or absorptions (5) 9.27% 22.77% Trading expense ratio (6) 0.12% 0.09% HSBC Securities (Canada) Inc. (an affiliate) directly or through its Portfolio turnover rate (7) 10.22% 26.70% division, HSBC InvestDirect. We pay distribution and servicing Net Asset Value per unit (4) $10.30 $9.27 fees to them based on the amount of assets held in the investor’s account, and additionally, in some cases, on the HSBC Wealth Compass Growth Fund – amount of the initial purchase. If you hold units of this Fund (1) and/or other HSBC Mutual Funds in a registered plan with HSBC Institutional Series – Net Assets per Unit Period ended June 30, 2019, and year ended December 31 Investment Funds (Canada) Inc., they may charge you an annual fee to cover the annual administration costs of the plan. We June 30, Dec. 31, 2019 2018 permit HSBC Investment Funds (Canada) Inc. to collect these fees by redeeming sufficient units of the Fund with the highest Net assets per unit, beginning of period (2) $9.52 $10.00 market value in your registered plan. Increase (decrease) from operations: Total revenue 0.14 0.21 Total expenses – – Financial Highlights Realized gains (losses) 0.01 (0.13) The following tables show selected key financial information Unrealized gains (losses) 1.00 (0.38) about the Fund and are intended to help you understand the Total increase (decrease) from operations (2) $1.15 $(0.30) Fund’s financial performance for the six-month period ended Distributions to unitholders: June 30, 2019, and for the year ended December 31, 2018. In From net investment income (excluding dividends) – (0.12) the year a fund is established, “period” represents the period From dividends – (0.05) from inception to December 31 or June 30 of that fiscal year, as From capital gains – – Return of capital – – applicable. This information is derived from the Fund’s unaudited semi-annual financial statements and the audited Total annual distributions (2,3) $– $(0.17) annual financial statements. The information in the following Net assets per unit, end of period (2) $10.63 $9.52 tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net assets from Ratios and Supplemental Data operations being based on average units outstanding during the June 30, Dec. 31, period and all other numbers being based on actual units 2019 2018 outstanding at the relevant point in time. Net Asset Value (in 000s) (4) $113 $145 Number of units outstanding (in 000s) (4) 11 15 Management expense ratio ("MER") (5) 0.14% 0.15% HSBC Wealth Compass Growth Fund – Investor MER before waivers or absorptions (5) 10.44% 33.62% (1) Series – Net Assets per Unit Trading expense ratio (6) 0.12% 0.09% Period ended June 30, 2019, and year ended December 31 Portfolio turnover rate (7) 10.22% 26.70% Net Asset Value per unit (4) $10.63 $9.52 June 30, Dec. 31, 2019 2018 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All Net assets per unit, beginning of period (2) $9.27 $10.00 balances are stated in accordance with IFRS. Under IFRS, the net Increase (decrease) from operations: assets per unit presented in the financial statements is the same as Total revenue 0.19 0.24 the net asset value calculated for fund pricing purposes. Total expenses (0.04) (0.06) (2) Net assets per unit and distributions per unit are based on the actual Realized gains (losses) 0.02 (0.22) Unrealized gains (losses) 0.48 (1.15) number of units outstanding for the relevant series at the relevant time. The increase/decrease in net assets from operations per unit is Total increase (decrease) from operations (2) $0.65 $(1.19) based on the weighted average number of units outstanding for the Distributions to unitholders: relevant series over the financial period. From net investment income (excluding dividends) – (0.06) (3) Distributions are automatically reinvested in additional units of the From dividends – (0.02) Fund, unless the unitholder withdraws from the automatic From capital gains – – reinvestment plan by providing written notice to us. Return of capital – – (4) This information is provided as at period-end of the year shown. Total annual distributions (2,3) $– $(0.08) (5) Management expense ratio is based on total expenses (excluding Net assets per unit, end of period (2) $10.30 $9.27 distributions, commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of

2 HSBC Wealth Compass Growth Fund

daily average net asset value during the period. In the year a series is the Fund, such distribution costs represented 25% of the established, the MER is annualized from the date of inception to the management fees collected. This may vary by series, depending end of the period. The MER may vary from one mutual fund to on the assets invested in each of the series. another and from one series of units to another. We may have waived or absorbed certain fees and expenses otherwise payable by Past Performance the Fund. The amount of expenses absorbed or waived is at the discretion of and can be terminated at any time by us. The Fund began operations on April 5, 2018. Due to policies The Fund may invest in units of other mutual funds and pooled issued by the Canadian Securities Administrators, rates of return funds. You should note that in addition to the fees and expenses are not reported for funds in existence for less than one year. paid by the Fund, these other funds have their own operating expenses to pay. The Fund will effectively bear the operating Year-by-Year Returns expenses of the other funds in proportion to its holdings in the other The following bar charts show the Fund’s performance for the funds. However, the Fund will not invest in units of other funds if the six-month period ended June 30, 2019, and for each of the Fund would be required to pay any management fees in respect of previous 12-month periods ended December 31. In percentage such investments. In addition, the Fund will not make investments in terms, the bar charts show how much an investment made on other funds if the Fund would be required to pay any sales or redemption fees in respect of such investments that duplicate a fee the first day of each financial period would have grown or payable by unitholders of the Fund. decreased by the last day of each financial period.

Effective May 17, 2019, the management fees for the Investor Series Returns – Investor Series of this Fund was reduced from 0.85% to 0.60% and for the Manager For the 12-month periods ended December 31 and the Series was reduced from 0.50% to 0.35%. six-month period ended June 30, 2019 (6) The trading expense ratio represents total commissions and other 15% portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the financial period. 11.1% (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s 10% portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The higher the Fund’s portfolio turnover rate in a period, the greater the 5% trading costs payable by the Fund in the period, and the greater the chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 0% and the performance of the Fund. The rate is calculated based on Dec. 31 Jun. 30 2018* 2019 the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding * The Fund was launched in April 2018 so there is no 2018 calendar short-term securities. year performance return.

Management Fees Returns – Institutional Series For the six months ended June 30, 2019, the Fund paid us For the 12-month periods ended December 31 and the management fees of $2,755. The management fee for each six-month period ended June 30, 2019 series is calculated as a percentage of the daily net asset value 15% for that series. The fees are reduced, where required, so that 11.7% these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. 10% The Fund’s management fees were used by us to pay costs for managing the investment portfolio, providing investment 5% analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The 0% management fees also funded commission payments and other Dec. 31 Jun. 30 2018* 2019 compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including * The Fund was launched in April 2018 so there is no 2018 calendar HSBC Investment Funds (Canada) Inc., for units of the Fund year performance return. bought and held by unitholders. Finally, we used management fees to pay for additional marketing and distribution services to the Fund. For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for

3 HSBC Wealth Compass Growth Fund

Summary of Investment Portfolio Top 25 Holdings* As at June 30, 2019 Percentage of NAV

iShares Core S&P/TSX Capped Composite Index ETF 31.09% Asset Mix iShares Core S&P Total US Stock Market ETF 26.14% Percentage iShares Core Canadian Universe Bond Index ETF 23.98% of NAV iShares Core MSCI Total International Stock ETF 19.41% International Equities 45.55% Remaining Holdings -0.62% Canadian Equities 31.09% Total of Top 25 Holdings 100.00% Bonds 23.98% * The Fund had less than 25 holdings as at June 30, 2019. Cash & Equivalents -0.62% Total 100.00%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, FTSE Global Debt Capital Markets Inc., Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Wealth CompassTM Aggressive Growth Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019

HSBC Wealth CompassTM is a trademark of HSBC Group Management Services Limited. HSBC Wealth Compass Aggressive Growth Fund

We are the manager, trustee and primary investment advisor of As the Fund’s underlying holdings are passively managed, the the Fund. Fund’s performance reflects the performance of the markets in which it invests. In the first half of 2019, the Fund’s fixed income Introduction holding delivered positive returns, with the FTSE Canada 91 Day This Interim Management Report of Fund Performance contains T-Bill Index and FTSE Canada Universe Bond Total Return Index financial highlights but does not contain either the semi-annual returning 0.81% and 6.52%, respectively. Equities were also financial report or annual financial statements of the investment positive, with domestic equities (as measured by the S&P/TSX fund. You may obtain a copy of the Fund’s semi-annual financial Composite Index) returning 16.22% year to date and global report or annual financial statements at your request, at no cost, equities (as measured by the MSCI ACWI ex Canada Index (net)) by calling us toll-free at 1-888-390-3333, by visiting our website returning 11.06% year to date. at www.assetmanagement.hsbc.ca, by visiting the SEDAR website at www.sedar.com or by writing to us at: Recent Developments The global economy is moving away from the cyclical slowdown Corporate Secretary experienced at the end of 2018, led by improving momentum in HSBC Global Asset Management (Canada) Limited both the US and China. While ongoing trade tensions are a rd 3 Floor, 885 West Georgia Street headwind for both market sentiment and overall growth, we see Vancouver, BC V6C 3E8 a low risk of recession in North America for 2019 and 2020. You may also contact us using one of these methods to request a Central banks in both the US and Canada have strongly copy of the Fund’s proxy voting policies and procedures, proxy indicated that they are prepared to lower rates in response to a growth slowdown. We foresee one to two cuts in the US and voting disclosure record or quarterly statement of investment likely stable rates in Canada over the next 12 months. portfolio. We expect that both the global and Canadian economies will Results of Operations improve as the year progresses. Equity markets continue to As of June 30, 2019, the Fund's net assets increased by 183.3% enjoy positive earnings and have relatively attractive valuations to $1.7 million from $0.6 million at the end of 2018. Net compared to bonds. In Canada, gains in earnings are contributions and positive investment performance resulted in moderating after a few very strong years, and we foresee an overall increase in net asset value. mid-single-digit gains in both 2019 and 2020.

Investment Performance Related Party Transactions The HSBC Wealth Compass Aggressive Growth Fund (Investor We, on behalf of the Fund, in our role as fund manager, may, Series) rose 12.29% for the six months ending June 30, 2019, from time to time, enter into transactions or arrangements with while the benchmark rose 12.47% over the same period. The or involving other members of the HSBC Group or other people Fund’s benchmark is a weighted composite consisting of the or companies related or connected to us or the Fund. To proceed MSCI ACWI ex Canada Index (net) (C$) (64%), S&P/TSX with the transactions, the Fund relies on the positive Composite Total Return Index (10% Capped) (31%) and FTSE recommendation of the Fund’s Independent Review Committee. A Canada Universe Bond Total Return Index (5%). The Fund’s condition of this positive recommendation is that the transactions returns are after the deduction of fees and expenses, while the are performed in accordance with our policy on Related Party Transactions. For more general information on persons related to benchmark’s returns do not include any costs of investing. See the Fund and the types of potential transactions, see the Fund’s the Past Performance section for the returns of other series of Simplified Prospectus. the Fund, which may vary due to differences in management fees and expenses. The following is a summary of current transactions and arrangements with entities that are related to us or the Fund. Following the sharp equity market downturn in 2018, sentiment was much more positive in the first half of 2019 as the US Manager, Trustee and Investment Advisor Federal Reserve changed its message from a tightening to an We are the manager, trustee and primary investment advisor of easing bias. Although the buoyant market sentiment of the first the Fund. As manager, we manage the overall business and quarter of 2019 was challenged in the second quarter by operations of the Fund. As trustee, we hold legal title to the escalating US-China trade tensions, markets continued to push property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio

1 HSBC Wealth Compass Aggressive Growth Fund management services to the Fund. We receive a fee from the Ratios and Supplemental Data Fund for these services based on assets under management, June 30, Dec. 31, calculated daily and paid monthly. 2019 2018 Net Asset Value (in 000s) (4) $1,601 $406 Distribution Services Number of units outstanding (in 000s) (4) 147 42 The Fund is distributed through us, HSBC Investment Funds Management expense ratio ("MER") (5) 0.96% 1.00% (Canada) Inc. (our wholly owned subsidiary and affiliate) and MER before waivers or absorptions (5) 8.29% 18.45% Trading expense ratio (6) 0.09% 0.09% HSBC Securities (Canada) Inc. (an affiliate) directly or through its Portfolio turnover rate (7) 8.29% 37.53% division, HSBC InvestDirect. We pay distribution and servicing Net Asset Value per unit (4) $10.86 $9.67 fees to them based on the amount of assets held in the investor’s account, and additionally, in some cases, on the amount of the initial purchase. If you hold units of this Fund HSBC Wealth Compass Aggressive Growth Fund – Institutional Series – Net Assets per and/or other HSBC Mutual Funds in a registered plan with HSBC (1) Investment Funds (Canada) Inc., they may charge you an annual Unit Period ended June 30, 2019, and year ended December 31 fee to cover the annual administration costs of the plan. We permit HSBC Investment Funds (Canada) Inc. to collect these June 30, Dec. 31, 2019 2018 fees by redeeming sufficient units of the Fund with the highest Net assets per unit, beginning of period (2) $9.49 $10.00 market value in your registered plan. Increase (decrease) from operations: Financial Highlights Total revenue 0.14 0.20 Total expenses – – The following tables show selected key financial information Realized gains (losses) 0.03 (0.25) about the Fund and are intended to help you understand the Unrealized gains (losses) 1.12 (0.36) Fund’s financial performance for the six-month period ended Total increase (decrease) from operations (2) $1.29 $(0.41) June 30, 2019, and for the year ended December 31, 2018. In Distributions to unitholders: the year a fund is established, “period” represents the period From net investment income (excluding dividends) – (0.03) from inception to December 31 or June 30 of that fiscal year, as From dividends – (0.07) applicable. This information is derived from the Fund’s From capital gains – – Return of capital – – unaudited semi-annual financial statements and the audited Total annual distributions (2,3) $– $(0.10) annual financial statements. The information in the following tables is based on prescribed regulations, and as a result, is not Net assets per unit, end of period (2) $10.71 $9.49 expected to add due to the increase/decrease in net assets from operations being based on average units outstanding during the Ratios and Supplemental Data period and all other numbers being based on actual units June 30, Dec. 31, outstanding at the relevant point in time. 2019 2018 Net Asset Value (in 000s) (4) $113 $144 HSBC Wealth Compass Aggressive Growth Number of units outstanding (in 000s) (4) 11 15 (1) Management expense ratio ("MER") (5) 0.14% 0.15% Fund – Investor Series – Net Assets per Unit MER before waivers or absorptions (5) 8.26% 27.35% Period ended June 30, 2019, and year ended December 31 Trading expense ratio (6) 0.09% 0.09% Portfolio turnover rate (7) 8.29% 37.53% June 30, Dec. 31, Net Asset Value per unit (4) $10.71 $9.49 2019 2018 (1) This information is derived from the Fund’s unaudited semi-annual Net assets per unit, beginning of period (2) $9.67 $10.00 financial report and audited annual financial statements. All Increase (decrease) from operations: balances are stated in accordance with IFRS. Under IFRS, the net Total revenue 0.19 0.25 assets per unit presented in the financial statements is the same as Total expenses (0.05) (0.07) the net asset value calculated for fund pricing purposes. Realized gains (losses) 0.03 (0.32) Unrealized gains (losses) 0.64 (1.27) (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the relevant Total increase (decrease) from operations (2) $0.81 $(1.41) time. The increase/decrease in net assets from operations per unit is Distributions to unitholders: based on the weighted average number of units outstanding for the From net investment income (excluding dividends) – – relevant series over the financial period. From dividends – (0.01) (3) Distributions are automatically reinvested in additional units of the From capital gains – – Fund, unless the unitholder withdraws from the automatic Return of capital – – reinvestment plan by providing written notice to us. Total annual distributions (2,3) $– $(0.01) (4) This information is provided as at period-end of the year shown. Net assets per unit, end of period (2) $10.86 $9.67 (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for

2 HSBC Wealth Compass Aggressive Growth Fund

the stated period and is expressed as an annualized percentage of the Fund, such distribution costs represented 28% of the daily average net asset value during the period. In the year a series is management fees collected. This may vary by series, depending established, the MER is annualized from the date of inception to the on the assets invested in each of the series. end of the period. The MER may vary from one mutual fund to another and from one series of units to another. We may have Past Performance waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived is at the The Fund began operations on April 5, 2018. Due to policies discretion of and can be terminated at any time by us. issued by the Canadian Securities Administrators, rates of return The Fund may invest in units of other mutual funds and pooled are not reported for funds in existence for less than one year. funds. You should note that in addition to the fees and expenses paid by the Fund, these other funds have their own operating Year-by-Year Returns expenses to pay. The Fund will effectively bear the operating The following bar charts show the Fund’s performance for the expenses of the other funds in proportion to its holdings in the other six-month period ended June 30, 2019, and for each of the funds. However, the Fund will not invest in units of other funds if the previous 12-month periods ended December 31. In percentage Fund would be required to pay any management fees in respect of terms, the bar charts show how much an investment made on such investments. In addition, the Fund will not make investments in other funds if the Fund would be required to pay any sales or the first day of each financial period would have grown or redemption fees in respect of such investments that duplicate a fee decreased by the last day of each financial period. payable by unitholders of the Fund. Returns – Investor Series Effective May 17, 2019, the management fees for the Investor Series For the 12-month periods ended December 31 and the of this Fund was reduced from 0.85% to 0.60% and for the Manager Series was reduced from 0.50% to 0.35%. six-month period ended June 30, 2019 (6) The trading expense ratio represents total commissions and other 15% portfolio transaction costs expressed as an annualized percentage of 12.3% daily average net asset value during the financial period. (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s 10% portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The 5% higher the Fund’s portfolio turnover rate in a period, the greater the trading costs payable by the Fund in the period, and the greater the chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 0% Dec. 31 Jun. 30 and the performance of the Fund. The rate is calculated based on 2018* 2019 the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding * The Fund was launched in April 2018 so there is no 2018 calendar short-term securities. year performance return.

Management Fees Returns – Institutional Series For the six months ended June 30, 2019, the Fund paid us For the 12-month periods ended December 31 and the management fees of $3,204. The management fee for each six-month period ended June 30, 2019 series is calculated as a percentage of the daily net asset value 15% for that series. The fees are reduced, where required, so that 12.8% these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. 10% The Fund’s management fees were used by us to pay costs for managing the investment portfolio, providing investment 5% analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The 0% management fees also funded commission payments and other Dec. 31 Jun. 30 2018* 2019 compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including * The Fund was launched in April 2018 so there is no 2018 calendar HSBC Investment Funds (Canada) Inc., for units of the Fund year performance return. bought and held by unitholders. Finally, we used management fees to pay for additional marketing and distribution services to the Fund. For the six months ended June 30, 2019, approximately 45% of the total management fees collected from all HSBC Mutual Funds were used to fund distribution costs. In comparison, for

3 HSBC Wealth Compass Aggressive Growth Fund

Summary of Investment Portfolio Top 25 Holdings* As at June 30, 2019 Percentage of NAV

iShares Core S&P Total US Stock Market ETF 36.18% Asset Mix iShares Core S&P/TSX Capped Composite Index ETF 31.04% Percentage iShares Core MSCI Total International Stock ETF 27.01% of NAV iShares Core Canadian Universe Bond Index ETF 5.19% International Equities 63.19% Remaining Holdings 0.58% Canadian Equities 31.04% Total of Top 25 Holdings 100.00% Bonds 5.19% * The Fund had less than 25 holdings as at June 30, 2019. Cash & Equivalents 0.58% Total 100.00%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, FTSE Global Debt Capital Markets Inc., Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Canadian Money Market Pooled Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Canadian Money Market Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the targeted the Fund’s duration at its blended 45-day benchmark Fund; we, us and our refer to HSBC Global Asset Management after the Bank of Canada kept rates on hold and stated that any (Canada) Limited; and the Fund refers to the HSBC Canadian future rates changes would be contingent on incoming data. Money Market Pooled Fund. Recent Developments We are the manager, trustee and primary investment advisor of The Bank of Canada maintained its policy rate at 1.75% during the Fund. the first six months of 2019. The Bank stated that any future rate Introduction moves would be highly data dependent and that it would be closely monitoring developments in household spending, oil This Interim Management Report of Fund Performance contains markets and global trade policy. The Bank also highlighted at its financial highlights but does not contain either the semi-annual May 2019 meeting that the slowdown in the latter part of 2018 financial report or annual financial statements of the investment and the early part of 2019 was temporary and that the economy fund. You may obtain a copy of the Fund’s semi-annual financial was expected to pick up in the second half of the year. report or annual financial statements at your request, at no cost, by calling us toll-free at 1-888-390-3333, by visiting our website Strong employment, low interest rates and reasonable corporate at www.assetmanagement.hsbc.ca, by visiting the SEDAR profits continue to provide a reasonably positive backdrop for website at www.sedar.com or by writing to us at: growth in both the US and Canada. The Canadian economy expanded by only 0.4% in the first quarter of 2019, with Corporate Secretary positives from consumer spending and business investment and HSBC Global Asset Management (Canada) Limited a negative impact from trade. That said, following two 3rd Floor, 885 West Georgia Street consecutive disappointing quarters, indicators improved in the Vancouver, BC V6C 3E8 second quarter of 2019. You may also contact us using one of these methods to request a Central banks in the US and Canada have strongly indicated that copy of the Fund’s proxy voting policies and procedures, proxy they stand prepared to lower rates if necessary in response to a voting disclosure record or quarterly statement of investment growth slowdown. We foresee one to two cuts in the US and portfolio. likely stable rates in Canada over the next 12 months. Results of Operations Related Party Transactions As of June 30, 2019, the Fund's net assets decreased by 2.2% to We, on behalf of the Fund, in our role as fund manager, may, $219.8 million from $224.8 million at the end of 2018. Net from time to time, enter into transactions or arrangements with withdrawals, partially offset by positive investment or involving other members of the HSBC Group or other people performance, resulted in an overall decrease in net asset value. or companies related or connected to us or the Fund. To proceed Investment Performance with the transactions, the Fund relies on the positive The HSBC Canadian Money Market Pooled Fund rose 0.90% for recommendation of the Fund’s Independent Review Committee. A the six months ending June 30, 2019, while the benchmark rose condition of this positive recommendation is that the transactions 0.82% over the same period. The benchmark is a weighted are performed in accordance with our policy on Related Party composite consisting of the FTSE Canada 30 Day T-Bill Index Transactions. For more general information on persons related to (50%) and FTSE Canada 60 Day T-Bill Index (50%). The Fund’s the Fund and the types of potential transactions, see the Fund’s returns are after the deduction of fees and expenses, while the Simplified Prospectus. benchmark’s returns do not include any costs of investing. The following is a summary of current transactions and The marginal improvement in portfolio and market returns arrangements with entities that are related to us or the Fund. compared to 2018 reflects the slightly higher investable rate Manager, Trustee and Investment Advisor environment following three Bank of Canada policy rate We are the manager, trustee and primary investment advisor of increases in 2018. the Fund. As manager, we manage the overall business and We took a defensive position to the corporate debt sector over operations of the Fund. As trustee, we hold legal title to the the period, focusing on high-quality issues to minimize credit property of the Fund on your behalf. As primary investment and liquidity risk and protect the Fund’s primary objectives of advisor, we provide investment advice and portfolio preserving capital and providing liquidity. management services to the Fund. We receive a fee from the Fund for these services based on assets under management, We also looked to add value by adjusting the weighted-average calculated daily and paid monthly. maturity (or duration) of the portfolio holdings relative to the Fund’s benchmark. Over the first six months of the year, we

1 HSBC Canadian Money Market Pooled Fund

Distribution Services Ratios and Supplemental Data The Fund is distributed through us and HSBC Investment Funds June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, (Canada) Inc. (our wholly owned subsidiary). We may pay 2019 2018 2017 2016 2015 2014 distribution and servicing fees to our related party distributor Net Asset Value (in based on the value of the units held in the investor’s account, 000s) (4) $219,804 $224,832 $233,288 $195,956 $175,524 $170,332 and additionally, in some cases, on the amount of the Number of units initial purchase. outstanding (in 000s) (4) 21,980 22,483 23,329 19,596 17,552 17,033 Management expense ratio ("MER") (5) 0.09% 0.06% 0.06% 0.05% 0.05% 0.10% Financial Highlights MER before waivers or The following tables show selected key financial information absorptions (5) 0.09% 0.06% 0.06% 0.05% 0.05% 0.10% about the Fund and are intended to help you understand the Trading expense ratio (6) n/a n/a n/a n/a n/a n/a Fund’s financial performance for the six-month period ended Net Asset Value per June 30, 2019, and for the last five years ended December 31, unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 as applicable. In the year a fund is established, “period” (1) This information is derived from the Fund’s unaudited semi-annual represents the period from inception to December 31 or June 30 financial report and audited annual financial statements. All of that fiscal year, as applicable. This information is derived from balances are stated in accordance with IFRS. Under IFRS, the net the Fund’s unaudited semi-annual financial statements and the assets per unit presented in the financial statements is the same as audited annual financial statements. The information in the the net asset value calculated for fund pricing purposes. following tables is based on prescribed regulations, and as a (2) Net assets per unit and distributions per unit are based on the actual result, is not expected to add due to the increase/decrease in net number of units outstanding at the relevant time. The increase/ decrease in net assets from operations per unit is based on the assets from operations being based on average units weighted average number of units outstanding over the outstanding during the period and all other numbers being financial period. based on actual units outstanding at the relevant point in time. (3) Distributions are automatically reinvested in additional units of the Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. HSBC Canadian Money Market Pooled Fund – Net Assets per Unit(1) (4) This information is provided as at period-end of the year shown. Period ended June 30, 2019, and years ended December 31 (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, the stated period and is expressed as an annualized percentage of 2019 2018 2017 2016 2015 2014 daily average net asset value during the period. In the year a Fund is Net assets per unit, established, the MER is annualized from the date of inception to the beginning of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 end of the period. We may have waived or absorbed certain fees Increase and expenses otherwise payable by the Fund. The amount of (decrease) from expenses absorbed or waived is at the discretion of and can be operations: terminated at any time by us. Total revenue 0.09 0.16 0.09 0.07 0.08 0.09 (6) The trading expense ratio represents total commissions and other Total expenses – (0.01) (0.01) (0.01) – (0.01) portfolio transaction costs expressed as an annualized percentage of Realized gains (losses) –––––– daily average net asset value during the financial period. Unrealized gains (losses) –––––0.01(7) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio Total increase turnover rate of 100% is equivalent to the Fund buying and selling all (decrease) from of the securities in its portfolio once in the course of the period. The operations (2) $0.09 $0.15 $0.08 $0.06 $0.08 $0.09 higher the Fund’s portfolio turnover rate in a period, the greater the Distributions to trading costs payable by the Fund in the period, and the greater the unitholders: chance of an investor receiving taxable capital gains in the period. From net investment There is not necessarily a relationship between a high turnover rate income (excluding and the performance of the Fund. The rate is calculated based on dividends) (0.09) (0.15) (0.08) (0.06) (0.08) (0.09) the lesser of purchases or sales of securities divided by the average From dividends –––––– weighted market value of the portfolio securities, excluding Fromcapitalgains–––––– short-term securities. Returnofcapital–––––– Total annual Management Fees distributions (2,3) $(0.09) $(0.15) $(0.08) $– $(0.08) $(0.09) For the six months ended June 30, 2019, the Fund did not pay Net assets per unit, management fees. You pay us, HSBC Investment Funds end of period (2) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or your approved advisor a management fee that is based on the amount you have invested with us or your approved advisor (which may be subject to certain minimum annual fees). It is

2 HSBC Canadian Money Market Pooled Fund negotiated between you and us, HSBC Investment Funds Year-by-Year Returns (Canada) Inc. or your approved advisor. Further details can be The following bar chart shows the Fund’s annual performance found in the Fund’s Simplified Prospectus. for the six-month period ended June 30, 2019, and for each of Management fees paid to us were used to pay costs for the previous 12-month periods ended December 31. In managing the investment portfolio, providing investment percentage terms, the bar chart shows how much an analysis and recommendations, making investment decisions, investment made on the first day of each financial period would making brokerage arrangements for the purchase and sale of have grown or decreased by the last day of each the investment portfolio and providing other services. The financial period. management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales Returns representatives and registered dealers and brokers, including For the 12-month periods ended December 31 and the HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, six-month period ended June 30, 2019 for units of the Fund bought and held by unitholders. Finally, we 10% used management fees to pay for additional marketing and distribution services to the Fund. For the six months ended June 30, 2019, approximately 40% of the total management fees paid to us for all HSBC Pooled Funds 5% were used to fund distribution costs.

1.5% Past Performance 1.0% 1.0% 1.0% 1.0% 0.9% 0.6% 0.5% 0.7% 0.7% 0.8% The performance information shown assumes that all 0% distributions made by the Fund in the periods shown were Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 reinvested in additional securities of the Fund. The performance information does not take into account management fees, sales, redemption, distribution, optional charges or expenses you may Summary of Investment Portfolio be charged outside of the Fund or the effect of any income tax As at June 30, 2019 you may have to pay as a result of your investment in the Fund that would have reduced returns or performance. The Fund’s Asset Mix past performance does not necessarily indicate how it will Percentage perform in the future. of NAV

Corporate Bonds 65.22% Government Bonds 34.80% Cash & Equivalents -0.02% Total 100.00%

3 HSBC Canadian Money Market Pooled Fund

Top 25 Holdings Percentage of NAV

Canada Housing Trust No. 1, 2.00%, 12/15/2019 6.15% Royal Bank of Canada, 1.70%, 07/02/2019 3.83% Fédération des caisses Desjardins du Québec, 1.75%, 07/02/2019 3.64% Municipal Finance Authority of British Columbia, 1.80%, 07/03/2019 3.63% Bank of Nova Scotia, 1.70%, 07/02/2019 3.19% Government of Canada, 1.68%, 08/22/2019 2.63% Royal Bank of Canada, 1.79%, 07/09/2019 2.50% Province of Ontario, 1.74%, 08/07/2019 2.29% Ontario Teachers' Finance Trust, 1.80%, 08/09/2019 2.27% Province of Ontario, 1.78%, 11/06/2019 2.26% Province of Ontario, 1.89%, 07/24/2019 2.25% Bank of Nova Scotia, 2.08%, 08/27/2019 2.16% BNP Paribas Canada, 1.88%, 08/06/2019 2.04% Sumitomo Mitsui Banking Corporation, 1.96%, 11/06/2019 1.91% Toronto-Dominion Bank, 2.27%, 02/06/2020 1.89% Commonwealth Bank of Australia, 5.15%, 04/09/2020 1.86% CAFO Inc., 1.89%, 07/24/2019 1.82% Citibank, 1.77%, 07/12/2019 1.82% Government of Canada, 1.65%, 08/08/2019 1.82% Mizuho Bank, Ltd., 1.83%, 07/05/2019 1.82% Bank of China, 1.88%, 08/12/2019 1.81% Canadian Imperial Bank of Commerce, 1.82%, 07/25/2019 1.81% MUFG Bank, Ltd., Canada Branch, 1.84%, 09/12/2019 1.81% Ontario Teachers' Finance Trust, 1.87%, 08/02/2019 1.81% Manulife Bank of Canada, 1.83%, 12/16/2019 1.80% Total of Top 25 Holdings 60.82%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

4 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents at no cost by calling us 3 Floor, 885 West Georgia Street toll-free at 1-888-390-3333, contacting your authorized Vancouver, BC V6C 3E8 dealer or visiting our website Toronto at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Mortgage Pooled Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Mortgage Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the represent attractive value at current levels. With the yield spread Fund; we, us and our refer to HSBC Global Asset Management now closer to its long-term historical average, the incremental (Canada) Limited; and the Fund refers to the HSBC Mortgage yield advantage is considerable given the historically low Pooled Fund. interest rate environment.

We are the manager, trustee and primary investment advisor of The Fund’s relatively high running yield continues to be a the Fund. positive for returns and will help offset some of the negative impacts if mortgage rates move higher. Portfolio duration is Introduction conservatively positioned below two years. This Interim Management Report of Fund Performance contains financial highlights but does not contain either the semi-annual Recent Developments financial report or annual financial statements of the investment With longer-term yields expected to rise modestly over the next fund. You may obtain a copy of the Fund’s semi-annual financial year, we aim to maintain the Fund’s interest rate exposure at or report or annual financial statements at your request, at no cost, slightly below the benchmark in the near term. Given that yields by calling us toll-free at 1-888-390-3333, by visiting our website at the short end of the yield curve are now discounting one at www.assetmanagement.hsbc.ca, by visiting the SEDAR 25-basis-point rate cut, we expect that upward pressure on website at www.sedar.com or by writing to us at: longer-term yields will lead to a steepening of the yield curve.

Corporate Secretary We feel that the corporate sector remains fundamentally sound, HSBC Global Asset Management (Canada) Limited with stable earnings growth and defensively positioned balance 3rd Floor, 885 West Georgia Street sheets. Sector valuations in credit markets have mostly Vancouver, BC V6C 3E8 recovered from the widening we saw in the last quarter of 2018. That said, we continue to prefer provincial and corporate bonds You may also contact us using one of these methods to request a over Government of Canada bonds and we expect to remain copy of the Fund’s proxy voting policies and procedures, proxy slightly overweight in these sectors. voting disclosure record or quarterly statement of investment portfolio. Related Party Transactions We, on behalf of the Fund, in our role as fund manager, may, Results of Operations from time to time, enter into transactions or arrangements with As of June 30, 2019, the Fund's net assets increased by 7.9% to or involving other members of the HSBC Group or other people $711.7 million from $659.5 million at the end of 2018. Net or companies related or connected to us or the Fund. To proceed contributions and positive investment performance resulted in with the transactions, the Fund relies on the positive an overall increase in net asset value. recommendation of the Fund’s Independent Review Committee. A condition of this positive recommendation is that the transactions Investment Performance are performed in accordance with our policy on Related Party The HSBC Mortgage Pooled Fund rose 2.63% for the six months Transactions. For more general information on persons related to ending June 30, 2019, while the benchmark rose 1.79% over the the Fund and the types of potential transactions, see the Fund’s same period. The benchmark is a weighted composite Simplified Prospectus. consisting of the FTSE Canada 1-Year Mortgage Index (45%), The following is a summary of current transactions and FTSE Canada 3-Year Mortgage Index (25%), FTSE Canada Short arrangements with entities that are related to us or the Fund. Term Bond Index (10%), FTSE Canada 5-Year Mortgage Index (10%) and FTSE Canada 91 Day T-Bill Index (10%), with a Manager, Trustee and Investment Advisor discount factor applied to mortgage components. The Fund’s We are the manager, trustee and primary investment advisor of returns are after the deduction of fees and expenses, while the the Fund. As manager, we manage the overall business and benchmark’s returns do not include any costs of investing. operations of the Fund. As trustee, we hold legal title to the Broad posted mortgage rates were stable in the first half of the property of the Fund on your behalf. As primary investment year, with the yield on the FTSE Residential Mortgage Index advisor, we provide investment advice and portfolio remaining at 4.29% from the end of 2018. The yield differential management services to the Fund. We receive a fee from the between five-year fixed mortgage rates and five-year Fund for these services based on assets under management, Government of Canada bonds widened to 395 basis points in calculated daily and paid monthly. Q2, up from 346 basis points at the end of 2018. Mortgage Sale and Administration Services Overall, mortgages outperformed short-term government bonds The HSBC Mortgage Pooled Fund invests primarily in units of in the period due to their higher running yield and the tightening the HSBC Mortgage Fund. The HSBC Mortgage Fund purchases in mortgage yield spreads. We believe mortgage rates still its mortgages from HSBC Bank Canada (“the Bank”) (of which

1 HSBC Mortgage Pooled Fund we are a wholly owned subsidiary) and its subsidiary, HSBC HSBC Mortgage Pooled Fund – Net Assets per Mortgage Corporation (Canada) (“Mortgage Corp.”), at an Unit(1) amount that will produce a yield to the HSBC Mortgage Fund of Period ended June 30, 2019, and years ended December 31 not more than 1/4 of 1% less than the interest rate at which the June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Bank or Mortgage Corp. is making a similar commitment at the 2019 2018 2017 2016 2015 2014 time of purchase. The lesser yield of 1/4 of 1% is in Net assets per unit, consideration of the agreement by the Bank to repurchase the beginning of period (2) $10.12 $10.19 $10.34 $10.29 $10.31 $10.31 mortgages under certain circumstances. The proportion of this Increase fee for the HSBC Mortgage Pooled Fund amounted to $754,300 (decrease) from on June 30, 2019 (June 30, 2018, $707,898). operations: Total revenue 0.14 0.26 0.25 0.27 0.29 0.28 To proceed with the transactions, the HSBC Mortgage Fund Total expenses – – – – – – Realized gains (losses) – (0.01) – – – 0.01 relied on the approval of the Fund’s Independent Review Unrealized gains Committee by way of Standing Instruction. A condition of this (losses) 0.13 (0.07) (0.14) 0.05 (0.03) (0.02) approval was that the transactions were performed in Total increase accordance with National Policy No. 29 and in accordance with (decrease) from all requirements of various relief orders that have been granted operations (2) $0.27 $0.18 $0.11 $0.32 $0.26 $0.27 to us by the regulators in relation to these kinds of transactions. Distributions to unitholders: In addition, pursuant to an agreement between the Bank and From net investment the HSBC Mortgage Fund, the HSBC Mortgage Fund will pay income (excluding the Bank a fee for the administration of the mortgages dividends) (0.14) (0.25) (0.25) (0.27) (0.28) (0.27) From dividends – – – – – – purchased from the Bank, which will be accrued and paid daily From capital gains – – – – – – as an expense to the HSBC Mortgage Fund. The proportion of Return of capital – – – – – – this fee for the HSBC Mortgage Pooled Fund amounted to Total annual $309,355 on June 30, 2019 (June 30, 2018, $289,311 ). distributions (2,3) $(0.14) $(0.25) $(0.25) $(0.27) $(0.28) $(0.27) Net assets per unit, Distribution Services end of period (2) $10.25 $10.12 $10.19 $10.34 $10.29 $10.31 The Fund is distributed through us and HSBC Investment Funds (Canada) Inc. (our wholly owned subsidiary). We may pay distribution and servicing fees to our related party distributor Ratios and Supplemental Data based on the value of the units held in the investor’s account, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 and additionally, in some cases, on the amount of the initial purchase. Net Asset Value (in 000s) (4) $711,704 $659,499 $606,055 $531,649 $477,314 $361,719 Number of units Financial Highlights outstanding (in 000s) (4) 69,447 65,157 59,453 51,442 46,402 35,101 The following tables show selected key financial information Management expense about the Fund and are intended to help you understand the ratio ("MER") (5) 0.18% 0.13% 0.14% 0.14% 0.10% 0.08% Fund’s financial performance for the six-month period ended MER before waivers or absorptions (5) 0.18% 0.13% 0.14% 0.14% 0.10% 0.08% June 30, 2019, and for the last five years ended December 31, Trading expense as applicable. In the year a fund is established, “period” ratio (6) n/a n/a n/a n/a n/a n/a represents the period from inception to December 31 or June 30 Portfolio turnover of that fiscal year, as applicable. This information is derived from rate (7) 3.22% 5.69% 3.75% 8.82% 8.74% 8.13% Net Asset Value per the Fund’s unaudited semi-annual financial statements and the unit (4) $10.25 $10.12 $10.19 $10.34 $10.29 $10.31 audited annual financial statements. The information in the (1) This information is derived from the Fund’s unaudited semi-annual following tables is based on prescribed regulations, and as a financial report and audited annual financial statements. All result, is not expected to add due to the increase/decrease in net assets from operations being based on average units outstanding during the period and all other numbers being based on actual units outstanding at the relevant point in time.

2 HSBC Mortgage Pooled Fund

balances are stated in accordance with IFRS. Under IFRS, the net Management fees paid to us were used to pay costs for assets per unit presented in the financial statements is the same as managing the investment portfolio, providing investment the net asset value calculated for fund pricing purposes. analysis and recommendations, making investment decisions, (2) Net assets per unit and distributions per unit are based on the actual making brokerage arrangements for the purchase and sale of number of units outstanding at the relevant time. The increase/ the investment portfolio and providing other services. The decrease in net assets from operations per unit is based on the management fees also funded commission payments and other weighted average number of units outstanding over the financial period. compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including (3) Distributions are automatically reinvested in additional units of the HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. for units of the Fund bought and held by unitholders. Finally, we used management fees to pay for additional marketing and (4) This information is provided as at period-end of the year shown. distribution services to the Fund. (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for For the six months ended June 30, 2019, approximately 40% of the stated period and is expressed as an annualized percentage of the total management fees paid to us for all HSBC Pooled Funds daily average net asset value during the period. In the year a Fund is were used to fund distribution costs. established, the MER is annualized from the date of inception to the end of the period. We may have waived or absorbed certain fees Past Performance and expenses otherwise payable by the Fund. The amount of The performance information shown assumes that all expenses absorbed or waived is at the discretion of and can be terminated at any time by us. distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance The Fund may invest in units of other mutual funds and pooled information does not take into account management fees, sales, funds. You should note that in addition to the fees and expenses redemption, distribution, optional charges or expenses you may paid by the Fund, these other funds have their own operating expenses to pay. The Fund will effectively bear the operating be charged outside of the Fund or the effect of any income tax expenses of the other funds in proportion to its holdings in the other you may have to pay as a result of your investment in the Fund funds. However, the Fund will not invest in units of other funds if the that would have reduced returns or performance. The Fund’s Fund would be required to pay any management fees in respect of past performance does not necessarily indicate how it will such investments. In addition, the Fund will not make investments in perform in the future. other funds if the Fund would be required to pay any sales or redemption fees in respect of such investments that duplicate a fee Year-by-Year Returns payable by unitholders of the Fund. Further, the Fund will not invest The following bar chart shows the Fund’s annual performance in units of other funds if any sales or redemption fees are payable in respect of such investments. for the six-month period ended June 30, 2019, and for each of the previous 12-month periods ended December 31. In (6) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of percentage terms, the bar chart shows how much an daily average net asset value during the financial period. investment made on the first day of each financial period would have grown or decreased by the last day of each (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. 10% There is not necessarily a relationship between a high turnover rate and the performance of the Fund. The rate is calculated based on the lesser of purchases or sales of securities divided by the average 6.2% weighted market value of the portfolio securities, excluding short-term securities. 5% 3.6% 3.1% 3.1% Management Fees 2.8% 2.7% 2.6% 2.6% 2.6% For the six months ended June 30, 2019, the Fund did not pay 1.8% 1.0% management fees. You pay us, HSBC Investment Funds 0% (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 your approved advisor a management fee that is based on the 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 amount you have invested with us or your approved advisor (which may be subject to certain minimum annual fees). It is negotiated between you and us, HSBC Investment Funds (Canada) Inc. or your approved advisor. Further details can be found in the Fund’s Simplified Prospectus.

3 HSBC Mortgage Pooled Fund

Summary of Investment Portfolio As at June 30, 2019 The Fund invests substantially all of its assets in the HSBC Mortgage Fund – Institutional Series. The tables below give you a snapshot of the HSBC Mortgage Fund's investment on June 30, 2019.

Asset Mix Percentage of NAV

Residential Mortgages 74.95% Corporate Bonds 13.63% Government Bonds 1.97% Cash & Equivalents 9.45% Total 100.00%

Top 25 Holdings Percentage of NAV

Residential Mortgages 74.94% Government of Canada, 6.96%, 12/01/2021 1.33% Wells Fargo Canada Corp., 2.94%, 07/25/2019 0.48% Bruce Power LP, 2.84%, 06/23/2021 0.39% CAFO Inc., 1.93%, 07/03/2019 0.38% Enbridge Inc., 3.94%, 06/30/2023 0.36% TMX Group Ltd., 4.46%, 10/03/2023 0.36% Alimentation Couche-Tard Inc., 3.90%, 11/01/2022 0.35% Daimler Canada Finance Inc., 1.90%, 08/22/2019 0.33% Empire Life Insurance Co., 3.38%, 12/16/2026 0.33% National Bank Financial, 1.65%, 07/02/2019 0.33% Anheuser-Busch InBev Finance Inc., 2.60%, 05/15/2024 0.31% Bank of America Corp., 3.23%, 06/22/2022 0.30% Canadian Natural Resources Ltd., 3.31%, 02/11/2022 0.30% Canadian Western Bank, 2.00%, 11/06/2019 0.29% Hydro One Inc., 2.01%, 09/12/2019 0.29% Manulife Bank of Canada, 1.92%, 10/28/2019 0.29% Brookfield Property Finance ULC, 4.35%, 07/03/2023 0.27% Aviva PLC, 4.50%, 05/10/2021 0.25% Brookfield Asset Management Inc., 5.30%, 03/01/2021 0.25% Citigroup Inc., 3.39%, 11/18/2021 0.25% CU Inc., 6.80%, 08/13/2019 0.25% Morgan Stanley, 3.00%, 02/07/2024 0.25% Caterpillar Financial Services Ltd., 2.20%, 12/09/2019 0.24% Heathrow Funding Ltd., 3.00%, 06/17/2023 0.24% Total of Top 25 Holdings 83.36%

4 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents at no cost by calling us 3 Floor, 885 West Georgia Street toll-free at 1-888-390-3333, contacting your authorized Vancouver, BC V6C 3E8 dealer or visiting our website Toronto at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Canadian Bond Pooled Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Canadian Bond Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the The shape of the yield curve continued to flatten over the first Fund; we, us and our refer to HSBC Global Asset Management half of the year, with a 21-basis-point difference between (Canada) Limited; and the Fund refers to the HSBC Canadian two-year and 30-year Government of Canada yields at the end Bond Pooled Fund. of the quarter compared to a 32-basis-point difference at the end of 2018. This is the flattest the yield curve has been since We are the manager, trustee and primary investment advisor of late 2007. the Fund. The Fund’s security selection within corporate bonds and Introduction overweight positions in provincials and corporates were This Interim Management Report of Fund Performance contains positives for performance in the first half of the year. While the financial highlights but does not contain either the semi-annual Fund’s higher running yield and small allocation to emerging financial report or annual financial statements of the investment market debt had a positive impact on relative returns, this was fund. You may obtain a copy of the Fund’s semi-annual financial offset by the Fund’s lower duration, or interest rate risk, which report or annual financial statements at your request, at no cost, was a drag on performance. by calling us toll-free at 1-888-390-3333, by visiting our website Recent Developments at www.assetmanagement.hsbc.ca, by visiting the SEDAR Like the global economy, the Canadian economy seems poised website at www.sedar.com or by writing to us at: for a rebound as the year progresses, with consensus growth Corporate Secretary estimates of 1.4% for 2019 and 1.8% for 2020. Canadian HSBC Global Asset Management (Canada) Limited inflation remains modest, with consensus expectations of 1.9% 3rd Floor, 885 West Georgia Street in 2019 and 2.0% in 2020. Vancouver, BC V6C 3E8 Longer-term yields are expected to rise modestly over the next You may also contact us using one of these methods to request a year, and we therefore aim to maintain the Fund’s interest rate copy of the Fund’s proxy voting policies and procedures, proxy exposure at or slightly below the benchmark in the near term. voting disclosure record or quarterly statement of investment With yields at the short end of the yield curve now discounting one 25-basis-point rate cut, we expect that upward pressure on portfolio. longer-term yields will lead to a steepening of the yield curve. Results of Operations We feel that the corporate sector remains fundamentally sound, As of June 30, 2019, the Fund's net assets increased by 6.8% to with stable earnings growth and defensively positioned balance $1,092.3 million from $1,022.3 million at the end of 2018. Net sheets. Sector valuations in credit markets have mostly contributions and positive investment performance resulted in recovered from the widening we saw in the last quarter of 2018. an overall increase in net asset value. That said, we continue to prefer provincial and corporate bonds over Government of Canada bonds and will look to remain Investment Performance slightly overweight in these sectors. The HSBC Canadian Bond Pooled Fund rose 6.80% for the six months ending June 30, 2019, while the benchmark FTSE Related Party Transactions Canada Universe Bond Index rose 6.52% over the same period. We, on behalf of the Fund, in our role as fund manager, may, The Fund’s returns are after the deduction of fees and expenses, from time to time, enter into transactions or arrangements with while the benchmark’s returns do not include any costs of or involving other members of the HSBC Group or other people investing. or companies related or connected to us or the Fund. To proceed with the transactions, the Fund relies on the positive Increasing evidence of a slowing global expansion continues to recommendation of the Fund’s Independent Review Committee. A provide a positive backdrop for fixed income assets, which have condition of this positive recommendation is that the transactions seen positive returns across different sectors and terms. The are performed in accordance with our policy on Related Party 10-year Government of Canada bond yield, commonly looked at Transactions. For more general information on persons related to as a proxy for the broad market, finished Q2 at 1.46% compared the Fund and the types of potential transactions, see the Fund’s to 1.96% at the end of 2018. Over the past six months, Simplified Prospectus. provincial bonds (8.95%) have been the best-performing sector, The following is a summary of current transactions and followed by corporate bonds (7.24%) and Government of arrangements with entities that are related to us or the Fund. Canada bonds (5.82%). Manager, Trustee and Investment Advisor We are the manager, trustee and primary investment advisor of the Fund. As manager, we manage the overall business and operations of the Fund. As trustee, we hold legal title to the

1 HSBC Canadian Bond Pooled Fund property of the Fund on your behalf. As primary investment HSBC Canadian Bond Pooled Fund – Net Assets advisor, we provide investment advice and portfolio per Unit(1) management services to the Fund. We receive a fee from the Period ended June 30, 2019, and years ended December 31 Fund for these services based on assets under management, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, calculated daily and paid monthly. 2019 2018 2017 2016 2015 2014 Net assets per unit, Distribution Services beginning of period (2) $11.72 $11.97 $11.93 $12.13 $12.18 $11.63 The Fund is distributed through us and HSBC Investment Funds Increase (Canada) Inc. (our wholly owned subsidiary). We may pay (decrease) from distribution and servicing fees to our related party distributor operations: based on the value of the units held in the investor’s account, Total revenue 0.19 0.38 0.40 0.42 0.43 0.43 Total expenses – – (0.01) – (0.01) (0.01) and additionally, in some cases, on the amount of the Realized gains (losses) 0.01 (0.01) 0.01 0.07 0.03 0.01 initial purchase. Unrealized gains (losses) 0.59 (0.24) 0.01 (0.19) (0.10) 0.51 Purchases of Securities Underwritten by a Related Party Total increase The Fund may invest in certain securities that are underwritten, (decrease) from in whole or in part, by entities that are a related party to us. To operations (2) $0.79 $0.13 $0.41 $0.30 $0.35 $0.94 proceed with these transactions, the Fund relies on the approval Distributions to of the Fund’s Independent Review Committee by way of unitholders: From net investment Standing Instruction. A condition of this approval is that the income (excluding transactions are performed in accordance with our policy on dividends) (0.20) (0.38) (0.38) (0.42) (0.42) (0.41) Purchases of Securities Underwritten by a Related Party. During From dividends – – – – – – the period, the Fund did not invest in any such securities. From capital gains – – – (0.09) – – Return of capital – – – – – – Financial Highlights Total annual distributions (2,3) $(0.20) $(0.38) $(0.38) $(0.51) $(0.42) $(0.41) The following tables show selected key financial information about the Fund and are intended to help you understand the Net assets per unit, end of period (2) $12.31 $11.72 $11.97 $11.93 $12.13 $12.18 Fund’s financial performance for the six-month period ended June 30, 2019, and for the last five years ended December 31, as applicable. In the year a fund is established, “period” Ratios and Supplemental Data represents the period from inception to December 31 or June 30 June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, of that fiscal year, as applicable. This information is derived from 2019 2018 2017 2016 2015 2014 the Fund’s unaudited semi-annual financial statements and the Net Asset Value (in audited annual financial statements. The information in the 000s) (4) $1,092,276 $1,022,337 $977,991 $790,135 $762,227 $691,241 following tables is based on prescribed regulations, and as a Number of units outstanding (in result, is not expected to add due to the increase/decrease in net 000s) (4) 88,696 87,221 81,697 66,245 62,820 56,750 assets from operations being based on average units Management outstanding during the period and all other numbers being expense ratio based on actual units outstanding at the relevant point in time. ("MER") (5) 0.06% 0.05% 0.05% 0.05% 0.06% 0.07% MER before waivers or absorptions (5) 0.06% 0.05% 0.05% 0.05% 0.06% 0.07% Trading expense ratio (6) n/a n/a n/a n/a n/a n/a Portfolio turnover rate (7) 16.40% 43.13% 37.53% 37.19% 21.85% 22.32% Net Asset Value per unit (4) $12.31 $11.72 $11.97 $11.93 $12.13 $12.18 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All

2 HSBC Canadian Bond Pooled Fund

balances are stated in accordance with IFRS. Under IFRS, the net Management fees paid to us were used to pay costs for assets per unit presented in the financial statements is the same as managing the investment portfolio, providing investment the net asset value calculated for fund pricing purposes. analysis and recommendations, making investment decisions, (2) Net assets per unit and distributions per unit are based on the actual making brokerage arrangements for the purchase and sale of number of units outstanding at the relevant time. The increase/ the investment portfolio and providing other services. The decrease in net assets from operations per unit is based on the management fees also funded commission payments and other weighted average number of units outstanding over the financial period. compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including (3) Distributions are automatically reinvested in additional units of the HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. for units of the Fund bought and held by unitholders. Finally, we used management fees to pay for additional marketing and (4) This information is provided as at period-end of the year shown. distribution services to the Fund. (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for For the six months ended June 30, 2019, approximately 40% of the stated period and is expressed as an annualized percentage of the total management fees paid to us for all HSBC Pooled Funds daily average net asset value during the period. In the year a Fund is were used to fund distribution costs. established, the MER is annualized from the date of inception to the end of the period. We may have waived or absorbed certain fees Past Performance and expenses otherwise payable by the Fund. The amount of The performance information shown assumes that all expenses absorbed or waived is at the discretion of and can be terminated at any time by us. distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance The Fund may invest in units of other mutual funds and pooled information does not take into account management fees, sales, funds. You should note that in addition to the fees and expenses redemption, distribution, optional charges or expenses you may paid by the Fund, these other funds have their own operating expenses to pay. The Fund will effectively bear the operating be charged outside of the Fund or the effect of any income tax expenses of the other funds in proportion to its holdings in the other you may have to pay as a result of your investment in the Fund funds. However, the Fund will not invest in units of other funds if the that would have reduced returns or performance. The Fund’s Fund would be required to pay any management fees in respect of past performance does not necessarily indicate how it will such investments. In addition, the Fund will not make investments in perform in the future. other funds if the Fund would be required to pay any sales or redemption fees in respect of such investments that duplicate a fee Year-by-Year Returns payable by unitholders of the Fund. Further, the Fund will not invest The following bar chart shows the Fund’s annual performance in units of other funds if any sales or redemption fees are payable in respect of such investments. for the six-month period ended June 30, 2019, and for each of the previous 12-month periods ended December 31. In (6) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of percentage terms, the bar chart shows how much an daily average net asset value during the financial period. investment made on the first day of each financial period would have grown or decreased by the last day of each (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. 15% There is not necessarily a relationship between a high turnover rate and the performance of the Fund. The rate is calculated based on the lesser of purchases or sales of securities divided by the average 10% 8.7% 8.4% 7.3% 7.7% weighted market value of the portfolio securities, excluding 6.8% short-term securities. 5.1% 5% 3.6% 3.1% 2.5% Management Fees 1.1% 0% For the six months ended June 30, 2019, the Fund did not pay -0.1% management fees. You pay us, HSBC Investment Funds -5% (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 your approved advisor a management fee that is based on the 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 amount you have invested with us or your approved advisor (which may be subject to certain minimum annual fees). It is negotiated between you and us, HSBC Investment Funds (Canada) Inc. or your approved advisor. Further details can be found in the Fund’s Simplified Prospectus.

3 HSBC Canadian Bond Pooled Fund

Summary of Investment Portfolio As at June 30, 2019

Asset Mix Percentage of NAV

Government Bonds 45.56% Corporate Bonds 44.71% Mutual Funds 8.78% Cash & Equivalents 0.95% Total 100.00%

Top 25 Holdings Percentage of NAV

HSBC Mortgage Fund - Institutional Series 6.78% Government of Canada, 4.00%, 06/01/2041 6.63% Government of Canada, 3.96%, 12/01/2036 4.55% Province of Ontario, 2.90%, 06/02/2049 3.10% Province of Saskatchewan, 5.00%, 03/05/2037 2.08% Province of Ontario, 5.60%, 06/02/2035 2.01% HSBC Emerging Markets Debt Fund - Institutional Series 2.00% Province of Alberta, 3.50%, 06/01/2031 1.90% Government of Canada, 2.75%, 12/01/2048 1.78% Province of British Columbia, 2.80%, 06/18/2048 1.77% Province of Ontario, 2.85%, 06/02/2023 1.76% Province of Ontario, 2.70%, 06/02/2029 1.66% Province of New Brunswick, 3.55%, 06/03/2043 1.60% Province of Ontario, 2.90%, 06/02/2028 1.43% Province of Ontario, 2.60%, 06/02/2027 1.40% Province of Manitoba, 4.05%, 09/05/2045 1.18% Peel Regional Municipality, 5.10%, 06/29/2040 1.16% Province of Alberta, 2.65%, 09/01/2023 1.12% Province of Manitoba, 3.25%, 09/05/2029 1.00% TMX Group Ltd., 4.46%, 10/03/2023 0.99% CCL Industries Inc., 3.86%, 04/13/2028 0.95% Goldman Sachs Group Inc., 3.55%, 02/12/2021 0.93% Province of Alberta, 2.90%, 12/01/2028 0.93% Canadian Imperial Bank of Commerce, 1.64%, 07/12/2021 0.89% TransCanada Trust, 4.65%, 05/18/2077 0.87% Total of Top 25 Holdings 50.47%

4 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents at no cost by calling us 3 Floor, 885 West Georgia Street toll-free at 1-888-390-3333, contacting your authorized Vancouver, BC V6C 3E8 dealer or visiting our website Toronto at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Global High Yield Bond Pooled Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Global High Yield Bond Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the US Treasuries rallied over the first half of 2019 with two-, three- Fund; we, us and our refer to HSBC Global Asset Management and five-year yields falling 74, 75 and 75 basis points to end (Canada) Limited; and the Fund refers to the HSBC Global High June at 1.75%, 1.71% and 1.77%, respectively, while 10-year Yield Bond Pooled Fund. and 30-year yields fell 68 and 49 basis points to end the period at 2.01% and 2.53% respectively. The yield on 10-year German We are the manager, trustee and primary investment advisor of bunds fell 57 basis points to -0.33%. the Fund. We have hired HSBC Global Asset Management (USA) Inc. and HSBC Global Asset Management (France) as Allocation contributed positively to performance. The Fund’s sub-advisors to provide portfolio management and investment overweight position to the US component of its portfolio and advisory services to the Fund. For an explanation of the underweight position to the euro and emerging market relationship between us and the sub-advisors, see the section components was positive, as US bonds outperformed over the period. Issue selection was a drag, with underperformance in all Selection of Sub-Advisors in the Fund’s Simplified Prospectus. three components compared to their respective benchmarks. Introduction Recent Developments This Interim Management Report of Fund Performance contains Over the period, the Fund was overweight in US-dollar bonds financial highlights but does not contain either the semi-annual and underweight in emerging market and euro bonds as US financial report or annual financial statements of the investment bonds were more attractive from a relative valuation fund. You may obtain a copy of the Fund’s semi-annual financial perspective. report or annual financial statements at your request, at no cost, by calling us toll-free at 1-888-390-3333, by visiting our website In credit quality, the Fund is one notch higher than the reference at www.assetmanagement.hsbc.ca, by visiting the SEDAR index on an average rating basis. Within this rating, the Fund is website at www.sedar.com or by writing to us at: overweight in BBBs and CCCs and underweight in BBs and Bs. The BBB exposure largely reflects the Fund’s more cautious Corporate Secretary positioning in euro bonds. This is balanced with a preference for HSBC Global Asset Management (Canada) Limited US-dollar bonds for selective CCC credits versus BB and B rated 3rd Floor, 885 West Georgia Street bonds. The CCC exposure is largely in more Vancouver, BC V6C 3E8 defensive industries. You may also contact us using one of these methods to request a The main sector overweights are to consumer cyclicals and copy of the Fund’s proxy voting policies and procedures, proxy basic materials, and the main sector underweights are to voting disclosure record or quarterly statement of investment financials and energy. The underweight to financials reflects portfolio. underweights in US and emerging market bonds, while the Fund has an overweight to European financials. The Fund is also Results of Operations underweight in communications, where M&A activity and As of June 30, 2019, the Fund's net assets increased by 19.8% stretched valuations make the sector relatively less attractive. to $290.5 million from $242.4 million at the end of 2018. Net contributions and positive investment performance resulted in Related Party Transactions an overall increase in net asset value. We, on behalf of the Fund, in our role as fund manager, may, from time to time, enter into transactions or arrangements with Investment Performance or involving other members of the HSBC Group or other people The HSBC Global High Yield Bond Pooled Fund rose 8.99% for or companies related or connected to us or the Fund. To proceed the six months ending June 30, 2019, while the benchmark with the transactions, the Fund relies on the positive Bank of America Merrill Lynch BB-B Global High Yield Bond recommendation of the Fund’s Independent Review Committee. A Constrained Index (hedged C$) rose 9.26% over the same condition of this positive recommendation is that the transactions period. The Fund’s returns are after the deduction of fees and are performed in accordance with our policy on Related Party expenses, while the benchmark’s returns do not include any Transactions. For more general information on persons related to costs of investing. the Fund and the types of potential transactions, see the Fund’s The year began with a risk-on rally as recessionary fears faded Simplified Prospectus. and a more “patient” tone from the US Federal Reserve helped The following is a summary of current transactions and boost investor sentiment. Credit markets experienced one of arrangements with entities that are related to us or the Fund. their best starts to the year, driving spreads tighter. Credit spreads widened in May as investors shifted to a risk-off Manager, Trustee and Investment Advisor sentiment, sparked by the US administration’s threat of further We are the manager, trustee and primary investment advisor of tariffs on China, but the market rallied in June in anticipation of the Fund. As manager, we manage the overall business and rate cuts in 2019. operations of the Fund. As trustee, we hold legal title to the

1 HSBC Global High Yield Bond Pooled Fund property of the Fund on your behalf. As primary investment HSBC Global High Yield Bond Pooled Fund – advisor, we provide investment advice and portfolio Net Assets per Unit(1) management services to the Fund. We receive a fee from the Period ended June 30, 2019, and years ended December 31 Fund for these services based on assets under management, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, calculated daily and paid monthly. 2019 2018 2017 2016 2015 2014

We have entered into a sub-advisory agreement with HSBC Net assets per unit, beginning of period (2) $7.55 $8.35 $8.23 $7.79 $8.51 $8.65 Global Asset Management (USA) Inc. (an affiliate) and HSBC Increase Global Asset Management (France) (an affiliate), under which (decrease) from HSBC Global Asset Management (USA) Inc. and HSBC Global operations: Asset Management (France) provide investment advice and Total revenue 0.22 0.48 0.47 0.48 0.52 0.57 portfolio management services to the Fund. We pay HSBC Total expenses – (0.01) (0.01) (0.01) (0.01) (0.01) Realized gains (losses) 0.12 (0.40) 0.34 0.06 (0.61) (0.41) Global Asset Management (USA) Inc. and HSBC Global Asset Unrealized gains Management (France) an investment advisory fee based on (losses) 0.32 (0.39) (0.22) 0.41 (0.17) 0.19 assets under management, calculated daily and paid quarterly. Total increase To proceed with this transaction, the Fund relied on the positive (decrease) from recommendation of the Fund’s Independent Review Committee. operations (2) $0.66 $(0.32) $0.58 $0.94 $(0.27) $0.34 For more information on our ability to hire sub-advisors, see the Distributions to section Organization and Management of the HSBC Pooled Funds unitholders: From net investment in the Fund’s Simplified Prospectus. income (excluding dividends) (0.24) (0.48) (0.46) (0.49) (0.50) (0.54) Distribution Services Fromdividends–––––– The Fund is distributed through us and HSBC Investment Funds From capital gains – – –––– (Canada) Inc. (our wholly owned subsidiary). We may pay Returnofcapital–––––– distribution and servicing fees to our related party distributor Total annual based on the value of the units held in the investor’s account, distributions (2,3) $(0.24) $(0.48) $(0.46) $(0.49) $(0.50) $(0.54) and additionally, in some cases, on the amount of the Net assets per unit, end of period (2) $7.99 $7.55 $8.35 $8.23 $7.79 $8.51 initial purchase.

Purchases of Securities Underwritten by a Related Party Ratios and Supplemental Data During the period, the Fund invested in certain securities that June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, were underwritten, in whole or in part, by entities that are a 2019 2018 2017 2016 2015 2014 related party to us. To proceed with the transactions, the Fund Net Asset Value (in relied on the approval of the Fund’s Independent Review 000s) (4) $290,514 $242,435 $300,257 $271,812 $289,325 $246,359 Committee by way of Standing Instruction. A condition of this Number of units approval was that the transactions were performed in outstanding (in 000s) (4) 36,372 32,118 35,972 33,044 37,117 28,951 Management expense accordance with our policy on Purchases of Securities ratio ("MER") (5) 0.12% 0.08% 0.09% 0.07% 0.06% 0.07% Underwritten by a Related Party. MER before waivers or absoptions (5) 0.12% 0.08% 0.09% 0.07% 0.06% 0.07% Financial Highlights Trading expense The following tables show selected key financial information ratio (6) n/a n/a n/a n/a 0.01% 0.01% Portfolio turnover about the Fund and are intended to help you understand the rate (7) 35.40% 47.03% 51.31% 46.13% 89.89% 46.46% Fund’s financial performance for the six-month period ended Net Asset Value per June 30, 2019, and for the last five years ended December 31, unit (4) $7.99 $7.55 $8.35 $8.23 $7.79 $8.51 as applicable. In the year a fund is established, “period” (1) This information is derived from the Fund’s unaudited semi-annual represents the period from inception to December 31 or June 30 financial report and audited annual financial statements. All of that fiscal year, as applicable. This information is derived from the Fund’s unaudited semi-annual financial statements and the audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net assets from operations being based on average units outstanding during the period and all other numbers being based on actual units outstanding at the relevant point in time.

2 HSBC Global High Yield Bond Pooled Fund

balances are stated in accordance with IFRS. Under IFRS, the net For the six months ended June 30, 2019, approximately 40% of assets per unit presented in the financial statements is the same as the total management fees paid to us for all HSBC Pooled Funds the net asset value calculated for fund pricing purposes. were used to fund distribution costs. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding at the relevant time. The increase/ Past Performance decrease in net assets from operations per unit is based on the The performance information shown assumes that all weighted average number of units outstanding over the distributions made by the Fund in the periods shown were financial period. reinvested in additional securities of the Fund. The performance (3) Distributions are automatically reinvested in additional units of the information does not take into account management fees, sales, Fund, unless the unitholder withdraws from the automatic redemption, distribution, optional charges or expenses you may reinvestment plan by providing written notice to us. be charged outside of the Fund or the effect of any income tax (4) This information is provided as at period-end of the year shown. you may have to pay as a result of your investment in the Fund (5) Management expense ratio is based on total expenses (excluding that would have reduced returns or performance. The Fund’s distributions, commissions and other portfolio transaction costs) for past performance does not necessarily indicate how it will the stated period and is expressed as an annualized percentage of perform in the future. daily average net asset value during the period. In the year a Fund is established, the MER is annualized from the date of inception to the end of the period. We may have waived or absorbed certain fees Year-by-Year Returns and expenses otherwise payable by the Fund. The amount of The following bar chart shows the Fund’s annual performance expenses absorbed or waived is at the discretion of and can be for the six-month period ended June 30, 2019, and for each of terminated at any time by us. the previous 12-month periods ended December 31. In (6) The trading expense ratio represents total commissions and other percentage terms, the bar chart shows how much an portfolio transaction costs expressed as an annualized percentage of investment made on the first day of each financial period would daily average net asset value during the financial period. have grown or decreased by the last day of each (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s financial period. portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all Returns of the securities in its portfolio once in the course of the period. The For the 12-month periods ended December 31 and the higher the Fund’s portfolio turnover rate in a period, the greater the six-month period ended June 30, 2019 trading costs payable by the Fund in the period, and the greater the 40% chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 30.7% 30% and the performance of the Fund. The rate is calculated based on the lesser of purchases or sales of securities divided by the average 20% weighted market value of the portfolio securities, excluding 15.2% 12.1% short-term securities. 9.2% 10% 8.1% 7.2% 9.0% 6.0% 4.7% Management Fees For the six months ended June 30, 2019, the Fund did not pay 0% management fees. You pay us, HSBC Investment Funds -2.6% -3.9% -10% (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 your approved advisor a management fee that is based on the amount you have invested with us or your approved advisor (which may be subject to certain minimum annual fees). It is Summary of Investment Portfolio negotiated between you and us, HSBC Investment Funds As at June 30, 2019 (Canada) Inc. or your approved advisor. Further details can be found in the Fund’s Simplified Prospectus. Asset Mix Management fees paid to us were used to pay costs for Percentage of NAV managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, Corporate Bonds 90.94% making brokerage arrangements for the purchase and sale of Government Bonds 1.55% the investment portfolio and providing other services. The Cash & Equivalents 7.51% Total 100.00% management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, for units of the Fund bought and held by unitholders. Finally, we used management fees to pay for additional marketing and distribution services to the Fund.

3 HSBC Global High Yield Bond Pooled Fund

Geographic> Mix Top 25 Holdings Percentage Percentage of NAV of NAV

United States 51.03% Golden Nugget Inc., 8.75%, 10/01/2025 1.03% Luxembourg 4.54% Select Medical Corp., 6.38%, 06/01/2021 1.03% France 4.42% Carlson Travel Inc., 6.75%, 12/15/2023 0.94% Netherlands 4.13% NOVA Chemicals Corp., 5.25%, 06/01/2027 0.91% Canada 3.71% Viking Cruises Ltd., 5.88%, 09/15/2027 0.82% Cayman Islands 3.62% Eldorado Resorts Inc., 6.00%, 09/15/2026 0.75% United Kingdom 2.36% Greif Inc., 6.50%, 03/01/2027 0.75% Germany 2.22% Park Aerospace Holdings Ltd., 5.50%, 02/15/2024 0.74% Ireland 1.78% Cablevision Systems Corp., 5.88%, 09/15/2022 0.70% Argentina 1.23% Silversea Cruises Ltd., 7.25%, 02/01/2025 0.71% Mexico 1.14% Eagle Holding Co. II LLC, 7.63%, 05/15/2022 0.69% Turkey 1.11% Tenet Healthcare Corp., 8.13%, 04/01/2022 0.68% Bermuda 1.10% Unitymedia KabelBW GmbH, 6.13%, 01/15/2025 0.67% Brazil 1.02% PBF Holding Co. LLC, 7.00%, 11/15/2023 0.66% Switzerland 0.80% Tempo Acquisition LLC / Tempo Acquisition Finance Corp., Austria 0.72% 6.75%, 06/01/2025 0.66% Bahamas 0.71% Zayo Group LLC / Zayo Capital Inc., 6.00%, 04/01/2023 0.65% Italy 0.70% Telenet Finance Luxembourg Notes Sarl, 5.50%, 03/01/2028 0.64% Singapore 0.57% Level 3 Communications Inc., 5.75%, 12/01/2022 0.63% British Virgin Islands 0.46% DISH DBS Corp., 6.75%, 06/01/2021 0.62% Spain 0.45% Gulfport Energy Corp., 6.00%, 10/15/2024 0.62% Sweden 0.40% PBF Logistics LP / PBF Logistics Finance Corp., 6.88%, Japan 0.38% 05/15/2023 0.61% Peru 0.34% Jacobs Entertainment Inc., 7.88%, 02/01/2024 0.60% South Africa 0.34% Calpine Corp., 6.00%, 01/15/2022 0.58% Belgium 0.30% Chemours Co., 7.00%, 05/15/2025 0.57% Denmark 0.30% Clearwater Paper Corp., 5.38%, 02/01/2025 0.57% Finland 0.26% Total of Top 25 Holdings 17.83% Ukraine 0.23% Mauritius 0.20% Russia 0.19% Panama 0.18% Australia 0.17% China 0.16% Kenya 0.16% Kazakhstan 0.15% Ghana 0.13% Ivory Coast 0.12% Jersey 0.11% Portugal 0.11% Colombia 0.10% Egypt 0.10% Costa Rica 0.09% India 0.09% Czech Republic 0.05% Venezuela 0.01% Cash & Equivalents 7.51% Total 100.00%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

4 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents at no cost by calling us 3 Floor, 885 West Georgia Street toll-free at 1-888-390-3333, contacting your authorized Vancouver, BC V6C 3E8 dealer or visiting our website Toronto at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Global Inflation Linked Bond Pooled Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Global Inflation Linked Bond Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the duration underweight was also negative as yields moved lower Fund; we, us and our refer to HSBC Global Asset Management based on more dovish approaches from the central banks, lower (Canada) Limited; and the Fund refers to the HSBC Global global growth rates and uncertainty regarding trade discussions Inflation Linked Bond Pooled Fund. between the US and China. The Fund’s country positioning was positive, mainly within the eurozone. We are the manager, trustee and primary investment advisor of the Fund. We have entered into a sub-advisory agreement with Over the period, the Fund cut its overweight position to the US HSBC Global Asset Management (UK) Limited, under which versus an underweight position to the eurozone. The Fund also HSBC Global Asset Management (UK) Limited provides moved to an overweight position in duration reflecting a bias investment advice and portfolio management services to the towards lower yields across the board as markets start to Fund. For an explanation of the relationship between us and the discount a weaker global economic environment and as central sub-advisor, see the section Selection of Sub-Advisors in the banks move to more accommodative policies. Fund's Simplified Prospectus. Recent Developments Introduction In the US, a solid labour market and resilient confidence This Interim Management Report of Fund Performance contains continue to buoy economic performance. Yet underlying financial highlights but does not contain either the semi-annual inflation remains subdued and a lack of inflation pressure has financial report or annual financial statements of the investment allowed the US Federal Reserve to adopt a more dovish tone fund. You may obtain a copy of the Fund’s semi-annual financial amid increased downside risks to growth. An escalation in trade report or annual financial statements at your request, at no cost, tensions is the main risk to growth, and if confidence takes a by calling us toll-free at 1-888-390-3333, by visiting our website significant hit, some “insurance” policy easing later this year at www.assetmanagement.hsbc.ca, by visiting the SEDAR seems likely. website at www.sedar.com or by writing to us at: In Europe, the European Central Bank opened the door to policy Corporate Secretary easing and has discussed renewed asset purchases. The latest HSBC Global Asset Management (Canada) Limited eurozone survey data shows a significant divergence between a 3rd Floor, 885 West Georgia Street resilient services sector and a weaker manufacturing sector. Vancouver, BC V6C 3E8 In the UK, the Bank of England has a bias to hike rates, You may also contact us using one of these methods to request a conditional on a smooth Brexit. However, the outlook remains copy of the Fund’s proxy voting policies and procedures, proxy hugely uncertain at present and growth is moderating as voting disclosure record or quarterly statement of investment portfolio. support from Brexit-related stockpiling in Q1 unwinds. In Japan, growth remains sluggish amid external headwinds Results of Operations and a loss of momentum in business investment. Inflation in As of June 30, 2019, the Fund's net assets decreased by 17.5% Japan is set to remain well below the Bank of Japan’s 2% target. to $117.0 million from $141.9 million at the end of 2018. Net Monetary policy is likely to remain expansionary for the withdrawals, partially offset by positive investment time being. performance, resulted in an overall decrease in net asset value. Related Party Transactions Investment Performance We, on behalf of the Fund, in our role as fund manager, may, The HSBC Global Inflation Linked Bond Pooled Fund rose 5.15% for the six months ending June 30, 2019, while the benchmark from time to time, enter into transactions or arrangements with BofA Merrill Lynch Global Inflation-Linked Government or involving other members of the HSBC Group or other people Alternative Weighting Scheme Custom Index (hedged in C$) or companies related or connected to us or the Fund. To proceed rose 5.54% over the same period. The Fund’s returns are after with the transactions, the Fund relies on the positive the deduction of fees and expenses, while the benchmark’s recommendation of the Fund’s Independent Review Committee. A returns do not include any costs of investing. condition of this positive recommendation is that the transactions are performed in accordance with our policy on Related Party Over the period, inflation breakevens in the US and eurozone fell Transactions. For more general information on persons related to to their lowest levels in more than two years and the UK the Fund and the types of potential transactions, see the Fund’s breakeven moved lower after reaching historic highs in Simplified Prospectus. mid-June. The following is a summary of current transactions and The Fund’s underperformance resulted from its duration and arrangements with entities that are related to us or the Fund. breakeven positioning. The Fund’s long exposures in the US had a negative impact as inflation expectations moved lower. A

1 HSBC Global Inflation Linked Bond Pooled Fund

Manager, Trustee and Investment Advisor HSBC Global Inflation Linked Bond Pooled Fund We are the manager, trustee and primary investment advisor of – Net Assets per Unit(1) the Fund. As manager, we manage the overall business and Period ended June 30, 2019, and years ended December 31 operations of the Fund. As trustee, we hold legal title to the June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, property of the Fund on your behalf. As primary investment 2019 2018 2017 2016 2015 2014 advisor, we provide investment advice and portfolio Net assets per unit, management services to the Fund. We receive a fee from the beginning of period (2) $11.30 $11.61 $11.57 $10.81 $10.93 $10.10 Fund for these services based on assets under management, Increase calculated daily and paid monthly. (decrease) from operations: We have entered into a sub-advisory agreement with HSBC Total revenue 0.06 0.13 0.11 0.10 0.11 0.12 Global Asset Management (France), a related sub-advisor, up to Total expenses (0.01) (0.01) (0.02) (0.01) (0.01) (0.02) Realized gains (losses) 0.14 0.60 (0.09) 0.34 (0.51) (0.03) April 17, 2018, and with HSBC Global Asset Management Unrealized gains (UK) Limited, a related sub-advisor, effective April 17, 2018, (losses) 0.37 (0.76) 0.27 0.57 0.38 0.85 under which HSBC Global Asset Management (France) and Total increase HSBC Global Asset Management (UK) Limited provide (decrease) from investment advice and portfolio management services to the operations (2) $0.56 $(0.04) $0.27 $1.00 $(0.03) $0.92 Fund. We pay HSBC Global Asset Management (France) and Distributions to HSBC Global Asset Management (UK) Limited a fee based on unitholders: From net investment assets under management, calculated daily and paid quarterly. income (excluding For more information on our ability to hire sub-advisors, see the dividends) (0.03) (0.26) (0.22) (0.23) (0.09) (0.08) section Organization and Management of the HSBC Pooled Funds From dividends – – – – – – in the Fund’s Simplified Prospectus. From capital gains – – – – – – Return of capital – – – – – – Distribution Services Total annual The Fund is distributed through us and HSBC Investment Funds distributions (2,3) $(0.03) $(0.26) $(0.22) $(0.23) $(0.09) $(0.08) (Canada) Inc. (our wholly owned subsidiary). We may pay Net assets per unit, end of period (2) $11.86 $11.30 $11.61 $11.57 $10.81 $10.93 distribution and servicing fees to our related party distributor based on the value of the units held in the investor’s account, and additionally, in some cases, on the amount of the Ratios and Supplemental Data initial purchase. June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 Financial Highlights Net Asset Value (in The following tables show selected key financial information 000s) (4) $116,953 $141,902 $160,408 $131,753 $88,788 $85,740 about the Fund and are intended to help you understand the Number of units Fund’s financial performance for the six-month period ended outstanding (in 000s) (4) 9,864 12,553 13,816 11,387 8,216 7,845 Management expense June 30, 2019, and for the last five years ended December 31, ratio ("MER") (5) 0.17% 0.11% 0.16% 0.11% 0.13% 0.18% as applicable. In the year a fund is established, “period” MER before waivers or represents the period from inception to December 31 or June 30 absorptions (5) 0.17% 0.11% 0.16% 0.11% 0.13% 0.18% of that fiscal year, as applicable. This information is derived from Trading expense ratio (6) n/a n/a n/a n/a n/a n/a Portfolio turnover rate (7) 27.95% 45.63% 7.85% 45.35% 43.36% 35.58% the Fund’s unaudited semi-annual financial statements and the Net Asset Value per audited annual financial statements. The information in the unit (4) $11.86 $11.30 $11.61 $11.57 $10.81 $10.93 following tables is based on prescribed regulations, and as a (1) This information is derived from the Fund’s unaudited semi-annual result, is not expected to add due to the increase/decrease in net financial report and audited annual financial statements. All assets from operations being based on average units outstanding during the period and all other numbers being based on actual units outstanding at the relevant point in time.

2 HSBC Global Inflation Linked Bond Pooled Fund

balances are stated in accordance with IFRS. Under IFRS, the net For the six months ended June 30, 2019, approximately 40% of assets per unit presented in the financial statements is the same as the total management fees paid to us for all HSBC Pooled Funds the net asset value calculated for fund pricing purposes. were used to fund distribution costs. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding at the relevant time. The increase/ Past Performance decrease in net assets from operations per unit is based on the The performance information shown assumes that all weighted average number of units outstanding over the distributions made by the Fund in the periods shown were financial period. reinvested in additional securities of the Fund. The performance (3) Distributions are automatically reinvested in additional units of the information does not take into account management fees, sales, Fund, unless the unitholder withdraws from the automatic redemption, distribution, optional charges or expenses you may reinvestment plan by providing written notice to us. be charged outside of the Fund or the effect of any income tax (4) This information is provided as at period-end of the year shown. you may have to pay as a result of your investment in the Fund (5) Management expense ratio is based on total expenses (excluding that would have reduced returns or performance. The Fund’s distributions, commissions and other portfolio transaction costs) for past performance does not necessarily indicate how it will the stated period and is expressed as an annualized percentage of perform in the future. daily average net asset value during the period. In the year a Fund is established, the MER is annualized from the date of inception to the end of the period. We may have waived or absorbed certain fees Year-by-Year Returns and expenses otherwise payable by the Fund. The amount of The following bar chart shows the Fund’s annual performance expenses absorbed or waived is at the discretion of and can be for the six-month period ended June 30, 2019, and for each of terminated at any time by us. the previous 12-month periods ended December 31. In (6) The trading expense ratio represents total commissions and other percentage terms, the bar chart shows how much an portfolio transaction costs expressed as an annualized percentage of investment made on the first day of each financial period would daily average net asset value during the financial period. have grown or decreased by the last day of each (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s financial period. portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all Returns of the securities in its portfolio once in the course of the period. The For the 12-month periods ended December 31 and the higher the Fund’s portfolio turnover rate in a period, the greater the six-month period ended June 30, 2019 trading costs payable by the Fund in the period, and the greater the 15% chance of an investor receiving taxable capital gains in the period. 11.6% There is not necessarily a relationship between a high turnover rate 10% 9.0% 9.2% and the performance of the Fund. The rate is calculated based on 7.3% the lesser of purchases or sales of securities divided by the average 5.2% 5% weighted market value of the portfolio securities, excluding 2.3% short-term securities. 0% Management Fees -0.3% -0.4% For the six months ended June 30, 2019, the Fund did not pay -5% -3.9% management fees. You pay us, HSBC Investment Funds -10% (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2011 2012 2013 2014 2015 2016 2017 2018 2019 your approved advisor a management fee that is based on the amount you have invested with us or your approved advisor (which may be subject to certain minimum annual fees). It is Summary of Investment Portfolio negotiated between you and us, HSBC Investment Funds As at June 30, 2019 (Canada) Inc. or your approved advisor. Further details can be found in the Fund’s Simplified Prospectus. Asset Mix Management fees paid to us were used to pay costs for Percentage of NAV managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, Government Bonds 97.20% making brokerage arrangements for the purchase and sale of Cash & Equivalents 2.80% the investment portfolio and providing other services. The Total 100.00% management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, for units of the Fund bought and held by unitholders. Finally, we used management fees to pay for additional marketing and distribution services to the Fund.

3 HSBC Global Inflation Linked Bond Pooled Fund

Geographic> Mix Percentage of NAV

United States 31.61% United Kingdom 15.87% France 10.94% Italy 8.53% Japan 7.16% Spain 6.18% Australia 5.18% Germany 4.69% Canada 4.47% Sweden 1.97% New Zealand 0.60% Cash & Equivalents 2.80% Total 100.00%

Top 25 Holdings Percentage of NAV

Japanese Government CPI Linked Bond, 0.10%, 03/10/2027 4.97% France Government Bond OAT, 0.73%, 07/25/2030 4.41% United States Treasury Inflation Indexed Bond, 0.71%, 07/15/2021 3.70% United States Treasury Inflation Indexed Bond, 2.48%, 02/15/2041 3.53% Spain Government Inflation Linked Bond, 1.89%, 11/30/2024 2.92% United States Treasury Inflation Indexed Bond, 0.14%, 01/15/2023 2.47% United Kingdom Gilt Inflation Linked, 1.60%, 11/22/2037 2.39% Spain Government Inflation Linked Bond, 1.05%, 11/30/2030 2.26% United States Treasury Inflation Indexed Bond, 2.58%, 01/15/2026 2.25% Japanese Government CPI Linked Bond, 0.10%, 03/10/2028 2.19% United States Treasury Inflation Indexed Bond, 0.67%, 01/15/2026 2.10% Italy Buoni Poliennali Del Tesoro, 3.11%, 09/15/2023 1.98% United States Treasury Inflation Indexed Bond, 0.40%, 07/15/2025 1.95% United States Treasury Inflation Indexed Bond, 0.52%, 01/15/2028 1.77% United States Treasury Inflation Indexed Bond, 4.86%, 04/15/2032 1.77% United Kingdom Gilt Inflation Linked, 1.63%, 10/22/2028 1.75% Canadian Government Real Return Bond, 1.38%, 12/01/2047 1.66% United States Treasury Inflation Indexed Bond, 3.01%, 01/15/2027 1.64% Deutsche Bundesrepublik Inflation Linked Bond, 0.11%, 04/15/2026 1.62% France Government Bond OAT, 1.50%, 05/25/2050 1.61% United States Treasury Inflation Indexed Bond, 0.41%, 07/15/2023 1.61% United States Treasury Inflation Indexed Bond, 0.13%, 07/15/2024 1.56% United Kingdom Gilt Inflation Linked, 0.85%, 11/22/2042 1.54% Italy Buoni Poliennali Del Tesoro, 3.44%, 09/15/2026 1.53% United Kingdom Gilt Inflation Linked, 8.59%, 04/16/2020 1.52% Total of Top 25 Holdings 56.70%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

4 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents at no cost by calling us 3 Floor, 885 West Georgia Street toll-free at 1-888-390-3333, contacting your authorized Vancouver, BC V6C 3E8 dealer or visiting our website Toronto at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Emerging Markets Debt Pooled Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Emerging Markets Debt Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Recent Developments Fund; we, us and our refer to HSBC Global Asset Management The Fund maintains an overweight risk position given the (Canada) Limited; and the Fund refers to the HSBC Emerging portfolio management team’s medium-term positive outlook for Markets Debt Pooled Fund. emerging market debt. At the end of June, the Fund held an We are the manager, trustee and primary investment advisor of overweight position in hard currency duration of +0.09 years the Fund. and an overweight-to-spread duration of +0.04 years versus the benchmark. Introduction Given the overall low level of yield, the Fund is underweight to This Interim Management Report of Fund Performance contains local rate duration and favours overweight positions to countries financial highlights but does not contain either the semi-annual with high real rates rather than underweight positions to low financial report or annual financial statements of the investment carry countries with a high correlation to US rates. At the end of fund. You may obtain a copy of the Fund’s semi-annual financial the period, the Fund was underweight to local rate duration by report or annual financial statements at your request, at no cost, -0.12 years versus the benchmark. For local currency, the Fund by calling us toll-free at 1-888-390-3333, by visiting our website ended the period with a neutral position to emerging market at www.assetmanagement.hsbc.ca, by visiting the SEDAR currencies; overweight positions to the Argentine peso, Indian website at www.sedar.com or by writing to us at: rupee, Indonesian rupiah, Malaysian ringgit and Polish zloty; and Corporate Secretary underweight positions to the Israeli shekel, Thai baht and HSBC Global Asset Management (Canada) Limited Singapore dollar. 3rd Floor, 885 West Georgia Street Related Party Transactions Vancouver, BC V6C 3E8 We, on behalf of the Fund, in our role as fund manager, may, You may also contact us using one of these methods to request a from time to time, enter into transactions or arrangements with copy of the Fund’s proxy voting policies and procedures, proxy or involving other members of the HSBC Group or other people voting disclosure record or quarterly statement of investment or companies related or connected to us or the Fund. To proceed portfolio. with the transactions, the Fund relies on the positive recommendation of the Fund’s Independent Review Committee. A Results of Operations condition of this positive recommendation is that the transactions As of June 30, 2019, the Fund's net assets decreased by 3.9% to are performed in accordance with our policy on Related Party $305.0 million from $317.3 million at the end of 2018. Net Transactions. For more general information on persons related to withdrawals, partially offset by positive investment the Fund and the types of potential transactions, see the Fund’s performance, resulted in an overall decrease in net asset value. Simplified Prospectus. The following is a summary of current transactions and Investment Performance arrangements with entities that are related to us or the Fund. The HSBC Emerging Markets Debt Pooled Fund rose 5.75% for the six months ending June 30, 2019, while the benchmark rose Manager, Trustee and Investment Advisor 5.66% over the same period. The benchmark is a weighted We are the manager, trustee and primary investment advisor of composite consisting of the JP Morgan Emerging Markets Bond the Fund. As manager, we manage the overall business and Index Global Hedged (C$) (50%), JP Morgan Government Bond operations of the Fund. As trustee, we hold legal title to the Index – Emerging Markets Global Diversified Unhedged (C$) property of the Fund on your behalf. As primary investment (25%) and JP Morgan Emerging Local Markets Index Plus (C$) advisor, we provide investment advice and portfolio (25%). The Fund’s returns are after the deduction of fees and management services to the Fund. We receive a fee from the expenses, while the benchmark’s returns do not include any Fund for these services based on assets under management, costs of investing. calculated daily and paid monthly. Following a difficult 2018, emerging market assets had a very strong first half of the year thanks to more dovish tones from the Distribution Services US Federal Reserve, ongoing US-China trade negotiations and a The Fund is distributed through us and HSBC Investment Funds rebound in oil prices. While numerous risks presented (Canada) Inc. (our wholly owned subsidiary). We may pay themselves in Q2 – including escalating global trade tensions, distribution and servicing fees to our related party distributor generally weaker growth data and downside pressure on based on the value of the units held in the investor’s account, commodity prices – the sharp fall in developed market rates and additionally, in some cases, on the amount of the supported positive returns overall across emerging market initial purchase. debt assets. Financial Highlights Both investment-grade and high-yield countries performed The following tables show selected key financial information strongly given the positive benefits of the compression in yield about the Fund and are intended to help you understand the and improved market sentiment. The Fund’s underweight Fund’s financial performance for the six-month period ended position to China contributed to relative performance as did June 30, 2019, and for the last five years ended December 31, overweight positions in select high-yield countries. An as applicable. In the year a fund is established, “period” overweight position to Mexico and the allocation to the represents the period from inception to December 31 or June 30 quasi-sovereign PEMEX detracted from performance. of that fiscal year, as applicable. This information is derived from

1 HSBC Emerging Markets Debt Pooled Fund the Fund’s unaudited semi-annual financial statements and the number of units outstanding at the relevant time. The increase/ audited annual financial statements. The information in the decrease in net assets from operations per unit is based on the following tables is based on prescribed regulations, and as a weighted average number of units outstanding over the financial period. result, is not expected to add due to the increase/decrease in net assets from operations being based on average units (3) Distributions are automatically reinvested in additional units of the outstanding during the period and all other numbers being Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. based on actual units outstanding at the relevant point in time. (4) This information is provided as at period-end of the year shown. (5) Management expense ratio is based on total expenses (excluding HSBC Emerging Markets Debt Pooled Fund – distributions, commissions and other portfolio transaction costs) for (1) the stated period and is expressed as an annualized percentage of Net Assets per Unit daily average net asset value during the period. In the year a Fund is Period ended June 30, 2019, and years ended December 31 established, the MER is annualized from the date of inception to the June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, end of the period. We may have waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of 2019 2018 2017 2016 2015 2014 expenses absorbed or waived is at the discretion of and can be Net assets per unit, terminated at any time by us. beginning of period (2) $9.59 $10.21 $9.95 $9.89 $9.99 $9.97 The Fund may invest in units of other mutual funds and pooled Increase funds. You should note that in addition to the fees and expenses (decrease) from paid by the Fund, these other funds have their own operating operations: expenses to pay. The Fund will effectively bear the operating Total revenue 0.27 0.48 0.43 0.45 0.50 0.45 expenses of the other funds in proportion to its holdings in the other funds. However, the Fund will not invest in units of other funds if the Totalexpenses––––(0.01)(0.01) Fund would be required to pay any management fees in respect of Realized gains (losses) (0.05) (0.04) – (0.01) (0.01) 0.03 such investments. In addition, the Fund will not make investments in Unrealized gains other funds if the Fund would be required to pay any sales or (losses) 0.32 (0.60) 0.22 0.08 (0.18) (0.04) redemption fees in respect of such investments that duplicate a fee Total increase payable by unitholders of the Fund. Further, the Fund will not invest (decrease) from in units of other funds if any sales or redemption fees are payable in operations (2) $0.54 $(0.16) $0.65 $0.52 $0.30 $0.43 respect of such investments. (6) The trading expense ratio represents total commissions and other Distributions to portfolio transaction costs expressed as an annualized percentage of unitholders: daily average net asset value during the financial period. From net investment income (excluding (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s dividends) (0.27) (0.48) (0.42) (0.45) (0.48) (0.43) portfolio advisor manages its portfolio investments. A portfolio From dividends –––––– turnover rate of 100% is equivalent to the Fund buying and selling all From capital gains – – – (0.01) – (0.03) of the securities in its portfolio once in the course of the period. The higher the Fund’s portfolio turnover rate in a period, the greater the Returnofcapital–––––– trading costs payable by the Fund in the period, and the greater the Total annual chance of an investor receiving taxable capital gains in the period. distributions (2,3) $(0.27) $(0.48) $(0.42) $(0.46) $(0.48) $(0.46) There is not necessarily a relationship between a high turnover rate and the performance of the Fund. The rate is calculated based on Net assets per unit, the lesser of purchases or sales of securities divided by the average end of period (2) $9.87 $9.59 $10.21 $9.95 $9.89 $9.99 weighted market value of the portfolio securities, excluding short-term securities. Ratios and Supplemental Data Management Fees June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, For the six months ended June 30, 2019, the Fund did not pay 2019 2018 2017 2016 2015 2014 management fees. You pay us, HSBC Investment Funds (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or Net Asset Value (in your approved advisor a management fee that is based on the 000s) (4) $305,014 $317,346 $296,366 $224,875 $213,141 $160,898 amount you have invested with us or your approved advisor Number of units (which may be subject to certain minimum annual fees). It is outstanding (in 000s) (4) 30,915 33,100 29,015 22,611 21,562 16,105 negotiated between you and us, HSBC Investment Funds Management expense ratio ("MER") (5) 0.24% 0.20% 0.18% 0.18% 0.16% 0.24% (Canada) Inc. or your approved advisor. Further details can be MER before waivers or found in the Fund’s Simplified Prospectus. absorptions (5) 0.24% 0.20% 0.18% 0.18% 0.16% 0.24% Management fees paid to us were used to pay costs for Trading expense managing the investment portfolio, providing investment ratio (6) n/a n/a n/a n/a n/a n/a analysis and recommendations, making investment decisions, Portfolio turnover making brokerage arrangements for the purchase and sale of rate (7) 6.18% 7.05% 4.47% 10.99% 5.99% 10.08% Net Asset Value per the investment portfolio and providing other services. The unit (4) $9.87 $9.59 $10.21 $9.95 $9.89 $9.99 management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales (1) This information is derived from the Fund’s unaudited semi-annual representatives and registered dealers and brokers, including financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, assets per unit presented in the financial statements is the same as for units of the Fund bought and held by unitholders. Finally, we the net asset value calculated for fund pricing purposes. used management fees to pay for additional marketing and (2) Net assets per unit and distributions per unit are based on the actual distribution services to the Fund.

2 HSBC Emerging Markets Debt Pooled Fund

For the six months ended June 30, 2019, approximately 40% of Geographic> Mix the total management fees paid to us for all HSBC Pooled Funds Percentage were used to fund distribution costs. of NAV Past Performance Indonesia 9.55% The performance information shown assumes that all Mexico 7.69% distributions made by the Fund in the periods shown were Brazil 6.40% reinvested in additional securities of the Fund. The performance Turkey 4.59% information does not take into account management fees, sales, Russia 4.51% redemption, distribution, optional charges or expenses you may Colombia 3.65% be charged outside of the Fund or the effect of any income tax Argentina 3.48% you may have to pay as a result of your investment in the Fund South Africa 3.34% that would have reduced returns or performance. The Fund’s Saudi Arabia 2.02% past performance does not necessarily indicate how it will Oman 1.74% perform in the future. Chile 1.55% Hungary 1.54% Year-by-Year Returns Sri Lanka 1.42% The following bar chart shows the Fund’s annual performance China 1.25% for the six-month period ended June 30, 2019, and for each of Qatar 1.25% the previous 12-month periods ended December 31. In Romania 1.13% percentage terms, the bar chart shows how much an India 1.08% investment made on the first day of each financial period would Peru 1.05% have grown or decreased by the last day of each Malaysia 0.99% financial period. Nigeria 0.96% Ghana 0.87% Returns British Virgin Islands 0.84% For the 12-month periods ended December 31 and the Morocco 0.79% six-month period ended June 30, 2019 Gabon 0.73% 20% Luxembourg 0.67% Dominican Republic 0.64% 14.5% 15% Egypt 0.59% Bahrain 0.53% 10% Ireland 0.53% 6.9% 5.8% 4.8% 5.2% Kazakhstan 0.48% 5% 3.8% Costa Rica 0.47% Lebanon 0.45% 0% Cayman Islands 0.44% -1.5% Singapore 0.44% -5% -2.6% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 Thailand 0.44% 2012 2013 2014 2015 2016 2017 2018 2019 Panama 0.43% United Arab Emirates 0.43% Summary of Investment Portfolio Venezuela 0.43% As at June 30, 2019 Ecuador 0.39% The Fund invests substantially all of its assets in the HSBC Ivory Coast 0.38% Emerging Markets Debt Fund – Institutional Series. The tables Poland 0.37% below give you a snapshot of the HSBC Emerging Markets Debt United States 0.37% Fund's investment on June 30, 2019. Ukraine 0.31% Philippines 0.29% Mongolia 0.28% Sector Mix Austria 0.25% Percentage Senegal 0.19% of NAV Croatia 0.18% Mauritius 0.17% Government Bonds 57.93% United Kingdom 0.16% Energy 8.05% Serbia 0.15% Financials 2.41% Paraguay 0.12% Materials 2.24% Zambia 0.11% Utilities 1.94% El Salvador 0.10% Communication Services 0.54% Bermuda 0.07% Industrials 0.24% Netherlands 0.07% Health Care 0.06% Jamaica 0.06% Cash & Equivalents 26.59% Cash & Equivalents 26.59% Total 100.00%

3 HSBC Emerging Markets Debt Pooled Fund

Geographic Mix Percentage of NAV

Total 100.00%

Top 25 Holdings Percentage of NAV

United States Treasury Bill, 2.37%, 10/24/2019 6.76% United States Treasury Bill, 2.39%, 09/26/2019 6.23% United States Treasury Bill, 2.46%, 08/29/2019 5.14% Brazil Letras do Tesouro Nacional, 0.00%, 01/01/2020 2.55% Colombian TES, 11.00%, 07/24/2020 2.02% Egypt Treasury Bills, 17.55%, 03/17/2020 1.45% Brazil Notas do Tesouro Nacional, Serie F, 10.00%, 01/01/2021 1.41% Saudi Government International Bond, 4.50%, 10/26/2046 1.40% South Africa Government Bond, 7.00%, 02/28/2031 1.18% Egypt Treasury Bills, 17.36%, 01/21/2020 1.16% Argentine Republic Government International Bond, 5.63%, 01/26/2022 1.03% Indonesia Government International Bond, 4.35%, 01/08/2027 0.94% Mexico Government International Bond, 4.50%, 04/22/2029 0.92% Indonesia Treasury Bond, 8.25%, 07/15/2021 0.91% Mexican Bonos, 5.75%, 03/05/2026 0.89% Argentine Republic Government International Bond, 6.88%, 01/11/2048 0.86% Russian Federal Bond - OFZ, 6.40%, 05/27/2020 0.82% Peru Government International Bond, 6.35%, 08/12/2028 0.80% Sri Lanka Government International Bond, 6.75%, 04/18/2028 0.79% Brazil Notas do Tesouro Nacional, Serie F, 10.00%, 01/01/2023 0.77% Bonos de la Tesoreria de la Republica en pesos, 4.50%, 03/01/2026 0.74% Indonesia Treasury Bond, 5.63%, 05/15/2023 0.74% United States Treasury Bill, 2.46%, 08/15/2019 0.73% Indonesia Treasury Bond, 6.13%, 05/15/2028 0.72% Petroleos Mexicanos, 6.88%, 08/04/2026 0.69% Total of Top 25 Holdings 41.65%

4 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents at no cost by calling us 3 Floor, 885 West Georgia Street toll-free at 1-888-390-3333, contacting your authorized Vancouver, BC V6C 3E8 dealer or visiting our website Toronto at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Canadian Dividend Pooled Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Canadian Dividend Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the performers in the energy and consumer discretionary sectors, Fund; we, us and our refer to HSBC Global Asset Management this was more than offset by underweight positioning in the (Canada) Limited; and the Fund refers to the HSBC Canadian information technology and health care sectors. Dividend Pooled Fund. Recent Developments We are the manager, trustee and primary investment advisor of Global growth continues be positive, with the economy showing the Fund. improving momentum in both the US and China despite Introduction ongoing trade tensions. Strong employment, low interest rates and reasonable corporate profits continue to provide a positive This Interim Management Report of Fund Performance contains backdrop for growth in both the US and Canada. Although financial highlights but does not contain either the semi-annual growth is softer in the rest of the developed world, it is financial report or annual financial statements of the investment supported by expansive policy that should prevent further fund. You may obtain a copy of the Fund’s semi-annual financial deterioration. report or annual financial statements at your request, at no cost, by calling us toll-free at 1-888-390-3333, by visiting our website The Canadian economy has also been expanding positively from at www.assetmanagement.hsbc.ca, by visiting the SEDAR consumer spending and business investment, although it has website at www.sedar.com or by writing to us at: been negatively impacted by trade. Central banks in the US and Corporate Secretary Canada have strongly indicated that they are prepared to lower HSBC Global Asset Management (Canada) Limited rates in response to a growth slowdown. We foresee one to two 3rd Floor, 885 West Georgia Street cuts in the US and likely stable rates in Canada over the next 12 Vancouver, BC V6C 3E8 months. Inflation remains modest both globally and locally. You may also contact us using one of these methods to request a The outlook for Canadian equities remains relatively attractive copy of the Fund’s proxy voting policies and procedures, proxy compared to bonds. Gains in earnings are moderating after a voting disclosure record or quarterly statement of investment few very strong years, and we foresee mid-single-digit gains in portfolio. both 2019 and 2020.

Results of Operations Related Party Transactions As of June 30, 2019, the Fund's net assets increased by 14.4% We, on behalf of the Fund, in our role as fund manager, may, to $332.8 million from $290.9 million at the end of 2018. Positive from time to time, enter into transactions or arrangements with investment performance, partially offset by net withdrawals, or involving other members of the HSBC Group or other people resulted in an overall increase in net asset value. or companies related or connected to us or the Fund. To proceed with the transactions, the Fund relies on the positive Investment Performance recommendation of the Fund’s Independent Review Committee. A The HSBC Canadian Dividend Pooled Fund rose 15.01% for the condition of this positive recommendation is that the transactions six months ending June 30, 2019, while the benchmark are performed in accordance with our policy on Related Party S&P/TSX Capped Composite Index rose 16.22% over the same Transactions. For more general information on persons related to period. The Fund’s returns are after the deduction of fees and the Fund and the types of potential transactions, see the Fund’s expenses, while the benchmark’s returns do not include any Simplified Prospectus. costs of investing. The market had two faces in the first half of 2019. After a strong The following is a summary of current transactions and start early in the year that reversed losses incurred in 2018, arrangements with entities that are related to us or the Fund. sentiment was challenged as escalating US-China trade tensions spurred volatility. However, continued global policy Manager, Trustee and Investment Advisor We are the manager, trustee and primary investment advisor of support and the expectation of significant rate cuts in the US continued to push equity markets higher. Over the first half of the Fund. As manager, we manage the overall business and the year, global equities gained 11.9%, US markets gained operations of the Fund. As trustee, we hold legal title to the 17.3% and the Canadian market posted a solid 16.2% return. property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio The Fund lagged its benchmark primarily due to underweight management services to the Fund. We receive a fee from the positions in health care and information technology. We Fund for these services based on assets under management, maintained overweight positions in energy, financials, consumer calculated daily and paid monthly. staples and consumer discretionary stocks and underweight positions in health care, materials, information technology and industrials. Although security selection was positive, with strong

1 HSBC Canadian Dividend Pooled Fund

Distribution Services HSBC Canadian Dividend Pooled Fund – Net The Fund is distributed through us and HSBC Investment Funds Assets per Unit(1) (Canada) Inc. (our wholly owned subsidiary). We may pay Period ended June 30, 2019, and years ended December 31 distribution and servicing fees to our related party distributor June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, based on the value of the units held in the investor’s account, 2019 2018 2017 2016 2015 2014 and additionally, in some cases, on the amount of the Net assets per unit, initial purchase. beginning of period (2) $25.87 $29.24 $27.00 $22.52 $24.33 $22.16 Increase Purchases of Securities Underwritten by a Related Party (decrease) from The Fund may invest in certain securities that are underwritten, operations: in whole or in part, by entities that are a related party to us. To Total revenue 0.47 0.85 0.78 0.73 0.74 0.67 Total expenses (0.01) (0.01) (0.02) (0.01) (0.01) (0.02) proceed with these transactions, the Fund relies on the approval Realized gains (losses) 0.24 0.99 0.41 0.57 0.04 0.10 of the Fund’s Independent Review Committee by way of Unrealized gains Standing Instruction. A condition of this approval is that the (losses) 3.15 (4.26) 1.84 3.96 (1.95) 1.93 transactions are performed in accordance with our policy on Total increase Purchases of Securities Underwritten by a Related Party. During (decrease) from operations (2) $3.85 $(2.43) $3.01 $5.25 $(1.18) $2.68 the period, the Fund did not invest in any such securities. Distributions to Financial Highlights unitholders: From net investment The following tables show selected key financial information income (excluding about the Fund and are intended to help you understand the dividends) – – – (0.03) (0.03) (0.04) Fund’s financial performance for the six-month period ended From dividends (0.48) (0.81) (0.75) (0.73) (0.64) (0.56) June 30, 2019, and for the last five years ended December 31, From capital gains – – – – – – Return of capital – – – – – – as applicable. In the year a fund is established, “period” Total annual represents the period from inception to December 31 or June 30 distributions (2,3) $(0.48) $(0.81) $(0.75) $(0.76) $(0.67) $(0.60) of that fiscal year, as applicable. This information is derived from Net assets per unit, the Fund’s unaudited semi-annual financial statements and the end of period (2) $29.26 $25.87 $29.24 $27.00 $22.52 $24.33 audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net Ratios and Supplemental Data assets from operations being based on average units June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, outstanding during the period and all other numbers being 2019 2018 2017 2016 2015 2014 based on actual units outstanding at the relevant point in time. Net Asset Value (in 000s) (4) $332,793 $290,862 $332,994 $283,296 $265,197 $234,242 Number of units outstanding (in 000s) (4) 11,374 11,245 11,390 10,494 11,777 9,630 Management expense ratio ("MER") (5) 0.07% 0.05% 0.06% 0.05% 0.06% 0.07% MER before waivers or absorptions (5) 0.07% 0.05% 0.06% 0.05% 0.06% 0.07% Trading expense ratio (6) 0.03% 0.03% 0.03% 0.03% 0.04% 0.04% Portfolio turnover rate (7) 9.19% 19.65% 12.87% 9.78% 11.55% 13.27% Net Asset Value per unit (4) $29.26 $25.87 $29.24 $27.00 $22.52 $24.33 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All

2 HSBC Canadian Dividend Pooled Fund

balances are stated in accordance with IFRS. Under IFRS, the net Management fees paid to us were used to pay costs for assets per unit presented in the financial statements is the same as managing the investment portfolio, providing investment the net asset value calculated for fund pricing purposes. analysis and recommendations, making investment decisions, (2) Net assets per unit and distributions per unit are based on the actual making brokerage arrangements for the purchase and sale of number of units outstanding at the relevant time. The increase/ the investment portfolio and providing other services. The decrease in net assets from operations per unit is based on the management fees also funded commission payments and other weighted average number of units outstanding over the financial period. compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including (3) Distributions are automatically reinvested in additional units of the HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. for units of the Fund bought and held by unitholders. Finally, we used management fees to pay for additional marketing and (4) This information is provided as at period-end of the year shown. distribution services to the Fund. (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for For the six months ended June 30, 2019, approximately 40% of the stated period and is expressed as an annualized percentage of the total management fees paid to us for all HSBC Pooled Funds daily average net asset value during the period. In the year a Fund is were used to fund distribution costs. established, the MER is annualized from the date of inception to the end of the period. We may have waived or absorbed certain fees Past Performance and expenses otherwise payable by the Fund. The amount of The performance information shown assumes that all expenses absorbed or waived is at the discretion of and can be terminated at any time by us. distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance The Fund may invest in units of other mutual funds and pooled information does not take into account management fees, sales, funds. You should note that in addition to the fees and expenses redemption, distribution, optional charges or expenses you may paid by the Fund, these other funds have their own operating expenses to pay. The Fund will effectively bear the operating be charged outside of the Fund or the effect of any income tax expenses of the other funds in proportion to its holdings in the other you may have to pay as a result of your investment in the Fund funds. However, the Fund will not invest in units of other funds if the that would have reduced returns or performance. The Fund’s Fund would be required to pay any management fees in respect of past performance does not necessarily indicate how it will such investments. In addition, the Fund will not make investments in perform in the future. other funds if the Fund would be required to pay any sales or redemption fees in respect of such investments that duplicate a fee Year-by-Year Returns payable by unitholders of the Fund. Further, the Fund will not invest The following bar chart shows the Fund’s annual performance in units of other funds if any sales or redemption fees are payable in respect of such investments. for the six-month period ended June 30, 2019, and for each of the previous 12-month periods ended December 31. In (6) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of percentage terms, the bar chart shows how much an daily average net asset value during the financial period. investment made on the first day of each financial period would have grown or decreased by the last day of each (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. 40% There is not necessarily a relationship between a high turnover rate 30.5% and the performance of the Fund. The rate is calculated based on 30% 23.6% the lesser of purchases or sales of securities divided by the average 19.5% 20% 15.0% weighted market value of the portfolio securities, excluding 12.6% 12.2% 10.1% 11.2% short-term securities. 10% Management Fees 0% For the six months ended June 30, 2019, the Fund did not pay -10% -5.3% -4.7% management fees. You pay us, HSBC Investment Funds -8.9% -20% (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 your approved advisor a management fee that is based on the 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 amount you have invested with us or your approved advisor (which may be subject to certain minimum annual fees). It is negotiated between you and us, HSBC Investment Funds (Canada) Inc. or your approved advisor. Further details can be found in the Fund’s Simplified Prospectus.

3 HSBC Canadian Dividend Pooled Fund

Summary of Investment Portfolio Top 25 Holdings As at June 30, 2019 Percentage of NAV

Royal Bank of Canada 7.45% Asset Mix Toronto-Dominion Bank 6.78% Percentage Canadian National Railway Co. 4.72% of NAV Bank of Nova Scotia 4.54% Canadian Equities 96.61% Enbridge Inc. 4.17% Investment Funds 1.55% Brookfield Asset Management Inc. 3.86% Cash & Equivalents 1.84% Suncor Energy Inc. 3.79% Total 100.00% Bank of Montreal 3.29% Alimentation Couche-Tard Inc., Class B 3.22% Manulife Financial Corp. 3.21% Sector Mix Canadian Pacific Railway Ltd. 2.83% Percentage Nutrien Ltd. 2.83% of NAV TC Energy Corp. 2.80% Financials 33.03% Dollarama Inc. 2.43% Energy 18.78% TELUS Corp. 2.11% Industrials 9.24% Canadian Natural Resources Ltd. 2.00% Materials 9.16% Shaw Communications Inc., Class B 1.95% Consumer Discretionary 5.76% Loblaw Cos., Ltd. 1.91% Consumer Staples 5.54% Government of Canada 1.90% Communication Services 5.48% Sun Life Financial Inc. 1.88% Utilities 4.41% Canadian Imperial Bank of Commerce 1.86% Information Technology 2.70% Brookfield Infrastructure Partners LP 1.82% Real Estate 2.51% Pembina Pipeline Corp. 1.80% Investment Funds 1.55% CCL Industries Inc. 1.72% Cash & Equivalents 1.84% HSBC Mortgage Fund - Institutional Series 1.55% Total 100.00% Total of Top 25 Holdings 76.42%

4 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents at no cost by calling us 3 Floor, 885 West Georgia Street toll-free at 1-888-390-3333, contacting your authorized Vancouver, BC V6C 3E8 dealer or visiting our website Toronto at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg. Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Canadian Equity Pooled Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Canadian Equity Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the within the major sectors of the market. Overweight sector Fund; we, us and our refer to HSBC Global Asset Management positions include energy, consumer and information technology, (Canada) Limited; and the Fund refers to the HSBC Canadian and underweight positions are held in the utilities, health care, Equity Pooled Fund. real estate, materials and industrials sectors. We are the manager, trustee and primary investment advisor of Recent Developments the Fund. While the global macro picture is less robust than it has been Introduction over the previous few years, it remains quite positive with strong employment, low interest rates and reasonable corporate This Interim Management Report of Fund Performance contains profits. We also expect accommodative central bank policy to financial highlights but does not contain either the semi-annual help mitigate any slowdown in the global economy. financial report or annual financial statements of the investment fund. You may obtain a copy of the Fund’s semi-annual financial Canada’s economy is emerging from a soft patch as indicators report or annual financial statements at your request, at no cost, have improved. Positive earnings – combined with relatively by calling us toll-free at 1-888-390-3333, by visiting our website attractive valuations compared to bonds – are contributing to a at www.assetmanagement.hsbc.ca, by visiting the SEDAR positive environment for Canadian equities. Although gains in website at www.sedar.com or by writing to us at: earnings are moderating after a few very strong years, we still Corporate Secretary foresee mid-single-digit gains in both 2019 and 2020 compared HSBC Global Asset Management (Canada) Limited toa14%risein2018. rd 3 Floor, 885 West Georgia Street We are noticing an increasing divergence of performance and Vancouver, BC V6C 3E8 valuation in the market, with quality, defensive and high-growth You may also contact us using one of these methods to request a names reaching new highs while their cyclical counterparts copy of the Fund’s proxy voting policies and procedures, proxy appear to have less support. However, the strategic positioning voting disclosure record or quarterly statement of investment and management of the Fund remains unchanged. We continue portfolio. to look for opportunities to achieve strong risk-adjusted returns with a disciplined valuation approach. Results of Operations As of June 30, 2019, the Fund's net assets increased by 18.0% Related Party Transactions to $1,004.1 million from $851.2 million at the end of 2018. Net We, on behalf of the Fund, in our role as fund manager, may, contributions and positive investment performance resulted in from time to time, enter into transactions or arrangements with an overall increase in net asset value. or involving other members of the HSBC Group or other people or companies related or connected to us or the Fund. To proceed Investment Performance with the transactions, the Fund relies on the positive The HSBC Canadian Equity Pooled Fund rose 15.53% for the six recommendation of the Fund’s Independent Review Committee. A months ending June 30, 2019, while the benchmark S&P/TSX condition of this positive recommendation is that the transactions Capped Composite Index rose 16.22% over the same period. are performed in accordance with our policy on Related Party The Fund’s returns are after the deduction of fees and expenses, Transactions. For more general information on persons related to while the benchmark’s returns do not include any costs of the Fund and the types of potential transactions, see the Fund’s investing. Simplified Prospectus. The market had two faces in the first half of 2019. After a strong start early in the year that reversed losses incurred in 2018, The following is a summary of current transactions and sentiment was challenged as escalating US-China trade arrangements with entities that are related to us or the Fund. tensions spurred volatility. However, continued global policy support and the expectation of significant rate cuts in the US Manager, Trustee and Investment Advisor continued to push equity markets higher. Over the first half of We are the manager, trustee and primary investment advisor of the year, global equities gained 11.9%, the US market gained the Fund. As manager, we manage the overall business and 17.3% and the Canadian market posted a solid 16.2% return, led operations of the Fund. As trustee, we hold legal title to the by the information technology, health care, industrial and property of the Fund on your behalf. As primary investment utilities sectors. advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Although the Fund had a positive return, it lagged its benchmark Fund for these services based on assets under management, primarily due to the negative impact of security selection in the calculated daily and paid monthly. information technology sector and an underweight position in health care. The portfolio remains well diversified across and

1 HSBC Canadian Equity Pooled Fund

Distribution Services HSBC Canadian Equity Pooled Fund – Net The Fund is distributed through us and HSBC Investment Funds Assets per Unit(1) (Canada) Inc. (our wholly owned subsidiary). We may pay Period ended June 30, 2019, and years ended December 31 distribution and servicing fees to our related party distributor June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, based on the value of the units held in the investor’s account, 2019 2018 2017 2016 2015 2014 and additionally, in some cases, on the amount of the Net assets per unit, initial purchase. beginning of period (2) $43.15 $49.54 $45.43 $37.75 $40.75 $36.44 Increase Purchases of Securities Underwritten by a Related Party (decrease) from The Fund may invest in certain securities that are underwritten, operations: in whole or in part, by entities that are a related party to us. To Total revenue 0.74 1.39 1.19 1.12 1.12 1.03 Total expenses (0.01) (0.02) (0.02) (0.02) (0.02) (0.02) proceed with these transactions, the Fund relies on the approval Realized gains (losses) (0.09) 1.67 0.71 0.90 0.05 0.13 of the Fund’s Independent Review Committee by way of Unrealized gains Standing Instruction. A condition of this approval is that the (losses) 5.98 (7.21) 3.36 6.86 (3.46) 3.92 transactions are performed in accordance with our policy on Total increase Purchases of Securities Underwritten by a Related Party. During (decrease) from operations (2) $6.62 $(4.17) $5.24 $8.86 $(2.31) $5.06 the period, the Fund did not invest in any such securities. Distributions to Financial Highlights unitholders: From net investment The following tables show selected key financial information income (excluding about the Fund and are intended to help you understand the dividends) – – – – – (0.01) Fund’s financial performance for the six-month period ended From dividends – (1.35) (1.10) (1.19) (1.01) (0.86) June 30, 2019, and for the last five years ended December 31, From capital gains – (0.63) – – – – Return of capital – – – – – – as applicable. In the year a fund is established, “period” Total annual represents the period from inception to December 31 or June 30 distributions (2,3) $– $(1.98) $(1.10) $(1.19) $(1.01) $(0.87) of that fiscal year, as applicable. This information is derived from Net assets per unit, the Fund’s unaudited semi-annual financial statements and the end of period (2) $49.85 $43.15 $49.54 $45.43 $37.75 $40.75 audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net Ratios and Supplemental Data assets from operations being based on average units June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, outstanding during the period and all other numbers being 2019 2018 2017 2016 2015 2014 based on actual units outstanding at the relevant point in time. Net Asset Value (in 000s) (4) $1,004,110 $851,171 $917,100 $740,780 $645,901 $507,687 Number of units outstanding (in 000s) (4) 20,141 19,725 18,512 16,306 17,110 12,460 Management expense ratio ("MER") (5) 0.05% 0.03% 0.04% 0.04% 0.05% 0.05% MER before waivers or absorptions (5) 0.05% 0.03% 0.04% 0.04% 0.05% 0.05% Trading expense ratio (6) 0.03% 0.04% 0.04% 0.03% 0.03% 0.05% Portfolio turnover rate (7) 9.37% 20.89% 13.87% 9.72% 10.19% 14.37% Net Asset Value per unit (4) $49.85 $43.15 $49.54 $45.43 $37.75 $40.75 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All

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balances are stated in accordance with IFRS. Under IFRS, the net For the six months ended June 30, 2019, approximately 40% of assets per unit presented in the financial statements is the same as the total management fees paid to us for all HSBC Pooled Funds the net asset value calculated for fund pricing purposes. were used to fund distribution costs. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding at the relevant time. The increase/ Past Performance decrease in net assets from operations per unit is based on the The performance information shown assumes that all weighted average number of units outstanding over the financial period. distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance (3) Distributions are automatically reinvested in additional units of the Fund, unless the unitholder withdraws from the automatic information does not take into account management fees, sales, reinvestment plan by providing written notice to us. redemption, distribution, optional charges or expenses you may (4) This information is provided as at period-end of the year shown. be charged outside of the Fund or the effect of any income tax (5) Management expense ratio is based on total expenses (excluding you may have to pay as a result of your investment in the Fund distributions, commissions and other portfolio transaction costs) for that would have reduced returns or performance. The Fund’s the stated period and is expressed as an annualized percentage of past performance does not necessarily indicate how it will daily average net asset value during the period. In the year a Fund is perform in the future. established, the MER is annualized from the date of inception to the end of the period. We may have waived or absorbed certain fees Year-by-Year Returns and expenses otherwise payable by the Fund. The amount of The following bar chart shows the Fund’s annual performance expenses absorbed or waived is at the discretion of and can be terminated at any time by us. for the six-month period ended June 30, 2019, and for each of the previous 12-month periods ended December 31. In (6) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of percentage terms, the bar chart shows how much an daily average net asset value during the financial period. investment made on the first day of each financial period would (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s have grown or decreased by the last day of each portfolio advisor manages its portfolio investments. A portfolio financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 40% and the performance of the Fund. The rate is calculated based on 30% 28.5% the lesser of purchases or sales of securities divided by the average 23.5% weighted market value of the portfolio securities, excluding 20% 17.5% 15.5% short-term securities. 13.5% 14.2% 9.3% 11.5% 10% Management Fees 0% For the six months ended June 30, 2019, the Fund did not pay management fees. You pay us, HSBC Investment Funds -10% -4.9% -9.7% -8.8% (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or -20% your approved advisor a management fee that is based on the Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 amount you have invested with us or your approved advisor 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (which may be subject to certain minimum annual fees). It is negotiated between you and us, HSBC Investment Funds (Canada) Inc. or your approved advisor. Further details can be found in the Fund’s Simplified Prospectus. Management fees paid to us were used to pay costs for managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, for units of the Fund bought and held by unitholders. Finally, we used management fees to pay for additional marketing and distribution services to the Fund.

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Summary of Investment Portfolio As at June 30, 2019

Sector Mix Percentage of NAV

Financials 32.15% Energy 19.46% Materials 10.41% Industrials 9.68% Consumer Discretionary 5.97% Information Technology 5.70% Consumer Staples 5.63% Communication Services 4.92% Utilities 2.40% Real Estate 1.41% Cash & Equivalents 2.27% Total 100.00%

Top 25 Holdings Percentage of NAV

Royal Bank of Canada 7.23% Toronto-Dominion Bank 6.69% Canadian National Railway Co. 4.85% Bank of Nova Scotia 4.66% Enbridge Inc. 4.41% Brookfield Asset Management Inc., Class A 4.09% Suncor Energy Inc. 3.95% Alimentation Couche-Tard Inc., Class B 3.47% Nutrien Ltd. 3.08% Manulife Financial Corp. 2.99% Canadian Pacific Railway Ltd. 2.93% Bank of Montreal 2.86% TC Energy Corp. 2.81% Dollarama Inc. 2.61% CGI Inc. 2.22% Government of Canada, 1.65%, 08/22/2019 2.19% Open Text Corp. 2.15% Canadian Natural Resources Ltd. 2.10% Canadian Imperial Bank of Commerce 1.93% CCL Industries Inc. 1.85% Loblaw Cos., Ltd. 1.83% TELUS Corp. 1.81% Shaw Communications Inc., Class B 1.75% Imperial Oil Ltd. 1.57% Pembina Pipeline Corp. 1.55% Total of Top 25 Holdings 77.58%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

4 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents at no cost by calling us 3 Floor, 885 West Georgia Street toll-free at 1-888-390-3333, contacting your authorized Vancouver, BC V6C 3E8 dealer or visiting our website Toronto at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Canadian Small Cap Equity Pooled Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Canadian Small Cap Equity Pooled Fund

We are the manager, trustee and primary investment advisor of Most sectors in the S&P/TSX SmallCap Index participated in the the Fund. We have hired Mawer Investment Management rebound alongside risky assets globally. The most notable Limited and Triasima Portfolio Management Inc. as sub-advisors exception was the energy sector, which continues to face a to provide portfolio management and investment advisory significantly challenged environment in Canada. services to the Fund. For an explanation of the relationship The Fund outperformed its benchmark, with stock selection and between us and the sub-advisors, see the section Selection of sector allocation both contributing to performance. Stock Sub-Advisors in the Fund’s Simplified Prospectus. selection in the energy and real estate sectors had the strongest impact on performance, while the Fund benefited from a lower Introduction exposure to the underperforming energy sector than This Interim Management Report of Fund Performance contains its benchmark. financial highlights but does not contain either the semi-annual financial report or annual financial statements of the investment Recent Developments fund. You may obtain a copy of the Fund’s semi-annual financial The materials sector contributed the most to benchmark report or annual financial statements at your request, at no cost, performance during the period. The appeal of gold has improved by calling us toll-free at 1-888-390-3333, by visiting our website due to a fall in interest rates and a possible peak in the value of at www.assetmanagement.hsbc.ca, by visiting the SEDAR the US dollar. However, the materials’ sector breadth is fairly website at www.sedar.com or by writing to us at: deep and yielded handsome returns in subsectors that include precious metals, copper and paper packaging. Corporate Secretary HSBC Global Asset Management (Canada) Limited Conversely, the energy and health care sectors underperformed. As the price of oil and natural gas declined, so did the stock 3rd Floor, 885 West Georgia Street price of energy sector names. Small cap investors appeared Vancouver, BC V6C 3E8 disinterested in this sector because of ongoing pipeline issues You may also contact us using one of these methods to request a and burdensome regulation. Capital has fled to other areas of copy of the Fund’s proxy voting policies and procedures, proxy the market, broadly speaking. voting disclosure record or quarterly statement of investment portfolio. Related Party Transactions We, on behalf of the Fund, in our role as fund manager, may, Results of Operations from time to time, enter into transactions or arrangements with As of June 30, 2019, the Fund's net assets increased by 19.6% or involving other members of the HSBC Group or other people to $94.1 million from $78.7 million at the end of 2018. Net or companies related or connected to us or the Fund. To proceed contributions and positive investment performance resulted in with the transactions, the Fund relies on the positive an overall increase in net asset value. recommendation of the Fund’s Independent Review Committee. A condition of this positive recommendation is that the transactions Investment Performance are performed in accordance with our policy on Related Party The HSBC Canadian Small Cap Equity Pooled Fund rose 16.32% Transactions. For more general information on persons related to for the six months ending June 30, 2019, while the benchmark the Fund and the types of potential transactions, see the Fund’s S&P/TSX SmallCap Index (C$) rose 10.42% over the same Simplified Prospectus. period. The Fund’s returns are after the deduction of fees and The following is a summary of current transactions and expenses, while the benchmark’s returns do not include any arrangements with entities that are related to us or the Fund. costs of investing. Manager, Trustee and Investment Advisor Despite concerns over global growth and trade tensions We are the manager, trustee and primary investment advisor of between the US and China, changing central bank rhetoric has the Fund. As manager, we manage the overall business and fuelled a 180-degree reversal in investor psychology and operations of the Fund. As trustee, we hold legal title to the propelled global equity markets higher since the beginning of property of the Fund on your behalf. As primary investment the year. Most notably, the US Federal Reserve seemed to advisor, we provide investment advice and portfolio confirm the market’s expectation that it could consider rate cuts management services to the Fund. We receive a fee from the later this year, causing a gold and bond rally and sending the US Fund for these services based on assets under management, calculated daily and paid monthly.

1 HSBC Canadian Small Cap Equity Pooled Fund

Distribution Services HSBC Canadian Small Cap Equity Pooled Fund The Fund is distributed through us and HSBC Investment Funds – Net Assets per Unit(1) (Canada) Inc. (our wholly owned subsidiary). We may pay Period ended June 30, 2019, and years ended December 31 distribution and servicing fees to our related party distributor June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, based on the value of the units held in the investor’s account, 2019 2018 2017 2016 2015 2014 and additionally, in some cases, on the amount of the Net assets per unit, initial purchase. beginning of period (2) $49.71 $58.79 $55.91 $47.44 $46.16 $44.45 Increase Purchases of Securities Underwritten by a Related Party (decrease) from The Fund may invest in certain securities that are underwritten, operations: in whole or in part, by entities that are a related party to us. To Total revenue 0.51 1.02 1.05 1.01 1.08 0.97 Total expenses (0.03) (0.07) (0.09) (0.06) (0.08) (0.09) proceed with these transactions, the Fund relies on the approval Realized gains (losses) 2.05 (0.12) 1.33 4.09 2.33 2.97 of the Fund’s Independent Review Committee by way of Unrealized gains Standing Instruction. A condition of this approval is that the (losses) 5.52 (8.92) 1.58 5.35 (1.28) (0.56) transactions are performed in accordance with our policy on Total increase Purchases of Securities Underwritten by a Related Party. During (decrease) from operations (2) $8.05 $(8.09) $3.87 $10.39 $2.05 $3.29 the period, the Fund did not invest in any such securities. Distributions to Financial Highlights unitholders: From net investment The following tables show selected key financial information income (excluding about the Fund and are intended to help you understand the dividends) – – – – – – Fund’s financial performance for the six-month period ended From dividends – (0.89) (0.92) (1.01) (0.96) (0.81) June 30, 2019, and for the last five years ended December 31, From capital gains – (0.24) – (0.60) – (0.72) Return of capital – – – – – – as applicable. In the year a fund is established, “period” Total annual represents the period from inception to December 31 or June 30 distributions (2,3) $– $(1.13) $(0.92) $(1.61) $(0.96) $(1.53) of that fiscal year, as applicable. This information is derived from Net assets per unit, the Fund’s unaudited semi-annual financial statements and the end of period (2) $57.82 $49.71 $58.79 $55.91 $47.44 $46.16 audited annual financial statements. The information in the following tables is based on prescribed regulations, and as a result, is not expected to add due to the increase/decrease in net Ratios and Supplemental Data assets from operations being based on average units June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, outstanding during the period and all other numbers being 2019 2018 2017 2016 2015 2014 based on actual units outstanding at the relevant point in time. Net Asset Value (in 000s) (4) $94,139 $78,715 $81,015 $69,447 $61,140 $55,865 Number of units outstanding (in 000s) (4) 1,628 1,584 1,378 1,242 1,289 1,210 Management expense ratio ("MER") (5) 0.15% 0.12% 0.16% 0.11% 0.17% 0.19% MER before waivers or absorptions (5) 0.15% 0.12% 0.16% 0.11% 0.17% 0.19% Trading expense ratio (6) 0.11% 0.21% 0.16% 0.17% 0.16% 0.18% Portfolio turnover rate (7) 20.99% 51.42% 40.77% 44.15% 46.11% 43.30% Net Asset Value per unit (4) $57.82 $49.71 $58.79 $55.91 $47.44 $46.16 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All

2 HSBC Canadian Small Cap Equity Pooled Fund

balances are stated in accordance with IFRS. Under IFRS, the net For the six months ended June 30, 2019, approximately 40% of assets per unit presented in the financial statements is the same as the total management fees paid to us for all HSBC Pooled Funds the net asset value calculated for fund pricing purposes. were used to fund distribution costs. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding at the relevant time. The increase/ Past Performance decrease in net assets from operations per unit is based on the The performance information shown assumes that all weighted average number of units outstanding over the distributions made by the Fund in the periods shown were financial period. reinvested in additional securities of the Fund. The performance (3) Distributions are automatically reinvested in additional units of the information does not take into account management fees, sales, Fund, unless the unitholder withdraws from the automatic redemption, distribution, optional charges or expenses you may reinvestment plan by providing written notice to us. be charged outside of the Fund or the effect of any income tax (4) This information is provided as at period-end of the year shown. you may have to pay as a result of your investment in the Fund (5) Management expense ratio is based on total expenses (excluding that would have reduced returns or performance. The Fund’s distributions, commissions and other portfolio transaction costs) for past performance does not necessarily indicate how it will the stated period and is expressed as an annualized percentage of perform in the future. daily average net asset value during the period. In the year a Fund is established, the MER is annualized from the date of inception to the end of the period. We may have waived or absorbed certain fees Year-by-Year Returns and expenses otherwise payable by the Fund. The amount of The following bar chart shows the Fund’s annual performance expenses absorbed or waived is at the discretion of and can be for the six-month period ended June 30, 2019, and for each of terminated at any time by us. the previous 12-month periods ended December 31. In (6) The trading expense ratio represents total commissions and other percentage terms, the bar chart shows how much an portfolio transaction costs expressed as an annualized percentage of investment made on the first day of each financial period would daily average net asset value during the financial period. have grown or decreased by the last day of each (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s financial period. portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all Returns of the securities in its portfolio once in the course of the period. The For the 12-month periods ended December 31 and the higher the Fund’s portfolio turnover rate in a period, the greater the six-month period ended June 30, 2019 trading costs payable by the Fund in the period, and the greater the 80% chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 60% 53.6% 49.4% and the performance of the Fund. The rate is calculated based on the lesser of purchases or sales of securities divided by the average 40% 26.3% weighted market value of the portfolio securities, excluding 18.0% 21.3% 20% 16.3% short-term securities. 7.3% 6.8% 1.3% 4.9% Management Fees 0% For the six months ended June 30, 2019, the Fund did not pay -20% -13.5% management fees. You pay us, HSBC Investment Funds -40% (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 your approved advisor a management fee that is based on the amount you have invested with us or your approved advisor (which may be subject to certain minimum annual fees). It is negotiated between you and us, HSBC Investment Funds (Canada) Inc. or your approved advisor. Further details can be found in the Fund’s Simplified Prospectus. Management fees paid to us were used to pay costs for managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, for units of the Fund bought and held by unitholders. Finally, we used management fees to pay for additional marketing and distribution services to the Fund.

3 HSBC Canadian Small Cap Equity Pooled Fund

Summary of Investment Portfolio As at June 30, 2019

Sector Mix Percentage of NAV

Industrials 18.65% Materials 16.47% Real Estate 12.77% Information Technology 10.81% Consumer Discretionary 10.50% Energy 9.30% Financials 8.94% Consumer Staples 2.72% Communication Services 2.60% Health Care 0.70% Utilities 0.53% Cash & Equivalents 6.01% Total 100.00%

Top 25 Holdings Percentage of NAV

Boyd Group Income Fund 4.15% MTY Food Group Inc. 3.84% Enghouse Systems Ltd. 3.60% Government of Canada, 1.67%, 08/08/2019 3.41% Stella-Jones Inc. 3.40% Altus Group Ltd. 3.21% Morneau Shepell Inc. 2.78% NFI Group Inc. 2.24% The Descartes Systems Group Inc. 2.22% Parkland Fuel Corp. 2.07% Equitable Group Inc. 1.99% Cogeco Inc. 1.90% Winpak Ltd. 1.90% Mainstreet Equity Corp. 1.88% Richelieu Hardware Ltd. 1.76% Sleep Country Canada Holdings Inc. 1.76% Recipe Unlimited Corp. 1.71% Canadian Western Bank 1.63% Jamieson Wellness Inc. 1.55% Richards Packaging Income Fund 1.55% Absolute Software Corp. 1.41% Dundee Precious Metals Inc. 1.39% FirstService Corp. 1.39% Stantec Inc. 1.37% Colliers International Group Inc. 1.33% Total of Top 25 Holdings 55.44%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

4 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents at no cost by calling us 3 Floor, 885 West Georgia Street toll-free at 1-888-390-3333, contacting your authorized Vancouver, BC V6C 3E8 dealer or visiting our website Toronto at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC U.S. Equity Pooled Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC U.S. Equity Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Stock selection in financials, industrials and consumer staples Fund; we, us and our refer to HSBC Global Asset Management contributed to performance, while selections in consumer (Canada) Limited; and the Fund refers to the HSBC U.S. Equity discretionary, information technology and communication Pooled Fund. services weighed on performance.

We are the manager, trustee and primary investment advisor of More specifically, overweighting General Electric Co. the Fund. We have hired HSBC Global Asset Management (industrials) and underweighting Alphabet Inc. (communication (UK) Limited as a sub-advisor to provide portfolio management services) and AbbVie Inc. (health care) contributed to and investment advisory services to the Fund. For an performance. Conversely, underweighting Microsoft Corp. explanation of the relationship between us and the sub-advisor, (information technology), Facebook Inc. (communication see the section Selection of Sub-Advisors in the Fund’s Simplified services) and Amazon.com, Inc. (consumer Prospectus. discretionary) weighed on performance. Introduction Recent Developments This Interim Management Report of Fund Performance contains The Fund uses a systematic investment approach known as the financial highlights but does not contain either the semi-annual HSBC Economic Scale Equity strategy to invest in companies financial report or annual financial statements of the investment according to their economic scale. The strategy incorporates a fund. You may obtain a copy of the Fund’s semi-annual financial rebalancing process to evaluate new stock weights in June report or annual financial statements at your request, at no cost, based on each company’s contribution to Gross National by calling us toll-free at 1-888-390-3333, by visiting our website Product, and then rebalances each constituent stock back to at www.assetmanagement.hsbc.ca, by visiting the SEDAR those weights in December. The strategy aims to take website at www.sedar.com or by writing to us at: advantage of excess volatility in market prices to add excess Corporate Secretary return while delivering the equity market premium. In the June HSBC Global Asset Management (Canada) Limited 2019 rebalance, there were 123 additions and 280 deletions. 3rd Floor, 885 West Georgia Street The starting universe for the portfolio construction of the HSBC Vancouver, BC V6C 3E8 Economic Scale Equity strategy was reviewed and amended in You may also contact us using one of these methods to request a June 2019. Going forward, at the June annual rebalance, the copy of the Fund’s proxy voting policies and procedures, proxy strategy will use the MSCI ACWI universe as the starting voting disclosure record or quarterly statement of investment investable universe rather than a bespoke one. The investment portfolio. process has not changed and will remain the same.

Results of Operations Related Party Transactions As of June 30, 2019, the Fund's net assets increased by 19.3% We, on behalf of the Fund, in our role as fund manager, may, to $910.5 million from $763.2 million at the end of 2018. Net from time to time, enter into transactions or arrangements with contributions and positive investment performance resulted in or involving other members of the HSBC Group or other people an overall increase in net asset value. or companies related or connected to us or the Fund. To proceed with the transactions, the Fund relies on the positive Investment Performance recommendation of the Fund’s Independent Review Committee. A The HSBC U.S. Equity Pooled Fund rose 12.40% for the six months ending June 30, 2019, while the benchmark Russell condition of this positive recommendation is that the transactions 1000 Index (C$) rose 13.70% over the same period. The Fund’s are performed in accordance with our policy on Related Party returns are after the deduction of fees and expenses, while the Transactions. For more general information on persons related to benchmark’s returns do not include any costs of investing. the Fund and the types of potential transactions, see the Fund’s Simplified Prospectus. US equities gained over the period, boosted by easing US-China trade tensions, upbeat corporate earnings and a dovish stance The following is a summary of current transactions and by the US Federal Reserve. arrangements with entities that are related to us or the Fund.

The Fund underperformed its benchmark, with both sector Manager, Trustee and Investment Advisor allocation and stock selection weighing on performance. On a We are the manager, trustee and primary investment advisor of sector basis, overweight allocations to industrials and consumer the Fund. As manager, we manage the overall business and discretionary, coupled with underweight exposures to health operations of the Fund. As trustee, we hold legal title to the care and utilities, contributed to performance. Conversely, an property of the Fund on your behalf. As primary investment overweight allocation to consumer staples and an underweight advisor, we provide investment advice and portfolio exposure to information technology detracted.

1 HSBC U.S. Equity Pooled Fund management services to the Fund. We receive a fee from the HSBC U.S. Equity Pooled Fund – Net Assets per Fund for these services based on assets under management, Unit(1) calculated daily and paid monthly. Period ended June 30, 2019, and years ended December 31 We have entered into a sub-advisory agreement with HSBC June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 Global Asset Management (UK) Limited, a related sub-advisor, under which HSBC Global Asset Management (UK) Limited Net assets per unit, beginning of period (2) $24.11 $25.80 $24.09 $21.70 $21.56 $17.85 provides investment advice and portfolio management services Increase to the Fund. We pay HSBC Global Asset Management (decrease) from (UK) Limited a fee based on assets under management, operations: calculated daily and paid quarterly. To proceed with this Total revenue 0.33 0.55 0.51 0.44 0.47 0.36 transaction, the Fund relied on the positive recommendation of Total expenses – (0.01) (0.01) (0.01) (0.01) (0.01) Realized gains (losses) 0.48 1.11 0.84 0.69 3.48 2.69 the Fund’s Independent Review Committee. For more Unrealized gains information on our ability to hire sub-advisors, see the section (losses) 2.11 (2.14) 1.00 1.71 (1.10) 1.04 Organization and Management of the HSBC Pooled Funds in the Total increase Fund’s Simplified Prospectus. (decrease) from operations (2) $2.92 $(0.49) $2.34 $2.83 $2.84 $4.08 Distribution Services Distributions to The Fund is distributed through us and HSBC Investment Funds unitholders: (Canada) Inc. (our wholly owned subsidiary). We may pay From net investment income (excluding distribution and servicing fees to our related party distributor dividends) – – – – (0.01) – based on the value of the units held in the investor’s account, From dividends – (0.55) (0.58) (0.53) (0.67) (0.28) and additionally, in some cases, on the amount of the From capital gains – (0.60) – – (2.62) – initial purchase. Return of capital – – – – – – Total annual Financial Highlights distributions (2,3) $– $(1.15) $(0.58) $(0.53) $(3.30) $(0.28) The following tables show selected key financial information Net assets per unit, about the Fund and are intended to help you understand the end of period (2) $27.10 $24.11 $25.80 $24.09 $21.70 $21.56 Fund’s financial performance for the six-month period ended June 30, 2019, and for the last five years ended December 31, Ratios and Supplemental Data as applicable. In the year a fund is established, “period” June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, represents the period from inception to December 31 or June 30 2019 2018 2017 2016 2015 2014 of that fiscal year, as applicable. This information is derived from Net Asset Value (in the Fund’s unaudited semi-annual financial statements and the 000s) (4) $910,469 $763,230 $764,904 $663,825 $653,409 $430,451 audited annual financial statements. The information in the Number of units following tables is based on prescribed regulations, and as a outstanding (in 000s) (4) 33,592 31,652 29,648 27,558 30,114 19,965 Management expense result, is not expected to add due to the increase/decrease in net ratio ("MER") (5) 0.05% 0.03% 0.05% 0.04% 0.05% 0.06% assets from operations being based on average units MER before waivers or outstanding during the period and all other numbers being absorptions (5) 0.05% 0.03% 0.05% 0.04% 0.05% 0.06% based on actual units outstanding at the relevant point in time. Trading expense ratio (6) 0.01% 0.01% 0.01% 0.02% 0.03% 0.08% Portfolio turnover rate (7) 15.75% 29.50% 27.79% 26.51% 46.81% 118.78% Net Asset Value per unit (4) $27.10 $24.11 $25.80 $24.09 $21.70 $21.56 (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All

2 HSBC U.S. Equity Pooled Fund

balances are stated in accordance with IFRS. Under IFRS, the net For the six months ended June 30, 2019, approximately 40% of assets per unit presented in the financial statements is the same as the total management fees paid to us for all HSBC Pooled Funds the net asset value calculated for fund pricing purposes. were used to fund distribution costs. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding at the relevant time. The increase/ Past Performance decrease in net assets from operations per unit is based on the The performance information shown assumes that all weighted average number of units outstanding over the financial period. distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance (3) Distributions are automatically reinvested in additional units of the Fund, unless the unitholder withdraws from the automatic information does not take into account management fees, sales, reinvestment plan by providing written notice to us. redemption, distribution, optional charges or expenses you may (4) This information is provided as at period-end of the year shown. be charged outside of the Fund or the effect of any income tax (5) Management expense ratio is based on total expenses (excluding you may have to pay as a result of your investment in the Fund distributions, commissions and other portfolio transaction costs) for that would have reduced returns or performance. The Fund’s the stated period and is expressed as an annualized percentage of past performance does not necessarily indicate how it will daily average net asset value during the period. In the year a Fund is perform in the future. established, the MER is annualized from the date of inception to the end of the period. We may have waived or absorbed certain fees Year-by-Year Returns and expenses otherwise payable by the Fund. The amount of The following bar chart shows the Fund’s annual performance expenses absorbed or waived is at the discretion of and can be terminated at any time by us. for the six-month period ended June 30, 2019, and for each of the previous 12-month periods ended December 31. In (6) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of percentage terms, the bar chart shows how much an daily average net asset value during the financial period. investment made on the first day of each financial period would (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s have grown or decreased by the last day of each portfolio advisor manages its portfolio investments. A portfolio financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 60% and the performance of the Fund. The rate is calculated based on 50% 47.2% the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding 40% short-term securities. 30% 22.4% 20% 15.8% Management Fees 13.4% 12.4% 10.9% 10.0% 9.7% 9.5% For the six months ended June 30, 2019, the Fund did not pay 10% 0.6% management fees. You pay us, HSBC Investment Funds 0% (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or -1.9% -10% your approved advisor a management fee that is based on the Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 amount you have invested with us or your approved advisor 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (which may be subject to certain minimum annual fees). It is negotiated between you and us, HSBC Investment Funds (Canada) Inc. or your approved advisor. Further details can be found in the Fund’s Simplified Prospectus. Management fees paid to us were used to pay costs for managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, for units of the Fund bought and held by unitholders. Finally, we used management fees to pay for additional marketing and distribution services to the Fund.

3 HSBC U.S. Equity Pooled Fund

Summary of Investment Portfolio As at June 30, 2019

Sector Mix Percentage of NAV

Industrials 16.27% Information Technology 14.47% Financials 14.20% Consumer Discretionary 13.78% Health Care 9.81% Consumer Staples 9.68% Communication Services 7.56% Energy 5.86% Materials 3.89% Real Estate 2.15% Utilities 1.53% Investment Funds 0.64% Cash & Equivalents 0.16% Total 100.00%

Top 25 Holdings Percentage of NAV

Walmart Inc. 3.16% Apple Inc. 1.66% General Electric Co. 1.58% AT&T Inc. 1.39% Wells Fargo & Co. 1.31% JPMorgan Chase & Co. 1.22% Bank of America Corp. 1.10% Verizon Communications Inc. 1.02% Exxon Mobil Corp. 1.00% United Parcel Service Inc., Class B 0.93% Berkshire Hathaway Inc., Class B 0.89% Citigroup Inc. 0.86% Microsoft Corp. 0.79% The Home Depot Inc. 0.78% The Walt Disney Co. 0.77% Chevron Corp. 0.76% PepsiCo Inc. 0.68% Accenture PLC, A-Shares 0.68% Amazon.com Inc. 0.67% Comcast Corp., Class A 0.67% Intel Corp. 0.66% Johnson & Johnson 0.66% iShares Core S&P 500 ETF 0.64% Pfizer Inc. 0.60% The Boeing Co. 0.59% Total of Top 25 Holdings 25.07%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

4 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents at no cost by calling us 3 Floor, 885 West Georgia Street toll-free at 1-888-390-3333, contacting your authorized Vancouver, BC V6C 3E8 dealer or visiting our website Toronto at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC International Equity Pooled Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC International Equity Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the The Fund underperformed against its benchmark, with asset Fund; we, us and our refer to HSBC Global Asset Management allocation and stock selection weighing on performance. On a (Canada) Limited; and the Fund refers to the HSBC International sector basis, an overweight allocation to industrials and Equity Pooled Fund. underweight exposures to financials, health care and real estate contributed to performance. Conversely, overweight positions in We are the manager, trustee and primary investment advisor of communication services and utilities and an underweight the Fund. We have hired HSBC Global Asset Management exposure to information technology weighed on performance. (UK) Limited as a sub-advisor to provide portfolio management and investment advisory services to the Fund. For an On a country basis, overweight allocations to France, Singapore, explanation of the relationship between us and the sub-advisor, Italy, the Netherlands and Germany, coupled with an see the section Selection of Sub-Advisors in the Fund’s Simplified underweight exposure to Japan, contributed to performance. Prospectus. Conversely, underweight allocations to Australia and Switzerland weighed on performance. Introduction This Interim Management Report of Fund Performance contains Recent Developments financial highlights but does not contain either the semi-annual The Fund uses a systematic investment approach known as the financial report or annual financial statements of the investment HSBC Economic Scale Equity strategy to invest in companies fund. You may obtain a copy of the Fund’s semi-annual financial according to their economic scale. The strategy incorporates a report or annual financial statements at your request, at no cost, rebalancing process to evaluate new stock weights in June by calling us toll-free at 1-888-390-3333, by visiting our website based on each company’s contribution to Gross National at www.assetmanagement.hsbc.ca, by visiting the SEDAR Product, and then rebalances each constituent stock back to website at www.sedar.com or by writing to us at: those weights in December. The strategy aims to take advantage of excess volatility in market prices to add excess Corporate Secretary return while delivering the equity market premium. In the June HSBC Global Asset Management (Canada) Limited 2019 rebalance, there were 48 additions and 284 deletions. 3rd Floor, 885 West Georgia Street Vancouver, BC V6C 3E8 The starting universe for the portfolio construction of the HSBC Economic Scale Equity strategy was reviewed and amended in You may also contact us using one of these methods to request a June 2019. Going forward, at the June annual rebalance, the copy of the Fund’s proxy voting policies and procedures, proxy strategy will use the MSCI ACWI universe as the starting voting disclosure record or quarterly statement of investment investable universe rather than a bespoke one. The investment portfolio. process has not changed and will remain the same. Results of Operations Related Party Transactions As of June 30, 2019, the Fund's net assets increased by 2.4% to We, on behalf of the Fund, in our role as fund manager, may, $724.8 million from $708.0 million at the end of 2018. Positive from time to time, enter into transactions or arrangements with investment performance, partially offset by net withdrawals, or involving other members of the HSBC Group or other people resulted in an overall increase in net asset value. or companies related or connected to us or the Fund. To proceed Investment Performance with the transactions, the Fund relies on the positive The HSBC International Equity Pooled Fund rose 6.23% for the recommendation of the Fund’s Independent Review Committee. A six months ending June 30, 2019, while the benchmark MSCI condition of this positive recommendation is that the transactions EAFE Net Index (C$) rose 9.10% over the same period. The are performed in accordance with our policy on Related Party Transactions. For more general information on persons related to Fund’s returns are after the deduction of fees and expenses, the Fund and the types of potential transactions, see the Fund’s while the benchmark’s returns do not include any costs of Simplified Prospectus. investing. The following is a summary of current transactions and Global equity markets gained over the first half of the year, arrangements with entities that are related to us or the Fund. which was dominated by trade tensions and the central banks’ shifts towards a dovish stance. In the US, stocks were boosted Manager, Trustee and Investment Advisor by the US Federal Reserve’s announcement that it would adjust We are the manager, trustee and primary investment advisor of its planned rate hikes and possibly cut rates. Meanwhile, the Fund. As manager, we manage the overall business and European stocks performed well as the European Central Bank operations of the Fund. As trustee, we hold legal title to the signalled it might look again at monetary easing if the inflation property of the Fund on your behalf. As primary investment outlook fails to improve. advisor, we provide investment advice and portfolio

1 HSBC International Equity Pooled Fund management services to the Fund. We receive a fee from the HSBC International Equity Pooled Fund – Net Fund for these services based on assets under management, Assets per Unit(1) calculated daily and paid monthly. Period ended June 30, 2019, and years ended December 31 We have entered into a sub-advisory agreement with HSBC June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2019 2018 2017 2016 2015 2014 Global Asset Management (UK) Limited, a related sub-advisor, under which HSBC Global Asset Management (UK) Limited Net assets per unit, beginning of period (2) $14.92 $16.46 $14.27 $14.54 $12.55 $12.39 provides investment advice and portfolio management services Increase to the Fund. We pay HSBC Global Asset Management (decrease) from (UK) Limited a fee based on assets under management, operations: calculated daily and paid quarterly. For more information on our Total revenue 0.38 0.50 0.47 0.37 0.36 0.35 ability to hire sub-advisors, see the section Organization and Total expenses (0.01) (0.02) (0.02) (0.01) (0.01) (0.01) Realized gains (losses) 0.13 0.38 0.57 0.09 1.24 0.80 Management of the HSBC Pooled Funds in the Fund’s Unrealized gains Simplified Prospectus. (losses) 0.45 (1.99) 1.63 (0.29) 0.43 (0.70) Total increase Distribution Services (decrease) from The Fund is distributed through us and HSBC Investment Funds operations (2) $0.95 $(1.13) $2.65 $0.16 $2.02 $0.44 (Canada) Inc. (our wholly owned subsidiary). We may pay Distributions to distribution and servicing fees to our related party distributor unitholders: based on the value of the units held in the investor’s account, From net investment income (excluding and additionally, in some cases, on the amount of the dividends) – – – – – – initial purchase. From dividends – (0.48) (0.44) (0.40) (0.33) (0.39) From capital gains – – – – – – Investments in Securities of Related Parties Return of capital – – – – – – In accordance with Canadian securities legislation and policies Total annual set out by our Independent Review Committee, the Fund may distributions (2,3) $– $(0.48) $(0.44) $(0.40) $(0.33) $(0.39) invest its assets in the securities of companies related to the Net assets per unit, Fund’s investment advisor or sub-advisor. During the period, the end of period (2) $15.85 $14.92 $16.46 $14.27 $14.54 $12.55 Fund held, purchased or sold shares in HSBC Holdings plc (our ultimate parent company) and Hang Seng Bank, which Ratios and Supplemental Data represented 0.78% and 0.09% of the Fund’s assets, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, respectively, as at June 30, 2019. 2019 2018 2017 2016 2015 2014 Financial Highlights Net Asset Value (in 000s) (4) $724,755 $708,002 $703,100 $555,803 $532,363 $302,621 The following tables show selected key financial information Number of units about the Fund and are intended to help you understand the outstanding (in 000s) (4) 45,713 47,439 42,716 38,947 36,607 24,111 Fund’s financial performance for the six-month period ended Management expense ratio ("MER") (5) 0.15% 0.11% 0.10% 0.10% 0.09% 0.11% June 30, 2019, and for the last five years ended December 31, MER before waivers or as applicable. In the year a fund is established, “period” absorptions (5) 0.15% 0.11% 0.10% 0.10% 0.09% 0.11% represents the period from inception to December 31 or June 30 Trading expense of that fiscal year, as applicable. This information is derived from ratio (6) 0.07% 0.05% 0.04% 0.04% 0.14% 0.32% Portfolio turnover the Fund’s unaudited semi-annual financial statements and the rate (7) 24.99% 33.03% 31.24% 28.52% 105.98% 103.77% audited annual financial statements. The information in the Net Asset Value per following tables is based on prescribed regulations, and as a unit (4) $15.85 $14.92 $16.46 $14.27 $14.54 $12.55 result, is not expected to add due to the increase/decrease in net (1) This information is derived from the Fund’s unaudited semi-annual assets from operations being based on average units financial report and audited annual financial statements. All outstanding during the period and all other numbers being based on actual units outstanding at the relevant point in time.

2 HSBC International Equity Pooled Fund

balances are stated in accordance with IFRS. Under IFRS, the net For the six months ended June 30, 2019, approximately 40% of assets per unit presented in the financial statements is the same as the total management fees paid to us for all HSBC Pooled Funds the net asset value calculated for fund pricing purposes. were used to fund distribution costs. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding at the relevant time. The increase/ Past Performance decrease in net assets from operations per unit is based on the The performance information shown assumes that all weighted average number of units outstanding over the financial period. distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance (3) Distributions are automatically reinvested in additional units of the Fund, unless the unitholder withdraws from the automatic information does not take into account management fees, sales, reinvestment plan by providing written notice to us. redemption, distribution, optional charges or expenses you may (4) This information is provided as at period-end of the year shown. be charged outside of the Fund or the effect of any income tax (5) Management expense ratio is based on total expenses (excluding you may have to pay as a result of your investment in the Fund distributions, commissions and other portfolio transaction costs) for that would have reduced returns or performance. The Fund’s the stated period and is expressed as an annualized percentage of past performance does not necessarily indicate how it will daily average net asset value during the period. In the year a Fund is perform in the future. established, the MER is annualized from the date of inception to the end of the period. We may have waived or absorbed certain fees Year-by-Year Returns and expenses otherwise payable by the Fund. The amount of The following bar chart shows the Fund’s annual performance expenses absorbed or waived is at the discretion of and can be terminated at any time by us. for the six-month period ended June 30, 2019, and for each of the previous 12-month periods ended December 31. In (6) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of percentage terms, the bar chart shows how much an daily average net asset value during the financial period. investment made on the first day of each financial period would (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s have grown or decreased by the last day of each portfolio advisor manages its portfolio investments. A portfolio financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 50% and the performance of the Fund. The rate is calculated based on 40% 34.6% the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding 30% short-term securities. 20% 17.5% 18.5% 18.4% 9.7% 10% 4.4% 6.2% Management Fees 3.0% 0.8% For the six months ended June 30, 2019, the Fund did not pay 0% management fees. You pay us, HSBC Investment Funds -10% -6.4% (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or -9.0% -20% your approved advisor a management fee that is based on the Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 amount you have invested with us or your approved advisor 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (which may be subject to certain minimum annual fees). It is negotiated between you and us, HSBC Investment Funds (Canada) Inc. or your approved advisor. Further details can be found in the Fund’s Simplified Prospectus. Management fees paid to us were used to pay costs for managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, for units of the Fund bought and held by unitholders. Finally, we used management fees to pay for additional marketing and distribution services to the Fund.

3 HSBC International Equity Pooled Fund

Summary of Investment Portfolio Top 25 Holdings As at June 30, 2019 Percentage of NAV

iShares MSCI EAFE ETF 2.18% Sector Mix Royal Dutch Shell PLC 1.41% Percentage Volkswagen AG 1.37% of NAV Nippon Telegraph & Telephone Corp. 1.24% Industrials 18.00% Siemens AG 1.13% Financials 16.48% Toyota Motor Corp. 0.99% Consumer Discretionary 13.48% Deutsche Post AG 0.82% Communication Services 8.92% BP PLC 0.80% Consumer Staples 8.63% Deutsche Telekom AG 0.78% Materials 7.60% HSBC Holdings PLC 0.78% Health Care 6.04% Telefonica SA 0.77% Utilities 5.87% Japan Post Holdings Co., Ltd. 0.73% Energy 5.56% Eni SpA 0.71% Information Technology 5.07% Nestle SA 0.72% Investment Funds 2.18% BNP Paribas SA 0.67% Real Estate 1.25% Vodafone Group PLC 0.66% Cash & Equivalents 0.92% Banco Santander SA 0.64% Total 100.00% Total SA 0.64% Orange SA 0.63%

> Bayerische Motoren Werke AG 0.61% Geographic Mix Electricite de France SA 0.60% Percentage Engie 0.60% of NAV Fiat Chrysler Automobiles NV 0.59% Japan 22.38% Hitachi Ltd. 0.59% France 13.89% Roche Holding AG 0.59% United Kingdom 12.79% Total of Top 25 Holdings 21.25% Germany 12.67% Switzerland 4.99% Netherlands 4.78% Spain 4.33% Australia 3.67% Italy 3.15% Sweden 2.93% Singapore 1.81% Hong Kong 1.80% Denmark 1.28% Belgium 1.16% Finland 1.09% Norway 0.92% Luxembourg 0.73% Austria 0.49% Ireland 0.49% Cayman Islands 0.47% Portugal 0.33% Israel 0.31% Bermuda 0.16% Jersey 0.12% Taiwan 0.09% New Zealand 0.05% Papua New Guinea 0.02% Investment Funds 2.18% Cash & Equivalents 0.92% Total 100.00%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

4 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents at no cost by calling us 3 Floor, 885 West Georgia Street toll-free at 1-888-390-3333, contacting your authorized Vancouver, BC V6C 3E8 dealer or visiting our website Toronto at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Emerging Markets Pooled Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Emerging Markets Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the The Fund underperformed its benchmark, with asset allocation Fund; we, us and our refer to HSBC Global Asset Management contributing to performance and stock selection weighing on (Canada) Limited; and the Fund refers to the HSBC Emerging performance. On a sector basis, underweight exposures to Markets Pooled Fund. health care and consumer staples contributed to performance, while underweight allocations to consumer discretionary, We are the manager, trustee and primary investment advisor of information technology and real estate weighed on the Fund. We have hired HSBC Global Asset Management performance. On a country basis, an overweight allocation to (UK) Limited as a sub-advisor to provide portfolio management Russia and underweight exposures to Korea, Qatar and China and investment advisory services to the Fund. For an contributed to performance, while an underweight allocation to explanation of the relationship between us and the sub-advisor, Argentina and overweight exposures to India, Chile and Mexico see the section Selection of Sub-Advisors in the Fund’s Simplified weighed on performance. Prospectus. Introduction Recent Developments The Fund uses a systematic investment approach known as the This Interim Management Report of Fund Performance contains HSBC Economic Scale Equity strategy to invest in companies financial highlights but does not contain either the semi-annual according to their economic scale. The strategy incorporates a financial report or annual financial statements of the investment rebalancing process to evaluate new stock weights in June fund. You may obtain a copy of the Fund’s semi-annual financial based on each company’s contribution to Gross National report or annual financial statements at your request, at no cost, Product, and then rebalances each constituent stock back to by calling us toll-free at 1-888-390-3333, by visiting our website those weights in December. The strategy aims to take at www.assetmanagement.hsbc.ca, by visiting the SEDAR advantage of excess volatility in market prices to add excess website at www.sedar.com or by writing to us at: return while delivering the equity market premium. In the June Corporate Secretary 2019 rebalance, there were 269 additions and 179 deletions. HSBC Global Asset Management (Canada) Limited The starting universe for the portfolio construction of the HSBC 3rd Floor, 885 West Georgia Street Economic Scale Equity strategy was reviewed and amended in Vancouver, BC V6C 3E8 June 2019. Going forward, at the June annual rebalance, the You may also contact us using one of these methods to request a strategy will use the MSCI ACWI universe as the starting copy of the Fund’s proxy voting policies and procedures, proxy investable universe rather than a bespoke one. The investment voting disclosure record or quarterly statement of investment process has not changed and will remain the same. portfolio. Related Party Transactions Results of Operations We, on behalf of the Fund, in our role as fund manager, may, As of June 30, 2019, the Fund's net assets increased by 18.8% from time to time, enter into transactions or arrangements with to $201.3 million from $169.4 million at the end of 2018. Net or involving other members of the HSBC Group or other people contributions and positive investment performance resulted in or companies related or connected to us or the Fund. To proceed an overall increase in net asset value. with the transactions, the Fund relies on the positive recommendation of the Fund’s Independent Review Committee. A Investment Performance condition of this positive recommendation is that the transactions The HSBC Emerging Markets Pooled Fund rose 5.37% for the are performed in accordance with our policy on Related Party six months ending June 30, 2019, while the benchmark MSCI Transactions. For more general information on persons related to Emerging Markets Free Net Total Return Index (C$) rose 5.80% the Fund and the types of potential transactions, see the Fund’s over the same period. The Fund’s returns are after the deduction Simplified Prospectus. of fees and expenses, while the benchmark’s returns do not include any costs of investing. The following is a summary of current transactions and arrangements with entities that are related to us or the Fund. In the first quarter, emerging market equities posted positive returns amid progress on US-China trade negotiations, dovish Manager, Trustee and Investment Advisor signals from the US Federal Reserve and expectations of a We are the manager, trustee and primary investment advisor of rebound in Chinese data on the back of recent stimulus. the Fund. As manager, we manage the overall business and Emerging market equities fell sharply in May as US-China trade operations of the Fund. As trustee, we hold legal title to the relations deteriorated and the US raised tariffs from 10% to 25% property of the Fund on your behalf. As primary investment on $200 billion of Chinese goods. The quarter finished on a advisor, we provide investment advice and portfolio positive note with a June rebound amid mounting expectations management services to the Fund. We receive a fee from the that the US Federal Reserve will cut interest rates this year as Fund for these services based on assets under management, well as easing US-China trade tensions. calculated daily and paid monthly.

1 HSBC Emerging Markets Pooled Fund

We have entered into a sub-advisory agreement with HSBC HSBC Emerging Markets Pooled Fund – Net Global Asset Management (UK) Limited, a related sub-advisor, Assets per Unit(1) under which HSBC Global Asset Management (UK) Limited Period ended June 30, 2019, and years ended December 31 provides investment advice and portfolio management services June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, to the Fund. We pay HSBC Global Asset Management 2019 2018 2017 2016 2015 2014 (UK) Limited a fee based on assets under management, Net assets per unit, calculated daily and paid quarterly. To proceed with this beginning of period (2) $10.60 $11.31 $9.78 $8.71 $10.28 $9.95 transaction, the Fund relied on the positive recommendation of Increase the Fund’s Independent Review Committee. For more (decrease) from information on our ability to hire sub-advisors, see the section operations: Total revenue 0.22 0.40 0.34 0.31 0.37 0.27 Organization and Management of the HSBC Pooled Funds in the Total expenses (0.03) (0.05) (0.05) (0.04) (0.03) (0.03) Fund’s Simplified Prospectus. Realized gains (losses) 0.18 0.19 0.43 (0.09) 0.91 0.02 Unrealized gains Distribution Services (losses) 0.19 (0.80) 1.09 1.24 (1.88) 0.20 The Fund is distributed through us and HSBC Investment Funds Total increase (Canada) Inc. (our wholly owned subsidiary). We may pay (decrease) from operations (2) $0.56 $(0.26) $1.81 $1.42 $(0.63) $0.46 distribution and servicing fees to our related party distributor based on the value of the units held in the investor’s account, Distributions to unitholders: and additionally, in some cases, on the amount of the From net investment initial purchase. income (excluding dividends) – – – – – – Investments in Securities of Related Parties From dividends – (0.33) (0.28) (0.28) (0.32) (0.19) In accordance with Canadian securities legislation and policies From capital gains – (0.20) – – (0.77) – Return of capital – – – – – – set out by our Independent Review Committee, the Fund may Total annual invest its assets in the securities of companies related to the distributions (2,3) $– $(0.53) $(0.28) $(0.28) $(1.09) $(0.19) Fund’s investment advisor or sub-advisor. During the period, the Net assets per unit, Fund held, purchased or sold shares in Bank of Communications end of period (2) $11.16 $10.60 $11.31 $9.78 $8.71 $10.28 Co., Ltd. and Industrial Bank Co., Ltd., which represented 0.40% and 0.49% of the Fund’s assets, respectively as at June 30, 2019. Ratios and Supplemental Data June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Financial Highlights 2019 2018 2017 2016 2015 2014 The following tables show selected key financial information Net Asset Value (in about the Fund and are intended to help you understand the 000s) (4) $201,266 $169,444 $158,066 $124,674 $110,048 $108,072 Fund’s financial performance for the six-month period ended Number of units outstanding (in 000s) (4) 18,028 15,992 13,976 12,744 12,630 10,514 June 30, 2019, and for the last five years ended December 31, Management expense as applicable. In the year a fund is established, “period” ratio ("MER") (5) 0.51% 0.49% 0.52% 0.41% 0.25% 0.20% represents the period from inception to December 31 or June 30 MER before waivers or of that fiscal year, as applicable. This information is derived from absorptions (5) 0.51% 0.49% 0.52% 0.41% 0.25% 0.20% Trading expense the Fund’s unaudited semi-annual financial statements and the ratio (6) 0.12% 0.07% 0.07% 0.06% 0.27% 0.11% audited annual financial statements. The information in the Portfolio turnover following tables is based on prescribed regulations, and as a rate (7) 25.91% 38.82% 40.09% 38.01% 140.55% 18.27% Net Asset Value per result, is not expected to add due to the increase/decrease in net unit (4) $11.16 $10.60 $11.31 $9.78 $8.71 $10.28 assets from operations being based on average units (1) This information is derived from the Fund’s unaudited semi-annual outstanding during the period and all other numbers being financial report and audited annual financial statements. All based on actual units outstanding at the relevant point in time.

2 HSBC Emerging Markets Pooled Fund

balances are stated in accordance with IFRS. Under IFRS, the net For the six months ended June 30, 2019, approximately 40% of assets per unit presented in the financial statements is the same as the total management fees paid to us for all HSBC Pooled Funds the net asset value calculated for fund pricing purposes. were used to fund distribution costs. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding at the relevant time. The increase/ Past Performance decrease in net assets from operations per unit is based on the The performance information shown assumes that all weighted average number of units outstanding over the financial period. distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance (3) Distributions are automatically reinvested in additional units of the Fund, unless the unitholder withdraws from the automatic information does not take into account management fees, sales, reinvestment plan by providing written notice to us. redemption, distribution, optional charges or expenses you may (4) This information is provided as at period-end of the year shown. be charged outside of the Fund or the effect of any income tax (5) Management expense ratio is based on total expenses (excluding you may have to pay as a result of your investment in the Fund distributions, commissions and other portfolio transaction costs) for that would have reduced returns or performance. The Fund’s the stated period and is expressed as an annualized percentage of past performance does not necessarily indicate how it will daily average net asset value during the period. In the year a Fund is perform in the future. established, the MER is annualized from the date of inception to the end of the period. We may have waived or absorbed certain fees Year-by-Year Returns and expenses otherwise payable by the Fund. The amount of The following bar chart shows the Fund’s annual performance expenses absorbed or waived is at the discretion of and can be terminated at any time by us. for the six-month period ended June 30, 2019, and for each of the previous 12-month periods ended December 31. In (6) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of percentage terms, the bar chart shows how much an daily average net asset value during the financial period. investment made on the first day of each financial period would (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s have grown or decreased by the last day of each portfolio advisor manages its portfolio investments. A portfolio financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate 30% and the performance of the Fund. The rate is calculated based on 18.5% 20% 15.6% the lesser of purchases or sales of securities divided by the average 12.7% weighted market value of the portfolio securities, excluding 8.3% 10% 5.2% 5.4% short-term securities. 0% Management Fees -1.6% -10% -4.7% For the six months ended June 30, 2019, the Fund did not pay management fees. You pay us, HSBC Investment Funds -20% -19.9% (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or -30% your approved advisor a management fee that is based on the Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Jun. 30 amount you have invested with us or your approved advisor 2011 2012 2013 2014 2015 2016 2017 2018 2019 (which may be subject to certain minimum annual fees). It is negotiated between you and us, HSBC Investment Funds (Canada) Inc. or your approved advisor. Further details can be found in the Fund’s Simplified Prospectus. Management fees paid to us were used to pay costs for managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, for units of the Fund bought and held by unitholders. Finally, we used management fees to pay for additional marketing and distribution services to the Fund.

3 HSBC Emerging Markets Pooled Fund

Summary of Investment Portfolio Top 25 Holdings As at June 30, 2019 Percentage of NAV

PetroChina Co., Ltd., Class H 2.99% Sector Mix iShares MSCI Saudi Arabia ETF 2.39% Percentage Industrial & Commercial Bank of China Ltd., Class H 2.16% of NAV China Petroleum & Chemical Corp., Class H 2.02% Financials 24.68% Gazprom 1.86% Energy 18.90% China Construction Bank Corp., Class H 1.84% Communication Services 10.39% China Mobile Ltd. 1.66% Information Technology 9.92% Samsung Electronics Co., Ltd. 1.62% Materials 8.42% Rosneft OAO 1.47% Industrials 6.79% Agricultural Bank of China Ltd. 1.40% Consumer Staples 5.59% Petroleo Brasileiro SA, Preferred 1.33% Consumer Discretionary 5.20% Bank of China Ltd. 1.30% Utilities 4.00% China Telecom Corp., Ltd. 1.14% Investment Funds 3.23% Tata Consultancy Services Ltd. 1.11% Real Estate 1.34% China United Network Communications Ltd. 0.99% Health Care 0.82% Hon Hai Precision Industry Co., Ltd. 0.92% Cash & Equivalents 0.72% Total 100.00% Coal India Ltd. 0.88% iShares MSCI Emerging Markets Index Fund 0.84% Taiwan Semiconductor Manufacturing Co., Ltd. 0.84%

> Geographic Mix Lukoil PJSC 0.80% Percentage Ping An Insurance (Group) Co. of China Ltd., Class H 0.80% of NAV China Unicom (Hong Kong) Ltd. 0.76% Infosys Ltd. 0.75% China 34.62% America Movil SAB de CV 0.73% India 11.02% Sberbank of Russia, GDR 0.72% Russia 8.31% Taiwan 6.59% Total of Top 25 Holdings 33.32% South Korea 6.11% Brazil 5.85% South Africa 3.34% Mexico 2.59% Thailand 2.53% Hong Kong 2.25% Malaysia 2.10% Indonesia 1.99% Chile 1.51% Turkey 1.30% Poland 1.03% Colombia 0.80% Cayman Islands 0.78% Philippines 0.58% Qatar 0.50% United Arab Emirates 0.50% Argentina 0.38% Czech Republic 0.25% Bermuda 0.23% Hungary 0.23% Pakistan 0.19% Peru 0.17% Greece 0.13% Egypt 0.09% Jersey 0.04% Isle of Man 0.02% Luxembourg 0.02% Investment Funds 3.23% Cash & Equivalents 0.72% Total 100.00%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

4 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents at no cost by calling us 3 Floor, 885 West Georgia Street toll-free at 1-888-390-3333, contacting your authorized Vancouver, BC V6C 3E8 dealer or visiting our website Toronto at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limitedto, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise. Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, Bank of Canada. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS HSBC Global Real Estate Equity Pooled Fund

Interim Management Report of Fund Performance for the six months ended June 30, 2019 HSBC Global Real Estate Equity Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the shopping centre operator Kimco Realty contributed positively Fund; we, us and our refer to HSBC Global Asset Management following a period of underperformance, as investors (Canada) Limited; and the Fund refers to the HSBC Global Real reassessed the quality of its portfolio and ability to drive growth Estate Equity Pooled Fund. through mixed use development on its sites.

We are the manager, trustee and primary investment advisor of Offsetting these gains was a position in Berlin-focused the Fund. We have hired HSBC Global Asset Management residential stock Deutsche Wohnen, which fell following a (UK) Limited as a sub-advisor to provide portfolio management proposal for a five-year rent freeze in Berlin by a city senate and investment advisory services to the Fund. For an member. An overweight position in Macerich also detracted, as explanation of the relationship between us and the sub-advisor, the stock fell with others in the sector. see the section Selection of Sub-Advisors in the Fund’s Simplified Recent Developments Prospectus. As the US trade war with China has intensified, the probability Introduction that the US Federal Reserve will increase rates has diminished, with possible rate cuts now more likely. This is limiting This Interim Management Report of Fund Performance contains downward pressure on real estate prices that might have financial highlights but does not contain either the semi-annual existed with significantly higher rates. financial report or annual financial statements of the investment fund. You may obtain a copy of the Fund’s semi-annual financial In addition, the increasingly turbulent global macro environment report or annual financial statements at your request, at no cost, continues to highlight the defensive nature of REITs, with their by calling us toll-free at 1-888-390-3333, by visiting our website predictable earnings and dividends and higher exposure to at www.assetmanagement.hsbc.ca, by visiting the SEDAR domestically generated revenues compared to other industry website at www.sedar.com or by writing to us at: sectors. Aside from some parts of the retail market, real estate fundamentals remain relatively solid, particularly in the logistics Corporate Secretary sector. HSBC Global Asset Management (Canada) Limited 3rd Floor, 885 West Georgia Street Lingering uncertainty about the future UK-EU relationship is Vancouver, BC V6C 3E8 likely to continue weighing on UK-focused stocks. Market conditions in the Asia-Pacific region vary greatly and portfolio You may also contact us using one of these methods to request a positioning reflects the portfolio management team’s outlook for copy of the Fund’s proxy voting policies and procedures, proxy both the underlying physical markets and listed market pricing. voting disclosure record or quarterly statement of investment portfolio. Related Party Transactions Results of Operations We, on behalf of the Fund, in our role as fund manager, may, from time to time, enter into transactions or arrangements with As of June 30, 2019, the Fund's net assets increased by 8.7% to or involving other members of the HSBC Group or other people $154.7 million from $142.3 million at the end of 2018. Net or companies related or connected to us or the Fund. To proceed contributions and positive investment performance resulted in with the transactions, the Fund relies on the positive an overall increase in net asset value. recommendation of the Fund’s Independent Review Committee. A Investment Performance condition of this positive recommendation is that the transactions The HSBC Global Real Estate Equity Pooled Fund rose 8.40% for are performed in accordance with our policy on Related Party the six months ending June 30, 2019, while the benchmark Transactions. For more general information on persons related to FTSE EPRA Nareit Developed Net Index (C$) rose 9.56%. The the Fund and the types of potential transactions, see the Fund’s Fund’s returns are after the deduction of fees and expenses, Simplified Prospectus. while the benchmark’s returns do not include any costs The following is a summary of current transactions and of investing. arrangements with entities that are related to us or the Fund. Positive contributors to performance over the period include Manager, Trustee and Investment Advisor holdings in Duke Realty Corp. and Prologis, as demand and We are the manager, trustee and primary investment advisor of supply fundamentals in the logistics sector continued to be the Fund. As manager, we manage the overall business and favourable, driven by the growth of e-commerce. operations of the Fund. As trustee, we hold legal title to the An underweight position in Simon Property also contributed, as property of the Fund on your behalf. As primary investment concerns over elevated store closures, weak retail earnings and advisor, we provide investment advice and portfolio higher tariffs led to margin pressure for retailers and impacted management services to the Fund. We receive a fee from the sentiment. However, not all retail stocks suffered in the first six Fund for these services based on assets under management, months of 2019, and the portfolio’s overweight position to US calculated daily and paid monthly.

1 HSBC Global Real Estate Equity Pooled Fund

We have entered into a sub-advisory agreement with HSBC HSBC Global Real Estate Equity Pooled Fund – Global Asset Management (UK) Limited, a related sub-advisor, Net Assets per Unit(1) under which HSBC Global Asset Management (UK) Limited Period ended June 30, 2019, and years ended December 31 provides investment advice and portfolio management services June 30, Dec. 31, Dec. 31, Dec. 31, to the Fund. We pay HSBC Global Asset Management 2019 2018 2017 2016 (UK) Limited a fee based on assets under management, Net assets per unit, beginning of calculated daily and paid quarterly. To proceed with this period (2) $10.33 $10.25 $10.60 $11.03 transaction, the Fund relied on the positive recommendation of Increase (decrease) from the Fund’s Independent Review Committee. For more operations: information on our ability to hire sub-advisors, see the section Total revenue 0.18 0.35 0.45 0.29 Total expenses (0.01) (0.01) (0.01) (0.01) Organization and Management of the HSBC Pooled Funds in the Realized gains (losses) – (0.08) (0.05) 0.17 Fund’s Simplified Prospectus. Unrealized gains (losses) 0.69 0.16 (0.30) (0.44) Total increase (decrease) from Distribution Services operations (2) $0.86 $0.42 $0.09 $0.01 The Fund is distributed through us and HSBC Investment Funds Distributions to unitholders: (Canada) Inc. (our wholly owned subsidiary). We may pay From net investment income distribution and servicing fees to our related party distributor (excluding dividends) – – – – based on the value of the units held in the investor’s account, From dividends – (0.40) (0.41) (0.20) From capital gains – – – (0.16) and additionally, in some cases, on the amount of the Return of capital – – – – initial purchase. Total annual distributions (2,3) $– $(0.40) $(0.41) $(0.36) Financial Highlights Net assets per unit, end of The following tables show selected key financial information period (2) $11.20 $10.33 $10.25 $10.60 about the Fund and are intended to help you understand the Fund’s financial performance for the six-month period ended Ratios and Supplemental Data June 30, 2019, and for the last three years ended December 31, June 30, Dec. 31, Dec. 31, Dec. 31, as applicable. In the year a fund is established, “period” 2019 2018 2017 2016 represents the period from inception to December 31 or June 30 Net Asset Value (in 000s) (4) $154,719 $142,284 $178,198 $144,518 of that fiscal year, as applicable. This information is derived from Number of units outstanding (in the Fund’s unaudited semi-annual financial statements and the 000s) (4) 13,813 13,771 17,377 13,639 audited annual financial statements. The information in the Management expense ratio ("MER") (5) 0.12% 0.10% 0.10% 0.10% following tables is based on prescribed regulations, and as a MER before waivers or result, is not expected to add due to the increase/decrease in net absorptions (5) 0.12% 0.10% 0.10% 0.10% assets from operations being based on average units Trading expense ratio (6) 0.01% 0.05% 0.03% 0.09% Portfolio turnover rate (7) 6.59% 29.24% 10.03% 20.57% outstanding during the period and all other numbers being Net Asset Value per unit (4) $11.20 $10.33 $10.25 $10.60 based on actual units outstanding at the relevant point in time. (1) This information is derived from the Fund’s unaudited semi-annual financial report and audited annual financial statements. All balances are stated in accordance with IFRS. Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding at the relevant time. The increase/ decrease in net assets from operations per unit is based on the weighted average number of units outstanding over the financial period. (3) Distributions are automatically reinvested in additional units of the Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. (4) This information is provided as at period-end of the year shown. (5) Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average net asset value during the period. In the year a Fund is established, the MER is annualized from the date of inception to the

2 HSBC Global Real Estate Equity Pooled Fund

end of the period. We may have waived or absorbed certain fees Year-by-Year Returns and expenses otherwise payable by the Fund. The amount of The following bar chart shows the Fund’s annual performance expenses absorbed or waived is at the discretion of and can be for the six-month period ended June 30, 2019, and for each of terminated at any time by us. the previous 12-month periods ended December 31. In (6) The trading expense ratio represents total commissions and other percentage terms, the bar chart shows how much an portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the financial period. investment made on the first day of each financial period would have grown or decreased by the last day of each (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio financial period. turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The Returns higher the Fund’s portfolio turnover rate in a period, the greater the For the 12-month periods ended December 31 and the trading costs payable by the Fund in the period, and the greater the six-month period ended June 30, 2019 chance of an investor receiving taxable capital gains in the period. 10% There is not necessarily a relationship between a high turnover rate 8.4% and the performance of the Fund. The rate is calculated based on the lesser of purchases or sales of securities divided by the average 5% 4.7% weighted market value of the portfolio securities, excluding short-term securities. 0.7% Management Fees 0% For the six months ended June 30, 2019, the Fund did not pay -0.7% management fees. You pay us, HSBC Investment Funds -5% (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or Dec. 31 Dec. 31 Dec. 31 Jun. 30 your approved advisor a management fee that is based on the 2016 2017 2018 2019 amount you have invested with us or your approved advisor (which may be subject to certain minimum annual fees). It is Summary of Investment Portfolio negotiated between you and us, HSBC Investment Funds As at June 30, 2019 (Canada) Inc. or your approved advisor. Further details can be found in the Fund’s Simplified Prospectus. Asset Mix Percentage Management fees paid to us were used to pay costs for of NAV managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, US Equities 55.26% International Equities 41.00% making brokerage arrangements for the purchase and sale of Canadian Equities 1.59% the investment portfolio and providing other services. The Cash & Equivalents 2.15% management fees also funded commission payments and other Total 100.00% compensation (collectively “distribution costs”) to sales

representatives and registered dealers and brokers, including > HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, Geographic Mix for units of the Fund bought and held by unitholders. Finally, we Percentage of NAV used management fees to pay for additional marketing and distribution services to the Fund. United States 55.26% Japan 9.28% For the six months ended June 30, 2019, approximately 40% of United Kingdom 6.99% the total management fees paid to us for all HSBC Pooled Funds Hong Kong 6.44% were used to fund distribution costs. France 5.15% Australia 5.06% Past Performance Germany 4.14% The performance information shown assumes that all Singapore 2.30% distributions made by the Fund in the periods shown were Spain 1.64% Canada 1.59% reinvested in additional securities of the Fund. The performance Cash & Equivalents 2.15% information does not take into account management fees, sales, Total 100.00% redemption, distribution, optional charges or expenses you may be charged outside of the Fund or the effect of any income tax you may have to pay as a result of your investment in the Fund that would have reduced returns or performance. The Fund’s past performance does not necessarily indicate how it will perform in the future.

3 HSBC Global Real Estate Equity Pooled Fund

Top 25 Holdings Percentage of NAV

Prologis Inc. 4.09% Duke Realty Corp. 3.19% Public Storage 2.93% Japan Real Estate Investment Corp. 2.83% CubeSmart 2.81% Nippon Building Fund Inc. 2.80% National Retail Properties Inc. 2.73% STORE Capital Corp. 2.71% Realty Income Corp. 2.69% Deutsche Wohnen AG 2.62% Klepierre 2.62% Unibail-Rodamco-Westfield 2.53% Ventas Inc. 2.33% Camden Property Trust 2.31% Welltower Inc. 2.30% AvalonBay Communities Inc. 2.27% Equity Residential 2.27% HCP Inc. 2.27% Essex Property Trust Inc. 2.26% United Urban Investment Corp. 1.98% The Link REIT 1.87% Segro PLC 1.83% Kimco Realty Corp. 1.77% Alexandria Real Estate Equities Inc. 1.75% Douglas Emmett Inc. 1.73% Total of Top 25 Holdings 61.49%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.

4 For more information How to reach us You can find more information about the Funds in the HSBC Global Asset Management (Canada) Limited Funds’ Simplified Prospectus, Annual Information Form, Vancouver Annual and Semi-Annual Report and Fund Facts. You can rd get a copy of these documents at no cost by calling us 3 Floor, 885 West Georgia Street toll-free at 1-888-390-3333, contacting your authorized Vancouver, BC V6C 3E8 dealer or visiting our website Toronto at www.assetmanagement.hsbc.ca. Suite 300, 70 York Street These documents and other information about the Funds, Toronto, ON M5J 1S9 such as information circulars and material contracts, are Toll-free: 1-888-390-3333 also available at www.sedar.com. Fax: 604-669-2756 Copies of the Annual Report and Semi-Annual Report, Email: [email protected] Simplified Prospectus, Annual Information Form, Annual Website: www.assetmanagement.hsbc.ca and Interim Management Report of Fund Performance and Fund Facts are available on our website at www.assetmanagement.hsbc.ca.

Issued by

HSBC Global Asset Management (Canada) Limited (2019-08) DFS