HSBC Canadian Money Market Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Global Asset Management (Canada) Limited We increased our defensive position to the corporate debt rd 3 Floor, 885 West Georgia Street sector over the first half of 2020, focusing on high-quality issues Vancouver, BC V6C 3E8 and increasing the Fund’s exposure to Government of Canada You may also contact us using one of these methods to request a holdings and overnight securities. As risk sentiment rose and copy of the Fund’s interim financial report, proxy voting policies economic data improved in the second half of the year, we and procedures, proxy voting disclosure record or quarterly lowered our government holdings and added credit exposure. portfolio disclosure. We also aimed to add value by adjusting the weighted-average Investment Objective and Strategies maturity (or duration) of the portfolio holdings relative to its The fundamental investment objective of this Fund is to provide benchmark. Over the course of the year, the Fund’s duration a high level of monthly interest income while preserving capital. was substantially higher than its blended 45-day benchmark, which helped the Fund outperform as we had expected some To achieve its objectives, the Fund invests primarily in high- rate cuts from the Bank of Canada in the first quarter due to quality, short-term Canadian fixed income securities rising concerns over the economic impact of COVID-19. denominated in Canadian dollars such as treasury bills and other fixed income securities issued or guaranteed by the Recent Developments Government of Canada or a province of Canada, a foreign Although 2020 may have been one of the most challenging government or related foreign government agency, or a years many have faced, it is encouraging to have ended the Canadian or foreign corporation. The Fund may invest up to year with a ray of hope. Vaccination programs mean 2021 33% of its assets in Canadian-dollar-denominated foreign could well be defined by markets – and our lives – slowly securities. All of the Fund’s securities will have a term to returning to normal. We are calling this phase the “restoration maturity of 365 days or less, with an average term to maturity economy,” a scenario where global growth moderates after the of no more than 60 days. extraordinary rebound experienced over the past nine months.

Risk Many economies will recover to pre-COVID-19 levels of activity The risks of investing in this Fund remain as discussed in the in 2021, although we don’t expect to reach this milestone in Simplified Prospectus. During the year, there were no material Canada until early 2022. We maintain our view that the changes to the Fund that affected the overall risk level of the economic fallout from the pandemic is likely to dissipate as Fund. aggressive policy moves continue to support liquidity and This Fund is suitable for investors who want to earn interest economic momentum. income and preserve their capital, have a short-term investment The Bank of Canada has committed to keeping rates low and its time horizon and have a low tolerance for risk. support in place until the economic recovery is well underway. Results of Operations While negative interest rates remain an option in the Bank’s As of December 31, 2020, the Fund's net assets increased by toolkit, a more likely scenario should they want to provide more 39.2% to $368.5 million from $264.7 million at the end of 2019. monetary stimulus would be to lower the effective lower bound Net contributions and positive investment performance resulted in to 0.10% or 0.15% from the current 0.25% level. an overall increase in net asset value.

1 HSBC Canadian Money Market Fund

During the period there has been a change in composition to transactions are performed in accordance with our policy on the Independent Review Committee (the “IRC”). Effective Purchases of Securities Underwritten by a Related Party. During March 25, 2020, Ms. Louise Tymocko was appointed to the IRC the year, the Fund did not invest in any such securities. as a member, replacing Mr. William (Bill) Bakk who left as his term of office expired. Ms. Lisa Pankratz also took over as Chair Financial Highlights of the IRC effective March 25, 2020. In addition, effective The following tables show selected key financial information February 18, 2021, Ms. Sharon Morrisroe was also appointed to about the Fund and are intended to help you understand the the IRC as a member, replacing Mr. Neil de Gelder who left Fund’s financial performance for the past five years. This following the expiry of his term in March of 2021. information is derived from the Fund’s audited annual financial statements. The information in the following tables is based on Related Party Transactions prescribed regulations, and, as a result, is not expected to add We, on behalf of the Fund, or the Fund Manager, may, from down due to the increase/decrease in net assets from time to time, enter into transactions or arrangements with or operations being based on average units outstanding during the involving other members of the HSBC Group or other people or year and all other numbers being based on actual units companies related or connected to us or the Fund. To proceed outstanding at the relevant point in time. with the transactions, the Fund relies on the positive recommendation of the Fund’s Independent Review Committee. A condition of this positive recommendation is that the transactions HSBC Canadian Money Market Fund – Investor (1) are performed in accordance with our policy on Related Party Series – Net Assets per Unit Transactions. For more general information on persons related Year(s) ended December 31 to the Fund and the types of potential transactions, see the 2020 2019 2018 2017 2016 Fund’s Simplified Prospectus. Net assets per unit, beginning of year (2) $10.00 $10.00 $10.00 $10.00 $10.00 The following is a summary of current transactions and arrangements with entities that are related to us or the Fund. Increase (decrease) from operations: Total revenue 0.09 0.19 0.16 0.09 0.07 Manager, Trustee and Investment Advisor Total expenses (0.04) (0.05) (0.08) (0.07) (0.06) We are the manager, trustee and primary investment advisor of Realized gains (losses) – – – – – the Fund. As manager, we manage the overall business and Unrealized gains (losses) – – – – – operations of the Fund. As trustee, we hold legal title to the Total increase (decrease) from property of the Fund on your behalf. As primary investment operations (2) $0.05 $0.14 $0.08 $0.02 $0.01 advisor, we provide investment advice and portfolio Distributions to unitholders: management services to the Fund. We receive a fee from the From net investment income Fund for these services based on assets under management, (excluding dividends) (0.05) (0.14) (0.08) (0.02) (0.01) From dividends – – – – – calculated daily and paid monthly. From capital gains – – – – – Return of capital – – – – – Distribution Services Total annual distributions (2,3) $(0.05) $(0.14) $(0.08) $(0.02) $(0.01) The Fund is distributed through us, HSBC Investment Funds (Canada) Inc. (our wholly owned subsidiary and affiliate) and Net assets per unit at December 31 of year shown (2) $10.00 $10.00 $10.00 $10.00 $10.00 HSBC Securities (Canada) Inc. (an affiliate) directly or through its division, HSBC InvestDirect. We pay distribution and servicing fees to them based on the amount of assets held in Ratios and Supplemental Data the investor’s account, and additionally, in some cases, on the 2020 2019 2018 2017 2016 amount of the initial purchase. If you hold units of this Fund Total net asset value (in and/or other HSBC Mutual Funds in a registered plan with 000s) (4) $85,507 $79,791 $73,814 $80,968 $94,686 HSBC Investment Funds (Canada) Inc., they may charge you an Number of units annual fee to cover the annual administration costs of the plan. outstanding (in 000s) (4) 8,551 7,979 7,381 8,097 9,469 We permit HSBC Investment Funds (Canada) Inc. to collect Management expense ratio these fees by redeeming sufficient units of the Fund with the ("MER") (5) 0.36% 0.49% 0.79% 0.61% 0.56% MER before waivers or highest market value in your registered plan. absorptions (5) 1.00% 1.01% 1.01% 1.00% 0.98% Trading expense ratio (6) n/a n/a n/a n/a n/a Purchases of Securities Underwritten by a Related Party Net asset value per unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 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 proceed with these transactions, the Fund relies on the approval of the Fund’s Independent Review Committee by way of Standing Instruction. A condition of this approval is that the

2 HSBC Canadian Money Market Fund

HSBC Canadian Money Market Fund – HSBC Canadian Money Market Fund – Manager Premium Series – Net Assets per Unit(1) Series – Net Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $10.00 $10.00 $10.00 $10.00 $10.00 year (2) $10.00 $10.00 $10.00 $10.00 $10.00 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.08 0.18 0.16 0.09 0.07 Total revenue 0.09 0.19 0.16 0.08 0.07 Total expenses (0.03) (0.03) (0.05) (0.05) (0.04) Total expenses (0.03) (0.03) (0.06) (0.05) (0.05) Realized gains (losses) – – – – – Realized gains (losses) – – – – – Unrealized gains (losses) – – – – – Unrealized gains (losses) – – – – – Total increase (decrease) from Total increase (decrease) from operations (2) $0.05 $0.15 $0.11 $0.04 $0.03 operations (2) $0.06 $0.16 $0.10 $0.03 $0.02 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) (0.05) (0.15) (0.11) (0.04) (0.03) (excluding dividends) (0.06) (0.16) (0.10) (0.03) (0.02) From dividends – – – – – From dividends – – – – – From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $(0.05) $(0.15) $(0.11) $(0.04) $(0.03) Total annual distributions (2,3) $(0.06) $(0.16) $(0.10) $(0.03) $(0.02) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $10.00 $10.00 $10.00 $10.00 $10.00 31 of year shown (2) $10.00 $10.00 $10.00 $10.00 $10.00

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net asset value (in 000s) (4) $68 $68 $74 $74 $747 000s) (4) $193,296 $109,576 $27,889 $38,060 $39,046 Number of units outstanding (in Number of units 000s) (4) 7 7 7 7 75 outstanding (in 000s) (4) 19,330 10,958 2,789 3,806 3,905 Management expense ratio Management expense ("MER") (5) 0.26% 0.35% 0.65% 0.50% 0.51% ratio ("MER") (5) 0.26% 0.28% 0.46% 0.47% 0.43% MER before waivers or MER before waivers or absorptions (5) 1.65% 2.42% 1.94% 0.85% 0.78% absorptions (5) 0.46% 0.47% 0.46% 0.47% 0.43% Trading expense ratio (6) n/a n/a n/a n/a n/a Trading expense ratio (6) 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

Net asset value per unit (4) $10.00 $10.00 $10.00 $10.00 $10.00

3 HSBC Canadian Money Market Fund

HSBC Canadian Money Market Fund – the year, we waived certain fees and expenses otherwise payable Institutional Series – Net Assets per Unit(1) by this Fund. We will continue to waive management and operating Year(s) ended December 31 fees until such time as market yields rise above the MER of the Fund. 2020 2019 2018 2017 2016 (6) The trading expense ratio represents total commissions and other Net assets per unit, beginning of portfolio transaction costs expressed as an annualized percentage year (2) $10.00 $10.00 $10.00 $10.00 $10.00 of daily average net asset value during the year. Increase (decrease) from operations: Management Fees Total revenue 0.09 0.19 0.16 0.09 0.07 For the year ended December 31, 2020, the Fund paid us Total expenses (0.01) (0.01) (0.01) (0.01) – management fees of $1,419,524. The management fee for each Realized gains (losses) – – – – – Unrealized gains (losses) – – – – – series is calculated as a percentage of the daily net asset value for that series. The fees are reduced, where required, so that Total increase (decrease) from operations (2) $0.08 $0.18 $0.15 $0.08 $0.07 these fees do not duplicate fees payable by mutual funds in Distributions to unitholders: which the Fund invests for the same service. From net investment income The Fund’s management fees were used by us to pay costs for (excluding dividends) (0.08) (0.18) (0.15) (0.08) (0.07) From dividends – – – – – managing the investment portfolio, providing investment From capital gains – – – – – analysis and recommendations, making investment decisions, Return of capital – – – – – making brokerage arrangements for the purchase and sale of Total annual distributions (2,3) $(0.08) $(0.18) $(0.15) $(0.08) $(0.07) the investment portfolio and providing other services. The Net assets per unit at December management fees also funded commission payments and other 31 of year shown (2) $10.00 $10.00 $10.00 $10.00 $10.00 compensation (collectively “distribution costs”) to sales

representatives and registered dealers and brokers, including HSBC Investment Funds (Canada) Inc., for units of the Fund Ratios and Supplemental Data bought and held by unitholders. Finally, we used management 2020 2019 2018 2017 2016 fees to pay for additional marketing and distribution services to Total net asset value (in the Fund. 000s) (4) $89,596 $75,273 $70,883 $74,387 $62,727 Number of units For the year ended December 31, 2020, approximately 46% of outstanding (in 000s) (4) 8,960 7,527 7,088 7,439 6,273 the total management fees collected from all HSBC Mutual Management expense ratio Funds were used to fund distribution costs. In comparison, for ("MER") (5) 0.08% 0.09% 0.08% 0.08% 0.04% the Fund, such distribution costs represented 39% of the MER before waivers or absorptions (5) 0.08% 0.09% 0.08% 0.08% 0.04% management fees collected. This may vary by series depending Trading expense ratio (6) n/a n/a n/a n/a n/a on the assets invested in each of the series. Net asset value per unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 (1) This information is derived from the Fund’s audited annual financial Past Performance statements. All balances are stated in International Financial The performance information shown assumes that all Reporting Standards (“IFRS”). Under IFRS, the net assets per unit distributions made by the Fund in the years shown were presented in the financial statements is the same as the net asset reinvested in additional securities of the Fund. The performance value calculated for fund pricing purposes. information does not take into account sales, redemption, (2) Net assets per unit and distributions per unit are based on the distribution, optional charges or expenses you may be charged actual number of units outstanding for the relevant series at the outside of the Fund or the effect of any income tax you may relevant time. The increase/decrease in net assets from operations have to pay as a result of your investment in the Fund that per unit is based on the weighted average number of units would have reduced returns or performance. The performance outstanding for the relevant series over the fiscal year. of different fund series may vary for a number of reasons, (3) Distributions are automatically reinvested in additional units of the including differences in management fees and expenses. The Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. Fund’s past performance does not necessarily indicate how it will perform in the future. (4) This information is provided as at December 31 of the year shown. (5) MER is based on total expenses (excluding distributions, Year-by-Year Returns commissions and other portfolio transaction costs) for the stated Years ended December 31 year and is expressed as an annualized percentage of daily average The following bar charts show the Fund’s performance for each net asset value during the year. The MER may vary from one mutual fund to another and from one series of units to another. In of the years shown, and illustrate how the Fund’s performance changed from year to year. In percentage terms, the bar charts show how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year.

4 HSBC Canadian Money Market Fund

Annual Returns – Investor Series Summary of Investment Portfolio

10% As at December 31, 2020

Asset Mix Percentage 5% of NAV

Government Bonds 59.96% Corporate Bonds 40.49% 1.4% 0.8% Cash & Equivalents -0.45% 0.2% 0.3% 0.5% 0.1% 0.1% 0.1% 0.1% 0.1% Total 100.00% 0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Top 25 Holdings Annual Returns – Premium Series Percentage of NAV 10% Canada Housing Trust No. 1, 1.25%, 06/15/2021 20.07% Fédération des caisses Desjardins du Québec, 0.25%, 01/04/2021 7.87% Royal Bank of Canada, 0.20%, 01/04/2021 4.52% 5% Municipal Finance Authority of British Columbia, 0.21%, 01/13/2021 3.66% Province of British Columbia, 0.00%, 06/18/2021 3.52% 1.6% 1.1% BNP Paribas Canada, 0.28%, 02/02/2021 2.44% 0.7% 0.6% 0.6% 0.6% 0.3% 0.3% 0.4% 0.6% Municipal Finance Authority of British Columbia, 0.20%, 0% 01/06/2021 2.31% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ontario Teachers' Finance Trust, 0.32%, 02/09/2021 2.30% City of Toronto, 3.50%, 12/06/2021 2.24% Government of Canada, 0.29%, 02/04/2021 2.17% Annual Returns – Manager Series Bank of China, 0.50%, 01/15/2021 1.90% 10% Toronto-Dominion Bank, 2.05%, 03/08/2021 1.88% China Construction Bank Toronto Branch, 0.33%, 02/05/2021 1.87% Mizuho Bank, Ltd., Canada Branch, 0.24%, 01/29/2021 1.82% Bank of Montreal, 3.40%, 04/23/2021 1.81% Municipal Finance Authority of British Columbia, 0.17%, 5% 02/03/2021 1.63% National Bank of Canada, 0.24%, 01/15/2021 1.63% Nestlé Capital Canada Ltd., 0.20%, 01/14/2021 1.63% 1.5% 1.0% Province of Ontario, 1.76%, 01/06/2021 1.60% 0.6% 0.4% 0.4% 0.3% 0.4% 0.1% 0.2% 0.3% Toronto-Dominion Bank, 2.62%, 12/22/2021 1.39% 0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Canadian Imperial Bank of Commerce, 1.90%, 04/26/2021 1.36% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ontario Teachers' Finance Trust, 0.23%, 01/26/2021 1.36% Province of Ontario, 0.20%, 01/27/2021 1.36% Annual Returns – Institutional Series Province of Quebec, 0.00%, 04/01/2021 1.36% MUFG Bank, Ltd., Canada Branch, 0.31%, 03/10/2021 1.33% 10% Total of Top 25 Holdings 75.03%

1.5% 1.8% 1.0% 1.0% 1.0% 1.0% 0.7% 0.7% 0.8% 0.8% 0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

5 HSBC Canadian Money Market Fund

Sources and Index Disclaimers Sources: HSBC Global Asset Management (Canada) Limited, Bloomberg, MSCI, FTSE Global Debt Capital Markets Inc., Bank of Canada, ICE, J.P. Morgan and BMO Capital Markets. 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. London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2020. 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. The S&P indices are products of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by HSBC Global Asset Management Ltd. Copyright © 2020 by S&P Dow Jones Indices LLC, a subsidiary of the McGraw-Hill Companies, Inc., and/or its affiliates. All rights reserved. Redistribution, reproduction and/or photocopying in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC nor its affiliates make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices nor any of its affiliates or third-party licensors shall have any liability for any errors, omissions or interruptions of any index or the data included therein. Bloomberg Barclay indices and their associated data. Copyright © 2020 Bloomberg Index Services Limited, Bloomberg Finance L.P., their affiliates and/or third-party licensors (“Licensors”). Used with permission. All rights reserved. Licensors make no warranties regarding use of or reliance upon such index data and shall have no liability in connection therewith. ICE BofA, used with permission. ICE BofA is licensing the ICE BofA Indices “as is,” makes no warranties regarding same, does not guarantee the suitability, quality, accuracy, timeliness and/or completeness of the ICE BofA Indices or any data included in, related to or derived therefrom, assumes no liability in connection with their use, and does not sponsor, endorse or recommend HSBC Global Asset Management (Canada) Limited, or any of its products or services. Information has been obtained from sources believed to be reliable but J.P. Morgan does not warrant its completeness or accuracy. The Index is used with permission. The Index may not be copied, used or distributed without J.P. Morgan’s prior written approval. Copyright 2020, J.P. Morgan Chase & Co. All rights reserved.

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 Report and Semi-Annual Report and Fund Facts. You can get a copy of these documents, as well as the 3rd Floor, 885 West Georgia Street Funds’ Financial Statements, at no cost by calling us toll- Vancouver, BC V6C 3E8 free at 1-888-390-3333, contacting your authorized Toronto dealer or visiting our website Suite 300, 70 York Street at www.assetmanagement.hsbc.ca. Toronto, ON M5J 1S9 These documents and other information about the Funds, Toll-free: 1-888-390-3333 such as information circulars and material contracts, are Fax: 604-669-2756 also available at www.sedar.com. Email: [email protected] Copies of the Annual Report and Semi-Annual Report, Website: www.assetmanagement.hsbc.ca Simplified Prospectus, Annual Information Form, Annual 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 limited to, 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. Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued by HSBC Global Asset Management (Canada) Limited

HSBC U.S. Dollar Money Market Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC U.S. Dollar Money Market Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the weighted composite consisting of the FTSE 1 Month US T-Bill Fund; we, us and our refer to HSBC Global Asset Management Index (75%) and FTSE 3 Month US T-Bill Index (25%). The (Canada) Limited; and the Fund refers to the HSBC U.S. Dollar Fund’s returns are after the deduction of fees and expenses, Money Market Fund. while the benchmark’s returns do not include any costs of investing. See the Past Performance section for the returns of We are the manager, trustee and primary investment advisor of other series of the Fund, which may vary due to differences in the Fund. management fees and expenses.

Introduction Lower portfolio and market returns compared to 2019 reflect This Annual Management Report of Fund Performance contains the lower investable rate environment following the US Federal financial highlights but does not contain the complete annual Reserve’s emergency rate cuts in March 2020 from 1.50% to financial statements of the Fund. You may obtain a copy of the 0.05%. annual financial statements at your request, at no cost, by calling us toll-free at 1-888-390-3333, by visiting our website at We increased our defensive position to the corporate debt www.assetmanagement.hsbc.ca, by visiting the SEDAR sector over the first half of 2020, focusing on high-quality issues website at www.sedar.com or by writing to us at: and increasing the Fund’s exposure to federal government holdings and overnight securities. As risk sentiment rose and HSBC Global Asset Management (Canada) Limited economic data improved in the second half of the year, we rd 3 Floor, 885 West Georgia Street lowered our government holdings and added credit exposure. Vancouver, BC V6C 3E8 We also aimed to add value by adjusting the weighted-average You may also contact us using one of these methods to request a maturity (or duration) of the portfolio holdings relative to its copy of the Fund’s interim financial report, proxy voting policies benchmark. Over the course of the year, the Fund’s duration and procedures, proxy voting disclosure record or quarterly was substantially higher than its blended 45-day benchmark, portfolio disclosure. which helped the Fund outperform as we expected some rate Investment Objective and Strategies cuts from the US Federal Reserve in the first quarter due to rising concerns over the economic impact of COVID-19. The fundamental investment objective of this Fund is to provide interest income while preserving capital. Recent Developments To achieve its objectives, the Fund invests primarily in US Although 2020 may have been one of the most challenging dollar-denominated treasury bills and other short-term fixed years many have faced, it is encouraging to have ended the income securities. All of the Fund’s securities will have a term year with a ray of hope. Vaccination programs mean 2021 to maturity of 365 days or less, with an average term to could well be defined by markets – and our lives – slowly maturity of no more than 60 days. returning to normal. We are calling this phase the “restoration economy,” a scenario where global growth moderates after the Risk extraordinary rebound experienced over the past nine months. The risks of investing in the Fund remain as discussed in the Simplified Prospectus. During the year, there were no material We expect the recovery will take many economies back to pre changes to the Fund that affected the overall risk level of COVID-19 levels of activity in 2021. We maintain our view that the Fund. the economic fallout from the pandemic is likely to dissipate as aggressive policy moves continue to support liquidity and This Fund is suitable for investors with U.S. dollars to invest and economic momentum. who want to earn interest income and preserve their capital, have a short-term investment time horizon and have a low The US Federal Reserve has committed to keeping rates low tolerance for risk. and its support in place until the economic recovery is well underway. In addition, they are prepared to adjust the stance of Results of Operations monetary policy and use their full range of tools to support the As of December 31, 2020, the Fund's net assets increased by US economy and achieve their goals of maximum employment 32.1% to $125.6 million from $95.1 million at the end of 2019. and price stability. Net contributions and positive investment performance resulted in an overall increase in net asset value. During the period there has been a change in composition to the Independent Review Committee (the “IRC”). Effective Investment Performance March 25, 2020, Ms. Louise Tymocko was appointed to the IRC The HSBC U.S. Dollar Money Market Fund (Investor as a member, replacing Mr. William (Bill) Bakk who left as his Series) rose 0.32% for the 12 months ending December 31, term of office expired. Ms. Lisa Pankratz also took over as Chair 2020, while its benchmark rose 0.48%. The benchmark is a of the IRC effective March 25, 2020. In addition, effective

1 HSBC U.S. Dollar Money Market Fund

February 18, 2021, Ms. Sharon Morrisroe was also appointed to Financial Highlights the IRC as a member, replacing Mr. Neil de Gelder who left The following tables show selected key financial information following the expiry of his term in March of 2021. about the Fund and are intended to help you understand the Fund’s financial performance for the past five years. This Related Party Transactions information is derived from the Fund’s audited annual financial We, on behalf of the Fund, or the Fund Manager, may, from statements. The information in the following tables is based on time to time, enter into transactions or arrangements with or prescribed regulations, and, as a result, is not expected to add involving other members of the HSBC Group or other people or down due to the increase/decrease in net assets from companies related or connected to us or the Fund. To proceed operations being based on average units outstanding during the with the transactions, the Fund relies on the positive year and all other numbers being based on actual units recommendation of the Fund’s Independent Review Committee. A outstanding at the relevant point in time. condition of this positive recommendation is that the transactions are performed in accordance with our policy on Related Party All figures are stated in US dollars.

Transactions. For more general information on persons related to the Fund and the types of potential transactions, see the Fund’s Simplified Prospectus. HSBC U.S. Dollar Money Market Fund – Investor Series – Net Assets per Unit(1) The following is a summary of current transactions and Year(s) ended December 31 arrangements with entities that are related to us or the Fund. 2020 2019 2018 2017 2016 Net assets per unit, beginning of Manager, Trustee and Investment Advisor year (2) $10.00 $10.00 $10.00 $10.00 $10.00 We are the manager, trustee and primary investment advisor of Increase (decrease) from the Fund. As manager, we manage the overall business and operations: operations of the Fund. As trustee, we hold legal title to the Total revenue 0.08 0.24 0.20 0.11 0.05 property of the Fund on your behalf. As primary investment Total expenses (0.05) (0.09) (0.09) (0.08) (0.04) advisor, we provide investment advice and portfolio Realized gains (losses) – – – – – Unrealized gains (losses) – – – – – management services to the Fund. We receive a fee from the Total increase (decrease) from Fund for these services based on assets under management, operations (2) $0.03 $0.15 $0.11 $0.03 $0.01 calculated daily and paid monthly. Distributions to unitholders: From net investment income Distribution Services (excluding dividends) (0.03) (0.15) (0.11) (0.03) (0.01) The Fund is distributed through us, HSBC Investment Funds From dividends – – – – – (Canada) Inc. (our wholly owned subsidiary and affiliate) and From capital gains – – – – – HSBC Securities (Canada) Inc. (an affiliate) directly or through Return of capital – – – – – its division, HSBC InvestDirect. We pay distribution and Total annual distributions (2,3) $(0.03) $(0.15) $(0.11) $(0.03) $(0.01) servicing fees to them based on the amount of assets held in Net assets per unit at December 31 of year shown (2) $10.00 $10.00 $10.00 $10.00 $10.00 the investor’s account, and additionally, in some cases, on the amount of the initial purchase. If you hold units of this Fund and/or other HSBC Mutual Funds in a registered plan with Ratios and Supplemental Data HSBC Investment Funds (Canada) Inc., they may charge you an 2020 2019 2018 2017 2016 annual fee to cover the annual administration costs of the plan. Total net asset value (in We permit HSBC Investment Funds (Canada) Inc. to collect 000s) (4) $13,170 $14,587 $12,834 $15,852 $21,759 these fees by redeeming sufficient units of the Fund with the Number of units highest market value in your registered plan. outstanding (in 000s) (4) 1,317 1,459 1,283 1,585 2,176 Management expense ratio Purchases of Securities Underwritten by a Related Party ("MER") (5) 0.51% 0.94% 0.94% 0.76% 0.41% MER before waivers or The Fund may invest in certain securities that are underwritten, absorptions (5) 1.24% 1.28% 1.49% 1.39% 1.18% in whole or in part, by entities that are a related party to us. To Trading expense ratio (6) 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 proceed with these transactions, the Fund relies on the approval of the Fund’s Independent Review Committee by way of Standing Instruction. A condition of this approval is that the transactions are performed in accordance with our policy on Purchases of Securities Underwritten by a Related Party. During the year, the Fund did not invest in any such securities.

2 HSBC U.S. Dollar Money Market Fund

HSBC U.S. Dollar Money Market Fund – HSBC U.S. Dollar Money Market Fund – Premium Series – Net Assets per Unit(1) Manager Series – Net Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020* 2019* 2018* 2017* 2016* Net assets per unit, beginning of Net assets per unit, beginning of year (2) $10.00 $10.00 $10.00 $10.00 $10.00 year (2) $– $– $– $– $– Increase (decrease) from Increase (decrease) from operations: operations: Total revenue – – – – – Total revenue 0.07 0.22 0.20 0.11 0.06 Total expenses – – – – – Total expenses (0.03) (0.06) (0.08) (0.07) (0.04) Realized gains (losses) – – – – – Realized gains (losses) – – – – – Unrealized gains (losses) – – – – – Unrealized gains (losses) – – – – – Total increase (decrease) from Total increase (decrease) from operations (2) $– $– $– $– $– operations (2) $0.04 $0.16 $0.12 $0.04 $0.02 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) – – – – – (excluding dividends) (0.04) (0.16) (0.12) (0.04) (0.02) From dividends – – – – – From dividends – – – – – From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $– $– $– $– $– Total annual distributions (2,3) $(0.04) $(0.16) $(0.12) $(0.04) $(0.02) Net assets per unit at December 31 Net assets per unit at December of year shown (2) $– $– $– $– $–

31 of year shown (2) $10.00 $10.00 $10.00 $10.00 $10.00

Ratios and Supplemental Data Ratios and Supplemental Data 2020* 2019* 2018* 2017* 2016* 2020 2019 2018 2017 2016 Total net asset value (in 000s) (4) $– $– $– $– $– Total net asset value (in Number of units outstanding (in 000s) (4) $105,212 $80,510 $9,103 $8,456 $11,028 000s) (4) – – – – – Number of units outstanding Management expense ratio (in 000s) (4) 10,521 8,051 910 846 1,103 ("MER") (5) – – – – – Management expense ratio MER before waivers or ("MER") (5) 0.29% 0.55% 0.77% 0.67% 0.38% absorptions (5) – – – – – MER before waivers or Trading expense ratio (6) – – n/a n/a n/a absorptions (5) 0.56% 0.55% 0.83% 0.73% 0.56% Net asset value per unit (4) $– $– $– $– $– Trading expense ratio (6) n/a n/a n/a n/a n/a * The Manager Series was fully redeemed during 2015. In the Net asset value per unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 subsequent years, there were no unitholders for the full calendar year; however, it remains in offer as at period-end.

3 HSBC U.S. Dollar Money Market Fund

HSBC U.S. Dollar Money Market Fund – the year, we waived certain fees and expenses otherwise payable Institutional Series – Net Assets per Unit(1) by this Fund. We will continue to waive management and operating Year(s) ended December 31 fees until such time as market yields rise above the MER of the Fund. 2020** 2019** 2018** 2017 2016 (6) The trading expense ratio represents total commissions and other Net assets per unit, beginning of portfolio transaction costs expressed as an annualized percentage year (2) $10.00 $10.00 $10.00 $10.00 $10.00 of daily average net asset value during the year. Increase (decrease) from operations: Management Fees Total revenue 0.03 0.07 0.10 0.11 0.05 For the year ended December 31, 2020, the Fund paid us Total expenses (0.01) – (0.02) (0.03) (0.02) management fees of $564,975. The management fee for each Realized gains (losses) – – – – – Unrealized gains (losses) – – – – – series is calculated as a percentage of the daily net asset value for that series. The fees are reduced, where required, so that Total increase (decrease) from operations (2) $0.02 $0.07 $0.08 $0.08 $0.03 these fees do not duplicate fees payable by mutual funds in Distributions to unitholders: which the Fund invests for the same service. From net investment income The Fund’s management fees were used by us to pay costs for (excluding dividends) (0.02) (0.07) (0.08) (0.08) (0.03) From dividends – – – – – managing the investment portfolio, providing investment From capital gains – – – – – analysis and recommendations, making investment decisions, Return of capital – – – – – making brokerage arrangements for the purchase and sale of Total annual distributions (2,3) $(0.02) $(0.07) $(0.08) $(0.08) $(0.03) the investment portfolio and providing other services. The Net assets per unit at December management fees also funded commission payments and other 31 of year shown (2) $10.00 $– $– $10.00 $10.00 compensation (collectively “distribution costs”) to sales

representatives and registered dealers and brokers, including HSBC Investment Funds (Canada) Inc., for units of the Fund Ratios and Supplemental Data bought and held by unitholders. Finally, we used management 2020** 2019** 2018** 2017 2016 fees to pay for additional marketing and distribution services to Total net asset value (in 000s) (4) $7,220 $– $– $37 $36 the Fund. Number of units outstanding (in 000s) (4) 722 – – 4 4 For the year ended December 31, 2020, approximately 46% of Management expense ratio the total management fees collected from all HSBC Mutual ("MER") (5) 0.07% 0.13% 0.35% 0.31% 0.22% Funds were used to fund distribution costs. In comparison, for MER before waivers or the Fund, such distribution costs represented 49% of the absorptions (5) 0.14% 0.26% 1.36% 0.87% 0.29% Trading expense ratio (6) n/a n/a n/a n/a n/a management fees collected. This may vary by series depending Net asset value per unit (4) $10.00 $– $– $10.00 $10.00 on the assets invested in each of the series. ** The Institutional Series was fully redeemed during 2018. In the subsequent years, there were no unitholders for the full calendar Past Performance year; however, it remains in offer as at period-end. The performance information shown assumes that all (1) This information is derived from the Fund’s audited annual financial distributions made by the Fund in the years shown were statements. All balances are stated in International Financial reinvested in additional securities of the Fund. The performance Reporting Standards (“IFRS”). Under IFRS, the net assets per unit information does not take into account sales, redemption, presented in the financial statements is the same as the net asset distribution, optional charges or expenses you may be charged value calculated for fund pricing purposes. outside of the Fund or the effect of any income tax you may (2) Net assets per unit and distributions per unit are based on the have to pay as a result of your investment in the Fund that actual number of units outstanding for the relevant series at the would have reduced returns or performance. The performance relevant time. The increase/decrease in net assets from operations of different fund series may vary for a number of reasons, per unit is based on the weighted average number of units including differences in management fees and expenses. The outstanding for the relevant series over the fiscal year. Fund’s past performance does not necessarily indicate how it (3) Distributions are automatically reinvested in additional units of the will perform in the future. Fund; cash distributions are not available. (4) This information is provided as at December 31 of the year shown. Year-by-Year Returns (5) MER is based on total expenses (excluding distributions, Years ended December 31 commissions and other portfolio transaction costs) for the stated The following bar charts show the Fund’s performance for each year and is expressed as an annualized percentage of daily average of the years shown, and illustrate how the Fund’s performance net asset value during the year. The MER may vary from one changed from year to year. In percentage terms, the bar charts mutual fund to another and from one series of units to another. In show how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year.

4 HSBC U.S. Dollar Money Market Fund

Annual Returns – Investor Series Annual Returns – Institutional Series

10% 10%

5% 5%

1.4% 1.1% 0.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.3% 0.3% 0.2% 0.2% 0.1% 0.1% 0.2% 0.3% 0% 0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018* 2019* 2020*

* The Institutional Series was fully redeemed during 2018. In the sub Annual Returns – Premium Series sequent years, there were no unitholders for the full calendar year; however, it remains in offer as at period-end. 10% Summary of Investment Portfolio As at December 31, 2020

5% Asset Mix Percentage of NAV 1.8% 1.2% Corporate Bonds 57.38% 0.4% 0.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% Government Bonds 42.41% 0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Cash & Equivalents 0.21% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total 100.00%

Annual Returns – Manager Series Top 25 Holdings 10% Percentage of NAV

Government of Canada, 0.10%, 01/11/2021 23.08% Toronto-Dominion Bank, 0.07%, 01/04/2021 9.54% 5% Province of British Columbia, 0.25%, 03/19/2021 5.17% Province of Ontario, 2.55%, 02/12/2021 4.79% PSP Capital Inc., 0.19%, 04/01/2021 3.98% Kreditanstalt fur Wiederaufbau, 0.18%, 03/01/2021 2.78% 0.0% 0.0% 0.0% 0.0% PSP Capital Inc., 0.19%, 03/23/2021 2.78% 0% Royal Bank of Canada, 0.05%, 01/04/2021 2.59% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015* 2016* 2017* 2018* 2019* 2020* Province of Ontario, 2.50%, 09/10/2021 2.43% Nederlandse Waterschapsbank NV, 0.21%, 02/12/2021 2.39% * The Manager Series was fully redeemed during 2015. In the subse Province of British Columbia, 0.30%, 02/19/2021 2.38% quent years, there were no unitholders for the full calendar year; Nederlandse Waterschapsbank NV, 0.19%, 02/08/2021 2.03% however, it remains in offer as at period-end. Kreditanstalt fur Wiederaufbau, 0.14%, 01/05/2021 1.99% Royal Bank of Canada, 0.39%, 06/16/2021 1.92% Agricultural Bank of China NY Branch, 0.35%, 03/23/2021 1.91% Credit Industriel et Commercial, 0.25%, 04/19/2021 1.91% Caisse des Depots et Consignations, 0.19%, 04/16/2021 1.83% Cooperatieve Rabobank UA, 0.21%, 05/14/2021 1.83% PSP Capital Inc., 0.14%, 01/05/2021 1.78% Sumitomo Mitsui Banking Corporation, 0.21%, 01/19/2021 1.78% Erste Abwicklungsanstalt, 0.21%, 02/16/2021 1.59% Province of British Columbia, 0.37%, 01/26/2021 1.59% Province of British Columbia, 0.31%, 02/09/2021 1.59% FMS Wertmanagement, 0.22%, 01/12/2021 1.43% Royal Bank of Canada, 2.50%, 01/19/2021 1.42% Total of Top 25 Holdings 86.51%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

5 HSBC U.S. Dollar Money Market Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC Mortgage Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020 HSBC Mortgage Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the composite consisting of the FTSE Canada 1 Year Mortgage Fund; we, us and our refer to HSBC Global Asset Management Index (45%), FTSE Canada 3 Year Mortgage Index (25%), FTSE (Canada) Limited; and the Fund refers to the HSBC Canada 5 Year Mortgage Index (10%), FTSE Canada Short Term Mortgage Fund. Bond Index (10%) and FTSE Canada 91 Day T-Bill Index (10%), with a discount factor. The Fund’s returns are after the We are the manager, trustee and primary investment advisor of deduction of fees and expenses, while the benchmark’s returns the Fund. do not include any costs of investing. See the Past Performance Introduction section for the returns of other series of the Fund, which may This Annual Management Report of Fund Performance contains vary due to differences in management fees and expenses. financial highlights but does not contain the complete annual Although corporate credit spreads weakened in tandem with financial statements of the Fund. You may obtain a copy of the equities in the first quarter, the FTSE Canada Short Term Bond annual financial statements at your request, at no cost, by Index retraced all of the credit spread widening over the rest of calling us toll-free at 1-888-390-3333, by visiting our website at the year as attractive valuations and government support led to www.assetmanagement.hsbc.ca, by visiting the SEDAR strong demand for short-term corporate debt. Central banks website at www.sedar.com or by writing to us at: launched asset purchase programs to ensure well-functioning HSBC Global Asset Management (Canada) Limited financial markets, which absorbed the increased supply from 3rd Floor, 885 West Georgia Street federal and provincial issuers and provided strong tailwinds for Vancouver, BC V6C 3E8 corporate and provincial debt in the final three quarters of the year. Both the US Federal Reserve and Bank of Canada cut You may also contact us using one of these methods to request a overnight rates to near zero in the first quarter and have guided copy of the Fund’s interim financial report, proxy voting policies the markets to not expect a rate hike for the next few years. and procedures, proxy voting disclosure record or quarterly The Fund generated strong absolute performance as a result of portfolio disclosure. the team’s active investment process. Gross of fees, our Investment Objective and Strategies overweight position in longer-dated, three- to five-year The fundamental investment objective of this Fund is to provide mortgages was the primary source of outperformance. interest income while protecting invested capital. Recent Developments To achieve its objectives, the Fund invests primarily in We maintain our view that the economic fallout from the uninsured Canadian-dollar-denominated mortgages. The Fund pandemic is likely to dissipate as aggressive policy moves intends to purchase mortgages from HSBC Bank Canada (the continue to support liquidity and economic momentum. “Bank”) or its subsidiaries. If any mortgage purchased from the Although valuations for many segments in the Canadian fixed Bank or its subsidiaries is in default for 90 days or more, the income universe are close to pre-COVID-19 levels, we still see Bank will repurchase those mortgages from the Fund. pockets of the credit market that remain attractive, as well as duration opportunities. We expect policymakers to remain Risk highly accommodative with monetary policy well into a The risks of investing in the Fund remain as discussed in the recovery, which will help assets with beneficial carry profiles, as Simplified Prospectus. During the year, there were no material investors seek income in a near-zero interest rate environment. changes to the Fund that affected the overall risk level of the Fund. Compared to the benchmark allocation, we hold a modestly overweight position in mortgages, predominantly in longer- This Fund is suitable for investors who want to earn interest dated mortgages, given their attractive valuations compared to income and protect their capital, have a short-term investment government bonds. We believe the HSBC Mortgage Fund time horizon and have a low tolerance for risk in their returns. continues to look attractive compared to the FTSE Canada Short Term Bond Index given the still historically large yield Results of Operations advantage carried by the Fund despite its conservative risk As of December 31, 2020, the Fund's net assets increased by profile. The Fund continues to hold high levels of liquidity 14.8% to $2,498.1 million from $2,176.4 million at the end of despite the normalization in financial markets. 2019. Net contributions and positive investment performance resulted in an overall increase in net asset value. During the period there has been a change in composition to the Independent Review Committee (the “IRC”). Effective Investment Performance March 25, 2020, Ms. Louise Tymocko was appointed to the IRC The HSBC Mortgage Fund (Investor Series) rose 2.83% for the as a member, replacing Mr. William (Bill) Bakk who left as his 12 months ending December 31, 2020, while the benchmark term of office expired. Ms. Lisa Pankratz also took over as Chair rose 3.74% over the same period. The benchmark is a weighted of the IRC effective March 25, 2020. In addition, effective

1 HSBC Mortgage Fund

February 18, 2021, Ms. Sharon Morrisroe was also appointed to of the mortgages purchased from the Bank. During the year the IRC as a member, replacing Mr. Neil de Gelder who left ended December 31, 2020, the Fund paid $1,845,149 in following the expiry of his term in March of 2021. administration fees to the Bank (December 31, 2019, $1,594,009). Related Party Transactions We, on behalf of the Fund, or the Fund Manager, may, from Distribution Services time to time, enter into transactions or arrangements with or The Fund is distributed through us, HSBC Investment Funds involving other members of the HSBC Group or other people or (Canada) Inc. (our wholly owned subsidiary and affiliate) and companies related or connected to us or the Fund. To proceed HSBC Securities (Canada) Inc. (an affiliate) directly or through with the transactions, the Fund relies on the positive its division, HSBC InvestDirect. We pay distribution and recommendation of the Fund’s Independent Review Committee. A servicing fees to them based on the amount of assets held in condition of this positive recommendation is that the transactions the investor’s account, and additionally, in some cases, on the are performed in accordance with our policy on Related Party amount of the initial purchase. If you hold units of this Fund Transactions. For more general information on persons related and/or other HSBC Mutual Funds in a registered plan with to the Fund and the types of potential transactions, see the HSBC Investment Funds (Canada) Inc., they may charge you an Fund’s Simplified Prospectus. annual fee to cover the annual administration costs of the plan. We permit HSBC Investment Funds (Canada) Inc. to collect The following is a summary of current transactions and these fees by redeeming sufficient units of the Fund with the arrangements with entities that are related to us or the Fund. highest market value in your registered plan. Manager, Trustee and Investment Advisor Purchases of Securities Underwritten by a Related Party We are the manager, trustee and primary investment advisor of During the year, the Fund invested in certain securities that the Fund. As manager, we manage the overall business and were underwritten, in whole or in part, by entities that are a operations of the Fund. As trustee, we hold legal title to the related party to us. To proceed with the transactions, the Fund property of the Fund on your behalf. As primary investment relied on the approval of the Fund’s Independent Review advisor, we provide investment advice and portfolio Committee by way of Standing Instruction. A condition of this management services to the Fund. We receive a fee from the approval was that the transactions were performed in Fund for these services based on assets under management, accordance with our policy on Purchases of Securities calculated daily and paid monthly. Underwritten by a Related Party. Mortgage Sale and Administration Services Financial Highlights The HSBC Mortgage Fund purchases its mortgages from HSBC The following tables show selected key financial information Bank Canada (“the Bank”) (of which we are a wholly owned about the Fund and are intended to help you understand the subsidiary) at an amount that will produce a yield to the HSBC Fund’s financial performance for the past five years. This Mortgage Fund of not more than 1/4 of 1% less than the information is derived from the Fund’s audited annual financial interest rate at which the Bank is making a similar commitment statements. The information in the following tables is based on at the time of purchase. The lesser yield of 1/4 of 1% is in prescribed regulations, and, as a result, is not expected to add consideration of the agreement by the Bank to repurchase the down due to the increase/decrease in net assets from mortgages under certain circumstances. This fee amounted to operations being based on average units outstanding during the $4,323,064 for the year ended December 31, 2020 year and all other numbers being based on actual units (December 31, 2019, $3,843,821). outstanding at the relevant point in time.

To proceed with the transactions, the Fund relied on the approval of the Fund’s Independent Review Committee by way of Standing Instruction. A condition of this approval was that the transactions were performed in accordance with National Policy No. 29 and in accordance with all requirements of various relief orders that have been granted to us by the regulators in relation to these kinds of transactions.

In addition, pursuant to an agreement between us, the Bank and the Fund, the Fund will pay the Bank a fee for the administration of the mortgages purchased from the Bank, which will be accrued and paid daily as an expense to the Fund. The administration fee is equal to 0.10% annually of the value

2 HSBC Mortgage Fund

HSBC Mortgage Fund – Investor Series – Net HSBC Mortgage Fund – Premium Series – Net Assets per Unit(1) Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $11.49 $11.37 $11.46 $11.62 $11.57 year (2) $10.15 $10.05 $10.13 $10.28 $10.24 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.29 0.31 0.30 0.29 0.32 Total revenue 0.25 0.27 0.27 0.26 0.28 Total expenses (0.18) (0.18) (0.18) (0.18) (0.18) Total expenses (0.11) (0.11) (0.10) (0.10) (0.10) Realized gains (losses) 0.02 (0.01) (0.06) (0.02) (0.01) Realized gains (losses) 0.02 (0.01) (0.05) (0.02) (0.01) Unrealized gains (losses) 0.20 0.14 (0.03) (0.14) 0.06 Unrealized gains (losses) 0.15 0.12 (0.03) (0.13) 0.07 Total increase (decrease) from Total increase (decrease) from operations (2) $0.33 $0.26 $0.03 $(0.05) $0.19 operations (2) $0.31 $0.27 $0.09 $0.01 $0.24 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) (0.11) (0.13) (0.12) (0.11) (0.14) (excluding dividends) (0.16) (0.17) (0.17) (0.16) (0.18) From dividends – – – – – From dividends – – – – – From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $(0.11) $(0.13) $(0.12) $(0.11) $(0.14) Total annual distributions (2,3) $(0.16) $(0.17) $(0.17) $(0.16) $(0.18) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $11.70 $11.49 $11.37 $11.46 $11.62 31 of year shown (2) $10.33 $10.15 $10.05 $10.13 $10.28

at ios an d S u p p le m en ta l RDataatios and Supplemental Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value Total net asset value (in 000s) (4) $122,205 $106,065 $126,917 $172,501 $211,105 (in 000s) (4) $422,783 $207,122 $249,578 $469,694 $586,292 Number of units Number of units outstanding (in outstanding (in 000s) (4) 10,441 9,230 11,160 15,056 18,170 000s) (4) 40,923 20,410 24,839 46,375 57,049 Management Management expense ratio expense ratio ("MER") (5) 1.59% 1.59% 1.56% 1.56% 1.57% ("MER") (5) 1.05% 1.05% 1.02% 1.03% 1.02% MER before waivers MER before waivers or absorptions (5) 1.59% 1.59% 1.56% 1.56% 1.57% or absorptions (5) 1.05% 1.05% 1.02% 1.03% 1.02% Trading expense Trading expense ratio (6) n/a 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) 40.50% 32.30% 35.30% 32.90% 36.57% rate (7) 40.50% 32.30% 35.30% 32.90% 36.57% Net asset value per Net asset value per unit (4) $11.70 $11.49 $11.37 $11.46 $11.62 unit (4) $10.33 $10.15 $10.05 $10.13 $10.28

3 HSBC Mortgage Fund

HSBC Mortgage Fund – Manager Series – Net HSBC Mortgage Fund – I nstitutional Series – Assets per Unit(1) Net Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $10.22 $10.13 $10.21 $10.35 $10.30 year (2) $10.61 $10.49 $10.57 $10.72 $10.67 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.26 0.28 0.27 0.26 0.28 Total revenue 0.27 0.29 0.28 0.27 0.29 Total expenses (0.10) (0.10) (0.11) (0.11) (0.11) Total expenses (0.01) (0.01) (0.01) (0.01) (0.01) Realized gains (losses) 0.01 (0.01) (0.05) (0.02) (0.01) Realized gains (losses) 0.02 (0.01) (0.05) (0.02) (0.01) Unrealized gains (losses) 0.17 0.12 (0.02) (0.14) 0.05 Unrealized gains (losses) 0.18 0.11 (0.02) (0.13) 0.06 Total increase (decrease) from Total increase (decrease) from operations (2) $0.34 $0.29 $0.09 $(0.01) $0.21 operations (2) $0.46 $0.38 $0.20 $0.11 $0.33 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) (0.17) (0.19) (0.16) (0.15) (0.17) (excluding dividends) (0.26) (0.27) (0.27) (0.26) (0.28) From dividends – – – – – From dividends – – – – – From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $(0.17) $(0.19) $(0.16) $(0.15) $(0.17) Total annual distributions (2,3) $(0.26) $(0.27) $(0.27) $(0.26) $(0.28) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $10.40 $10.22 $10.13 $10.21 $10.35 31 of year shown (2) $10.81 $10.61 $10.49 $10.57 $10.72

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net 000s) (4) $558 $1,098 $1,094 $2,633 $2,197 asset value Number of units outstanding (in 000s) (4) $1,952,572 $1,862,095 $1,689,517 $1,765,690 $1,682,482 (in 000s) (4) 54 107 108 258 212 Number of Management expense ratio units ("MER") (5) 1.00% 1.00% 1.09% 1.08% 1.06% outstanding MER before waivers or (in 000s) (4) 180,703 175,561 161,000 167,067 157,014 absorptions (5) 1.00% 1.00% 1.09% 1.08% 1.06% Management Trading expense ratio (6) n/a n/a n/a n/a n/a expense Portfolio turnover rate (7) 40.50% 32.30% 35.30% 32.90% 36.57% ratio Net asset value per unit (4) $10.40 $10.22 $10.13 $10.21 $10.35 ("MER") (5) 0.13% 0.13% 0.10% 0.10% 0.10%

MER before waivers or absorptions (5) 0.13% 0.13% 0.10% 0.10% 0.10% Trading expense ratio (6) n/a n/a n/a n/a n/a Portfolio turnover rate (7) 40.50% 32.30% 35.30% 32.90% 36.57% Net asset value per unit (4) $10.81 $10.61 $10.49 $10.57 $10.72 (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial Reporting Standards (“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

4 HSBC Mortgage Fund

relevant time. The increase/decrease in net assets from operations distribution, optional charges or expenses you may be charged per unit is based on the weighted average number of units outside of the Fund or the effect of any income tax you may outstanding for the relevant series over the fiscal year. have to pay as a result of your investment in the Fund that (3) Distributions are automatically reinvested in additional units of the would have reduced returns or performance. The performance Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. of different fund series may vary for a number of reasons, including differences in management fees and expenses. The (4) This information is provided as at December 31 of the year shown. Fund’s past performance does not necessarily indicate how it (5) MER is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated will perform in the future. year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one Year-by-Year Returns mutual fund to another and from one series of units to another. Years ended December 31 (6) The trading expense ratio represents total commissions and other The following bar charts show the Fund’s performance for each portfolio transaction costs expressed as an annualized percentage of the years shown, and illustrate how the Fund’s performance of daily average net asset value during the year. changed from year to year. In percentage terms, the bar charts (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s show how much an investment made on the first day of each portfolio advisor manages its portfolio investments. A portfolio financial year would have grown or decreased by the last day of 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 year. each financial year. The higher the Fund’s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year, and the greater Annual Returns – Investor Series

the chance of an investor receiving taxable capital gains in the year. 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 weighted market value of the portfolio securities, excluding short- 5% term securities. 2.8% 1.7% 2.2% 1.6% 1.3% 1.3% 1.2% 1.1% 0.3% Management Fees 0% For the year ended December 31, 2020, the Fund paid us -0.4% management fees of $3,817,702. The management fee for each series is calculated as a percentage of the daily net asset value -5% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 for that series. The fees are reduced, where required, so that 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Annual Returns – Premium Series

The Fund’s management fees were used by us to pay costs for 10% managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, 5% making brokerage arrangements for the purchase and sale of 3.4% 2.7% the investment portfolio and providing other services. The 2.2% 1.9% 1.9% 1.7% 1.7% 2.2% 0.9% management fees also funded commission payments and other 0.1% compensation (collectively “distribution costs”) to sales 0% representatives and registered dealers and brokers, including HSBC Investment Funds (Canada) Inc., for units of the Fund -5% bought and held by unitholders. Finally, we used management Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 fees to pay for additional marketing and distribution services to 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 the Fund. For the year ended December 31, 2020, approximately 46% 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. Past Performance The performance information shown assumes that all distributions made by the Fund in the years shown were reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption,

5 HSBC Mortgage Fund

Annual Returns – Manager Series Investor Series

10% 1 Year 3 Year 5 Year 10 Year HSBC Mortgage Fund 2.83% 1.78% 1.32% 1.32% 45% FTSE Canada 1-Yr Mortgage Index, 5% 3.4% 25% FTSE Canada 3-Yr Mortgage Index, 2.8% 2.2% 1.9% 1.8% 1.7% 1.7% 2.2% 10% FTSE Canada 5-Yr Mortgage Index, 0.8% 10% FTSE Canada ST Bond Index, 0.1% 0% 10% FTSE Canada 91 Day T-Bill Index with a discount factor 3.74% 3.07% 2.68% 2.78% FTSE Canada Short Term Bond Index 5.29% 3.42% 2.26% 2.54%

-5% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Manager Series 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1 Year 3 Year 5 Year 10 Year HSBC Mortgage Fund 3.42% 2.33% 1.85% 1.85% Annual Returns – Institutional Series 45% FTSE Canada 1-Yr Mortgage Index, 10% 25% FTSE Canada 3-Yr Mortgage Index, 10% FTSE Canada 5-Yr Mortgage Index, 10% FTSE Canada ST Bond Index, 5% 4.3% 10% FTSE Canada 91 Day T-Bill Index 3.2% 3.2% 3.7% 2.9% 2.8% 2.7% 2.6% with a discount factor 3.74% 3.07% 2.68% 2.78% 1.8% FTSE Canada Short Term Bond Index 5.29% 3.42% 2.26% 2.54% 1.1% 0% Institutional Series

1 Year 3 Year 5 Year 10 Year -5% HSBC Mortgage Fund 4.34% 3.28% 2.81% 2.82% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 45% FTSE Canada 1-Yr Mortgage Index, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 25% FTSE Canada 3-Yr Mortgage Index, 10% FTSE Canada 5-Yr Mortgage Index, Annual Compound Returns 10% FTSE Canada ST Bond Index, Year ended December 31, 2020 10% FTSE Canada 91 Day T-Bill Index The following tables show the Fund’s historical annual with a discount factor 3.74% 3.07% 2.68% 2.78% FTSE Canada Short Term Bond Index 5.29% 3.42% 2.26% 2.54% compound total returns for the years indicated, compared with the benchmark index. The benchmark is composed of the FTSE Premium Series Canada 1-Year Mortgage Index (45%), FTSE Canada 3-Year 1 Year 3 Year 5 Year 10 Year Mortgage Index (25%), FTSE Canada 5-Year Mortgage Index HSBC Mortgage Fund 3.40% 2.34% 1.87% 1.87% (10%), FTSE Canada Short Term Bond Index (10%) and FTSE 45% FTSE Canada 1-Yr Mortgage Index, Canada 91 Day T-Bill Index (10%), with mortgage components 25% FTSE Canada 3-Yr Mortgage Index, discounted by an appropriate amount to reflect actual 10% FTSE Canada 5-Yr Mortgage Index, prevailing mortgage rates over the prior year. 10% FTSE Canada ST Bond Index, 10% FTSE Canada 91 Day T-Bill Index The FTSE Canada Short Term Bond Index is a broad measure of with a discount factor 3.74% 3.07% 2.68% 2.78% the total return for the Canadian short-term bond market, FTSE Canada Short Term Bond Index 5.29% 3.42% 2.26% 2.54% covering marketable Canadian bonds with a term to maturity (1) Due to the fact that several benchmark indices are only available on between one and five years. The FTSE Canada Mortgage Index a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- (1-, 3- and 5-Year) is designed to measure total return on a end date each Fund was in operation. hypothetical residential mortgage with a current mortgage rate. (2) For investment commentary and relative performance of the Fund The FTSE Canada 91 Day T-Bill Index is a broad measure of the compared to its benchmark, please refer to the Results of Operations total return for the Canadian 91-day treasury bill market, section of this report. covering marketable Canadian treasury bills with a term to maturity of 91 days or less.

6 HSBC Mortgage Fund

Summary of Investment Portfolio As at December 31, 2020

Asset Mix Percentage of NAV

Residential Mortgages 80.22% Corporate Bonds 10.84% Government Bonds 6.77% Cash & Equivalents 2.17% Total 100.00%

Top 25 Holdings Percentage of NAV

Residential Mortgages 80.22% Canada Housing Trust No. 1, 1.25%, 06/15/2021 1.96% Canada Housing Trust No. 1, 1.15%, 12/15/2021 1.62% Aviva PLC, 4.50%, 05/10/2021 1.39% Canada Housing Trust No. 1, 2.35%, 06/15/2027 1.32% Canada Housing Trust No. 1, 1.90%, 09/15/2026 1.03% Canadian Mortgage Pools, 1.80%, 09/01/2024 0.97% Royal Bank of Canada, 0.20%, 01/04/2021 0.79% Canadian Mortgage Pools, 1.89%, 10/01/2024 0.70% Canadian Mortgage Pools, 1.90%, 07/01/2024 0.61% Suncor Energy Inc., 0.54%, 02/02/2021 0.60% Canadian Mortgage Pools, 0.60%, 12/01/2025 0.48% Goldman Sachs Group Inc., 3.55%, 02/12/2021 0.39% Toronto-Dominion Bank, 3.11%, 04/22/2030 0.39% Empire Life Insurance Co., 3.38%, 12/16/2026 0.36% Province of Ontario, 2.40%, 06/02/2026 0.30% Canadian Mortgage Pools, 1.25%, 03/01/2025 0.27% Province of British Columbia, 2.30%, 06/18/2026 0.26% BHP Billiton Finance Ltd., 3.23%, 05/15/2023 0.25% CCL Industries Inc., 3.86%, 04/13/2028 0.23% Canada Housing Trust No. 1, 1.95%, 12/15/2025 0.21% Choice Properties Real Estate Investment Trust, 3.56%, 09/09/2024 0.21% Morgan Stanley, 3.00%, 02/07/2024 0.21% Aroundtown SA, 4.63%, 09/18/2025 0.20% Brookfield Infrastructure Finance ULC, 3.32%, 02/22/2024 0.20% Total of Top 25 Holdings 95.17%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

7 HSBC Mortgage Fund

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

HSBC Canadian Short/Mid Bond Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Canadian Short/Mid Bond Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Investment Performance Fund; we, us and our refer to HSBC Global Asset Management The HSBC Canadian Short/Mid Bond Fund (Institutional (Canada) Limited; and the Fund refers to the HSBC Canadian Series) began operations on March 9, 2020. Due to policies Short/Mid Bond Fund. issued by the Canadian Securities Administrators, investment performance data is not reported for funds in existence for less We are the manager, trustee and primary investment advisor of than one year. The benchmark is a weighted composite the Fund. consisting of the FTSE Canada Short Term Bond Index (50%) Introduction and FTSE Canada Mid Term Bond Index (50%). This Annual Management Report of Fund Performance contains Although corporate credit spreads weakened in tandem with financial highlights but does not contain the complete annual equities in the first quarter of 2020, the Fund’s benchmark financial statements of the Fund. You may obtain a copy of the indices retraced the credit spread widening over the rest of the annual financial statements at your request, at no cost, by year as attractive valuations and government support led to calling us toll-free at 1-888-390-3333, by visiting our website at strong demand for corporate debt. To plug widening budget www.assetmanagement.hsbc.ca, by visiting the SEDAR deficits due to lower revenue and higher outlays to support the website at www.sedar.com or by writing to us at: Canadian economy, federal and provincial debt issuance hit a HSBC Global Asset Management (Canada) Limited record high in 2020. Central banks launched asset purchase 3rd Floor, 885 West Georgia Street programs to ensure well-functioning financial markets, which Vancouver, BC V6C 3E8 absorbed the increased supply from federal and provincial issuers and provided strong tailwinds for corporate and You may also contact us using one of these methods to request a provincial debt in the final three quarters of the year. Both the copy of the Fund’s interim financial report, proxy voting policies US Federal Reserve and Bank of Canada cut overnight rates to and procedures, proxy voting disclosure record or quarterly near zero in the first quarter and have guided markets to not portfolio disclosure. expect a rate hike for the next few years. Investment Objective and Strategies The Fund was launched at the height of the market panic surrounding COVID-19 and primarily invested in longer-maturity The fundamental investment objective of this Fund is to provide federal bonds. Towards the end of the first quarter, we moved regular income with some potential for long-term capital from a dramatic underweight position in corporate and growth. provincial credit to an overweight position, taking advantage of To achieve its objectives, the Fund invests primarily in historically attractive valuations for high-quality issuers. investment grade short-term and mid-term bonds, debentures, commercial and residential mortgage-backed securities, asset- Recent Developments backed securities, and other fixed income securities either We maintain our view that the economic fallout from the pandemic is likely to dissipate as aggressive policy moves issued or guaranteed by the Government of Canada, a province continue to support liquidity and economic momentum. or municipality of Canada, Canadian corporations or Canadian Although valuations for many segments of the Canadian fixed master trusts. income universe are close to pre-COVID-19 levels, we still see Risk pockets of the credit market that remain attractive. We expect policymakers to remain highly accommodative with monetary The risks of investing in the Fund remain as discussed in the policy well into a recovery, which will help higher-yielding Simplified Prospectus. During the year, there were no material assets as investors seek income in a near-zero interest changes to the Fund that affected the overall risk level of the rate environment. Fund. The Fund is overweight in high-quality corporate debt and This Fund is suitable for investors who want to earn interest modestly overweight in provincial bonds given their attractive income and grow their capital, have a medium-term investment valuations compared to government bonds. We continue to time horizon and have a low tolerance for risk in their returns. hold a modest overweight position in duration compared to the Results of Operations index, focusing on bonds with attractive return profiles that are maturing between five and seven years, and we are This Fund was created on December 18, 2019, but as of underweight in two- and 10-year bonds. December 31, 2019, it had not begun investing according to its strategy. As of December 31, 2020, the Fund's net assets During the period there has been a change in composition to increased to $78.9 million. Net contributions and positive the Independent Review Committee (the “IRC”). Effective investment performance resulted in an overall increase in net March 25, 2020, Ms. Louise Tymocko was appointed to the IRC asset value. as a member, replacing Mr. William (Bill) Bakk who left as his

1 HSBC Canadian Short/Mid Bond Fund term of office expired. Ms. Lisa Pankratz also took over as Chair Financial Highlights of the IRC effective March 25, 2020. In addition, effective The following tables show selected key financial information February 18, 2021, Ms. Sharon Morrisroe was also appointed to about the Fund and are intended to help you understand the the IRC as a member, replacing Mr. Neil de Gelder who left Fund’s financial performance for the years shown. This following the expiry of his term in March of 2021. information is derived from the Fund’s audited annual financial statements. The information in the following tables is based on Related Party Transactions prescribed regulations, and, as a result, is not expected to add We, on behalf of the Fund, or the Fund Manager, may, from down due to the increase/decrease in net assets from time to time, enter into transactions or arrangements with or operations being based on average units outstanding during the involving other members of the HSBC Group or other people or year and all other numbers being based on actual units companies related or connected to us or the Fund. To proceed outstanding at the relevant point in time. with the transactions, the Fund relies on the positive recommendation of the Fund’s Independent Review Committee. A condition of this positive recommendation is that the transactions HSBC Canadian Short/Mid Bond Fund – (1) are performed in accordance with our policy on Related Party Institutional Series – Net Assets per Unit Transactions. For more general information on persons related Year(s) ended December 31 to the Fund and the types of potential transactions, see the 2020 2019 Fund’s Simplified Prospectus. Net assets per unit, beginning of year (2) $10.00 $10.00 The following is a summary of current transactions and Increase (decrease) from operations: Total revenue 0.25 – arrangements with entities that are related to us or the Fund. Total expenses (0.02) – Realized gains (losses) 0.08 – Manager, Trustee and Investment Advisor Unrealized gains (losses) 0.30 – We are the manager, trustee and primary investment advisor of Total increase (decrease) from operations (2) $0.61 $– the Fund. As manager, we manage the overall business and Distributions to unitholders: operations of the Fund. As trustee, we hold legal title to the From net investment income (excluding dividends) (0.17) – property of the Fund on your behalf. As primary investment From dividends – – advisor, we provide investment advice and portfolio From capital gains (0.03) – Return of capital – – management services to the Fund. We receive a fee from the Total annual distributions (2,3) $(0.20) $– Fund for these services based on assets under management, Net assets per unit at December 31 of year shown (2) $10.29 $10.00 calculated daily and paid monthly.

Distribution Services Ratios and Supplemental Data The Fund is distributed through us, HSBC Investment Funds 2020 2019 (Canada) Inc. (our wholly owned subsidiary and affiliate) and HSBC Securities (Canada) Inc. (an affiliate) directly or through Total net asset value (in 000s) (4) $78,927 $10 Number of units outstanding (in 000s) (4) 7,669 1 its division, HSBC InvestDirect. We pay distribution and Management expense ratio ("MER") (5) 0.18% – servicing fees to them based on the amount of assets held in MER before waivers or absorptions (5) 0.18% – the investor’s account, and additionally, in some cases, on the Trading expense ratio (6) n/a – amount of the initial purchase. If you hold units of this Fund Portfolio turnover rate (7) 105.56% – Net asset value per unit (4) $10.29 $10.00 and/or other HSBC Mutual Funds in a registered plan with (1) This information is derived from the Fund’s audited annual financial HSBC Investment Funds (Canada) Inc., they may charge you an statements. All balances are stated in International Financial annual fee to cover the annual administration costs of the plan. Reporting Standards (“IFRS”). Under IFRS, the net assets per unit We permit HSBC Investment Funds (Canada) Inc. to collect presented in the financial statements is the same as the net asset these fees by redeeming sufficient units of the Fund with the value calculated for fund pricing purposes. highest market value in your registered plan. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the Purchases of Securities Underwritten by a Related Party relevant time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units During the year, the Fund invested in certain securities that outstanding for the relevant series over the fiscal year. were underwritten, in whole or in part, by entities that are a (3) Distributions are automatically reinvested in additional units of the related party to us. To proceed with the transactions, the Fund Fund, unless the unitholder withdraws from the automatic relied on the approval of the Fund’s Independent Review reinvestment plan by providing written notice to us. Committee by way of Standing Instruction. A condition of this (4) This information is provided as at December 31 of the year shown. approval was that the transactions were performed in (5) MER is based on total expenses (including a portion of the accordance with our policy on Purchases of Securities operating expenses of the underlying funds in proportion to the Underwritten by a Related Party. Fund’s holdings in the other funds and excluding distributions,

2 HSBC Canadian Short/Mid Bond Fund

commissions and other portfolio transaction costs) for the stated Top 25 Holdings year and is expressed as an annualized percentage of daily average Percentage net asset value during the year. The MER may vary from one of NAV mutual fund to another and from one series of units to another. We may have waived or absorbed certain fees and expenses otherwise Canada Housing Trust No. 1, 1.95%, 12/15/2025 13.42% payable by the Fund. The amount of expenses absorbed or waived Canada Housing Trust No. 1, 1.90%, 09/15/2026 8.94% is at the discretion of and can be terminated at any time by us. Province of Ontario, 2.40%, 06/02/2026 7.42% Please see the prospectus, Fund Facts and other disclosure Province of Ontario, 2.70%, 06/02/2029 4.55% documents for further details. Province of Alberta, 2.55%, 06/01/2027 3.27% (6) The trading expense ratio represents total commissions and other Province of Ontario, 1.75%, 09/08/2025 2.66% portfolio transaction costs expressed as an annualized percentage Province of Manitoba, 2.55%, 06/02/2026 2.42% of daily average net asset value during the year. Province of British Columbia, 2.30%, 06/18/2026 2.33% (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Toronto-Dominion Bank, 3.11%, 04/22/2030 2.26% portfolio advisor manages its portfolio investments. A portfolio City of Montreal, 3.00%, 09/01/2027 2.13% turnover rate of 100% is equivalent to the Fund buying and selling Granite REIT Holdings LP, 3.06%, 06/04/2027 2.10% all of the securities in its portfolio once in the course of the year. Royal Bank of Canada, 2.09%, 06/30/2030 1.91% The higher the Fund’s portfolio turnover rate in a year, the greater Province of Nova Scotia, 2.10%, 06/01/2027 1.90% the trading costs payable by the Fund in the year, and the greater Aviva PLC, 4.50%, 05/10/2021 1.80% the chance of an investor receiving taxable capital gains in the year. Brookfield Asset Management Inc., 4.82%, 01/28/2026 1.75% There is not necessarily a relationship between a high turnover rate Province of Saskatchewan, 2.65%, 06/02/2027 1.75% and the performance of the Fund. The rate is calculated based on Genworth MI Canada Inc., 2.96%, 03/01/2027 1.71% the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding short- Government of Canada, 0.05%, 03/18/2021 1.51% term securities. Royal Bank of Canada, 2.88%, 12/23/2029 1.48% Choice Properties Real Estate Investment Trust, 4.18%, Past Performance 03/08/2028 1.44% The HSBC Canadian Short/Mid Bond Fund began operations in Province of British Columbia, 2.85%, 06/18/2025 1.39% Choice Properties Real Estate Investment Trust, 3.56%, March 2020. Due to policies issued by the Canadian Securities 09/09/2024 1.35% Administrators, investment performance data is not reported for Bank of Nova Scotia, 2.38%, 05/01/2023 1.19% funds in existence for less than one year. CCL Industries Inc., 3.86%, 04/13/2028 1.19% Aviva PLC, 4.00%, 10/02/2030 1.15% Summary of Investment Portfolio Total of Top 25 Holdings 73.02% As at December 31, 2020

Asset Mix Percentage of NAV

Government Bonds 57.84% Corporate Bonds 40.90% Cash & Equivalents 1.26% Total 100.00%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

3 HSBC Canadian Short/Mid Bond Fund

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

HSBC Canadian Bond Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020 HSBC Canadian Bond Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Investment Performance Fund; we, us and our refer to HSBC Global Asset Management The HSBC Canadian Bond Fund (Investor Series) rose 8.38% for (Canada) Limited; and the Fund refers to the HSBC Canadian the 12 months ending December 31, 2020, while the Bond Fund. benchmark FTSE Canada Universe Bond Index rose 8.68% over the same period. The Fund’s returns are after the deduction of We are the manager, trustee and primary investment advisor of fees and expenses, while the benchmark’s returns do not the Fund. include any costs of investing. See the Past Performance Introduction section for the returns of other series of the Fund, which may vary due to differences in management fees and expenses. This Annual Management Report of Fund Performance contains financial highlights but does not contain the complete annual Although corporate credit spreads weakened in tandem with financial statements of the Fund. You may obtain a copy of the equities in the first quarter of 2020, the FTSE Canada Universe annual financial statements at your request, at no cost, by Bond Index retraced 90% of the corporate credit spread calling us toll-free at 1-888-390-3333, by visiting our website at widening over the rest of the year as attractive valuations and www.assetmanagement.hsbc.ca, by visiting the SEDAR government support led to strong demand for corporate debt. website at www.sedar.com or by writing to us at: Central banks launched asset purchase programs to ensure well-functioning financial markets, which absorbed the HSBC Global Asset Management (Canada) Limited increased supply from federal and provincial issuers and rd 3 Floor, 885 West Georgia Street provided strong tailwinds for corporate and provincial debt in Vancouver, BC V6C 3E8 the final three quarters of the year. Both the US Federal Reserve and Bank of Canada cut overnight rates to near zero in the first You may also contact us using one of these methods to request a quarter and have guided markets to not expect a rate hike for copy of the Fund’s interim financial report, proxy voting policies the next few years. and procedures, proxy voting disclosure record or quarterly portfolio disclosure. The Fund generated a strong absolute return in a volatile year and outperformed its benchmark, gross of fees. We took Investment Objective and Strategies advantage of exceptionally attractive corporate and provincial The fundamental investment objective of this Fund is to provide debt valuations and purchased assets at wide spreads to take regular income and long-term capital growth. advantage of dislocations in credit markets. Portfolio turnover was higher than average as we reacted to rapidly changing To achieve its objectives, the Fund invests primarily in Canadian markets and attractive opportunities. The Fund’s holdings in the investment-grade bonds, debentures, commercial and HSBC Mortgage Fund modestly detracted from performance residential mortgage-backed securities, asset-backed securities due to its lower duration than the benchmark. and other fixed income securities either issued or guaranteed by the Government of Canada, a province or municipality of Recent Developments Canada, Canadian corporations or Canadian trusts that issue We maintain our view that the economic fallout from the asset-backed securities. pandemic is likely to dissipate as aggressive policy moves continue to support liquidity and economic momentum. Risk Although valuations for many segments of the Canadian fixed The risks of investing in the Fund remain as discussed in the income universe are close to pre-COVID-19 levels, we still see Simplified Prospectus. During the year, there were no material pockets of the credit market that remain attractive. We expect changes to the Fund that affected the overall risk level of policymakers to remain highly accommodative with monetary the Fund. policy well into a recovery, which will help assets with beneficial carry profiles, as investors seek income in a near-zero This Fund is suitable for investors who want to earn interest interest rate environment. income and grow their capital, have a medium-term investment time horizon and have a low tolerance for risk in their returns. We hold an overweight position in provincial debt and a modestly overweight position in high-quality corporate bonds Results of Operations given their attractive valuations compared to government As of December 31, 2020, the Fund's net assets increased by bonds. The yield advantage of the HSBC Mortgage Fund versus 16.3% to $875.1 million from $752.7 million at the end of 2019. the FTSE Canada Universe Bond Index continues to be Net contributions and positive investment performance resulted attractive and we expect the HSBC Mortgage Fund to do in an overall increase in net asset value. particularly well if Government of Canada yields increase. We continue to hold a modest overweight position in duration compared to the benchmark index and an underweight position in longer-term (over 10-year) bonds.

1 HSBC Canadian Bond Fund

During the period there has been a change in composition to Purchases of Securities Underwritten by a Related Party the Independent Review Committee (the “IRC”). Effective During the year, the Fund invested in certain securities that March 25, 2020, Ms. Louise Tymocko was appointed to the IRC were underwritten, in whole or in part, by entities that are a as a member, replacing Mr. William (Bill) Bakk who left as his related party to us. To proceed with the transactions, the Fund term of office expired. Ms. Lisa Pankratz also took over as Chair relied on the approval of the Fund’s Independent Review of the IRC effective March 25, 2020. In addition, effective Committee by way of Standing Instruction. A condition of this February 18, 2021, Ms. Sharon Morrisroe was also appointed to approval was that the transactions were performed in the IRC as a member, replacing Mr. Neil de Gelder who left accordance with our policy on Purchases of Securities following the expiry of his term in March of 2021. Underwritten by a Related Party. Related Party Transactions Financial Highlights We, on behalf of the Fund, or the Fund Manager, may, from The following tables show selected key financial information time to time, enter into transactions or arrangements with or about the Fund and are intended to help you understand the involving other members of the HSBC Group or other people or Fund’s financial performance for the past five years. This companies related or connected to us or the Fund. To proceed information is derived from the Fund’s audited annual financial with the transactions, the Fund relies on the positive statements. The information in the following tables is based on recommendation of the Fund’s Independent Review Committee. A prescribed regulations, and, as a result, is not expected to add condition of this positive recommendation is that the transactions down due to the increase/decrease in net assets from are performed in accordance with our policy on Related Party operations being based on average units outstanding during the Transactions. For more general information on persons related year and all other numbers being based on actual units to the Fund and the types of potential transactions, see the outstanding at the relevant point in time.

Fund’s Simplified Prospectus. The following is a summary of current transactions and HSBC Canadian Bond Fund – Investor Series – arrangements with entities that are related to us or the Fund. Net Assets per Unit(1) Year(s) ended December 31 Manager, Trustee and Investment Advisor 2020 2019 2018 2017 2016 We are the manager, trustee and primary investment advisor of Net assets per unit, beginning of the Fund. As manager, we manage the overall business and year (2) $13.73 $13.19 $13.51 $13.46 $13.72 operations of the Fund. As trustee, we hold legal title to the Increase (decrease) from property of the Fund on your behalf. As primary investment operations: advisor, we provide investment advice and portfolio Total revenue 0.40 0.42 0.44 0.46 0.49 management services to the Fund. We receive a fee from the Total expenses (0.16) (0.16) (0.15) (0.15) (0.16) Realized gains (losses) 0.42 0.08 0.02 – 0.13 Fund for these services based on assets under management, Unrealized gains (losses) 0.47 0.49 (0.34) 0.06 (0.27) calculated daily and paid monthly. Total increase (decrease) from operations (2) $1.13 $0.83 $(0.03) $0.37 $0.19 Distribution Services The Fund is distributed through us, HSBC Investment Funds Distributions to unitholders: From net investment income (Canada) Inc. (our wholly owned subsidiary and affiliate) and (excluding dividends) (0.25) (0.27) (0.29) (0.31) (0.34) HSBC Securities (Canada) Inc. (an affiliate) directly or through From dividends – – – – – its division, HSBC InvestDirect. We pay distribution and From capital gains (0.27) (0.01) (0.03) – (0.11) Return of capital – – – – – servicing fees to them based on the amount of assets held in the investor’s account, and additionally, in some cases, on the Total annual distributions (2,3) $(0.52) $(0.28) $(0.32) $(0.31) $(0.45) amount of the initial purchase. If you hold units of this Fund Net assets per unit at December 31 of year shown (2) $14.35 $13.73 $13.19 $13.51 $13.46 and/or other HSBC Mutual Funds in a registered plan with HSBC Investment Funds (Canada) Inc., they may charge you an annual 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 market value in your registered plan.

Fund on Fund Investing During the year, the Fund invested in units of other HSBC Mutual Funds, which are also managed by us.

2 HSBC Canadian Bond Fund

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value Total net asset value (in 000s) (4) $190,204 $173,750 $175,288 $219,455 $261,792 (in 000s) (4) $246,114 $174,492 $139,247 $204,973 $266,895 Number of units Number of units outstanding (in outstanding (in 000s) (4) 13,253 12,656 13,292 16,241 19,448 000s) (4) 21,037 15,596 12,961 18,604 24,295 Management Management expense ratio expense ratio ("MER") (5) 1.15% 1.16% 1.14% 1.14% 1.13% ("MER") (5) 0.88% 0.88% 0.86% 0.87% 0.86% MER before waivers MER before waivers or absorptions (5) 1.15% 1.16% 1.14% 1.14% 1.13% or absorptions (5) 0.88% 0.88% 0.86% 0.87% 0.86% Trading expense Trading expense ratio (6) n/a 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) 59.59% 31.61% 43.39% 35.58% 34.38% rate (7) 59.59% 31.61% 43.39% 35.58% 34.38% Net asset value per Net asset value per unit (4) $14.35 $13.73 $13.19 $13.51 $13.46 unit (4) $11.70 $11.19 $10.74 $11.02 $10.99

HSBC Canadian Bond Fund – Premium Series – HSBC Canadian Bond Fund – Manager Series – Net Assets per Unit(1) Net Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $11.19 $10.74 $11.02 $10.99 $11.19 year (2) $10.14 $9.79 $10.09 $10.10 $10.34 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.33 0.34 0.36 0.38 0.40 Total revenue 0.30 0.31 0.33 0.35 0.37 Total expenses (0.10) (0.10) (0.09) (0.09) (0.10) Total expenses (0.11) (0.10) (0.11) (0.09) (0.10) Realized gains (losses) 0.34 0.06 0.02 – 0.10 Realized gains (losses) 0.31 0.06 0.03 – 0.08 Unrealized gains (losses) 0.30 0.33 (0.29) 0.06 (0.27) Unrealized gains (losses) 0.35 0.35 (0.28) 0.02 (0.26) Total increase (decrease) from Total increase (decrease) from operations (2) $0.87 $0.63 $– $0.35 $0.13 operations (2) $0.85 $0.62 $(0.03) $0.28 $0.09 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) (0.23) (0.25) (0.27) (0.29) (0.30) (excluding dividends) (0.23) (0.26) (0.29) (0.29) (0.32) From dividends – – – – – From dividends – – – – – From capital gains (0.22) (0.01) (0.03) – (0.09) From capital gains (0.21) (0.01) (0.03) – (0.08) Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $(0.45) $(0.26) $(0.30) $(0.29) $(0.39) Total annual distributions (2,3) $(0.44) $(0.27) $(0.32) $(0.29) $(0.40) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $11.70 $11.19 $10.74 $11.02 $10.99 31 of year shown (2) $10.55 $10.14 $9.79 $10.09 $10.10

Ratios and Supplemental Data 2020 2019 2018 2017 2016 Total net asset value (in 000s) (4) $171 $171 $154 $226 $298 Number of units outstanding (in 000s) (4) 16 17 16 22 29 Management expense ratio ("MER") (5) 1.07% 1.04% 1.09% 0.94% 0.93% MER before waivers or absorptions (5) 1.13% 1.41% 1.21% 0.94% 0.93% Trading expense ratio (6) n/a n/a n/a n/a n/a Portfolio turnover rate (7) 59.59% 31.61% 43.39% 35.58% 34.38% Net asset value per unit (4) $10.55 $10.14 $9.79 $10.09 $10.10

3 HSBC Canadian Bond Fund

HSBC Canadian Bond Fund – Institutional Series year and is expressed as an annualized percentage of daily average – Net Assets per Unit(1) net asset value during the year. The MER may vary from one mutual fund to another and from one series of units to another. We Year(s) ended December 31 may have waived or absorbed certain fees and expenses otherwise 2020 2019 2018 2017 2016 payable by the Fund. The amount of expenses absorbed or waived is at the discretion of and can be terminated at any time by us. Net assets per unit, beginning of Please see the prospectus, Fund Facts and other disclosure year (2) $11.68 $11.22 $11.50 $11.45 $11.67 documents for further details. Increase (decrease) from (6) The trading expense ratio represents total commissions and other operations: portfolio transaction costs expressed as an annualized percentage Total revenue 0.34 0.36 0.37 0.39 0.41 of daily average net asset value during the year. Total expenses (0.01) (0.01) – – – Realized gains (losses) 0.36 0.07 0.02 – 0.11 (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Unrealized gains (losses) 0.38 0.41 (0.26) 0.04 (0.22) portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling Total increase (decrease) from all of the securities in its portfolio once in the course of the year. operations (2) $1.07 $0.83 $0.13 $0.43 $0.30 The higher the Fund’s portfolio turnover rate in a year, the greater Distributions to unitholders: the trading costs payable by the Fund in the year, and the greater From net investment income the chance of an investor receiving taxable capital gains in the year. (excluding dividends) (0.33) (0.35) (0.36) (0.39) (0.41) There is not necessarily a relationship between a high turnover rate From dividends – – – – – and the performance of the Fund. The rate is calculated based on From capital gains (0.24) (0.02) (0.03) – (0.10) the lesser of purchases or sales of securities divided by the average Return of capital – – – – – weighted market value of the portfolio securities, excluding short- Total annual distributions (2,3) $(0.57) $(0.37) $(0.39) $(0.39) $(0.51) term securities. Net assets per unit at December Management Fees 31 of year shown (2) $12.21 $11.68 $11.22 $11.50 $11.45 For the year ended December 31, 2020, the Fund paid us management fees of $3,357,150. The management fee for each Ratios and Supplemental Data series is calculated as a percentage of the daily net asset value for that series. The fees are reduced, where required, so that 2020 2019 2018 2017 2016 these fees do not duplicate fees payable by mutual funds in Total net asset value which the Fund invests for the same service. (in 000s) (4) $438,566 $404,312 $384,608 $366,375 $317,001 Number of units The Fund’s management fees were used by us to pay costs for outstanding (in managing the investment portfolio, providing investment 000s) (4) 35,908 34,604 34,271 31,863 27,675 Management analysis and recommendations, making investment decisions, expense ratio making brokerage arrangements for the purchase and sale of ("MER") (5) 0.07% 0.07% 0.05% 0.05% 0.04% the investment portfolio and providing other services. The MER before waivers management fees also funded commission payments and other or absorptions (5) 0.07% 0.07% 0.05% 0.05% 0.04% compensation (collectively “distribution costs”) to sales Trading expense ratio (6) n/a n/a n/a n/a n/a representatives and registered dealers and brokers, including Portfolio turnover HSBC Investment Funds (Canada) Inc., for units of the Fund rate (7) 59.59% 31.61% 43.39% 35.58% 34.38% bought and held by unitholders. Finally, we used management Net asset value per fees to pay for additional marketing and distribution services to unit (4) $12.21 $11.68 $11.22 $11.50 $11.45 the Fund. (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial For the year ended December 31, 2020, approximately 46% of Reporting Standards (“IFRS”). Under IFRS, the net assets per unit the total management fees collected from all HSBC Mutual presented in the financial statements is the same as the net asset Funds were used to fund distribution costs. In comparison, for value calculated for fund pricing purposes. the Fund, such distribution costs represented 50% of the (2) Net assets per unit and distributions per unit are based on the management fees collected. This may vary by series depending actual number of units outstanding for the relevant series at the on the assets invested in each of the series. relevant time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units Past Performance outstanding for the relevant series over the fiscal year. The performance information shown assumes that all (3) Distributions are automatically reinvested in additional units of the distributions made by the Fund in the years shown were Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, (4) This information is provided as at December 31 of the year shown. distribution, optional charges or expenses you may be charged (5) MER is based on total expenses (including a portion of the operating expenses of the underlying funds in proportion to the outside of the Fund or the effect of any income tax you may Fund’s holdings in the other funds and excluding distributions, have to pay as a result of your investment in the Fund that commissions and other portfolio transaction costs) for the stated would have reduced returns or performance. The performance

4 HSBC Canadian Bond Fund of different fund series may vary for a number of reasons, Annual Returns – Institutional Series including differences in management fees and expenses. The 15% Fund’s past performance does not necessarily indicate how it will perform in the future. 9.6% 10% 8.6% 8.6% 7.5% Year-by-Year Returns 5.2% 5% 3.8% Years ended December 31 3.2% 2.5% The following bar charts show the Fund’s performance for each 1.1% of the years shown, and illustrate how the Fund’s performance 0% -0.2% changed from year to year. In percentage terms, the bar charts show how much an investment made on the first day of each -5% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 financial year would have grown or decreased by the last day of 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 each financial year. Annual Compound Returns Annual Returns – Investor Series Year ended December 31, 2020 15% The following tables show the Fund’s historical annual compound total returns for the years indicated, compared with 10% 8.4% the benchmark index, the FTSE Canada Universe Bond Index, 7.5% 7.5% 6.3% over the same period. This index is a broad measure of the total 5% 4.0% return for the Canadian bond market, covering marketable 2.7% 2.0% 1.4% Canadian bonds with a term to maturity of more than one year. 0.0% 0% Investor Series -1.3% 1 Year 3 Year 5 Year 10 Year -5% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 HSBC Canadian Bond Fund 8.38% 4.84% 3.70% 3.79% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 FTSE Canada Universe Bond Index 8.68% 5.61% 4.19% 4.49%

Annual Returns – Premium Series Manager Series

15% 1 Year 3 Year 5 Year 10 Year HSBC Canadian Bond Fund 8.46% 4.92% 3.83% 4.10% FTSE Canada Universe Bond Index 8.68% 5.61% 4.19% 4.49% 10% 8.7% 7.7% 7.7% 6.6% Institutional Series 5% 4.3% 3.0% 1 Year 3 Year 5 Year 10 Year 2.3% 1.6% 0.3% HSBC Canadian Bond Fund 9.56% 5.99% 4.84% 4.93% 0% FTSE Canada Universe Bond Index 8.68% 5.61% 4.19% 4.49% -1.0% -5% Premium Series Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1 Year 3 Year 5 Year 10 Year HSBC Canadian Bond Fund 8.67% 5.13% 3.99% 4.08% Annual Returns – Manager Series FTSE Canada Universe Bond Index 8.68% 5.61% 4.19% 4.49% (1) Due to the fact that several benchmark indices are only available on 15% a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- 10% end date each Fund was in operation. 8.1% 8.0% 8.5% 6.4% (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations 5% 4.6% 2.9% section of this report. 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 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

5 HSBC Canadian Bond Fund

Summary of Investment Portfolio As at December 31, 2020

Asset Mix Percentage of NAV

Government Bonds 50.72% Corporate Bonds 38.88% Investment Funds 9.67% Cash & Equivalents 0.73% Total 100.00%

Top 25 Holdings Percentage of NAV

HSBC Mortgage Fund - Institutional Series 9.20% Province of Ontario, 2.90%, 06/02/2049 3.85% Province of British Columbia, 2.80%, 06/18/2048 3.38% Government of Canada, 4.01%, 12/01/2036 2.88% Province of Ontario, 2.90%, 06/02/2028 2.49% Government of Canada, 2.00%, 12/01/2051 2.46% Canada Housing Trust No. 1, 1.90%, 09/15/2026 2.45% Province of New Brunswick, 3.55%, 06/03/2043 2.22% Province of Alberta, 3.90%, 12/01/2033 2.04% Province of Ontario, 2.70%, 06/02/2029 1.67% Province of Saskatchewan, 5.00%, 03/05/2037 1.63% Granite REIT Holdings LP, 3.06%, 06/04/2027 1.50% City of Montreal, 3.00%, 09/01/2027 1.47% Canada Housing Trust No. 1, 1.95%, 12/15/2025 1.33% Toronto-Dominion Bank, 3.11%, 04/22/2030 1.30% Province of Newfoundland and Labrador, 2.65%, 10/17/2050 1.28% BHP Billiton Finance Ltd., 3.23%, 05/15/2023 1.24% City of Toronto, 3.80%, 12/13/2042 1.19% Province of Manitoba, 4.10%, 03/05/2041 1.16% Peel Regional Municipality, 5.10%, 06/29/2040 1.07% Province of Nova Scotia, 3.15%, 12/01/2051 1.05% Aviva PLC, 4.00%, 10/02/2030 1.03% City of Ottawa, 3.25%, 11/10/2047 1.01% Muskrat Falls / Labrador Transmission Assets Funding Trust, 3.83%, 06/01/2037 0.98% Province of Nova Scotia, 2.00%, 09/01/2030 0.97% Total of Top 25 Holdings 50.85%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure. 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.

6 HSBC Canadian Bond Fund

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

HSBC Global Corporate Bond Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Global Corporate Bond Fund

HSBC Global Asset Management (Canada) Limited US Treasury yields fell early in 2020 as equities sold off amid rd 3 Floor, 885 West Georgia Street the COVID-19 pandemic. Having settled down for the second Vancouver, BC V6C 3E8 half of the year, longer-dated yields began to rise, steepening You may also contact us using one of these methods to request a the curve into 2021. In 2020, two-, five-, 10- and 30-year yields copy of the Fund’s interim financial report, proxy voting policies fell by 1.45%, 1.33%, 1.00% and 0.74% to finish at 0.12%, and procedures, proxy voting disclosure record or quarterly 0.36%, 0.91% and 1.64%, respectively. portfolio disclosure. Gross of fees, the Fund outperformed its benchmark. An overweight position to US dollar bonds and an underweight Investment Objective and Strategies position to euro bonds contributed to performance as US bonds The fundamental investment objective of this Fund is to earn outperformed on a US-dollar-hedged basis. Issue selection also income while providing the potential for long-term added to relative returns, with strong performance in US-dollar capital growth. bonds more than offsetting weaker selection effects in euro and To achieve its objectives, the Fund invests primarily in a broad sterling bonds over the year. range of corporate fixed income securities from issuers around the world. Units of the Fund are only available in US dollars. Recent Developments In credit quality, the Fund is in line with the reference index. Risk Within this rating, the Fund is overweight in AAA and BB rated The risks of investing in the Fund remain as discussed in the bonds and underweight in AA, A and BBB rated bonds. Simplified Prospectus. During the year, there were no material By sector, the Fund’s largest overweight position compared to changes to the Fund that affected the overall risk level of the benchmark is in financials and its largest underweight the Fund. positions are in consumer non-cyclicals and utilities due to tight This Fund is suitable for investors who have U.S. dollars to valuations that make the sectors relatively less attractive. invest and want to earn interest income and achieve modest During the period there has been a change in composition to long-term growth, have a medium-term investment time the Independent Review Committee (the “IRC”). Effective horizon and have a low tolerance for risk in their returns. March 25, 2020, Ms. Louise Tymocko was appointed to the IRC as a member, replacing Mr. William (Bill) Bakk who left as his term of office expired. Ms. Lisa Pankratz also took over as Chair of the IRC effective March 25, 2020. In addition, effective

1 HSBC Global Corporate Bond Fund

February 18, 2021, Ms. Sharon Morrisroe was also appointed to We permit HSBC Investment Funds (Canada) Inc. to collect the IRC as a member, replacing Mr. Neil de Gelder who left these fees by redeeming sufficient units of the Fund with the following the expiry of his term in March of 2021. highest market value in your registered plan.

Related Party Transactions Purchases of Securities Underwritten by a Related Party We, on behalf of the Fund, or the Fund Manager, may, from During the year, the Fund invested in certain securities that time to time, enter into transactions or arrangements with or were underwritten, in whole or in part, by entities that are a involving other members of the HSBC Group or other people or related party to us. To proceed with the transactions, the Fund companies related or connected to us or the Fund. To proceed relied on the approval of the Fund’s Independent Review with the transactions, the Fund relies on the positive Committee by way of Standing Instruction. A condition of this recommendation of the Fund’s Independent Review Committee. A approval was that the transactions were performed in condition of this positive recommendation is that the transactions accordance with our policy on Purchases of Securities are performed in accordance with our policy on Related Party Underwritten by a Related Party. Transactions. For more general information on persons related to the Fund and the types of potential transactions, see the Financial Highlights Fund’s Simplified Prospectus. The following tables show selected key financial information about the Fund and are intended to help you understand the The following is a summary of current transactions and Fund’s financial performance for the past five years. This arrangements with entities that are related to us or the Fund. information is derived from the Fund’s audited annual financial statements. The information in the following tables is based on Manager, Trustee and Investment Advisor prescribed regulations, and, as a result, is not expected to add We are the manager, trustee and primary investment advisor of down due to the increase/decrease in net assets from the Fund. As manager, we manage the overall business and operations being based on average units outstanding during the operations of the Fund. HSBC Bank Canada has provided seed year and all other numbers being based on actual units capital to the Fund and has received units of the Fund in outstanding at the relevant point in time. exchange. During the year, this seed capital investment was redeemed and none remains outstanding at year-end. As All figures are stated in US dollars. trustee, we hold legal title to the property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio management services to the Fund. We HSBC Global Corporate Bond Fund – Investor receive a fee from the Fund for these services based on assets Series – Net Assets per Unit(1) under management, calculated daily and paid monthly. Year(s) ended December 31 We have entered into a sub-advisory agreement with HSBC 2020 2019 2018 2017 2016 Global Asset Management (USA) Inc. (an affiliate) and HSBC Net assets per unit, beginning of Global Asset Management (France) (an affiliate), under which year (2) $10.60 $9.78 $10.45 $10.16 $9.86 HSBC Global Asset Management (USA) Inc. and HSBC Global Increase (decrease) from Asset Management (France) provide investment advice and operations: portfolio management services to the Fund. We pay HSBC Total revenue 0.28 0.31 0.31 0.29 0.28 Total expenses (0.20) (0.20) (0.19) (0.19) (0.18) Global Asset Management (USA) Inc. and HSBC Global Asset Realized gains (losses) 0.01 0.16 0.26 (0.01) 0.05 Management (France) an investment advisory fee from the Unrealized gains (losses) 0.47 0.66 (0.67) 0.29 0.01 Fund based on assets under management, calculated daily and Total increase (decrease) from paid quarterly. For more information on our ability to hire sub- operations (2) $0.56 $0.93 $(0.29) $0.38 $0.16 advisors, see the section Organization and management of the Distributions to unitholders: Funds in the Fund’s Simplified Prospectus. From net investment income (excluding dividends) (0.08) (0.11) (0.11) (0.09) (0.09) Distribution Services From dividends – – – – – The Fund is distributed through us, HSBC Investment Funds From capital gains – (0.14) (0.23) – – Return of capital – – – – – (Canada) Inc. (our wholly owned subsidiary and affiliate) and HSBC Securities (Canada) Inc. (an affiliate) directly or through Total annual distributions (2,3) $(0.08) $(0.25) $(0.34) $(0.09) $(0.09) its division, HSBC InvestDirect. We pay distribution and Net assets per unit at December 31 of year shown (2) $11.14 $10.60 $9.78 $10.45 $10.16 servicing 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 and/or other HSBC Mutual Funds in a registered plan with HSBC Investment Funds (Canada) Inc., they may charge you an annual fee to cover the annual administration costs of the plan.

2 HSBC Global Corporate Bond Fund

Ratios and Supplemental Data HSBC Global Corporate Bond Fund – Manager (1) 2020 2019 2018 2017 2016 Series – Net Assets per Unit Year(s) ended December 31 Total net asset value (in 000s) (4) $11,105 $7,322 $4,289 $3,961 $3,316 2020** 2019** 2018** 2017 2016 Number of units Net assets per unit, beginning of outstanding (in 000s) (4) 997 691 438 379 327 year (2) $– $– $10.62 $10.24 $9.82 Management expense ratio ("MER") (5) 1.85% 1.88% 1.88% 1.88% 1.80% Increase (decrease) from MER before waivers or operations: absorptions (5) 1.85% 1.88% 1.89% 1.90% 1.85% Total revenue – – – (0.01) (0.01) Trading expense ratio (6) n/a n/a n/a n/a n/a Total expenses – – – – – Portfolio turnover rate (7) 48.74% 82.70% 81.74% 104.11% 81.94% Realized gains (losses) – – 0.18 (0.09) – Net asset value per unit (4) $11.14 $10.60 $9.78 $10.45 $10.16 Unrealized gains (losses) – – (0.18) 0.10 0.99

Total increase (decrease) from operations (2) $– $– $– $– $0.98 HSBC Global Corporate Bond Fund – Premium (1) Distributions to unitholders: Series – Net Assets per Unit From net investment income Year(s) ended December 31 (excluding dividends) – – (0.12) (0.15) (0.15) 2020 2019 2018 2017 2016 From dividends – – – – – From capital gains – – – – – Net assets per unit, beginning of Return of capital – – – – – year (2) $10.61 $9.79 $10.45 $10.16 $9.86 Total annual distributions (2,3) $– $– $(0.12) $(0.15) $(0.15) Increase (decrease) from Net assets per unit at December operations: 31 of year shown (2) $– $– $– $10.62 $10.24 Total revenue 0.28 0.31 0.30 0.29 0.28 Total expenses (0.16) (0.16) (0.16) (0.16) (0.15) Realized gains (losses) 0.02 0.15 0.27 0.01 0.04 Unrealized gains (losses) 0.42 0.72 (0.71) 0.29 (0.07) Ratios and Supplemental Data Total increase (decrease) from 2020** 2019** 2018** 2017 2016 operations (2) $0.56 $1.02 $(0.30) $0.43 $0.10 Total net asset value (in * * Distributions to unitholders: 000s) (4) $– $– $– $– $– From net investment income Number of units outstanding * * (excluding dividends) (0.12) (0.14) (0.15) (0.12) (0.12) (in 000s) (4) – – – – – From dividends – – – – – Management expense ratio From capital gains – (0.14) (0.23) – – ("MER") (5) – – – 0.00% 0.00% Return of capital – – – – – MER before waivers or absorptions (5) – – – 0.00% 0.00% Total annual distributions (2,3) $(0.12) $(0.28) $(0.38) $(0.12) $(0.12) Trading expense ratio (6) – – n/a n/a n/a Net assets per unit at December Portfolio turnover rate (7) – – 81.74% 104.11% 81.94% 31 of year shown (2) $11.14 $10.61 $9.79 $10.45 $10.16 Net asset value per unit (4) $– $– $– $10.62 $10.24

* Amount less than one thousand. Ratios and Supplemental Data ** The Manager Series was fully redeemed during 2018. In the subsequent years, there were no unitholders for the full calendar 2020 2019 2018 2017 2016 year; however, it remains in offer as at period-end.

Total net asset value (in 000s) (4) $45,227 $23,653 $19,828 $23,063 $14,336 Number of units outstanding (in 000s) (4) 4,059 2,230 2,026 2,206 1,411 Management expense ratio ("MER") (5) 1.48% 1.54% 1.52% 1.53% 1.46% MER before waivers or absorptions (5) 1.48% 1.54% 1.53% 1.54% 1.50% Trading expense ratio (6) n/a n/a n/a n/a n/a Portfolio turnover rate (7) 48.74% 82.70% 81.74% 104.11% 81.94% Net asset value per unit (4) $11.14 $10.61 $9.79 $10.45 $10.16

3 HSBC Global Corporate Bond Fund

HSBC Global Corporate Bond Fund – have waived or absorbed certain fees and expenses otherwise Institutional Series – Net Assets per Unit(1) payable by the Fund. The amount of expenses absorbed or waived Year(s) ended December 31 is at the discretion of and can be terminated at any time by us. (6) The trading expense ratio represents total commissions and other 2020 2019 2018 2017 2016 portfolio transaction costs expressed as an annualized percentage Net assets per unit, beginning of of daily average net asset value during the year. year (2) $10.57 $9.75 $10.42 $10.13 $9.84 (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Increase (decrease) from portfolio advisor manages its portfolio investments. A portfolio operations: turnover rate of 100% is equivalent to the Fund buying and selling Total revenue 0.28 0.31 0.30 0.28 0.28 all of the securities in its portfolio once in the course of the year. Total expenses (0.02) (0.03) (0.03) (0.02) (0.02) The higher the Fund’s portfolio turnover rate in a year, the greater Realized gains (losses) 0.02 0.15 0.27 (0.03) 0.04 the trading costs payable by the Fund in the year, and the greater Unrealized gains (losses) 0.56 0.76 (0.70) 0.32 0.26 the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate Total increase (decrease) from and the performance of the Fund. The rate is calculated based on operations (2) $0.84 $1.19 $(0.16) $0.55 $0.56 the lesser of purchases or sales of securities divided by the average Distributions to unitholders: weighted market value of the portfolio securities, excluding short- From net investment income term securities. (excluding dividends) (0.26) (0.27) (0.27) (0.26) (0.26) From dividends – – – – – Management Fees From capital gains – (0.15) (0.24) – – For the year ended December 31, 2020, the Fund paid us Return of capital – – – – – management fees of $525,299. The management fee for each Total annual distributions (2,3) $(0.26) $(0.42) $(0.51) $(0.26) $(0.26) series is calculated as a percentage of the daily net asset value Net assets per unit at December for that series. The fees are reduced, where required, so that 31 of year shown (2) $11.10 $10.57 $9.75 $10.42 $10.13 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Ratios and Supplemental Data The Fund’s management fees were used by us to pay costs for 2020 2019 2018 2017 2016 managing the investment portfolio, providing investment Total net asset value (in analysis and recommendations, making investment decisions, 000s) (4) $45,582 $27,026 $20,339 $21,427 $28,376 making brokerage arrangements for the purchase and sale of Number of units the investment portfolio and providing other services. The outstanding (in 000s) (4) 4,107 2,558 2,086 2,057 2,802 management fees also funded commission payments and other Management expense ratio ("MER") (5) 0.19% 0.25% 0.25% 0.23% 0.19% compensation (collectively “distribution costs”) to sales MER before waivers or representatives and registered dealers and brokers, including absorptions (5) 0.19% 0.25% 0.25% 0.23% 0.22% HSBC Investment Funds (Canada) Inc., for units of the Fund Trading expense ratio (6) n/a n/a n/a n/a n/a bought and held by unitholders. Finally, we used management Portfolio turnover rate (7) 48.74% 82.70% 81.74% 104.11% 81.94% fees to pay for additional marketing and distribution services to Net asset value per unit (4) $11.10 $10.57 $9.75 $10.42 $10.13 the Fund. (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial For the year ended December 31, 2020, approximately 46% of Reporting Standards (“IFRS”). Under IFRS, the net assets per unit the total management fees collected from all HSBC Mutual presented in the financial statements is the same as the net asset Funds were used to fund distribution costs. In comparison, for value calculated for fund pricing purposes. the Fund, such distribution costs represented 35% of the (2) Net assets per unit and distributions per unit are based on the management fees collected. This may vary by series, actual number of units outstanding for the relevant series at the depending on the assets invested in each of the series. relevant time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. Past Performance The performance information shown assumes that all (3) Distributions are automatically reinvested in additional units of the distributions made by the Fund in the years shown were Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, (4) This information is provided as at December 31 of the year shown. distribution, optional charges or expenses you may be charged (5) MER is based on total expenses (excluding distributions, outside of the Fund or the effect of any income tax you may commissions and other portfolio transaction costs) for the stated have to pay as a result of your investment in the Fund that year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one would have reduced returns or performance. The performance mutual fund to another and from one series of units to another. We of different fund series may vary for a number of reasons, including differences in management fees and expenses. The Fund’s past performance does not necessarily indicate how it will perform in the future.

4 HSBC Global Corporate Bond Fund

Year-by-Year Returns Annual Returns – Institutional Series Years ended December 31 15% 12.8% The following bar charts show the Fund’s performance for each of the years shown, and illustrate how the Fund’s performance 10% changed from year to year. In percentage terms, the bar charts 7.7% show how much an investment made on the first day of each 5.6% 5.5% 5% financial year would have grown or decreased by the last day of each financial year. 0% Annual Returns – Investor Series -1.5% -5% 15% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2016 2017 2018 2019 2020 10.9% 10% Annual Compound Returns 5.9% 5% 3.9% 3.8% Year ended December 31, 2020 The following tables show the Fund’s historical annual compound total returns for the years indicated, compared with 0% the benchmark index over the same period. The Fund’s benchmark is the Bloomberg Barclays Global Aggregate -5% -3.1% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Corporates AWS Index (hedged US$). The Bloomberg Barclays 2016 2017 2018 2019 2020 Global Aggregate Corporates AWS Index is a flagship measure of global investment-grade corporate debts from 24 local Annual Returns – Premium Series currency markets. 15% Investor Series 11.3% 10% Since 1 Year 3 Year 5 Year Inception 6.3% HSBC Global Corporate Bond Fund 5.89% 4.42% 4.18% 3.91% 4.2% 4.1% 5% Bloomberg Barclays Global Aggregate Corporates AWS Index (hedged US$) 7.42% 6.16% 6.16% 5.87%

0% Institutional Series -2.8% -5% Since Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 1 Year 3 Year 5 Year Inception 2016 2017 2018 2019 2020 HSBC Global Corporate Bond Fund 7.65% 6.14% 5.89% 5.61% Bloomberg Barclays Global Aggregate Annual Returns – Manager Series Corporates AWS Index (hedged US$) 7.42% 6.16% 6.16% 5.87%

15% Premium Series

10% Since 1 Year 3 Year 5 Year Inception 5.8% 5.1% HSBC Global Corporate Bond Fund 6.27% 4.78% 4.54% 4.26% 5% Bloomberg Barclays Global Aggregate Corporates AWS Index (hedged US$) 7.42% 6.16% 6.16% 5.87% 0% (1) Due to the fact that several benchmark indices are only available on a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- -5% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 end date each Fund was in operation. 2016 2017 2018* 2019* 2020* (2) For investment commentary and relative performance of the Fund * The Manager Series was fully redeemed during 2018. In the subse- compared to its benchmark, please refer to the Results of Operations quent years, there were no unitholders for the full calendar year; section of this report. however, it remains in offer as at period-end.

5 HSBC Global Corporate Bond Fund

Summary of Investment Portfolio Geographic Mix As at December 31, 2020 Percentage

of NAV

Japan 0.18% Asset Mix Austria 0.13% Percentage Cash & Equivalents 2.28% of NAV Total 100.00%

Corporate Bonds 93.99% Government Bonds 3.73% Cash & Equivalents 2.28% Top 25 Holdings Total 100.00% Percentage

of NAV Geographic Mix Bank of Nova Scotia, 1.63%, 05/01/2023 1.26% United States Treasury Note, 1.13%, 05/15/2040 1.11% Percentage Oracle Corp., 2.50%, 04/01/2025 1.07% of NAV Canadian Imperial Bank of Commerce, 0.95%, 10/23/2025 1.01% United States 48.30% EnBW Energie Baden-Wuerttemberg AG, 3.38%, 04/05/2077 1.00% France 10.40% Unilever Capital Corp., 0.38%, 09/14/2023 1.00% Netherlands 7.39% AIG Global Funding, 0.90%, 09/22/2025 0.98% Germany 6.66% Bank of Montreal, 0.45%, 12/08/2023 0.98% Canada 4.76% Toyota Motor Credit Corp., 0.35%, 10/14/2022 0.98% United Kingdom 4.49% United States Treasury Note, 2.00%, 02/15/2050 0.84% Spain 2.01% WW Grainger Inc., 1.85%, 02/15/2025 0.82% Switzerland 1.80% Intesa Sanpaolo SpA, 0.75%, 12/04/2024 0.80% Italy 1.74% LafargeHolcim Sterling Finance (Netherlands) BV, 3.00%, Luxembourg 1.62% 05/12/2032 0.79% Australia 1.57% Electricite de France SA, 1.00%, 10/13/2026 0.77% Ireland 1.41% UBS Group AG, 1.01%, 07/30/2024 0.73% Cayman Islands 1.21% Morgan Stanley, 2.70%, 01/22/2031 0.65% Bermuda 0.80% Aircastle Ltd., 5.25%, 08/11/2025 0.63% Norway 0.71% BNP Paribas SA, 1.13%, 08/28/2024 0.63% Belgium 0.49% Cooperatieve Rabobank UA, 0.75%, 08/29/2023 0.63% British Virgin Islands 0.30% Otis Worldwide Corp., 0.68%, 04/05/2023 0.63% Sweden 0.28% New York Life Global Funding, 2.00%, 01/22/2025 0.62% Denmark 0.25% The Walt Disney Co., 2.75%, 09/01/2049 0.62% Jersey 0.25% Credit Suisse, 0.45%, 05/19/2025 0.61% Portugal 0.25% Comcast Corp., 3.75%, 04/01/2040 0.59% Mexico 0.24% National Bank of Canada, 2.15%, 10/07/2022 0.56% New Zealand 0.24% Total of Top 25 Holdings 20.31% Saudi Arabia 0.24%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

6 HSBC Global Corporate Bond Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC Emerging Markets Debt Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Emerging Markets Debt Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the This Fund is suitable for investors who want to earn interest Fund; we, us and our refer to HSBC Global Asset Management income and achieve modest long-term capital growth, have a (Canada) Limited; and the Fund refers to the HSBC Emerging long-term investment time horizon and have a low to medium Markets Debt Fund. tolerance for risk in their returns. We are the manager, trustee and primary investment advisor of Results of Operations the Fund. We have entered into a sub-advisory agreement with As of December 31, 2020, the Fund's net assets decreased by HSBC Global Asset Management (USA) Inc., under which 15.8% to $373.0 million from $443.0 million at the end of 2019. HSBC Global Asset Management (USA) Inc. provides Net withdrawals, partially offset by positive investment investment advice and portfolio management services to the performance, resulted in an overall decrease in net asset value. Fund. For an explanation of the relationship between us and the sub-advisor, see the section Selection of Sub-Advisors in the Investment Performance Fund’s Simplified Prospectus. The HSBC Emerging Markets Debt Fund (Investor Series) rose 1.66% for the 12 months ending December 31, 2020, while the Introduction benchmark rose 2.66% over the same period. The benchmark is This Annual Management Report of Fund Performance contains a weighted composite consisting of the JP Morgan Emerging financial highlights but does not contain the complete annual Market Bond Index – Global Diversified (hedged C$) (50%), JP financial statements of the Fund. You may obtain a copy of the Morgan Emerging Local Markets Index Plus (C$) (25%) and JP annual financial statements at your request, at no cost, by Morgan Government Bond Index – Emerging Markets Global calling us toll-free at 1-888-390-3333, by visiting our website at Diversified Unhedged (C$) (25%). The Fund’s returns are after the deduction of fees and expenses, while the benchmark’s www.assetmanagement.hsbc.ca, by visiting the SEDAR returns do not include any costs of investing. See the Past website at www.sedar.com or by writing to us at: Performance section for the returns of other series of the Fund, HSBC Global Asset Management (Canada) Limited which may vary due to differences in management fees 3rd Floor, 885 West Georgia Street and expenses. Vancouver, BC V6C 3E8 Emerging market debt assets experienced a sharp downturn in You may also contact us using one of these methods to request a March as COVID-19 rapidly spread across regions and the copy of the Fund’s interim financial report, proxy voting policies outlook for the global economy deteriorated significantly. These and procedures, proxy voting disclosure record or quarterly assets then posted a strong rally in the second half of 2020 as portfolio disclosure. global risk sentiment improved given the reopening of economies, continued supportive global fiscal and monetary Investment Objective and Strategies policy measures to combat the crisis, weakness in the US The fundamental investment objective of this Fund is to provide dollar, and a rebound in oil prices. income and long-term capital growth. Gross of fees, the Fund outperformed the benchmark, driven by To achieve its objectives, the Fund, directly or indirectly, invests its hard currency exposure. Overweight positions to quasi- primarily in a diversified portfolio of investment-grade and non sovereign rather than sovereign bonds contributed to investment-grade debt instruments issued by governments in performance, and off-benchmark exposure to corporates was emerging market countries and corporations or other issuers also a positive contributor in the risk rally that followed the market sell-off. either based in or that have a significant business or investment link with emerging market countries. Such debt instruments Within local debt exposure, an overweight position to local rate may be denominated in US dollars or other foreign currencies, duration and tactical overweight positions to the Mexican peso including the local currency of emerging market countries. The and Chilean peso were the largest contributors to performance. Fund may also use derivatives to gain or reduce its exposure to Detractors from performance were an overweight position to fixed income securities or emerging market currencies or for Sri Lanka hard currency debt and an overweight position to the hedging purposes. Brazilian real. Risk Recent Developments The risks of investing in the Fund remain as discussed in the In hard currency, valuations now stand only slightly cheaper Simplified Prospectus. During the year, there were no material than their historical averages. The portfolio management team changes to the Fund that affected the overall risk level of expects interest rates to remain relatively anchored by global the Fund. central bank policies and the ongoing economic impact of the COVID-19 pandemic, and for gains to come entirely from spreads going forward.

1 HSBC Emerging Markets Debt Fund

Within the investment-grade space, there is value in state- paid quarterly. For more information on our ability to hire sub- owned companies from non-oil-exporting regions such as advisors, see the section Organization and management of the Eastern Europe and Asia. In the high-yield sector, the portfolio Funds in the Fund’s Simplified Prospectus. management team sees pockets of value in Latin America and Africa. The debt crisis in emerging markets means more Distribution Services defaults are likely ahead in 2021, and therefore active The Fund is distributed through us, HSBC Investment Funds management can potentially add a lot of value through deep (Canada) Inc. (our wholly owned subsidiary and affiliate) and country research and analysis. HSBC Securities (Canada) Inc. (an affiliate) directly or through its division, HSBC InvestDirect. We pay distribution and The portfolio management team believes emerging market local servicing fees to them based on the amount of assets held in currency debt should benefit from the high real interest rates in the investor’s account, and additionally, in some cases, on the many countries (which may decline via rate cuts and emerging amount of the initial purchase. If you hold units of this Fund market central bank quantitative easing) and from relatively and/or other HSBC Mutual Funds in a registered plan with attractive currencies that should gain perhaps 5% on average, HSBC Investment Funds (Canada) Inc., they may charge you an as the US dollar experiences ongoing cyclical decline into 2021. annual fee to cover the annual administration costs of the plan. During the period there has been a change in composition to We permit HSBC Investment Funds (Canada) Inc. to collect the Independent Review Committee (the “IRC”). Effective these fees by redeeming sufficient units of the Fund with the March 25, 2020, Ms. Louise Tymocko was appointed to the IRC highest market value in your registered plan. as a member, replacing Mr. William (Bill) Bakk who left as his term of office expired. Ms. Lisa Pankratz also took over as Chair Purchases of Securities Underwritten by a Related Party of the IRC effective March 25, 2020. In addition, effective During the year, the Fund invested in certain securities that February 18, 2021, Ms. Sharon Morrisroe was also appointed to were underwritten, in whole or in part, by entities that are a the IRC as a member, replacing Mr. Neil de Gelder who left related party to us. To proceed with the transactions, the Fund following the expiry of his term in March of 2021. relied on the approval of the Fund’s Independent Review Committee by way of Standing Instruction. A condition of this Related Party Transactions approval was that the transactions were performed in We, on behalf of the Fund, or the Fund Manager, may, from accordance with our policy on Purchases of Securities time to time, enter into transactions or arrangements with or Underwritten by a Related Party. involving other members of the HSBC Group or other people or companies related or connected to us or the Fund. To proceed Financial Highlights with the transactions, the Fund relies on the positive The following tables show selected key financial information recommendation of the Fund’s Independent Review Committee. A about the Fund and are intended to help you understand the condition of this positive recommendation is that the transactions Fund’s financial performance for the past five years. This are performed in accordance with our policy on Related Party information is derived from the Fund’s audited annual financial Transactions. For more general information on persons related statements. The information in the following tables is based on to the Fund and the types of potential transactions, see the prescribed regulations, and, as a result, is not expected to add Fund’s Simplified Prospectus. down due to the increase/decrease in net assets from The following is a summary of current transactions and operations being based on average units outstanding during the arrangements with entities that are related to us or the Fund. year and all other numbers being based on actual units outstanding at the relevant point in time. 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 property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Fund for these services based on assets under management, calculated daily and paid monthly. We have entered into a sub-advisory agreement with HSBC Global Asset Management (USA) Inc. (an affiliate), under which HSBC Global Asset Management (USA) Inc. provides investment advice and portfolio management services to the Fund. We pay HSBC Global Asset Management (USA) Inc. a fee based on assets under management, calculated daily and

2 HSBC Emerging Markets Debt Fund

HSBC Emerging Markets Debt Fund – Investor HSBC Emerging Markets Debt Fund – Premium Series – Net Assets per Unit(1) Series – Net Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $10.03 $9.73 $10.38 $10.12 $10.05 year (2) $9.98 $9.69 $10.33 $10.07 $10.00 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.48 0.51 0.54 0.45 0.48 Total revenue 0.47 0.51 0.54 0.44 0.48 Total expenses (0.18) (0.18) (0.18) (0.18) (0.18) Total expenses (0.15) (0.15) (0.14) (0.15) (0.15) Realized gains (losses) (0.22) 0.01 (0.49) 0.32 0.16 Realized gains (losses) (0.22) 0.01 (0.49) 0.31 0.15 Unrealized gains (losses) 0.06 0.28 (0.19) (0.02) (0.09) Unrealized gains (losses) 0.10 0.28 (0.23) (0.04) (0.04) Total increase (decrease) from Total increase (decrease) from operations (2) $0.14 $0.62 $(0.32) $0.57 $0.37 operations (2) $0.20 $0.65 $(0.32) $0.56 $0.44 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) (0.29) (0.32) (0.33) (0.27) (0.29) (excluding dividends) (0.32) (0.36) (0.36) (0.30) (0.32) From dividends – – – – – From dividends – – – – – From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $(0.29) $(0.32) $(0.33) $(0.27) $(0.29) Total annual distributions (2,3) $(0.32) $(0.36) $(0.36) $(0.30) $(0.32) Net assets per unit at December Net assets per unit at December 31 31 of year shown (2) $9.88 $10.03 $9.73 $10.38 $10.12 of year shown (2) $9.85 $9.98 $9.69 $10.33 $10.07

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net asset value (in 000s) (4) $9,478 $10,603 $12,018 $14,598 $17,924 000s) (4) $4,901 $5,054 $5,532 $6,327 $6,790 Number of units Number of units outstanding (in 000s) (4) 959 1,057 1,234 1,406 1,771 outstanding (in 000s) (4) 498 506 571 612 674 Management expense Management expense ratio ratio ("MER") (5) 1.91% 1.84% 1.80% 1.78% 1.78% ("MER") (5) 1.54% 1.48% 1.43% 1.43% 1.43% MER before waivers or MER before waivers or absorptions (5) 1.91% 1.84% 1.80% 1.78% 1.78% absorptions (5) 1.54% 1.48% 1.43% 1.43% 1.43% Trading expense ratio (6) n/a n/a n/a n/a n/a Trading expense ratio (6) n/a n/a n/a n/a n/a Portfolio turnover rate (7) 115.15% 88.20% 84.05% 51.34% 79.90% Portfolio turnover rate (7) 115.15% 88.20% 84.05% 51.34% 79.90% Net asset value per unit (4) $9.88 $10.03 $9.73 $10.38 $10.12 Net asset value per unit (4) $9.85 $9.98 $9.69 $10.33 $10.07

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) Year(s) ended December 31 Year(s) ended December 31 2020** 2019** 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $– $9.32 $9.99 $9.79 $9.79 year (2) $10.06 $9.77 $10.40 $10.15 $10.08 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue – 0.14 0.52 0.43 0.47 Total revenue 0.48 0.51 0.55 0.44 0.48 Total expenses – (0.04) (0.16) (0.18) (0.19) Total expenses (0.02) (0.02) (0.02) (0.01) (0.01) Realized gains (losses) – (0.01) (0.47) 0.29 0.14 Realized gains (losses) (0.21) 0.01 (0.50) 0.29 0.14 Unrealized gains (losses) – 0.23 (0.18) (0.03) (0.07) Unrealized gains (losses) 0.04 0.31 (0.18) (0.05) (0.08) Total increase (decrease) from Total increase (decrease) from operations (2) $– $0.32 $(0.29) $0.51 $0.35 operations (2) $0.29 $0.81 $(0.15) $0.67 $0.53 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) – (0.11) (0.37) (0.32) (0.34) (excluding dividends) (0.43) (0.49) (0.49) (0.44) (0.46) From dividends – – – – – From dividends – – – – – From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $– $(0.11) $(0.37) $(0.32) $(0.34) Total annual distributions (2,3) $(0.43) $(0.49) $(0.49) $(0.44) $(0.46) Net assets per unit at December 31 Net assets per unit at December of year shown (2) $– $– $9.32 $9.99 $9.79 31 of year shown (2) $9.94 $10.06 $9.77 $10.40 $10.15

Ratios and Supplemental Data Ratios and Supplemental Data 2020** 2019** 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net asset value 000s) (4) $– $– $3 $3 $3 (in 000s) (4) $358,665 $427,330 $492,884 $442,807 $309,614 Number of units outstanding Number of units * * * (in 000s) (4) – – – – – outstanding (in Management expense ratio 000s) (4) 36,087 42,478 50,468 42,561 30,514 ("MER") (5) – 1.46% 1.70% 1.82% 1.88% Management MER before waivers or expense ratio absorptions (5) – 21.13% 29.90% 28.67% 27.06% ("MER") (5) 0.25% 0.20% 0.16% 0.13% 0.14% Trading expense ratio (6) – n/a n/a n/a n/a MER before waivers Portfolio turnover rate (7) – 88.20% 84.05% 51.34% 79.90% or absorptions (5) 0.25% 0.20% 0.16% 0.13% 0.14% Net asset value per unit (4) $– $– $9.32 $9.99 $9.79 Trading expense * Amount less than one thousand. ratio (6) n/a n/a n/a n/a n/a Portfolio turnover ** The Manager Series was fully redeemed during 2019 & 2020; rate (7) 115.15% 88.20% 84.05% 51.34% 79.90% however, it remains in offer as at period-end. Net asset value per

unit (4) $9.94 $10.06 $9.77 $10.40 $10.15 (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial Reporting Standards (“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 time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. (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 December 31 of the year shown. (5) MER is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one

4 HSBC Emerging Markets Debt Fund

mutual fund to another and from one series of units to another. We of different fund series may vary for a number of reasons, have waived or absorbed certain fees and expenses otherwise including differences in management fees and expenses. The payable by the Fund. The amount of expenses absorbed or waived Fund’s past performance does not necessarily indicate how it is at the discretion of and can be terminated at any time by us. will perform in the future. (6) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage Year-by-Year Returns of daily average net asset value during the year. Years ended December 31 (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s The following bar charts show the Fund’s performance for each portfolio advisor manages its portfolio investments. A portfolio of the years shown, and illustrate how the Fund’s performance turnover rate of 100% is equivalent to the Fund buying and selling changed from year to year. In percentage terms, the bar charts all of the securities in its portfolio once in the course of the year. The higher the Fund’s portfolio turnover rate in a year, the greater show how much an investment made on the first day of each the trading costs payable by the Fund in the year, and the greater financial year would have grown or decreased by the last day of the chance of an investor receiving taxable capital gains in the year. each financial year. There is not necessarily a relationship between a high turnover rate and the performance of the Fund. The rate is calculated based on Annual Returns – Investor Series the lesser of purchases or sales of securities divided by the average 20% weighted market value of the portfolio securities, excluding short- term securities. 15% 12.7% Management Fees 10% 5.3% 6.4% For the year ended December 31, 2020, the Fund paid us 5% 3.2% 3.6% 2.1% 1.7% management fees of $200,169. 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 -5% -4.1% -3.0% these fees do not duplicate fees payable by mutual funds in -10% which the Fund invests for the same service. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2012 2013 2014 2015 2016 2017 2018 2019 2020 The Fund’s management fees were used by us to pay costs for managing the investment portfolio, providing investment Annual Returns – Premium Series analysis and recommendations, making investment decisions, 20% making brokerage arrangements for the purchase and sale of 15% 13.2% the investment portfolio and providing other services. The 10% management fees also funded commission payments and other 6.8% 5.6% compensation (collectively “distribution costs”) to sales 3.9% 5% 3.5% 2.5% representatives and registered dealers and brokers, including 2.0% HSBC Investment Funds (Canada) Inc., for units of the Fund 0% bought and held by unitholders. Finally, we used management -5% -3.7% -2.7% 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 Dec. 31 Dec. 31 2012 2013 2014 2015 2016 2017 2018 2019 2020 For the year ended December 31, 2020, approximately 46% of the total management fees collected from all HSBC Mutual Annual Returns – Manager Series

Funds were used to fund distribution costs. In comparison, for 20% the Fund, such distribution costs represented 37% of the 14.0% management fees collected. This may vary by series depending 15% on the assets invested in each of the series. 10% 5.3% Past Performance 5% 3.8% 3.5% 0.1% The performance information shown assumes that all 0% distributions made by the Fund in the years shown were -5% -3.5% -2.9% reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 distribution, optional charges or expenses you may be charged 2012 2013 2014 2015 2016 2017 2018 2019* 2020* outside of the Fund or the effect of any income tax you may * The Manager Series was fully redeemed during 2019 and 2020; have to pay as a result of your investment in the Fund that however, it remains in offer as at period-end. would have reduced returns or performance. The performance

5 HSBC Emerging Markets Debt Fund

Annual Returns – Institutional Series Investor Series

20% Since 14.7% 15% 1 Year 3 Year 5 Year Inception HSBC Emerging Markets Debt Fund 1.66% 1.61% 2.72% 2.80% 10% 8.2% 7.0% 50% JPM Emerging Market Bond Index 4.9% 5.3% – Global Diversified (hedged C$), 25% 5% 3.8% 3.4% JPM EM Local Mkts Index Plus (C$), 0% 25% JPM GBI – EM Global Diversified -1.4% Unhedged (C$) 2.41% 3.44% 4.90% 4.76% -5% -2.5% 50% JPM EM Bond Index - Global -10% Hedged (C$), 25% JPM GBI - EM Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Global Diversified Unhedged (C$) & 2012 2013 2014 2015 2016 2017 2018 2019 2020 25% JPM Emerging Local Markets Index Plus (C$) 2.72% 3.38% 4.78% 3.51% Annual Compound Returns Institutional Series Year ended December 31, 2020 The following tables show the Fund’s historical annual Since compound total returns for the years indicated, compared with 1 Year 3 Year 5 Year Inception the benchmark index over the same period. A component of HSBC Emerging Markets Debt Fund 3.35% 3.30% 4.43% 4.50% 50% JPM Emerging Market Bond Index the blended benchmark of the Fund changed in December – Global Diversified (hedged C$), 25% 2020. The new blended benchmark is a weighted composite JPM EM Local Mkts Index Plus (C$), consisting of the JP Morgan Emerging Market Bond Index – 25% JPM GBI – EM Global Diversified Global Diversified (hedged in Canadian dollars) (50%), JP Unhedged (C$) 2.41% 3.44% 4.90% 4.76% Morgan Emerging Local Markets Index Plus (in Canadian 50% JPM EM Bond Index - Global dollars) (25%) and JP Morgan Government Bond Index – Hedged (C$), 25% JPM GBI - EM Global Diversified Unhedged (C$) & Emerging Markets Global Diversified Unhedged (in Canadian 25% JPM Emerging Local Markets dollars) (25%). The old blended benchmark is a weighted Index Plus (C$) 2.72% 3.38% 4.78% 3.51% composite consisting of the JP Morgan Emerging Markets Bond Index – Global Hedged (in Canadian dollars) (50%), JP Premium Series Morgan Emerging Local Markets Index Plus (in Canadian Since dollars) (25%) and JP Morgan Government Bond Index – 1 Year 3 Year 5 Year Inception Emerging Markets Global Diversified Unhedged (in Canadian HSBC Emerging Markets Debt Fund 2.04% 1.98% 3.09% 3.30% dollars) (25%). The 50% weighting to the JP Morgan Emerging 50% JPM Emerging Market Bond Index – Global Diversified (hedged C$), 25% Markets Bond Index – Global Hedged was replaced by the JP JPM EM Local Mkts Index Plus (C$), Morgan Emerging Markets Bond Index – Global Diversified. 25% JPM GBI – EM Global Diversified Even though both indexes are highly similar, the latter has Unhedged (C$) 2.41% 3.44% 4.90% 4.90% become a more industry accepted benchmark with better risk/ 50% JPM EM Bond Index - Global return characteristics. The benefit for clients is that they will Hedged (C$), 25% JPM GBI - EM have a better comparable reference to judge our performance. Global Diversified Unhedged (C$) & 25% JPM Emerging Local Markets The JP Morgan Emerging Market Bond Index – Global Index Plus (C$) 2.72% 3.38% 4.78% 0.00% Diversified (hedged in Canadian dollars) (50%) tracks total (1) Due to the fact that several benchmark indices are only available on returns for traded external debt instruments in the emerging a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- markets. The diversified index limits the weights of the index end date each Fund was in operation. countries by only including a specified portion of those (2) For investment commentary and relative performance of the Fund countries eligible currency faces amounts of debt outstanding. compared to its benchmark, please refer to the Results of Operations This provides a more even distribution of weights within the section of this report. countries in the index. The JP Morgan Emerging Local Markets Index Plus (in Canadian dollars) tracks total returns for local currency-denominated money-market instruments in emerging markets. The JP Morgan Government Bond Index – Emerging Markets Global Diversified Unhedged (in Canadian dollars) is a comprehensive global local emerging markets index, and consists of liquid, fixed rate, domestic currency government bonds.

6 HSBC Emerging Markets Debt Fund

Summary of Investment Portfolio Geographic Mix As at December 31, 2020 Percentage of NAV

Costa Rica 0.58% Sector Mix Canada 0.53% Percentage Sri Lanka 0.53% of NAV Gabon 0.50% Government Bonds 64.07% Jamaica 0.46% Energy 9.57% Hong Kong 0.44% Financials 2.05% Paraguay 0.44% Materials 2.00% Ecuador 0.43% Utilities 1.54% Ivory Coast 0.42% Consumer Staples 0.66% Guatemala 0.41% Real Estate 0.64% Senegal 0.33% Communication Services 0.36% India 0.29% Industrials 0.17% Uzbekistan 0.29% Health Care 0.12% Croatia 0.26% Cash & Equivalents 18.82% Serbia 0.25% Total 100.00% El Salvador 0.16%

Ireland 0.16% Pakistan 0.16% Geographic Mix Azerbaijan 0.15% Percentage Montenegro 0.15% of NAV Belarus 0.14% Jersey 0.14% Indonesia 5.95% Bermuda 0.09% China 4.81% Bahamas 0.08% South Africa 4.56% Honduras 0.08% Mexico 4.51% Iraq 0.08% Brazil 4.26% Zambia 0.06% Russia 4.02% Uruguay 0.05% Malaysia 3.36% Tunisia 0.04% Peru 3.17% Cash & Equivalents 18.82% Colombia 2.84% Total 100.00% Poland 2.65% Turkey 2.10% Thailand 1.79% Qatar 1.76% Chile 1.75% Netherlands 1.74% Egypt 1.71% Romania 1.70% Ukraine 1.70% United Arab Emirates 1.61% Luxembourg 1.36% Panama 1.33% Philippines 1.33% Argentina 1.21% British Virgin Islands 1.18% Morocco 1.16% Dominican Republic 1.13% Bahrain 1.11% Cayman Islands 0.90% Hungary 0.89% Nigeria 0.86% Ghana 0.80% Kazakhstan 0.76% Czech Republic 0.75% Saudi Arabia 0.74% Oman 0.72% United States 0.64% Kenya 0.62%

7 HSBC Emerging Markets Debt Fund

Top 25 Holdings Percentage of NAV

United States Treasury Bill, 0.11%, 04/22/2021 3.41% Poland Government Bond, 2.50%, 01/25/2023 2.65% Brazil Letras do Tesouro Nacional, 0.00%, 04/01/2021 2.61% Malaysia Government Bond, 4.16%, 07/15/2021 1.76% South Africa Government Bond, 7.00%, 02/28/2031 1.42% China Government Bond, 3.25%, 06/06/2026 1.26% Russian Foreign Bond - Eurobond, 4.38%, 03/21/2029 1.20% Republic of South Africa Government Bond, 8.00%, 01/31/2030 1.18% Peruvian Government International Bond, 6.35%, 08/12/2028 1.02% Indonesia Treasury Bond, 6.13%, 05/15/2028 0.92% Colombian TES, 7.75%, 09/18/2030 0.90% Philippine Government International Bond, 3.70%, 02/02/2042 0.90% Ukraine Government International Bond, 7.38%, 09/25/2032 0.89% Russian Federal Bond - OFZ, 7.75%, 09/16/2026 0.87% Indonesia Treasury Bond, 8.25%, 05/15/2029 0.84% Hungary Government Bond, 3.00%, 10/27/2027 0.82% Colombia Government International Bond, 4.50%, 03/15/2029 0.80% Egypt Government International Bond, 7.05%, 01/15/2032 0.79% Republic of South Africa Government International Bond, 5.65%, 09/27/2047 0.75% China Government Bond, 3.19%, 04/11/2024 0.74% Indonesia Government International Bond, 4.35%, 01/11/2048 0.72% Argentine Republic Government International Bond, 0.13%, 07/09/2035 0.66% Indonesia Treasury Bond, 8.25%, 07/15/2021 0.65% Mexican Bonos, 7.75%, 05/29/2031 0.65% China Development Bank, 3.09%, 06/18/2030 0.62% Total of Top 25 Holdings 29.03%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

8 HSBC Emerging Markets Debt Fund

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

HSBC Monthly Income Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Monthly Income Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Investment Performance Fund; we, us and our refer to HSBC Global Asset Management The HSBC Monthly Income Fund (Investor Series) rose 3.17% (Canada) Limited; and the Fund refers to the HSBC Monthly for the 12 months ending December 31, 2020, while the Income Fund. benchmark rose 6.52% over the same period. The benchmark is a weighted composite consisting of the S&P/TSX Capped We are the manager, trustee and primary investment advisor of Composite Index (35%), HSBC Mortgage Fund Benchmark the Fund. (30%), FTSE Canada Short-Term Bond Index (15%), FTSE Introduction Canada Mid-Term Bond Index (15%) and S&P/TSX Preferred This Annual Management Report of Fund Performance contains Share Index (5%). The Fund’s returns are after the deduction of financial highlights but does not contain the complete annual fees and expenses, while the benchmark’s returns do not financial statements of the Fund. You may obtain a copy of the include any costs of investing. See the Past Performance annual financial statements at your request, at no cost, by section for the returns of other series of the Fund, which may calling us toll-free at 1-888-390-3333, by visiting our website at vary due to differences in management fees and expenses. www.assetmanagement.hsbc.ca, by visiting the SEDAR Financial markets unravelled over the latter half of the first website at www.sedar.com or by writing to us at: quarter as health officials around the world recommended HSBC Global Asset Management (Canada) Limited social distancing and quarantining of non-essential workers to 3rd Floor, 885 West Georgia Street stop the spread of COVID-19. This caused a brief but acute Vancouver, BC V6C 3E8 liquidity crisis, driving indiscriminate selling of financial assets worldwide. After the first quarter, risk sentiment shifted quickly You may also contact us using one of these methods to request a as governments enacted massive fiscal and monetary stimulus copy of the Fund’s interim financial report, proxy voting policies that drove a sustained recovery in financial markets over the and procedures, proxy voting disclosure record or quarterly remainder of 2020. portfolio disclosure. Markets finished the year with impressive gains. The improving Investment Objective and Strategies economy, as well as expectations for a similar sharp rebound in corporate profits in 2021, supported forward-looking investor The fundamental investment objective of this Fund is to provide sentiment, as did US election results and, most importantly, the a reasonably consistent level of monthly income while aiming announcement that three vaccines for COVID-19 had test to preserve capital over the medium to long term. results with extremely high efficacy. To achieve its objectives, the Fund invests primarily in a Although the Fund generated a positive return in a volatile year, diversified portfolio of debt and equity instruments. The it underperformed its benchmark. Security selection within the investment strategy is to position the Fund to maximize income fixed income portion of the Fund added value, but this was and protect capital while providing potential for long-term more than offset by the negative impacts of security selection capital appreciation. in the Fund’s equity segments. Risk Recent Developments The risks of investing in the Fund remain as discussed in the Because of the unprecedented speed of the rally in most asset Simplified Prospectus. During the year, there were no material classes after March 2020, expected returns for 2021 are still changes to the Fund that affected the overall risk level of positive, but somewhat less attractive than they were in early the Fund. 2020. Many economies will recover to pre-COVID-19 levels of activity in 2021, although we don’t expect to reach this This Fund is suitable for investors who want to earn reasonable milestone in Canada until early 2022. We maintain our view levels of monthly income and who are seeking higher returns that the economic fallout from the pandemic is likely to while preserving the value of their capital over the medium to dissipate as aggressive policy moves continue to support long term. Investors in this Fund should have a medium-term liquidity and economic momentum. The key risk to our central investment time horizon and a low tolerance for risk in scenario remains the virus and its variants or a stall in the their returns. rollout of vaccines. Changes in fiscal or monetary policy direction and the relationship between China and the US are Results of Operations risks to monitor as well. As of December 31, 2020, the Fund's net assets increased by 8.5% to $1,112.6 million from $1,025.9 million at the end of Robust markets and record-low interest rates have moderated 2019. Net contributions and positive investment performance expected returns for various asset classes. However, greater resulted in an overall increase in net asset value. confidence in the pace of the economic recovery – combined with still attractive relative returns for equities, corporate bonds

1 HSBC Monthly Income Fund and mortgages relative to cash and government bonds – leads Purchases of Securities Underwritten by a Related Party us to favour these asset classes in the Fund. The portfolio During the year, the Fund invested in certain securities that remains well diversified across asset classes. were underwritten, in whole or in part, by entities that are a During the period there has been a change in composition to related party to us. To proceed with the transactions, the Fund the Independent Review Committee (the “IRC”). Effective relied on the approval of the Fund’s Independent Review March 25, 2020, Ms. Louise Tymocko was appointed to the IRC Committee by way of Standing Instruction. A condition of this as a member, replacing Mr. William (Bill) Bakk who left as his approval was that the transactions were performed in term of office expired. Ms. Lisa Pankratz also took over as Chair accordance with our policy on Purchases of Securities of the IRC effective March 25, 2020. In addition, effective Underwritten by a Related Party. February 18, 2021, Ms. Sharon Morrisroe was also appointed to the IRC as a member, replacing Mr. Neil de Gelder who left Financial Highlights following the expiry of his term in March of 2021. The following tables show selected key financial information about the Fund and are intended to help you understand the Related Party Transactions Fund’s financial performance for the past five years. This We, on behalf of the Fund, or the Fund Manager, may, from information is derived from the Fund’s audited annual financial time to time, enter into transactions or arrangements with or statements. The information in the following tables is based on involving other members of the HSBC Group or other people or prescribed regulations, and, as a result, is not expected to add companies related or connected to us or the Fund. To proceed down due to the increase/decrease in net assets from with the transactions, the Fund relies on the positive operations being based on average units outstanding during the recommendation of the Fund’s Independent Review Committee. A year and all other numbers being based on actual units condition of this positive recommendation is that the transactions outstanding at the relevant point in time. are performed in accordance with our policy on Related Party Transactions. For more general information on persons related to the Fund and the types of potential transactions, see the HSBC Monthly Income Fund – Investor Series – Fund’s Simplified Prospectus. Net Assets per Unit(1) Year(s) ended December 31 The following is a summary of current transactions and arrangements with entities that are related to us or the Fund. 2020 2019 2018 2017 2016 Net assets per unit, beginning of Manager, Trustee and Investment Advisor year (2) $10.61 $9.98 $10.65 $10.42 $9.71 We are the manager, trustee and primary investment advisor of Increase (decrease) from the Fund. As manager, we manage the overall business and operations: operations of the Fund. As trustee, we hold legal title to the Total revenue 0.31 0.32 0.32 0.31 0.32 Total expenses (0.15) (0.15) (0.15) (0.15) (0.14) property of the Fund on your behalf. As primary investment Realized gains (losses) 0.09 0.05 0.17 0.15 0.19 advisor, we provide investment advice and portfolio Unrealized gains (losses) 0.05 0.65 (0.76) 0.15 0.57 management services to the Fund. We receive a fee from the Total increase (decrease) from Fund for these services based on assets under management, operations (2) $0.30 $0.87 $(0.42) $0.46 $0.94 calculated daily and paid monthly. Distributions to unitholders: From net investment income Distribution Services (excluding dividends) (0.07) (0.08) (0.07) (0.08) (0.04) The Fund is distributed through us, HSBC Investment Funds From dividends (0.10) (0.11) (0.12) (0.10) (0.16) (Canada) Inc. (our wholly owned subsidiary and affiliate) and From capital gains – – (0.01) – – Return of capital (0.07) (0.05) (0.04) (0.06) (0.04) HSBC Securities (Canada) Inc. (an affiliate) directly or through its division, HSBC InvestDirect. We pay distribution and Total annual distributions (2,3) $(0.24) $(0.24) $(0.24) $(0.24) $(0.24) servicing fees to them based on the amount of assets held in Net assets per unit at December 31 of year shown (2) $10.70 $10.61 $9.98 $10.65 $10.42 the investor’s account, and additionally, in some cases, on the amount of the initial purchase. If you hold units of this Fund and/or other HSBC Mutual Funds in a registered plan with HSBC Investment Funds (Canada) Inc., they may charge you an annual 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 market value in your registered plan.

Fund on Fund Investing During the year, the Fund invested in units of other HSBC Mutual Funds, which are also managed by us.

2 HSBC Monthly Income Fund

Ratios and Supplemental Data HSBC Monthly Income Fund – Premium Series (1) 2020 2019 2018 2017 2016 – Net Assets per Unit Year(s) ended December 31 Total net asset value (in 000s) (4) $350,304 $348,342 $326,163 $368,703 $372,673 2020 2019 2018 2017 2016 Number of units Net assets per unit, beginning of outstanding (in year (2) $11.00 $10.33 $11.02 $10.77 $10.03 000s) (4) 32,749 32,821 32,683 34,635 35,774 Management Increase (decrease) from expense ratio operations: ("MER") (5) 1.46% 1.46% 1.43% 1.43% 1.43% Total revenue 0.32 0.34 0.33 0.32 0.33 MER before waivers Total expenses (0.09) (0.09) (0.09) (0.09) (0.09) or absorptions (5) 1.46% 1.46% 1.43% 1.43% 1.43% Realized gains (losses) 0.09 0.06 0.17 0.16 0.20 Trading expense Unrealized gains (losses) 0.04 0.65 (0.80) 0.15 0.60 ratio (6) 0.02% 0.02% 0.01% 0.01% 0.02% Total increase (decrease) from Portfolio turnover operations (2) $0.36 $0.96 $(0.39) $0.54 $1.04 rate (7) 38.82% 16.64% 34.21% 19.49% 25.63% Net asset value per Distributions to unitholders: unit (4) $10.70 $10.61 $9.98 $10.65 $10.42 From net investment income (excluding dividends) (0.09) (0.10) (0.08) (0.09) (0.05) From dividends (0.13) (0.14) (0.15) (0.13) (0.19) From capital gains – – (0.02) – – HSBC Monthly Income Fund – Investor T Series Return of capital (0.08) (0.06) (0.05) (0.08) (0.06) – Net Assets per Unit(1) Year(s) ended December 31 Total annual distributions (2,3) $(0.30) $(0.30) $(0.30) $(0.30) $(0.30) Net assets per unit at December 2020 2019 2018 2017 2016 31 of year shown (2) $11.09 $11.00 $10.33 $11.02 $10.77

Net assets per unit, beginning of year (2) $10.03 $10.00 $– $– $– Increase (decrease) from operations: Ratios and Supplemental Data Total revenue 0.29 0.05 – – – 2020 2019 2018 2017 2016 Total expenses (0.13) (0.02) – – – Realized gains (losses) 0.11 0.01 – – – Total net asset value Unrealized gains (losses) 0.28 0.01 – – – (in 000s) (4) $706,810 $669,916 $583,711 $625,091 $572,749 Number of units Total increase (decrease) from outstanding (in operations (2) $0.55 $0.05 $– $– $– 000s) (4) 63,715 60,906 56,485 56,748 53,171 Distributions to unitholders: Management From net investment income expense ratio (excluding dividends) (0.14) (0.02) – – – ("MER") (5) 0.91% 0.91% 0.88% 0.88% 0.88% From dividends (0.19) (0.04) – – – MER before waivers From capital gains – – – – – or absorptions (5) 0.91% 0.91% 0.88% 0.88% 0.88% Return of capital (0.12) (0.02) – – – Trading expense ratio (6) 0.02% 0.02% 0.01% 0.01% 0.02% Total annual distributions (2,3) $(0.45) $(0.08) $– $– $– Portfolio turnover Net assets per unit at December 31 of rate (7) 38.82% 16.64% 34.21% 19.49% 25.63% year shown (2) $9.88 $10.03 $– $– $– Net asset value per

unit (4) $11.09 $11.00 $10.33 $11.02 $10.77

Ratios and Supplemental Data 2020 2019 2018 2017 2016 Total net asset value (in 000s) (4) $1,796 $356 $– $– $– Number of units outstanding (in 000s) (4) 182 35 – – – Management expense ratio ("MER") (5) 1.41% 1.41% 0.00% 0.00% 0.00% MER before waivers or absorptions (5) 1.53% 1.57% 0.00% 0.00% 0.00% Trading expense ratio (6) 0.02% 0.02% 0.00% 0.00% 0.00% Portfolio turnover rate (7) 38.82% 16.64% 0.00% 0.00% 0.00% Net asset value per unit (4) $9.88 $10.03 $– $– $–

3 HSBC Monthly Income Fund

HSBC Monthly Income Fund – Premium T HSBC Monthly Income Fund – Manager Series Series – Net Assets per Unit(1) – Net Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $10.05 $10.00 $– $– $– year (2) $11.00 $10.37 $11.11 $10.90 $10.19 Increase (decrease) from operations: Increase (decrease) from Total revenue 0.29 0.05 – – – operations: Total expenses (0.08) (0.01) – – – Total revenue 0.32 0.34 0.33 0.33 0.33 Realized gains (losses) 0.11 0.01 – – – Total expenses (0.13) (0.13) (0.13) (0.12) (0.13) Unrealized gains (losses) 0.19 (0.02) – – – Realized gains (losses) 0.10 0.06 0.19 0.17 0.20 Unrealized gains (losses) 0.10 0.79 (0.55) 0.11 0.61 Total increase (decrease) from operations (2) $0.51 $0.03 $– $– $– Total increase (decrease) from operations (2) $0.39 $1.06 $(0.16) $0.49 $1.01 Distributions to unitholders: From net investment income Distributions to unitholders: (excluding dividends) (0.14) (0.02) – – – From net investment income From dividends (0.19) (0.04) – – – (excluding dividends) (0.10) (0.10) (0.08) (0.10) (0.05) From capital gains – – – – – From dividends (0.13) (0.14) (0.15) (0.13) (0.20) Return of capital (0.12) (0.02) – – – From capital gains – – (0.02) – – Return of capital (0.08) (0.07) (0.06) (0.08) (0.06) Total annual distributions (2,3) $(0.45) $(0.08) $– $– $– Total annual distributions (2,3) $(0.31) $(0.31) $(0.31) $(0.31) $(0.31) Net assets per unit at December 31 of year shown (2) $9.96 $10.05 $– $– $– Net assets per unit at December

31 of year shown (2) $11.05 $11.00 $10.37 $11.11 $10.90

Ratios and Supplemental Data 2020 2019 2018 2017 2016 Ratios and Supplemental Data 2020 2019 2018 2017 2016 Total net asset value (in 000s) (4) $52,112 $6,295 $– $– $– Number of units outstanding (in Total net asset value (in 000s) (4) 5,234 626 – – – 000s) (4) $191 $176 $154 $477 $248 Management expense ratio Number of units outstanding ("MER") (5) 0.86% 0.86% 0.00% 0.00% 0.00% (in 000s) (4) 17 16 15 43 23 MER before waivers or Management expense ratio absorptions (5) 0.91% 0.93% 0.00% 0.00% 0.00% ("MER") (5) 1.25% 1.22% 1.22% 1.17% 1.28% Trading expense ratio (6) 0.02% 0.02% 0.00% 0.00% 0.00% MER before waivers or Portfolio turnover rate (7) 38.82% 16.64% 0.00% 0.00% 0.00% absorptions (5) 1.30% 1.64% 1.22% 1.17% 1.28% Net asset value per unit (4) $9.96 $10.05 $– $– $– Trading expense ratio (6) 0.02% 0.02% 0.01% 0.01% 0.02%

Portfolio turnover rate (7) 38.82% 16.64% 34.21% 19.49% 25.63% Net asset value per unit (4) $11.05 $11.00 $10.37 $11.11 $10.90

4 HSBC Monthly Income Fund

HSBC Monthly Income Fund – Institutional payable by the Fund. The amount of expenses absorbed or waived Series – Net Assets per Unit(1) is at the discretion of and can be terminated at any time by us. Year(s) ended December 31 Please see the prospectus, Fund Facts and other disclosure documents for further details. 2020 2019 2018 2017 2016 (6) The trading expense ratio represents total commissions and other Net assets per unit, beginning of portfolio transaction costs expressed as an annualized percentage year (2) $9.19 $8.66 $9.27 $9.21 $8.60 of daily average net asset value during the year. Increase (decrease) from operations: (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Total revenue 0.27 0.28 0.30 0.27 0.28 portfolio advisor manages its portfolio investments. A portfolio Total expenses (0.02) (0.02) (0.03) (0.04) (0.02) turnover rate of 100% is equivalent to the Fund buying and selling Realized gains (losses) 0.09 0.06 0.15 0.13 0.16 all of the securities in its portfolio once in the course of the year. Unrealized gains (losses) 0.23 0.40 (0.94) 0.18 0.44 The higher the Fund’s portfolio turnover rate in a year, the greater Total increase (decrease) from the trading costs payable by the Fund in the year, and the greater operations (2) $0.57 $0.72 $(0.52) $0.54 $0.86 the chance of an investor receiving taxable capital gains in the year. Distributions to unitholders: There is not necessarily a relationship between a high turnover rate From net investment income and the performance of the Fund. The rate is calculated based on (excluding dividends) (0.10) (0.11) (0.09) (0.10) (0.05) the lesser of purchases or sales of securities divided by the average From dividends (0.14) (0.15) (0.17) (0.14) (0.22) weighted market value of the portfolio securities, excluding short- From capital gains – – (0.02) – – term securities. Return of capital (0.09) (0.07) (0.05) (0.09) (0.06) Total annual distributions (2,3) $(0.33) $(0.33) $(0.33) $(0.33) $(0.33) Management Fees For the year ended December 31, 2020, the Fund paid us Net assets per unit at December 31 of year shown (2) $9.25 $9.19 $8.66 $9.27 $9.21 management fees of $9,656,473. 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 Ratios and Supplemental Data these fees do not duplicate fees payable by mutual funds in 2020 2019 2018 2017 2016 which the Fund invests for the same service. Total net asset value (in 000s) (4) $1,390 $831 $332 $115 $491 The Fund’s management fees were used by us to pay costs for Number of units outstanding managing the investment portfolio, providing investment (in 000s) (4) 150 90 38 12 53 analysis and recommendations, making investment decisions, Management expense ratio making brokerage arrangements for the purchase and sale of ("MER") (5) 0.21% 0.31% 0.39% 0.44% 0.21% MER before waivers or the investment portfolio and providing other services. The absorptions (5) 0.21% 0.31% 0.45% 0.44% 0.21% management fees also funded commission payments and other Trading expense ratio (6) 0.02% 0.02% 0.01% 0.01% 0.02% compensation (collectively “distribution costs”) to sales Portfolio turnover rate (7) 38.82% 16.64% 34.21% 19.49% 25.63% representatives and registered dealers and brokers, including Net asset value per unit (4) $9.25 $9.19 $8.66 $9.27 $9.21 HSBC Investment Funds (Canada) Inc., for units of the Fund (1) This information is derived from the Fund’s audited annual financial bought and held by unitholders. Finally, we used management statements. All balances are stated in International Financial Reporting Standards (“IFRS”). Under IFRS, the net assets per unit fees to pay for additional marketing and distribution services to presented in the financial statements is the same as the net asset the Fund. value calculated for fund pricing purposes. For the year ended December 31, 2020, approximately 46% of (2) Net assets per unit and distributions per unit are based on the the total management fees collected from all HSBC Mutual actual number of units outstanding for the relevant series at the relevant time. The increase/decrease in net assets from operations Funds were used to fund distribution costs. In comparison, for per unit is based on the weighted average number of units the Fund, such distribution costs represented 50% of the outstanding for the relevant series over the fiscal year. management fees collected. This may vary by series depending (3) Distributions are automatically reinvested in additional units of the on the assets invested in each of the series. Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. Past Performance (4) This information is provided as at December 31 of the year shown. The performance information shown assumes that all (5) MER is based on total expenses (including a portion of the distributions made by the Fund in the years shown were operating expenses of the underlying funds in proportion to the reinvested in additional securities of the Fund. The performance Fund’s holdings in the other funds and excluding distributions, information does not take into account sales, redemption, commissions and other portfolio transaction costs) for the stated distribution, optional charges or expenses you may be charged year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one outside of the Fund or the effect of any income tax you may mutual fund to another and from one series of units to another. We have to pay as a result of your investment in the Fund that may have waived or absorbed certain fees and expenses otherwise would have reduced returns or performance. The performance

5 HSBC Monthly Income Fund of different fund series may vary for a number of reasons, Annual Returns – Institutional Series including differences in management fees and expenses. The 15% Fund’s past performance does not necessarily indicate how it 11.2% 10.0% will perform in the future. 10% 7.5% 7.4% 7.4% Year-by-Year Returns 5% 4.3% 4.5% Years ended December 31 0% The following bar charts show the Fund’s performance for each -0.2% of the years shown, and illustrate how the Fund’s performance -2.4% -5% -3.1% changed from year to year. In percentage terms, the bar charts show how much an investment made on the first day of each -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 financial year would have grown or decreased by the last day of 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 each financial year.

Annual Returns – Investor Series Annual Compound Returns Year ended December 31, 2020 15% The following tables show the Fund’s historical annual 9.9% 10% 8.8% compound total returns for the years indicated, compared with 6.0% 5.9% 6.0% the benchmark index over the same period. The benchmark is a 4.5% 5% 3.2% weighted composite consisting of the S&P/TSX Capped Composite Index (35%), HSBC Mortgage Fund Benchmark 0% (30%), FTSE Canada Short-Term Bond Index (15%), FTSE -1.6% -2.5% Canada Mid-Term Bond Index (15%) and S&P/TSX Preferred -5% -4.1% Share Index (5%). -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 The FTSE Canada Mid-Term Bond Index is a broad measure of 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 the total return for the Canadian bond market, covering marketable Canadian bonds with a term to maturity between 5 Annual Returns – Premium Series and 10 years. The FTSE Canada Short-Term Bond Index is a 15% broad measure of the total return for a segment of the 10.5% Canadian bond market, covering marketable Canadian bonds 10% 9.4% 6.6% 6.5% 6.6% with a term to maturity between one and five years. The S&P/ 5.1% 5% 3.7% TSX Preferred Share Index is designed to track the Canadian preferred share market. The S&P/TSX Capped Composite Index 0% tracks changes in the share price of the largest companies -1.0% -1.9% listed on the Toronto Stock Exchange, representing a broad -5% -3.5% range of industries. The HSBC Mortgage Fund Benchmark is a -10% blend of the FTSE Canada Residential Mortgage 1-Year Index Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (40%), FTSE Canada Residential Mortgage 3-Year Index (20%), FTSE Canada Residential Mortgage 5-Year Index (10%), FTSE Annual Returns – Manager Series Canada 91-Day T-Bill Index (10%) and FTSE Canada Short-Term

15% Bond Index (20%), discounted by an appropriate amount to reflect actual prevailing mortgage rates over the same period. 10.1% 10% 9.1% 6.5% 6.5% Investor Series 4.8% 5% 3.4% 1 Year 3 Year 5 Year 10 Year HSBC Monthly Income Fund 3.17% 2.50% 4.35% 3.52% 0% 35% S&P/TSX Capped Composite Index, -2.5% 30% HSBC Mortgage Fund Benchmark, -5% -4.0% 15% FTSE Canada Short-Term Bond -10% Index, 15% FTSE Canada Mid-Term Bond Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Index, 5% S&P/TSX Preferred Share Index 6.52% 4.68% 5.39% 4.20% 2013 2014 2015 2016 2017 2018 2019 2020

6 HSBC Monthly Income Fund

Manager Series Sector Mix Percentage Since of NAV 1 Year 3 Year 5 Year Inception HSBC Monthly Income Fund 3.37% 2.68% 4.55% 4.19% Investment Funds 31.15% 35% S&P/TSX Capped Composite Financials 22.09% Index, 30% HSBC Mortgage Fund Government Bonds 10.96% Benchmark, 15% FTSE Canada Short- Energy 8.41% Term Bond Index, 15% FTSE Canada Materials 7.48% Mid-Term Bond Index, 5% S&P/TSX Industrials 4.01% Preferred Share Index 6.52% 4.68% 5.39% 4.57% Communication Services 3.65%

Real Estate 3.10% Institutional Series Utilities 2.35% Consumer Staples 2.19% 1 Year 3 Year 5 Year 10 Year Information Technology 1.47% HSBC Monthly Income Fund 4.48% 3.67% 5.26% 4.56% Consumer Discretionary 1.41% 35% S&P/TSX Capped Composite Index, Asset Backed 0.82% 30% HSBC Mortgage Fund Benchmark, Cash & Equivalents 0.91% 15% FTSE Canada Short-Term Bond Total 100.00% Index, 15% FTSE Canada Mid-Term Bond Index, 5% S&P/TSX Preferred Share Index 6.52% 4.68% 5.39% 4.20%

Premium Series Top 25 Holdings Percentage 1 Year 3 Year 5 Year 10 Year of NAV HSBC Monthly Income Fund 3.74% 3.07% 4.92% 4.09% HSBC Mortgage Fund - Institutional Series 30.77% 35% S&P/TSX Capped Composite Index, Toronto-Dominion Bank 3.57% 30% HSBC Mortgage Fund Benchmark, Royal Bank of Canada 3.30% 15% FTSE Canada Short-Term Bond Brookfield Asset Management Inc. 2.37% Index, 15% FTSE Canada Mid-Term Bond Enbridge Inc. 2.06% Index, 5% S&P/TSX Preferred Share Index 6.52% 4.68% 5.39% 4.20% Canadian National Railway Co. 1.63% (1) Due to the fact that several benchmark indices are only available on Bank of Nova Scotia 1.59% a monthly basis, the performance data for the HSBC Funds and the Manulife Financial Corp. 1.31% benchmark indices are calculated using values from the first month- Canadian Pacific Railway Ltd. 1.30% end date each Fund was in operation. Canada Housing Trust No. 1, 1.75%, 06/15/2030 1.24% (2) For investment commentary and relative performance of the Fund Nutrien Ltd. 1.23% compared to its benchmark, please refer to the Results of Operations Alimentation Couche-Tard Inc., Class B 1.22% section of this report. TC Energy Corp. 1.14% Summary of Investment Portfolio Canada Housing Trust No. 1, 2.35%, 06/15/2027 1.12% Canada Housing Trust No. 1, 0.95%, 06/15/2025 1.07% As at December 31, 2020 Wheaton Precious Metals Corp. 1.05% Cenovus Energy Inc. 1.03% Asset Mix Barrick Gold Corp. 1.01% Canada Housing Trust No. 1, 2.10%, 09/15/2029 0.97% Percentage Shaw Communications Inc. 0.97% of NAV Royal Bank of Canada, 0.20%, 01/04/2021 0.90% Canadian Equities 40.95% Methanex Corp. 0.88% Investment Funds 31.15% Canadian Imperial Bank of Commerce 0.85% Corporate Bonds 16.03% Dollarama Inc. 0.81% Government Bonds 10.96% TransAlta Corp. 0.78% Cash & Equivalents 0.91% Total of Top 25 Holdings 64.17% Total 100.00%

7 HSBC Monthly Income Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC U.S. Dollar Monthly Income Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC U.S. Dollar Monthly Income Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the This Fund is suitable for investors who have U.S. dollars to Fund; we, us and our refer to HSBC Global Asset Management invest and want to earn reasonably consistent levels of monthly (Canada) Limited; and the Fund refers to the HSBC U.S. Dollar income and who are seeking to preserve the value of their Monthly Income Fund. capital over the medium to long term with some potential for growth. Investors in this Fund should have a medium-term We are the manager, trustee and primary investment advisor of investment time horizon and a low to medium tolerance for risk the Fund. We have entered into a sub-advisory agreement with in their returns. HSBC Global Asset Management (USA) Inc. and Federated Investment Counseling Inc., under which HSBC Global Asset Results of Operations Management (USA) Inc. and Federated Investment As of December 31, 2020, the Fund's net assets decreased by Counseling Inc. provide investment advice and portfolio 2.6% to $803.2 million from $824.5 million at the end of 2019. management services to the Fund. For an explanation of the Net withdrawals, partially offset by positive investment relationship between us and the sub-advisors, see the section performance, resulted in an overall decrease in net asset value. Selection of Sub-Advisors in the Fund’s Simplified Prospectus. Investment Performance Introduction The HSBC U.S. Dollar Monthly Income Fund (Investor This Annual Management Report of Fund Performance contains Series) rose 0.85% for the 12 months ending December 31, financial highlights but does not contain the complete annual 2020, while its benchmark rose 4.07% over the same period. financial statements of the Fund. You may obtain a copy of the The benchmark is a weighted composite consisting of the ICE annual financial statements at your request, at no cost, by Bank of America US Corporate Single A-Rated 1-10 Year Index calling us toll-free at 1-888-390-3333, by visiting our website at (US$) (70%) and Dow Jones US Select Dividend Net Index www.assetmanagement.hsbc.ca, by visiting the SEDAR (US$) (30%). The Fund’s returns are after the deduction of fees website at www.sedar.com or by writing to us at: and expenses, while the benchmark’s returns do not include any costs of investing. See the Past Performance section for the HSBC Global Asset Management (Canada) Limited returns of other series of the Fund, which may vary due to 3rd Floor, 885 West Georgia Street differences in management fees and expenses. Vancouver, BC V6C 3E8 Markets began 2020 with a continuation of the 2019 year-end You may also contact us using one of these methods to request a rally and then turned volatile starting in late February as copy of the Fund’s interim financial report, proxy voting policies investors reacted to the coronavirus and its impact on the and procedures, proxy voting disclosure record or quarterly global economy. They recovered over the next two quarters and portfolio disclosure. market sentiment remained positive in the fourth quarter as better than expected corporate earnings, strong economic data, Investment Objective and Strategies the conclusion to the US presidential election and positive The fundamental investment objective of this Fund is to provide COVID-19 vaccine news prevailed in the minds of investors. a reasonably consistent level of monthly income while aiming to preserve capital over the medium to long term. Within equities, the year was dominated by a tech-led market rally, and technology stocks were the clear winners for the year. To achieve its objectives, the Fund invests primarily in The Fund’s performance benefited from holdings in industrials government and corporate bonds, mortgages, high-dividend and health care, while high yield and low beta underperformed, paying common and preferred shares, income trust units and which created a performance headwind for this strategy. other high-yielding securities denominated in US dollars. When Holdings in the energy sector and REITs were the largest investing in fixed income securities, the Fund will invest detractors from performance. primarily in investment-grade securities, and when investing in In the fixed income portion of the Fund, performance was common shares the Fund will invest primarily in high quality, driven mainly by being underweight in duration relative to the stable companies with the ability to grow dividends or benchmark, as rates fell considerably over the period. Issue distributable income over time and whose securities generally selection was also marginally negative, with positive effects have a higher yield than the overall market. from positioning in the capital goods and automotive sectors outweighed by the negative effects of positioning in financials Risk and real estate. The risks of investing in the Fund remain as discussed in the Simplified Prospectus. During the year, there were no material Recent Developments changes to the Fund that affected the overall risk level of The equity portion of the portfolio remains concentrated in the Fund. consumer staples, pharmaceuticals, telecommunication services and utilities. These segments contain the dividend

1 HSBC U.S. Dollar Monthly Income Fund friendly stocks that the portfolio seeks, enabling the strategy to fee based on assets under management, calculated daily and provide investors with a high dividend yield complemented with paid quarterly. For more information on our ability to hire sub- dividend growth. That dividend growth can help the portfolio advisors, see the section Organization and Management of the both sustain its high yield and outpace inflation. The portfolio HSBC Mutual Funds in the Fund’s Simplified Prospectus. management team is committed to the Fund’s objectives of providing a high and rising income stream from high-quality Distribution Services The Fund is distributed through us, HSBC Investment Funds business assets and will not alter the Fund’s investment style (Canada) Inc. (our wholly owned subsidiary and affiliate) and based on near-term market preferences. HSBC Securities (Canada) Inc. (an affiliate) directly or through Within fixed income, the portfolio’s average credit rating is in its division, HSBC InvestDirect. We pay distribution and line with the benchmark and remains overweight in AA and servicing fees to them based on the amount of assets held in BBB credits and underweight in As. From an industry the investor’s account, and additionally, in some cases, on the perspective, the portfolio remains overweight to financials and amount of the initial purchase. If you hold units of this Fund underweight to industrials and utilities. The duration of the and/or other HSBC Mutual Funds in a registered plan with portfolio is underweight the benchmark, reflecting the upward HSBC Investment Funds (Canada) Inc., they may charge you an pressure on longer-dated yields. annual fee to cover the annual administration costs of the plan. We permit HSBC Investment Funds (Canada) Inc. to collect During the period there has been a change in composition to these fees by redeeming sufficient units of the Fund with the the Independent Review Committee (the “IRC”). Effective highest market value in your registered plan. March 25, 2020, Ms. Louise Tymocko was appointed to the IRC as a member, replacing Mr. William (Bill) Bakk who left as his Purchases of Securities Underwritten by a Related Party term of office expired. Ms. Lisa Pankratz also took over as Chair During the year, the Fund invested in certain securities that of the IRC effective March 25, 2020. In addition, effective were underwritten, in whole or in part, by entities that are a February 18, 2021, Ms. Sharon Morrisroe was also appointed to related party to us. To proceed with the transactions, the Fund the IRC as a member, replacing Mr. Neil de Gelder who left relied on the approval of the Fund’s Independent Review following the expiry of his term in March of 2021. Committee by way of Standing Instruction. A condition of this approval was that the transactions were performed in Related Party Transactions accordance with our policy on Purchases of Securities We, on behalf of the Fund, or the Fund Manager, may, from Underwritten by a Related Party. time to time, enter into transactions or arrangements with or involving other members of the HSBC Group or other people or Financial Highlights companies related or connected to us or the Fund. To proceed The following tables show selected key financial information with the transactions, the Fund relies on the positive about the Fund and are intended to help you understand the recommendation of the Fund’s Independent Review Committee. A Fund’s financial performance for the past five years. This condition of this positive recommendation is that the transactions information is derived from the Fund’s audited annual financial are performed in accordance with our policy on Related Party statements. The information in the following tables is based on Transactions. For more general information on persons related prescribed regulations, and, as a result, is not expected to add to the Fund and the types of potential transactions, see the down due to the increase/decrease in net assets from Fund’s Simplified Prospectus. operations being based on average units outstanding during the year and all other numbers being based on actual units The following is a summary of current transactions and outstanding at the relevant point in time. arrangements with entities that are related to us or the Fund.

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 property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Fund for these services based on assets under management, calculated daily and paid monthly. We have entered into a sub-advisory agreement with HSBC Global Asset Management (USA) Inc. (an affiliate), under which HSBC Global Asset Management (USA) Inc. provides investment advice and portfolio management services to the Fund. We pay HSBC Global Asset Management (USA) Inc. a

2 HSBC U.S. Dollar Monthly Income Fund

All figures are stated in US dollars. HSBC U.S. Dollar Monthly Income Fund – Investor T Series – Net Assets per Unit(1) HSBC U.S. Dollar Monthly Income Fund – Year(s) ended December 31 Investor Series – Net Assets per Unit(1) 2020 2019 2018 2017 2016 Year(s) ended December 31 Net assets per unit, beginning of year (2) $9.78 $10.00 $– $– $– 2020 2019 2018 2017 2016 Increase (decrease) from operations: Net assets per unit, beginning of Total revenue 0.32 0.04 – – – year (2) $10.68 $10.08 $10.95 $10.89 $11.09 Total expenses (0.17) (0.02) – – – Increase (decrease) from Realized gains (losses) (0.12) 0.03 – – – operations: Unrealized gains (losses) 0.11 0.06 – – – Total revenue 0.36 0.39 0.38 0.37 0.35 Total increase (decrease) from Total expenses (0.18) (0.19) (0.18) (0.19) (0.20) operations (2) $0.14 $0.11 $– $– $– Realized gains (losses) (0.18) 0.17 0.12 0.28 0.28 Unrealized gains (losses) 0.05 0.74 (0.79) 0.16 0.06 Distributions to unitholders: From net investment income (excluding Total increase (decrease) from dividends) (0.24) (0.04) – – – operations (2) $0.05 $1.11 $(0.47) $0.62 $0.49 From dividends (0.17) (0.03) – – – Distributions to unitholders: From capital gains (0.03) (0.27) – – – From net investment income Return of capital – – – – – (excluding dividends) (0.11) (0.12) (0.12) (0.10) (0.09) Total annual distributions (2,3) $(0.44) $(0.34) $– $– $– From dividends (0.07) (0.09) (0.08) (0.08) (0.07) From capital gains (0.03) (0.29) (0.20) (0.36) (0.51) Net assets per unit at December 31 of Return of capital – – – – (0.01) year shown (2) $9.40 $9.78 $– $– $–

Total annual distributions (2,3) $(0.21) $(0.50) $(0.40) $(0.54) $(0.68) Net assets per unit at December Ratios and Supplemental Data 31 of year shown (2) $10.56 $10.68 $10.08 $10.95 $10.89 2020 2019 2018 2017 2016 Total net asset value (in 000s) (4) $248 $179 $– $– $– Ratios and Supplemental Data Number of units outstanding (in 000s) (4) 26 18 – – – 2020 2019 2018 2017 2016 Management expense ratio Total net asset value ("MER") (5) 1.71% 1.70% 0.00% 0.00% 0.00% (in 000s) (4) $151,922 $165,487 $156,472 $179,931 $183,231 MER before waivers or Number of units absorptions (5) 2.19% 1.86% 0.00% 0.00% 0.00% outstanding (in Trading expense ratio (6) 0.03% 0.03% 0.00% 0.00% 0.00% 000s) (4) 14,390 15,490 15,527 16,431 16,826 Portfolio turnover rate (7) 49.50% 57.81% 0.00% 0.00% 0.00% Management Net asset value per unit (4) $9.40 $9.78 $– $– $– expense ratio ("MER") (5) 1.76% 1.75% 1.73% 1.73% 1.72% MER before waivers or absorptions (5) 1.76% 1.75% 1.73% 1.73% 1.72% Trading expense ratio (6) 0.03% 0.03% 0.01% 0.02% 0.03% Portfolio turnover rate (7) 49.50% 57.81% 57.60% 63.98% 45.54% Net asset value per unit (4) $10.56 $10.68 $10.08 $10.95 $10.89

3 HSBC U.S. Dollar Monthly Income Fund

HSBC U.S. Dollar Monthly Income Fund – HSBC U.S. Dollar Monthly Income Fund – Premium Series – Net Assets per Unit(1) Premium T Series – Net Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $10.73 $10.12 $10.99 $10.92 $11.12 year (2) $9.80 $10.00 $– $– $– Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.32 0.05 – – – Total revenue 0.36 0.39 0.38 0.37 0.35 Total expenses (0.13) (0.02) – – – Total expenses (0.15) (0.15) (0.15) (0.16) (0.16) Realized gains (losses) (0.15) 0.03 – – – Realized gains (losses) (0.18) 0.17 0.12 0.28 0.29 Unrealized gains (losses) 0.10 0.09 – – – Unrealized gains (losses) 0.01 0.74 (0.80) 0.16 0.04 Total increase (decrease) from Total increase (decrease) from operations (2) $0.14 $0.15 $– $– $– operations (2) $0.04 $1.15 $(0.45) $0.65 $0.52 Distributions to unitholders: Distributions to unitholders: From net investment income (excluding From net investment income dividends) (0.24) (0.04) – – – (excluding dividends) (0.12) (0.15) (0.14) (0.12) (0.11) From dividends (0.17) (0.03) – – – From dividends (0.09) (0.10) (0.09) (0.09) (0.08) From capital gains (0.03) (0.27) – – – From capital gains (0.03) (0.30) (0.20) (0.37) (0.51) Return of capital – – – – – Return of capital – – – – (0.01) Total annual distributions (2,3) $(0.44) $(0.34) $– $– $– Total annual distributions (2,3) $(0.24) $(0.55) $(0.43) $(0.58) $(0.71) Net assets per unit at December 31 of Net assets per unit at December year shown (2) $9.46 $9.80 $– $– $–

31 of year shown (2) $10.60 $10.73 $10.12 $10.99 $10.92

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in 000s) (4) $12,001 $308 $– $– $– Total net asset value Number of units outstanding (in (in 000s) (4) $626,539 $647,234 $620,789 $758,240 $749,694 000s) (4) 1,269 31 – – – Number of units Management expense ratio outstanding (in ("MER") (5) 1.38% 1.36% 0.00% 0.00% 0.00% 000s) (4) 59,082 60,327 61,356 68,985 68,629 MER before waivers or Management absorptions (5) 1.41% 1.49% 0.00% 0.00% 0.00% expense ratio Trading expense ratio (6) 0.03% 0.03% 0.00% 0.00% 0.00% ("MER") (5) 1.43% 1.41% 1.39% 1.39% 1.39% Portfolio turnover rate (7) 49.50% 57.81% 0.00% 0.00% 0.00% MER before waivers Net asset value per unit (4) $9.46 $9.80 $– $– $– or absorptions (5) 1.43% 1.41% 1.39% 1.39% 1.39% Trading expense ratio (6) 0.03% 0.03% 0.01% 0.02% 0.03% Portfolio turnover rate (7) 49.50% 57.81% 57.60% 63.98% 45.54% Net asset value per unit (4) $10.60 $10.73 $10.12 $10.99 $10.92

4 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) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $9.90 $9.35 $10.29 $10.24 $10.48 year (2) $11.00 $10.36 $11.23 $11.15 $11.32 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.33 0.36 0.31 0.33 0.33 Total revenue 0.37 0.40 0.39 0.38 0.36 Total expenses (0.13) (0.13) (0.18) (0.14) (0.19) Total expenses (0.01) (0.01) – (0.01) (0.01) Realized gains (losses) (0.17) 0.23 0.11 0.22 0.20 Realized gains (losses) (0.17) 0.17 0.12 0.19 0.28 Unrealized gains (losses) 0.08 0.43 (1.54) 0.09 0.57 Unrealized gains (losses) 0.36 0.75 (0.82) 0.51 0.26 Total increase (decrease) from Total increase (decrease) from operations (2) $0.11 $0.89 $(1.30) $0.50 $0.91 operations (2) $0.55 $1.31 $(0.31) $1.07 $0.89 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) (0.13) (0.15) (0.14) (0.12) (0.11) (excluding dividends) (0.20) (0.22) (0.21) (0.19) (0.18) From dividends (0.09) (0.10) (0.10) (0.10) (0.09) From dividends (0.14) (0.15) (0.15) (0.15) (0.14) From capital gains (0.04) (0.28) (0.19) (0.34) (0.48) From capital gains (0.04) (0.31) (0.21) (0.39) (0.53) Return of capital – – – – (0.01) Return of capital – – – – (0.01) Total annual distributions (2,3) $(0.26) $(0.53) $(0.43) $(0.56) $(0.69) Total annual distributions (2,3) $(0.38) $(0.68) $(0.57) $(0.73) $(0.86) Net assets per unit at December 31 Net assets per unit at December of year shown (2) $9.75 $9.90 $9.35 $10.29 $10.24 31 of year shown (2) $10.88 $11.00 $10.36 $11.23 $11.15

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net asset value (in 000s) (4) $105 $96 $31 $755 $104 000s) (4) $12,384 $11,153 $9,815 $11,399 $1,827 Number of units outstanding Number of units (in 000s) (4) 11 10 3 73 10 outstanding (in 000s) (4) 1,138 1,014 948 1,015 164 Management expense ratio Management expense ratio ("MER") (5) 1.40% 1.33% 1.74% 1.33% 1.76% ("MER") (5) 0.08% 0.07% 0.04% 0.07% 0.05% MER before waivers or MER before waivers or absorptions (5) 1.56% 2.17% 1.84% 1.40% 2.73% absorptions (5) 0.08% 0.07% 0.04% 0.07% 0.05% Trading expense ratio (6) 0.03% 0.03% 0.01% 0.02% 0.03% Trading expense ratio (6) 0.03% 0.03% 0.01% 0.02% 0.03% Portfolio turnover rate (7) 49.50% 57.81% 57.60% 63.98% 45.54% Portfolio turnover rate (7) 49.50% 57.81% 57.60% 63.98% 45.54% Net asset value per unit (4) $9.75 $9.90 $9.35 $10.29 $10.24 Net asset value per unit (4) $10.88 $11.00 $10.36 $11.23 $11.15

(1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial Reporting Standards (“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 time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. (3) Distributions are automatically reinvested in additional units of the Fund; cash distributions are not available. (4) This information is provided as at December 31 of the year shown. (5) MER is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one mutual fund to another and from one series of units to another. We

5 HSBC U.S. Dollar Monthly Income Fund

have waived or absorbed certain fees and expenses otherwise Year-by-Year Returns payable by the Fund. The amount of expenses absorbed or waived Years ended December 31 is at the discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for each (6) The trading expense ratio represents total commissions and other of the years shown, and illustrate how the Fund’s performance portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the year. changed from year to year. In percentage terms, the bar charts show how much an investment made on the first 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 year would have grown or decreased by the last day of turnover rate of 100% is equivalent to the Fund buying and selling each financial year. all of the securities in its portfolio once in the course of the year. The higher the Fund’s portfolio turnover rate in a year, the greater Annual Returns – Investor Series the trading costs payable by the Fund in the year, and the greater 20% the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate 15% and the performance of the Fund. The rate is calculated based on 11.1% the lesser of purchases or sales of securities divided by the average 10% 6.8% weighted market value of the portfolio securities, excluding short- 5.6% 5.4% 5.0% 4.3% term securities. 5% 0.3% 0.9% Management Fees 0% -5% For the year ended December 31, 2020, the Fund paid us -4.4% management fees of $10,286,430. The management fee for -10% each series is calculated as a percentage of the daily net asset Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 value for that series. The fees are reduced, where required, so 2012 2013 2014 2015 2016 2017 2018 2019 2020 that these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Annual Returns – Premium Series

20% The Fund’s management fees were used by us to pay costs for managing the investment portfolio, providing investment 15% 11.4% analysis and recommendations, making investment decisions, 10% 7.2% 6.0% making brokerage arrangements for the purchase and sale of 5.7% 5.4% 4.7% the investment portfolio and providing other services. The 5% 0.7% 1.2% management fees also funded commission payments and other 0% compensation (collectively “distribution costs”) to sales representatives and registered dealers and brokers, including -5% -4.0% HSBC Investment Funds (Canada) Inc., for units of the Fund -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 bought and held by unitholders. Finally, we used management 2012 2013 2014 2015 2016 2017 2018 2019 2020 fees to pay for additional marketing and distribution services to the Fund. Annual Returns – Manager Series

For the year ended December 31, 2020, approximately 46% of 20% the total management fees collected from all HSBC Mutual 15% Funds were used to fund distribution costs. In comparison, for 11.5% the Fund, such distribution costs represented 40% of the 10% management fees collected. This may vary by series depending 5.9% 5.5% 6.0% 5% 4.3% on the assets invested in each of the series. 0.1% 1.2% 0% Past Performance -5% The performance information shown assumes that all -5.1% distributions made by the Fund in the years shown were -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 reinvested in additional securities of the Fund. The performance 2013 2014 2015 2016 2017 2018 2019 2020 information does not take into account sales, 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 performance of different fund series may vary for a number of reasons, including differences in management fees and expenses. The Fund’s past performance does not necessarily indicate how it will perform in the future.

6 HSBC U.S. Dollar Monthly Income Fund

Annual Returns – Institutional Series Premium Series

20% Since 1 Year 3 Year 5 Year Inception 15% 13.0% HSBC U.S. Dollar Monthly 8.7% 10% 7.3% Income Fund 1.19% 2.67% 3.73% 4.39% 7.2% 6.8% 6.1% 70% ICE BofA US Corp Single A-Rated 5% 2.6% 2.0% 1-10 Yr Index (US$), 30% Dow Jones 0% US Select Dividend Net Index (US$) 4.07% 4.90% 5.88% 6.05% (1) Due to the fact that several benchmark indices are only available on -5% -2.7% a monthly basis, the performance data for the HSBC Funds and the -10% benchmark indices are calculated using values from the first month- Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 end date each Fund was in operation. 2012 2013 2014 2015 2016 2017 2018 2019 2020 (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations Annual Compound Returns section of this report. Year ended December 31, 2020 The following tables show the Fund’s historical annual Summary of Investment Portfolio As at December 31, 2020 compound total returns for the years indicated, compared with the benchmark indices, the ICE Bank of America US Corporate Single A-Rated 1-10 Year Index (in US dollars) (70%) and Dow Asset Mix Jones US Select Dividend Net Index (in US dollars) (30%), over Percentage the same period. of NAV The ICE Bank of America US Corporate Single A-Rated 1-10 Corporate Bonds 67.44% Year Index (in US dollars) tracks the performance of US-dollar U.S. Equities 23.30% denominated investment-grade corporate debt publicly issued International Equities 7.05% Government Bonds 1.21% in the US domestic market, with a remaining term to final Investment Funds 0.19% maturity of less than 10 years and rated A1 through A3, Cash & Equivalents 0.81% inclusive. The Dow Jones US Select Dividend Index (in US Total 100.00% dollars) measures the performance of a select group of equity securities issued by companies that have provided relatively high dividend yields on a consistent basis over time. Sector Mix Percentage Investor Series of NAV

Since Financials 42.01% 1 Year 3 Year 5 Year Inception Communication Services 9.05% HSBC U.S. Dollar Monthly Energy 8.72% Income Fund 0.85% 2.32% 3.38% 4.03% Health Care 8.11% Consumer Staples 7.08% 70% ICE BofA US Corp Single A-Rated Utilities 6.32% 1-10 Yr Index (US$), 30% Dow Jones Information Technology 4.57% US Select Dividend Net Index (US$) 4.07% 4.90% 5.88% 6.05% Industrials 4.42% Manager Series Real Estate 4.03% Consumer Discretionary 3.20% Since Government Bonds 1.21% 1 Year 3 Year 5 Year Inception Materials 0.28% HSBC U.S. Dollar Monthly Investment Funds 0.19% Income Fund 1.21% 2.34% 3.45% 3.87% Cash & Equivalents 0.81% 70% ICE BofA US Corp Single A-Rated Total 100.00% 1-10 Yr Index (US$), 30% Dow Jones US Select Dividend Net Index (US$) 4.07% 4.90% 5.88% 5.75%

Institutional Series

Since 1 Year 3 Year 5 Year Inception HSBC U.S. Dollar Monthly Income Fund 2.57% 4.07% 5.12% 5.74% 70% ICE BofA US Corp Single A-Rated 1-10 Yr Index (US$), 30% Dow Jones US Select Dividend Net Index (US$) 4.07% 4.90% 5.88% 5.98%

7 HSBC U.S. Dollar Monthly Income Fund

Geographic Mix Percentage of NAV

United States 73.00% United Kingdom 7.00% Canada 6.64% France 4.81% Netherlands 2.35% Australia 1.10% Cayman Islands 0.93% British Virgin Islands 0.80% Spain 0.63% Switzerland 0.47% Mexico 0.46% Saudi Arabia 0.42% Italy 0.35% Ireland 0.04% Investment Funds 0.19% Cash & Equivalents 0.81% Total 100.00%

Top 25 Holdings Percentage of NAV

Philip Morris International Inc. 1.46% AbbVie Inc. 1.43% Bank of America Corp., 3.46%, 03/15/2025 1.40% Verizon Communications Inc. 1.31% AT&T Inc. 1.27% Pfizer Inc. 1.26% Vodafone Group PLC 1.22% Chevron Corp. 1.18% Gilead Sciences Inc. 1.11% The Southern Co. 1.10% Bank of Montreal, 3.30%, 02/05/2024 1.07% British American Tobacco PLC 1.05% Comcast Corp., 1.50%, 02/15/2031 1.04% Wells Fargo & Co., 2.16%, 02/11/2026 1.04% Canadian Imperial Bank of Commerce 1.03% Merck & Co., Inc. 0.99% BCE Inc. 0.97% Bank of America Corp., 3.71%, 04/24/2028 0.92% Duke Energy Corp. 0.91% United Parcel Service Inc., Class B 0.91% Exxon Mobil Corp. 0.90% Enbridge Inc. 0.86% Macquarie Group Ltd., 3.19%, 11/28/2023 0.84% JPMorgan Chase & Co., 3.63%, 05/13/2024 0.83% Unilever PLC 0.83% Total of Top 25 Holdings 26.93%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

8 HSBC U.S. Dollar Monthly Income Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC Canadian Balanced Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Canadian Balanced Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Investment Performance Fund; we, us and our refer to HSBC Global Asset Management The HSBC Canadian Balanced Fund (Investor Series) rose (Canada) Limited; and the Fund refers to the HSBC Canadian 3.73% for the 12 months ending December 31, 2020, while the Balanced Fund. benchmark rose 9.05% over the same period. The benchmark is a weighted composite consisting of the FTSE Canada Universe We are the manager, trustee and primary investment advisor of Bond Index (35%), S&P/TSX Capped Composite Index (35%), the Fund. MSCI World Net Index (C$) (25%) and FTSE Canada 91 Day Introduction T-Bill Index (5%). The Fund’s returns are after the deduction of This Annual Management Report of Fund Performance contains fees and expenses, while the benchmark’s returns do not financial highlights but does not contain the complete annual include any costs of investing. See the Past Performance financial statements of the Fund. You may obtain a copy of the section for the returns of other series of the Fund, which may annual financial statements at your request, at no cost, by vary due to differences in management fees and expenses. calling us toll-free at 1-888-390-3333, by visiting our website at Financial markets unravelled over the latter half of the first www.assetmanagement.hsbc.ca, by visiting the SEDAR quarter as health officials around the world recommended website at www.sedar.com or by writing to us at: social distancing and quarantining of non-essential workers to HSBC Global Asset Management (Canada) Limited stop the spread of COVID-19. This caused a brief but acute 3rd Floor, 885 West Georgia Street liquidity crisis, driving indiscriminate selling of financial assets Vancouver, BC V6C 3E8 worldwide. After the first quarter, risk sentiment shifted quickly as governments enacted massive fiscal and monetary stimulus You may also contact us using one of these methods to request a that drove a sustained recovery in financial markets over the copy of the Fund’s interim financial report, proxy voting policies remainder of 2020. and procedures, proxy voting disclosure record or quarterly portfolio disclosure. Markets finished the year with impressive gains. The improving economy, as well as expectations for a similar sharp rebound in Investment Objective and Strategies corporate profits in 2021, supported forward-looking investor The fundamental investment objective of this Fund is to provide sentiment, as did US election results and, most importantly, the a balance between income and long-term capital growth. announcement that three vaccines for COVID-19 had test results with extremely high efficacy. To achieve its objectives, the Fund invests primarily in Canadian equities, bonds, mortgage-backed securities and money market Although the Fund generated a positive return in a volatile year, securities. A portion of the Fund may also be invested in non- it underperformed its benchmark. Security selection within the Canadian equities and fixed income securities of issuers. When fixed income portion of the Fund added value, but this was investing in fixed income securities, the Fund will invest more than offset by the negative impacts of security selection primarily in investment-grade securities, and when investing in in the Fund’s equity segments. Canadian equities the Fund will invest primarily in companies listed on the Toronto Stock Exchange. Recent Developments Because of the unprecedented speed of the rally in most asset Risk classes after March 2020, expected returns for 2021 are still The risks of investing in the Fund remain as discussed in the positive, but somewhat less attractive than they were in early Simplified Prospectus. During the year, there were no material 2020. Many economies will recover to pre-COVID-19 levels of changes to the Fund that affected the overall risk level of activity in 2021, although we don’t expect to reach this the Fund. milestone in Canada until early 2022. We maintain our view that the economic fallout from the pandemic is likely to This Fund is suitable for investors who want to earn income and dissipate as aggressive policy moves continue to support grow their capital, have a medium-term investment time liquidity and economic momentum. The key risk to our central horizon and have a low to medium tolerance for risk in scenario remains the virus and its variants or a stall in the their returns. rollout of vaccines. Changes in fiscal or monetary policy direction and the relationship between China and the US are Results of Operations risks to monitor as well. As of December 31, 2020, the Fund's net assets increased by 1.1% to $604.8 million from $598.3 million at the end of 2019. Robust markets and record-low interest rates have moderated Positive investment performance, partially offset by net expected returns for various asset classes. However, greater withdrawals, resulted in an overall increase in net asset value. confidence in the pace of the economic recovery – combined with still attractive relative returns for equities, corporate bonds

1 HSBC Canadian Balanced Fund and mortgages relative to cash and government bonds – leads Purchases of Securities Underwritten by a Related Party us to favour these asset classes in the Fund. The portfolio During the year, the Fund invested in certain securities that remains well diversified across asset classes and geographies. were underwritten, in whole or in part, by entities that are a During the period there has been a change in composition to related party to us. To proceed with the transactions, the Fund the Independent Review Committee (the “IRC”). Effective relied on the approval of the Fund’s Independent Review March 25, 2020, Ms. Louise Tymocko was appointed to the IRC Committee by way of Standing Instruction. A condition of this as a member, replacing Mr. William (Bill) Bakk who left as his approval was that the transactions were performed in term of office expired. Ms. Lisa Pankratz also took over as Chair accordance with our policy on Purchases of Securities of the IRC effective March 25, 2020. In addition, effective Underwritten by a Related Party. February 18, 2021, Ms. Sharon Morrisroe was also appointed to the IRC as a member, replacing Mr. Neil de Gelder who left Financial Highlights following the expiry of his term in March of 2021. The following tables show selected key financial information about the Fund and are intended to help you understand the Related Party Transactions Fund’s financial performance for the past five years. This We, on behalf of the Fund, or the Fund Manager, may, from information is derived from the Fund’s audited annual financial time to time, enter into transactions or arrangements with or statements. The information in the following tables is based on involving other members of the HSBC Group or other people or prescribed regulations, and, as a result, is not expected to add companies related or connected to us or the Fund. To proceed down due to the increase/decrease in net assets from with the transactions, the Fund relies on the positive operations being based on average units outstanding during the recommendation of the Fund’s Independent Review Committee. A year and all other numbers being based on actual units condition of this positive recommendation is that the transactions outstanding at the relevant point in time. are performed in accordance with our policy on Related Party Transactions. For more general information on persons related to the Fund and the types of potential transactions, see the HSBC Canadian Balanced Fund – Investor Fund’s Simplified Prospectus. Series – Net Assets per Unit(1) Year(s) ended December 31 The following is a summary of current transactions and arrangements with entities that are related to us or the Fund. 2020 2019 2018 2017 2016 Net assets per unit, beginning of Manager, Trustee and Investment Advisor year (2) $30.62 $27.46 $29.77 $28.05 $26.14 We are the manager, trustee and primary investment advisor of Increase (decrease) from the Fund. As manager, we manage the overall business and operations: operations of the Fund. As trustee, we hold legal title to the Total revenue 0.81 0.98 1.11 0.89 0.75 Total expenses (0.58) (0.58) (0.57) (0.56) (0.52) property of the Fund on your behalf. As primary investment Realized gains (losses) 1.03 0.45 0.66 1.05 0.86 advisor, we provide investment advice and portfolio Unrealized gains (losses) (0.26) 2.63 (2.86) 0.58 1.17 management services to the Fund. We receive a fee from the Total increase (decrease) from Fund for these services based on assets under management, operations (2) $1.00 $3.48 $(1.66) $1.96 $2.26 calculated daily and paid monthly. Distributions to unitholders: From net investment income Distribution Services (excluding dividends) (0.03) (0.07) (0.07) (0.07) (0.06) The Fund is distributed through us, HSBC Investment Funds From dividends (0.23) (0.22) (0.19) (0.18) (0.19) (Canada) Inc. (our wholly owned subsidiary and affiliate) and From capital gains (0.39) – (0.34) – (0.17) Return of capital – – – – – HSBC Securities (Canada) Inc. (an affiliate) directly or through its division, HSBC InvestDirect. We pay distribution and Total annual distributions (2,3) $(0.65) $(0.29) $(0.60) $(0.25) $(0.42) servicing fees to them based on the amount of assets held in Net assets per unit at December 31 of year shown (2) $31.10 $30.62 $27.46 $29.77 $28.05 the investor’s account, and additionally, in some cases, on the amount of the initial purchase. If you hold units of this Fund and/or other HSBC Mutual Funds in a registered plan with HSBC Investment Funds (Canada) Inc., they may charge you an annual 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 market value in your registered plan.

Fund on Fund Investing During the year, the Fund invested in units of other HSBC Mutual Funds, which are also managed by us.

2 HSBC Canadian Balanced Fund

Ratios and Supplemental Data 2020 2019 2018 2017 2016 HSBC Canadian Balanced Fund – Manager Total net asset value Series – Net Assets per Unit(1) (in 000s) (4) $337,987 $357,361 $339,139 $381,244 $375,211 Year(s) ended December 31 Number of units outstanding (in 2020 2019 2018 2017 2016 000s) (4) 10,869 11,672 12,349 12,807 13,379 Net assets per unit, beginning of Management year (2) $11.67 $10.52 $11.40 $10.73 $10.00 expense ratio Increase (decrease) from ("MER") (5) 2.00% 2.00% 1.97% 1.98% 1.96% MER before waivers operations: Total revenue 0.31 0.40 0.41 0.39 or absorptions (5) 2.00% 2.00% 1.97% 1.98% 1.96% 0.31 Total expenses (0.12) (0.15) (0.10) (0.10) Trading expense (0.09) Realized gains (losses) 0.39 0.19 0.26 0.30 0.32 ratio (6) 0.02% 0.02% 0.02% 0.02% 0.04% Unrealized gains (losses) (0.13) 1.01 (1.05) 0.26 0.56 Portfolio turnover rate (7) 38.89% 25.22% 23.97% 19.95% 23.99% Total increase (decrease) from Net asset value per operations (2) $0.45 $1.45 $(0.48) $0.85 $1.10 unit (4) $31.10 $30.62 $27.46 $29.77 $28.04 Distributions to unitholders: From net investment income (excluding dividends) (0.01) (0.05) (0.06) (0.04) (0.03) HSBC Canadian Balanced Fund – Premium From dividends (0.19) (0.18) (0.15) (0.17) (0.14) (1) Series – Net Assets per Unit From capital gains (0.17) – (0.15) – (0.08) Year(s) ended December 31 Return of capital – – – – – 2020 2019 2018 2017 2016 Total annual distributions (2,3) $(0.37) $(0.23) $(0.36) $(0.21) $(0.25) Net assets per unit, beginning of Net assets per unit at December year (2) $15.24 $13.68 $14.83 $13.98 $13.03 31 of year shown (2) $11.84 $11.67 $10.52 $11.40 $10.73

Increase (decrease) from operations: Total revenue 0.41 0.50 0.56 – 0.38 Ratios and Supplemental Data Total expenses (0.21) (0.21) (0.21) – (0.19) 2020 2019 2018 2017 2016 Realized gains (losses) 0.53 0.23 0.32 – 0.43 Total net asset value (in Unrealized gains (losses) (0.14) 1.24 (1.45) 1.05 0.63 000s) (4) $597 $675 $636 $777 $139 Total increase (decrease) from Number of units outstanding operations (2) $0.59 $1.76 $(0.78) $1.05 $1.25 (in 000s) (4) 50 58 60 68 13 Distributions to unitholders: Management expense ratio From net investment income ("MER") (5) 1.07% 1.35% 0.91% 0.94% 1.27% (excluding dividends) (0.02) (0.05) (0.06) (0.04) (0.03) MER before waivers or From dividends (0.18) (0.17) (0.15) (0.17) (0.16) absorptions (5) 1.09% 1.50% 0.91% 0.94% 3.74% From capital gains (0.21) – (0.18) – (0.10) Trading expense ratio (6) 0.02% 0.02% 0.02% 0.02% 0.04% Return of capital – – – – – Portfolio turnover rate (7) 38.89% 25.22% 23.97% 19.95% 23.99% Net asset value per unit (4) $11.84 $11.67 $10.52 $11.40 $10.73 Total annual distributions (2,3) $(0.41) $(0.22) $(0.39) $(0.21) $(0.29) Net assets per unit at December 31 of year shown (2) $15.48 $15.24 $13.68 $14.83 $13.98

Ratios and Supplemental Data 2020 2019 2018 2017 2016 Total net asset value (in 000s) (4) $180,698 $159,071 $132,938 $131,371 $95,003 Number of units outstanding (in 000s) (4) 11,673 10,435 9,721 8,859 6,799 Management expense ratio ("MER") (5) 1.46% 1.45% 1.42% 1.44% 1.42% MER before waivers or absorptions (5) 1.46% 1.45% 1.42% 1.44% 1.42% Trading expense ratio (6) 0.02% 0.02% 0.02% 0.02% 0.04% Portfolio turnover rate (7) 38.89% 25.22% 23.97% 19.95% 23.99% Net asset value per unit (4) $15.48 $15.24 $13.68 $14.83 $13.97

3 HSBC Canadian Balanced Fund

HSBC Canadian Balanced Fund – Institutional payable by the Fund. The amount of expenses absorbed or waived Series – Net Assets per Unit(1) is at the discretion of and can be terminated at any time by us. Year(s) ended December 31 Please see the prospectus, Fund Facts and other disclosure documents for further details. 2020 2019 2018 2017 2016 (6) The trading expense ratio represents total commissions and other Net assets per unit, beginning of portfolio transaction costs expressed as an annualized percentage year (2) $16.96 $15.21 $16.50 $15.55 $14.49 of daily average net asset value during the year. Increase (decrease) from (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s operations: portfolio advisor manages its portfolio investments. A portfolio Total revenue 0.46 0.55 0.63 0.49 0.42 turnover rate of 100% is equivalent to the Fund buying and selling Total expenses (0.01) (0.01) (0.01) (0.01) (0.01) all of the securities in its portfolio once in the course of the year. Realized gains (losses) 0.58 0.26 0.36 0.56 0.48 The higher the Fund’s portfolio turnover rate in a year, the greater Unrealized gains (losses) (0.06) 1.42 (1.61) 0.46 0.68 the trading costs payable by the Fund in the year, and the greater Total increase (decrease) from the chance of an investor receiving taxable capital gains in the year. operations (2) $0.97 $2.22 $(0.63) $1.50 $1.57 There is not necessarily a relationship between a high turnover rate Distributions to unitholders: and the performance of the Fund. The rate is calculated based on From net investment income the lesser of purchases or sales of securities divided by the average (excluding dividends) (0.02) (0.11) (0.12) (0.06) (0.04) weighted market value of the portfolio securities, excluding short- From dividends (0.38) (0.36) (0.30) (0.39) (0.35) term securities. From capital gains (0.27) – (0.23) – (0.13) Return of capital – – – – – Management Fees Total annual distributions (2,3) $(0.67) $(0.47) $(0.65) $(0.45) $(0.52) For the year ended December 31, 2020, the Fund paid us Net assets per unit at December management fees of $7,901,119. The management fee for each 31 of year shown (2) $17.23 $16.96 $15.21 $16.50 $15.55 series is calculated as a percentage of the daily net asset value

for that series. The fees are reduced, where required, so that Ratios and Supplemental Data these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. 2020 2019 2018 2017 2016 Total net asset value (in The Fund’s management fees were used by us to pay costs for 000s) (4) $85,517 $81,208 $71,038 $72,958 $105,033 managing the investment portfolio, providing investment Number of units analysis and recommendations, making investment decisions, outstanding (in 000s) (4) 4,964 4,788 4,669 4,422 6,755 making brokerage arrangements for the purchase and sale of Management expense ratio ("MER") (5) 0.10% 0.10% 0.07% 0.08% 0.06% the investment portfolio and providing other services. The MER before waivers or management fees also funded commission payments and other absorptions (5) 0.10% 0.10% 0.07% 0.08% 0.06% compensation (collectively “distribution costs”) to sales Trading expense ratio (6) 0.02% 0.02% 0.02% 0.02% 0.04% representatives and registered dealers and brokers, including Portfolio turnover rate (7) 38.89% 25.22% 23.97% 19.95% 23.99% Net asset value per HSBC Investment Funds (Canada) Inc., for units of the Fund unit (4) $17.23 $16.96 $15.21 $16.50 $15.55 bought and held by unitholders. Finally, we used management (1) This information is derived from the Fund’s audited annual financial fees to pay for additional marketing and distribution services to statements. All balances are stated in International Financial the Fund. Reporting Standards (“IFRS”). Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset For the year ended December 31, 2020, approximately 46% of value calculated for fund pricing purposes. the total management fees collected from all HSBC Mutual (2) Net assets per unit and distributions per unit are based on the Funds were used to fund distribution costs. In comparison, for actual number of units outstanding for the relevant series at the the Fund, such distribution costs represented 48% of the relevant time. The increase/decrease in net assets from operations management fees collected. This may vary by series depending per unit is based on the weighted average number of units on the assets invested in each of the series. outstanding for the relevant series over the fiscal year. (3) Distributions are automatically reinvested in additional units of the Past Performance Fund, unless the unitholder withdraws from the automatic The performance information shown assumes that all reinvestment plan by providing written notice to us. distributions made by the Fund in the years shown were (4) This information is provided as at December 31 of the year shown. reinvested in additional securities of the Fund. The performance (5) MER is based on total expenses (including a portion of the operating expenses of the underlying funds in proportion to the information does not take into account sales, redemption, Fund’s holdings in the other funds and excluding distributions, distribution, optional charges or expenses you may be charged commissions and other portfolio transaction costs) for the stated outside of the Fund or the effect of any income tax you may year and is expressed as an annualized percentage of daily average have to pay as a result of your investment in the Fund that net asset value during the year. The MER may vary from one mutual fund to another and from one series of units to another. We would have reduced returns or performance. The performance may have waived or absorbed certain fees and expenses otherwise

4 HSBC Canadian Balanced Fund of different fund series may vary for a number of reasons, Annual Returns – Institutional Series including differences in management fees and expenses. The 20% 16.1% Fund’s past performance does not necessarily indicate how it 14.7% will perform in the future. 15% 12.5% 11.0% 10% 8.9% 9.1% Year-by-Year Returns 5.7% Years ended December 31 5% 3.6% The following bar charts show the Fund’s performance for each 0% of the years shown, and illustrate how the Fund’s performance -1.7% changed from year to year. In percentage terms, the bar charts -5% -3.8% show how much an investment made on the first day of each -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 financial year would have grown or decreased by the last day of 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 each financial year.

Annual Returns – Investor Series Annual Compound Returns Year ended December 31, 2020 20% The following tables show the Fund’s historical annual 13.9% 15% 12.5% compound total returns for the years indicated, compared with 10.4% 10% 8.9% the benchmark index. The benchmark of the Fund is a weighted 6.8% 7.0% composite consisting of the FTSE Canada Universe Bond Index 5% 3.7% 1.7% (35%), S&P/TSX Capped Composite Index (35%), MSCI World 0% Net Index (in Canadian dollars) (25%) and FTSE Canada 91 Day T-Bill Index (5%). -5% -3.6% -5.7% The FTSE Canada Universe Bond Index is a broad measure of -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 the total return for the Canadian bond market, covering 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 marketable Canadian bonds with a term to maturity of more than one year. The S&P/TSX Capped Composite Index tracks Annual Returns – Premium Series changes in the share price of the largest companies listed on 20% the Toronto Stock Exchange, representing a broad range of 14.5% 15% 13.1% industries. The MSCI World Net Index is an international index 11.0% 9.5% that measures the performance of stocks traded in Europe, 10% 7.4% 7.6% Australia, the Far East, the US, Canada and South Africa. This 4.3% 5% 2.2% index is tracked in US dollars and was converted to Canadian 0% dollars. The FTSE Canada 91 Day T-Bill Index is a broad measure of the total return for the Canadian 91-day treasury bill -5% -3.1% -5.1% market, covering marketable Canadian treasury bills with a term -10% to maturity of 91 days or less. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Investor Series

Annual Returns – Manager Series 1 Year 3 Year 5 Year 10 Year HSBC Canadian Balanced Fund 3.73% 3.26% 5.12% 5.38% 20% 35% FTSE Canada Universe Bond Index, 15.2% 15% 13.2% 35% S&P/TSX Capped Composite Index, 25% MSCI World Net Index (C$), 5% 10% 8.1% 8.2% FTSE Canada 91 Day T-Bill Index 9.05% 7.10% 7.54% 6.94%

4.7% 5% Manager Series

0% Since -5% -2.5% 1 Year 3 Year Inception -4.6% HSBC Canadian Balanced Fund 4.70% 4.17% 6.23% -10% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 35% FTSE Canada Universe Bond Index, 35% 2011 2012 2013 2014* 2015* 2016* 2017 2018 2019 2020 S&P/TSX Capped Composite Index, 25% MSCI World Net Index (C$), 5% FTSE Canada 91 Day * The Manager Series was fully redeemed between 2014 and 2016. T-Bill Index 9.05% 7.10% 7.83%

5 HSBC Canadian Balanced Fund

Institutional Series Top 25 Holdings Percentage 1 Year 3 Year 5 Year 10 Year of NAV HSBC Canadian Balanced Fund 5.72% 5.24% 7.13% 7.41% 35% FTSE Canada Universe Bond Index, HSBC Global Equity Fund - Institutional Series 24.69% 35% S&P/TSX Capped Composite Index, HSBC Mortgage Fund - Institutional Series 6.70% 25% MSCI World Net Index (C$), 5% Royal Bank of Canada 2.51% FTSE Canada 91 Day T-Bill Index 9.05% 7.10% 7.54% 6.94% Toronto-Dominion Bank 2.38%

Brookfield Asset Management Inc., Class A 1.81% Premium Series Enbridge Inc. 1.57% Canadian National Railway Co. 1.53% 1 Year 3 Year 5 Year 10 Year Bank of Nova Scotia 1.52% HSBC Canadian Balanced Fund 4.29% 3.83% 5.69% 5.96% Province of British Columbia, 2.80%, 06/18/2048 1.36% 35% FTSE Canada Universe Bond Index, Province of Ontario, 4.60%, 06/02/2039 1.34% 35% S&P/TSX Capped Composite Index, HSBC Small Cap Growth Fund - Institutional Series 1.29% 25% MSCI World Net Index (C$), 5% Nutrien Ltd. 1.24% FTSE Canada 91 Day T-Bill Index 9.05% 7.10% 7.54% 6.94% Alimentation Couche-Tard Inc., Class B 1.23% (1) Due to the fact that several benchmark indices are only available on Canadian Pacific Railway Ltd. 1.22% a monthly basis, the performance data for the HSBC Funds and the Government of Canada, 2.00%, 12/01/2051 1.17% benchmark indices are calculated using values from the first month- CGI Inc. 1.11% end date each Fund was in operation. Cenovus Energy Inc. 1.06% (2) For investment commentary and relative performance of the Fund Manulife Financial Corp. 1.04% compared to its benchmark, please refer to the Results of Operations Wheaton Precious Metals Corp. 1.04% section of this report. Province of New Brunswick, 3.55%, 06/03/2043 1.03% Province of Ontario, 2.60%, 06/02/2027 1.01% Summary of Investment Portfolio Province of Ontario, 2.70%, 06/02/2029 1.00% As at December 31, 2020 Barrick Gold Corp. 0.99% Province of Alberta, 2.55%, 06/01/2027 0.92% Open Text Corp. 0.89% Asset Mix Total of Top 25 Holdings 61.65% Percentage of NAV

Canadian Equities 35.09% Investment Funds 33.10% Government Bonds 15.59% Corporate Bonds 15.16% Cash & Equivalents 1.06% Total 100.00%

Sector Mix Percentage of NAV

Investment Funds 33.10% Financials 17.56% Government Bonds 15.59% Materials 7.42% Energy 7.19% Industrials 3.89% Real Estate 3.00% Information Technology 2.47% Communication Services 2.33% Consumer Staples 2.13% Utilities 1.91% Consumer Discretionary 1.35% Asset Backed 1.00% Cash & Equivalents 1.06% Total 100.00%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

6 HSBC Canadian Balanced Fund

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 HSBC Canadian Balanced Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC Dividend Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Dividend Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Investment Performance Fund; we, us and our refer to HSBC Global Asset Management The HSBC Dividend Fund (Investor Series) fell 3.07% for the 12 (Canada) Limited; and the Fund refers to the HSBC months ending December 31, 2020, while the benchmark S&P/ Dividend Fund. TSX Capped Composite Index rose 5.60% over the same period. The Fund’s returns are after the deduction of fees and We are the manager, trustee and primary investment advisor of expenses, while the benchmark’s returns do not include any the Fund. costs of investing. See the Past Performance section for the Introduction returns of other series of the Fund, which may vary due to This Annual Management Report of Fund Performance contains differences in management fees and expenses. financial highlights but does not contain the complete annual Equity markets had a remarkable year, with the fastest bear financial statements of the Fund. You may obtain a copy of the market of all time giving way to a surprising and expeditious annual financial statements at your request, at no cost, by recovery. Significant fiscal initiatives enacted by governments calling us toll-free at 1-888-390-3333, by visiting our website at around the world and accommodative monetary policy from www.assetmanagement.hsbc.ca, by visiting the SEDAR central banks facilitated the recovery of financial assets despite website at www.sedar.com or by writing to us at: depressed activity levels. Positive vaccine news took markets a HSBC Global Asset Management (Canada) Limited step closer to new highs in December. rd 3 Floor, 885 West Georgia Street In 2020, businesses in traditionally defensive sectors were Vancouver, BC V6C 3E8 abandoned for pandemic winners in high-growth technology, You may also contact us using one of these methods to request a industrials (mainly transportation) and consumer discretionary copy of the Fund’s interim financial report, proxy voting policies (benefiting from government cheques). The combination of and procedures, proxy voting disclosure record or quarterly expansionary fiscal/central bank policies, increased individual portfolio disclosure. investor activity and momentum-driven trading propelled popular stocks with favourable narratives to dizzying heights. Investment Objective and Strategies The narrow leadership driven by expensive story stocks is the The fundamental investment objective of this Fund is to provide main reason for our underperformance against the benchmark; dividend income and medium- to long-term capital growth. a single company not owned due to valuation concerns accounted for 4.7% of the 5.6% return of the TSX. Other To achieve its objectives, the Fund invests primarily in a negative contributors were our positions in defensive diversified portfolio of Canadian common equities, preferred businesses, an underweight position in gold mining equities equities, income trust units and fixed income securities. When (which benefited from a strong rally in the underlying investing in fixed income securities, the Fund will invest commodity) and our cash position. Positive contributors were primarily in investment-grade securities, and when investing in cyclical businesses acquired at attractive prices in the depths of common shares the Fund will invest primarily in high-dividend the sell-off that recovered strongly late in the year. paying companies listed on the Toronto Stock Exchange. Recent Developments Risk With much of the heavy lifting behind us, we expect the pace of The risks of investing in this Fund remain as discussed in the the recovery to be slower going forward, although we still Simplified Prospectus. During the year, there were no material expect positive returns for 2021. The economic fallout from the changes to the Fund that affected the overall risk level of pandemic is likely to dissipate as vaccines are rolled out, while the Fund. aggressive policy moves continue to support liquidity and economic momentum. The key risk remains the virus and its This Fund is suitable for investors who want to earn income in variants or a stall in the rollout of vaccines. Changes in fiscal or the form of dividends and grow their capital, have a medium- monetary policy direction will be carefully monitored, as well as term investment time horizon and have a medium tolerance for the geopolitical relationship between China and the US. risk in their returns. With some stocks displaying fan-favourite characteristics and Results of Operations significant outperformance, we encourage investors to As of December 31, 2020, the Fund's net assets decreased by remember that it is not what you buy that drives returns but the 3.8% to $748.1 million from $778.0 million at the end of 2019. price you pay; valuation has historically explained a majority of Net withdrawals and negative investment performance resulted returns over a longer time period. Any change in the existing in an overall decrease in net asset value. low inflation regime to one that has more growth could result in a reversal of the significant and sudden re-rating some of the high fliers have received.

1 HSBC Dividend Fund

Fund’s Simplified Prospectus. The following is a summary of current transactions and HSBC Dividend Fund – Investor Series – Net arrangements with entities that are related to us or the Fund. Assets per Unit(1) Year(s) ended December 31 Manager, Trustee and Investment Advisor 2020 2019 2018 2017 2016 We are the manager, trustee and primary investment advisor of Net assets per unit, beginning of the Fund. As manager, we manage the overall business and year (2) $44.68 $38.31 $43.26 $39.81 $33.04 operations of the Fund. As trustee, we hold legal title to the Increase (decrease) from property of the Fund on your behalf. As primary investment operations: advisor, we provide investment advice and portfolio Total revenue 1.35 1.39 1.28 1.19 1.09 management services to the Fund. We receive a fee from the Total expenses (0.79) (0.85) (0.82) (0.79) (0.69) Realized gains (losses) 0.39 0.81 1.82 1.31 0.69 Fund for these services based on assets under management, Unrealized gains (losses) (2.65) 5.62 (6.73) 2.06 6.00 calculated daily and paid monthly. Total increase (decrease) from operations (2) $(1.70) $6.97 $(4.45) $3.77 $7.09 Distribution Services The Fund is distributed through us, HSBC Investment Funds Distributions to unitholders: From net investment income (Canada) Inc. (our wholly owned subsidiary and affiliate) and (excluding dividends) – – – – – HSBC Securities (Canada) Inc. (an affiliate) directly or through From dividends (0.56) (0.54) (0.42) (0.37) (0.43) its division, HSBC InvestDirect. We pay distribution and From capital gains – – – – – Return of capital – – – – – servicing fees to them based on the amount of assets held in the investor’s account, and additionally, in some cases, on the Total annual distributions (2,3) $(0.56) $(0.54) $(0.42) $(0.37) $(0.43) amount of the initial purchase. If you hold units of this Fund Net assets per unit at December 31 of year shown (2) $42.67 $44.68 $38.31 $43.26 $39.81 and/or other HSBC Mutual Funds in a registered plan with HSBC Investment Funds (Canada) Inc., they may charge you an annual 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 market value in your registered plan.

Fund on Fund Investing During the year, the Fund invested in units of the HSBC Mortgage Fund, which is also managed by us.

2 HSBC Dividend Fund

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value Total net asset value (in 000s) (4) $402,804 $457,443 $412,180 $497,698 $499,381 (in 000s) (4) $228,578 $206,108 $166,999 $179,263 $146,297 Number of units Number of units outstanding (in outstanding (in 000s) (4) 9,440 10,239 10,759 11,505 12,543 000s) (4) 13,413 11,551 10,918 10,381 9,207 Management Management expense ratio expense ratio ("MER") (5) 1.97% 1.96% 1.94% 1.95% 1.95% ("MER") (5) 1.43% 1.42% 1.39% 1.40% 1.40% MER before waivers MER before waivers or absorptions (5) 1.97% 1.96% 1.94% 1.95% 1.95% or absorptions (5) 1.43% 1.42% 1.39% 1.40% 1.40% Trading expense Trading expense ratio (6) 0.04% 0.03% 0.03% 0.03% 0.03% ratio (6) 0.04% 0.03% 0.03% 0.03% 0.03% Portfolio turnover Portfolio turnover rate (7) 23.39% 13.95% 16.61% 11.35% 8.90% rate (7) 23.39% 13.95% 16.61% 11.35% 8.90% Net asset value per Net asset value per unit (4) $42.67 $44.68 $38.31 $43.26 $39.81 unit (4) $17.04 $17.84 $15.30 $17.27 $15.89

HSBC Dividend Fund – Premium Series – Net HSBC Dividend Fund – Manager Series – Net Assets per Unit(1) Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $17.84 $15.30 $17.27 $15.89 $13.19 year (2) $23.27 $19.96 $22.55 $20.73 $17.27 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.54 0.56 0.51 0.48 0.44 Total revenue 0.70 0.73 0.68 0.63 0.57 Total expenses (0.23) (0.24) (0.23) (0.23) (0.20) Total expenses (0.20) (0.22) (0.21) (0.21) (0.23) Realized gains (losses) 0.17 0.33 0.72 0.54 0.28 Realized gains (losses) 0.21 0.42 0.92 0.84 0.40 Unrealized gains (losses) (0.81) 2.18 (2.74) 0.82 2.48 Unrealized gains (losses) (1.23) 2.58 (3.78) 1.48 3.07 Total increase (decrease) from Total increase (decrease) from operations (2) $(0.33) $2.83 $(1.74) $1.61 $3.00 operations (2) $(0.52) $3.51 $(2.39) $2.74 $3.81 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) – – – – – (excluding dividends) – – – – – From dividends (0.31) (0.31) (0.26) (0.24) (0.25) From dividends (0.51) (0.52) (0.45) (0.38) (0.43) From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $(0.31) $(0.31) $(0.26) $(0.24) $(0.25) Total annual distributions (2,3) $(0.51) $(0.52) $(0.45) $(0.38) $(0.43) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $17.04 $17.84 $15.30 $17.27 $15.89 31 of year shown (2) $22.22 $23.27 $19.96 $22.55 $20.73

Ratios and Supplemental Data 2020 2019 2018 2017 2016 Total net asset value (in 000s) (4) $1,819 $2,213 $1,488 $1,461 $453 Number of units outstanding (in 000s) (4) 82 95 75 65 22 Management expense ratio ("MER") (5) 0.93% 0.96% 0.94% 0.97% 1.21% MER before waivers or absorptions (5) 0.93% 0.96% 0.94% 0.97% 1.21% Trading expense ratio (6) 0.04% 0.03% 0.03% 0.03% 0.03% Portfolio turnover rate (7) 23.39% 13.95% 16.61% 11.35% 8.90% Net asset value per unit (4) $22.22 $23.27 $19.96 $22.55 $20.73

3 HSBC Dividend Fund

HSBC Dividend Fund – Institutional Series – Net net asset value during the year. The MER may vary from one Assets per Unit(1) mutual fund to another and from one series of units to another. We Year(s) ended December 31 may have waived or absorbed certain fees and expenses otherwise payable by the Fund. The amount of expenses absorbed or waived 2020 2019 2018 2017 2016 is at the discretion of and can be terminated at any time by us. Net assets per unit, beginning of Please see the prospectus, Fund Facts and other disclosure year (2) $17.99 $15.42 $17.42 $16.03 $13.30 documents for further details. Increase (decrease) from (6) The trading expense ratio represents total commissions and other operations: portfolio transaction costs expressed as an annualized percentage Total revenue 0.54 0.56 0.52 0.48 0.44 of daily average net asset value during the year. Total expenses (0.01) (0.01) (0.01) (0.01) (0.01) (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Realized gains (losses) 0.17 0.33 0.74 0.55 0.28 portfolio advisor manages its portfolio investments. A portfolio Unrealized gains (losses) (0.65) 2.26 (2.70) 0.85 2.53 turnover rate of 100% is equivalent to the Fund buying and selling Total increase (decrease) from all of the securities in its portfolio once in the course of the year. operations (2) $0.05 $3.14 $(1.45) $1.87 $3.24 The higher the Fund’s portfolio turnover rate in a year, the greater Distributions to unitholders: the trading costs payable by the Fund in the year, and the greater From net investment income the chance of an investor receiving taxable capital gains in the year. (excluding dividends) – – – – – There is not necessarily a relationship between a high turnover rate From dividends (0.52) (0.55) (0.49) (0.47) (0.46) and the performance of the Fund. The rate is calculated based on From capital gains – – – – – the lesser of purchases or sales of securities divided by the average Return of capital – – – – – weighted market value of the portfolio securities, excluding short- Total annual distributions (2,3) $(0.52) $(0.55) $(0.49) $(0.47) $(0.46) term securities. Net assets per unit at December Management Fees 31 of year shown (2) $17.18 $17.99 $15.42 $17.42 $16.03 For the year ended December 31, 2020, the Fund paid us management fees of $9,539,626. The management fee for each Ratios and Supplemental Data series is calculated as a percentage of the daily net asset value for that series. The fees are reduced, where required, so that 2020 2019 2018 2017 2016 these fees do not duplicate fees payable by mutual funds in Total net asset value (in which the Fund invests for the same service. 000s) (4) $114,931 $112,193 $99,118 $102,459 $86,051 Number of units The Fund’s management fees were used by us to pay costs for outstanding (in managing the investment portfolio, providing investment 000s) (4) 6,689 6,237 6,427 5,883 5,369 Management expense analysis and recommendations, making investment decisions, ratio ("MER") (5) 0.07% 0.06% 0.04% 0.04% 0.04% making brokerage arrangements for the purchase and sale of MER before waivers or the investment portfolio and providing other services. The absorptions (5) 0.07% 0.06% 0.04% 0.04% 0.04% management fees also funded commission payments and other Trading expense compensation (collectively “distribution costs”) to sales ratio (6) 0.04% 0.03% 0.03% 0.03% 0.03% Portfolio turnover representatives and registered dealers and brokers, including rate (7) 23.39% 13.95% 16.61% 11.35% 8.90% HSBC Investment Funds (Canada) Inc., for units of the Fund Net asset value per bought and held by unitholders. Finally, we used management unit (4) $17.18 $17.99 $15.42 $17.42 $16.03 fees to pay for additional marketing and distribution services to (1) This information is derived from the Fund’s audited annual financial the Fund. statements. All balances are stated in International Financial Reporting Standards (“IFRS”). Under IFRS, the net assets per unit For the year ended December 31, 2020, approximately 46% of presented in the financial statements is the same as the net asset the total management fees collected from all HSBC Mutual value calculated for fund pricing purposes. Funds were used to fund distribution costs. In comparison, for (2) Net assets per unit and distributions per unit are based on the the Fund, such distribution costs represented 50% of the actual number of units outstanding for the relevant series at the management fees collected. This may vary by series depending relevant time. The increase/decrease in net assets from operations on the assets invested in each of the series. per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. Past Performance (3) Distributions are automatically reinvested in additional units of the The performance information shown assumes that all Fund, unless the unitholder withdraws from the automatic distributions made by the Fund in the years shown were reinvestment plan by providing written notice to us. reinvested in additional securities of the Fund. The performance (4) This information is provided as at December 31 of the year shown. information does not take into account sales, redemption, (5) MER is based on total expenses (including a portion of the distribution, optional charges or expenses you may be charged operating expenses of the underlying funds in proportion to the Fund’s holdings in the other funds and excluding distributions, outside of the Fund or the effect of any income tax you may commissions and other portfolio transaction costs) for the stated have to pay as a result of your investment in the Fund that year and is expressed as an annualized percentage of daily average would have reduced returns or performance. The performance

4 HSBC Dividend Fund of different fund series may vary for a number of reasons, Annual Returns – Institutional Series including differences in management fees and expenses. The 30% Fund’s past performance does not necessarily indicate how it 24.3% 19.8% 20.3% will perform in the future. 20% 12.8% 10.6% 11.7% Year-by-Year Returns 10% Years ended December 31 0% The following bar charts show the Fund’s performance for each -1.2% of the years shown, and illustrate how the Fund’s performance -10% -5.6% -5.0% changed from year to year. In percentage terms, the bar charts -8.8% show how much an investment made on the first day of each -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 financial year would have grown or decreased by the last day of 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 each financial year. Annual Compound Returns Annual Returns – Investor Series Year ended December 31, 2020 30% The following tables show the Fund’s historical annual 21.9% compound total returns for the years indicated, compared with 20% 17.5% 18.1% the benchmark index, the S&P/TSX Capped Composite Index, 10.7% 9.6% 10% 8.5% over the same period. This index tracks changes in the share price of the largest companies listed on the Toronto Stock 0% Exchange, representing a broad range of industries.

-3.1% -10% -7.5% -6.8% Investor Series -10.5% 1 Year 3 Year 5 Year 10 Year -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 HSBC Dividend Fund -3.07% 0.80% 6.48% 5.24% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 S&P/TSX Capped Composite Index 5.60% 5.74% 9.33% 5.76%

Annual Returns – Premium Series Manager Series

30% 1 Year 3 Year 5 Year 10 Year 22.6% HSBC Dividend Fund -2.05% 1.83% 7.49% 6.29% 18.2% 18.7% 20% S&P/TSX Capped Composite Index 5.60% 5.74% 9.33% 5.76%

11.3% 9.1% 10.2% 10% Institutional Series

1 Year 3 Year 5 Year 10 Year 0% HSBC Dividend Fund -1.20% 2.74% 8.53% 7.27% -2.5% -10% -6.9% -6.3% S&P/TSX Capped Composite Index 5.60% 5.74% 9.33% 5.76% -10.0% -20% Premium Series Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1 Year 3 Year 5 Year 10 Year HSBC Dividend Fund -2.53% 1.35% 7.07% 5.82% Annual Returns – Manager Series S&P/TSX Capped Composite Index 5.60% 5.74% 9.33% 5.76% (1) Due to the fact that several benchmark indices are only available on 30% a monthly basis, the performance data for the HSBC Funds and the 22.8% 18.8% 19.3% benchmark indices are calculated using values from the first month- 20% end date each Fund was in operation. 11.9% 9.7% 10.7% (2) For investment commentary and relative performance of the Fund 10% compared to its benchmark, please refer to the Results of Operations section of this report. 0% -2.1% -10% -6.4% -6.0% -9.6% -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

5 HSBC Dividend Fund

Summary of Investment Portfolio Top 25 Holdings As at December 31, 2020 Percentage

of NAV

Royal Bank of Canada 7.51% Asset Mix Toronto-Dominion Bank 6.80% Percentage Brookfield Asset Management Inc. 5.03% of NAV Canadian National Railway Co. 4.47% Canadian Equities 97.52% Enbridge Inc. 4.39% Investment Funds 1.56% Bank of Nova Scotia 4.37% Cash & Equivalents 0.92% Canadian Pacific Railway Ltd. 3.57% Total 100.00% Nutrien Ltd. 3.37%

Alimentation Couche-Tard Inc., Class B 3.36% Manulife Financial Corp. 3.03% Sector Mix Wheaton Precious Metals Corp. 2.88% Percentage Cenovus Energy Inc. 2.82% of NAV Barrick Gold Corp. 2.78% Financials 31.05% Methanex Corp. 2.43% Materials 17.75% Dollarama Inc. 2.22% Energy 12.35% Shaw Communications Inc., Class B 2.18% Industrials 11.01% TransAlta Corp. 2.13% Communication Services 6.40% TELUS Corp. 2.12% Consumer Staples 6.01% CGI Inc. 2.10% Utilities 4.24% Rogers Communications Inc. 2.10% Information Technology 4.01% Kirkland Lake Gold Ltd. 1.95% Consumer Discretionary 3.87% Open Text Corp. 1.91% Investment Funds 1.56% Suncor Energy Inc. 1.84% Real Estate 0.83% Loblaw Cos., Ltd. 1.82% Cash & Equivalents 0.92% Bank of Montreal 1.81% Total 100.00% Total of Top 25 Holdings 78.99%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

6 HSBC Dividend Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC Equity Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Equity Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the expenses, while the benchmark’s returns do not include any Fund; we, us and our refer to HSBC Global Asset Management costs of investing. See the Past Performance section for the (Canada) Limited; and the Fund refers to the HSBC Equity Fund. returns of other series of the Fund, which may vary due to differences in management fees and expenses. We are the manager, trustee and primary investment advisor of the Fund. Equity markets had a remarkable year, with the fastest bear market of all time giving way to a surprising and expeditious Introduction recovery. Significant fiscal initiatives enacted by governments This Annual Management Report of Fund Performance contains around the world and accommodative monetary policy from financial highlights but does not contain the complete annual central banks facilitated the recovery of financial assets despite financial statements of the Fund. You may obtain a copy of the depressed activity levels throughout the year. Positive vaccine annual financial statements at your request, at no cost, by news took markets a step closer to new highs in December. calling us toll-free at 1-888-390-3333, by visiting our website at www.assetmanagement.hsbc.ca, by visiting the SEDAR In 2020, businesses in traditionally defensive sectors were website at www.sedar.com or by writing to us at: abandoned for pandemic winners in high-growth technology, industrials (mainly transportation) and consumer discretionary HSBC Global Asset Management (Canada) Limited (benefiting from government cheques). The combination of rd 3 Floor, 885 West Georgia Street expansionary fiscal/central bank policies, increased individual Vancouver, BC V6C 3E8 investor activity and momentum-driven trading propelled You may also contact us using one of these methods to request a popular stocks with favourable narratives to dizzying heights. The narrow leadership driven by expensive story stocks is the copy of the Fund’s interim financial report, proxy voting policies main reason for our underperformance against the benchmark; and procedures, proxy voting disclosure record or quarterly a single company not owned due to valuation concerns portfolio disclosure. accounted for 4.7% of the 5.6% return of the TSX. Other Investment Objective and Strategies negative contributors were our positions in defensive The fundamental investment objective of this Fund is to achieve businesses, an underweight position in gold mining equities long-term capital growth. (which benefited from a strong rally in the underlying commodity) and our cash position. Positive contributors were To achieve its objectives, the Fund invests primarily in publicly cyclical businesses acquired at attractive prices in the depths of traded common shares, preferred shares, rights, warrants and the sell-off that recovered strongly late in the year. convertible securities. A portion of the Fund may be in the form of cash or cash equivalents. When investing in common shares Recent Developments the Fund will invest primarily in large cap companies listed on With much of the heavy lifting behind us, we expect the pace of the Toronto Stock Exchange. the recovery to be slower going forward, although we still expect positive returns for 2021. The economic fallout from the Risk pandemic is likely to dissipate as vaccines are rolled out, while The risks of investing in the Fund remain as discussed in the aggressive policy moves continue to support liquidity and Simplified Prospectus. During the year, there were no material economic momentum. The key risk remains the virus and its changes to the Fund that affected the overall risk level of variants or a stall in the rollout of vaccines. Changes in fiscal or the Fund. monetary policy direction will be carefully monitored, as well as This Fund is suitable for investors who want to achieve long the geopolitical relationship between China and the US. term capital growth, have a long-term investment time horizon With some stocks displaying fan-favourite characteristics and and have a medium tolerance for risk in their returns. significant outperformance, we encourage investors to remember that it is not what you buy that drives returns but the Results of Operations price you pay; valuation has historically explained a majority of As of December 31, 2020, the Fund's net assets increased by returns over a longer time period. Any change in the existing 0.9% to $556.0 million from $551.3 million at the end of 2019. low inflation regime to one that has more growth could result in Positive investment performance, partially offset by net a reversal of the significant and sudden re-rating some of the withdrawals, resulted in an overall increase in net asset value. high fliers have received. Investment Performance During the period there has been a change in composition to The HSBC Equity Fund (Investor Series) fell 1.28% for the 12 the Independent Review Committee (the “IRC”). Effective months ending December 31, 2020, while the benchmark S&P/ March 25, 2020, Ms. Louise Tymocko was appointed to the IRC TSX Capped Composite Index rose 5.60% over the same as a member, replacing Mr. William (Bill) Bakk who left as his period. The Fund’s returns are after the deduction of fees and term of office expired. Ms. Lisa Pankratz also took over as Chair

1 HSBC Equity Fund of the IRC effective March 25, 2020. In addition, effective Financial Highlights February 18, 2021, Ms. Sharon Morrisroe was also appointed to The following tables show selected key financial information the IRC as a member, replacing Mr. Neil de Gelder who left about the Fund and are intended to help you understand the following the expiry of his term in March of 2021. Fund’s financial performance for the past five years. This information is derived from the Fund’s audited annual financial Related Party Transactions statements. The information in the following tables is based on We, on behalf of the Fund, or the Fund Manager, may, from prescribed regulations, and, as a result, is not expected to add time to time, enter into transactions or arrangements with or down due to the increase/decrease in net assets from involving other members of the HSBC Group or other people or operations being based on average units outstanding during the companies related or connected to us or the Fund. To proceed year and all other numbers being based on actual units with the transactions, the Fund relies on the positive outstanding at the relevant point in time. recommendation of the Fund’s Independent Review Committee. A condition of this positive recommendation is that the transactions are performed in accordance with our policy on Related Party HSBC Equity Fund – Investor Series – Net (1) Transactions. For more general information on persons related Assets per Unit to the Fund and the types of potential transactions, see the Year(s) ended December 31 Fund’s Simplified Prospectus. 2020 2019 2018 2017 2016

The following is a summary of current transactions and Net assets per unit, beginning of year (2) $57.57 $48.88 $56.01 $51.29 $42.56 arrangements with entities that are related to us or the Fund. Increase (decrease) from operations: Manager, Trustee and Investment Advisor Total revenue 1.65 1.69 1.56 1.36 1.25 We are the manager, trustee and primary investment advisor of Total expenses (1.03) (1.09) (1.06) (1.03) (0.89) the Fund. As manager, we manage the overall business and Realized gains (losses) 0.94 0.50 2.24 1.19 1.01 operations of the Fund. As trustee, we hold legal title to the Unrealized gains (losses) (2.78) 8.27 (8.52) 3.29 7.38 property of the Fund on your behalf. As primary investment Total increase (decrease) from advisor, we provide investment advice and portfolio operations (2) $(1.22) $9.37 $(5.78) $4.81 $8.75 management services to the Fund. We receive a fee from the Distributions to unitholders: From net investment income Fund for these services based on assets under management, (excluding dividends) – – – – – calculated daily and paid monthly. From dividends (0.55) (0.50) (0.45) (0.15) (0.16) From capital gains – – (0.73) – – Distribution Services Return of capital – – – – – The Fund is distributed through us, HSBC Investment Funds Total annual distributions (2,3) $(0.55) $(0.50) $(1.18) $(0.15) $(0.16) (Canada) Inc. (our wholly owned subsidiary and affiliate) and Net assets per unit at December HSBC Securities (Canada) Inc. (an affiliate) directly or through 31 of year shown (2) $56.20 $57.57 $48.88 $56.01 $51.29 its division, HSBC InvestDirect. We pay distribution and servicing fees to them based on the amount of assets held in Ratios and Supplemental Data the investor’s account, and additionally, in some cases, on the amount of the initial purchase. If you hold units of this Fund 2020 2019 2018 2017 2016 and/or other HSBC Mutual Funds in a registered plan with Total net asset value HSBC Investment Funds (Canada) Inc., they may charge you an (in 000s) (4) $137,385 $157,123 $146,351 $178,143 $182,643 Number of units annual fee to cover the annual administration costs of the plan. outstanding (in We permit HSBC Investment Funds (Canada) Inc. to collect 000s) (4) 2,445 2,729 2,994 3,181 3,561 these fees by redeeming sufficient units of the Fund with the Management expense ratio highest market value in your registered plan. ("MER") (5) 1.98% 1.97% 1.94% 1.96% 1.95% MER before waivers Purchases of Securities Underwritten by a Related Party or absorptions (5) 1.98% 1.97% 1.94% 1.96% 1.95% During the year, the Fund invested in certain securities that Trading expense were underwritten, in whole or in part, by entities that are a ratio (6) 0.05% 0.03% 0.03% 0.03% 0.04% Portfolio turnover related party to us. To proceed with the transactions, the Fund rate (7) 23.89% 13.83% 17.29% 13.59% 11.22% relied on the approval of the Fund’s Independent Review Net asset value per Committee by way of Standing Instruction. A condition of this unit (4) $56.20 $57.57 $48.88 $56.01 $51.29 approval was that the transactions were performed in accordance with our policy on Purchases of Securities Underwritten by a Related Party.

2 HSBC Equity Fund

HSBC Equity Fund – Premium Series – Net HSBC Equity Fund – Manager Series – Net Assets per Unit(1) Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $17.50 $14.86 $17.03 $15.60 $12.95 year (2) $25.62 $21.80 $25.02 $22.93 $19.12 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.50 0.52 0.48 0.42 0.77 Total revenue 0.73 0.76 0.70 0.62 0.56 Total expenses (0.23) (0.24) (0.23) (0.23) (0.39) Total expenses (0.24) (0.27) (0.26) (0.25) (0.27) Realized gains (losses) 0.33 0.17 0.67 0.38 0.62 Realized gains (losses) 0.44 0.22 0.98 0.69 0.46 Unrealized gains (losses) (0.46) 2.45 (2.60) 1.01 1.86 Unrealized gains (losses) (1.06) 2.81 (3.87) 1.94 3.38 Total increase (decrease) from Total increase (decrease) from operations (2) $0.14 $2.90 $(1.68) $1.58 $2.86 operations (2) $(0.13) $3.52 $(2.45) $3.00 $4.13 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) – – – – – (excluding dividends) – – – – – From dividends (0.25) (0.25) (0.21) (0.14) (0.13) From dividends (0.49) (0.50) (0.41) (0.31) (0.31) From capital gains – – (0.24) – – From capital gains – – (0.37) – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $(0.25) $(0.25) $(0.45) $(0.14) $(0.13) Total annual distributions (2,3) $(0.49) $(0.50) $(0.78) $(0.31) $(0.31) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $17.08 $17.50 $14.86 $17.03 $15.60 31 of year shown (2) $24.97 $25.62 $21.80 $25.02 $22.93

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net asset value (in 000s) (4) $45,504 $38,600 $31,714 $35,706 $28,393 000s) (4) $593 $638 $374 $412 $176 Number of units Number of units outstanding outstanding (in 000s) (4) 2,665 2,206 2,134 2,097 1,820 (in 000s) (4) 24 25 17 16 8 Management expense ratio Management expense ratio ("MER") (5) 1.43% 1.42% 1.40% 1.41% 1.40% ("MER") (5) 1.05% 1.09% 1.07% 1.04% 1.31% MER before waivers or MER before waivers or absorptions (5) 1.43% 1.42% 1.40% 1.41% 1.40% absorptions (5) 1.05% 1.09% 1.07% 1.16% 1.38% Trading expense ratio (6) 0.05% 0.03% 0.03% 0.03% 0.04% Trading expense ratio (6) 0.05% 0.03% 0.03% 0.03% 0.04% Portfolio turnover rate (7) 23.89% 13.83% 17.29% 13.59% 11.22% Portfolio turnover rate (7) 23.89% 13.83% 17.29% 13.59% 11.22% Net asset value per unit (4) $17.08 $17.50 $14.86 $17.03 $15.60 Net asset value per unit (4) $24.97 $25.62 $21.80 $25.02 $22.93

3 HSBC Equity Fund

HSBC Equity Fund – Institutional Series – Net mutual fund to another and from one series of units to another. We Assets per Unit(1) have waived or absorbed certain fees and expenses otherwise Year(s) ended December 31 payable by the Fund. The amount of expenses absorbed or waived is at the discretion of and can be terminated at any time by us. 2020 2019 2018 2017 2016 (6) The trading expense ratio represents total commissions and other Net assets per unit, beginning of portfolio transaction costs expressed as an annualized percentage year (2) $26.24 $22.28 $25.54 $23.40 $19.41 of daily average net asset value during the year. Increase (decrease) from (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s operations: portfolio advisor manages its portfolio investments. A portfolio Total revenue 0.75 0.77 0.72 0.63 0.58 turnover rate of 100% is equivalent to the Fund buying and selling Total expenses (0.02) (0.02) (0.01) (0.01) (0.01) all of the securities in its portfolio once in the course of the year. Realized gains (losses) 0.46 0.24 1.01 0.56 0.48 The higher the Fund’s portfolio turnover rate in a year, the greater Unrealized gains (losses) (0.66) 3.69 (3.83) 1.52 3.45 the trading costs payable by the Fund in the year, and the greater Total increase (decrease) from the chance of an investor receiving taxable capital gains in the year. operations (2) $0.53 $4.68 $(2.11) $2.70 $4.50 There is not necessarily a relationship between a high turnover rate Distributions to unitholders: and the performance of the Fund. The rate is calculated based on From net investment income the lesser of purchases or sales of securities divided by the average (excluding dividends) – – – – – weighted market value of the portfolio securities, excluding short- From dividends (0.69) (0.72) (0.60) (0.54) (0.48) term securities. From capital gains – – (0.42) – – Return of capital – – – – – Management Fees Total annual distributions (2,3) $(0.69) $(0.72) $(1.02) $(0.54) $(0.48) For the year ended December 31, 2020, the Fund paid us Net assets per unit at December management fees of $2,871,710. The management fee for each 31 of year shown (2) $25.61 $26.24 $22.28 $25.54 $23.40 series is calculated as a percentage of the daily net asset value

for that series. The fees are reduced, where required, so that Ratios and Supplemental Data these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. 2020 2019 2018 2017 2016 Total net asset value The Fund’s management fees were used by us to pay costs for (in 000s) (4) $372,544 $354,911 $312,701 $325,917 $277,954 managing the investment portfolio, providing investment Number of units analysis and recommendations, making investment decisions, outstanding (in making brokerage arrangements for the purchase and sale of 000s) (4) 14,544 13,526 14,033 12,760 11,879 Management the investment portfolio and providing other services. The expense ratio management fees also funded commission payments and other ("MER") (5) 0.07% 0.06% 0.04% 0.05% 0.05% compensation (collectively “distribution costs”) to sales MER before waivers representatives and registered dealers and brokers, including or absorptions (5) 0.07% 0.06% 0.04% 0.05% 0.05% Trading expense HSBC Investment Funds (Canada) Inc., for units of the Fund ratio (6) 0.05% 0.03% 0.03% 0.03% 0.04% bought and held by unitholders. Finally, we used management Portfolio turnover fees to pay for additional marketing and distribution services to rate (7) 23.89% 13.83% 17.29% 13.59% 11.22% the Fund. Net asset value per unit (4) $25.61 $26.24 $22.28 $25.54 $23.40 For the year ended December 31, 2020, approximately 46% of (1) This information is derived from the Fund’s audited annual financial the total management fees collected from all HSBC Mutual statements. All balances are stated in International Financial Funds were used to fund distribution costs. In comparison, for Reporting Standards (“IFRS”). Under IFRS, the net assets per unit the Fund, such distribution costs represented 49% of the presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. management fees collected. This may vary by series depending 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 time. The increase/decrease in net assets from operations Past Performance per unit is based on the weighted average number of units The performance information shown assumes that all outstanding for the relevant series over the fiscal year. distributions made by the Fund in the years 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 December 31 of the year shown. outside of the Fund or the effect of any income tax you may (5) MER is based on total expenses (excluding distributions, have to pay as a result of your investment in the Fund that commissions and other portfolio transaction costs) for the stated year and is expressed as an annualized percentage of daily average would have reduced returns or performance. The performance net asset value during the year. The MER may vary from one

4 HSBC Equity Fund of different fund series may vary for a number of reasons, Annual Returns – Institutional Series including differences in management fees and expenses. The 40% Fund’s past performance does not necessarily indicate how it will perform in the future. 30% 23.2% 21.1% 18.1% 20% 14.6% Year-by-Year Returns 9.4% 11.6% Years ended December 31 10% 0.6% The following bar charts show the Fund’s performance for each 0% of the years shown, and illustrate how the Fund’s performance -10% -5.1% changed from year to year. In percentage terms, the bar charts -9.7% -8.9% show how much an investment made on the first day of each -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 financial year would have grown or decreased by the last day of 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 each financial year. Annual Compound Returns Annual Returns – Investor Series Year ended December 31, 2020 40% The following tables show the Fund’s historical annual 30% compound total returns for the years indicated, compared with 20.9% 18.8% the benchmark index, the S&P/TSX Capped Composite Index, 20% 15.8% 12.4% over the same period. This index tracks changes in the share 9.5% 10% 7.3% price of the largest companies listed on the Toronto Stock Exchange, representing a broad range of industries. 0% -1.3% -10% -6.9% Investor Series -11.4% -10.6% 1 Year 3 Year 5 Year 10 Year -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 HSBC Equity Fund -1.28% 1.60% 6.79% 4.82% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 S&P/TSX Capped Composite Index 5.60% 5.74% 9.33% 5.76%

Annual Returns – Premium Series Manager Series

40% 1 Year 3 Year 5 Year 10 Year HSBC Equity Fund -0.36% 2.51% 7.70% 5.82% 30% S&P/TSX Capped Composite Index 5.60% 5.74% 9.33% 5.76% 21.6% 19.5% 20% 16.5% 13.0% 10.1% Institutional Series 10% 7.9% 1 Year 3 Year 5 Year 10 Year 0% HSBC Equity Fund 0.62% 3.56% 8.84% 6.84% -0.8% S&P/TSX Capped Composite Index 5.60% 5.74% 9.33% 5.76% -10% -6.3% -10.9% -10.1% -20% Premium Series Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1 Year 3 Year 5 Year 10 Year HSBC Equity Fund -0.75% 2.15% 7.37% 5.40% Annual Returns – Manager Series S&P/TSX Capped Composite Index 5.60% 5.74% 9.33% 5.76% (1) Due to the fact that several benchmark indices are only available on 40% a monthly basis, the performance data for the HSBC Funds and the 30% benchmark indices are calculated using values from the first month end date each Fund was in operation. 21.7% 19.9% 20% 17.2% 13.7% (2) For investment commentary and relative performance of the Fund 10.5% compared to its benchmark, please refer to the Results of Operations 10% 8.5% section of this report. 0% -0.4% -10% -6.2% -10.4% -9.8% -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

5 HSBC Equity Fund

Summary of Investment Portfolio As at December 31, 2020

Sector Mix Percentage of NAV

Financials 29.88% Materials 18.41% Energy 12.54% Industrials 10.92% Information Technology 6.96% Communication Services 6.19% Consumer Staples 6.00% Consumer Discretionary 3.78% Utilities 3.38% Real Estate 0.66% Investment Funds 0.34% Cash & Equivalents 0.94% Total 100.00%

Top 25 Holdings Percentage of NAV

Royal Bank of Canada 7.06% Toronto-Dominion Bank 6.69% Brookfield Asset Management Inc., Class A 5.09% Enbridge Inc. 4.42% Canadian National Railway Co. 4.30% Bank of Nova Scotia 4.28% Nutrien Ltd. 3.49% Alimentation Couche-Tard Inc., Class B 3.46% Canadian Pacific Railway Ltd. 3.43% CGI Inc. 3.12% Cenovus Energy Inc. 2.98% Manulife Financial Corp. 2.94% Wheaton Precious Metals Corp. 2.93% Barrick Gold Corp. 2.78% Open Text Corp. 2.52% Methanex Corp. 2.30% Dollarama Inc. 2.27% TransAlta Corp. 2.23% Shaw Communications Inc., Class B 2.20% Rogers Communications Inc. 2.09% Kirkland Lake Gold Ltd. 2.05% Bank of Montreal 1.94% TELUS Corp. 1.90% Teck Resources Ltd., Class B 1.84% CCL Industries Inc. 1.82% Total of Top 25 Holdings 80.13%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

6 HSBC Equity Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC Small Cap Growth Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Small Cap Growth Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Results of Operations Fund; we, us and our refer to HSBC Global Asset Management As of December 31, 2020, the Fund's net assets increased by (Canada) Limited; and the Fund refers to the HSBC Small Cap 10.3% to $241.7 million from $219.1 million at the end of 2019. Growth Fund. Positive investment performance, partially offset by net We are the manager, trustee and primary investment advisor of withdrawals, resulted in an overall increase in net asset value. the Fund. We have entered into a sub-advisory agreement with Investment Performance Mawer Investment Management Limited and Triasima Portfolio The HSBC Small Cap Growth Fund (Investor Series) rose Management Inc. to provide portfolio management and 19.38% for the 12 months ending December 31, 2020, while investment advisory services to the Fund. For an explanation of the benchmark S&P/TSX SmallCap Index (C$) rose 12.87% over the relationship between us and the sub-advisors, see the the same period. The Fund’s returns are after the deduction of section Selection of Sub-Advisors in the Fund’s Simplified fees and expenses, while the benchmark’s returns do not Prospectus. include any costs of investing. See the Past Performance Introduction section for the returns of other series of the Fund, which may This Annual Management Report of Fund Performance contains vary due to differences in management fees and expenses. financial highlights but does not contain the complete annual Looking back on a year beset by the coronavirus pandemic, the financial statements of the Fund. You may obtain a copy of the market’s performance stands out for its incredible comeback annual financial statements at your request, at no cost, by from the virus-fuelled crash in March. Despite social restrictions calling us toll-free at 1-888-390-3333, by visiting our website at that could be in place for several more months and many www.assetmanagement.hsbc.ca, by visiting the SEDAR countries grappling with surging COVID-19 infections, global website at www.sedar.com or by writing to us at: stock markets were propelled to record highs in the fourth quarter, fuelled by unprecedented monetary and fiscal stimulus HSBC Global Asset Management (Canada) Limited measures and positive vaccine developments. 3rd Floor, 885 West Georgia Street Vancouver, BC V6C 3E8 The Fund outperformed the benchmark, primarily on the strength of the portfolio’s technology stocks. Several of the You may also contact us using one of these methods to request a Fund’s holdings performed strongly, such as Enghouse, Kinaxis copy of the Fund’s interim financial report, proxy voting policies and Descartes, but investor enthusiasm towards tech and procedures, proxy voting disclosure record or quarterly companies was most apparent with respect to the Fund’s portfolio disclosure. position in Dye & Durham. Investment Objective and Strategies Outside of technology, the portfolio’s lack of direct exposure to The fundamental investment objective of this Fund is to achieve precious metals mining companies detracted from relative long-term capital growth. performance given the industry’s strength, but this was partially offset by the portfolio’s notable underweight to the struggling To achieve its objectives, the Fund invests primarily in smaller energy sector, which declined more than 30% during the year Canadian publicly traded common shares, preferred shares, despite a strong rally in the fourth quarter. rights and warrants, income trust units and convertible securities. A portion of the Fund’s holdings may be in the form Recent Developments of cash or cash equivalents. When investing in common shares The economic trajectory for 2021 is likely to depend on the the Fund will invest primarily in a broad range of smaller and pace of COVID-19 inoculations. Vaccines will help economies medium-sized Canadian companies. recover after a destructive year for workers and businesses, but the brightening economic outlook underestimates the case for Risk caution with respect to capital markets. Increasingly lofty The risks of investing in the Fund remain as discussed in the valuations, driven by continued low interest rates and investor Simplified Prospectus. During the year, there were no material optimism, are cause for concern as much of the good news changes to the Fund that affected the overall risk level of may be already embedded in market prices. However, low the Fund. discount rates can justify valuations that otherwise would appear stretched. This Fund is suitable for investors seeking long-term, above- average growth who can tolerate significant volatility. Investors In the portfolio management team’s view, while remaining in this Fund should have a long-term investment time horizon mindful of top-down risks, the core portion of the portfolio remains focused on investing in companies that provide clear and a medium tolerance for risk in their returns. value propositions; possess strong competitive advantages; have bottom-up execution opportunities; and are led by honest

1 HSBC Small Cap Growth Fund and proactive managers who are also prudent capital Purchases of Securities Underwritten by a Related Party allocators. As such, although valuation has become less The Fund may invest in certain securities that are underwritten, attractive, a portfolio of sustainably wealth-creating businesses in whole or in part, by entities that are a related party to us. To remains a prudent approach for investors looking to protect and proceed with these transactions, the Fund relies on the compound capital over long periods of time. approval of the Fund’s Independent Review Committee by way of Standing Instruction. A condition of this approval is that the During the period there has been a change in composition to transactions are performed in accordance with our policy on the Independent Review Committee (the “IRC”). Effective Purchases of Securities Underwritten by a Related Party. During March 25, 2020, Ms. Louise Tymocko was appointed to the IRC the year, the Fund did not invest in any such securities. as a member, replacing Mr. William (Bill) Bakk who left as his term of office expired. Ms. Lisa Pankratz also took over as Chair Financial Highlights of the IRC effective March 25, 2020. In addition, effective The following tables show selected key financial information February 18, 2021, Ms. Sharon Morrisroe was also appointed to about the Fund and are intended to help you understand the the IRC as a member, replacing Mr. Neil de Gelder who left Fund’s financial performance for the past five years. This following the expiry of his term in March of 2021. information is derived from the Fund’s audited annual financial Related Party Transactions statements. The information in the following tables is based on prescribed regulations, and, as a result, is not expected to add We, on behalf of the Fund, or the Fund Manager, may, from down due to the increase/decrease in net assets from time to time, enter into transactions or arrangements with or operations being based on average units outstanding during the involving other members of the HSBC Group or other people or year and all other numbers being based on actual units companies related or connected to us or the Fund. To proceed outstanding at the relevant point in time. with the transactions, the Fund relies on the positive recommendation of the Fund’s Independent Review Committee. A condition of this positive recommendation is that the transactions HSBC Small Cap Growth Fund – Investor Series are performed in accordance with our policy on Related Party – Net Assets per Unit(1) Transactions. For more general information on persons related Year(s) ended December 31 to the Fund and the types of potential transactions, see the 2020 2019 2018 2017 2016 Fund’s Simplified Prospectus. Net assets per unit, beginning of The following is a summary of current transactions and year (2) $64.56 $52.09 $62.88 $59.96 $50.51 arrangements with entities that are related to us or the Fund. Increase (decrease) from operations: Total revenue 0.84 1.10 1.14 1.20 1.08 Manager, Trustee and Investment Advisor Total expenses (1.45) (1.36) (1.37) (1.35) (1.23) We are the manager, trustee and primary investment advisor of Realized gains (losses) 4.14 4.71 2.67 3.25 3.74 the Fund. As manager, we manage the overall business and Unrealized gains (losses) 8.26 9.46 (11.42) (0.34) 5.81 operations of the Fund. As trustee, we hold legal title to the Total increase (decrease) from property of the Fund on your behalf. As primary investment operations (2) $11.79 $13.91 $(8.98) $2.76 $9.40 advisor, we provide investment advice and portfolio Distributions to unitholders: management services to the Fund. We receive a fee from the From net investment income (excluding dividends) – – – – – Fund for these services based on assets under management, From dividends – – – – – calculated daily and paid monthly. From capital gains – (1.38) (1.55) – – Return of capital – – – – – Distribution Services Total annual distributions (2,3) $– $(1.38) $(1.55) $– $– The Fund is distributed through us, HSBC Investment Funds Net assets per unit at December (Canada) Inc. (our wholly owned subsidiary and affiliate) and 31 of year shown (2) $77.07 $64.56 $52.09 $62.88 $59.96

HSBC Securities (Canada) Inc. (an affiliate) directly or through its division, HSBC InvestDirect. We pay distribution and servicing 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 and/or other HSBC Mutual Funds in a registered plan with HSBC Investment Funds (Canada) Inc., they may charge you an annual 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 market value in your registered plan.

2 HSBC Small Cap Growth Fund

Ratios and Supplemental Data HSBC Small Cap Growth Fund – Manager (1) 2020 2019 2018 2017 2016 Series – Net Assets per Unit Year(s) ended December 31 Total net asset value (in 000s) (4) $141,143 $131,006 $115,161 $150,496 $157,535 2020 2019 2018 2017 2016 Number of units Net assets per unit, beginning of outstanding (in year (2) $31.56 $25.49 $30.86 $29.11 $24.26 000s) (4) 1,831 2,029 2,211 2,394 2,627 Management Increase (decrease) from expense ratio operations: ("MER") (5) 2.29% 2.28% 2.25% 2.26% 2.24% Total revenue 0.41 0.53 0.56 0.59 0.53 MER before waivers Total expenses (0.40) (0.38) (0.36) (0.34) (0.31) or absorptions (5) 2.29% 2.28% 2.25% 2.26% 2.24% Realized gains (losses) 1.77 2.32 1.30 1.55 1.83 Trading expense Unrealized gains (losses) 2.86 4.72 (5.44) (0.33) 2.79 ratio (6) 0.08% 0.09% 0.16% 0.17% 0.16% Total increase (decrease) from Portfolio turnover operations (2) $4.64 $7.19 $(3.94) $1.47 $4.84 rate (7) 40.84% 32.22% 43.98% 39.30% 39.70% Net asset value per Distributions to unitholders: unit (4) $77.07 $64.56 $52.09 $62.88 $59.96 From net investment income (excluding dividends) – – – – – From dividends – – – – – From capital gains – (1.02) (1.10) – – HSBC Small Cap Growth Fund – Premium Return of capital – – – – – Series – Net Assets per Unit(1) Year(s) ended December 31 Total annual distributions (2,3) $– $(1.02) $(1.10) $– $– Net assets per unit at December 2020 2019 2018 2017 2016 31 of year shown (2) $38.06 $31.56 $25.49 $30.86 $29.11

Net assets per unit, beginning of year (2) $29.04 $23.42 $28.30 $26.84 $22.49 Increase (decrease) from Ratios and Supplemental Data operations: 2020 2019 2018 2017 2016 Total revenue 0.38 0.50 0.51 0.54 0.49 Total expenses (0.50) (0.46) (0.47) (0.46) (0.42) Total net asset value (in Realized gains (losses) 2.14 2.13 1.22 1.44 1.69 000s) (4) $974 $1,188 $1,220 $1,678 $1,822 Unrealized gains (losses) 4.62 4.27 (5.32) (0.21) 2.56 Number of units outstanding (in 000s) (4) 26 38 48 54 63 Total increase (decrease) from Management expense ratio operations (2) $6.64 $6.44 $(4.06) $1.31 $4.32 ("MER") (5) 1.28% 1.29% 1.20% 1.18% 1.16% Distributions to unitholders: MER before waivers or From net investment income absorptions (5) 1.28% 1.29% 1.20% 1.18% 1.16% (excluding dividends) – – – – – Trading expense ratio (6) 0.08% 0.09% 0.16% 0.17% 0.16% From dividends – – – – – Portfolio turnover rate (7) 40.84% 32.22% 43.98% 39.30% 39.70% From capital gains – (0.78) (0.85) – – Net asset value per unit (4) $38.06 $31.56 $25.49 $30.86 $29.11

Return of capital – – – – – Total annual distributions (2,3) $– $(0.78) $(0.85) $– $– Net assets per unit at December 31 of year shown (2) $34.86 $29.04 $23.42 $28.30 $26.84

Ratios and Supplemental Data 2020 2019 2018 2017 2016 Total net asset value (in 000s) (4) $57,668 $34,659 $29,470 $37,144 $37,066 Number of units outstanding (in 000s) (4) 1,654 1,194 1,258 1,312 1,381 Management expense ratio ("MER") (5) 1.74% 1.73% 1.70% 1.71% 1.69% MER before waivers or absorptions (5) 1.74% 1.73% 1.70% 1.71% 1.69% Trading expense ratio (6) 0.08% 0.09% 0.16% 0.17% 0.16% Portfolio turnover rate (7) 40.84% 32.22% 43.98% 39.30% 39.70% Net asset value per unit (4) $34.86 $29.04 $23.42 $28.30 $26.84

3 HSBC Small Cap Growth Fund

HSBC Small Cap Growth Fund – Institutional have waived or absorbed certain fees and expenses otherwise Series – Net Assets per Unit(1) payable by the Fund. The amount of expenses absorbed or waived Year(s) ended December 31 is at the discretion of and can be terminated at any time by us. (6) The trading expense ratio represents total commissions and other 2020 2019 2018 2017 2016 portfolio transaction costs expressed as an annualized percentage Net assets per unit, beginning of of daily average net asset value during the year. year (2) $31.64 $25.53 $30.88 $28.81 $23.94 (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Increase (decrease) from portfolio advisor manages its portfolio investments. A portfolio operations: turnover rate of 100% is equivalent to the Fund buying and selling Total revenue 0.41 0.55 0.57 0.58 0.52 all of the securities in its portfolio once in the course of the year. Total expenses (0.03) (0.03) (0.02) (0.02) (0.02) The higher the Fund’s portfolio turnover rate in a year, the greater Realized gains (losses) 1.95 2.33 1.34 1.59 1.75 the trading costs payable by the Fund in the year, and the greater Unrealized gains (losses) 1.82 4.63 (5.82) (0.01) 2.99 the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate Total increase (decrease) from and the performance of the Fund. The rate is calculated based on operations (2) $4.15 $7.48 $(3.93) $2.14 $5.24 the lesser of purchases or sales of securities divided by the average Distributions to unitholders: weighted market value of the portfolio securities, excluding short- From net investment income term securities. (excluding dividends) – – – – – From dividends – – – – – Management Fees From capital gains – (1.38) (1.37) – (0.24) For the year ended December 31, 2020, the Fund paid us Return of capital – – – – – management fees of $3,094,875. The management fee for each Total annual distributions (2,3) $– $(1.38) $(1.37) $– $(0.24) series is calculated as a percentage of the daily net asset value Net assets per unit at December for that series. The fees are reduced, where required, so that 31 of year shown (2) $38.61 $31.64 $25.53 $30.88 $28.81 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Ratios and Supplemental Data The Fund’s management fees were used by us to pay costs for 2020 2019 2018 2017 2016 managing the investment portfolio, providing investment Total net asset value (in analysis and recommendations, making investment decisions, 000s) (4) $41,895 $52,278 $42,544 $45,283 $43,930 making brokerage arrangements for the purchase and sale of Number of units the investment portfolio and providing other services. The outstanding (in 000s) (4) 1,085 1,652 1,667 1,467 1,525 management fees also funded commission payments and other Management expense ratio ("MER") (5) 0.10% 0.10% 0.08% 0.07% 0.06% compensation (collectively “distribution costs”) to sales MER before waivers or representatives and registered dealers and brokers, including absorptions (5) 0.10% 0.10% 0.08% 0.07% 0.06% HSBC Investment Funds (Canada) Inc., for units of the Fund Trading expense ratio (6) 0.08% 0.09% 0.16% 0.17% 0.16% bought and held by unitholders. Finally, we used management Portfolio turnover rate (7) 40.84% 32.22% 43.98% 39.30% 39.70% fees to pay for additional marketing and distribution services to Net asset value per unit (4) $38.61 $31.64 $25.53 $30.88 $28.81 the Fund. (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial For the year ended December 31, 2020, approximately 46% of Reporting Standards (“IFRS”). Under IFRS, the net assets per unit the total management fees collected from all HSBC Mutual presented in the financial statements is the same as the net asset Funds were used to fund distribution costs. In comparison, for value calculated for fund pricing purposes. the Fund, such distribution costs represented 38% of the (2) Net assets per unit and distributions per unit are based on the management fees collected. This may vary by series depending actual number of units outstanding for the relevant series at the on the assets invested in each of the series. relevant time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. Past Performance The performance information shown assumes that all (3) Distributions are automatically reinvested in additional units of the distributions made by the Fund in the years shown were Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, (4) This information is provided as at December 31 of the year shown. distribution, optional charges or expenses you may be charged (5) MER is based on total expenses (excluding distributions, outside of the Fund or the effect of any income tax you may commissions and other portfolio transaction costs) for the stated have to pay as a result of your investment in the Fund that year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one would have reduced returns or performance. The performance mutual fund to another and from one series of units to another. We of different fund series may vary for a number of reasons, including differences in management fees and expenses. The Fund’s past performance does not necessarily indicate how it will perform in the future.

4 HSBC Small Cap Growth Fund

Year-by-Year Returns Annual Returns – Institutional Series

Years ended December 31 60% 49.1% The following bar charts show the Fund’s performance for each 40% of the years shown, and illustrate how the Fund’s performance 29.4% changed from year to year. In percentage terms, the bar charts 21.3% 22.0% 20% 17.9% show how much an investment made on the first day of each 7.2% 7.2% 1.4% 4.9% financial year would have grown or decreased by the last day of 0% each financial year. -20% -12.7% Annual Returns – Investor Series -40% 60% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 45.9% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 40% 26.6% 18.7% 19.4% Annual Compound Returns 20% 15.4% Year ended December 31, 2020 4.9% 2.6% 4.9% 0% The following tables show the Fund’s historical annual -0.8% compound total returns for the years indicated, compared with -20% -14.6% the benchmark index, the S&P/TSX SmallCap Index (C$), over the same period. This index provides an investable index for the -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Canadian small cap market. The index is float-adjusted and 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 market-cap weighted and was developed with industry input as the ideal benchmark for those with small cap exposure to the Annual Returns – Premium Series Canadian equity market.

60% 46.7% Investor Series 40% 1 Year 3 Year 5 Year 10 Year 27.3% 20.1% HSBC Small Cap Growth Fund 19.38% 8.87% 9.94% 11.19% 16.0% 19.4% 20% S&P/TSX SmallCap Index (C$) 12.87% 2.28% 8.77% 1.26% 5.5% 3.2% 5.4% 0% Manager Series -0.2% -20% -14.1% 1 Year 3 Year 5 Year 10 Year HSBC Small Cap Growth Fund 20.59% 9.99% 11.09% 12.38% -40% S&P/TSX SmallCap Index (C$) 12.87% 2.28% 8.77% 1.26% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Institutional Series

1 Year 3 Year 5 Year 10 Year Annual Returns – Manager Series HSBC Small Cap Growth Fund 22.01% 11.28% 12.37% 13.65% 60% S&P/TSX SmallCap Index (C$) 12.87% 2.28% 8.77% 1.26% 47.6% 40% Premium Series 27.8% 20.0% 20.6% 20% 16.6% 1 Year 3 Year 5 Year 10 Year 6.1% 6.0% HSBC Small Cap Growth Fund 20.06% 9.49% 10.55% 11.81% 0.3% 3.7% 0% S&P/TSX SmallCap Index (C$) 12.87% 2.28% 8.77% 1.26% (1) Due to the fact that several benchmark indices are only available on -20% -13.7% a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- -40% end date each Fund was in operation. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations section of this report.

5 HSBC Small Cap Growth Fund

Summary of Investment Portfolio As at December 31, 2020

Sector Mix Percentage of NAV

Industrials 23.92% Information Technology 19.39% Real Estate 14.00% Materials 11.14% Financials 9.08% Consumer Discretionary 5.89% Energy 5.35% Health Care 2.56% Communication Services 2.48% Consumer Staples 2.06% Utilities 0.86% Cash & Equivalents 3.27% Total 100.00%

Top 25 Holdings Percentage of NAV

Dye & Durham Ltd. 4.88% People Corp. 3.71% Boyd Group Services Inc. 3.56% Colliers International Group Inc. 3.40% Enghouse Systems Ltd. 3.05% Stella-Jones Inc. 3.00% Richards Packaging Income Fund 2.93% Element Fleet Management Corp. 2.89% Mainstreet Equity Corp. 2.46% The Descartes Systems Group Inc. 2.34% Altus Group Ltd. 2.31% Kinaxis Inc. 2.29% Cogeco Inc. 2.22% Morneau Shepell Inc. 2.10% Calian Group Ltd. 2.04% Jamieson Wellness Inc. 2.02% Richelieu Hardware Ltd. 2.02% Sleep Country Canada Holdings Inc. 2.02% Equitable Group Inc. 1.99% FirstService Corp. 1.97% Savaria Corp. 1.86% North American Contruction Group Ltd. 1.81% GDI Integrated Facility Services Inc. 1.76% MTY Food Group Inc. 1.60% HLS Therapeutics Inc. 1.57% Total of Top 25 Holdings 61.80%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

6 HSBC Small Cap Growth Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC Global Equity Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Global Equity Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Results of Operations Fund; we, us and our refer to HSBC Global Asset Management As of December 31, 2020, the Fund's net assets decreased by (Canada) Limited; and the Fund refers to the HSBC Global 2.9% to $726.8 million from $748.8 million at the end of 2019. Equity Fund. Net withdrawals, partially offset by positive investment We are the manager, trustee and primary investment advisor of performance, resulted in an overall decrease in net asset value. the Fund. We have entered into a sub-advisory agreement with Investment Performance HSBC Global Asset Management (UK) Limited, under which The HSBC Global Equity Fund (Investor Series) rose 1.14% for HSBC Global Asset Management (UK) Limited provides the 12 months ending December 31, 2020, while the investment advice and portfolio management services to the benchmark MSCI World Net Total Return Index (C$) rose Fund. For an explanation of the relationship between us and the 13.87% over the same period. The Fund’s returns are after the sub-advisor, see the section Selection of Sub-Advisors in the deduction of fees and expenses, while the benchmark’s returns Fund’s Simplified Prospectus. do not include any costs of investing. See the Past Performance Introduction section for the returns of other series of the Fund, which may This Annual Management Report of Fund Performance contains vary due to differences in management fees and expenses. financial highlights but does not contain the complete annual Global equity markets gained in 2020 despite the generalized financial statements of the Fund. You may obtain a copy of the sell-off in the first quarter amid the worldwide spread of COVID annual financial statements at your request, at no cost, by 19 and steep deterioration in the global economic outlook. calling us toll-free at 1-888-390-3333, by visiting our website at Markets rebounded in the second quarter and continued their www.assetmanagement.hsbc.ca, by visiting the SEDAR positive performance over the remainder of the year, buoyed by website at www.sedar.com or by writing to us at: unprecedented policy responses from central banks and HSBC Global Asset Management (Canada) Limited finance ministries, the easing of COVID-19 lockdowns, and 3rd Floor, 885 West Georgia Street growing investor optimism. Vancouver, BC V6C 3E8 The Fund underperformed its benchmark in 2020, with asset You may also contact us using one of these methods to request a allocation and stock selection detracting from performance. On copy of the Fund’s interim financial report, proxy voting policies a sector basis, overweight allocations to consumer and procedures, proxy voting disclosure record or quarterly discretionary and communication services coupled with an portfolio disclosure. underweight exposure to real estate contributed to performance. Conversely, overweight allocations to energy, Investment Objective and Strategies industrials and financials and an underweight exposure to The fundamental investment objective of this Fund is to provide information technology weighed on performance. long-term capital growth. On a country basis, overweight allocations to the Netherlands To achieve its objectives, the Fund invests primarily in equities and Sweden and underweight exposures to Australia and and equity-related securities of companies from around the Switzerland contributed to performance. Conversely, world. To maintain a diversified portfolio of holdings, the Fund overweight allocations to France, the United Kingdom and will invest in companies from a broad range of industries. A Spain and an underweight exposure to the US weighed portion of the Fund may be in the form of cash or on performance. cash equivalents. Recent Developments Risk Throughout the period, the Fund continued to follow the HSBC The risks of investing in this Fund remain as discussed in the Economic Scale investment strategy which uses a systematic Simplified Prospectus. During the year, there were no material rebalancing approach that regularly re-evaluates stock weights changes to the Fund that affected the overall risk level of and allocation. The strategy aims to take advantage of excess the Fund. volatility in market prices to add excess return while delivering the equity market premium. This Fund is suitable for investors seeking long-term capital growth from equity securities issued in markets around the The Fund’s investment strategy, however, will change on or world. Investors in this Fund should have a long-term around April 23, 2021 to a proprietary systematic investment investment time horizon and a medium tolerance for risk in process which focuses on risk premia offered by exposure to factors such as value, quality, momentum, low risk, and size. their returns. The strategy seeks to maximize the Fund’s exposure to the highest ranked stocks based on these five factors while

1 HSBC Global Equity Fund minimizing the Fund’s risk. The Fund will continue to be amount of the initial purchase. If you hold units of this Fund managed by the Systematic Equity investment team at HSBC and/or other HSBC Mutual Funds in a registered plan with Global Asset Management (UK) Limited. HSBC Investment Funds (Canada) Inc., they may charge you an annual fee to cover the annual administration costs of the plan. During the period there has been a change in composition to We permit HSBC Investment Funds (Canada) Inc. to collect the Independent Review Committee (the “IRC”). Effective these fees by redeeming sufficient units of the Fund with the March 25, 2020, Ms. Louise Tymocko was appointed to the IRC highest market value in your registered plan. as a member, replacing Mr. William (Bill) Bakk who left as his term of office expired. Ms. Lisa Pankratz also took over as Chair Purchases of Securities Underwritten by a Related Party of the IRC effective March 25, 2020. In addition, effective The Fund may invest in certain securities that are underwritten, February 18, 2021, Ms. Sharon Morrisroe was also appointed to in whole or in part, by entities that are a related party to us. To the IRC as a member, replacing Mr. Neil de Gelder who left proceed with these transactions, the Fund relies on the following the expiry of his term in March of 2021. approval of the Fund’s Independent Review Committee by way Related Party Transactions of Standing Instruction. A condition of this approval is that the We, on behalf of the Fund, or the Fund Manager, may, from transactions are performed in accordance with our policy on time to time, enter into transactions or arrangements with or Purchases of Securities Underwritten by a Related Party. During involving other members of the HSBC Group or other people or the year, the Fund did not invest in any such securities. companies related or connected to us or the Fund. To proceed with the transactions, the Fund relies on the positive Investments in Securities of Related Parties recommendation of the Fund’s Independent Review Committee. A In accordance with Canadian securities legislation and policies condition of this positive recommendation is that the transactions set out by our Independent Review Committee, the Fund may are performed in accordance with our policy on Related Party invest its assets in the securities of companies related to the Transactions. For more general information on persons related Fund’s investment advisor or sub-advisor. During the period, to the Fund and the types of potential transactions, see the the Fund held, purchased or sold shares in HSBC Holdings plc Fund’s Simplified Prospectus. (our ultimate parent company) and Hang Seng Bank, which represented 0.31% and 0.03% of the Fund’s assets, The following is a summary of current transactions and respectively, as at December 31, 2020. arrangements with entities that are related to us or the Fund. Financial Highlights Manager, Trustee and Investment Advisor The following tables show selected key financial information We are the manager, trustee and primary investment advisor of about the Fund and are intended to help you understand the the Fund. As manager, we manage the overall business and operations of the Fund. As trustee, we hold legal title to the Fund’s financial performance for the past five years. This property of the Fund on your behalf. As primary investment information is derived from the Fund’s audited annual financial advisor, we provide investment advice and portfolio statements. The information in the following tables is based on management services to the Fund. We receive a fee from the prescribed regulations, and, as a result, is not expected to add Fund for these services based on assets under management, down due to the increase/decrease in net assets from calculated daily and paid monthly. operations being based on average units outstanding during the year and all other numbers being based on actual units We have entered into a sub-advisory agreement with HSBC outstanding at the relevant point in time. Global Asset Management (UK) Limited (an affiliate), under which HSBC Global Asset Management (UK) Limited provides investment advice and portfolio management services to the Fund. We pay HSBC Global Asset Management (UK) Limited an investment advisory fee from the Fund based on assets under management, calculated daily and paid quarterly. For more information on our ability to hire sub-advisors, see the section Organization and management of the Funds in the Fund’s Simplified Prospectus.

2 HSBC Global Equity Fund

HSBC Global Equity Fund – Investor Series – HSBC Global Equity Fund – Premium Series – Net Assets per Unit(1) Net Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $15.44 $13.73 $15.21 $13.78 $13.20 year (2) $19.78 $17.59 $19.47 $17.65 $16.92 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.34 0.43 0.40 0.38 0.31 Total revenue 0.44 0.55 0.52 0.49 0.41 Total expenses (0.21) (0.22) (0.22) (0.21) (0.18) Total expenses (0.21) (0.22) (0.22) (0.21) (0.18) Realized gains (losses) (0.29) 0.45 0.50 0.54 0.10 Realized gains (losses) (0.40) 0.59 0.65 0.76 0.12 Unrealized gains (losses) 0.24 1.45 (1.48) 1.08 0.41 Unrealized gains (losses) 0.45 1.86 (2.10) 1.19 0.62 Total increase (decrease) from Total increase (decrease) from operations (2) $0.08 $2.11 $(0.80) $1.79 $0.64 operations (2) $0.28 $2.78 $(1.15) $2.23 $0.97 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) – – – – – (excluding dividends) – – – – – From dividends (0.14) (0.28) (0.30) (0.25) (0.11) From dividends (0.24) (0.42) (0.39) (0.37) (0.21) From capital gains – (0.12) (0.40) (0.12) – From capital gains – (0.18) (0.54) (0.18) – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $(0.14) $(0.40) $(0.70) $(0.37) $(0.11) Total annual distributions (2,3) $(0.24) $(0.60) $(0.93) $(0.55) $(0.21) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $15.48 $15.44 $13.73 $15.21 $13.78 31 of year shown (2) $19.82 $19.78 $17.59 $19.47 $17.65

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net asset value (in 000s) (4) $41,829 $45,995 $43,360 $41,687 $39,123 000s) (4) $20,327 $19,998 $16,657 $11,329 $6,305 Number of units Number of units outstanding (in 000s) (4) 2,702 2,978 3,158 2,741 2,839 outstanding (in 000s) (4) 1,026 1,011 947 582 357 Management expense ratio Management expense ratio ("MER") (5) 1.47% 1.46% 1.43% 1.46% 1.44% ("MER") (5) 1.14% 1.14% 1.10% 1.15% 1.12% MER before waivers or MER before waivers or absorptions (5) 1.47% 1.46% 1.43% 1.46% 1.44% absorptions (5) 1.14% 1.14% 1.10% 1.15% 1.12% Trading expense ratio (6) 0.02% 0.02% 0.03% 0.02% 0.06% Trading expense ratio (6) 0.02% 0.02% 0.03% 0.02% 0.06% Portfolio turnover rate (7) 32.84% 18.44% 30.49% 22.34% 30.23% Portfolio turnover rate (7) 32.84% 18.44% 30.49% 22.34% 30.23% Net asset value per unit (4) $15.48 $15.44 $13.73 $15.21 $13.78 Net asset value per unit (4) $19.82 $19.78 $17.59 $19.47 $17.65

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) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $15.79 $14.09 $15.68 $14.26 $13.76 year (2) $18.52 $16.46 $18.25 $16.54 $15.85 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.35 0.44 0.40 0.40 0.32 Total revenue 0.41 0.52 0.49 0.46 0.38 Total expenses (0.18) (0.18) (0.21) (0.20) (0.20) Total expenses (0.02) (0.02) (0.01) (0.02) (0.01) Realized gains (losses) (0.28) 0.47 0.48 0.64 0.14 Realized gains (losses) (0.35) 0.54 0.59 0.65 0.15 Unrealized gains (losses) 0.34 1.46 (1.29) 0.67 0.51 Unrealized gains (losses) 0.36 1.75 (1.75) 1.35 1.12 Total increase (decrease) from Total increase (decrease) from operations (2) $0.23 $2.19 $(0.62) $1.51 $0.77 operations (2) $0.40 $2.79 $(0.68) $2.44 $1.64 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) – – – – – (excluding dividends) – – – – – From dividends (0.24) (0.37) (0.33) (0.32) (0.20) From dividends (0.42) (0.53) (0.46) (0.47) (0.36) From capital gains – (0.16) (0.46) (0.15) – From capital gains – (0.22) (0.63) (0.23) – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $(0.24) $(0.53) $(0.79) $(0.47) $(0.20) Total annual distributions (2,3) $(0.42) $(0.75) $(1.09) $(0.70) $(0.36) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $15.76 $15.79 $14.09 $15.68 $14.26 31 of year shown (2) $18.56 $18.52 $16.46 $18.25 $16.54

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net asset value 000s) (4) $40 $46 $38 $63 $36 (in 000s) (4) $664,570 $682,756 $619,429 $628,673 $575,413 Number of units outstanding Number of units (in 000s) (4) 3 3 3 4 2 outstanding (in Management expense ratio 000s) (4) 35,803 36,871 37,628 34,441 34,781 ("MER") (5) 1.24% 1.18% 1.34% 1.32% 1.50% Management MER before waivers or expense ratio absorptions (5) 2.90% 3.67% 3.07% 2.70% 3.67% ("MER") (5) 0.10% 0.10% 0.07% 0.09% 0.07% Trading expense ratio (6) 0.02% 0.02% 0.03% 0.02% 0.06% MER before waivers Portfolio turnover rate (7) 32.84% 18.44% 30.49% 22.34% 30.23% or absorptions (5) 0.10% 0.10% 0.07% 0.09% 0.07% Net asset value per unit (4) $15.76 $15.79 $14.09 $15.68 $14.26 Trading expense

ratio (6) 0.02% 0.02% 0.03% 0.02% 0.06% Portfolio turnover rate (7) 32.84% 18.44% 30.49% 22.34% 30.23% Net asset value per unit (4) $18.56 $18.52 $16.46 $18.25 $16.54 (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial Reporting Standards (“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 time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. (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 December 31 of the year shown. (5) MER is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one

4 HSBC Global Equity Fund

20% 15.4% Management Fees 14.1% 13.5% 13.0% For the year ended December 31, 2020, the Fund paid us 9.8% 10% 5.2% management fees of $695,663. The management fee for each 1.1% 0% series is calculated as a percentage of the daily net asset value for that series. The fees are reduced, where required, so that -10% -6.6% -5.0% these fees do not duplicate fees payable by mutual funds in -20% which the Fund invests for the same service. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 The Fund’s management fees were used by us to pay costs for managing the investment portfolio, providing investment Annual Returns – Premium Series analysis and recommendations, making investment decisions, 40% making brokerage arrangements for the purchase and sale of 32.3% 30% the investment portfolio and providing other services. The management fees also funded commission payments and other 20% 15.8% 14.7% 13.9% 13.3% compensation (collectively “distribution costs”) to sales 10.4% 10% 5.5% representatives and registered dealers and brokers, including 1.5% HSBC Investment Funds (Canada) Inc., for units of the Fund 0% bought and held by unitholders. Finally, we used management -10% -6.1% -4.7% 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 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 For the year ended December 31, 2020, approximately 46% of the total management fees collected from all HSBC Mutual Annual Returns – Manager Series

Funds were used to fund distribution costs. In comparison, for 40% the Fund, such distribution costs represented 43% of the 33.1% management fees collected. This may vary by series depending 30% on the assets invested in each of the series. 20% 15.4% 15.7% 11.1% 13.2% 13.2% 10% 5.1% Past Performance 1.4% The performance information shown assumes that all 0% distributions made by the Fund in the years shown were -10% -5.5% -4.9% reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 distribution, optional charges or expenses you may be charged 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 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 performance

5 HSBC Global Equity Fund

Annual Returns – Institutional Series Summary of Investment Portfolio

As at December 31, 2020 50% 40% 34.9% 30% Sector Mix Percentage 20% 16.9% 15.3% 14.5% 17.0% 12.6% of NAV 10% 6.6% 2.5% Information Technology 15.83% 0% Financials 15.05% -10% -4.2% -3.7% Industrials 12.72% Consumer Discretionary 12.11% -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Health Care 10.70% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Consumer Staples 8.84% Communication Services 8.80% Annual Compound Returns Materials 5.14% Year ended December 31, 2020 Energy 3.94% The following tables show the Fund’s historical annual Utilities 3.40% Real Estate 1.98% compound total returns for the years indicated, compared with Investment Funds 1.15% the benchmark index, the MSCI World Net Index (in Canadian Cash & Equivalents 0.34% dollars), over the same period. The MSCI World Net Total Total 100.00% Return Index is an international index that measures the performance of stocks traded in developed markets including Europe, Australia, the Far East, the US, Canada and South Geographic Mix Africa. This index is tracked in US dollars and was converted to Percentage of NAV Canadian dollars.

United States 53.22% Investor Series Japan 9.60% United Kingdom 5.52% 1 Year 3 Year 5 Year 10 Year France 5.18% HSBC Global Equity Fund 1.14% 3.48% 5.66% 8.70% Germany 4.86% MSCI World Net Total Return Index (C$) 13.87% 11.16% 10.27% 12.63% Canada 3.31% Manager Series Switzerland 3.04% Netherlands 2.24% 1 Year 3 Year 5 Year 10 Year Australia 1.98% HSBC Global Equity Fund 1.37% 3.70% 5.81% 9.26% Spain 1.43% MSCI World Net Total Return Index (C$) 13.87% 11.16% 10.27% 12.63% Ireland 1.31%

Sweden 1.27% Institutional Series Italy 1.06% 1 Year 3 Year 5 Year 10 Year Hong Kong 0.83% Denmark 0.71% HSBC Global Equity Fund 2.53% 4.92% 7.12% 10.71% Singapore 0.58% MSCI World Net Total Return Index (C$) 13.87% 11.16% 10.27% 12.63% Finland 0.47% Premium Series Belgium 0.46% Norway 0.33% 1 Year 3 Year 5 Year 10 Year Cayman Islands 0.18% HSBC Global Equity Fund 1.45% 3.84% 6.01% 9.15% Luxembourg 0.18% MSCI World Net Total Return Index (C$) 13.87% 11.16% 10.27% 12.63% Austria 0.17% (1) Due to the fact that several benchmark indices are only available on Israel 0.16% a monthly basis, the performance data for the HSBC Funds and the Jersey 0.12% benchmark indices are calculated using values from the first month- Portugal 0.12% end date each Fund was in operation. Bermuda 0.09% (2) For investment commentary and relative performance of the Fund New Zealand 0.06% compared to its benchmark, please refer to the Results of Operations Isle of Man 0.02% section of this report. Papua New Guinea 0.01% Investment Funds 1.15% Cash & Equivalents 0.34% Total 100.00%

6 HSBC Global Equity Fund

Top 25 Holdings Percentage of NAV

Apple Inc. 2.73% Microsoft Corp. 1.81% Amazon.com Inc. 1.61% Alphabet Inc. 1.19% Walmart Inc. 1.02% JPMorgan Chase & Co. 0.78% Facebook Inc. 0.71% Bank of America Corp. 0.60% Berkshire Hathaway Inc., Class B 0.60% Johnson & Johnson 0.60% AT&T Inc. 0.59% iShares Core S&P 500 ETF 0.59% The Walt Disney Co. 0.57% iShares MSCI EAFE ETF 0.55% Verizon Communications Inc. 0.53% Nestlé SA 0.52% Tesla Inc. 0.52% UnitedHealth Group Inc. 0.51% Wells Fargo & Co. 0.51% General Electric Co. 0.50% The Home Depot Inc. 0.49% The Procter & Gamble Co. 0.48% Royal Dutch Shell PLC 0.45% Toyota Motor Corp. 0.44% Volkswagen AG, Preferred 0.43% Total of Top 25 Holdings 19.33%

7 HSBC Global Equity Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC Global Equity Volatility Focused Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Global Equity Volatility Focused Fund

To achieve its objectives, the Fund invests primarily in equities Country and sector allocation effects were residual to stock and equity-related securities of companies located around the selection. At the sector level, allocation effects were negative world. Units of the Fund are only available in US dollars. with the Fund’s underweight exposure to consumer discretionary, and country allocation was negative with the Risk Fund’s overweight exposure to the UK. The risks of investing in the Fund remain as discussed in the During the period, the Fund added holdings in companies Simplified Prospectus. During the year, there were no material including Ecolab, Fastenal, Infineon Technologies and changes to the Fund that affected the overall risk level of Kingspan, and sold holdings in 3M, Citigroup, Deutsche the Fund. Wohnen, Masco and Otsuka Holdings. This Fund is suitable for investors who have U.S. dollars to invest and are seeking long-term capital growth from equity Recent Developments securities issued in markets around the world. Investors in this COVID-19 is still a very significant challenge for the global Fund should have a long-term investment time horizon and a economy, but global growth prospects have materially medium tolerance for risk in their returns. improved on the back of recent vaccine developments. Substantial policy easing has reduced downside tail risks, while global geopolitical uncertainty is beginning to edge lower.

1 HSBC Global Equity Volatility Focused Fund

However, investors should be aware of the risks. There is still Distribution Services uncertainty about the timeline around vaccine rollouts and, The Fund is distributed through us, HSBC Investment Funds therefore, the speed of the recovery. Policy mistakes are also (Canada) Inc. (our wholly owned subsidiary and affiliate) and possible, including a premature withdrawal of fiscal support. HSBC Securities (Canada) Inc. (an affiliate) directly or through Higher government bond yields also pose a risk to its division, HSBC InvestDirect. We pay distribution and current pricing. servicing fees to them based on the amount of assets held in the investor’s account, and additionally, in some cases, on the During the period there has been a change in composition to amount of the initial purchase. If you hold units of this Fund the Independent Review Committee (the “IRC”). Effective and/or other HSBC Mutual Funds in a registered plan with March 25, 2020, Ms. Louise Tymocko was appointed to the IRC HSBC Investment Funds (Canada) Inc., they may charge you an as a member, replacing Mr. William (Bill) Bakk who left as his annual fee to cover the annual administration costs of the plan. term of office expired. Ms. Lisa Pankratz also took over as Chair We permit HSBC Investment Funds (Canada) Inc. to collect of the IRC effective March 25, 2020. In addition, effective these fees by redeeming sufficient units of the Fund with the February 18, 2021, Ms. Sharon Morrisroe was also appointed to highest market value in your registered plan. the IRC as a member, replacing Mr. Neil de Gelder who left following the expiry of his term in March of 2021. Financial Highlights Related Party Transactions The following tables show selected key financial information about the Fund and are intended to help you understand the We, on behalf of the Fund, or the Fund Manager, may, from Fund’s financial performance for the past five years. This time to time, enter into transactions or arrangements with or information is derived from the Fund’s audited annual financial involving other members of the HSBC Group or other people or statements. The information in the following tables is based on companies related or connected to us or the Fund. To proceed prescribed regulations, and, as a result, is not expected to add with the transactions, the Fund relies on the positive down due to the increase/decrease in net assets from recommendation of the Fund’s Independent Review Committee. A operations being based on average units outstanding during the condition of this positive recommendation is that the transactions year and all other numbers being based on actual units are performed in accordance with our policy on Related Party outstanding at the relevant point in time. Transactions. For more general information on persons related to the Fund and the types of potential transactions, see the All figures are stated in US dollars. Fund’s Simplified Prospectus. The following is a summary of current transactions and HSBC Global Equity Volatility Focused Fund – arrangements with entities that are related to us or the Fund. Investor Series – Net Assets per Unit(1) Year(s) ended December 31 Manager, Trustee and Investment Advisor 2020 2019 2018 2017 2016 We are the manager, trustee and primary investment advisor of the Fund. As manager, we manage the overall business and Net assets per unit, beginning of year (2) $13.24 $10.68 $11.97 $10.37 $9.94 operations of the Fund. HSBC Bank Canada has provided seed capital to the Fund and has received units of the Fund in Increase (decrease) from operations: exchange. During the year, this seed capital investment was Total revenue 0.34 0.36 0.43 0.27 0.25 redeemed and none remains outstanding at year-end. As Total expenses (0.29) (0.28) (0.28) (0.27) (0.24) trustee, we hold legal title to the property of the Fund on your Realized gains (losses) (0.16) 0.20 (0.16) 0.48 (0.10) Unrealized gains (losses) 1.52 2.32 (1.40) 1.13 0.70 behalf. As primary investment advisor, we provide investment advice and portfolio management services to the Fund. We Total increase (decrease) from operations (2) $1.41 $2.60 $(1.41) $1.61 $0.61 receive a fee from the Fund for these services based on assets under management, calculated daily and paid monthly. Distributions to unitholders: From net investment income We have entered into a sub-advisory agreement with HSBC (excluding dividends) – – – – – From dividends (0.04) (0.08) (0.12) – – Global Asset Management (UK) Limited (an affiliate), under From capital gains – – – – – which HSBC Global Asset Management (UK) Limited provides Return of capital – – – – – investment advice and portfolio management services to the Total annual distributions (2,3) $(0.04) $(0.08) $(0.12) $– $– Fund. We pay HSBC Global Asset Management (UK) Limited an Net assets per unit at December investment advisory fee from the Fund based on assets under 31 of year shown (2) $14.66 $13.24 $10.68 $11.97 $10.37 management, calculated daily and paid quarterly. For more information on our ability to hire sub-advisors, see the section Organization and Management of the HSBC Mutual Funds in the Fund’s Simplified Prospectus.

2 HSBC Global Equity Volatility Focused Fund

Ratios and Supplemental Data HSBC Global Equity Volatility Focused Fund – (1) 2020 2019 2018 2017 2016 Manager Series – Net Assets per Unit Year(s) ended December 31 Total net asset value (in 000s) (4) $18,680 $16,647 $13,151 $8,314 $3,648 2020** 2019** 2018** 2017 2016 Number of units Net assets per unit, beginning of outstanding (in 000s) (4) 1,274 1,257 1,231 695 352 year (2) $– $– $11.98 $10.31 $9.84 Management expense ratio ("MER") (5) 2.35% 2.33% 2.36% 2.43% 2.37% Increase (decrease) from MER before waivers or operations: absorptions (5) 2.35% 2.33% 2.36% 2.49% 2.60% Total revenue – – 0.21 0.11 0.08 Trading expense ratio (6) 0.06% 0.05% 0.09% 0.26% 0.23% Total expenses – – – – – Portfolio turnover rate (7) 38.40% 34.18% 39.60% 102.98% 85.90% Realized gains (losses) – – (0.01) 0.44 (0.11) Net asset value per unit (4) $14.66 $13.24 $10.68 $11.97 $10.37 Unrealized gains (losses) – – (0.20) 1.42 0.03

Total increase (decrease) from operations (2) $– $– $– $1.97 $– HSBC Global Equity Volatility Focused Fund – (1) Distributions to unitholders: Premium Series – Net Assets per Unit From net investment income Year(s) ended December 31 (excluding dividends) – – – – – 2020 2019 2018 2017 2016 From dividends – – – (0.10) (0.12) From capital gains – – – – – Net assets per unit, beginning of Return of capital – – – – – year (2) $13.27 $10.70 $12.00 $10.36 $9.94 Total annual distributions (2,3) $– $– $– $(0.10) $(0.12) Increase (decrease) from Net assets per unit at December operations: 31 of year shown (2) $– $– $– $11.98 $10.31 Total revenue 0.33 0.36 0.43 0.26 0.24 Total expenses (0.22) (0.21) (0.21) (0.21) (0.18) Realized gains (losses) (0.15) 0.20 (0.16) 0.45 (0.10) Unrealized gains (losses) 1.29 2.38 (1.41) 1.25 0.64 Ratios and Supplemental Data Total increase (decrease) from 2020** 2019** 2018** 2017 2016 operations (2) $1.25 $2.73 $(1.35) $1.75 $0.60 Total net asset value (in * * Distributions to unitholders: 000s) (4) $– $– $– $– $– From net investment income Number of units outstanding * * (excluding dividends) – – – – – (in 000s) (4) – – – – – From dividends (0.12) (0.15) (0.19) (0.03) (0.06) Management expense ratio From capital gains – – – – – ("MER") (5) – – – 0.00% 0.00% Return of capital – – – – – MER before waivers or absorptions (5) – – – 0.00% 0.00% Total annual distributions (2,3) $(0.12) $(0.15) $(0.19) $(0.03) $(0.06) Trading expense ratio (6) – – 0.09% 0.26% 0.23% Net assets per unit at December Portfolio turnover rate (7) – – 39.60% 102.98% 85.90% 31 of year shown (2) $14.69 $13.27 $10.70 $12.00 $10.36 Net asset value per unit (4) $– $– $– $11.98 $10.31

Total net asset value (in 000s) (4) $81,528 $74,191 $73,000 $43,618 $9,236 Number of units outstanding (in 000s) (4) 5,550 5,591 6,821 3,635 892 Management expense ratio ("MER") (5) 1.78% 1.76% 1.79% 1.85% 1.80% MER before waivers or absorptions (5) 1.78% 1.76% 1.79% 1.89% 2.01% Trading expense ratio (6) 0.06% 0.05% 0.09% 0.26% 0.23% Portfolio turnover rate (7) 38.40% 34.18% 39.60% 102.98% 85.90% Net asset value per unit (4) $14.69 $13.27 $10.70 $12.00 $10.36

3 HSBC Global Equity Volatility Focused Fund

HSBC Global Equity Volatility Focused Fund – have waived or absorbed certain fees and expenses otherwise Institutional Series – Net Assets per Unit(1) payable by the Fund. The amount of expenses absorbed or waived Year(s) ended December 31 is at the discretion of and can be terminated at any time by us. (6) The trading expense ratio represents total commissions and other 2020 2019 2018 2017 2016 portfolio transaction costs expressed as an annualized percentage Net assets per unit, beginning of of daily average net asset value during the year. year (2) $13.20 $10.65 $11.98 $10.41 $9.98 (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Increase (decrease) from portfolio advisor manages its portfolio investments. A portfolio operations: turnover rate of 100% is equivalent to the Fund buying and selling Total revenue 0.33 0.37 0.42 0.26 0.25 all of the securities in its portfolio once in the course of the year. Total expenses (0.02) (0.02) (0.02) (0.02) (0.02) The higher the Fund’s portfolio turnover rate in a year, the greater Realized gains (losses) (0.14) 0.25 (0.12) 0.38 (0.14) the trading costs payable by the Fund in the year, and the greater Unrealized gains (losses) 1.72 2.34 (1.07) 1.36 0.72 the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate Total increase (decrease) from and the performance of the Fund. The rate is calculated based on operations (2) $1.89 $2.94 $(0.79) $1.98 $0.81 the lesser of purchases or sales of securities divided by the average Distributions to unitholders: weighted market value of the portfolio securities, excluding short- From net investment income term securities. (excluding dividends) – – – – – From dividends (0.36) (0.37) (0.39) (0.30) (0.23) Management Fees From capital gains – – – – – For the year ended December 31, 2020, the Fund paid us Return of capital – – – – – management fees of $1,422,739. The management fee for each Total annual distributions (2,3) $(0.36) $(0.37) $(0.39) $(0.30) $(0.23) series is calculated as a percentage of the daily net asset value Net assets per unit at December for that series. The fees are reduced, where required, so that 31 of year shown (2) $14.61 $13.20 $10.65 $11.98 $10.41 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Ratios and Supplemental Data The Fund’s management fees were used by us to pay costs for 2020 2019 2018 2017 2016 managing the investment portfolio, providing investment Total net asset value (in analysis and recommendations, making investment decisions, 000s) (4) $10,356 $7,648 $3,728 $5,093 $7,146 making brokerage arrangements for the purchase and sale of Number of units the investment portfolio and providing other services. The outstanding (in 000s) (4) 709 579 350 425 687 management fees also funded commission payments and other Management expense ratio ("MER") (5) 0.19% 0.18% 0.20% 0.21% 0.22% compensation (collectively “distribution costs”) to sales MER before waivers or representatives and registered dealers and brokers, including absorptions (5) 0.19% 0.18% 0.20% 0.29% 0.42% HSBC Investment Funds (Canada) Inc., for units of the Fund Trading expense ratio (6) 0.06% 0.05% 0.09% 0.26% 0.23% bought and held by unitholders. Finally, we used management Portfolio turnover rate (7) 38.40% 34.18% 39.60% 102.98% 85.90% fees to pay for additional marketing and distribution services to Net asset value per unit (4) $14.61 $13.20 $10.65 $11.98 $10.41 the Fund. (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial For the year ended December 31, 2020, approximately 46% of Reporting Standards (“IFRS”). Under IFRS, the net assets per unit the total management fees collected from all HSBC Mutual presented in the financial statements is the same as the net asset Funds were used to fund distribution costs. In comparison, for value calculated for fund pricing purposes. the Fund, such distribution costs represented 36% of the (2) Net assets per unit and distributions per unit are based on the management fees collected. This may vary by series depending actual number of units outstanding for the relevant series at the on the assets invested in each of the series. relevant time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. Past Performance The performance information shown assumes that all (3) Distributions are automatically reinvested in additional units of the distributions made by the Fund in the years shown were Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, (4) This information is provided as at December 31 of the year shown. distribution, optional charges or expenses you may be charged (5) MER is based on total expenses (excluding distributions, outside of the Fund or the effect of any income tax you may commissions and other portfolio transaction costs) for the stated have to pay as a result of your investment in the Fund that year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one would have reduced returns or performance. The performance mutual fund to another and from one series of units to another. We of different fund series may vary for a number of reasons, including differences in management fees and expenses. The Fund’s past performance does not necessarily indicate how it will perform in the future.

4 HSBC Global Equity Volatility Focused Fund

Year-by-Year Returns Annual Returns – Institutional Series

Years ended December 31 40% The following bar charts show the Fund’s performance for each 30% 27.4% of the years shown, and illustrate how the Fund’s performance changed from year to year. In percentage terms, the bar charts 20% 18.0% 13.5% show how much an investment made on the first day of each 10% 6.6% financial year would have grown or decreased by the last day of each financial year. 0% -10% Annual Returns – Investor Series -7.8% -20% 40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2016 2017 2018 2019 2020 30% 24.7%

20% 15.5% Annual Compound Returns 11.0% 10% Year ended December 31, 2020 4.3% The following tables show the Fund’s historical annual 0% compound total returns for the years indicated, compared with -10% the benchmark index over the same period. The Fund’s -9.7% benchmark is the MSCI All Country World Net Index (ACWI) (in -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 US dollars). The MSCI ACWI captures large-cap and mid-cap 2016 2017 2018 2019 2020 representation across developed-market and emerging- market countries.

Annual Returns – Premium Series Investor Series 40% Since 30% 25.4% 1 Year 3 Year 5 Year Inception 20% 16.2% HSBC Global Equity Volatility 11.7% Focused Fund 11.04% 7.73% 8.53% 7.84% 10% MSCI ACWI Net (US$) 16.25% 10.06% 12.26% 11.25% 4.9% 0% Institutional Series -10% -9.2% Since 1 Year 3 Year 5 Year Inception -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 HSBC Global Equity Volatility 2016 2017 2018 2019 2020 Focused Fund 13.47% 10.07% 10.92% 10.19% MSCI ACWI Net (US$) 16.25% 10.06% 12.26% 11.25%

Annual Returns – Manager Series Premium Series 40% Since 30% 1 Year 3 Year 5 Year Inception 20% 17.2% HSBC Global Equity Volatility Focused Fund 11.67% 8.34% 9.15% 8.44% 10% 6.0% MSCI ACWI Net (US$) 16.25% 10.06% 12.26% 11.25% 0% (1) Due to the fact that several benchmark indices are only available on a monthly basis, the performance data for the HSBC Funds and the -10% benchmark indices are calculated using values from the first month- end date each Fund was in operation. -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 (2) For investment commentary and relative performance of the Fund 2016 2017 2018* 2019* 2020* compared to its benchmark, please refer to the Results of Operations section of this report. * The Manager Series was fully redeemed during 2018. In the subse quent years, there were no unitholders for the full calendar year; however, it remains in offer as at period-end.

5 HSBC Global Equity Volatility Focused Fund

Summary of Investment Portfolio Geographic Mix As at December 31, 2020 Percentage

of NAV

Singapore 1.02% Sector Mix Belgium 0.94% Percentage Indonesia 0.37% of NAV Investment Funds 0.47% Information Technology 24.27% Cash & Equivalents -0.52% Industrials 16.25% Total 100.00%

Financials 14.46% Health Care 11.27% Consumer Staples 7.81% Top 25 Holdings Communication Services 7.37% Percentage Utilities 6.28% of NAV Consumer Discretionary 4.95% Apple Inc. 3.54% Materials 4.51% The Walt Disney Co. 3.15% Energy 2.60% Infineon Technologies AG 2.83% Investment Funds 0.47% Capgemini SE 2.70% Real Estate 0.28% Ferguson PLC 2.60% Cash & Equivalents -0.52% IQVIA Holdings Inc. 2.55% Total 100.00% Microsoft Corp. 2.52% Accenture PLC 2.51% Geographic Mix Energias de Portugal SA 2.46% Orsted A/S 2.46% Percentage UnitedHealth Group Inc. 2.33% of NAV Brenntag AG 2.29% United States 43.22% The Home Depot Inc. 2.23% United Kingdom 10.13% Tokyo Electron Ltd. 2.22% Germany 8.65% Nestlé SA 2.18% Japan 5.94% Muenchener Rueckversicherungs-Gesellschaft AG France 4.18% in Muenchen 2.14% Switzerland 3.77% Johnson & Johnson 2.11% South Korea 3.35% BHP Group Ltd. 2.05% Jersey 2.60% Rentokil Initial PLC 2.01% Hong Kong 2.50% Visa Inc. 2.00% Denmark 2.46% Fastenal Co. 1.83% Portugal 2.46% Samsung Electronics Co., Ltd. 1.80% Netherlands 2.42% Wolters Kluwer NV 1.68% Australia 2.05% Kingspan Group PLC 1.66% Ireland 1.66% Compass Group PLC 1.64% Thailand 1.19% Total of Top 25 Holdings 57.49% China 1.14%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

6 HSBC Global Equity Volatility Focused Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC U.S. Equity Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC U.S. Equity Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Results of Operations Fund; we, us and our refer to HSBC Global Asset Management As of December 31, 2020, the Fund's net assets increased by (Canada) Limited; and the Fund refers to the HSBC 28.8% to $311.6 million from $241.9 million at the end of 2019. U.S. Equity Fund. Net contributions and positive investment performance resulted We are the manager, trustee and primary investment advisor of in an overall increase in net asset value. the Fund. We have entered into a sub-advisory agreement with Investment Performance Los Angeles Capital Management and Equity Research, Inc., The HSBC U.S. Equity Fund (Investor Series) rose 18.20% for under which Los Angeles Capital Management and Equity the 12 months ending December 31, 2020, while the Research, Inc. provides investment advice and portfolio benchmark Russell 1000 Total Return Index (C$) rose 18.84% management services to the Fund. For an explanation of the over the same period. The Fund’s returns are after the relationship between us and the sub-advisor, see the section deduction of fees and expenses, while the benchmark’s returns Selection of Sub-Advisors in the Fund’s Simplified Prospectus. do not include any costs of investing. See the Past Performance Introduction section for the returns of other series of the Fund, which may This Annual Management Report of Fund Performance contains vary due to differences in management fees and expenses. financial highlights but does not contain the complete annual The Fund’s industry tilts and fundamental factor bets added to financial statements of the Fund. You may obtain a copy of the returns. Within industries, overweight positions to technology- annual financial statements at your request, at no cost, by oriented stocks contributed to performance, as did positions in calling us toll-free at 1-888-390-3333, by visiting our website at retailing and health-care equipment and services. www.assetmanagement.hsbc.ca, by visiting the SEDAR The Fund gained positive returns from tilts away from valuation website at www.sedar.com or by writing to us at: factors such as appraisal (intrinsic value) and dividend yield, as HSBC Global Asset Management (Canada) Limited well as from companies with higher pension risk. The Fund 3rd Floor, 885 West Georgia Street benefited from overweight positions to companies with strong Vancouver, BC V6C 3E8 peer momentum (where economic linkages are not captured by traditional sector groupings). You may also contact us using one of these methods to request a copy of the Fund’s interim financial report, proxy voting policies Detractions from performance came from not holding positions and procedures, proxy voting disclosure record or quarterly in more speculative firms with strong long-term growth portfolio disclosure. prospects. The Fund’s smaller cap tilt within the index impacted the portfolio negatively as larger market cap securities were Investment Objective and Strategies rewarded over the period. The fundamental investment objective of this Fund is to achieve long-term capital growth. Recent Developments Over the year, the Fund reduced its underweight positions to To achieve its objectives, the Fund invests primarily in US securities with value-oriented characteristics such as appraisal companies diversified across industry sectors. The Fund also value, higher-yielding stocks, earnings yield and book-to-price. invests in companies based outside of the US if their securities It also reduced its overweight positions to companies with are listed on a US exchange (including depositary receipts or stronger cash earnings, positive analyst insight and higher other equity-linked securities) and they are owned or controlled expected earnings growth. by US interests, or where a significant portion of the earnings, The portfolio management team shifted into the consumer production facilities, turnover, assets or investments of such staples, retail and technology sectors and out of biotechnology, companies are based in or derived from the US. A portion of consumer cyclicals and capital goods. the Fund may be in the form of cash or cash equivalents. Looking ahead, while fundamental momentum continues to Risk support higher-quality growth assets, the negative sentiment The risks of investing in the Fund remain as discussed in the for valuation is moderating in light of massive stimulus efforts Simplified Prospectus. During the year, there were no material that have encouraged risk-taking and longer-term investing. changes to the Fund that affected the overall risk level of During the period there has been a change in composition to the Fund. the Independent Review Committee (the “IRC”). Effective This Fund is suitable for investors who want to achieve long March 25, 2020, Ms. Louise Tymocko was appointed to the IRC as a member, replacing Mr. William (Bill) Bakk who left as his term capital growth, have a long-term investment time horizon term of office expired. Ms. Lisa Pankratz also took over as Chair and have a medium tolerance for risk in their returns. of the IRC effective March 25, 2020. In addition, effective

1 HSBC U.S. Equity Fund

February 18, 2021, Ms. Sharon Morrisroe was also appointed to HSBC U.S. Equity Fund – Investor Series – Net the IRC as a member, replacing Mr. Neil de Gelder who left Assets per Unit(1) following the expiry of his term in March of 2021. Year(s) ended December 31 2020 2019 2018 2017 2016 Related Party Transactions Net assets per unit, beginning of We, on behalf of the Fund, or the Fund Manager, may, from year (2) $37.33 $31.36 $32.73 $31.43 $29.96 time to time, enter into transactions or arrangements with or Increase (decrease) from involving other members of the HSBC Group or other people or operations: companies related or connected to us or the Fund. To proceed Total revenue 0.79 0.53 0.51 0.67 0.80 with the transactions, the Fund relies on the positive Total expenses (0.88) (0.80) (0.78) (0.73) (0.66) recommendation of the Fund’s Independent Review Committee. A Realized gains (losses) 1.04 2.01 2.36 1.66 3.24 Unrealized gains (losses) 5.82 4.70 (1.70) 0.33 (1.27) condition of this positive recommendation is that the transactions Total increase (decrease) from are performed in accordance with our policy on Related Party operations (2) $6.77 $6.44 $0.39 $1.93 $2.11 Transactions. For more general information on persons related Distributions to unitholders: to the Fund and the types of potential transactions, see the From net investment income Fund’s Simplified Prospectus. (excluding dividends) – – – – – From dividends – – – (0.08) (0.21) The following is a summary of current transactions and From capital gains – (0.47) (1.67) (0.58) (0.56) arrangements with entities that are related to us or the Fund. Return of capital – – – – – Total annual distributions (2,3) $– $(0.47) $(1.67) $(0.66) $(0.77) Manager, Trustee and Investment Advisor Net assets per unit at December We are the manager, trustee and primary investment advisor of 31 of year shown (2) $44.12 $37.33 $31.36 $32.73 $31.43 the Fund. As manager, we manage the overall business and operations of the Fund. As trustee, we hold legal title to the property of the Fund on your behalf. As primary investment Ratios and Supplemental Data advisor, we provide investment advice and portfolio 2020 2019 2018 2017 2016 management services to the Fund. We receive a fee from the Total net asset value Fund for these services based on assets under management, (in 000s) (4) $175,876 $152,316 $131,823 $136,364 $140,326 calculated daily and paid monthly. Number of units outstanding (in 000s) (4) 3,986 4,080 4,204 4,166 4,465 Distribution Services Management The Fund is distributed through us, HSBC Investment Funds expense ratio (Canada) Inc. (our wholly owned subsidiary and affiliate) and ("MER") (5) 2.27% 2.27% 2.26% 2.26% 2.25% HSBC Securities (Canada) Inc. (an affiliate) directly or through MER before waivers or absorptions (5) 2.27% 2.27% 2.26% 2.26% 2.25% its division, HSBC InvestDirect. We pay distribution and Trading expense servicing fees to them based on the amount of assets held in ratio (6) 0.02% 0.03% 0.04% 0.04% 0.05% the investor’s account, and additionally, in some cases, on the Portfolio turnover amount of the initial purchase. If you hold units of this Fund rate (7) 45.19% 75.81% 98.65% 94.02% 90.70% and/or other HSBC Mutual Funds in a registered plan with Net asset value per unit (4) $44.12 $37.33 $31.36 $32.73 $31.43 HSBC Investment Funds (Canada) Inc., they may charge you an annual 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 market value in your registered plan. Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund’s financial performance for the past five years. This information is derived from the Fund’s audited annual financial statements. The information in the following tables is based on prescribed regulations, and, as a result, is not expected to add down due to the increase/decrease in net assets from operations being based on average units outstanding during the year and all other numbers being based on actual units outstanding at the relevant point in time.

2 HSBC U.S. Equity Fund

HSBC U.S. Equity Fund – Premium Series – Net HSBC U.S. Equity Fund – Manager Series – Net Assets per Unit(1) Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $30.31 $25.36 $26.36 $25.27 $24.06 year (2) $24.53 $20.52 $21.33 $20.50 $19.60 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.67 0.43 0.42 0.54 0.65 Total revenue 0.54 0.35 0.34 0.44 0.52 Total expenses (0.54) (0.48) (0.47) (0.44) (0.40) Total expenses (0.34) (0.36) (0.35) (0.31) (0.30) Realized gains (losses) 0.96 1.66 1.91 1.33 2.61 Realized gains (losses) 1.38 1.36 1.55 1.09 2.13 Unrealized gains (losses) 4.73 3.71 (1.43) 0.21 (0.99) Unrealized gains (losses) 4.62 3.12 (1.14) 0.22 (0.99) Total increase (decrease) from Total increase (decrease) from operations (2) $5.82 $5.32 $0.43 $1.64 $1.87 operations (2) $6.20 $4.47 $0.40 $1.44 $1.36 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) (0.03) – – – – (excluding dividends) (0.06) – – – – From dividends – – – (0.14) (0.25) From dividends – – – (0.17) (0.28) From capital gains – (0.42) (1.39) (0.50) (0.49) From capital gains – (0.38) (1.16) (0.44) (0.41) Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $(0.03) $(0.42) $(1.39) $(0.64) $(0.74) Total annual distributions (2,3) $(0.06) $(0.38) $(1.16) $(0.61) $(0.69) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $36.01 $30.31 $25.36 $26.36 $25.27 31 of year shown (2) $29.21 $24.53 $20.52 $21.33 $20.50

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net asset value (in 000s) (4) $132,799 $87,216 $66,089 $66,660 $59,431 000s) (4) $617 $223 $164 $161 $151 Number of units Number of units outstanding outstanding (in 000s) (4) 3,688 2,877 2,607 2,529 2,351 (in 000s) (4) 21 9 8 8 7 Management expense Management expense ratio ratio ("MER") (5) 1.70% 1.70% 1.68% 1.70% 1.69% ("MER") (5) 1.30% 1.57% 1.57% 1.49% 1.59% MER before waivers or MER before waivers or absorptions (5) 1.70% 1.70% 1.68% 1.70% 1.69% absorptions (5) 1.31% 1.84% 1.67% 1.71% 1.72% Trading expense ratio (6) 0.02% 0.03% 0.04% 0.04% 0.05% Trading expense ratio (6) 0.02% 0.03% 0.04% 0.04% 0.05% Portfolio turnover rate (7) 45.19% 75.81% 98.65% 94.02% 90.70% Portfolio turnover rate (7) 45.19% 75.81% 98.65% 94.02% 90.70% Net asset value per Net asset value per unit (4) $29.21 $24.53 $20.52 $21.33 $20.50 unit (4) $36.01 $30.31 $25.36 $26.36 $25.27

3 HSBC U.S. Equity Fund

HSBC U.S. Equity Fund – Institutional Series – have waived or absorbed certain fees and expenses otherwise Net Assets per Unit(1) payable by the Fund. The amount of expenses absorbed or waived Year(s) ended December 31 is at the discretion of and can be terminated at any time by us. (6) The trading expense ratio represents total commissions and other 2020 2019 2018 2017 2016 portfolio transaction costs expressed as an annualized percentage Net assets per unit, beginning of of daily average net asset value during the year. year (2) $18.29 $15.13 $15.55 $14.86 $14.15 (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Increase (decrease) from portfolio advisor manages its portfolio investments. A portfolio operations: turnover rate of 100% is equivalent to the Fund buying and selling Total revenue 0.39 0.26 0.25 0.32 0.38 all of the securities in its portfolio once in the course of the year. Total expenses (0.03) (0.03) (0.02) (0.02) (0.02) The higher the Fund’s portfolio turnover rate in a year, the greater Realized gains (losses) 0.51 0.96 1.13 0.78 1.54 the trading costs payable by the Fund in the year, and the greater Unrealized gains (losses) 2.52 2.12 (0.79) 0.14 (0.21) the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate Total increase (decrease) from and the performance of the Fund. The rate is calculated based on operations (2) $3.39 $3.31 $0.57 $1.22 $1.69 the lesser of purchases or sales of securities divided by the average Distributions to unitholders: weighted market value of the portfolio securities, excluding short- From net investment income term securities. (excluding dividends) (0.11) – – – – From dividends – – – (0.20) (0.33) Management Fees From capital gains – (0.33) (0.90) (0.36) (0.33) For the year ended December 31, 2020, the Fund paid us Return of capital – – – – – management fees of $4,842,229. The management fee for each Total annual distributions (2,3) $(0.11) $(0.33) $(0.90) $(0.56) $(0.66) series is calculated as a percentage of the daily net asset value Net assets per unit at December for that series. The fees are reduced, where required, so that 31 of year shown (2) $21.98 $18.29 $15.13 $15.55 $14.86 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Ratios and Supplemental Data The Fund’s management fees were used by us to pay costs for 2020 2019 2018 2017 2016 managing the investment portfolio, providing investment Total net asset value (in analysis and recommendations, making investment decisions, 000s) (4) $2,280 $2,167 $1,566 $1,569 $1,719 making brokerage arrangements for the purchase and sale of Number of units outstanding the investment portfolio and providing other services. The (in 000s) (4) 104 118 104 101 116 management fees also funded commission payments and other Management expense ratio ("MER") (5) 0.12% 0.16% 0.14% 0.13% 0.13% compensation (collectively “distribution costs”) to sales MER before waivers or representatives and registered dealers and brokers, including absorptions (5) 0.12% 0.16% 0.14% 0.13% 0.13% HSBC Investment Funds (Canada) Inc., for units of the Fund Trading expense ratio (6) 0.02% 0.03% 0.04% 0.04% 0.05% bought and held by unitholders. Finally, we used management Portfolio turnover rate (7) 45.19% 75.81% 98.65% 94.02% 90.70% fees to pay for additional marketing and distribution services to Net asset value per unit (4) $21.98 $18.29 $15.13 $15.55 $14.86 the Fund. (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial For the year ended December 31, 2020, approximately 46% of Reporting Standards (“IFRS”). Under IFRS, the net assets per unit the total management fees collected from all HSBC Mutual presented in the financial statements is the same as the net asset Funds were used to fund distribution costs. In comparison, for value calculated for fund pricing purposes. the Fund, such distribution costs represented 41% of the (2) Net assets per unit and distributions per unit are based on the management fees collected. This may vary by series depending actual number of units outstanding for the relevant series at the on the assets invested in each of the series. relevant time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. Past Performance The performance information shown assumes that all (3) Distributions are automatically reinvested in additional units of the distributions made by the Fund in the years shown were Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, (4) This information is provided as at December 31 of the year shown. distribution, optional charges or expenses you may be charged (5) MER is based on total expenses (excluding distributions, outside of the Fund or the effect of any income tax you may commissions and other portfolio transaction costs) for the stated have to pay as a result of your investment in the Fund that year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one would have reduced returns or performance. The performance mutual fund to another and from one series of units to another. We of different fund series may vary for a number of reasons, including differences in management fees and expenses. The Fund’s past performance does not necessarily indicate how it will perform in the future.

4 HSBC U.S. Equity Fund

Year-by-Year Returns Annual Returns – Institutional Series

Years ended December 31 60% The following bar charts show the Fund’s performance for each 50% of the years shown, and illustrate how the Fund’s performance 40% changed from year to year. In percentage terms, the bar charts show how much an investment made on the first day of each 30% 22.6% 23.1% 20.7% financial year would have grown or decreased by the last day of 20% each financial year. 9.8% 8.5% 10% 3.3% Annual Returns – Investor Series 0% -10% 60% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011* 2012* 2013* 2014* 2015 2016 2017 2018 2019 2020 50% 43.9% 40% * The Institutional Series was fully redeemed between 2011 and 2014. 30% 19.8% 20.0% 20.5% 20% 18.2% Annual Compound Returns 10% 7.1% 7.5% 6.2% Year ended December 31, 2020 1.1% The following tables show the Fund’s historical annual 0% -1.7% compound total returns for the years indicated, compared with -10% the benchmark index, the Russell 1000 Total Return Index (in Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Canadian dollars), over the same period. This index measures the performance of large-cap stocks of the US equity universe, Annual Returns – Premium Series representing a broad range of industries. This index is tracked in US dollars and was converted to Canadian dollars. 60% 50% 44.7% Investor Series

40% 1 Year 3 Year 5 Year 10 Year 30% HSBC U.S. Equity Fund 18.20% 12.93% 10.46% 13.61% 21.2% 20.4% 20.7% 18.9% Russell 1000 Total Return Index (C$) 18.84% 15.46% 13.61% 16.88% 20% 10% 7.7% 8.1% 6.8% Manager Series 1.7% 0% 1 Year 3 Year 5 Year 10 Year -1.2% -10% HSBC U.S. Equity Fund 19.32% 13.82% 11.29% 14.64% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Russell 1000 Total Return Index (C$) 18.84% 15.46% 13.61% 16.88% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Institutional Series Annual Returns – Manager Series Since 60% 1 Year 3 Year 5 Year Inception 50% 45.5% HSBC U.S. Equity Fund 20.73% 15.36% 12.83% 15.59% Russell 1000 Total Return Index (C$) 18.84% 15.46% 13.61% 15.86% 40% 30% Premium Series 21.1% 20.9% 21.4% 19.3% 20% 1 Year 3 Year 5 Year 10 Year 10% 8.4% 8.2% 7.0% HSBC U.S. Equity Fund 18.88% 13.59% 11.09% 14.25% 1.8% Russell 1000 Total Return Index (C$) 18.84% 15.46% 13.61% 16.88% 0% -0.6% (1) Due to the fact that several benchmark indices are only available on -10% a monthly basis, the performance data for the HSBC Funds and the Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 benchmark indices are calculated using values from the first month- end date each Fund was in operation. (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations section of this report.

5 HSBC U.S. Equity Fund

Summary of Investment Portfolio As at December 31, 2020

Sector Mix Percentage of NAV

Information Technology 31.86% Consumer Discretionary 14.38% Health Care 13.37% Financials 11.72% Communication Services 8.24% Consumer Staples 8.04% Industrials 5.99% Materials 2.95% Energy 1.24% Real Estate 1.05% Utilities 0.39% Cash & Equivalents 0.77% Total 100.00%

Top 25 Holdings Percentage of NAV

Apple Inc. 6.49% Microsoft Corp. 4.87% Amazon.com Inc. 3.87% Alphabet Inc. 3.19% Facebook Inc. 2.64% Johnson & Johnson 1.55% Otis Worldwide Corp. 1.49% Tesla Inc. 1.29% The Home Depot Inc. 1.22% Procter & Gamble Co. 1.21% Applied Materials Inc. 1.05% JPMorgan Chase & Co. 1.05% Oracle Corp. 1.03% Adobe Inc. 1.02% NVIDIA Corp. 1.02% Visa Inc., Class A 1.02% UnitedHealth Group Inc. 0.98% AutoNation Inc. 0.92% Teradyne Inc. 0.86% Qualcomm Inc. 0.82% Target Corp. 0.82% Lowe's Cos., Inc. 0.79% Intel Corp. 0.77% FNF Group 0.75% Cognizant Technology Solutions Corp. 0.74% Total of Top 25 Holdings 41.46%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

6 HSBC U.S. Equity Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC European Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC European Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the This Fund is suitable for long-term investors who want to add Fund; we, us and our refer to HSBC Global Asset Management the growth potential of European companies to their portfolios. (Canada) Limited; and the Fund refers to the HSBC Investors in this Fund should have a long-term investment time European Fund. horizon and a medium tolerance for risk in their returns. We are the manager, trustee and primary investment advisor of Results of Operations the Fund. We have entered into a sub-advisory agreement As of December 31, 2020, the Fund's net assets decreased by with HSBC Global Asset Management (France), under which 14.7% to $29.1 million from $34.1 million at the end of 2019. HSBC Global Asset Management (France) provides investment Net withdrawals and negative investment performance resulted advice and portfolio management services to the Fund. For an in an overall decrease in net asset value. explanation of the relationship between us and the sub-advisor, see the section Selection of Sub-Advisors in the Fund’s Investment Performance Simplified Prospectus. The HSBC European Fund (Investor Series) fell 2.81% for the 12 months ending December 31, 2020, while the benchmark MSCI Introduction Europe Net Index (C$) rose 3.53% over the same period. The This Annual Management Report of Fund Performance contains Fund’s returns are after the deduction of fees and expenses, financial highlights but does not contain the complete annual while the benchmark’s returns do not include any costs of financial statements of the Fund. You may obtain a copy of the investing. See the Past Performance section for the returns of annual financial statements at your request, at no cost, by other series of the Fund, which may vary due to differences in calling us toll-free at 1-888-390-3333, by visiting our website at management fees and expenses. www.assetmanagement.hsbc.ca, by visiting the SEDAR website at www.sedar.com or by writing to us at: The Fund underperformed its benchmark in 2020, despite a very good performance in the fourth quarter in absolute and HSBC Global Asset Management (Canada) Limited relative terms. Country allocation had a negative impact on rd 3 Floor, 885 West Georgia Street relative performance, with underweight positions in Vancouver, BC V6C 3E8 Switzerland, Sweden and Denmark detracting from You may also contact us using one of these methods to request a performance, while an overweight position in Germany and an copy of the Fund’s interim financial report, proxy voting policies underweight position in the United Kingdom contributed to and procedures, proxy voting disclosure record or quarterly performance. portfolio disclosure. The Fund’s lack of exposure to companies in the semiconductor Investment Objective and Strategies and luxury goods segments, and an overweight position in telecommunication services and financials, negatively impacted The fundamental investment objective of this Fund is to achieve performance. This was only partially offset by positive long-term capital growth. contributions from an overweighting in the industrials, To achieve its objectives, the Fund invests primarily in equities transportation and health-care equipment sectors. and equity-related securities of large, established companies Overall, security selection had a small positive impact on domiciled in Europe. These companies are primarily from the returns, with positive contributions coming from United Kingdom, France, Germany, Italy and other European telecommunications (Iliad), food and beverage (AB InBev), Union member nations. The Fund is broadly diversified across transportation (Deutsche Post), utilities (Enel), business services industries and countries in the region. To maintain a diversified (Teleperformance), software (Capgemini) and industrials portfolio of holdings, the Fund will invest in companies from a (Prysmian and Siemens). Conversely, performance was broad range of industries through common shares, preferred negatively impacted by selections in banks (UniCredit and shares, rights, warrants, American depositary receipts and Societe Generale), food retail (Casino), autos (Renault) and global depositary receipts. The Fund may also invest in large, pharmaceuticals (Bayer). established companies domiciled in emerging market countries in Europe. A portion of the Fund may be in the form of cash or Recent Developments cash equivalents. The 2021 outlook for equities begins on a positive note with Risk accommodative policy, unprecedented fiscal easing in the works, recovering earnings and the rollout of vaccines. The The risks of investing in this Fund remain as discussed in the portfolio management team is convinced that we are at the Simplified Prospectus. During the year, there were no material beginning of a major inflection towards a structural regime and changes to the Fund that affected the overall risk level of the Fund.

1 HSBC European Fund leadership change favouring the Fund’s “value” bias. In assets under management, calculated daily and paid quarterly. addition, investors remain underpositioned in European equities For more information on our ability to hire sub-advisors, see the and 2021 could prove to be a better year thanks to global section Organization and management of the Funds in the Fund’s growth. Simplified Prospectus.

Throughout 2020, the portfolio management team maintained Distribution Services its disciplined investment process of investing in liquid names The Fund is distributed through us, HSBC Investment Funds with an attractive combination of profitability and valuation, as (Canada) Inc. (our wholly owned subsidiary and affiliate) and well as using proprietary fundamental research to confirm HSBC Securities (Canada) Inc. (an affiliate) directly or through investment attractiveness. its division, HSBC InvestDirect. We pay distribution and The Fund is overweight in cyclical sectors (industrials and servicing fees to them based on the amount of assets held in materials), financials and communication services. It is the investor’s account, and additionally, in some cases, on the underweight in health care, information technology, consumer amount of the initial purchase. If you hold units of this Fund staples and consumer discretionary (mainly and/or other HSBC Mutual Funds in a registered plan with consumer durables). HSBC Investment Funds (Canada) Inc., they may charge you an annual fee to cover the annual administration costs of the plan. During the period there has been a change in composition to We permit HSBC Investment Funds (Canada) Inc. to collect the Independent Review Committee (the “IRC”). Effective these fees by redeeming sufficient units of the Fund with the March 25, 2020, Ms. Louise Tymocko was appointed to the IRC highest market value in your registered plan. as a member, replacing Mr. William (Bill) Bakk who left as his term of office expired. Ms. Lisa Pankratz also took over as Chair Financial Highlights of the IRC effective March 25, 2020. In addition, effective The following tables show selected key financial information February 18, 2021, Ms. Sharon Morrisroe was also appointed to about the Fund and are intended to help you understand the the IRC as a member, replacing Mr. Neil de Gelder who left Fund’s financial performance for the past five years. This following the expiry of his term in March of 2021. information is derived from the Fund’s audited annual financial statements. The information in the following tables is based on Related Party Transactions prescribed regulations, and, as a result, is not expected to add We, on behalf of the Fund, or the Fund Manager, may, from down due to the increase/decrease in net assets from time to time, enter into transactions or arrangements with or operations being based on average units outstanding during the involving other members of the HSBC Group or other people or year and all other numbers being based on actual units companies related or connected to us or the Fund. To proceed outstanding at the relevant point in time. with the transactions, the Fund relies on the positive recommendation of the Fund’s Independent Review Committee. A condition of this positive recommendation is that the transactions HSBC European Fund – Investor Series – Net are performed in accordance with our policy on Related Party Assets per Unit(1) Transactions. For more general information on persons related Year(s) ended December 31 to the Fund and the types of potential transactions, see the 2020 2019 2018 2017 2016 Fund’s Simplified Prospectus. Net assets per unit, beginning of The following is a summary of current transactions and year (2) $28.21 $25.52 $30.19 $25.98 $28.61 arrangements with entities that are related to us or the Fund. Increase (decrease) from operations: Manager, Trustee and Investment Advisor Total revenue 0.58 1.24 0.93 0.79 0.72 Total expenses (0.67) (0.69) (0.73) (0.71) (0.62) We are the manager, trustee and primary investment advisor of Realized gains (losses) (0.48) (0.01) 0.97 1.95 2.37 the Fund. As manager, we manage the overall business and Unrealized gains (losses) (0.55) 2.78 (5.58) 2.29 (5.15) operations of the Fund. As trustee, we hold legal title to the Total increase (decrease) from property of the Fund on your behalf. As primary investment operations (2) $(1.12) $3.32 $(4.41) $4.32 $(2.68) advisor, we provide investment advice and portfolio Distributions to unitholders: management services to the Fund. We receive a fee from the From net investment income Fund for these services based on assets under management, (excluding dividends) – – – – – calculated daily and paid monthly. From dividends – (0.62) (0.21) (0.06) (0.14) From capital gains – – – – – We have entered into a sub-advisory agreement with HSBC Return of capital – – – – – Global Asset Management (France), an affiliate, under which Total annual distributions (2,3) $– $(0.62) $(0.21) $(0.06) $(0.14) HSBC Global Asset Management (France) provides investment Net assets per unit at December advice and portfolio management services to the Fund. We pay 31 of year shown (2) $27.42 $28.21 $25.52 $30.19 $25.98 HSBC Global Asset Management (France) a fee based on

2 HSBC European Fund

Ratios and Supplemental Data HSBC European Fund – Manager Series – Net (1) 2020 2019 2018 2017 2016 Assets per Unit Year(s) ended December 31 Total net asset value (in 000s) (4) $24,183 $28,575 $29,204 $35,634 $34,746 2020 2019 2018* 2017* 2016 Number of units Net assets per unit, beginning of outstanding (in 000s) (4) 882 1,013 1,144 1,181 1,337 year (2) $9.88 $10.00 $– $9.87 $10.76 Management expense ratio ("MER") (5) 2.69% 2.54% 2.47% 2.47% 2.41% Increase (decrease) from operations: MER before waivers or Total revenue 0.21 0.29 – 0.03 0.26 absorptions (5) 2.71% 2.54% 2.47% 2.47% 2.41% Total expenses (0.14) (0.09) – 0.03 (0.16) Trading expense ratio (6) 0.04% 0.04% 0.06% 0.22% 0.36% Realized gains (losses) (0.18) (0.06) – 0.14 0.66 Portfolio turnover rate (7) 12.45% 12.11% 28.39% 44.82% 105.18% Unrealized gains (losses) (0.06) 0.08 – 0.02 (3.34) Net asset value per unit (4) $27.42 $28.21 $25.52 $30.19 $25.98 Total increase (decrease) from operations (2) $(0.17) $0.22 $– $0.22 $(2.58) HSBC European Fund – Premium Series – Net Distributions to unitholders: (1) From net investment income Assets per Unit (excluding dividends) – – – – – Year(s) ended December 31 From dividends – (0.33) – – (0.16) 2020 2019 2018 2017 2016 From capital gains – – – – – Return of capital – – – – – Net assets per unit, beginning of Total annual distributions (2,3) $– $(0.33) $– $– $(0.16) year (2) $16.79 $15.20 $18.02 $15.50 $17.08 Net assets per unit at December 31 Increase (decrease) from of year shown (2) $9.71 $9.88 $– $– $9.87 operations: Total revenue 0.35 0.75 0.57 0.43 0.45 Total expenses (0.32) (0.33) (0.34) (0.33) (0.29) Realized gains (losses) (0.29) 0.01 0.60 1.04 1.46 Ratios and Supplemental Data Unrealized gains (losses) (0.29) 1.65 (3.67) 1.34 (3.16) 2020 2019 2018* 2017* 2016 Total increase (decrease) from Total net asset value (in operations (2) $(0.55) $2.08 $(2.84) $2.48 $(1.54) 000s) (4) $5 $5 $– $– $11 Distributions to unitholders: Number of units outstanding From net investment income (in 000s) (4) 1 1 – – 1 (excluding dividends) – – – – – Management expense ratio From dividends – (0.47) (0.25) (0.14) (0.17) ("MER") (5) 1.65% 1.37% – 0.00% 1.62% From capital gains – – – – – MER before waivers or Return of capital – – – – – absorptions (5) 27.99% 68.14% – 8.78% 6.00% Trading expense ratio (6) 0.04% 0.04% – 0.22% 0.36% Total annual distributions (2,3) $– $(0.47) $(0.25) $(0.14) $(0.17) Portfolio turnover rate (7) 12.45% 12.11% – 44.82% 105.18% Net assets per unit at December Net asset value per unit (4) $9.71 $9.88 $– $– $9.87 31 of year shown (2) $16.41 $16.79 $15.20 $18.02 $15.50 * The Manager Series was fully redeemed during 2017 and 2018.

Ratios and Supplemental Data 2020 2019 2018 2017 2016 Total net asset value (in 000s) (4) $4,679 $5,223 $5,653 $6,596 $5,616 Number of units outstanding (in 000s) (4) 285 311 372 366 362 Management expense ratio ("MER") (5) 2.15% 2.02% 1.91% 1.94% 1.86% MER before waivers or absorptions (5) 2.17% 2.02% 1.91% 1.94% 1.86% Trading expense ratio (6) 0.04% 0.04% 0.06% 0.22% 0.36% Portfolio turnover rate (7) 12.45% 12.11% 28.39% 44.82% 105.18% Net asset value per unit (4) $16.41 $16.79 $15.20 $18.02 $15.50

3 HSBC European Fund

HSBC European Fund – Institutional Series – have waived or absorbed certain fees and expenses otherwise Net Assets per Unit(1) payable by the Fund. The amount of expenses absorbed or waived Year(s) ended December 31 is at the discretion of and can be terminated at any time by us. (6) The trading expense ratio represents total commissions and other 2020 2019 2018 2017 2016 portfolio transaction costs expressed as an annualized percentage Net assets per unit, beginning of of daily average net asset value during the year. year (2) $11.06 $10.03 $11.90 $10.27 $11.33 (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Increase (decrease) from portfolio advisor manages its portfolio investments. A portfolio operations: turnover rate of 100% is equivalent to the Fund buying and selling Total revenue 0.23 0.49 0.37 0.32 0.32 all of the securities in its portfolio once in the course of the year. Total expenses (0.05) (0.06) (0.06) (0.06) (0.04) The higher the Fund’s portfolio turnover rate in a year, the greater Realized gains (losses) (0.20) (0.01) 0.39 0.80 1.03 the trading costs payable by the Fund in the year, and the greater Unrealized gains (losses) (0.07) 1.09 (2.25) 0.90 (2.33) the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate Total increase (decrease) from and the performance of the Fund. The rate is calculated based on operations (2) $(0.09) $1.51 $(1.55) $1.96 $(1.02) the lesser of purchases or sales of securities divided by the average Distributions to unitholders: weighted market value of the portfolio securities, excluding short- From net investment income term securities. (excluding dividends) – – – – – From dividends – (0.50) (0.32) (0.29) (0.28) Management Fees From capital gains – – – – – For the year ended December 31, 2020, the Fund paid us Return of capital – – – – – management fees of $537,331. The management fee for each Total annual distributions (2,3) $– $(0.50) $(0.32) $(0.29) $(0.28) series is calculated as a percentage of the daily net asset value Net assets per unit at December for that series. The fees are reduced, where required, so that 31 of year shown (2) $10.98 $11.06 $10.03 $11.90 $10.27 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Ratios and Supplemental Data The Fund’s management fees were used by us to pay costs for 2020 2019 2018 2017 2016 managing the investment portfolio, providing investment Total net asset value (in analysis and recommendations, making investment decisions, 000s) (4) $270 $275 $251 $287 $328 making brokerage arrangements for the purchase and sale of Number of units the investment portfolio and providing other services. The outstanding (in 000s) (4) 25 25 25 24 32 management fees also funded commission payments and other Management expense ratio ("MER") (5) 0.53% 0.52% 0.53% 0.54% 0.39% compensation (collectively “distribution costs”) to sales MER before waivers or representatives and registered dealers and brokers, including absorptions (5) 0.84% 0.84% 0.62% 0.56% 0.39% HSBC Investment Funds (Canada) Inc., for units of the Fund Trading expense ratio (6) 0.04% 0.04% 0.06% 0.22% 0.36% bought and held by unitholders. Finally, we used management Portfolio turnover rate (7) 12.45% 12.11% 28.39% 44.82% 105.18% fees to pay for additional marketing and distribution services to Net asset value per unit (4) $10.98 $11.06 $10.03 $11.90 $10.27 the Fund. (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial For the year ended December 31, 2020, approximately 46% of Reporting Standards (“IFRS”). Under IFRS, the net assets per unit the total management fees collected from all HSBC Mutual presented in the financial statements is the same as the net asset Funds were used to fund distribution costs. In comparison, for value calculated for fund pricing purposes. the Fund, such distribution costs represented 38% of the (2) Net assets per unit and distributions per unit are based on the management fees collected. This may vary by series depending actual number of units outstanding for the relevant series at the on the assets invested in each of the series. relevant time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. Past Performance The performance information shown assumes that all (3) Distributions are automatically reinvested in additional units of the distributions made by the Fund in the years shown were Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, (4) This information is provided as at December 31 of the year shown. distribution, optional charges or expenses you may be charged (5) MER is based on total expenses (excluding distributions, outside of the Fund or the effect of any income tax you may commissions and other portfolio transaction costs) for the stated have to pay as a result of your investment in the Fund that year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one would have reduced returns or performance. The performance mutual fund to another and from one series of units to another. We of different fund series may vary for a number of reasons, including differences in management fees and expenses. The Fund’s past performance does not necessarily indicate how it will perform in the future.

4 HSBC European Fund

Year-by-Year Returns Annual Returns – Institutional Series

Years ended December 31 40% The following bar charts show the Fund’s performance for each 30% of the years shown, and illustrate how the Fund’s performance 19.7% 18.7% 20% changed from year to year. In percentage terms, the bar charts 15.3% show how much an investment made on the first day of each 10% financial year would have grown or decreased by the last day of 0% each financial year. -0.7% -10% -6.9% -13.0% Annual Returns – Investor Series -20%

40% -30% 32.6% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011* 2012* 2013* 2014* 2015 2016 2017 2018 2019 2020 30% 20% 16.9% 17.3% 16.4% * The Institutional Series was fully redeemed between 2011 and 13.0% 2014. 10% 0% Annual Compound Returns -0.5% -2.8% -10% Year ended December 31, 2020 -8.7% The following tables show the Fund’s historical annual -20% -13.0% -14.7% compound total returns for the years indicated, compared with -30% the benchmark index, the MSCI Europe Net Index (in Canadian Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 dollars), over the same period. This index measures the performance of stocks traded in European markets. This index Annual Returns – Premium Series is tracked in US dollars and was converted to Canadian dollars.

40% 33.4% Investor Series 30% 1 Year 3 Year 5 Year 10 Year 18.0% 17.9% 17.1% 20% 13.5% HSBC European Fund -2.81% -2.18% -0.10% 4.58% 10% MSCI Europe Net Index (C$) 3.53% 4.13% 4.95% 7.97%

0.1% 0% Manager Series -2.3% -10% -8.2% Since -12.4% -20% -14.2% 1 Year Inception -30% HSBC European Fund -1.78% 0.49% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 MSCI Europe Net Index (C$) 3.53% 4.47% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Institutional Series Annual Returns – Manager Series Since 40% 1 Year 3 Year 5 Year Inception 30% HSBC European Fund -0.69% -0.14% 1.94% 4.28% MSCI Europe Net Index (C$) 3.53% 4.13% 4.95% 6.07% 20% 18.2% 10% Premium Series 0% 1 Year 3 Year 5 Year 10 Year -1.8% HSBC European Fund -2.29% -1.65% 0.45% 5.22% -10% -6.8% -12.0% MSCI Europe Net Index (C$) 3.53% 4.13% 4.95% 7.97% -20% (1) Due to the fact that several benchmark indices are only available on -30% a monthly basis, the performance data for the HSBC Funds and the Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 benchmark indices are calculated using values from the first month- 2011 2012* 2013* 2014* 2015 2016 2017* 2018* 2019* 2020 end date each Fund was in operation. * The Manager Series did not have unitholders for the full calendar (2) For investment commentary and relative performance of the Fund year in the following periods: from 2012 to 2014 and 2017 to 2019. compared to its benchmark, please refer to the Results of Operations section of this report.

5 HSBC European Fund

Summary of Investment Portfolio Top 25 Holdings As at December 31, 2020 Percentage

of NAV

Reckitt Benckiser Group PLC 2.65% Sector Mix Deutsche Post AG 2.50% Percentage Enel SpA 2.47% of NAV Allianz SE 2.43% Financials 19.84% Siemens AG 2.34% Industrials 16.15% Deutsche Telekom AG 2.32% Consumer Staples 10.92% Fresenius Medical Care AG & Co., KGaA 2.30% Materials 10.70% Novartis AG 2.23% Communication Services 10.07% Koninklijke Philips NV 2.20% Health Care 9.21% AXA SA 2.17% Utilities 6.25% HeidelbergCement AG 2.14% Energy 5.38% Prudential PLC 2.14% Information Technology 4.68% Heineken NV 2.08% Consumer Discretionary 3.62% Capgemini SE 2.06% Cash & Equivalents 3.18% Anheuser-Busch InBev SA 1.97% Total 100.00% Cie de Saint-Gobain 1.94%

Nestlé SA 1.88% Smurfit Kappa Group PLC 1.87% Geographic Mix Industria de Diseno Textil SA 1.86% Percentage Barclays PLC 1.82% of NAV UBS Group AG 1.78% France 21.26% Rio Tinto PLC 1.77% United Kingdom 20.31% Volkswagen AG 1.76% Germany 18.69% Orange SA 1.73% Switzerland 7.58% Swiss Re AG 1.69% Netherlands 7.32% Total of Top 25 Holdings 52.10% Spain 5.80% Italy 4.79% Belgium 3.57% Ireland 1.87% Austria 1.52% Jersey 1.50% Luxembourg 1.33% Sweden 1.28% Cash & Equivalents 3.18% Total 100.00%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

6 HSBC European Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC AsiaPacific Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC AsiaPacific Fund

To achieve its objectives, the Fund invests primarily in equities Over the year, the Fund increased its weightings in Taiwan and and equity-related securities of large, established companies Korea and decreased its weighting in mainland China. On a domiciled in Asia and the Pacific Rim, but excluding Japan. To sector level, the portfolio management team increased the maintain a diversified portfolio of holdings, the Fund invests in Fund’s weightings in information technology and decreased companies from a broad range of industries through common weightings in energy. shares, preferred shares, rights, warrants, American depositary receipts and global depositary receipts. A portion of the Fund Recent Developments may be in the form of cash or cash equivalents. The portfolio management team believes Asian equities offer attractive risk-reward returns. Asian fundamentals remain the Risk strongest relative to the rest of the world as the region is first-in The risks of investing in this Fund remain as discussed in the first-out of the COVID-19 crisis and continues to benefit from a Simplified Prospectus. During the year, there were no material V-shaped recovery in China. The Biden administration is changes to the Fund that affected the overall risk level of expected to normalize the US policy stance towards Asia by the Fund. taking a more multilateral approach, which would mean more This Fund is suitable for investors seeking long-term capital consistency and predictability in the markets. The market appreciation from equity securities issued in non-North consensus is that earnings are expected to rebound to 24% in American markets. Investors in this Fund should have a long 2021 from -4% in 2020. In terms of valuation, Asian equities are term investment time horizon and a medium to high tolerance trading at a discount to their counterparts in for risk in their returns. developed markets.

1 HSBC AsiaPacific Fund

Although India and the ASEAN countries lagged in 2020, a big Distribution Services catch-up and rebound are expected in 2021. In India, the The Fund is distributed through us, HSBC Investment Funds portfolio management team believes there are selective (Canada) Inc. (our wholly owned subsidiary and affiliate) and opportunities to play on the multi-speed recovery seen in the HSBC Securities (Canada) Inc. (an affiliate) directly or through country. The Fund continues to be overweight in Indonesia. The its division, HSBC InvestDirect. We pay distribution and Fund’s top country/territory weight is in Taiwan and its top servicing fees to them based on the amount of assets held in sector weight is in communication services. the investor’s account, and additionally, in some cases, on the amount of the initial purchase. If you hold units of this Fund During the period there has been a change in composition to and/or other HSBC Mutual Funds in a registered plan with the Independent Review Committee (the “IRC”). Effective HSBC Investment Funds (Canada) Inc., they may charge you an March 25, 2020, Ms. Louise Tymocko was appointed to the IRC annual fee to cover the annual administration costs of the plan. as a member, replacing Mr. William (Bill) Bakk who left as his We permit HSBC Investment Funds (Canada) Inc. to collect term of office expired. Ms. Lisa Pankratz also took over as Chair these fees by redeeming sufficient units of the Fund with the of the IRC effective March 25, 2020. In addition, effective highest market value in your registered plan. February 18, 2021, Ms. Sharon Morrisroe was also appointed to the IRC as a member, replacing Mr. Neil de Gelder who left Related Brokerage Commissions following the expiry of his term in March of 2021. From time to time, the Fund may enter into purchases and Related Party Transactions sales of securities, derivative instruments, foreign exchange contracts or other instruments with The Hongkong & Shanghai We, on behalf of the Fund, or the Fund Manager, may, from Banking Corporation Limited, HSBC Securities (Asia) Ltd. or time to time, enter into transactions or arrangements with or other dealers that are members of the HSBC Group (“Related involving other members of the HSBC Group or other people or Brokers”). These Related Brokers may earn commissions or companies related or connected to us or the Fund. To proceed spreads provided that such trades are made on terms and with the transactions, the Fund relies on the positive conditions comparable to those offered by or to unrelated recommendation of the Fund’s Independent Review Committee. A parties. During the year ended December 31, 2020, the Fund condition of this positive recommendation is that the transactions paid commissions to Related Brokers amounting to $430 are performed in accordance with our policy on Related Party (December 31, 2019 – $1,942). Transactions. For more general information on persons related to the Fund and the types of potential transactions, see the Financial Highlights Fund’s Simplified Prospectus. The following tables show selected key financial information The following is a summary of current transactions and about the Fund and are intended to help you understand the arrangements with entities that are related to us or the Fund. Fund’s financial performance for the past five years. This information is derived from the Fund’s audited annual financial Manager, Trustee and Investment Advisor statements. The information in the following tables is based on We are the manager, trustee and primary investment advisor of prescribed regulations, and, as a result, is not expected to add the Fund. As manager, we manage the overall business and down due to the increase/decrease in net assets from operations of the Fund. As trustee, we hold legal title to the operations being based on average units outstanding during the property of the Fund on your behalf. As primary investment year and all other numbers being based on actual units advisor, we provide investment advice and portfolio outstanding at the relevant point in time. management services to the Fund. We receive a fee from the Fund for these services based on assets under management, calculated daily and paid monthly.

We have entered into a sub-advisory agreement with HSBC Global Asset Management (Hong Kong) Limited (an affiliate), under which HSBC Global Asset Management (Hong Kong) Limited provides investment advice and portfolio management services to the Fund. We pay HSBC Global Asset Management (Hong Kong) Limited a fee from the Fund based on assets under management, calculated daily and paid quarterly. For more information on our ability to hire sub- advisors, see the section Organization and management of the Funds in the Fund’s Simplified Prospectus.

2 HSBC AsiaPacific Fund

HSBC AsiaPacific Fund – Investor Series – Net HSBC AsiaPacific Fund – Premium Series – Net Assets per Unit(1) Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $18.53 $16.26 $18.49 $14.50 $14.08 year (2) $16.44 $14.43 $16.32 $12.74 $12.36 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.30 0.50 0.46 0.42 0.37 Total revenue 0.25 0.45 0.43 0.37 0.32 Total expenses (0.48) (0.46) (0.48) (0.44) (0.34) Total expenses (0.34) (0.33) (0.34) (0.32) (0.23) Realized gains (losses) 0.50 1.07 0.73 1.90 0.66 Realized gains (losses) 0.58 0.97 0.71 1.74 0.63 Unrealized gains (losses) 3.33 1.20 (2.94) 2.12 (0.25) Unrealized gains (losses) 3.25 0.92 (2.88) 1.62 (0.16) Total increase (decrease) from Total increase (decrease) from operations (2) $3.65 $2.31 $(2.23) $4.00 $0.44 operations (2) $3.74 $2.01 $(2.08) $3.41 $0.56 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) – – – – – (excluding dividends) – – – – – From dividends – (0.04) – – (0.05) From dividends – (0.13) – – (0.11) From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $– $(0.04) $– $– $(0.05) Total annual distributions (2,3) $– $(0.13) $– $– $(0.11) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $22.26 $18.53 $16.26 $18.49 $14.50 31 of year shown (2) $19.85 $16.44 $14.43 $16.32 $12.74

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net asset value (in 000s) (4) $35,471 $33,435 $31,260 $36,527 $31,259 000s) (4) $6,841 $4,758 $4,136 $4,548 $2,781 Number of units Number of units outstanding (in 000s) (4) 1,594 1,804 1,922 1,975 2,155 outstanding (in 000s) (4) 345 289 287 279 218 Management expense Management expense ratio ratio ("MER") (5) 2.62% 2.68% 2.70% 2.60% 2.49% ("MER") (5) 2.08% 2.15% 2.16% 2.14% 1.90% MER before waivers or MER before waivers or absorptions (5) 2.67% 2.68% 2.72% 2.60% 2.49% absorptions (5) 2.13% 2.15% 2.16% 2.14% 1.99% Trading expense ratio (6) 0.39% 0.25% 0.23% 0.24% 0.28% Trading expense ratio (6) 0.39% 0.25% 0.23% 0.24% 0.28% Portfolio turnover rate (7) 112.39% 72.89% 61.69% 60.27% 64.98% Portfolio turnover rate (7) 112.39% 72.89% 61.69% 60.27% 64.98% Net asset value per unit (4) $22.26 $18.53 $16.26 $18.49 $14.50 Net asset value per unit (4) $19.85 $16.44 $14.43 $16.32 $12.74

3 HSBC AsiaPacific Fund

HSBC AsiaPacific Fund – Manager Series – Net HSBC AsiaPacific Fund – Institutional Series – Assets per Unit(1) Net Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $29.16 $25.59 $28.79 $22.49 $21.56 year (2) $26.61 $23.35 $25.97 $20.28 $19.70 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.46 0.83 0.74 0.66 0.53 Total revenue 0.40 0.72 0.65 0.60 0.53 Total expenses (0.45) (0.44) (0.46) (0.43) (0.04) Total expenses (0.12) (0.13) (0.13) (0.12) (0.07) Realized gains (losses) 0.69 1.79 1.12 2.99 1.11 Realized gains (losses) 1.05 1.55 0.98 2.67 0.94 Unrealized gains (losses) 1.87 0.94 (5.34) 3.07 (0.68) Unrealized gains (losses) 5.56 1.67 (4.38) 3.09 (0.13) Total increase (decrease) from Total increase (decrease) from operations (2) $2.57 $3.12 $(3.94) $6.29 $0.92 operations (2) $6.89 $3.81 $(2.88) $6.24 $1.27 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) – – – – – (excluding dividends) – – – – – From dividends – (0.38) – (0.16) (0.33) From dividends – (0.64) – (0.43) (0.53) From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $– $(0.38) $– $(0.16) $(0.33) Total annual distributions (2,3) $– $(0.64) $– $(0.43) $(0.53) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $35.39 $29.16 $25.59 $28.79 $22.49 31 of year shown (2) $32.66 $26.61 $23.35 $25.97 $20.28

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net asset value (in 000s) (4) $85 $112 $126 $82 $62 000s) (4) $2,355 $1,467 $1,434 $1,387 $1,247 Number of units Number of units outstanding (in 000s)(4) 2 4 5 3 3 outstanding (in 000s) (4) 72 55 61 53 62 Management expense ratio Management expense ratio ("MER") (5) 1.57% 1.63% 1.66% 1.64% 0.21% ("MER") (5) 0.45% 0.53% 0.53% 0.48% 0.36% MER before waivers or MER before waivers or absorptions (5) 2.35% 2.56% 2.43% 2.79% 3.97% absorptions (5) 0.50% 0.59% 0.62% 0.48% 0.36% Trading expense ratio (6) 0.39% 0.25% 0.23% 0.24% 0.28% Trading expense ratio (6) 0.39% 0.25% 0.23% 0.24% 0.28% Portfolio turnover rate (7) 112.39% 72.89% 61.69% 60.27% 64.98% Portfolio turnover rate (7) 112.39% 72.89% 61.69% 60.27% 64.98% Net asset value per unit (4) $35.39 $29.16 $25.59 $28.79 $22.49 Net asset value per unit (4) $32.66 $26.61 $23.35 $25.97 $20.28

(1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial Reporting Standards (“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 time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. (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 December 31 of the year shown. (5) MER is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one mutual fund to another and from one series of units to another. We

4 HSBC AsiaPacific Fund

have waived or absorbed certain fees and expenses otherwise Year-by-Year Returns payable by the Fund. The amount of expenses absorbed or waived Years ended December 31 is at the discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for each (6) The trading expense ratio represents total commissions and other of the years shown, and illustrate how the Fund’s performance portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the year. changed from year to year. In percentage terms, the bar charts show how much an investment made on the first 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 year would have grown or decreased by the last day of turnover rate of 100% is equivalent to the Fund buying and selling each financial year. all of the securities in its portfolio once in the course of the year. The higher the Fund’s portfolio turnover rate in a year, the greater Annual Returns – Investor Series the trading costs payable by the Fund in the year, and the greater 40% the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate 30% 27.5% and the performance of the Fund. The rate is calculated based on 20.1% 20% 14.2% the lesser of purchases or sales of securities divided by the average 11.9% 10.9% weighted market value of the portfolio securities, excluding short- 10% 5.6% 5.9% 3.4% term securities. 0% Management Fees -10% -12.0% For the year ended December 31, 2020, the Fund paid us -20% management fees of $691,365. The management fee for each -20.2% -30% series is calculated as a percentage of the daily net asset value Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 for that series. The fees are reduced, where required, so that 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Annual Returns – Premium Series

40% The Fund’s management fees were used by us to pay costs for 30% 28.1% managing the investment portfolio, providing investment 20.8% analysis and recommendations, making investment decisions, 20% 14.8% 12.5% 11.5% making brokerage arrangements for the purchase and sale of 10% 6.2% 6.5% 4.0% the investment portfolio and providing other services. The 0% management fees also funded commission payments and other -10% compensation (collectively “distribution costs”) to sales -11.6% -20% representatives and registered dealers and brokers, including -19.3% HSBC Investment Funds (Canada) Inc., for units of the Fund -30% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 bought and held by unitholders. Finally, we used management 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 fees to pay for additional marketing and distribution services to the Fund. Annual Returns – Manager Series

For the year ended December 31, 2020, approximately 46% of 40% 28.7% the total management fees collected from all HSBC Mutual 30% Funds were used to fund distribution costs. In comparison, for 21.4% 20% 15.4% the Fund, such distribution costs represented 44% of the 13.2% 12.1% management fees collected. This may vary by series depending 10% 6.8% 6.8% 5.8% on the assets invested in each of the series. 0% -10% Past Performance -11.1% -20% The performance information shown assumes that all -19.4% distributions made by the Fund in the years shown were -30% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 reinvested in additional securities of the Fund. The performance 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 information does not take into account sales, 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 performance of different fund series may vary for a number of reasons, including differences in management fees and expenses. The Fund’s past performance does not necessarily indicate how it will perform in the future.

5 HSBC AsiaPacific Fund

Annual Returns – Institutional Series Summary of Investment Portfolio

40% As at December 31, 2020 30.2% 30% 22.7% 20% 16.7% 14.4% 13.3% Sector Mix 10% 7.9% 8.2% 5.6% Percentage of NAV 0% Information Technology 29.42% -10% -10.1% Communication Services 18.37% -20% -18.5% Financials 15.97% -30% Consumer Discretionary 12.36% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Health Care 7.89% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Real Estate 5.01% Energy 3.83% Annual Compound Returns Materials 3.65% Year ended December 31, 2020 Consumer Staples 1.89% The following tables show the Fund’s historical annual Industrials 0.57% compound total returns for the years indicated, compared with Cash & Equivalents 1.04% Total 100.00% the benchmark index, the MSCI All Country Asia Pacific ex- Japan Net Index (in Canadian dollars), over the same period. This index measures the performance of a broad range of Geographic Mix stocks traded in Asia Pacific markets, excluding Japan. This Percentage index is tracked in US dollars and was converted to of NAV Canadian dollars. South Korea 17.81% Cayman Islands 17.54% Investor Series Taiwan 16.37% 1 Year 3 Year 5 Year 10 Year India 13.84% HSBC AsiaPacific Fund 20.12% 6.46% 9.72% 5.82% China 11.90% Australia 8.88% MSCI AC Asia Pacific ex-Japan Net Hong Kong 6.87% Index (C$) 20.30% 8.49% 10.99% 8.88% Indonesia 3.44% Manager Series Luxembourg 2.31% Singapore 0.00% 1 Year 3 Year 5 Year 10 Year Cash & Equivalents 1.04% HSBC AsiaPacific Fund 21.38% 7.58% 11.15% 7.07% Total 100.00% MSCI AC Asia Pacific ex-Japan Net Index (C$) 20.30% 8.49% 10.99% 8.88%

Institutional Series

1 Year 3 Year 5 Year 10 Year HSBC AsiaPacific Fund 22.75% 8.79% 12.10% 8.14% MSCI AC Asia Pacific ex-Japan Net Index (C$) 20.30% 8.49% 10.99% 8.88%

Premium Series

1 Year 3 Year 5 Year 10 Year HSBC AsiaPacific Fund 20.76% 7.02% 10.30% 6.46% MSCI AC Asia Pacific ex-Japan Net Index (C$) 20.30% 8.49% 10.99% 8.88% (1) Due to the fact that several benchmark indices are only available on a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- end date each Fund was in operation. (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations section of this report.

6 HSBC AsiaPacific Fund

Top 25 Holdings Percentage of NAV

Taiwan Semiconductor Manufacturing Co., Ltd. 7.51% Samsung Electronics Co., Ltd. 6.61% Tencent Holdings Ltd. 6.40% SK Hynix Inc. 4.65% MediaTek Inc. 4.01% Glenmark Pharmaceuticals Ltd. 3.74% AIA Group Ltd. 3.51% DLF Ltd. 3.50% Ping An Insurance (Group) Co. of China Ltd., Class H 2.95% United Tractors Tbk PT 2.75% CSL Ltd. 2.45% BHP Group Ltd. 2.34% L'Occitane International SA 2.31% Alibaba Group Holding Ltd. 2.25% Tencent Music Entertainment Group 2.19% Naver Corp. 2.04% NCSoft Corp. 1.99% Sea Ltd. 1.98% Largan Precision Co., Ltd. 1.94% Vipshop Holdings Ltd. 1.90% Indiabulls Housing Finance Ltd. 1.77% XPeng Inc. 1.74% Challenger Ltd. 1.70% Sino Biopharmaceutical Ltd. 1.70% Archosaur Games Inc. 1.54% Total of Top 25 Holdings 75.47%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

7 HSBC AsiaPacific Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC Chinese Equity Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Chinese Equity Fund

To achieve its objectives, the Fund invests primarily in equity The Fund outperformed its benchmark, and this and equity-related securities of publicly traded companies outperformance was mainly driven by an underweight position registered, or with an official listing, on a stock exchange in the in the financials sector and the effect of positive stock selection People’s Republic of China (“China”) as well as investing in in health care and industrials, offset by unfavourable stock securities of public companies that have a significant business selections in communication services. or investment link with China. To maintain a diversified portfolio of holdings, the Fund invests in companies from a broad range Recent Developments of industries through common shares, preferred shares, rights, In 2021, the portfolio management team expects the macro warrants, American depositary receipts, global depositary recovery in mainland China to continue to lead global markets receipts and participation notes. A portion of the Fund may be with a general rollout of effective vaccines. At the company in the form of cash or cash equivalents. level, corporate earnings will be supported by an inventory restocking cycle and robust exports, which have historically Risk correlated positively with total industrial profit growth. The risks of investing in this Fund remain as discussed in the In addition, the portfolio management team expects the Simplified Prospectus. During the year, there were no material appreciation of the renminbi to continue in 2021, supported by changes to the Fund that affected the overall risk level of solid exports, fund inflows and a widening gap between the Fund. interest rates in China and the US. As the renminbi is expected to gain further against the US dollar, foreign inflows into China’s capital markets should continue.

1 HSBC Chinese Equity Fund

The portfolio management team believes the key theme to its division, HSBC InvestDirect. We pay distribution and watch out for in 2021 is government policy. We are currently servicing fees to them based on the amount of assets held in seeing the normalization of fiscal, monetary and credit policies, the investor’s account, and additionally, in some cases, on the but there is no abrupt tightening. It is unlikely that policymakers amount of the initial purchase. If you hold units of this Fund will tighten too aggressively given the uncertainty about the and/or other HSBC Mutual Funds in a registered plan with path of the global recovery. HSBC Investment Funds (Canada) Inc., they may charge you an annual fee to cover the annual administration costs of the plan. During the period there has been a change in composition to We permit HSBC Investment Funds (Canada) Inc. to collect the Independent Review Committee (the “IRC”). Effective these fees by redeeming sufficient units of the Fund with the March 25, 2020, Ms. Louise Tymocko was appointed to the IRC highest market value in your registered plan. as a member, replacing Mr. William (Bill) Bakk who left as his term of office expired. Ms. Lisa Pankratz also took over as Chair Related Brokerage Commissions of the IRC effective March 25, 2020. In addition, effective From time to time, the Fund may enter into purchases and February 18, 2021, Ms. Sharon Morrisroe was also appointed to sales of securities, derivative instruments, foreign exchange the IRC as a member, replacing Mr. Neil de Gelder who left contracts or other instruments with The Hongkong & Shanghai following the expiry of his term in March of 2021. Banking Corporation Limited, HSBC Securities (Asia) Ltd. or Related Party Transactions other dealers that are members of the HSBC Group (“Related We, on behalf of the Fund, or the Fund Manager, may, from Brokers”). These Related Brokers may earn commissions or time to time, enter into transactions or arrangements with or spreads provided that such trades are made on terms and involving other members of the HSBC Group or other people or conditions comparable to those offered by or to unrelated companies related or connected to us or the Fund. To proceed parties. During the year ended December 31, 2020, the Fund with the transactions, the Fund relies on the positive paid commissions to Related Brokers amounting to $8,270 recommendation of the Fund’s Independent Review Committee. A (December 31, 2019 – $20,409). condition of this positive recommendation is that the transactions are performed in accordance with our policy on Related Party Financial Highlights Transactions. For more general information on persons related The following tables show selected key financial information to the Fund and the types of potential transactions, see the about the Fund and are intended to help you understand the Fund’s Simplified Prospectus. Fund’s financial performance for the past five years. This information is derived from the Fund’s audited annual financial The following is a summary of current transactions and statements. The information in the following tables is based on arrangements with entities that are related to us or the Fund. prescribed regulations, and, as a result, is not expected to add Manager, Trustee and Investment Advisor down due to the increase/decrease in net assets from We are the manager, trustee and primary investment advisor of operations being based on average units outstanding during the the Fund. As manager, we manage the overall business and year and all other numbers being based on actual units operations of the Fund. As trustee, we hold legal title to the outstanding at the relevant point in time. property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Fund for these services based on assets under management, calculated daily and paid monthly. We have entered into a sub-advisory agreement with HSBC Global Asset Management (Hong Kong) Limited (an affiliate), under which HSBC Global Asset Management (Hong Kong) Limited provides investment advice and portfolio management services to the Fund. We pay HSBC Global Asset Management (Hong Kong) Limited a fee from the Fund based on assets under management, calculated daily and paid quarterly. For more information on our ability to hire sub- advisors, see the section Organization and management of the Funds in the Fund’s Simplified Prospectus.

2 HSBC Chinese Equity Fund

HSBC Chinese Equity Fund – Investor Series – HSBC Chinese Equity Fund – Premium Series – Net Assets per Unit(1) Net Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $34.16 $29.56 $34.59 $24.66 $26.24 year (2) $19.61 $16.87 $19.63 $13.91 $14.80 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.45 0.53 0.90 0.57 0.60 Total revenue 0.24 0.30 0.52 0.33 0.35 Total expenses (1.01) (0.85) (0.88) (0.78) (0.62) Total expenses (0.46) (0.39) (0.39) (0.34) (0.27) Realized gains (losses) 4.86 1.04 1.33 4.42 (0.14) Realized gains (losses) 3.04 0.59 0.62 2.48 (0.03) Unrealized gains (losses) 6.90 3.86 (6.12) 5.83 (1.54) Unrealized gains (losses) 3.90 2.37 (3.70) 3.35 (0.70) Total increase (decrease) from Total increase (decrease) from operations (2) $11.20 $4.58 $(4.77) $10.04 $(1.70) operations (2) $6.72 $2.87 $(2.95) $5.82 $(0.65) Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) – – – – – (excluding dividends) – – – – – From dividends – – – – – From dividends – – – – (0.08) From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $– $– $– $– $– Total annual distributions (2,3) $– $– $– $– $(0.08) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $45.41 $34.16 $29.56 $34.59 $24.66 31 of year shown (2) $26.22 $19.61 $16.87 $19.63 $13.91

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value Total net asset value (in (in 000s) (4) $143,478 $130,989 $123,879 $158,292 $128,747 000s) (4) $65,051 $39,048 $33,146 $32,853 $27,880 Number of units Number of units outstanding (in outstanding (in 000s) (4) 2,481 1,991 1,964 1,673 2,004 000s) (4) 3,160 3,834 4,191 4,576 5,221 Management expense Management ratio ("MER") (5) 2.09% 2.11% 2.06% 2.04% 2.02% expense ratio MER before waivers or ("MER") (5) 2.66% 2.67% 2.63% 2.61% 2.59% absorptions (5) 2.09% 2.11% 2.06% 2.04% 2.02% MER before waivers Trading expense ratio (6) 0.29% 0.52% 0.55% 0.36% 0.33% or absorptions (5) 2.66% 2.67% 2.63% 2.61% 2.59% Portfolio turnover rate (7) 101.76% 152.82% 149.85% 88.19% 79.53% Trading expense Net asset value per ratio (6) 0.29% 0.52% 0.55% 0.36% 0.33% unit (4) $26.22 $19.61 $16.87 $19.63 $13.91

Portfolio turnover rate (7) 101.76% 152.82% 149.85% 88.19% 79.53% Net asset value per unit (4) $45.41 $34.16 $29.56 $34.59 $24.66

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) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $37.89 $32.53 $37.74 $26.71 $28.56 year (2) $43.57 $36.81 $42.05 $29.26 $31.16 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.49 0.59 1.05 0.58 0.67 Total revenue 0.55 0.67 0.89 0.67 0.73 Total expenses (0.71) (0.67) (0.65) (0.62) (0.52) Total expenses (0.11) (0.11) (0.08) (0.06) (0.05) Realized gains (losses) 5.53 1.00 1.56 5.18 – Realized gains (losses) 7.08 1.21 2.31 5.51 (0.19) Unrealized gains (losses) 7.31 4.86 (7.15) 5.07 (1.41) Unrealized gains (losses) 10.07 4.97 (7.98) 6.73 (2.18) Total increase (decrease) from Total increase (decrease) from operations (2) $12.62 $5.78 $(5.19) $10.21 $(1.26) operations (2) $17.59 $6.74 $(4.86) $12.85 $(1.69) Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) – – – – – (excluding dividends) – – – – – From dividends – – – – (0.28) From dividends – – – – (0.73) From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $– $– $– $– $(0.28) Total annual distributions (2,3) $– $– $– $– $(0.73) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $50.86 $37.89 $32.53 $37.74 $26.71 31 of year shown (2) $59.36 $43.57 $36.81 $42.05 $29.26

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net asset value (in 000s) (4) $414 $361 $373 $594 $166 000s) (4) $7,176 $3,367 $2,554 $3,808 $2,450 Number of units Number of units outstanding (in 000s) (4) 8 10 11 16 6 outstanding (in 000s) (4) 121 77 69 91 84 Management expense Management expense ratio ("MER") (5) 1.68% 1.90% 1.74% 1.86% 2.00% ratio ("MER") (5) 0.22% 0.27% 0.20% 0.17% 0.17% MER before waivers or MER before waivers or absorptions (5) 1.68% 1.90% 1.74% 1.86% 2.09% absorptions (5) 0.22% 0.27% 0.20% 0.17% 0.17% Trading expense ratio (6) 0.29% 0.52% 0.55% 0.36% 0.33% Trading expense ratio (6) 0.29% 0.52% 0.55% 0.36% 0.33% Portfolio turnover rate (7) 101.76% 152.82% 149.85% 88.19% 79.53% Portfolio turnover rate (7) 101.76% 152.82% 149.85% 88.19% 79.53% Net asset value per Net asset value per unit (4) $50.86 $37.89 $32.53 $37.74 $26.71 unit (4) $59.36 $43.57 $36.81 $42.05 $29.26

(1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial Reporting Standards (“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 time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. (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 December 31 of the year shown. (5) MER is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one mutual fund to another and from one series of units to another. We

4 HSBC Chinese Equity Fund

have waived or absorbed certain fees and expenses otherwise Year-by-Year Returns payable by the Fund. The amount of expenses absorbed or waived Years ended December 31 is at the discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for each (6) The trading expense ratio represents total commissions and other of the years shown, and illustrate how the Fund’s performance portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the year. changed from year to year. In percentage terms, the bar charts show how much an investment made on the first 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 year would have grown or decreased by the last day of turnover rate of 100% is equivalent to the Fund buying and selling each financial year. all of the securities in its portfolio once in the course of the year. The higher the Fund’s portfolio turnover rate in a year, the greater Annual Returns – Investor Series the trading costs payable by the Fund in the year, and the greater 60% the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate 40.3% and the performance of the Fund. The rate is calculated based on 40% 32.9% the lesser of purchases or sales of securities divided by the average 18.3% 20% 16.5% 15.6% weighted market value of the portfolio securities, excluding short- 11.8% 9.2% term securities. 0% Management Fees -6.0% -20% -14.6% For the year ended December 31, 2020, the Fund paid us -19.3% management fees of $3,777,630. The management fee for each -40% series is calculated as a percentage of the daily net asset value Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 for that series. The fees are reduced, where required, so that 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Annual Returns – Premium Series

60% The Fund’s management fees were used by us to pay costs for 41.1% managing the investment portfolio, providing investment 40% 33.7% analysis and recommendations, making investment decisions, 19.0% 20% 17.1% 16.2% making brokerage arrangements for the purchase and sale of 12.3% 9.9% the investment portfolio and providing other services. The management fees also funded commission payments and other 0% compensation (collectively “distribution costs”) to sales -5.5% -20% -14.1% representatives and registered dealers and brokers, including -18.9% HSBC Investment Funds (Canada) Inc., for units of the Fund -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 bought and held by unitholders. Finally, we used management 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 fees to pay for additional marketing and distribution services to the Fund. Annual Returns – Manager Series

For the year ended December 31, 2020, approximately 46% of 60% the total management fees collected from all HSBC Mutual 41.3% Funds were used to fund distribution costs. In comparison, for 40% 34.2% the Fund, such distribution costs represented 43% of the 19.6% 20% 17.8% 16.5% management fees collected. This may vary by series depending 13.0% 10.0% on the assets invested in each of the series. 0% -5.5% Past Performance -20% -13.8% -18.4% The performance information shown assumes that all distributions made by the Fund in the years shown were -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 reinvested in additional securities of the Fund. The performance 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 information does not take into account sales, 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 performance of different fund series may vary for a number of reasons, including differences in management fees and expenses. The Fund’s past performance does not necessarily indicate how it will perform in the future.

5 HSBC Chinese Equity Fund

Annual Returns – Institutional Series Summary of Investment Portfolio

60% As at December 31, 2020

43.7% 40% 36.2% Sector Mix 19.4% 21.2% 18.4% 20% 14.6% 11.9% Percentage of NAV 0% Consumer Discretionary 33.51% -3.7% Financials 13.17% -20% -12.5% -17.3% Industrials 12.04% -40% Communication Services 11.58% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Health Care 9.89% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Consumer Staples 7.95% Information Technology 7.11% Annual Compound Returns Materials 2.01% Year ended December 31, 2020 Utilities 1.30% The following tables show the Fund’s historical annual Real Estate 0.98% compound total returns for the years indicated, compared with Energy 0.53% Cash & Equivalents -0.07% the benchmark index, the MSCI China 10/40 Net Index (in Total 100.00% Canadian dollars), over the same period. The MSCI China 10/40 Net Index measures the performance of a broad range of stocks traded in China and Hong Kong. This index is tracked in US Top 25 Holdings dollars and was converted to Canadian dollars. The MSCI 10/40 Percentage Indexes constrain the weight of any single group entity at 10%, of NAV and the sum of the weights of all group entities representing Tencent Holdings Ltd. 8.78% more than 5% weight at 40%, with a buffer of 10% applied on Alibaba Group Holding Ltd., ADR 6.17% these limits at each index rebalancing. Meituan 5.99% Kweichow Moutai Co., Ltd. 5.47% Investor Series Ping An Insurance (Group) Co. of China Ltd., Class H 4.70% Luxshare Precision Industry Co., Ltd. 3.76% 1 Year 3 Year 5 Year 10 Year China Merchants Bank Co., Ltd., Class H 3.39% HSBC Chinese Equity Fund 32.93% 9.49% 11.59% 8.91% Contemporary Amperex Technology Co., Ltd. 3.20% MSCI China 10/40 Net Index (C$) 28.46% 9.91% 12.43% 10.06% JD.com Inc. 3.12% Manager Series China Construction Bank Corp., Class H 2.75% New Oriental Education & Technology Group Inc., ADR 2.63% 1 Year 3 Year 5 Year 10 Year WuXi Biologics (Cayman) Inc. 2.55% HSBC Chinese Equity Fund 34.25% 10.46% 12.47% 9.90% China Tourism Group Duty Free Corp., Ltd. 2.54% MSCI China 10/40 Net Index (C$) 28.46% 9.91% 12.43% 10.06% Great Wall Motor Co., Ltd. 2.16%

Pharmaron Beijing Co., Ltd. 2.11% Institutional Series Li Ning Co., Ltd. 2.07% Zijin Mining Group Co., Ltd., Class H 2.01% 1 Year 3 Year 5 Year 10 Year Pinduoduo Inc. 2.00% HSBC Chinese Equity Fund 36.22% 12.18% 14.33% 11.61% China Mengniu Dairy Co., Ltd. 1.66% MSCI China 10/40 Net Index (C$) 28.46% 9.91% 12.43% 10.06% Sany Heavy Industry Co., Ltd. 1.62% Premium Series Sunny Optical Technology Group Co., Ltd. 1.62% Baidu Inc., ADR 1.52% 1 Year 3 Year 5 Year 10 Year Taiwan Semiconductor Manufacturing Co., Ltd. 1.52% HSBC Chinese Equity Fund 33.72% 10.12% 12.24% 9.53% Jiangsu Hengrui Medicine Co., Ltd. 1.36% MSCI China 10/40 Net Index (C$) 28.46% 9.91% 12.43% 10.06% Sino Biopharmaceutical Ltd. 1.36% (1) Due to the fact that several benchmark indices are only available on Total of Top 25 Holdings 76.06% a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- end date each Fund was in operation. (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations section of this report.

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

6 HSBC Chinese Equity Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC Indian Equity Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Indian Equity Fund

To achieve its objectives, the Fund will invest primarily in equity The Fund’s favourable stock selection in information technology and equity-related securities of publicly traded companies contributed to performance in 2020, while stock selection in the registered, or with an official listing, on a stock exchange in communication and consumer staples sectors detracted. India, as well as securities of public companies that have a significant business or investment link with India. To maintain a Recent Developments diversified portfolio of holdings, the Fund invests in companies The portfolio management team believes India has powerful from a broad range of industries through common shares, structural growth drivers – demographics and increasing preferred shares, rights, warrants, American depositary receipts urbanization, the need for infrastructure and the ability to and global depositary receipts. A portion of the Fund may be in absorb capital – which should continue over the medium to the form of cash or cash equivalents. long term. Risk The portfolio is tilted toward cyclicals on the expectation of an improved economic outlook due to earnings recovery and The risks of investing in this Fund remain as discussed in the optimism over the broad-based availability of a COVID-19 Simplified Prospectus. During the year, there were no material changes to the Fund that affected the overall risk level of vaccine. The portfolio management team will maintain its the Fund. current stance, while weeding out the weak links in the portfolio, consolidating existing holdings and investing in new This Fund is suitable for investors seeking long-term capital names that were earlier avoided due to high valuations. appreciation and who have a long-term investment time horizon and a high tolerance for risk in their returns.

1 HSBC Indian Equity Fund

Looking ahead, potential risks include a slower than expected servicing fees to them based on the amount of assets held in recovery from COVID-19 and slower vaccine rollout and the investor’s account, and additionally, in some cases, on the distribution in India, credit risks in the financial sector if non amount of the initial purchase. If you hold units of this Fund performing loans rise sharply, and potential sovereign and/or other HSBC Mutual Funds in a registered plan with ratings downgrades. HSBC Investment Funds (Canada) Inc., they may charge you an annual fee to cover the annual administration costs of the plan. During the period there has been a change in composition to We permit HSBC Investment Funds (Canada) Inc. to collect the Independent Review Committee (the “IRC”). Effective these fees by redeeming sufficient units of the Fund with the March 25, 2020, Ms. Louise Tymocko was appointed to the IRC highest market value in your registered plan. as a member, replacing Mr. William (Bill) Bakk who left as his term of office expired. Ms. Lisa Pankratz also took over as Chair Financial Highlights of the IRC effective March 25, 2020. In addition, effective The following tables show selected key financial information February 18, 2021, Ms. Sharon Morrisroe was also appointed to about the Fund and are intended to help you understand the the IRC as a member, replacing Mr. Neil de Gelder who left Fund’s financial performance for the past five years. This following the expiry of his term in March of 2021. information is derived from the Fund’s audited annual financial Related Party Transactions statements. The information in the following tables is based on We, on behalf of the Fund, or the Fund Manager, may, from prescribed regulations, and, as a result, is not expected to add time to time, enter into transactions or arrangements with or down due to the increase/decrease in net assets from involving other members of the HSBC Group or other people or operations being based on average units outstanding during the companies related or connected to us or the Fund. To proceed year and all other numbers being based on actual units with the transactions, the Fund relies on the positive outstanding at the relevant point in time. recommendation of the Fund’s Independent Review Committee. A condition of this positive recommendation is that the transactions HSBC Indian Equity Fund – Investor Series – Net are performed in accordance with our policy on Related Party (1) Transactions. For more general information on persons related Assets per Unit to the Fund and the types of potential transactions, see the Year(s) ended December 31 Fund’s Simplified Prospectus. 2020 2019 2018 2017 2016 Net assets per unit, beginning of The following is a summary of current transactions and year (2) $11.61 $11.81 $12.96 $9.88 $10.52 arrangements with entities that are related to us or the Fund. Increase (decrease) from operations: Manager, Trustee and Investment Advisor Total revenue 0.10 0.12 0.18 0.26 0.16 We are the manager, trustee and primary investment advisor of Total expenses (0.32) (0.38) (0.39) (0.38) (0.31) the Fund. As manager, we manage the overall business and Realized gains (losses) 0.20 0.48 0.65 1.46 (0.24) operations of the Fund. As trustee, we hold legal title to the Unrealized gains (losses) 0.62 (0.43) (1.65) 1.86 (0.32) property of the Fund on your behalf. As primary investment Total increase (decrease) from advisor, we provide investment advice and portfolio operations (2) $0.60 $(0.21) $(1.21) $3.20 $(0.71) management services to the Fund. We receive a fee from the Distributions to unitholders: Fund for these services based on assets under management, From net investment income calculated daily and paid monthly. (excluding dividends) – – – – – From dividends – – – – – We have entered into a sub-advisory agreement with HSBC From capital gains – – – – – Return of capital – – – – – Global Asset Management (Hong Kong) Limited (an affiliate), under which HSBC Global Asset Management (Hong Total annual distributions (2,3) $– $– $– $– $– Kong) Limited provides investment advice and portfolio Net assets per unit at December 31 of year shown (2) $12.36 $11.61 $11.81 $12.96 $9.88 management services to the Fund. We pay HSBC Global Asset Management (Hong Kong) Limited a fee from the Fund based on assets under management, calculated daily and paid quarterly. For more information on our ability to hire sub- advisors, see the section Organization and management of the Funds in the Fund’s Simplified Prospectus.

2 HSBC Indian Equity Fund

Ratios and Supplemental Data HSBC Indian Equity Fund – Manager Series – (1) 2020 2019 2018 2017 2016 Net Assets per Unit Year(s) ended December 31 Total net asset value (in 000s) (4) $12,517 $13,410 $15,734 $19,000 $18,881 2020 2019 2018 2017 2016 Number of units Net assets per unit, beginning of outstanding (in 000s) (4) 1,013 1,155 1,332 1,466 1,911 year (2) $12.88 $12.95 $14.06 $10.61 $11.18 Management expense ratio ("MER") (5) 3.11% 3.26% 3.25% 3.27% 3.26% Increase (decrease) from MER before waivers or operations: absorptions (5) 3.95% 3.73% 3.64% 4.17% 3.43% Total revenue 0.10 0.13 0.19 0.28 0.17 Trading expense ratio (6) 0.21% 0.14% 0.10% 0.14% 0.16% Total expenses (0.24) (0.26) (0.28) (0.28) (0.23) Portfolio turnover rate (7) 41.32% 26.99% 22.03% 26.40% 22.06% Realized gains (losses) 0.50 0.54 0.71 1.52 (0.23) Net asset value per unit (4) $12.36 $11.61 $11.81 $12.96 $9.88 Unrealized gains (losses) 3.37 (0.01) (1.82) 2.03 (0.33)

Total increase (decrease) from operations (2) $3.73 $0.40 $(1.20) $3.55 $(0.62) HSBC Indian Equity Fund – Premium Series – (1) Distributions to unitholders: Net Assets per Unit From net investment income Year(s) ended December 31 (excluding dividends) – – – – – 2020 2019 2018 2017 2016 From dividends – – – – – From capital gains – – – – – Net assets per unit, beginning of Return of capital – – – – – year (2) $11.33 $11.46 $12.50 $9.48 $10.03 Total annual distributions (2,3) $– $– $– $– $– Increase (decrease) from Net assets per unit at December operations: 31 of year shown (2) $13.86 $12.88 $12.95 $14.06 $10.61 Total revenue 0.09 0.12 0.17 0.26 0.16 Total expenses (0.26) (0.30) (0.31) (0.31) (0.24) Realized gains (losses) 0.08 0.44 0.63 1.29 (0.21) Unrealized gains (losses) 0.93 (0.08) (1.61) 1.74 (0.15) Ratios and Supplemental Data Total increase (decrease) from 2020 2019 2018 2017 2016 operations (2) $0.84 $0.18 $(1.12) $2.98 $(0.44) Total net asset value (in Distributions to unitholders: 000s) (4) $256 $117 $92 $70 $83 From net investment income Number of units outstanding (excluding dividends) – – – – – (in 000s) (4) 18 9 7 5 8 From dividends – – – – – Management expense ratio From capital gains – – – – – ("MER") (5) 2.07% 2.07% 2.19% 2.24% 2.25% Return of capital – – – – – MER before waivers or absorptions (5) 3.13% 4.33% 3.67% 4.57% 3.46% Total annual distributions (2,3) $– $– $– $– $– Trading expense ratio (6) 0.21% 0.14% 0.10% 0.14% 0.16% Net assets per unit at December Portfolio turnover rate (7) 41.32% 26.99% 22.03% 26.40% 22.06% 31 of year shown (2) $12.12 $11.33 $11.46 $12.50 $9.48 Net asset value per unit (4) $13.86 $12.88 $12.95 $14.06 $10.61

Ratios and Supplemental Data 2020 2019 2018 2017 2016 Total net asset value (in 000s) (4) $3,007 $3,164 $3,392 $3,097 $1,822 Number of units outstanding (in 000s) (4) 248 279 296 248 192 Management expense ratio ("MER") (5) 2.62% 2.69% 2.71% 2.76% 2.57% MER before waivers or absorptions (5) 3.46% 3.18% 3.09% 3.75% 2.93% Trading expense ratio (6) 0.21% 0.14% 0.10% 0.14% 0.16% Portfolio turnover rate (7) 41.32% 26.99% 22.03% 26.40% 22.06% Net asset value per unit (4) $12.12 $11.33 $11.46 $12.50 $9.48

3 HSBC Indian Equity Fund

HSBC Indian Equity Fund – Institutional Series – have waived or absorbed certain fees and expenses otherwise Net Assets per Unit(1) payable by the Fund. The amount of expenses absorbed or waived Year(s) ended December 31 is at the discretion of and can be terminated at any time by us. (6) The trading expense ratio represents total commissions and other 2020 2019 2018 2017 2016 portfolio transaction costs expressed as an annualized percentage Net assets per unit, beginning of of daily average net asset value during the year. year (2) $14.12 $14.02 $15.02 $11.16 $11.60 (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Increase (decrease) from portfolio advisor manages its portfolio investments. A portfolio operations: turnover rate of 100% is equivalent to the Fund buying and selling Total revenue 0.12 0.15 0.20 0.29 0.18 all of the securities in its portfolio once in the course of the year. Total expenses (0.09) (0.12) (0.11) (0.12) (0.09) The higher the Fund’s portfolio turnover rate in a year, the greater Realized gains (losses) (0.03) 0.65 0.76 1.84 (0.26) the trading costs payable by the Fund in the year, and the greater Unrealized gains (losses) (0.08) (0.87) (1.41) 1.75 (0.11) the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate Total increase (decrease) from and the performance of the Fund. The rate is calculated based on operations (2) $(0.08) $(0.19) $(0.56) $3.76 $(0.28) the lesser of purchases or sales of securities divided by the average Distributions to unitholders: weighted market value of the portfolio securities, excluding short- From net investment income term securities. (excluding dividends) – – – – – From dividends – – – – – Management Fees From capital gains – – – – – For the year ended December 31, 2020, the Fund paid us Return of capital – – – – – management fees of $301,684. The management fee for each Total annual distributions (2,3) $– $– $– $– $– series is calculated as a percentage of the daily net asset value Net assets per unit at December for that series. The fees are reduced, where required, so that 31 of year shown (2) $15.39 $14.12 $14.02 $15.02 $11.16 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Ratios and Supplemental Data The Fund’s management fees were used by us to pay costs for 2020 2019 2018 2017 2016 managing the investment portfolio, providing investment Total net asset value (in analysis and recommendations, making investment decisions, 000s) (4) $26 $83 $127 $70 $36 making brokerage arrangements for the purchase and sale of Number of units outstanding the investment portfolio and providing other services. The (in 000s) (4) 2 6 9 5 3 management fees also funded commission payments and other Management expense ratio ("MER") (5) 0.71% 0.82% 0.84% 0.87% 0.85% compensation (collectively “distribution costs”) to sales MER before waivers or representatives and registered dealers and brokers, including absorptions (5) 2.64% 2.49% 2.30% 3.55% 3.18% HSBC Investment Funds (Canada) Inc., for units of the Fund Trading expense ratio (6) 0.21% 0.14% 0.10% 0.14% 0.16% bought and held by unitholders. Finally, we used management Portfolio turnover rate (7) 41.32% 26.99% 22.03% 26.40% 22.06% fees to pay for additional marketing and distribution services to Net asset value per unit (4) $15.39 $14.12 $14.02 $15.02 $11.16 the Fund. (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial For the year ended December 31, 2020, approximately 46% of Reporting Standards (“IFRS”). Under IFRS, the net assets per unit the total management fees collected from all HSBC Mutual presented in the financial statements is the same as the net asset Funds were used to fund distribution costs. In comparison, for value calculated for fund pricing purposes. the Fund, such distribution costs represented 40% of the (2) Net assets per unit and distributions per unit are based on the management fees collected. This may vary by series depending actual number of units outstanding for the relevant series at the on the assets invested in each of the series. relevant time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. Past Performance The performance information shown assumes that all (3) Distributions are automatically reinvested in additional units of the distributions made by the Fund in the years shown were Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, (4) This information is provided as at December 31 of the year shown. distribution, optional charges or expenses you may be charged (5) MER is based on total expenses (excluding distributions, outside of the Fund or the effect of any income tax you may commissions and other portfolio transaction costs) for the stated have to pay as a result of your investment in the Fund that year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one would have reduced returns or performance. The performance mutual fund to another and from one series of units to another. We of different fund series may vary for a number of reasons, including differences in management fees and expenses. The Fund’s past performance does not necessarily indicate how it will perform in the future.

4 HSBC Indian Equity Fund

Year-by-Year Returns Annual Returns – Institutional Series

Years ended December 31 80% The following bar charts show the Fund’s performance for each 60% 46.8% 37.7% of the years shown, and illustrate how the Fund’s performance 40% 34.6% changed from year to year. In percentage terms, the bar charts 20% 6.6% 9.0% show how much an investment made on the first day of each 0.7% 0% financial year would have grown or decreased by the last day of -3.8% -20% -7.3% -6.6% each financial year. -40% Annual Returns – Investor Series -60% -46.2% -80% 80% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 60% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 43.3% 40% 34.3% 31.2% 20% Annual Compound Returns 4.2% 6.4% 0% Year ended December 31, 2020 -1.7% The following tables show the Fund’s historical annual -20% -9.6% -6.1% -8.9% compound total returns for the years indicated, compared with -40% the benchmark index, the S&P/IFCI India Investable Index (in -47.5% -60% Canadian dollars), over the same period. This index measures -80% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 the performance of stocks traded in India. It is tracked in US 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 dollars and was converted to Canadian dollars.

Annual Returns – Premium Series Investor Series

80% 1 Year 3 Year 5 Year 10 Year 60% HSBC Indian Equity Fund 6.45% -1.58% 3.27% 1.12% 44.0% S&P/IFCI India Investable Index (C$) 14.58% 4.94% 8.95% 7.49% 40% 35.0% 31.9% 20% 4.7% 7.0% Manager Series 0% 1 Year 3 Year 5 Year 10 Year -5.5% -1.1% -20% -8.8% -8.4% HSBC Indian Equity Fund 7.59% -0.48% 4.38% 2.18% -40% S&P/IFCI India Investable Index (C$) 14.58% 4.94% 8.95% 7.49%

-47.3% -60% Institutional Series -80% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 1 Year 3 Year 5 Year 10 Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 HSBC Indian Equity Fund 8.98% 0.82% 5.82% 3.61% S&P/IFCI India Investable Index (C$) 14.58% 4.94% 8.95% 7.49% Annual Returns – Manager Series

80% Premium Series

60% 44.7% 1 Year 3 Year 5 Year 10 Year 40% 35.8% 32.5% HSBC Indian Equity Fund 6.99% -1.03% 3.86% 1.70% S&P/IFCI India Investable Index (C$) 14.58% 4.94% 8.95% 7.49% 20% 5.2% 7.6% 0% (1) Due to the fact that several benchmark indices are only available on -0.5% a monthly basis, the performance data for the HSBC Funds and the -20% -8.6% -5.1% -7.9% benchmark indices are calculated using values from the first month- -40% end date each Fund was in operation. -60% -47.0% (2) For investment commentary and relative performance of the Fund -80% compared to its benchmark, please refer to the Results of Operations Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 section of this report. 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

5 HSBC Indian Equity Fund

Summary of Investment Portfolio As at December 31, 2020

Sector Mix Percentage of NAV

Financials 31.80% Information Technology 16.37% Energy 9.70% Consumer Discretionary 7.98% Materials 7.29% Consumer Staples 6.26% Health Care 6.26% Communication Services 4.82% Real Estate 3.42% Industrials 2.69% Utilities 1.25% Cash & Equivalents 2.16% Total 100.00%

Top 25 Holdings Percentage of NAV

Reliance Industries Ltd. 8.54% ICICI Bank Ltd. 7.97% Infosys Ltd., ADR 6.50% Axis Bank Ltd. 5.13% HDFC Bank Ltd. 4.75% HCL Technologies Ltd. 4.71% Housing Development Finance Corp., Ltd. 4.41% Maruti Suzuki India Ltd. 3.76% DLF Ltd. 3.42% Bharti Airtel Ltd. 3.07% Infosys Ltd. 3.00% Sun Pharmaceutical Industries Ltd. 2.99% Hindustan Unilever Ltd. 2.80% Larsen & Toubro Ltd. 2.69% SBI Life Insurance Co., Ltd. 2.56% Tata Consultancy Services Ltd. 2.16% UltraTech Cement Ltd. 2.08% Grasim Industries Ltd. 2.04% Asian Paints Ltd. 1.99% Titan Co., Ltd. 1.92% Kotak Mahindra Bank Ltd. 1.83% Zee Entertainment Enterprises Ltd. 1.75% State Bank of India 1.55% ITC Ltd. 1.42% UTI Asset Management Co., Ltd. 1.40% Total of Top 25 Holdings 84.44%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

6 HSBC Indian Equity Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC Emerging Markets Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Emerging Markets Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the This Fund is suitable for investors seeking long-term capital Fund; we, us and our refer to HSBC Global Asset Management appreciation from equity securities issued in emerging markets. (Canada) Limited; and the Fund refers to the HSBC Emerging Investors in this Fund should have a long-term investment time Markets Fund. horizon and a medium to high tolerance for risk in their returns. We are the manager, trustee and primary investment advisor of Results of Operations the Fund. We have entered into a sub-advisory agreement with As of December 31, 2020, the Fund's net assets decreased by HSBC Global Asset Management (UK) Limited, under which 14.3% to $69.3 million from $80.9 million at the end of 2019. HSBC Global Asset Management (UK) Limited provides Net withdrawals, partially offset by positive investment investment advice and portfolio management services to the performance, resulted in an overall decrease in net asset value. Fund. For an explanation of the relationship between us and the sub-advisor, see the section Selection of Sub-Advisors in the Investment Performance Fund’s Simplified Prospectus. The HSBC Emerging Markets Fund (Investor Series) rose 21.46% for the 12 months ending December 31, 2020, while Introduction the benchmark MSCI Emerging Markets Net Index (C$) rose This Annual Management Report of Fund Performance contains 16.23% over the same period. The Fund’s returns are after the financial highlights but does not contain the complete annual deduction of fees and expenses, while the benchmark’s returns financial statements of the Fund. You may obtain a copy of the do not include any costs of investing. See the Past Performance annual financial statements at your request, at no cost, by section for the returns of other series of the Fund, which may calling us toll-free at 1-888-390-3333, by visiting our website at vary due to differences in management fees and expenses. www.assetmanagement.hsbc.ca, by visiting the SEDAR website at www.sedar.com or by writing to us at: The Fund’s stock selection contributed to its outperformance against the benchmark. Contributors to performance came HSBC Global Asset Management (Canada) Limited from the strategy’s exposure to the climate change megatrend, rd 3 Floor, 885 West Georgia Street including positions in Xinyi Solar Holdings, a photovoltaic glass Vancouver, BC V6C 3E8 maker and downstream solar farm operator, which rallied more You may also contact us using one of these methods to request a than 250% in 2020, wind farm operator China Longyuan Power copy of the Fund’s interim financial report, proxy voting policies Group and wind turbine maker Xinjiang Goldwind. and procedures, proxy voting disclosure record or quarterly Partially offsetting these gains was the Fund’s position in Banco portfolio disclosure. do Brasil, which lagged with other emerging market banks as Investment Objective and Strategies lockdown measures resulted in a slowing of the economy. The fundamental investment objective of this Fund is to provide Country and sector allocation effects were residual to stock long-term capital growth. selection. At the sector level, allocation effects were negative given the Fund’s underweight exposure to communication To achieve its objectives, the Fund invests primarily in equities services. At the country level, effects were negative given an and equity-related securities of publicly traded companies overweight exposure to mainland China. whose main operations are located in emerging markets around the world. This includes securities of companies domiciled or During the period, the Fund added holdings in companies that listed on stock exchanges in developed countries but which include Absa Group, China Construction Bank, Gentera, have a significant business or investment link with an emerging PagSeguro and Weichai Power. The Fund sold positions in country. To maintain a diversified portfolio of holdings, the companies that include Anhui Conch Cement, Gazprom, JSW Fund invests in companies from a broad range of industries Steel, Prosus and the State Bank of India. through common shares, preferred shares, rights, warrants, American depositary receipts and global depositary receipts. A Recent Developments portion of the Fund may be in the form of cash or The portfolio management team continues to focus on cash equivalents. companies with an attractive combination of profitability and valuation. The team combines proprietary fundamental Risk research with integrated analysis of environmental, social and The risks of investing in the Fund remain as discussed in the governance issues to confirm investment opportunities, and Simplified Prospectus. During the year, there were no material leverages proprietary and third-party portfolio construction and changes to the Fund that affected the overall risk level of risk management tools to identify and manage risk exposures. the Fund.

1 HSBC Emerging Markets Fund

The portfolio management team believes the outlook for servicing fees to them based on the amount of assets held in emerging market asset classes has recently brightened amid the investor’s account, and additionally, in some cases, on the vaccine developments and dollar liquidity conditions. Emerging amount of the initial purchase. If you hold units of this Fund markets in Asia should benefit from mainland China’s V- and/or other HSBC Mutual Funds in a registered plan with shaped recovery. HSBC Investment Funds (Canada) Inc., they may charge you an annual fee to cover the annual administration costs of the plan. During the period there has been a change in composition to We permit HSBC Investment Funds (Canada) Inc. to collect the Independent Review Committee (the “IRC”). Effective these fees by redeeming sufficient units of the Fund with the March 25, 2020, Ms. Louise Tymocko was appointed to the IRC highest market value in your registered plan. as a member, replacing Mr. William (Bill) Bakk who left as his term of office expired. Ms. Lisa Pankratz also took over as Chair Related Brokerage Commissions of the IRC effective March 25, 2020. In addition, effective From time to time, the Fund may enter into purchases and February 18, 2021, Ms. Sharon Morrisroe was also appointed to sales of securities, derivative instruments, foreign exchange the IRC as a member, replacing Mr. Neil de Gelder who left contracts or other instruments with The Hongkong & Shanghai following the expiry of his term in March of 2021. Banking Corporation Limited, HSBC Securities (Asia) Ltd. or Related Party Transactions other dealers that are members of the HSBC Group (“Related We, on behalf of the Fund, or the Fund Manager, may, from Brokers”). These Related Brokers may earn commissions or time to time, enter into transactions or arrangements with or spreads provided that such trades are made on terms and involving other members of the HSBC Group or other people or conditions comparable to those offered by or to unrelated companies related or connected to us or the Fund. To proceed parties. During the year ended December 31, 2020, the Fund with the transactions, the Fund relies on the positive paid commissions to Related Brokers amounting to $504 recommendation of the Fund’s Independent Review Committee. A (December 31, 2019 – $176). condition of this positive recommendation is that the transactions are performed in accordance with our policy on Related Party Financial Highlights Transactions. For more general information on persons related The following tables show selected key financial information to the Fund and the types of potential transactions, see the about the Fund and are intended to help you understand the Fund’s Simplified Prospectus. Fund’s financial performance for the past five years. This information is derived from the Fund’s audited annual financial The following is a summary of current transactions and statements. The information in the following tables is based on arrangements with entities that are related to us or the Fund. prescribed regulations, and, as a result, is not expected to add Manager, Trustee and Investment Advisor down due to the increase/decrease in net assets from We are the manager, trustee and primary investment advisor of operations being based on average units outstanding during the the Fund. As manager, we manage the overall business and year and all other numbers being based on actual units operations of the Fund. As trustee, we hold legal title to the outstanding at the relevant point in time. property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Fund for these services based on assets under management, calculated daily and paid monthly. We have entered into a sub-advisory agreement with HSBC Global Asset Management (UK) Limited (an affiliate), under which HSBC Global Asset Management (UK) Limited provides investment advice and portfolio management services to the Fund. We pay HSBC Global Asset Management (UK) Limited an investment advisory fee from the Fund based on assets under management, calculated daily and paid quarterly. For more information on our ability to hire sub-advisors, see the section Organization and Management of the HSBC Mutual Funds in the Fund’s Simplified Prospectus.

2 HSBC Emerging Markets Fund

HSBC Emerging Markets Fund – Investor Series HSBC Emerging Markets Fund – Premium – Net Assets per Unit(1) Series – Net Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $11.00 $9.80 $11.03 $8.73 $8.04 year (2) $11.65 $10.39 $11.69 $9.27 $8.52 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.19 0.53 0.36 0.28 0.25 Total revenue 0.21 0.57 0.40 0.29 0.26 Total expenses (0.31) (0.29) (0.30) (0.29) (0.23) Total expenses (0.26) (0.25) (0.25) (0.27) (0.21) Realized gains (losses) 1.27 0.20 0.20 0.82 (0.34) Realized gains (losses) 0.66 0.26 0.15 0.85 (0.46) Unrealized gains (losses) 1.08 0.88 (1.48) 1.53 0.98 Unrealized gains (losses) (0.22) 0.72 (1.95) 1.68 1.15 Total increase (decrease) from Total increase (decrease) from operations (2) $2.23 $1.32 $(1.22) $2.34 $0.66 operations (2) $0.39 $1.30 $(1.65) $2.55 $0.74 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) – – – – – (excluding dividends) – – – – – From dividends – (0.14) (0.04) – – From dividends – (0.22) (0.11) (0.06) (0.02) From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $– $(0.14) $(0.04) $– $– Total annual distributions (2,3) $– $(0.22) $(0.11) $(0.06) $(0.02) Net assets per unit at December 31 Net assets per unit at December 31 of year shown (2) $13.36 $11.00 $9.80 $11.03 $8.73 of year shown (2) $14.22 $11.65 $10.39 $11.69 $9.27

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net asset value (in 000s) (4) $7,267 $6,647 $6,619 $7,390 $7,063 000s) (4) $527 $1,060 $1,099 $716 $579 Number of units Number of units outstanding (in 000s) (4) 544 604 675 670 809 outstanding (in 000s) (4) 37 91 106 61 62 Management expense Management expense ratio ("MER") (5) 2.88% 2.83% 2.86% 2.87% 2.77% ratio ("MER") (5) 2.32% 2.32% 2.25% 2.54% 2.43% MER before waivers or MER before waivers or absorptions (5) 2.91% 2.83% 2.86% 2.87% 2.77% absorptions (5) 2.32% 2.32% 2.25% 2.54% 2.43% Trading expense ratio (6) 0.65% 0.37% 0.20% 0.21% 0.40% Trading expense ratio (6) 0.65% 0.37% 0.20% 0.21% 0.40% Portfolio turnover rate (7) 242.79% 138.89% 66.01% 49.42% 102.19% Portfolio turnover rate (7) 242.79% 138.89% 66.01% 49.42% 102.19% Net asset value per Net asset value per unit (4) $13.36 $11.00 $9.80 $11.03 $8.73 unit (4) $14.22 $11.65 $10.39 $11.69 $9.27

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) Year(s) ended December 31 Year(s) ended December 31 2020* 2019* 2018* 2017* 2016* 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $– $– $– $– $– year (2) $21.20 $18.88 $21.26 $16.81 $15.43 Increase (decrease) from operations: Increase (decrease) from Total revenue – – – – – operations: Total expenses – – – – – Total revenue 0.37 1.04 0.69 0.55 0.48 Realized gains (losses) – – – – – Total expenses (0.08) (0.07) (0.08) (0.08) (0.05) Unrealized gains (losses) – – – – – Realized gains (losses) 2.16 0.34 0.31 1.58 (0.63) Unrealized gains (losses) 1.63 1.66 (2.86) 2.98 2.00 Total increase (decrease) from operations (2) $– $– $– $– $– Total increase (decrease) from operations (2) $4.08 $2.97 $(1.94) $5.03 $1.80 Distributions to unitholders: From net investment income Distributions to unitholders: (excluding dividends) – – – – – From net investment income From dividends – – – – – (excluding dividends) – – – – – From capital gains – – – – – From dividends (0.34) (0.79) (0.55) (0.50) (0.36) Return of capital – – – – – From capital gains – – – – – Return of capital – – – – – Total annual distributions (2,3) $– $– $– $– $– Total annual distributions (2,3) $(0.34) $(0.79) $(0.55) $(0.50) $(0.36) Net assets per unit at December 31 of year shown (2) $– $– $– $– $– Net assets per unit at December

31 of year shown (2) $26.04 $21.20 $18.88 $21.26 $16.81

Ratios and Supplemental Data 2020* 2019* 2018* 2017* 2016* Ratios and Supplemental Data 2020 2019 2018 2017 2016 Total net asset value (in 000s) (4) $– $– $– $– $– Number of units outstanding (in Total net asset value (in 000s) (4) – – – – – 000s) (4) $61,547 $73,185 $66,684 $63,318 $54,411 Management expense ratio Number of units ("MER") (5) – – – – – outstanding (in 000s) (4) 2,363 3,452 3,532 2,978 3,237 MER before waivers or Management expense absorptions (5) – – – – – ratio ("MER") (5) 0.40% 0.36% 0.39% 0.42% 0.30% Trading expense ratio (6) – – – – 0.40% MER before waivers or Portfolio turnover rate (7) – – – – 102.19% absorptions (5) 0.40% 0.36% 0.39% 0.42% 0.30% Net asset value per unit (4) $– $– $– $– $– Trading expense ratio (6) 0.65% 0.37% 0.20% 0.21% 0.40% Portfolio turnover rate (7) 242.79% 138.89% 66.01% 49.42% 102.19% * The Manager Series was fully redeemed during 2013. In the Net asset value per subsequent years, there were no unitholders for the full calendar unit (4) $26.04 $21.20 $18.88 $21.26 $16.81 year; however, it remains in offer as at period-end. (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial Reporting Standards (“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 time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. (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 December 31 of the year shown. (5) MER is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated

4 HSBC Emerging Markets Fund

year and is expressed as an annualized percentage of daily average Year-by-Year Returns net asset value during the year. The MER may vary from one Years ended December 31 mutual fund to another and from one series of units to another. The following bar charts show the Fund’s performance for each (6) The trading expense ratio represents total commissions and other of the years shown, and illustrate how the Fund’s performance portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the year. changed from year to year. In percentage terms, the bar charts show how much an investment made on the first 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 year would have grown or decreased by the last day of turnover rate of 100% is equivalent to the Fund buying and selling each financial year. all of the securities in its portfolio once in the course of the year. The higher the Fund’s portfolio turnover rate in a year, the greater Annual Returns – Investor Series the trading costs payable by the Fund in the year, and the greater 40% the chance of an investor receiving taxable capital gains in the year. 30% 26.3% There is not necessarily a relationship between a high turnover rate 21.5% and the performance of the Fund. The rate is calculated based on 20% 16.1% 13.7% the lesser of purchases or sales of securities divided by the average 8.6% 10% 6.8% weighted market value of the portfolio securities, excluding short- term securities. 0% -10% -4.8% -3.6% -10.8% Management Fees -20% For the year ended December 31, 2020, the Fund paid us -30% -26.7% management fees of $147,108. The management fee for each -40% series is calculated as a percentage of the daily net asset value Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 for that series. The fees are reduced, where required, so that 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Annual Returns – Premium Series

40% The Fund’s management fees were used by us to pay costs for 30% 26.8% managing the investment portfolio, providing investment 22.0% 20% 16.8% analysis and recommendations, making investment decisions, 14.2% 7.4% 9.0% making brokerage arrangements for the purchase and sale of 10% the investment portfolio and providing other services. The 0% management fees also funded commission payments and other -10% -4.0% -3.4% -10.2% compensation (collectively “distribution costs”) to sales -20% representatives and registered dealers and brokers, including -30% -26.3% HSBC Investment Funds (Canada) Inc., for units of the Fund -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 bought and held by unitholders. Finally, we used management 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 fees to pay for additional marketing and distribution services to the Fund. Annual Returns – Manager Series

For the year ended December 31, 2020, approximately 46% of 40% the total management fees collected from all HSBC Mutual 30% Funds were used to fund distribution costs. In comparison, for 20% 17.5% the Fund, such distribution costs represented 43% of the 10% management fees collected. This may vary by series depending 0% on the assets invested in each of the series. -10% Past Performance -20% The performance information shown assumes that all -30% -25.7% distributions made by the Fund in the years shown were -40% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 reinvested in additional securities of the Fund. The performance 2011 2012 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* information does not take into account sales, redemption, * The Manager Series was fully redeemed during 2013. In the subse distribution, optional charges or expenses you may be charged quent years, there were no unitholders for the full calendar year; outside of the Fund or the effect of any income tax you may however, it remains in offer as at period-end. have to pay as a result of your investment in the Fund that would have reduced returns or performance. The performance of different fund series may vary for a number of reasons, including differences in management fees and expenses. The Fund’s past performance does not necessarily indicate how it will perform in the future.

5 HSBC Emerging Markets Fund

Annual Returns – Institutional Series Summary of Investment Portfolio

40% As at December 31, 2020 29.5% 30% 24.5% 19.1% 20% 16.5% 9.4% 11.3% Sector Mix 10% Percentage 0% of NAV -1.2% -10% -2.5% -8.5% Information Technology 27.67% -20% Financials 17.85% -30% -24.8% Consumer Discretionary 11.31% -40% Communication Services 11.09% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Industrials 8.68% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Investment Funds 5.08% Health Care 4.34% Annual Compound Returns Utilities 3.22% Year ended December 31, 2020 Consumer Staples 3.07% The following tables show the Fund’s historical annual Energy 2.76% compound total returns for the years indicated, compared with Materials 2.52% Cash & Equivalents 2.41% the benchmark index, the MSCI Emerging Markets Net Total 100.00% Index (C$), over the same period. This index measures the performance of stocks traded in emerging markets such as Brazil, Mexico, Indonesia and Malaysia. This index is tracked in Geographic Mix US dollars and was converted to Canadian dollars. Percentage of NAV

Investor Series China 25.82% 1 Year 3 Year 5 Year 10 Year South Korea 12.92% HSBC Emerging Markets Fund 21.46% 7.20% 11.06% 3.49% Cayman Islands 11.92% MSCI Emerging Markets Net Index (C$) 16.23% 6.76% 10.87% 6.23% Taiwan 9.92% India 6.60% Institutional Series Indonesia 3.52% Russia 3.46% 1 Year 3 Year 5 Year 10 Year Brazil 2.61% HSBC Emerging Markets Fund 24.51% 9.88% 13.83% 6.07% United Kingdom 2.52% MSCI Emerging Markets Net Index (C$) 16.23% 6.76% 10.87% 6.23% Netherlands 1.88% Premium Series Hong Kong 1.74% United States 1.73% 1 Year 3 Year 5 Year 10 Year South Africa 1.67% HSBC Emerging Markets Fund 22.04% 7.77% 11.57% 4.00% Turkey 1.53% MSCI Emerging Markets Net Index (C$) 16.23% 6.76% 10.87% 6.23% Mexico 1.38% (1) Due to the fact that several benchmark indices are only available on Peru 1.30% a monthly basis, the performance data for the HSBC Funds and the Greece 1.02% benchmark indices are calculated using values from the first month- Thailand 0.73% end date each Fund was in operation. Kenya 0.24% (2) For investment commentary and relative performance of the Fund Investment Funds 5.08% compared to its benchmark, please refer to the Results of Operations Cash & Equivalents 2.41% Total 100.00% section of this report.

6 HSBC Emerging Markets Fund

Top 25 Holdings Percentage of NAV

Samsung Electronics Co., Ltd. 8.14% Tencent Holdings Ltd. 6.29% Taiwan Semiconductor Manufacturing Co., Ltd. 6.11% Alibaba Group Holding Ltd., ADR 5.31% iShares MSCI Emerging Markets ETF 5.08% Xinjiang Goldwind Science & Technology Co., Ltd. 3.35% Xinyi Solar Holdings Ltd. 3.28% China Longyuan Power Group Corp., Ltd. 3.22% SK Hynix Inc. 2.78% Reliance Industries Ltd. 2.76% China Conch Venture Holdings Ltd. 2.75% Banco Bradesco SA 2.61% Weichai Power Co., Ltd. 2.58% Shenzhen Mindray Bio-Medical Electronics Co., Ltd. 2.53% Anglo American PLC 2.52% Bank Rakyat Indonesia (Persero) Tbk PT 2.37% Sberbank of Russia 2.13% Bandhan Bank Ltd. 2.10% Hyundai Motor Co. 2.00% MediaTek Inc. 1.95% Yandex NV 1.88% Wiwynn Corp. 1.86% Pagseguro Digital Ltd. 1.81% WuXi Biologics (Cayman) Inc. 1.81% Kingdee International Software Group Co., Ltd. 1.74% Total of Top 25 Holdings 78.96%

7 HSBC Emerging Markets Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC BRIC Equity Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC BRIC Equity Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the This Fund is suitable for investors who want to achieve long Fund; we, us and our refer to HSBC Global Asset Management term capital appreciation from equity securities issued in non- (Canada) Limited; and the Fund refers to the HSBC BRIC North American markets. Investors in this Fund should have a Equity Fund. long-term investment time horizon and a medium to high tolerance for risk in their returns. We are the manager, trustee and primary investment advisor of the Fund. We have entered into a sub-advisory agreement with Results of Operations HSBC Global Asset Management (UK) Limited, under which As of December 31, 2020, the Fund's net assets decreased by HSBC Global Asset Management (UK) Limited provides 11.2% to $29.2 million from $32.9 million at the end of 2019. investment advice and portfolio management services to the Net withdrawals, partially offset by positive investment Fund. For an explanation of the relationship between us and the performance, resulted in an overall decrease in net asset value. sub-advisor, see the section Selection of Sub-Advisors in the Fund’s Simplified Prospectus. Investment Performance The HSBC BRIC Equity Fund (Investor Series) fell 0.73% for the Introduction 12 months ending December 31, 2020, while the benchmark This Annual Management Report of Fund Performance contains rose 2.10% over the same period. The benchmark is a weighted financial highlights but does not contain the complete annual composite consisting of the MSCI Brazil Net Index (C$) (25%), financial statements of the Fund. You may obtain a copy of the MSCI Russia Net Index (C$) (25%), MSCI India Net Index (C$) annual financial statements at your request, at no cost, by (25%) and MSCI China Total Return Net Index (C$) (25%). The calling us toll-free at 1-888-390-3333, by visiting our website at Fund’s returns are after the deduction of fees and expenses, www.assetmanagement.hsbc.ca, by visiting the SEDAR while the benchmark’s returns do not include any costs of website at www.sedar.com or by writing to us at: investing. See the Past Performance section for the returns of HSBC Global Asset Management (Canada) Limited other series of the Fund, which may vary due to differences in 3rd Floor, 885 West Georgia Street management fees and expenses. Vancouver, BC V6C 3E8 Stock selection contributed to performance, particularly the You may also contact us using one of these methods to request a strategy’s exposure to the climate change megatrend, including copy of the Fund’s interim financial report, proxy voting policies positions in Xinyi Solar Holdings, a photovoltaic glass maker and procedures, proxy voting disclosure record or quarterly and downstream solar farm operator, which rallied more than portfolio disclosure. 250% in 2020. Additionally, holdings aligned with the digital transformation megatrend also performed well, with the Investment Objective and Strategies Brazilian payment services provider PagSeguro being one of the The fundamental investment objective of this Fund is to provide biggest movers. long-term capital growth. Partially offsetting these gains was the Fund’s position in Banco To achieve its objectives, the Fund invests primarily in equities do Brasil, which lagged with other emerging market banks as and equity-related securities of large, actively traded companies lockdown measures resulted in a slowing of the economy. that are domiciled in, based in, or carry out the larger part of Country and sector allocation effects were residual to stock their business activities in Brazil, Russia, India and China selection. At the sector level, allocation effects were negative (including Hong Kong SAR) (“BRIC”). To maintain a diversified given the Fund’s underweight exposure to health care. At the portfolio of holdings, the Fund invests in companies from a country level, effects were positive given the Fund’s overweight broad range of industries through common shares, preferred exposure to mainland China. shares, rights, warrants, American depositary receipts, global depositary receipts and participation notes. A portion of the During the period, the Fund added holdings in companies that Fund may be in the form of cash or cash equivalents. include Afya, CCR, China Longyuan Power Group, Infosys and Zee Entertainment, and it sold positions in Anhui Conch Risk Cement, Axis Bank, KAZ Minerals, Petrobras and the State The risks of investing in this Fund remain as discussed in the Bank of India. Simplified Prospectus. During the year, there were no material changes to the Fund that affected the overall risk level of Recent Developments the Fund. The portfolio management team continues to focus on companies with an attractive combination of profitability and valuation. The team combines proprietary fundamental research with integrated analysis of environmental, social and

1 HSBC BRIC Equity Fund governance issues to confirm investment opportunities, and Distribution Services leverages proprietary and third-party portfolio construction and The Fund is distributed through us, HSBC Investment Funds risk management tools to identify and manage risk exposures. (Canada) Inc. (our wholly owned subsidiary and affiliate) and HSBC Securities (Canada) Inc. (an affiliate) directly or through The portfolio management team believes the outlook for its division, HSBC InvestDirect. We pay distribution and emerging market asset classes has recently brightened amid servicing fees to them based on the amount of assets held in vaccine developments and dollar liquidity conditions. Emerging the investor’s account, and additionally, in some cases, on the markets in Asia should benefit from mainland China’s V- amount of the initial purchase. If you hold units of this Fund shaped recovery. and/or other HSBC Mutual Funds in a registered plan with During the period there has been a change in composition to HSBC Investment Funds (Canada) Inc., they may charge you an the Independent Review Committee (the “IRC”). Effective annual fee to cover the annual administration costs of the plan. March 25, 2020, Ms. Louise Tymocko was appointed to the IRC We permit HSBC Investment Funds (Canada) Inc. to collect as a member, replacing Mr. William (Bill) Bakk who left as his these fees by redeeming sufficient units of the Fund with the term of office expired. Ms. Lisa Pankratz also took over as Chair highest market value in your registered plan. of the IRC effective March 25, 2020. In addition, effective February 18, 2021, Ms. Sharon Morrisroe was also appointed to Related Brokerage Commissions the IRC as a member, replacing Mr. Neil de Gelder who left From time to time, the Fund may enter into purchases and following the expiry of his term in March of 2021. sales of securities, derivative instruments, foreign exchange contracts or other instruments with dealers that are members Related Party Transactions of the HSBC Group (“Related Brokers”). These Related Brokers We, on behalf of the Fund, or the Fund Manager, may, from may earn commissions or spreads provided that such trades time to time, enter into transactions or arrangements with or are made on terms and conditions comparable to those offered involving other members of the HSBC Group or other people or by or to unrelated parties. During the year ended December 31, companies related or connected to us or the Fund. To proceed 2020, the Fund paid commissions to Related Brokers with the transactions, the Fund relies on the positive amounting to $318 (December 31, 2019, $413). recommendation of the Fund’s Independent Review Committee. A condition of this positive recommendation is that the transactions Financial Highlights are performed in accordance with our policy on Related Party The following tables show selected key financial information Transactions. For more general information on persons related about the Fund and are intended to help you understand the to the Fund and the types of potential transactions, see the Fund’s financial performance for the past five years. This Fund’s Simplified Prospectus. information is derived from the Fund’s audited annual financial statements. The information in the following tables is based on The following is a summary of current transactions and prescribed regulations, and, as a result, is not expected to add arrangements with entities that are related to us or the Fund. down due to the increase/decrease in net assets from operations being based on average units outstanding during the Manager, Trustee and Investment Advisor year and all other numbers being based on actual units We are the manager, trustee and primary investment advisor of outstanding at the relevant point in time. the Fund. As manager, we manage the overall business and operations of the Fund. As trustee, we hold legal title to the property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Fund for these services based on assets under management, calculated daily and paid monthly.

We have entered into a sub-advisory agreement with HSBC Global Asset Management (UK) Limited (an affiliate), under which HSBC Global Asset Management (UK) Limited provides investment advice and portfolio management services to the Fund. We pay HSBC Global Asset Management (UK) Limited an investment advisory fee from the Fund based on assets under management, calculated daily and paid quarterly. For more information on our ability to hire sub-advisors, see the section Organization and management of the Funds in the Fund’s Simplified Prospectus.

2 HSBC BRIC Equity Fund

HSBC BRIC Equity Fund – Investor Series – Net HSBC BRIC Equity Fund – Premium Series – Net Assets per Unit(1) Assets per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $15.52 $13.07 $13.25 $10.95 $8.62 year (2) $17.09 $14.41 $14.61 $12.07 $9.51 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.35 0.68 0.53 0.43 0.35 Total revenue 0.39 0.75 0.62 0.49 0.39 Total expenses (0.42) (0.45) (0.42) (0.40) (0.27) Total expenses (0.39) (0.43) (0.39) (0.37) (0.26) Realized gains (losses) 0.38 1.10 0.95 1.05 (0.49) Realized gains (losses) 0.72 1.24 1.13 1.18 (0.51) Unrealized gains (losses) (0.79) 1.21 (1.15) 1.29 2.70 Unrealized gains (losses) 0.89 1.52 (2.24) 1.29 3.09 Total increase (decrease) from Total increase (decrease) from operations (2) $(0.48) $2.54 $(0.09) $2.37 $2.29 operations (2) $1.61 $3.08 $(0.88) $2.59 $2.71 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) – – – – – (excluding dividends) – – – – – From dividends – (0.11) (0.08) (0.03) (0.01) From dividends – (0.21) (0.16) (0.10) (0.07) From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $– $(0.11) $(0.08) $(0.03) $(0.01) Total annual distributions (2,3) $– $(0.21) $(0.16) $(0.10) $(0.07) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $15.40 $15.52 $13.07 $13.25 $10.95 31 of year shown (2) $17.06 $17.09 $14.41 $14.61 $12.07

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net asset value (in 000s) (4) $23,910 $29,191 $27,191 $31,612 $31,494 000s) (4) $3,288 $1,634 $961 $863 $796 Number of units Number of units outstanding (in 000s) (4) 1,552 1,881 2,080 2,386 2,876 outstanding (in 000s) (4) 193 96 67 59 66 Management expense Management expense ratio ratio ("MER") (5) 3.19% 3.18% 3.19% 3.26% 2.91% ("MER") (5) 2.63% 2.72% 2.69% 2.74% 2.46% MER before waivers or MER before waivers or absorptions (5) 3.26% 3.18% 3.20% 3.38% 2.91% absorptions (5) 2.71% 2.76% 2.69% 3.06% 2.53% Trading expense ratio (6) 0.37% 0.18% 0.12% 0.14% 0.30% Trading expense ratio (6) 0.37% 0.18% 0.12% 0.14% 0.30% Portfolio turnover rate (7) 142.47% 69.89% 38.23% 31.81% 55.60% Portfolio turnover rate (7) 142.47% 69.89% 38.23% 31.81% 55.60% Net asset value per unit (4) $15.40 $15.52 $13.07 $13.25 $10.95 Net asset value per unit (4) $17.06 $17.09 $14.41 $14.61 $12.07

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) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Net assets per unit, beginning of Net assets per unit, beginning of year (2) $16.13 $13.60 $13.79 $11.40 $9.01 year (2) $17.87 $15.06 $15.27 $12.62 $9.94 Increase (decrease) from Increase (decrease) from operations: operations: Total revenue 0.36 0.71 0.55 0.46 0.38 Total revenue 0.40 0.79 0.57 0.49 0.41 Total expenses (0.28) (0.30) (0.31) (0.29) (0.22) Total expenses (0.11) (0.13) (0.12) (0.12) (0.05) Realized gains (losses) 0.44 1.18 0.99 1.11 (0.43) Realized gains (losses) 0.47 1.27 1.38 1.20 (0.57) Unrealized gains (losses) (0.75) 1.19 (1.32) 1.23 2.86 Unrealized gains (losses) (0.68) 1.37 (1.27) 1.62 3.05 Total increase (decrease) from Total increase (decrease) from operations (2) $(0.23) $2.78 $(0.09) $2.51 $2.59 operations (2) $0.08 $3.30 $0.56 $3.19 $2.84 Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) – – – – – (excluding dividends) – – – – – From dividends – (0.31) (0.22) (0.17) (0.13) From dividends – (0.57) (0.47) (0.41) (0.32) From capital gains – – – – – From capital gains – – – – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $– $(0.31) $(0.22) $(0.17) $(0.13) Total annual distributions (2,3) $– $(0.57) $(0.47) $(0.41) $(0.32) Net assets per unit at December Net assets per unit at December 31 of year shown (2) $16.20 $16.13 $13.60 $13.79 $11.40 31 of year shown (2) $18.18 $17.87 $15.06 $15.27 $12.62

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total net asset value (in Total net asset value (in 000s) (4) $103 $120 $85 $88 $72 000s) (4) $1,857 $1,968 $1,850 $4,306 $4,980 Number of units Number of units outstanding (in 000s) (4) 6 7 6 6 6 outstanding (in 000s) (4) 102 110 123 282 395 Management expense ratio Management expense ratio ("MER") (5) 1.99% 2.02% 2.25% 2.26% 2.26% ("MER") (5) 0.73% 0.80% 0.74% 0.81% 0.47% MER before waivers or MER before waivers or absorptions (5) 2.69% 3.24% 3.31% 3.59% 3.30% absorptions (5) 0.80% 0.80% 0.75% 0.94% 0.47% Trading expense ratio (6) 0.37% 0.18% 0.12% 0.14% 0.30% Trading expense ratio (6) 0.37% 0.18% 0.12% 0.14% 0.30% Portfolio turnover rate (7) 142.47% 69.89% 38.23% 31.81% 55.60% Portfolio turnover rate (7) 142.47% 69.89% 38.23% 31.81% 55.60% Net asset value per unit (4) $16.20 $16.13 $13.60 $13.79 $11.40 Net asset value per unit (4) $18.18 $17.87 $15.06 $15.27 $12.62

(1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial Reporting Standards (“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 time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. (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 December 31 of the year shown. (5) MER is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one mutual fund to another and from one series of units to another. We

4 HSBC BRIC Equity Fund

have waived or absorbed certain fees and expenses otherwise Year-by-Year Returns payable by the Fund. The amount of expenses absorbed or waived Years ended December 31 is at the discretion of and can be terminated at any time by us. The following bar charts show the Fund’s performance for each (6) The trading expense ratio represents total commissions and other of the years shown, and illustrate how the Fund’s performance portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the year. changed from year to year. In percentage terms, the bar charts show how much an investment made on the first 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 year would have grown or decreased by the last day of turnover rate of 100% is equivalent to the Fund buying and selling each financial year. all of the securities in its portfolio once in the course of the year. The higher the Fund’s portfolio turnover rate in a year, the greater Annual Returns – Investor Series the trading costs payable by the Fund in the year, and the greater 40% the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate 30% 27.2% and the performance of the Fund. The rate is calculated based on 21.2% 19.5% 20% the lesser of purchases or sales of securities divided by the average 9.4% weighted market value of the portfolio securities, excluding short- 10% 3.9% term securities. 0.8% 0% -0.7% -0.7% Management Fees -10% -4.7% For the year ended December 31, 2020, the Fund paid us -20% management fees of $551,132. The management fee for each -22.3% -30% series is calculated as a percentage of the daily net asset value Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 for that series. The fees are reduced, where required, so that 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 these fees do not duplicate fees payable by mutual funds in which the Fund invests for the same service. Annual Returns – Premium Series

40% The Fund’s management fees were used by us to pay costs for 27.7% managing the investment portfolio, providing investment 30% 21.9% 20.1% analysis and recommendations, making investment decisions, 20% 10.0% making brokerage arrangements for the purchase and sale of 10% 4.4% the investment portfolio and providing other services. The 1.3% 0% management fees also funded commission payments and other -0.2% -0.2% -4.3% compensation (collectively “distribution costs”) to sales -10% representatives and registered dealers and brokers, including -20% -21.8% HSBC Investment Funds (Canada) Inc., for units of the Fund -30% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 bought and held by unitholders. Finally, we used management 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 fees to pay for additional marketing and distribution services to the Fund. Annual Returns – Manager Series

For the year ended December 31, 2020, approximately 46% of 40% the total management fees collected from all HSBC Mutual 30% 28.0% Funds were used to fund distribution costs. In comparison, for 22.4% 20.9% 20% the Fund, such distribution costs represented 38% of the 10.7% management fees collected. This may vary by series depending 10% 4.9% 1.8% 0.2% 0.5% on the assets invested in each of the series. 0% -4.1% Past Performance -10% The performance information shown assumes that all -20% -21.4% distributions made by the Fund in the years shown were -30% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 reinvested in additional securities of the Fund. The performance 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 information does not take into account sales, 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 performance of different fund series may vary for a number of reasons, including differences in management fees and expenses. The Fund’s past performance does not necessarily indicate how it will perform in the future.

5 HSBC BRIC Equity Fund

Annual Returns – Institutional Series Premium Series

40% 1 Year 3 Year 5 Year 10 Year 30.3% 30% HSBC BRIC Equity Fund -0.17% 6.15% 13.25% 4.95% 24.2% 22.4% 20% 25% MSCI Brazil Net Index (C$), 25% 12.2% MSCI Russia Net Index (C$), 25% MSCI 10% 6.5% 3.3% 1.7% 1.7% India Net Index (C$) and 25% MSCI 0% China Total Return Net Index (C$) 2.10% 8.36% 13.93% 5.96% -2.3% -10% (1) Due to the fact that several benchmark indices are only available on a monthly basis, the performance data for the HSBC Funds and the -20% benchmark indices are calculated using values from the first month- -20.3% -30% end date each Fund was in operation. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 (2) For investment commentary and relative performance of the Fund 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 compared to its benchmark, please refer to the Results of Operations section of this report. Annual Compound Returns Year ended December 31, 2020 Summary of Investment Portfolio As at December 31, 2020 The following tables show the Fund’s historical annual compound total returns for the years indicated, compared with the benchmark index over the same period. The benchmark is a Sector Mix weighted composite consisting of the MSCI Brazil Net Percentage Index (C$) (25%), MSCI Russia Net Index (C$) (25%), MSCI of NAV India Net Index (C$) (25%) and MSCI China Total Return Net Financials 24.24% Index (C$) (25%). Energy 17.84% Materials 10.30% The MSCI Brazil Net Index is designed to measure the Consumer Discretionary 9.81% performance of the large-cap and mid-cap segments of the Industrials 9.81% Brazilian market. The MSCI Russia Net Index is designed to Information Technology 9.35% measure the performance of the large-cap and mid-cap Communication Services 9.12% segments of the Russian market. The MSCI India Net Index is Health Care 3.29% Utilities 2.32% designed to measure the performance of the large-cap and Consumer Staples 1.76% mid-cap segments of the Indian market. The MSCI China Total Cash & Equivalents 2.16% Return Net Index captures large-cap and mid-cap Total 100.00% representation across China H shares, B shares, Red chips and P chips. Geographic Mix Investor Series Percentage of NAV 1 Year 3 Year 5 Year 10 Year HSBC BRIC Equity Fund -0.73% 5.61% 12.68% 4.41% India 22.75% Russia 20.68% 25% MSCI Brazil Net Index (C$), 25% MSCI Russia Net Index (C$), 25% MSCI Brazil 20.20% India Net Index (C$) and 25% MSCI China 14.84% China Total Return Net Index (C$) 2.10% 8.36% 13.93% 5.96% Cayman Islands 10.96% Netherlands 4.65% Manager Series United States 2.25% Hong Kong 1.51% 1 Year 3 Year 5 Year 10 Year Cash & Equivalents 2.16% HSBC BRIC Equity Fund 0.46% 6.79% 13.80% 5.46% Total 100.00% 25% MSCI Brazil Net Index (C$), 25% MSCI Russia Net Index (C$), 25% MSCI India Net Index (C$) and 25% MSCI China Total Return Net Index (C$) 2.10% 8.36% 13.93% 5.96%

Institutional Series

1 Year 3 Year 5 Year 10 Year HSBC BRIC Equity Fund 1.75% 8.22% 15.46% 7.01% 25% MSCI Brazil Net Index (C$), 25% MSCI Russia Net Index (C$), 25% MSCI India Net Index (C$) and 25% MSCI China Total Return Net Index (C$) 2.10% 8.36% 13.93% 5.96%

6 HSBC BRIC Equity Fund

Top 25 Holdings Percentage of NAV

Sberbank of Russia, GDR 6.71% Reliance Industries Ltd. 5.61% Lukoil PJSC, ADR 4.97% Yandex NV 4.65% Banco Bradesco SA 3.92% Petroleo Brasileiro SA 3.76% Gazprom OAO 3.50% Bandhan Bank Ltd. 3.26% Xinyi Solar Holdings Ltd. 3.24% Alibaba Group Holding Ltd., ADR 3.20% Tencent Holdings Ltd. 3.18% Banco do Brasil SA 2.91% MMC Norilsk Nickel PJSC 2.90% Novolipetsk Steel PJSC 2.60% Pagseguro Digital Ltd. 2.46% China Longyuan Power Group Corp., Ltd. 2.32% Xinjiang Goldwind Science & Technology Co., Ltd. 2.31% Usinas Siderurgicas de Minas Gerais SA 2.30% MercadoLibre Inc. 2.25% Housing Development Finance Corp., Ltd. 2.19% Itau Unibanco Holding SA 2.17% HDFC Bank Ltd. 2.14% Infosys Ltd. 2.14% Shenzhen Mindray Bio-Medical Electronics Co., Ltd. 1.99% China Conch Venture Holdings Ltd. 1.95% Total of Top 25 Holdings 78.63%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

7 HSBC BRIC Equity Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC U.S. Equity Index Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC U.S. Equity Index Fund

Risk Distribution Services The risks of investing in the Fund remain as discussed in the The Fund is distributed through us, HSBC Investment Funds Simplified Prospectus. During the year, there were no material (Canada) Inc. (our wholly owned subsidiary and affiliate) and changes to the Fund that affected the overall risk level of HSBC Securities (Canada) Inc. (an affiliate) directly or through the Fund. its division, HSBC InvestDirect. We pay distribution and servicing fees to them based on the amount of assets held in This Fund is suitable for investors who are seeking returns the investor’s account, and additionally, in some cases, on the similar to the index, have a long-term investment time horizon amount of the initial purchase. If you hold units of this Fund and have a medium tolerance for risk in their returns. and/or other HSBC Mutual Funds in a registered plan with HSBC Investment Funds (Canada) Inc., they may charge you an Results of Operations annual fee to cover the annual administration costs of the plan. This Fund was created on December 18, 2020, but as of We permit HSBC Investment Funds (Canada) Inc. to collect December 31, 2020, it had not begun investing according to these fees by redeeming sufficient units of the Fund with the its strategy. highest market value in your registered plan. Recent Developments Financial Highlights This Fund was created on December 18, 2020, but as of The following table shows selected key financial information December 31, 2020, it had not begun investing according to about the Fund and is intended to help you understand the its strategy. Fund’s financial performance for the year shown. In the year a

1 HSBC U.S. Equity Index Fund fund is established, “year” represents the period from inception statements. All balances are stated in International Financial to December 31 of that fiscal year, as applicable. This Reporting Standards (“IFRS”). Under IFRS, the net assets per unit information is derived from the Fund’s audited annual financial presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. statements. The information in the following table is based on prescribed regulations, and, as a result, is not expected to add (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the down due to the increase/decrease in net assets from relevant time. The increase/decrease in net assets from operations operations being based on average units outstanding during the per unit is based on the weighted average number of units year and all other numbers being based on actual units outstanding for the relevant series over the fiscal year. 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 HSBC U.S. Equity Index Fund – Institutional reinvestment plan by providing written notice to us. Series – Net Assets per Unit(1) (4) This information is provided as at December 31 of the year shown. Year(s) ended December 31 (5) MER is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated 2020 year and is expressed as an annualized percentage of daily average Net assets per unit, beginning of year (2) $10.00 net asset value during the year. The MER may vary from one Increase (decrease) from operations: mutual fund to another and from one series of units to another. We Total revenue – have waived or absorbed certain fees and expenses otherwise Total expenses – payable by the Fund. The amount of expenses absorbed or waived Realized gains (losses) – is at the discretion of and can be terminated at any time by us. Unrealized gains (losses) – (6) The trading expense ratio represents total commissions and other Total increase (decrease) from operations (2) $– portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the year. Distributions to unitholders: From net investment income (excluding dividends) – (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s From dividends – portfolio advisor manages its portfolio investments. A portfolio From capital gains – turnover rate of 100% is equivalent to the Fund buying and selling Return of capital – all of the securities in its portfolio once in the course of the year. Total annual distributions (2,3) $– The higher the Fund’s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year, and the greater Net assets per unit at December 31 of year shown (2) $10.00 the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate Ratios and Supplemental Data and the performance of the Fund. The rate is calculated based on the lesser of purchases or sales of securities divided by the average 2020 weighted market value of the portfolio securities, excluding short- Total net asset value (4) $10 term securities. Number of units outstanding (4) 1 Management expense ratio ("MER") (5) – Past Performance MER before waivers or absorptions (5) – As at December 31, 2020, the Fund has not begun investing Trading expense ratio (6) – according to its strategy. Portfolio turnover rate (7) – Net asset value per unit (4) $10.00 (1) This information is derived from the Fund’s audited annual financial

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

HSBC International Equity Index Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC International Equity Index 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 This Fund was created on December 18, 2020, but as of (Canada) Limited; and the Fund refers to the HSBC International December 31, 2020, it had not begun investing according to Equity Index Fund. its strategy.

We are the manager, trustee and primary investment advisor of During the period there has been a change in composition to the Fund. the Independent Review Committee (the “IRC”). Effective March 25, 2020, Ms. Louise Tymocko was appointed to the IRC Introduction as a member, replacing Mr. William (Bill) Bakk who left as his This Annual Management Report of Fund Performance contains term of office expired. Ms. Lisa Pankratz also took over as Chair financial highlights but does not contain the complete annual of the IRC effective March 25, 2020. In addition, effective financial statements of the Fund. You may obtain a copy of the February 18, 2021, Ms. Sharon Morrisroe was also appointed to annual financial statements at your request, at no cost, by the IRC as a member, replacing Mr. Neil de Gelder who left calling us toll-free at 1-888-390-3333, by visiting our website at following the expiry of his term in March of 2021. www.assetmanagement.hsbc.ca, by visiting the SEDAR website at www.sedar.com or by writing to us at: Related Party Transactions HSBC Global Asset Management (Canada) Limited We, on behalf of the Fund, or the Fund Manager, may, from 3rd Floor, 885 West Georgia Street time to time, enter into transactions or arrangements with or Vancouver, BC V6C 3E8 involving other members of the HSBC Group or other people or companies related or connected to us or the Fund. To proceed You may also contact us using one of these methods to request a with the transactions, the Fund relies on the positive copy of the Fund’s interim financial report, proxy voting policies recommendation of the Fund’s Independent Review Committee. A and procedures, proxy voting disclosure record or quarterly condition of this positive recommendation is that the transactions portfolio disclosure. are performed in accordance with our policy on Related Party Transactions. For more general information on persons related Investment Objective and Strategies to the Fund and the types of potential transactions, see the The fundamental investment objective of the Fund is to achieve Fund’s Simplified Prospectus. long-term capital growth by tracking the performance of a generally recognized index of established international stock The following is a summary of current transactions and arrangements with entities that are related to us or the Fund. markets.

To achieve its objectives, the Fund invests primarily in stocks Manager, Trustee and Investment Advisor that are included in the MSCI EAFE Index (the “Index”). The We are the manager, trustee and primary investment advisor of Index includes shares of companies listed on stock markets in the Fund. As manager, we manage the overall business and developed countries in Europe, Australasia, and the Far East. operations of the Fund. As trustee, we hold legal title to the The Fund aims to track the return of the Index as closely property of the Fund on your behalf. As primary investment as possible. advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Risk Fund for these services based on assets under management, The risks of investing in this Fund remain as discussed in the calculated daily and paid monthly. Simplified Prospectus. During the year, there were no material Distribution Services changes to the Fund that affected the overall risk level of The Fund is distributed through us, HSBC Investment Funds the Fund. (Canada) Inc. (our wholly owned subsidiary and affiliate) and This Fund is suitable for investors who are seeking returns HSBC Securities (Canada) Inc. (an affiliate) directly or through similar to the index, have a long-term investment time horizon its division, HSBC InvestDirect. We pay distribution and and a medium tolerance for risk in their returns. servicing fees to them based on the amount of assets held in the investor’s account, and additionally, in some cases, on the Results of Operations amount of the initial purchase. If you hold units of this Fund This Fund was created on December 18, 2020, but as of and/or other HSBC Mutual Funds in a registered plan with December 31, 2020, it had not begun investing according to HSBC Investment Funds (Canada) Inc., they may charge you an its strategy. annual 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 market value in your registered plan.

1 HSBC International Equity Index Fund

Financial Highlights statements. All balances are stated in International Financial The following table shows selected key financial information Reporting Standards (“IFRS”). Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset about the Fund and is intended to help you understand the value calculated for fund pricing purposes. Fund’s financial performance for the year shown. In the year a (2) Net assets per unit and distributions per unit are based on the fund is established, “year” represents the period from inception actual number of units outstanding for the relevant series at the to December 31 of that fiscal year, as applicable. This relevant time. The increase/decrease in net assets from operations information is derived from the Fund’s audited annual financial per unit is based on the weighted average number of units statements. The information in the following table is based on outstanding for the relevant series over the fiscal year. prescribed regulations, and, as a result, is not expected to add (3) Distributions are automatically reinvested in additional units of the down due to the increase/decrease in net assets from Fund, unless the unitholder withdraws from the automatic operations being based on average units outstanding during the reinvestment plan by providing written notice to us. year and all other numbers being based on actual units (4) This information is provided as at December 31 of the year shown. outstanding at the relevant point in time. (5) MER is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated year and is expressed as an annualized percentage of daily average HSBC International Equity Index Fund – net asset value during the year. The MER may vary from one (1) Institutional Series – Net Assets per Unit mutual fund to another and from one series of units to another. We Year(s) ended December 31 have waived or absorbed certain fees and expenses otherwise 2020 payable by the Fund. The amount of expenses absorbed or waived is at the discretion of and can be terminated at any time by us. Net assets per unit, beginning of year (2) $10.00 (6) The trading expense ratio represents total commissions and other Increase (decrease) from operations: portfolio transaction costs expressed as an annualized percentage Total revenue – of daily average net asset value during the year. Total expenses – Realized gains (losses) – (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Unrealized gains (losses) – portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling Total increase (decrease) from operations (2) $– all of the securities in its portfolio once in the course of the year. Distributions to unitholders: The higher the Fund’s portfolio turnover rate in a year, the greater From net investment income (excluding dividends) – the trading costs payable by the Fund in the year, and the greater From dividends – the chance of an investor receiving taxable capital gains in the year. From capital gains – There is not necessarily a relationship between a high turnover rate Return of capital – and the performance of the Fund. The rate is calculated based on Total annual distributions (2,3) $– the lesser of purchases or sales of securities divided by the average Net assets per unit at December 31 of year shown (2) $10.00 weighted market value of the portfolio securities, excluding short- term securities.

Ratios and Supplemental Data Past Performance 2020 As at December 31, 2020, the Fund has not begun investing according to its strategy. Total net asset value (4) $10 Number of units outstanding (4) 1 Management expense ratio ("MER") (5) – MER before waivers or absorptions (5) – Trading expense ratio (6) – Portfolio turnover rate (7) – Net asset value per unit (4) $10.00 (1) This information is derived from the Fund’s audited annual financial

Issued by HSBC Global Asset Management (Canada) Limited

HSBC Emerging Markets Equity Index Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Emerging Markets Equity Index Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the During the period there has been a change in composition to Fund; we, us and our refer to HSBC Global Asset Management the Independent Review Committee (the “IRC”). Effective (Canada) Limited; and the Fund refers to the HSBC Emerging March 25, 2020, Ms. Louise Tymocko was appointed to the IRC Markets Equity Index Fund. as a member, replacing Mr. William (Bill) Bakk who left as his term of office expired. Ms. Lisa Pankratz also took over as Chair We are the manager, trustee and primary investment advisor of of the IRC effective March 25, 2020. In addition, effective the Fund. February 18, 2021, Ms. Sharon Morrisroe was also appointed to Introduction the IRC as a member, replacing Mr. Neil de Gelder who left This Annual Management Report of Fund Performance contains following the expiry of his term in March of 2021. financial highlights but does not contain the complete annual Related Party Transactions financial statements of the Fund. You may obtain a copy of the We, on behalf of the Fund, or the Fund Manager, may, from annual financial statements at your request, at no cost, by time to time, enter into transactions or arrangements with or calling us toll-free at 1-888-390-3333, by visiting our website at involving other members of the HSBC Group or other people or www.assetmanagement.hsbc.ca, by visiting the SEDAR companies related or connected to us or the Fund. To proceed website at www.sedar.com or by writing to us at: with the transactions, the Fund relies on the positive HSBC Global Asset Management (Canada) Limited recommendation of the Fund’s Independent Review Committee. A 3rd Floor, 885 West Georgia Street condition of this positive recommendation is that the transactions Vancouver, BC V6C 3E8 are performed in accordance with our policy on Related Party Transactions. For more general information on persons related You may also contact us using one of these methods to request a to the Fund and the types of potential transactions, see the copy of the Fund’s interim financial report, proxy voting policies Fund’s Simplified Prospectus. and procedures, proxy voting disclosure record or quarterly portfolio disclosure. The following is a summary of current transactions and arrangements with entities that are related to us or the Fund. Investment Objective and Strategies The fundamental investment objective of the Fund is to achieve Manager, Trustee and Investment Advisor long-term capital growth by tracking the performance of a We are the manager, trustee and primary investment advisor of generally recognized index of emerging market stock markets. the Fund. As manager, we manage the overall business and operations of the Fund. As trustee, we hold legal title to the To achieve its objectives, the Fund invests primarily in stocks property of the Fund on your behalf. As primary investment that are included in the MSCI Emerging Markets Index (the advisor, we provide investment advice and portfolio “Index”). The Index includes shares of companies listed on management services to the Fund. We receive a fee from the stock markets in emerging market countries in Asia, Latin Fund for these services based on assets under management, America, Europe, Africa, and the Middle East. The Fund aims to calculated daily and paid monthly. track the return of the Index as closely as possible. Distribution Services Risk The Fund is distributed through us, HSBC Investment Funds The risks of investing in the Fund remain as discussed in the (Canada) Inc. (our wholly owned subsidiary and affiliate) and Simplified Prospectus. During the year, there were no material HSBC Securities (Canada) Inc. (an affiliate) directly or through changes to the Fund that affected the overall risk level of its division, HSBC InvestDirect. We pay distribution and the Fund. servicing fees to them based on the amount of assets held in This Fund is suitable for investors who are seeking returns the investor’s account, and additionally, in some cases, on the similar to the index, have a long-term investment time horizon amount of the initial purchase. If you hold units of this Fund and a medium to high tolerance for risk in their returns. and/or other HSBC Mutual Funds in a registered plan with HSBC Investment Funds (Canada) Inc., they may charge you an Results of Operations annual fee to cover the annual administration costs of the plan. This Fund was created on December 18, 2020, but as of We permit HSBC Investment Funds (Canada) Inc. to collect December 31, 2020, it had not begun investing according to these fees by redeeming sufficient units of the Fund with the its strategy. highest market value in your registered plan. Recent Developments Financial Highlights This Fund was created on December 18, 2020, but as of The following table shows selected key financial information December 31, 2020, it had not begun investing according to about the Fund and is intended to help you understand the its strategy. Fund’s financial performance for the year shown. In the year a

1 HSBC Emerging Markets Equity Index Fund fund is established, “year” represents the period from inception statements. All balances are stated in International Financial to December 31 of that fiscal year, as applicable. This Reporting Standards (“IFRS”). Under IFRS, the net assets per unit information is derived from the Fund’s audited annual financial presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. statements. The information in the following table is based on prescribed regulations, and, as a result, is not expected to add (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the down due to the increase/decrease in net assets from relevant time. The increase/decrease in net assets from operations operations being based on average units outstanding during the per unit is based on the weighted average number of units year and all other numbers being based on actual units outstanding for the relevant series over the fiscal year. 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 HSBC Emerging Markets Equity Index Fund – reinvestment plan by providing written notice to us. Institutional Series – Net Assets per Unit(1) (4) This information is provided as at December 31 of the year shown. Year(s) ended December 31 (5) MER is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated 2020 year and is expressed as an annualized percentage of daily average Net assets per unit, beginning of year (2) $10.00 net asset value during the year. The MER may vary from one Increase (decrease) from operations: mutual fund to another and from one series of units to another. Total revenue – (6) The trading expense ratio represents total commissions and other Total expenses – portfolio transaction costs expressed as an annualized percentage Realized gains (losses) – of daily average net asset value during the year. Unrealized gains (losses) – (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Total increase (decrease) from operations (2) $– portfolio advisor manages its portfolio investments. A portfolio Distributions to unitholders: turnover rate of 100% is equivalent to the Fund buying and selling From net investment income (excluding dividends) – all of the securities in its portfolio once in the course of the year. From dividends – The higher the Fund’s portfolio turnover rate in a year, the greater From capital gains – the trading costs payable by the Fund in the year, and the greater Return of capital – the chance of an investor receiving taxable capital gains in the year. Total annual distributions (2,3) $– 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 at December 31 of year shown (2) $10.00 the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding short- Ratios and Supplemental Data term securities. 2020 Past Performance Total net asset value (4) $10 As at December 31, 2020, the Fund has not begun investing Number of units outstanding (4) 1 according to its strategy. Management expense ratio ("MER") (5) – MER before waivers or absorptions (5) – Trading expense ratio (6) – Portfolio turnover rate (7) – Net asset value per unit (4) $10.00 (1) This information is derived from the Fund’s audited annual financial

Issued by HSBC Global Asset Management (Canada) Limited

HSBC World Selection® Diversified Conservative Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

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

You may also contact us using one of these methods to request a Financial markets unravelled over the latter half of the first copy of the Fund’s interim financial report, proxy voting policies quarter as health officials around the world recommended and procedures, proxy voting disclosure record or quarterly social distancing and quarantining of non-essential workers to portfolio disclosure. stop the spread of COVID-19. This caused a brief but acute liquidity crisis, driving indiscriminate selling of financial assets Investment Objective and Strategies worldwide. After the first quarter, risk sentiment shifted quickly The fundamental investment objective of this Fund is to provide as governments enacted massive fiscal and monetary stimulus investors with primarily capital preservation and interest income that drove a sustained recovery in financial markets over the with some potential for low to moderate long-term capital remainder of 2020. growth through a diversified portfolio of investments across several asset classes. Markets finished the year with impressive gains. The improving economy, as well as expectations for a similar sharp rebound in To achieve its objectives, the Fund invests in other mutual corporate profits in 2021, supported forward-looking investor funds and uses strategic asset allocation as the principal sentiment, as did US election results and, most importantly, the investment strategy. The Fund has an established policy asset announcement that three vaccines for COVID-19 had test mix, based on its stated objectives. In addition to adjusting the results with extremely high efficacy. Fund’s asset mix depending on economic conditions and the relative value of securities in the Fund, the Fund may also use Although the Fund generated a positive return in a volatile year, tactical asset allocation to take advantage of current and it underperformed its benchmark. Security selection within the expected future market conditions. fixed income portion of the Fund added value, but this was more than offset by the negative impacts of security selection Risk in the Fund’s equity segments. The risks of investing in the Fund remain as discussed in the Simplified Prospectus. During the year, there were no material Recent Developments changes to the Fund that affected the overall risk level of Because of the unprecedented speed of the rally in most asset the Fund. classes after March 2020, expected returns for 2021 are still positive, but somewhat less attractive than they were in early This Fund is suitable for investors who want to earn interest 2020. Many economies will recover to pre-COVID-19 levels of income with some potential for low to moderate long-term activity in 2021, although we don’t expect to reach this growth of their capital. Investors in this Fund should have a milestone in Canada until early 2022. We maintain our view medium-term investment time horizon and a low tolerance for that the economic fallout from the pandemic is likely to investment risk. dissipate as aggressive policy moves continue to support liquidity and economic momentum. The key risk to our central

1 HSBC World Selection Diversified Conservative Fund scenario remains the virus and its variants or a stall in the HSBC Investment Funds (Canada) Inc., they may charge you an rollout of vaccines. Changes in fiscal or monetary policy annual fee to cover the annual administration costs of the plan. direction and the relationship between China and the US are We permit HSBC Investment Funds (Canada) Inc. to collect risks to monitor as well. these fees by redeeming sufficient units of the Fund with the highest market value in your registered plan. Robust markets and record-low interest rates have moderated expected returns for various asset classes. However, greater Fund on Fund Investing confidence in the pace of the economic recovery – combined During the year, the Fund invested in units of other HSBC with still attractive relative returns for equities, corporate bonds Mutual Funds, which are also managed by us. and mortgages relative to cash and government bonds – leads us to favour these asset classes in the Fund. The portfolio Financial Highlights remains well diversified across asset classes and geographies. The following tables show selected key financial information During the period there has been a change in composition to about the Fund and are intended to help you understand the the Independent Review Committee (the “IRC”). Effective Fund’s financial performance for the past five years. This March 25, 2020, Ms. Louise Tymocko was appointed to the IRC information is derived from the Fund’s audited annual financial as a member, replacing Mr. William (Bill) Bakk who left as his statements. The information in the following tables is based on term of office expired. Ms. Lisa Pankratz also took over as Chair prescribed regulations, and, as a result, is not expected to add of the IRC effective March 25, 2020. In addition, effective down due to the increase/decrease in net assets from February 18, 2021, Ms. Sharon Morrisroe was also appointed to operations being based on average units outstanding during the the IRC as a member, replacing Mr. Neil de Gelder who left year and all other numbers being based on actual units following the expiry of his term in March of 2021. outstanding at the relevant point in time.

Related Party Transactions We, on behalf of the Fund, or the Fund Manager, may, from HSBC World Selection Diversified Conservative (1) time to time, enter into transactions or arrangements with or Fund – Investor Series – Net Assets per Unit involving other members of the HSBC Group or other people or Year(s) ended December 31 companies related or connected to us or the Fund. To proceed 2020 2019 2018 2017 2016 with the transactions, the Fund relies on the positive Net assets per unit, beginning of recommendation of the Fund’s Independent Review Committee. A year (2) $12.93 $12.15 $12.79 $12.40 $12.16 condition of this positive recommendation is that the transactions Increase (decrease) from are performed in accordance with our policy on Related Party operations: Transactions. For more general information on persons related Total revenue 0.45 0.40 0.44 0.38 0.41 to the Fund and the types of potential transactions, see the Total expenses (0.21) (0.21) (0.20) (0.21) (0.21) Fund’s Simplified Prospectus. Realized gains (losses) 0.07 0.08 0.06 0.10 0.26 Unrealized gains (losses) 0.18 0.68 (0.66) 0.27 0.13 The following is a summary of current transactions and Total increase (decrease) from arrangements with entities that are related to us or the Fund. operations (2) $0.49 $0.95 $(0.36) $0.54 $0.59 Distributions to unitholders: Manager, Trustee and Investment Advisor From net investment income We are the manager, trustee and primary investment advisor of (excluding dividends) (0.06) (0.11) (0.11) (0.10) (0.09) the Fund. As manager, we manage the overall business and From dividends (0.07) (0.07) (0.05) (0.05) (0.06) From capital gains – – (0.12) – (0.20) operations of the Fund. As trustee, we hold legal title to the Return of capital – – – – – property of the Fund on your behalf. As primary investment Total annual distributions (2,3) $(0.13) $(0.18) $(0.28) $(0.15) $(0.35) advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Net assets per unit at December 31 of year shown (2) $13.32 $12.93 $12.15 $12.79 $12.40 Fund for these services based on assets under management, calculated daily and paid monthly.

2 HSBC World Selection Diversified Conservative Fund

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020* 2019* 2018* 2017* 2016 Total net asset value Total net asset value (in (in 000s) (4) $237,040 $229,912 $216,716 $217,577 $187,633 000s) (4) $– $– $– $– $40 Number of units Number of units outstanding (in outstanding (in 000s) (4) – – – – 4 000s) (4) 17,791 17,782 17,840 17,017 15,136 Management expense ratio Management ("MER") (5) – 0.18% 0.29% 0.97% 0.52% expense ratio MER before waivers or ("MER") (5) 1.71% 1.70% 1.66% 1.70% 1.75% absorptions (5) – 0.18% 0.29% 1.30% 0.81% MER before waivers Trading expense ratio (6) – 0.01% 0.01% 0.01% 0.02% or absorptions (5) 1.71% 1.70% 1.66% 1.70% 1.75% Portfolio turnover rate (7) – 10.89% 10.34% 8.64% 17.79% Trading expense Net asset value per unit (4) $– $– $– $– $10.54 ratio (6) 0.02% 0.01% 0.01% 0.01% 0.02% * The Institutional Series was fully redeemed during 2017, 2018, 2019 Portfolio turnover and 2020; however, it remains in offer as at period-end. rate (7) 13.47% 10.89% 10.34% 8.64% 17.79% Net asset value per (1) This information is derived from the Fund’s audited annual financial unit (4) $13.32 $12.93 $12.15 $12.79 $12.40 statements. All balances are stated in International Financial

Reporting Standards (“IFRS”). Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset HSBC World Selection Diversified Conservative value calculated for fund pricing purposes. Fund – Institutional Series – Net Assets per (2) Net assets per unit and distributions per unit are based on the (1) Unit actual number of units outstanding for the relevant series at the Year(s) ended December 31 relevant time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units 2020* 2019* 2018* 2017* 2016 outstanding for the relevant series over the fiscal year. Net assets per unit, beginning of (3) Distributions are automatically reinvested in additional units of the year (2) $– $10.00 $10.00 $10.54 $9.50 Fund, unless the unitholder withdraws from the automatic Increase (decrease) from reinvestment plan by providing written notice to us. operations: (4) This information is provided as at December 31 of the year shown. Total revenue – 0.06 0.08 – 0.31 Total expenses – – – – (0.04) (5) MER is based on total expenses (including a portion of the Realized gains (losses) – 0.02 0.01 – 0.23 operating expenses of the underlying funds in proportion to the Unrealized gains (losses) – 0.14 (0.20) 0.13 0.11 Fund’s holdings in the other funds and excluding distributions, Total increase (decrease) from commissions and other portfolio transaction costs) for the stated operations (2) $– $0.22 $(0.11) $0.13 $0.61 year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one Distributions to unitholders: mutual fund to another and from one series of units to another. We From net investment income may have waived or absorbed certain fees and expenses otherwise (excluding dividends) – – – – (0.03) From dividends – – – – (0.02) payable by the Fund. The amount of expenses absorbed or waived From capital gains – – – – (0.07) is at the discretion of and can be terminated at any time by us. Return of capital – – – – – Please see the prospectus, Fund Facts and other disclosure documents for further details. Total annual distributions (2,3) $– $– $– $– $(0.12) (6) The trading expense ratio represents total commissions and other Net assets per unit at December 31 portfolio transaction costs expressed as an annualized percentage of year shown (2) $– $– $– $– $10.54 of daily average net asset value during the year. (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 of the securities in its portfolio once in the course of the year. The higher the Fund’s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. 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 weighted market value of the portfolio securities, excluding short- term securities. Management Fees For the year ended December 31, 2020, the Fund paid us management fees of $3,215,319. The management fee for each series is calculated as a percentage of the daily net asset value

3 HSBC World Selection Diversified Conservative Fund for that series. The fees are reduced, where required, so that Annual Returns – Investor Series these fees do not duplicate fees payable by mutual funds in 10% which the Fund invests for the same service. 7.9% 6.6% The Fund’s management fees were used by us to pay costs for 5.3% 4.8% 4.9% 4.4% managing the investment portfolio, providing investment 5% 4.1% analysis and recommendations, making investment decisions, 1.4% 1.3% making brokerage arrangements for the purchase and sale of 0% the investment portfolio and providing other services. The management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales -2.8% -5% representatives and registered dealers and brokers, including Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 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 Annual Compound Returns the Fund. Year ended December 31, 2020 The following table shows the Fund’s historical annual For the year ended December 31, 2020, approximately 46% of compound total returns for the years indicated, compared with the total management fees collected from all HSBC Mutual the benchmark index over the same period. The benchmark of Funds were used to fund distribution costs. In comparison, for this Fund is a weighted composite consisting of the FTSE the Fund, such distribution costs represented 48% of the Canada Universe Bond Index (65%), S&P/TSX Capped management fees collected. This may vary by series depending Composite Index (16%), MSCI World Net Index (in Canadian on the assets invested in each of the series. dollars) (12%) and FTSE Canada 91 Day T-Bill Index (7%). Past Performance The FTSE Canada Universe Bond Index is a broad measure of The performance information shown assumes that all the total return for the Canadian bond market, covering distributions made by the Fund in the years shown were marketable Canadian bonds with a term to maturity of more reinvested in additional securities of the Fund. The performance than one year. The S&P/TSX Capped Composite Index tracks information does not take into account sales, redemption, the changes in the share prices of the largest companies listed distribution, optional charges or expenses you may be charged on the Toronto Stock Exchange, representing a broad range of outside of the Fund or the effect of any income tax you may industries. The MSCI World Net Index is an international index have to pay as a result of your investment in the Fund that that measures the performance of stocks traded in Europe, would have reduced returns or performance. The performance Australia, the Far East, the US, Canada and South Africa. This of different fund series may vary for a number of reasons, index is tracked in US dollars and was converted to Canadian including differences in management fees and expenses. The dollars. The FTSE Canada 91 Day T-Bill Index is a measure of Fund’s past performance does not necessarily indicate how it the total return of Canadian treasury bills with a term to maturity of three months. will perform in the future. Year-by-Year Returns Investor Series Years ended December 31 1 Year 3 Year 5 Year 10 Year The following bar chart shows the Fund’s performance for each HSBC World Selection Diversified of the years shown, and illustrates how the Fund’s performance Conservative Fund 4.07% 2.96% 3.62% 3.74% changed from year to year. In percentage terms, the bar chart 65% FTSE Canada Universe Bond Index, shows how much an investment made on the first day of each 16% S&P/TSX Capped Composite Index, financial year would have grown or decreased by the last day of 12% MSCI World Net Index (C$), 7% FTSE Canada 91 Day T-Bill Index 8.68% 6.21% 5.65% 5.54% each financial year. (1) Due to the fact that several benchmark indices are only available on a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- end date each Fund was in operation. (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations section of this report.

4 HSBC World Selection Diversified Conservative Fund

Summary of Investment Portfolio As at December 31, 2020

Asset Mix Percentage of NAV

Bonds 64.59% Canadian Equities 17.21% International Equities 11.39% Cash & Equivalents 6.81% Total 100.00%

Top 25 Holdings* Percentage of NAV

HSBC Canadian Bond Fund - Institutional Series 42.92% HSBC Mortgage Fund - Institutional Series 17.21% HSBC Dividend Fund - Institutional Series 10.42% HSBC Global Equity Fund - Institutional Series 10.32% HSBC Canadian Money Market Fund - Institutional Series 6.98% HSBC Equity Fund - Institutional Series 6.79% HSBC Emerging Markets Debt Fund - Institutional Series 4.46% HSBC Emerging Markets Fund - Institutional Series 1.07% Other net assets (liabilities) -0.17% Total of Top 25 Holdings 100.00% * The Fund had less than 25 holdings as at December 31, 2020.

5 HSBC World Selection Diversified Conservative Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC World Selection® Diversified Moderate Conservative Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

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

You may also contact us using one of these methods to request a Financial markets unravelled over the latter half of the first copy of the Fund’s interim financial report, proxy voting policies quarter as health officials around the world recommended and procedures, proxy voting disclosure record or quarterly social distancing and quarantining of non-essential workers to portfolio disclosure. stop the spread of COVID-19. This caused a brief but acute liquidity crisis, driving indiscriminate selling of financial assets Investment Objective and Strategies worldwide. After the first quarter, risk sentiment shifted quickly The fundamental investment objective of this Fund is to provide as governments enacted massive fiscal and monetary stimulus investors with moderate capital preservation and interest that drove a sustained recovery in financial markets over the income with some potential moderate long-term capital growth remainder of 2020. through a diversified portfolio of investments across several asset classes. Markets finished the year with impressive gains. The improving economy, as well as expectations for a similar sharp rebound in To achieve its objectives, the Fund invests in other mutual corporate profits in 2021, supported forward-looking investor funds and uses strategic asset allocation as the principal sentiment, as did US election results and, most importantly, the investment strategy. The Fund has an established policy asset announcement that three vaccines for COVID-19 had test mix, based on its stated objectives. In addition to adjusting the results with extremely high efficacy. Fund’s asset mix depending on economic conditions and the relative value of securities in the Fund, the Fund may also use Although the Fund generated a positive return in a volatile year, tactical asset allocation to take advantage of current and it underperformed its benchmark. Security selection within the expected future market conditions. fixed income portion of the Fund added value, but this was more than offset by the negative impacts of security selection Risk in the Fund’s equity segments. The risks of investing in the Fund remain as discussed in the Simplified Prospectus. During the year, there were no material Recent Developments changes to the Fund that affected the overall risk level of Because of the unprecedented speed of the rally in most asset the Fund. classes after March 2020, expected returns for 2021 are still positive, but somewhat less attractive than they were in early This Fund is suitable for investors who want to earn interest 2020. Many economies will recover to pre-COVID-19 levels of income with some potential for low to moderate long-term activity in 2021, although we don’t expect to reach this growth of their capital. Investors in this Fund should have a milestone in Canada until early 2022. We maintain our view medium-term investment time horizon and a low to medium that the economic fallout from the pandemic is likely to tolerance for investment risk. dissipate as aggressive policy moves continue to support liquidity and economic momentum. The key risk to our central

1 HSBC World Selection Diversified Moderate Conservative Fund scenario remains the virus and its variants or a stall in the HSBC Investment Funds (Canada) Inc., they may charge you an rollout of vaccines. Changes in fiscal or monetary policy annual fee to cover the annual administration costs of the plan. direction and the relationship between China and the US are We permit HSBC Investment Funds (Canada) Inc. to collect risks to monitor as well. these fees by redeeming sufficient units of the Fund with the highest market value in your registered plan. Robust markets and record-low interest rates have moderated expected returns for various asset classes. However, greater Fund on Fund Investing confidence in the pace of the economic recovery – combined During the year, the Fund invested in units of other HSBC with still attractive relative returns for equities, corporate bonds Mutual Funds, which are also managed by us. and mortgages relative to cash and government bonds – leads us to favour these asset classes in the Fund. The portfolio Financial Highlights remains well diversified across asset classes and geographies. The following tables show selected key financial information During the period there has been a change in composition to about the Fund and are intended to help you understand the the Independent Review Committee (the “IRC”). Effective Fund’s financial performance for the past five years. This March 25, 2020, Ms. Louise Tymocko was appointed to the IRC information is derived from the Fund’s audited annual financial as a member, replacing Mr. William (Bill) Bakk who left as his statements. The information in the following tables is based on term of office expired. Ms. Lisa Pankratz also took over as Chair prescribed regulations, and, as a result, is not expected to add of the IRC effective March 25, 2020. In addition, effective down due to the increase/decrease in net assets from February 18, 2021, Ms. Sharon Morrisroe was also appointed to operations being based on average units outstanding during the the IRC as a member, replacing Mr. Neil de Gelder who left year and all other numbers being based on actual units following the expiry of his term in March of 2021. outstanding at the relevant point in time.

Related Party Transactions We, on behalf of the Fund, or the Fund Manager, may, from HSBC World Selection Diversified Moderate time to time, enter into transactions or arrangements with or Conservative Fund – Investor Series – Net (1) involving other members of the HSBC Group or other people or Assets per Unit companies related or connected to us or the Fund. To proceed Year(s) ended December 31 with the transactions, the Fund relies on the positive 2020 2019 2018 2017 2016 recommendation of the Fund’s Independent Review Committee. A Net assets per unit, beginning of condition of this positive recommendation is that the transactions year (2) $13.89 $12.83 $13.70 $13.07 $12.87 are performed in accordance with our policy on Related Party Increase (decrease) from Transactions. For more general information on persons related operations: to the Fund and the types of potential transactions, see the Total revenue 0.45 0.44 0.51 0.41 0.43 Fund’s Simplified Prospectus. Total expenses (0.22) (0.22) (0.21) (0.22) (0.22) Realized gains (losses) 0.07 0.09 0.09 0.11 0.46 The following is a summary of current transactions and Unrealized gains (losses) 0.15 0.93 (0.91) 0.49 0.06 arrangements with entities that are related to us or the Fund. Total increase (decrease) from operations (2) $0.45 $1.24 $(0.52) $0.79 $0.73 Manager, Trustee and Investment Advisor Distributions to unitholders: We are the manager, trustee and primary investment advisor of From net investment income the Fund. As manager, we manage the overall business and (excluding dividends) (0.05) (0.10) (0.10) (0.08) (0.08) operations of the Fund. As trustee, we hold legal title to the From dividends (0.10) (0.10) (0.07) (0.08) (0.08) From capital gains – – (0.17) – (0.37) property of the Fund on your behalf. As primary investment Return of capital – – – – – advisor, we provide investment advice and portfolio Total annual distributions (2,3) $(0.15) $(0.20) $(0.34) $(0.16) $(0.53) management services to the Fund. We receive a fee from the Fund for these services based on assets under management, Net assets per unit at December 31 of year shown (2) $14.23 $13.89 $12.83 $13.70 $13.07 calculated daily and paid monthly.

2 HSBC World Selection Diversified Moderate Conservative Fund

Ratios and Supplemental Data HSBC World Selection Diversified Moderate 2020 2019 2018 2017 2016 Conservative Fund – Institutional Series – Net (1) Total net asset value Assets per Unit (in 000s) (4) $388,390 $379,528 $352,546 $342,013 $287,724 Year(s) ended December 31 Number of units 2020** 2019** 2018** 2017** 2016 outstanding (in Net assets per unit, beginning of 000s) (4) 27,296 27,328 27,476 24,964 22,021 year (2) $– $10.00 $10.00 $9.48 $9.81 Management expense ratio Increase (decrease) from ("MER") (5) 1.69% 1.69% 1.64% 1.69% 1.73% operations: MER before waivers Total revenue 0.12 0.03 0.09 0.05 0.02 or absorptions (5) 1.69% 1.69% 1.64% 1.69% 1.73% Total expenses – – – (0.01) – Trading expense Realized gains (losses) – – 0.03 0.04 – ratio (6) 0.03% 0.02% 0.02% 0.01% 0.03% Unrealized gains (losses) (1.24) (0.02) 0.26 0.34 (0.50) Portfolio turnover Total increase (decrease) from rate (7) 13.20% 9.11% 9.70% 7.85% 31.67% operations (2) $(1.12) $0.01 $0.38 $0.42 $(0.48) Net asset value per unit (4) $14.23 $13.89 $12.83 $13.70 $13.07 Distributions to unitholders: From net investment income (excluding dividends) – – – – (0.07) HSBC World Selection Diversified Moderate From dividends – – – – (0.09) From capital gains – – – – (0.39) Conservative Fund – Manager Series – Net Return of capital – – – – – Assets per Unit(1) Year(s) ended December 31 Total annual distributions (2,3) $– $– $– $– $(0.55) Net assets per unit at December 2020 2019 2018* 2017* 2016* 31 of year shown (2) $– $– $– $– $9.48

Net assets per unit, beginning of year (2) $10.19 $9.44 $10.00 $– $– Increase (decrease) from Ratios and Supplemental Data operations: 2020** 2019** 2018** 2017** 2016 Total revenue 0.34 0.39 0.31 – – Total expenses (0.07) (0.10) (0.04) – – Total net asset value (in Realized gains (losses) 0.05 0.09 0.06 – – 000s) (4) $– $– $– $– $58 Unrealized gains (losses) 0.14 0.27 (0.54) – – Number of units outstanding (in 000s) (4) – – – – 6 Total increase (decrease) from Management expense ratio operations (2) $0.46 $0.65 $(0.21) $– $– ("MER") (5) 0.17% 0.18% 0.17% 0.58% 0.32% Distributions to unitholders: MER before waivers or From net investment income absorptions (5) 0.17% 0.18% 0.17% 0.61% 0.32% (excluding dividends) (0.07) (0.12) (0.10) – – Trading expense ratio (6) 0.03% 0.02% 0.02% 0.01% 0.03% From dividends (0.14) (0.12) (0.08) – – Portfolio turnover rate (7) 13.20% 9.11% 9.70% 7.85% 31.67% From capital gains – – (0.17) – – Net asset value per unit (4) $– $– $– $– $9.48 Return of capital – – – – – ** The Institutional Series was fully redeemed during 2017, 2018, 2019 Total annual distributions (2,3) $(0.21) $(0.24) $(0.35) $– $– and 2020; however, it remains in offer as at period-end. Net assets per unit at December 31 (1) This information is derived from the Fund’s audited annual financial of year shown (2) $10.42 $10.19 $9.44 $– $– statements. All balances are stated in International Financial Reporting Standards (“IFRS”). Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset Ratios and Supplemental Data value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the 2020 2019 2018* 2017* 2016* actual number of units outstanding for the relevant series at the Total net asset value (in 000s) (4) $388 $371 $10 $– $– relevant time. The increase/decrease in net assets from operations Number of units outstanding (in per unit is based on the weighted average number of units 000s) (4) 37 36 1 – – outstanding for the relevant series over the fiscal year. Management expense ratio (3) Distributions are automatically reinvested in additional units of the ("MER") (5) 0.84% 1.08% 0.65% – – Fund, unless the unitholder withdraws from the automatic MER before waivers or reinvestment plan by providing written notice to us. absorptions (5) 0.84% 1.08% 0.65% – – Trading expense ratio (6) 0.03% 0.02% 0.02% – – (4) This information is provided as at December 31 of the year shown. Portfolio turnover rate (7) 13.20% 9.11% 9.70% – – (5) MER is based on total expenses (including a portion of the Net asset value per unit (4) $10.42 $10.19 $9.44 $– $– operating expenses of the underlying funds in proportion to the * The Manager Series was fully redeemed between 2015 and 2018. Fund’s holdings in the other funds and excluding distributions, commissions and other portfolio transaction costs) for the stated year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one

3 HSBC World Selection Diversified Moderate Conservative Fund

mutual fund to another and from one series of units to another. We of different fund series may vary for a number of reasons, may have waived or absorbed certain fees and expenses otherwise including differences in management fees and expenses. The payable by the Fund. The amount of expenses absorbed or waived Fund’s past performance does not necessarily indicate how it is at the discretion of and can be terminated at any time by us. Please see the prospectus, Fund Facts and other disclosure will perform in the future. documents for further details. Year-by-Year Returns (6) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage Years ended December 31 of daily average net asset value during the year. The following bar charts show the Fund’s performance for each (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s of the years shown, and illustrate how the Fund’s performance portfolio advisor manages its portfolio investments. A portfolio changed from year to year. In percentage terms, the bar charts turnover rate of 100% is equivalent to the Fund buying and selling show how much an investment made on the first day of each all of the securities in its portfolio once in the course of the year. financial year would have grown or decreased by the last day of The higher the Fund’s portfolio turnover rate in a year, the greater each financial year. the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. Annual Returns – Investor Series 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 9.7% weighted market value of the portfolio securities, excluding short- 10% 7.7% 7.2% term securities. 6.1% 5.6% 6.1% 5% 2.6% 3.5% Management Fees 0.2% For the year ended December 31, 2020, the Fund paid us 0% management fees of $5,228,431. The management fee for each -5% series is calculated as a percentage of the daily net asset value -3.8% 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 these fees do not duplicate fees payable by mutual funds in 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 which the Fund invests for the same service.

The Fund’s management fees were used by us to pay costs for Annual Returns – Manager Series managing the investment portfolio, providing investment 15% analysis and recommendations, making investment decisions, 10.5% making brokerage arrangements for the purchase and sale of 10% the investment portfolio and providing other services. The 5% 4.4% management fees also funded commission payments and other compensation (collectively “distribution costs”) to sales 0% representatives and registered dealers and brokers, including 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 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2015* 2016* 2017* 2018* 2019 2020 the Fund. * The Manager Series was fully redeemed between 2015 and 2018. For the year ended December 31, 2020, approximately 46% of the total management fees collected from all HSBC Mutual Annual Compound Returns Funds were used to fund distribution costs. In comparison, for Year ended December 31, 2020 the Fund, such distribution costs represented 48% of the The following tables show the Fund’s historical annual management fees collected. This may vary by series depending compound total returns for the years indicated, compared with on the assets invested in each of the series. benchmark index over the same period. The benchmark of this Past Performance Fund is a weighted composite consisting of the FTSE Canada Universe Bond Index (52%), S&P/TSX Capped Composite Index The performance information shown assumes that all (22.5%), MSCI World Net Index (in Canadian dollars) (20.5%) distributions made by the Fund in the years shown were and FTSE Canada 91 Day T-Bill Index (5%). reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, The FTSE Canada Universe Bond Index is a broad measure of distribution, optional charges or expenses you may be charged the total return for the Canadian bond market, covering outside of the Fund or the effect of any income tax you may marketable Canadian bonds with a term to maturity of more have to pay as a result of your investment in the Fund that than one year. The S&P/TSX Capped Composite Index tracks would have reduced returns or performance. The performance changes in the share prices of the largest companies listed on

4 HSBC World Selection Diversified Moderate Conservative Fund the Toronto Stock Exchange, representing a broad range of Summary of Investment Portfolio industries. The MSCI World Net Index is an international index As at December 31, 2020 that measures the performance of stocks traded in Europe, Australia, the Far East, the US, Canada and South Africa. This index is tracked in US dollars and was converted to Canadian Asset Mix dollars. The FTSE Canada 91 Day T-Bill Index is a measure of Percentage the total return of Canadian treasury bills with a term to of NAV maturity of three months. Bonds 51.21% Canadian Equities 23.66% Investor Series International Equities 20.14% Cash & Equivalents 4.99% 1 Year 3 Year 5 Year 10 Year Total 100.00% HSBC World Selection Diversified Moderate Conservative Fund 3.53% 2.99% 4.13% 4.43% 52% FTSE Canada Universe Bond Index, Top 25 Holdings* 22.5% S&P/TSX Capped Composite Percentage Index, 20.5% MSCI World Net Index (C$), of NAV 5% FTSE Canada 91 Day T-Bill Index 9.17% 6.82% 6.60% 6.40% HSBC Canadian Bond Fund - Institutional Series 32.92% Manager Series HSBC Global Equity Fund - Institutional Series 17.90% HSBC Mortgage Fund - Institutional Series 13.88% Since HSBC Equity Fund - Institutional Series 12.07% 1 Year Inception HSBC Dividend Fund - Institutional Series 11.59% HSBC World Selection Diversified Moderate HSBC Canadian Money Market Fund - Institutional Series 5.15% Conservative Fund 4.42% 4.60% HSBC Emerging Markets Debt Fund - Institutional Series 4.41% 52% FTSE Canada Universe Bond Index, 22.5% S&P/TSX HSBC Emerging Markets Fund - Institutional Series 2.24% Capped Composite Index, 20.5% MSCI World Net Other net assets (liabilities) -0.16% Index (C$), 5% FTSE Canada 91 Day T-Bill Index 9.17% 7.90% Total of Top 25 Holdings 100.00% (1) Due to the fact that several benchmark indices are only available on * The Fund had less than 25 holdings as at December 31, 2020. a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- end date each Fund was in operation. (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations section of this report.

5 HSBC World Selection Diversified Moderate Conservative Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC World Selection® Diversified Balanced Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

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

You may also contact us using one of these methods to request a Financial markets unravelled over the latter half of the first copy of the Fund’s interim financial report, proxy voting policies quarter as health officials around the world recommended and procedures, proxy voting disclosure record or quarterly social distancing and quarantining of non-essential workers to portfolio disclosure. stop the spread of COVID-19. This caused a brief but acute liquidity crisis, driving indiscriminate selling of financial assets Investment Objective and Strategies worldwide. After the first quarter, risk sentiment shifted quickly The fundamental investment objective of this Fund is to provide as governments enacted massive fiscal and monetary stimulus investors with a balance of income and potential long-term that drove a sustained recovery in financial markets over the capital growth through a diversified portfolio of investments remainder of 2020. across several asset classes. Markets finished the year with impressive gains. The improving To achieve its objectives, the Fund invests in other mutual economy, as well as expectations for a similar sharp rebound in funds and uses strategic asset allocation as the principal corporate profits in 2021, supported forward-looking investor investment strategy. The Fund has an established policy asset sentiment, as did US election results and, most importantly, the mix, based on its stated objectives. In addition to adjusting the announcement that three vaccines for COVID-19 had test Fund’s asset mix depending on economic conditions and the results with extremely high efficacy. relative value of securities in the Fund, the Fund may also use tactical asset allocation to take advantage of current and Although the Fund generated a positive return in a volatile year, expected future market conditions. it underperformed its benchmark. Security selection within the fixed income portion of the Fund added value, but this was Risk more than offset by the negative impacts of security selection The risks of investing in the Fund remain as discussed in the in the Fund’s equity segments. Simplified Prospectus. During the year, there were no material changes to the Fund that affected the overall risk level of Recent Developments the Fund. Because of the unprecedented speed of the rally in most asset classes after March 2020, expected returns for 2021 are still This Fund is suitable for investors who want to earn a balance positive, but somewhat less attractive than they were in early of interest income with some potential for low to moderate 2020. Many economies will recover to pre-COVID-19 levels of long-term growth of their capital. Investors in this Fund should activity in 2021, although we don’t expect to reach this have a medium-term investment time horizon and a low to milestone in Canada until early 2022. We maintain our view medium tolerance for investment risk. that the economic fallout from the pandemic is likely to dissipate as aggressive policy moves continue to support liquidity and economic momentum. The key risk to our central

1 HSBC World Selection Diversified Balanced Fund scenario remains the virus and its variants or a stall in the HSBC Investment Funds (Canada) Inc., they may charge you an rollout of vaccines. Changes in fiscal or monetary policy annual fee to cover the annual administration costs of the plan. direction and the relationship between China and the US are We permit HSBC Investment Funds (Canada) Inc. to collect risks to monitor as well. these fees by redeeming sufficient units of the Fund with the highest market value in your registered plan. Robust markets and record-low interest rates have moderated expected returns for various asset classes. However, greater Fund on Fund Investing confidence in the pace of the economic recovery – combined During the year, the Fund invested in units of other HSBC with still attractive relative returns for equities, corporate bonds Mutual Funds, which are also managed by us. and mortgages relative to cash and government bonds – leads us to favour these asset classes in the Fund. The portfolio Financial Highlights remains well diversified across asset classes and geographies. The following tables show selected key financial information During the period there has been a change in composition to about the Fund and are intended to help you understand the the Independent Review Committee (the “IRC”). Effective Fund’s financial performance for the past five years. This March 25, 2020, Ms. Louise Tymocko was appointed to the IRC information is derived from the Fund’s audited annual financial as a member, replacing Mr. William (Bill) Bakk who left as his statements. The information in the following tables is based on term of office expired. Ms. Lisa Pankratz also took over as Chair prescribed regulations, and, as a result, is not expected to add of the IRC effective March 25, 2020. In addition, effective down due to the increase/decrease in net assets from February 18, 2021, Ms. Sharon Morrisroe was also appointed to operations being based on average units outstanding during the the IRC as a member, replacing Mr. Neil de Gelder who left year and all other numbers being based on actual units following the expiry of his term in March of 2021. outstanding at the relevant point in time.

Related Party Transactions We, on behalf of the Fund, or the Fund Manager, may, from HSBC World Selection Diversified Balanced (1) time to time, enter into transactions or arrangements with or Fund – Investor Series – Net Assets per Unit involving other members of the HSBC Group or other people or Year(s) ended December 31 companies related or connected to us or the Fund. To proceed 2020 2019 2018 2017 2016 with the transactions, the Fund relies on the positive Net assets per unit, beginning of recommendation of the Fund’s Independent Review Committee. A year (2) $15.75 $14.20 $15.42 $14.40 $14.33 condition of this positive recommendation is that the transactions Increase (decrease) from are performed in accordance with our policy on Related Party operations: Transactions. For more general information on persons related Total revenue 0.46 0.52 0.65 0.45 0.49 to the Fund and the types of potential transactions, see the Total expenses (0.26) (0.27) (0.26) (0.27) (0.28) Fund’s Simplified Prospectus. Realized gains (losses) 0.12 0.15 0.12 0.12 0.84 Unrealized gains (losses) 0.13 1.33 (1.36) 0.84 (0.08) The following is a summary of current transactions and Total increase (decrease) from arrangements with entities that are related to us or the Fund. operations (2) $0.45 $1.73 $(0.85) $1.14 $0.97 Distributions to unitholders: Manager, Trustee and Investment Advisor From net investment income We are the manager, trustee and primary investment advisor of (excluding dividends) – (0.05) (0.05) (0.02) (0.01) the Fund. As manager, we manage the overall business and From dividends (0.12) (0.13) (0.09) (0.10) (0.15) From capital gains – – (0.23) – (0.73) operations of the Fund. As trustee, we hold legal title to the Return of capital – – – – – property of the Fund on your behalf. As primary investment Total annual distributions (2,3) $(0.12) $(0.18) $(0.37) $(0.12) $(0.89) advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Net assets per unit at December 31 of year shown (2) $16.11 $15.75 $14.20 $15.42 $14.40 Fund for these services based on assets under management, calculated daily and paid monthly.

2 HSBC World Selection Diversified Balanced Fund

Ratios and Supplemental Data HSBC World Selection Diversified Balanced 2020 2019 2018 2017 2016 Fund – Institutional Series – Net Assets per (1) Total net asset value Unit (in 000s) (4) $750,031 $741,024 $677,874 $653,583 $546,207 Year(s) ended December 31 Number of units 2020** 2019 2018** 2017** 2016 outstanding (in Net assets per unit, beginning of 000s) (4) 46,569 47,043 47,737 42,381 37,924 year (2) $10.00 $9.51 $10.00 $10.13 $9.90 Management expense ratio Increase (decrease) from ("MER") (5) 1.84% 1.84% 1.79% 1.90% 1.99% operations: MER before waivers Total revenue 0.16 0.22 0.10 0.19 0.11 or absorptions (5) 1.84% 1.84% 1.79% 1.90% 1.99% Total expenses (0.03) (0.02) – (0.04) (0.03) Trading expense Realized gains (losses) 0.02 0.04 0.01 0.04 0.05 ratio (6) 0.04% 0.03% 0.03% 0.02% 0.05% Unrealized gains (losses) (2.67) (0.21) (0.12) 0.49 (1.68) Portfolio turnover Total increase (decrease) from rate (7) 12.41% 8.92% 7.99% 6.36% 43.26% operations (2) $(2.52) $0.03 $(0.01) $0.68 $(1.55) Net asset value per unit (4) $16.11 $15.75 $14.20 $15.42 $14.40 Distributions to unitholders: From net investment income (excluding dividends) – (0.08) (0.06) – (0.01) HSBC World Selection Diversified Balanced From dividends (1.36) (0.21) (0.10) – (0.14) (1) From capital gains – – (0.26) – (0.69) Fund – Manager Series – Net Assets per Unit Return of capital – – – – – Year(s) ended December 31 Total annual distributions (2,3) $(1.36) $(0.29) $(0.42) $– $(0.84) 2020 2019 2018* 2017* 2016* Net assets per unit at December Net assets per unit, beginning of 31 of year shown (2) $– $10.00 $9.51 $– $10.13 year (2) $10.31 $9.32 $10.00 $– $– Increase (decrease) from operations: Ratios and Supplemental Data Total revenue 0.17 0.37 0.38 – – 2020** 2019 2018** 2017** 2016 Total expenses (0.13) (0.13) (0.07) – – Realized gains (losses) 0.08 0.09 0.06 – – Total net asset value (in Unrealized gains (losses) 0.24 0.64 (0.69) – 0.17 000s) (4) $– $49 $1 $– $60 Number of units outstanding (in Total increase (decrease) from 000s) (4) – 5 – – 6 operations (2) $0.36 $0.97 $(0.32) $– $0.17 Management expense ratio Distributions to unitholders: ("MER") (5) 0.51% 0.51% 0.31% 0.51% 0.45% From net investment income MER before waivers or (excluding dividends) – (0.06) (0.05) – – absorptions (5) 1.14% 1.97% 0.31% 1.37% 1.33% From dividends (6.13) (0.15) (0.08) – – Trading expense ratio (6) 0.04% 0.03% 0.03% 0.02% 0.05% From capital gains – – (0.20) – – Portfolio turnover rate (7) 12.41% 8.92% 7.99% 6.36% 43.26% Return of capital – – – – – Net asset value per unit (4) $– $10.00 $9.51 $– $10.13 Total annual distributions (2,3) $(6.13) $(0.21) $(0.33) $– $– ** The Institutional Series was fully redeemed during 2017, 2018 and Net assets per unit at December 31 2020; however, it remains in offer as at period-end. of year shown (2) $4.55 $10.31 $9.32 $– $– (1) This information is derived from the Fund’s audited annual financial

statements. All balances are stated in International Financial Reporting Standards (“IFRS”). Under IFRS, the net assets per unit Ratios and Supplemental Data presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. 2020 2019 2018* 2017* 2016* (2) Net assets per unit and distributions per unit are based on the Total net asset value (in 000s) (4) $1 $40 $24 $– $– actual number of units outstanding for the relevant series at the Number of units outstanding (in relevant time. The increase/decrease in net assets from operations 000s) (4) – 4 3 – – per unit is based on the weighted average number of units Management expense ratio outstanding for the relevant series over the fiscal year. ("MER") (5) 1.40% 1.35% 0.90% – 1.04% MER before waivers or (3) Distributions are automatically reinvested in additional units of the absorptions (5) 4.06% 4.31% 0.90% – 1.04% Fund, unless the unitholder withdraws from the automatic Trading expense ratio (6) 0.04% 0.03% 0.03% – 0.05% reinvestment plan by providing written notice to us. Portfolio turnover rate (7) 12.41% 8.92% 7.99% – 43.26% (4) This information is provided as at December 31 of the year shown. Net asset value per unit (4) $4.55 $10.31 $9.32 $– $– (5) MER is based on total expenses (including a portion of the * The Manager Series was fully redeemed between 2015 and 2018. operating expenses of the underlying funds in proportion to the Fund’s holdings in the other funds and excluding distributions, commissions and other portfolio transaction costs) for the stated year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one

3 HSBC World Selection Diversified Balanced Fund

mutual fund to another and from one series of units to another. We of different fund series may vary for a number of reasons, may have waived or absorbed certain fees and expenses otherwise including differences in management fees and expenses. The payable by the Fund. The amount of expenses absorbed or waived Fund’s past performance does not necessarily indicate how it is at the discretion of and can be terminated at any time by us. Please see the prospectus, Fund Facts and other disclosure will perform in the future. documents for further details. Year-by-Year Returns (6) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage Years ended December 31 of daily average net asset value during the year. The following bar charts show the Fund’s performance for each (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s of the years shown, and illustrate how the Fund’s performance portfolio advisor manages its portfolio investments. A portfolio changed from year to year. In percentage terms, the bar charts turnover rate of 100% is equivalent to the Fund buying and selling show how much an investment made on the first day of each all of the securities in its portfolio once in the course of the year. financial year would have grown or decreased by the last day of The higher the Fund’s portfolio turnover rate in a year, the greater each financial year. the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. Annual Returns – Investor Series There is not necessarily a relationship between a high turnover rate and the performance of the Fund. The rate is calculated based on 20% the lesser of purchases or sales of securities divided by the average 15% 13.0% weighted market value of the portfolio securities, excluding short- 12.2% 10% term securities. 7.8% 7.7% 6.6% 7.9% 5% 3.7% 3.0% Management Fees 0% For the year ended December 31, 2020, the Fund paid us management fees of $11,085,338. The management fee for -5% -2.5% -5.5% each series is calculated as a percentage of the daily net asset -10% value for that series. The fees are reduced, where required, so -15% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 that these fees do not duplicate fees payable by mutual funds in 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 which the Fund invests for the same service.

The Fund’s management fees were used by us to pay costs for Annual Returns – Manager Series managing the investment portfolio, providing investment 20% analysis and recommendations, making investment decisions, 15% 12.7% making brokerage arrangements for the purchase and sale of 10% the investment portfolio and providing other services. The 5.7% management fees also funded commission payments and other 5% compensation (collectively “distribution costs”) to sales 0% representatives and registered dealers and brokers, including -5% HSBC Investment Funds (Canada) Inc., for units of the Fund -10% bought and held by unitholders. Finally, we used management -15% fees to pay for additional marketing and distribution services to Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2015* 2016* 2017* 2018* 2019 2020 the Fund. * The Manager Series was fully redeemed between 2015 and 2018. For the year ended December 31, 2020, approximately 46% of the total management fees collected from all HSBC Mutual Annual Compound Returns Funds were used to fund distribution costs. In comparison, for Year ended December 31, 2020 the Fund, such distribution costs represented 47% of the The following tables show the Fund’s historical annual management fees collected. This may vary by series depending compound total returns for the years indicated, compared with on the assets invested in each of the series. the benchmark index over the same period. The benchmark of Past Performance this Fund is a weighted composite consisting of the FTSE Canada Universe Bond Index (33%), MSCI World Net Index (in The performance information shown assumes that all Canadian dollars) (32%), S&P/TSX Capped Composite Index distributions made by the Fund in the years shown were (30%) and FTSE Canada 91 Day T-Bill Index (5%). reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, The FTSE Canada Universe Bond Index is a broad measure of distribution, optional charges or expenses you may be charged the total return for the Canadian bond market, covering outside of the Fund or the effect of any income tax you may marketable Canadian bonds with a term to maturity of more have to pay as a result of your investment in the Fund that than one year. The S&P/TSX Capped Composite Index tracks would have reduced returns or performance. The performance changes in the share prices of the largest companies listed on

4 HSBC World Selection Diversified Balanced Fund the Toronto Stock Exchange, representing a broad range of Summary of Investment Portfolio industries. The MSCI World Net Index is an international index As at December 31, 2020 that measures the performance of stocks traded in Europe, Australia, the Far East, the US, Canada and South Africa. This index is tracked in US dollars and was converted to Canadian Asset Mix dollars. The FTSE Canada 91 Day T-Bill Index is a measure of Percentage the total return of Canadian T-Bills with a term to maturity of of NAV three months. Bonds 32.31% International Equities 31.55% Investor Series Canadian Equities 31.27% Cash & Equivalents 4.87% 1 Year 3 Year 5 Year 10 Year Total 100.00% HSBC World Selection Diversified Balanced Fund 3.04% 3.01% 4.69% 5.24% 33% FTSE Canada Universe Bond Index, Top 25 Holdings* 32% MSCI World Net Index (C$), 30% Percentage S&P/TSX Capped Composite Index, 5% of NAV FTSE Canada 91 Day T-Bill Index 9.53% 7.47% 7.70% 7.44% HSBC Global Equity Fund - Institutional Series 28.33% Manager Series HSBC Equity Fund - Institutional Series 23.24% HSBC Canadian Bond Fund - Institutional Series 22.10% Since HSBC Mortgage Fund - Institutional Series 5.93% 1 Year Inception HSBC Dividend Fund - Institutional Series 5.65% HSBC World Selection Diversified Balanced Fund 5.68% 4.88% HSBC Canadian Money Market Fund - Institutional Series 5.04% 33% FTSE Canada Universe Bond Index, 32% MSCI HSBC Emerging Markets Debt Fund - Institutional Series 4.28% World Net Index (C$), 30% S&P/TSX Capped Composite HSBC Emerging Markets Fund - Institutional Series 3.22% Index, 5% FTSE Canada 91 Day T-Bill Index 9.53% 8.09% HSBC Small Cap Growth Fund - Institutional Series 2.38% (1) Due to the fact that several benchmark indices are only available on Other net assets (liabilities) -0.17% a monthly basis, the performance data for the HSBC Funds and the Total of Top 25 Holdings 100.00% benchmark indices are calculated using values from the first month- * The Fund had less than 25 holdings as at December 31, 2020. end date each Fund was in operation. (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations section of this report.

5 HSBC World Selection Diversified Balanced Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC World Selection® Diversified Growth Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

®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 Investment Performance Fund; we, us and our refer to HSBC Global Asset Management The HSBC World Selection Diversified Growth Fund (Investor (Canada) Limited; and the Fund refers to the HSBC World Series) rose 2.42% for the 12 months ending December 31, Selection Diversified Growth Fund. 2020, while the benchmark rose 10.50% over the same period. The benchmark is a weighted composite consisting of the MSCI We are the manager, trustee and primary investment advisor of World Net Index (C$) (46%), S&P/TSX Capped Composite Index the Fund. (31%) and FTSE Canada Universe Bond Index (23%). The Introduction Fund’s returns are after the deduction of fees and expenses, This Annual Management Report of Fund Performance contains while the benchmark’s returns do not include any costs of financial highlights but does not contain the complete annual investing. See the Past Performance section for the returns of financial statements of the Fund. You may obtain a copy of the other series of the Fund, which may vary due to differences in annual financial statements at your request, at no cost, by management fees and expenses. calling us toll-free at 1-888-390-3333, by visiting our website at Financial markets unravelled over the latter half of the first www.assetmanagement.hsbc.ca, by visiting the SEDAR quarter as health officials around the world recommended website at www.sedar.com or by writing to us at: social distancing and quarantining of non-essential workers to HSBC Global Asset Management (Canada) Limited stop the spread of COVID-19. This caused a brief but acute 3rd Floor, 885 West Georgia Street liquidity crisis, driving indiscriminate selling of financial assets Vancouver, BC V6C 3E8 worldwide. After the first quarter, risk sentiment shifted quickly as governments enacted massive fiscal and monetary stimulus You may also contact us using one of these methods to request a that drove a sustained recovery in financial markets over the copy of the Fund’s interim financial report, proxy voting policies remainder of 2020. and procedures, proxy voting disclosure record or quarterly portfolio disclosure. Markets finished the year with impressive gains. The improving economy, as well as expectations for a similar sharp rebound in Investment Objective and Strategies corporate profits in 2021, supported forward-looking investor The fundamental investment objective of this Fund is to provide sentiment, as did US election results and, most importantly, the investors with potential long-term capital growth and low to announcement that three vaccines for COVID-19 had test moderate income through a diversified portfolio of investments results with extremely high efficacy. across several asset classes. Although the Fund generated a positive return in a volatile year, To achieve its objectives, the Fund invests in other mutual it underperformed its benchmark. Security selection within the funds and uses strategic asset allocation as the principal fixed income portion of the Fund added value, but this was investment strategy. The Fund has an established policy asset more than offset by the negative impacts of security selection mix, based on its stated objectives. In addition to adjusting the in the Fund’s equity segments. Fund’s asset mix depending on economic conditions and the relative value of securities in the Fund, the Fund may also use Recent Developments tactical asset allocation to take advantage of current and Because of the unprecedented speed of the rally in most asset expected future market conditions. classes after March 2020, expected returns for 2021 are still Risk positive, but somewhat less attractive than they were in early The risks of investing in the Fund remain as discussed in the 2020. Many economies will recover to pre-COVID-19 levels of Simplified Prospectus. During the year, there were no material activity in 2021, although we don’t expect to reach this changes to the Fund that affected the overall risk level of milestone in Canada until early 2022. We maintain our view the Fund. that the economic fallout from the pandemic is likely to dissipate as aggressive policy moves continue to support This Fund is suitable for investors who want long-term potential liquidity and economic momentum. The key risk to our central growth of their capital and low to moderate interest income. scenario remains the virus and its variants or a stall in the Investors in this Fund should have a long-term investment time rollout of vaccines. Changes in fiscal or monetary policy horizon and a low to medium tolerance for investment risk. direction and the relationship between China and the US are Results of Operations risks to monitor as well. As of December 31, 2020, the Fund's net assets decreased by Robust markets and record-low interest rates have moderated 1.8% to $356.2 million from $362.9 million at the end of 2019. expected returns for various asset classes. However, greater Net withdrawals, partially offset by positive investment confidence in the pace of the economic recovery – combined performance, resulted in an overall decrease in net asset value. with still attractive relative returns for equities, corporate bonds

1 HSBC World Selection Diversified Growth Fund and mortgages relative to cash and government bonds – leads Financial Highlights us to favour these asset classes in the Fund. The portfolio The following tables show selected key financial information remains well diversified across asset classes and geographies. about the Fund and are intended to help you understand the During the period there has been a change in composition to Fund’s financial performance for the past five years. This the Independent Review Committee (the “IRC”). Effective information is derived from the Fund’s audited annual financial March 25, 2020, Ms. Louise Tymocko was appointed to the IRC statements. The information in the following tables is based on as a member, replacing Mr. William (Bill) Bakk who left as his prescribed regulations, and, as a result, is not expected to add term of office expired. Ms. Lisa Pankratz also took over as Chair down due to the increase/decrease in net assets from of the IRC effective March 25, 2020. In addition, effective operations being based on average units outstanding during the February 18, 2021, Ms. Sharon Morrisroe was also appointed to year and all other numbers being based on actual units the IRC as a member, replacing Mr. Neil de Gelder who left outstanding at the relevant point in time. following the expiry of his term in March of 2021. Related Party Transactions HSBC World Selection Diversified Growth (1) We, on behalf of the Fund, or the Fund Manager, may, from Fund – Investor Series – Net Assets per Unit time to time, enter into transactions or arrangements with or Year(s) ended December 31 involving other members of the HSBC Group or other people or 2020 2019 2018 2017 2016 companies related or connected to us or the Fund. To proceed Net assets per unit, beginning of with the transactions, the Fund relies on the positive year (2) $16.73 $14.84 $16.36 $15.00 $15.09 recommendation of the Fund’s Independent Review Committee. A Increase (decrease) from condition of this positive recommendation is that the transactions operations: are performed in accordance with our policy on Related Party Total revenue 0.44 0.57 0.76 0.49 0.49 Transactions. For more general information on persons related Total expenses (0.31) (0.32) (0.32) (0.32) (0.33) to the Fund and the types of potential transactions, see the Realized gains (losses) 0.20 0.23 0.20 0.26 1.24 Unrealized gains (losses) 0.04 1.57 (1.72) 1.01 (0.29) Fund’s Simplified Prospectus. Total increase (decrease) from The following is a summary of current transactions and operations (2) $0.37 $2.05 $(1.08) $1.44 $1.11 arrangements with entities that are related to us or the Fund. Distributions to unitholders: From net investment income Manager, Trustee and Investment Advisor (excluding dividends) – (0.01) – – – We are the manager, trustee and primary investment advisor of From dividends (0.08) (0.14) (0.10) (0.07) (0.09) From capital gains – – (0.33) – (1.10) the Fund. As manager, we manage the overall business and Return of capital – – – – – operations of the Fund. As trustee, we hold legal title to the Total annual distributions (2,3) $(0.08) $(0.15) $(0.43) $(0.07) $(1.19) property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio Net assets per unit at December 31 of year shown (2) $17.06 $16.73 $14.84 $16.36 $15.00 management services to the Fund. We receive a fee from the Fund for these services based on assets under management, calculated daily and paid monthly. Ratios and Supplemental Data 2020 2019 2018 2017 2016 Distribution Services The Fund is distributed through us, HSBC Investment Funds Total net asset value (Canada) Inc. (our wholly owned subsidiary and affiliate) and (in 000s) (4) $356,024 $362,694 $335,712 $343,068 $315,402 Number of units HSBC Securities (Canada) Inc. (an affiliate) directly or through outstanding (in its division, HSBC InvestDirect. We pay distribution and 000s) (4) 20,871 21,676 22,616 20,975 21,032 servicing fees to them based on the amount of assets held in Management the investor’s account, and additionally, in some cases, on the expense ratio ("MER") (5) 2.09% 2.08% 2.03% 2.17% 2.28% amount of the initial purchase. If you hold units of this Fund MER before waivers and/or other HSBC Mutual Funds in a registered plan with or absorptions (5) 2.09% 2.08% 2.03% 2.17% 2.28% HSBC Investment Funds (Canada) Inc., they may charge you an Trading expense annual fee to cover the annual administration costs of the plan. ratio (6) 0.06% 0.04% 0.04% 0.03% 0.06% We permit HSBC Investment Funds (Canada) Inc. to collect Portfolio turnover rate (7) 10.63% 7.83% 9.70% 11.42% 49.25% these fees by redeeming sufficient units of the Fund with the Net asset value per highest market value in your registered plan. unit (4) $17.06 $16.73 $14.84 $16.36 $15.00

Fund on Fund Investing During the year, the Fund invested in units of other HSBC Mutual Funds, which are also managed by us.

2 HSBC World Selection Diversified Growth Fund

HSBC World Selection Diversified Growth HSBC World Selection Diversified Growth Fund – Manager Series – Net Assets per Unit(1) Fund – Institutional Series – Net Assets per Year(s) ended December 31 Unit(1) 2020 2019 2018 2017* 2016* Year(s) ended December 31 ** Net assets per unit, beginning of 2020 2019 2018 2017 2016 year (2) $10.63 $9.46 $10.00 $10.00 $– Net assets per unit, beginning of Increase (decrease) from year (2) $9.97 $10.00 $10.00 $10.12 $9.59 operations: Increase (decrease) from Total revenue 0.28 0.37 0.36 0.01 – operations: Total expenses (0.12) (0.15) (0.02) (0.01) – Total revenue 0.10 0.58 – 0.10 0.13 Realized gains (losses) 0.13 0.15 0.01 0.03 – Total expenses – (0.02) – (0.02) (0.03) Unrealized gains (losses) 0.05 0.99 (0.52) 0.27 0.34 Realized gains (losses) 0.02 0.10 0.01 0.11 0.31 Total increase (decrease) from Unrealized gains (losses) 0.31 (0.37) (0.12) 0.22 (3.61) operations (2) $0.34 $1.36 $(0.17) $0.30 $0.34 Total increase (decrease) from Distributions to unitholders: operations (2) $0.43 $0.29 $(0.11) $0.41 $(3.20) From net investment income Distributions to unitholders: (excluding dividends) – (0.02) – – – From net investment income From dividends (0.13) (0.17) (0.08) – – (excluding dividends) – (0.01) – – – From capital gains – – (0.28) – – From dividends – (0.13) – – (0.08) Return of capital – – – – – From capital gains – – – – (0.98) Total annual distributions (2,3) $(0.13) $(0.19) $(0.36) $– $– Return of capital – – – – – Net assets per unit at December 31 Total annual distributions (2,3) $– $(0.14) $– $– $(1.06) of year shown (2) $10.84 $10.63 $9.46 $– $– Net assets per unit at December

31 of year shown (2) $– $9.97 $– $– $10.12

Ratios and Supplemental Data 2020 2019 2018 2017* 2016* Ratios and Supplemental Data ** Total net asset value (in 2020 2019 2018 2017 2016 000s) (4) $150 $149 $130 $– $– Total net asset value (in Number of units outstanding (in 000s) (4) $– $62 $– $– $52 000s) (4) 14 14 14 – – Number of units outstanding (in Management expense ratio 000s) (4) – 6 – – 5 ("MER") (5) 1.34% 1.57% 1.23% 1.26% 2.00% Management expense ratio MER before waivers or ("MER") (5) 0.18% 0.53% 0.33% 0.39% 0.38% absorptions (5) 1.76% 2.13% 1.23% 1.26% 2.00% MER before waivers or Trading expense ratio (6) 0.06% 0.04% 0.04% 0.03% 0.06% absorptions (5) 1.16% 2.77% 0.33% 0.68% 0.38% Portfolio turnover rate (7) 10.63% 7.83% 9.70% 11.42% 49.25% Trading expense ratio (6) 0.06% 0.04% 0.04% 0.03% 0.06% Net asset value per unit (4) $10.84 $10.63 $9.46 $– $– Portfolio turnover rate (7) 10.63% 7.83% 9.70% 11.42% 49.25% * The Manager Series was fully redeemed between 2016 and 2017. Net asset value per unit (4) $– $9.97 $– $– $10.12

** The Institutional Series was fully redeemed during 2020; however, it remains in offer as at period-end. (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial Reporting Standards (“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 time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. (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 December 31 of the year shown. (5) MER is based on total expenses (including a portion of the operating expenses of the underlying funds in proportion to the Fund’s holdings in the other funds and excluding distributions, commissions and other portfolio transaction costs) for the stated year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one

3 HSBC World Selection Diversified Growth Fund

mutual fund to another and from one series of units to another. We of different fund series may vary for a number of reasons, may have waived or absorbed certain fees and expenses otherwise including differences in management fees and expenses. The payable by the Fund. The amount of expenses absorbed or waived Fund’s past performance does not necessarily indicate how it is at the discretion of and can be terminated at any time by us. Please see the prospectus, Fund Facts and other disclosure will perform in the future. documents for further details. Year-by-Year Returns (6) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage Years ended December 31 of daily average net asset value during the year. The following bar charts show the Fund’s performance for each (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s of the years shown, and illustrate how the Fund’s performance portfolio advisor manages its portfolio investments. A portfolio changed from year to year. In percentage terms, the bar charts turnover rate of 100% is equivalent to the Fund buying and selling show how much an investment made on the first day of each all of the securities in its portfolio once in the course of the year. financial year would have grown or decreased by the last day of The higher the Fund’s portfolio turnover rate in a year, the greater each financial year. the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. Annual Returns – Investor Series There is not necessarily a relationship between a high turnover rate and the performance of the Fund. The rate is calculated based on 25% the lesser of purchases or sales of securities divided by the average 20% 18.0% weighted market value of the portfolio securities, excluding short- 15% 13.8% term securities. 9.0% 9.5% 10% 8.4% 7.2% 5.0% Management Fees 5% 2.4% For the year ended December 31, 2020, the Fund paid us 0% management fees of $5,906,886. The management fee for each -5% -5.5% series is calculated as a percentage of the daily net asset value -10% -6.5% for that series. The fees are reduced, where required, so that -15% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 these fees do not duplicate fees payable by mutual funds in 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 which the Fund invests for the same service.

The Fund’s management fees were used by us to pay costs for Annual Returns – Manager Series managing the investment portfolio, providing investment 25% analysis and recommendations, making investment decisions, 20% 19.2% 14.3% making brokerage arrangements for the purchase and sale of 15% 10.2% the investment portfolio and providing other services. The 10% management fees also funded commission payments and other 5% 3.2% compensation (collectively “distribution costs”) to sales 0% representatives and registered dealers and brokers, including -5% HSBC Investment Funds (Canada) Inc., for units of the Fund -4.4% -10% bought and held by unitholders. Finally, we used management -15% fees to pay for additional marketing and distribution services to Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014* 2015* 2016* 2017* 2018* 2019 2020 the Fund. * The Manager Series was fully redeemed between 2014 and 2018. For the year ended December 31, 2020, approximately 46% of the total management fees collected from all HSBC Mutual Annual Compound Returns Funds were used to fund distribution costs. In comparison, for Year ended December 31, 2020 the Fund, such distribution costs represented 47% of the The following tables show the Fund’s historical annual management fees collected. This may vary by series depending compound total returns for the years indicated, compared with on the assets invested in each of the series. the benchmark index over the same period. The benchmark of Past Performance this Fund is a weighted composite consisting of the MSCI World Net Index (in Canadian dollars) (46%), S&P/TSX Capped The performance information shown assumes that all Composite Index (31%) and FTSE Canada Universe Bond Index distributions made by the Fund in the years shown were (23%). reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, The MSCI World Net Index is an international index that distribution, optional charges or expenses you may be charged measures the performance of stocks traded in Europe, outside of the Fund or the effect of any income tax you may Australia, the Far East, the US, Canada and South Africa. This have to pay as a result of your investment in the Fund that index is tracked in US dollars and was converted to Canadian would have reduced returns or performance. The performance dollars. The S&P/TSX Capped Composite Index tracks changes

4 HSBC World Selection Diversified Growth Fund in the share prices of the largest companies listed on the Summary of Investment Portfolio Toronto Stock Exchange, representing a broad range of As at December 31, 2020 industries. The FTSE Canada Universe Bond Index is a broad measure of the total return for the Canadian bond market, covering marketable Canadian bonds with a term to maturity of Asset Mix more than one year. Percentage of NAV

Investor Series International Equities 45.65% 1 Year 3 Year 5 Year 10 Year Canadian Equities 32.08% Bonds 22.26% HSBC World Selection Diversified Cash & Equivalents 0.01% Growth Fund 2.42% 2.88% 5.04% 5.87% Total 100.00% 46% MSCI World Net Index (C$), 31% S&P/TSX Capped Composite Index, 23% FTSE Canada Universe Bond Index 10.50% 8.41% 8.75% 8.75% Top 25 Holdings* Manager Series Percentage of NAV Since 1 Year Inception HSBC Global Equity Fund - Institutional Series 40.77% HSBC Equity Fund - Institutional Series 29.15% HSBC World Selection Diversified Growth Fund 3.22% 6.69% HSBC Canadian Bond Fund - Institutional Series 10.72% 46% MSCI World Net Index (C$), 31% S&P/TSX Capped HSBC Mortgage Fund - Institutional Series 7.33% Composite Index, 23% FTSE Canada Universe Bond HSBC Emerging Markets Fund - Institutional Series 4.88% Index 10.50% 12.14% HSBC Emerging Markets Debt Fund - Institutional Series 4.21% (1) Due to the fact that several benchmark indices are only available on HSBC Small Cap Growth Fund - Institutional Series 2.93% a monthly basis, the performance data for the HSBC Funds and the HSBC Canadian Money Market Fund - Institutional Series 0.21% benchmark indices are calculated using values from the first month- Other net assets (liabilities) -0.20% end date each Fund was in operation. Total of Top 25 Holdings 100.00% (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations * The Fund had less than 25 holdings as at December 31, 2020. section of this report.

5 HSBC World Selection Diversified Growth Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC World Selection® Diversified Aggressive Growth Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

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

To achieve its objectives, the Fund invests in other mutual Although the Fund generated a positive return in a volatile year, funds and uses strategic asset allocation as the principal it underperformed its benchmark. Security selection within the investment strategy. The Fund has an established policy asset fixed income portion of the Fund added value, but this was mix, based on its stated objectives. In addition to adjusting the more than offset by the negative impacts of security selection Fund’s asset mix depending on economic conditions and the in the Fund’s equity segments. relative value of securities in the Fund, the Fund may also use tactical asset allocation to take advantage of current and Recent Developments expected future market conditions. Because of the unprecedented speed of the rally in most asset Risk classes after March 2020, expected returns for 2021 are still The risks of investing in the Fund remain as discussed in the positive, but somewhat less attractive than they were in early Simplified Prospectus. During the year, there were no material 2020. Many economies will recover to pre-COVID-19 levels of changes to the Fund that affected the overall risk level of activity in 2021, although we don’t expect to reach this the Fund. milestone in Canada until early 2022. We maintain our view that the economic fallout from the pandemic is likely to This Fund is suitable for investors who want to maximize the dissipate as aggressive policy moves continue to support long-term potential growth of their capital and earn low to liquidity and economic momentum. The key risk to our central moderate interest income. Investors in this Fund should have a scenario remains the virus and its variants or a stall in the long-term investment time horizon and a medium tolerance for rollout of vaccines. Changes in fiscal or monetary policy investment risk. direction and the relationship between China and the US are Results of Operations risks to monitor as well. As of December 31, 2020, the Fund's net assets decreased by Robust markets and record-low interest rates have moderated 1.8% to $105.9 million from $107.8 million at the end of 2019. expected returns for various asset classes. However, greater Net withdrawals, partially offset by positive investment confidence in the pace of the economic recovery – combined performance, resulted in an overall decrease in net asset value. with still attractive relative returns for equities, corporate bonds

1 HSBC World Selection Diversified Aggressive Growth Fund and mortgages relative to cash and government bonds – leads Financial Highlights us to favour these asset classes in the Fund. The portfolio The following tables show selected key financial information remains well diversified across asset classes and geographies. about the Fund and are intended to help you understand the During the period there has been a change in composition to Fund’s financial performance for the past five years. This the Independent Review Committee (the “IRC”). Effective information is derived from the Fund’s audited annual financial March 25, 2020, Ms. Louise Tymocko was appointed to the IRC statements. The information in the following tables is based on as a member, replacing Mr. William (Bill) Bakk who left as his prescribed regulations, and, as a result, is not expected to add term of office expired. Ms. Lisa Pankratz also took over as Chair down due to the increase/decrease in net assets from of the IRC effective March 25, 2020. In addition, effective operations being based on average units outstanding during the February 18, 2021, Ms. Sharon Morrisroe was also appointed to year and all other numbers being based on actual units the IRC as a member, replacing Mr. Neil de Gelder who left outstanding at the relevant point in time. following the expiry of his term in March of 2021. Related Party Transactions HSBC World Selection Diversified Aggressive We, on behalf of the Fund, or the Fund Manager, may, from Growth Fund – Investor Series – Net Assets per (1) time to time, enter into transactions or arrangements with or Unit involving other members of the HSBC Group or other people or Year(s) ended December 31 companies related or connected to us or the Fund. To proceed 2020 2019 2018 2017 2016 with the transactions, the Fund relies on the positive Net assets per unit, beginning of recommendation of the Fund’s Independent Review Committee. A year (2) $17.87 $15.67 $17.42 $15.72 $15.30 condition of this positive recommendation is that the transactions Increase (decrease) from are performed in accordance with our policy on Related Party operations: Transactions. For more general information on persons related Total revenue 0.41 0.63 0.87 0.54 0.46 to the Fund and the types of potential transactions, see the Total expenses (0.34) (0.35) (0.35) (0.35) (0.34) Fund’s Simplified Prospectus. Realized gains (losses) 0.19 0.25 0.27 0.32 0.88 Unrealized gains (losses) 0.03 1.82 (2.04) 1.25 0.16 The following is a summary of current transactions and Total increase (decrease) from arrangements with entities that are related to us or the Fund. operations (2) $0.29 $2.35 $(1.25) $1.76 $1.16 Distributions to unitholders: Manager, Trustee and Investment Advisor From net investment income We are the manager, trustee and primary investment advisor of (excluding dividends) – (0.01) – – – the Fund. As manager, we manage the overall business and From dividends (0.04) (0.14) (0.09) (0.07) (0.06) From capital gains – – (0.42) – (0.63) operations of the Fund. As trustee, we hold legal title to the Return of capital – – – – – property of the Fund on your behalf. As primary investment Total annual distributions (2,3) $(0.04) $(0.15) $(0.51) $(0.07) $(0.69) advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Net assets per unit at December 31 of year shown (2) $18.18 $17.87 $15.67 $17.42 $15.72 Fund for these services based on assets under management, calculated daily and paid monthly. Ratios and Supplemental Data Distribution Services 2020 2019 2018 2017 2016 The Fund is distributed through us, HSBC Investment Funds (Canada) Inc. (our wholly owned subsidiary and affiliate) and Total net asset value (in HSBC Securities (Canada) Inc. (an affiliate) directly or through 000s) (4) $105,924 $107,735 $96,034 $95,121 $84,052 Number of units its division, HSBC InvestDirect. We pay distribution and outstanding (in 000s) (4) 5,826 6,027 6,130 5,460 5,348 servicing fees to them based on the amount of assets held in Management expense the investor’s account, and additionally, in some cases, on the ratio ("MER") (5) 2.18% 2.15% 2.10% 2.22% 2.34% amount of the initial purchase. If you hold units of this Fund MER before waivers or absorptions (5) 2.18% 2.15% 2.10% 2.22% 2.34% and/or other HSBC Mutual Funds in a registered plan with Trading expense ratio (6) 0.08% 0.05% 0.04% 0.04% 0.08% HSBC Investment Funds (Canada) Inc., they may charge you an Portfolio turnover rate (7) 12.97% 15.35% 10.05% 12.45% 47.53% annual fee to cover the annual administration costs of the plan. Net asset value per unit (4) $18.18 $17.87 $15.67 $17.42 $15.72 We permit HSBC Investment Funds (Canada) Inc. to collect these fees by redeeming sufficient units of the Fund with the highest market value in your registered plan.

Fund on Fund Investing During the year, the Fund invested in units of other HSBC Mutual Funds, which are also managed by us.

2 HSBC World Selection Diversified Aggressive Growth Fund

HSBC World Selection Diversified Aggressive HSBC World Selection Diversified Aggressive Growth Fund – Manager Series – Net Assets per Growth Fund – Institutional Series – Net Assets Unit(1) per Unit(1) Year(s) ended December 31 Year(s) ended December 31 2020 2019 2018 2017 2016 2020* 2019* 2018 2017* 2016* Net assets per unit, beginning of Net assets per unit, beginning of year (2) $10.32 $10.00 $– $– $– year (2) $– $8.79 $10.00 $– $9.57 Increase (decrease) from operations: Increase (decrease) from operations: Total revenue 0.05 0.32 – – – Total revenue 0.03 0.03 0.50 0.01 0.01 Total expenses (0.07) (0.03) – – – Total expenses – (0.01) (0.01) – (0.11) Realized gains (losses) 0.02 0.05 – – – Realized gains (losses) 0.05 0.02 0.10 0.06 0.01 Unrealized gains (losses) (1.07) 0.15 – – – Unrealized gains (losses) 0.88 0.10 (1.36) 0.15 (0.50) Total increase (decrease) from Total increase (decrease) from operations (2) $(1.07) $0.49 $– $– $– operations (2) $0.96 $0.14 $(0.77) $0.22 $(0.59) Distributions to unitholders: Distributions to unitholders: From net investment income From net investment income (excluding dividends) – (0.01) – – – (excluding dividends) – – – – – From dividends – (0.17) – – – From dividends – – (0.07) – – From capital gains – – – – – From capital gains – – (0.34) – – Return of capital – – – – – Return of capital – – – – – Total annual distributions (2,3) $– $(0.18) $– $– $– Total annual distributions (2,3) $– $– $(0.41) $– $– Net assets per unit at December 31 of Net assets per unit at December 31 year shown (2) $– $10.32 $– $– $– of year shown (2) $– $– $8.79 $– $–

Ratios and Supplemental Data Ratios and Supplemental Data 2020 2019 2018 2017 2016 2020* 2019* 2018 2017* 2016* Total net asset value (in 000s) (4) $– $91 $– $– $– Total net asset value (in Number of units outstanding (in 000s) (4) $– $– $515 $– $– 000s) (4) – 9 – – – Number of units outstanding Management expense ratio (in 000s) (4) – – 59 – – ("MER") (5) 1.61% 1.31% – – – Management expense ratio MER before waivers or ("MER") (5) 0.25% 0.53% 0.22% 0.32% 7.75% absorptions (5) 1.89% 1.31% – – – MER before waivers or Trading expense ratio (6) 0.08% 0.05% – – – absorptions (5) 0.25% 0.83% 0.22% 0.32% 7.76% Portfolio turnover rate (7) 12.97% 15.35% – – – Trading expense ratio (6) 0.08% 0.05% 0.04% 0.04% 0.08% Net asset value per unit (4) $– $10.32 $– $– $– Portfolio turnover rate (7) 12.97% 15.35% 10.05% 12.45% 47.53%

Net asset value per unit (4) $– $– $8.79 $– $– * The Institutional Series was fully redeemed during 2016, 2017, 2019 and 2020; however, it remains in offer as at period-end. (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial Reporting Standards (“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 time. The increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. (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 December 31 of the year shown. (5) MER is based on total expenses (including a portion of the operating expenses of the underlying funds in proportion to the Fund’s holdings in the other funds and excluding distributions, commissions and other portfolio transaction costs) for the stated year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one mutual fund to another and from one series of units to another. We

3 HSBC World Selection Diversified Aggressive Growth Fund

may have waived or absorbed certain fees and expenses otherwise of different fund series may vary for a number of reasons, payable by the Fund. The amount of expenses absorbed or waived including differences in management fees and expenses. The is at the discretion of and can be terminated at any time by us. Fund’s past performance does not necessarily indicate how it Please see the prospectus, Fund Facts and other disclosure documents for further details. will perform in the future. (6) The trading expense ratio represents total commissions and other Year-by-Year Returns portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the year. Years ended December 31 The following bar charts show the Fund’s performance for each (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s of the years shown, and illustrate how the Fund’s performance portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling changed from year to year. In percentage terms, the bar charts all of the securities in its portfolio once in the course of the year. show how much an investment made on the first day of each The higher the Fund’s portfolio turnover rate in a year, the greater financial year would have grown or decreased by the last day of the trading costs payable by the Fund in the year, and the greater each financial year. the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate Annual Returns – Investor Series 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 short- 20% term securities. 15.1% 10.1% 9.7% 11.3% Management Fees 10% 6.8% 7.2% 1.9% For the year ended December 31, 2020, the Fund paid us 0% management fees of $1,731,334. 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 which the Fund invests for the same service. 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

The Fund’s management fees were used by us to pay costs for Annual Returns – Institutional Series managing the investment portfolio, providing investment 30% analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of 20% the investment portfolio and providing other services. The 12.5% management fees also funded commission payments and other 10% compensation (collectively “distribution costs”) to sales 0% representatives and registered dealers and brokers, including HSBC Investment Funds (Canada) Inc., for units of the Fund -10% bought and held by unitholders. Finally, we used management -20% fees to pay for additional marketing and distribution services to Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 the Fund. 2012 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020*

For the year ended December 31, 2020, approximately 46% of * The Institutional Series was fully redeemed during 2013. In the sub sequent years, there were no unitholders for the full calendar year; the total management fees collected from all HSBC Mutual however, it remains in offer as at period-end. Funds were used to fund distribution costs. In comparison, for the Fund, such distribution costs represented 46% of the Annual Compound Returns management fees collected. This may vary by series depending Year ended December 31, 2020 on the assets invested in each of the series. The following table shows the Fund’s historical annual compound total returns for the years indicated, compared with Past Performance the benchmark index over the same period. The benchmark of The performance information shown assumes that all this Fund is a weighted composite consisting of the MSCI distributions made by the Fund in the years shown were World Net Index (in Canadian dollars) (64%), S&P/TSX Capped reinvested in additional securities of the Fund. The performance Composite Index (31%) and FTSE Canada Universe Bond Index information does not take into account sales, redemption, (5%). distribution, optional charges or expenses you may be charged The MSCI World Net Index is an international index that outside of the Fund or the effect of any income tax you may measures the performance of stocks traded in Europe, have to pay as a result of your investment in the Fund that Australia, the Far East, the US, Canada and South Africa. This would have reduced returns or performance. The performance index is tracked in US dollars and was converted to Canadian

4 HSBC World Selection Diversified Aggressive Growth Fund dollars. The S&P/TSX Capped Composite Index tracks changes Top 25 Holdings* in the share prices of the largest companies listed on the Percentage Toronto Stock Exchange, representing a broad range of of NAV industries. The FTSE Canada Universe Bond Index is a broad HSBC Global Equity Fund - Institutional Series 55.84% measure of the total return for the Canadian bond market, HSBC Equity Fund - Institutional Series 29.07% covering marketable Canadian bonds with a term to maturity of HSBC Emerging Markets Fund - Institutional Series 7.58% more than one year. HSBC Small Cap Growth Fund - Institutional Series 2.88% HSBC Emerging Markets Debt Fund - Institutional Series 1.83% Investor Series HSBC Mortgage Fund - Institutional Series 1.52% HSBC Canadian Bond Fund - Institutional Series 1.50% 1 Year 3 Year 5 Year 10 Year Other net assets (liabilities) -0.22% HSBC World Selection Diversified Total of Top 25 Holdings 100.00% Aggressive Growth Fund 1.95% 2.92% 5.39% 6.67% * The Fund had less than 25 holdings as at December 31, 2020. 64% MSCI World Net Index (C$), 31% S&P/TSX Capped Composite Index, 5% FTSE Canada Universe Bond Index 11.21% 9.30% 9.78% 10.16% (1) Due to the fact that several benchmark indices are only available on a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- end date each Fund was in operation. (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations section of this report. Summary of Investment Portfolio As at December 31, 2020

Asset Mix Percentage of NAV

International Equities 63.42% Canadian Equities 31.95% Bonds 4.85% Cash & Equivalents -0.22% Total 100.00%

5 HSBC World Selection Diversified Aggressive Growth Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC Wealth CompassTM Conservative Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

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 Results of Operations Fund; we, us and our refer to HSBC Global Asset Management As of December 31, 2020, the Fund's net assets increased by (Canada) Limited; and the Fund refers to the HSBC Wealth 340.7% to $11.9 million from $2.7 million at the end of 2019. Compass Conservative Fund. Net contributions and positive investment performance resulted We are the manager, trustee and primary investment advisor of in an overall increase in net asset value. the Fund. Investment Performance Introduction The HSBC Wealth Compass Conservative Fund (Investor Series) rose 8.48% for the 12 months ending December 31, This Annual Management Report of Fund Performance contains 2020, while the benchmark rose 8.75% over the same period. financial highlights but does not contain the complete annual The Fund’s benchmark is a weighted composite consisting of financial statements of the Fund. You may obtain a copy of the the FTSE Canada Universe Bond Total Return Index (65%), S&P/ annual financial statements at your request, at no cost, by TSX Composite Total Return Index (10% capped) (16%), MSCI calling us toll-free at 1-888-390-3333, by visiting our website at ACWI ex Canada Index (net) (C$) (12%) and FTSE Canada 91 www.assetmanagement.hsbc.ca, by visiting the SEDAR Day T-Bill Index (7%). The Fund’s returns are after the website at www.sedar.com or by writing to us at: deduction of fees and expenses, while the benchmark’s returns HSBC Global Asset Management (Canada) Limited do not include any costs of investing. See the Past Performance 3rd Floor, 885 West Georgia Street section for the returns of other series of the Fund, which may Vancouver, BC V6C 3E8 vary due to differences in management fees and expenses. Over the year, in Canadian-dollar terms, US and emerging You may also contact us using one of these methods to request a market equities returned more than 16%, while Canadian and copy of the Fund’s interim financial report, proxy voting policies international equities rose by 5.6% and 6.6%, respectively. and procedures, proxy voting disclosure record or quarterly Elsewhere, helped by lingering investor worries and easy portfolio disclosure. monetary policy, the Canadian bond market gained 8.7%. Investment Objective and Strategies Within the commodities market, oil dropped more than 20% and gold finished the year up 23.1%. The fundamental investment objective of this Fund is to provide investors with primarily capital preservation and interest income Although 2020 may have been one of the most challenging with some potential for low to moderate long-term capital years for many of us as investors and human beings, it was growth through a diversified portfolio of investments across encouraging to end the year with a ray of hope. COVID-19 several asset classes. vaccination programs have begun, which may restore normal life gradually throughout 2021 and allow for further widespread To achieve its objectives, the Fund invests in a diversified economic reopening. From a capital market performance portfolio of other mutual funds and/or exchange-traded funds, perspective, 2020 also stands out for its incredible comeback and uses strategic asset allocation as the principal investment from March’s pandemic-fuelled crash, helped by strategy. The Fund has an established policy asset mix, based unprecedented policy support and investors’ hope for a on its stated objectives. In addition to adjusting the Fund’s continuing recovery to pre-virus levels in the coming years. asset mix depending on economic conditions and the relative The Fund aims to approximate the return of its benchmark. value of securities in the Fund, the Fund may also use tactical Gross of fees, the Fund broadly achieved this objective in 2020, asset allocation to take advantage of current and expected with differences primarily due to ETF fulfilment returns, a small future market conditions. cash allocation and the timing of cash flows and Risk portfolio rebalancing. The risks of investing in the Fund remain as discussed in the Recent Developments Simplified Prospectus. During the year, there were no material The global recovery has entered a phase we are calling the changes to the Fund that affected the overall risk level of “restoration economy” and it dominates our investment outlook the Fund. as we move into 2021. The scenario is one where economic This Fund is suitable for investors who want to earn interest growth moderates after the extraordinary rebound experienced income with potential for moderate long-term growth of their over the past nine months. It also refers to our market return capital. Investors in this Fund should have a medium-term expectations, which are still positive but somewhat moderated investment time horizon and a low to medium tolerance for because of the intensity of the rally observed in 2020. Additionally, we believe that the overall economic fallout from investment risk. the pandemic is likely to dissipate as aggressive policy moves continue to support economic momentum.

1 HSBC Wealth Compass Conservative Fund

The key risk that we are monitoring is an unexpected We permit HSBC Investment Funds (Canada) Inc. to collect deterioration in pandemic developments (such as vaccination these fees by redeeming sufficient units of the Fund with the delays or viral variants). Changes in fiscal or monetary policy highest market value in your registered plan. direction and the relationship between China and the US are other risks that remain on our radar. Fund on Fund Investing During the year, the Fund invested in units of the HSBC We have not made any changes to the strategic positioning and Canadian Money Market Fund, which is also managed by us. management of the Fund.

During the period there has been a change in composition to Financial Highlights the Independent Review Committee (the “IRC”). Effective The following tables show selected key financial information March 25, 2020, Ms. Louise Tymocko was appointed to the IRC about the Fund and are intended to help you understand the as a member, replacing Mr. William (Bill) Bakk who left as his Fund’s financial performance for the years shown. This term of office expired. Ms. Lisa Pankratz also took over as Chair information is derived from the Fund’s audited annual financial of the IRC effective March 25, 2020. In addition, effective statements. The information in the following tables is based on February 18, 2021, Ms. Sharon Morrisroe was also appointed to prescribed regulations, and, as a result, is not expected to add the IRC as a member, replacing Mr. Neil de Gelder who left down due to the increase/decrease in net assets from following the expiry of his term in March of 2021. operations being based on average units outstanding during the year and all other numbers being based on actual units outstanding at the relevant point in time. Related Party Transactions We, on behalf of the Fund, or the Fund Manager, may, from time to time, enter into transactions or arrangements with or HSBC Wealth Compass Conservative Fund – involving other members of the HSBC Group or other people or Investor Series – Net Assets per Unit(1) companies related or connected to us or the Fund. To proceed Year(s) ended December 31 with the transactions, the Fund relies on the positive 2020 2019 2018 recommendation of the Fund’s Independent Review Committee. A condition of this positive recommendation is that the transactions Net assets per unit, beginning of year (2) $10.77 $9.86 $10.00 are performed in accordance with our policy on Related Party Increase (decrease) from operations: Total revenue 0.29 0.33 0.28 Transactions. For more general information on persons related Total expenses (0.06) (0.07) (0.06) to the Fund and the types of potential transactions, see the Realized gains (losses) 0.07 0.02 (0.05) Fund’s Simplified Prospectus. Unrealized gains (losses) 0.67 0.24 (0.40) Total increase (decrease) from operations (2) $0.97 $0.52 $(0.23) The following is a summary of current transactions and arrangements with entities that are related to us or the Fund. Distributions to unitholders: From net investment income (excluding dividends) (0.09) (0.26) – From dividends (0.02) (0.06) – Manager, Trustee and Investment Advisor From capital gains – – – We are the manager, trustee and primary investment advisor of Return of capital – – – the Fund. As manager, we manage the overall business and Total annual distributions (2,3) $(0.11) $(0.32) $– operations of the Fund. As trustee, we hold legal title to the Net assets per unit at December 31 of year property of the Fund on your behalf. As primary investment shown (2) $11.57 $10.77 $9.86 advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Fund for these services based on assets under management, Ratios and Supplemental Data calculated daily and paid monthly. 2020 2019 2018 Total net asset value (in 000s) (4) $11,929 $2,581 $82 Distribution Services Number of units outstanding (in 000s) (4) 1,031 240 8 The Fund is distributed through us, HSBC Investment Funds Management expense ratio ("MER") (5) 0.63% 0.73% 0.90% MER before waivers or absorptions (5) 1.92% 7.43% 26.11% (Canada) Inc. (our wholly owned subsidiary and affiliate) and Trading expense ratio (6) 0.07% 0.10% 0.08% HSBC Securities (Canada) Inc. (an affiliate) directly or through Portfolio turnover rate (7) 27.56% 8.14% 14.76% Net asset value per unit (4) $11.57 $10.77 $9.86 its division, HSBC InvestDirect. We pay distribution and servicing 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 and/or other HSBC Mutual Funds in a registered plan with HSBC Investment Funds (Canada) Inc., they may charge you an annual fee to cover the annual administration costs of the plan.

2 HSBC Wealth Compass Conservative Fund

HSBC Wealth Compass Conservative Fund – The amount of expenses absorbed or waived is at the discretion of Institutional Series – Net Assets per Unit(1) and can be terminated at any time by us. Please see the Year(s) ended December 31 prospectus, Fund Facts and other disclosure documents for further details. 2020* 2019 2018 (6) The trading expense ratio represents total commissions and other Net assets per unit, beginning of year (2) $10.93 $9.99 $10.00 portfolio transaction costs expressed as an annualized percentage Increase (decrease) from operations: of daily average net asset value during the year. Total revenue 0.02 0.29 0.22 (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Total expenses – (0.01) 0.01 portfolio advisor manages its portfolio investments. A portfolio Realized gains (losses) 0.03 0.01 (0.04) turnover rate of 100% is equivalent to the Fund buying and selling Unrealized gains (losses) 0.31 0.78 (0.20) all of the securities in its portfolio once in the course of the year. Total increase (decrease) from operations (2) $0.36 $1.07 $(0.01) The higher the Fund’s portfolio turnover rate in a year, the greater Distributions to unitholders: the trading costs payable by the Fund in the year, and the greater From net investment income (excluding dividends) – (0.38) – the chance of an investor receiving taxable capital gains in the year. From dividends – (0.08) – There is not necessarily a relationship between a high turnover rate From capital gains – – – and the performance of the Fund. The rate is calculated based on Return of capital – – – the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding short- Total annual distributions (2,3) $– $(0.46) $– term securities. Net assets per unit at December 31 of year shown (2) $– $10.93 $9.99 Management Fees For the year ended December 31, 2020, the Fund paid us Ratios and Supplemental Data management fees of $32,462. The management fee for each series is calculated as a percentage of the daily net asset value * 2020 2019 2018 for that series. The fees are reduced, where required, so that Total net asset value (in 000s) (4) $– $166 $150 these fees do not duplicate fees payable by mutual funds in Number of units outstanding (in 000s) (4) – 15 15 which the Fund invests for the same service. Management expense ratio ("MER") (5) 0.14% 0.15% 0.15% MER before waivers or absorptions (5) 3.06% 11.91% 44.90% The Fund’s management fees were used by us to pay costs for Trading expense ratio (6) 0.07% 0.10% 0.08% managing the investment portfolio, providing investment Portfolio turnover rate (7) 27.56% 8.14% 14.76% analysis and recommendations, making investment decisions, Net asset value per unit (4) $– $10.93 $9.99 making brokerage arrangements for the purchase and sale of * The Institutional Series was fully redeemed during 2020; however, it the investment portfolio and providing other services. The remains in offer as at period-end. management fees also funded commission payments and other (1) This information is derived from the Fund’s audited annual financial compensation (collectively “distribution costs”) to sales statements. All balances are stated in International Financial representatives and registered dealers and brokers, including Reporting Standards (“IFRS”). Under IFRS, the net assets per unit HSBC Investment Funds (Canada) Inc., for units of the Fund presented in the financial statements is the same as the net asset bought and held by unitholders. Finally, we used management value calculated for fund pricing purposes. fees to pay for additional marketing and distribution services to (2) Net assets per unit and distributions per unit are based on the the Fund. actual number of units outstanding for the relevant series at the relevant time. The increase/decrease in net assets from operations For the year ended December 31, 2020, approximately 46% of per unit is based on the weighted average number of units the total management fees collected from all HSBC Mutual outstanding for the relevant series over the fiscal year. Funds were used to fund distribution costs. In comparison, for (3) Distributions are automatically reinvested in additional units of the the Fund, such distribution costs represented 70% of the Fund, unless the unitholder withdraws from the automatic management fees collected. This may vary by series depending reinvestment plan by providing written notice to us. on the assets invested in each of the series. (4) This information is provided as at December 31 of the year shown. (5) MER is based on total expenses (including a portion of the Past Performance operating expenses of the underlying funds in proportion to the The performance information shown assumes that all Fund’s holdings in the other funds and excluding distributions, distributions made by the Fund in the years shown were commissions and other portfolio transaction costs) for the stated reinvested in additional securities of the Fund. The performance year and is expressed as an annualized percentage of daily average information does not take into account sales, redemption, net asset value during the year. In the year a series is established, distribution, optional charges or expenses you may be charged the MER is annualized from the date of inception to the end of the outside of the Fund or the effect of any income tax you may period. The MER may vary from one mutual fund to another and have to pay as a result of your investment in the Fund that from one series of units to another. We may have waived or would have reduced returns or performance. The performance absorbed certain fees and expenses otherwise payable by the Fund. of different fund series may vary for a number of reasons, including differences in management fees and expenses. The Fund’s past performance does not necessarily indicate how it will perform in the future.

3 HSBC Wealth Compass Conservative Fund

Year-by-Year Returns more than one year. The S&P/TSX Composite Total Return Years ended December 31 Index (10% capped) tracks the changes in the share prices of The following bar charts show the Fund’s performance for each the largest companies listed on the Toronto Stock Exchange, of the years shown, and illustrate how the Fund’s performance representing a broad range of industries. The MSCI ACWI ex changed from year to year. In percentage terms, the bar charts Canada Index captures large-cap and mid-cap representation show how much an investment made on the first day of each across most developed market countries (excluding financial year would have grown or decreased by the last day of Canada) and a number of emerging market countries, and each financial year. covers approximately 85% of the global equity opportunity outside Canada. The FTSE Canada 91 Day T-Bill Index is a Annual Returns – Investor Series measure of the total return of Canadian treasury bills with a

15% term to maturity of three months.

Investor Series 10.0% 10% 8.5% Since 1 Year Inception HSBC Wealth Compass Conservative Fund 8.48% 6.12% 5% 65% FTSE Canada Universe Bond Total Return Index, 16% S&P/TSX Composite Total Return Index (10% capped), 12% MSCI ACWI ex Canada Index (net) (C$), 7% 0% FTSE Canada 91 Day T-Bill Index 8.75% 7.19% Dec. 31 Dec. 31 2019 2020 (1) Due to the fact that several benchmark indices are only available on a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- Annual Returns – Institutional Series end date each Fund was in operation.

15% (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations section of this report. 10.8% 10% Summary of Investment Portfolio As at December 31, 2020 5% Asset Mix Percentage 0% of NAV Dec. 31 Dec. 31 2019 2020* Bonds 63.94% Canadian Equities 16.61% * The Institutional Series was fully redeemed during 2020; however, it International Equities 12.48% remains in offer as at period-end. Cash & Equivalents 6.97% Total 100.00% Annual Compound Returns Year ended December 31, 2020 The following table shows the Fund’s historical annual Top 25 Holdings* compound total returns for the years indicated, compared with Percentage the benchmark index over the same period. The benchmark of of NAV this Fund is a weighted composite consisting of the FTSE iShares Core Canadian Universe Bond Index ETF 63.94% Canada Universe Bond Total Return Index (65%), S&P/TSX iShares Core S&P/TSX Capped Composite Index ETF 16.61% Composite Total Return Index (10% capped) (16%), MSCI ACWI iShares Core S&P Total US Stock Market ETF 7.40% ex Canada Index (net) (C$) (12%) and FTSE Canada 91 Day T- HSBC Canadian Money Market Fund - Institutional Series 6.88% Bill Index (7%). iShares Core MSCI Total International Stock ETF 5.08% The FTSE Canada Universe Bond Total Return Index is a broad Other net assets (liabilities) 0.09% measure of the total return for the Canadian bond market, Total of Top 25 Holdings 100.00% covering marketable Canadian bonds with a term to maturity of * The Fund had less than 25 holdings as at December 31, 2020.

4 HSBC Wealth Compass Conservative Fund

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

HSBC Wealth CompassTM Moderate Conservative Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

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

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Results of Operations Fund; we, us and our refer to HSBC Global Asset Management As of December 31, 2020, the Fund's net assets increased by (Canada) Limited; and the Fund refers to the HSBC Wealth 297.6% to $16.7 million from $4.2 million at the end of 2019. Compass Moderate Conservative Fund. Net contributions and positive investment performance resulted We are the manager, trustee and primary investment advisor of in an overall increase in net asset value. the Fund. Investment Performance Introduction The HSBC Wealth Compass Moderate Conservative Fund This Annual Management Report of Fund Performance contains (Investor Series) rose 9.10% for the 12 months ending financial highlights but does not contain the complete annual December 31, 2020, while the benchmark rose 9.29% over the financial statements of the Fund. You may obtain a copy of the same period. The Fund’s benchmark is a composite consisting annual financial statements at your request, at no cost, by of the FTSE Canada Universe Bond Total Return Index (52%), calling us toll-free at 1-888-390-3333, by visiting our website at S&P/TSX Composite Total Return Index (10% capped) (22.5%), www.assetmanagement.hsbc.ca, by visiting the SEDAR MSCI ACWI ex Canada Index (net) (C$) (20.5%) and FTSE website at www.sedar.com or by writing to us at: Canada 91 Day T-Bill Index (5%). The Fund’s returns are after the deduction of fees and expenses, while the benchmark’s HSBC Global Asset Management (Canada) Limited returns do not include any costs of investing. See the Past rd 3 Floor, 885 West Georgia Street Performance section for the returns of other series of the Fund, Vancouver, BC V6C 3E8 which may vary due to differences in management fees You may also contact us using one of these methods to request a and expenses. copy of the Fund’s interim financial report, proxy voting policies Over the year, in Canadian-dollar terms, US and emerging and procedures, proxy voting disclosure record or quarterly market equities returned more than 16%, while Canadian and portfolio disclosure. international equities rose by 5.6% and 6.6%, respectively. Elsewhere, helped by lingering investor worries and easy Investment Objective and Strategies monetary policy, the Canadian bond market gained 8.7%. The fundamental investment objective of this Fund is to provide Within the commodities market, oil dropped more than 20% investors with moderate capital preservation and interest and gold finished the year up 23.1%. income with potential moderate long-term capital growth through a diversified portfolio of investments across several Although 2020 may have been one of the most challenging asset classes. years for many of us as investors and human beings, it was encouraging to end the year with a ray of hope. COVID-19 To achieve its objectives, the Fund invests in a diversified vaccination programs have begun, which may restore normal portfolio of other mutual funds and/or exchange-traded funds life gradually throughout 2021 and allow for further widespread and uses strategic asset allocation as the principal investment economic reopening. From a capital market performance strategy. The Fund has an established policy asset mix, based perspective, 2020 also stands out for its incredible comeback on its stated objectives. In addition to adjusting the Fund’s from March’s pandemic-fuelled crash, helped by asset mix depending on economic conditions and the relative unprecedented policy support and investors’ hope for a value of securities in the Fund, the Fund may also use tactical continuing recovery to pre-virus levels in the coming years. asset allocation to take advantage of current and expected future market conditions. The Fund aims to approximate the return of its benchmark. Gross of fees, the Fund broadly achieved this objective in 2020, Risk with differences primarily due to ETF fulfilment returns, a small The risks of investing in the Fund remain as discussed in the cash allocation and the timing of cash flows and Simplified Prospectus. During the year, there were no material portfolio rebalancing. changes to the Fund that affected the overall risk level of the Fund. Recent Developments The global recovery has entered a phase we are calling the This Fund is suitable for investors who want to earn interest “restoration economy” and it dominates our investment outlook income with potential for moderate long-term growth of their as we move into 2021. The scenario is one where economic capital. Investors in this Fund should have a medium-term growth moderates after the extraordinary rebound experienced investment time horizon and a low to medium tolerance for over the past nine months. It also refers to our market return investment risk. expectations, which are still positive but somewhat moderated because of the intensity of the rally observed in 2020.

1 HSBC Wealth Compass Moderate Conservative Fund

Additionally, we believe that the overall economic fallout from HSBC Investment Funds (Canada) Inc., they may charge you an the pandemic is likely to dissipate as aggressive policy moves annual fee to cover the annual administration costs of the plan. continue to support economic momentum. We permit HSBC Investment Funds (Canada) Inc. to collect these fees by redeeming sufficient units of the Fund with the The key risk that we are monitoring is an unexpected highest market value in your registered plan. deterioration in pandemic developments (such as vaccination delays or viral variants). Changes in fiscal or monetary policy Fund on Fund Investing direction and the relationship between China and the US are During the year, the Fund invested in units of the HSBC other risks that remain on our radar. Canadian Money Market Fund, which is also managed by us. We have not made any changes to the strategic positioning and management of the Fund. Financial Highlights The following tables show selected key financial information During the period there has been a change in composition to about the Fund and are intended to help you understand the the Independent Review Committee (the “IRC”). Effective Fund’s financial performance for the years shown. This March 25, 2020, Ms. Louise Tymocko was appointed to the IRC information is derived from the Fund’s audited annual financial as a member, replacing Mr. William (Bill) Bakk who left as his statements. The information in the following tables is based on term of office expired. Ms. Lisa Pankratz also took over as Chair prescribed regulations, and, as a result, is not expected to add of the IRC effective March 25, 2020. In addition, effective down due to the increase/decrease in net assets from February 18, 2021, Ms. Sharon Morrisroe was also appointed to operations being based on average units outstanding during the the IRC as a member, replacing Mr. Neil de Gelder who left year and all other numbers being based on actual units following the expiry of his term in March of 2021. outstanding at the relevant point in time.

Related Party Transactions We, on behalf of the Fund, or the Fund Manager, may, from HSBC Wealth Compass Moderate Conservative (1) time to time, enter into transactions or arrangements with or Fund – Investor Series – Net Assets per Unit involving other members of the HSBC Group or other people or Year(s) ended December 31 companies related or connected to us or the Fund. To proceed 2020 2019 2018 with the transactions, the Fund relies on the positive Net assets per unit, beginning of year (2) $11.21 $10.10 $10.00 recommendation of the Fund’s Independent Review Committee. A Increase (decrease) from operations: condition of this positive recommendation is that the transactions Total revenue 0.29 0.35 0.26 are performed in accordance with our policy on Related Party Total expenses (0.06) (0.07) (0.10) Transactions. For more general information on persons related Realized gains (losses) 0.03 0.04 (0.06) to the Fund and the types of potential transactions, see the Unrealized gains (losses) 0.95 0.48 (0.30) Fund’s Simplified Prospectus. Total increase (decrease) from operations (2) $1.21 $0.80 $(0.20) The following is a summary of current transactions and Distributions to unitholders: From net investment income (excluding dividends) (0.08) (0.05) – arrangements with entities that are related to us or the Fund. From dividends (0.04) (0.03) – From capital gains – (0.02) – Manager, Trustee and Investment Advisor Return of capital – – – We are the manager, trustee and primary investment advisor of Total annual distributions (2,3) $(0.12) $(0.10) $– the Fund. As manager, we manage the overall business and Net assets per unit at December 31 of year operations of the Fund. As trustee, we hold legal title to the shown (2) $12.11 $11.21 $10.10 property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Ratios and Supplemental Data Fund for these services based on assets under management, 2020 2019 2018 calculated daily and paid monthly. Total net asset value (in 000s) (4) $16,660 $4,079 $150 Number of units outstanding (in 000s) (4) 1,375 364 15 Distribution Services Management expense ratio ("MER") (5) 0.64% 0.73% 0.90% The Fund is distributed through us, HSBC Investment Funds MER before waivers or absorptions (5) 1.52% 4.77% 21.70% (Canada) Inc. (our wholly owned subsidiary and affiliate) and Trading expense ratio (6) 0.06% 0.10% 0.09% Portfolio turnover rate (7) 24.14% 19.08% 16.72% HSBC Securities (Canada) Inc. (an affiliate) directly or through Net asset value per unit (4) $12.11 $11.21 $10.10 its division, HSBC InvestDirect. We pay distribution and servicing 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 and/or other HSBC Mutual Funds in a registered plan with

2 HSBC Wealth Compass Moderate Conservative Fund

HSBC Wealth Compass Moderate Conservative The amount of expenses absorbed or waived is at the discretion of Fund – Institutional Series – Net Assets per and can be terminated at any time by us. Please see the (1) prospectus, Fund Facts and other disclosure documents for Unit further details. Year(s) ended December 31 (6) The trading expense ratio represents total commissions and other * 2020 2019 2018 portfolio transaction costs expressed as an annualized percentage Net assets per unit, beginning of year (2) $10.99 $9.89 $10.00 of daily average net asset value during the year. Increase (decrease) from operations: (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Total revenue 0.01 0.29 0.21 portfolio advisor manages its portfolio investments. A portfolio Total expenses – (0.01) 0.01 turnover rate of 100% is equivalent to the Fund buying and selling Realized gains (losses) 0.02 0.05 (0.06) all of the securities in its portfolio once in the course of the year. Unrealized gains (losses) 0.37 0.91 (0.28) The higher the Fund’s portfolio turnover rate in a year, the greater Total increase (decrease) from operations (2) $0.40 $1.24 $(0.12) the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. Distributions to unitholders: There is not necessarily a relationship between a high turnover rate From net investment income (excluding dividends) – (0.09) – From dividends – (0.04) – and the performance of the Fund. The rate is calculated based on From capital gains – (0.03) – the lesser of purchases or sales of securities divided by the average Return of capital – – – weighted market value of the portfolio securities, excluding short- term securities. Total annual distributions (2,3) $– $(0.16) $– Net assets per unit at December 31 of year Management Fees shown (2) $– $10.99 $9.89 For the year ended December 31, 2020, the Fund paid us management fees of $46,557. The management fee for each Ratios and Supplemental Data series is calculated as a percentage of the daily net asset value for that series. The fees are reduced, where required, so that * 2020 2019 2018 these fees do not duplicate fees payable by mutual funds in Total net asset value (in 000s) (4) $– $167 $148 which the Fund invests for the same service. Number of units outstanding (in 000s) (4) – 15 15 Management expense ratio ("MER") (5) 0.15% 0.15% 0.15% The Fund’s management fees were used by us to pay costs for MER before waivers or absorptions (5) 2.07% 7.30% 42.51% managing the investment portfolio, providing investment Trading expense ratio (6) 0.06% 0.10% 0.09% analysis and recommendations, making investment decisions, Portfolio turnover rate (7) 24.14% 19.08% 16.72% making brokerage arrangements for the purchase and sale of Net asset value per unit (4) $– $10.99 $9.89 the investment portfolio and providing other services. The * The Institutional Series was fully redeemed during 2020; however, it management fees also funded commission payments and other remains in offer as at period-end. compensation (collectively “distribution costs”) to sales (1) This information is derived from the Fund’s audited annual financial representatives and registered dealers and brokers, including statements. All balances are stated in International Financial HSBC Investment Funds (Canada) Inc., for units of the Fund Reporting Standards (“IFRS”). Under IFRS, the net assets per unit bought and held by unitholders. Finally, we used management presented in the financial statements is the same as the net asset fees to pay for additional marketing and distribution services to value calculated for fund pricing purposes. the Fund. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the For the year ended December 31, 2020, approximately 46% of relevant time. The increase/decrease in net assets from operations the total management fees collected from all HSBC Mutual per unit is based on the weighted average number of units Funds were used to fund distribution costs. In comparison, for outstanding for the relevant series over the fiscal year. the Fund, such distribution costs represented 70% of the (3) Distributions are automatically reinvested in additional units of the management fees collected. This may vary by series, Fund, unless the unitholder withdraws from the automatic depending on the assets invested in each of the series. reinvestment plan by providing written notice to us. (4) This information is provided as at December 31 of the year shown. Past Performance (5) MER is based on total expenses (including a portion of the The performance information shown assumes that all operating expenses of the underlying funds in proportion to the distributions made by the Fund in the years shown were Fund’s holdings in the other funds and excluding distributions, reinvested in additional securities of the Fund. The performance commissions and other portfolio transaction costs) for the stated information does not take into account sales, redemption, year and is expressed as an annualized percentage of daily average distribution, optional charges or expenses you may be charged net asset value during the year. In the year a series is established, outside of the Fund or the effect of any income tax you may the MER is annualized from the date of inception to the end of the have to pay as a result of your investment in the Fund that period. The MER may vary from one mutual fund to another and would have reduced returns or performance. The performance from one series of units to another. We may have waived or of different fund series may vary for a number of reasons, absorbed certain fees and expenses otherwise payable by the Fund. including differences in management fees and expenses. The Fund’s past performance does not necessarily indicate how it will perform in the future.

3 HSBC Wealth Compass Moderate Conservative Fund

Year-by-Year Returns more than one year. The S&P/TSX Composite Total Return Years ended December 31 Index (10% capped) tracks the changes in the share prices of The following bar charts show the Fund’s performance for each the largest companies listed on the Toronto Stock Exchange, of the years shown, and illustrate how the Fund’s performance representing a broad range of industries. The MSCI ACWI ex changed from year to year. In percentage terms, the bar charts Canada Index (net) captures large-cap and mid-cap show how much an investment made on the first day of each representation across most developed market countries financial year would have grown or decreased by the last day of (excluding Canada) and a number of emerging market each financial year. countries, and covers approximately 85% of the global equity opportunity outside Canada. The FTSE Canada 91 Day T-Bill Annual Returns – Investor Series Index is a measure of the total return of Canadian treasury bills

15% with a term to maturity of three months.

12.0% Investor Series

10% 9.1% Since 1 Year Inception HSBC Wealth Compass Moderate Conservative Fund 9.10% 8.57% 5% 52% FTSE Canada Universe Bond Total Return Index, 22.5% S&P/TSX Composite Total Return Index (10% capped), 20.5% MSCI ACWI ex Canada Index (net) (C$), 0% 5% FTSE Canada 91 Day T-Bill Index 9.29% 7.81% Dec. 31 Dec. 31 2019 2020 (1) Due to the fact that several benchmark indices are only available on a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- Annual Returns – Institutional Series end date each Fund was in operation.

15% (2) For investment commentary and relative performance of the Fund 12.7% compared to its benchmark, please refer to the Results of Operations section of this report. 10% Summary of Investment Portfolio As at December 31, 2020 5% Asset Mix Percentage 0% of NAV Dec. 31 Dec. 31 2019 2020* Bonds 50.31% Canadian Equities 23.00% * The Institutional Series was fully redeemed during 2020; however, it International Equities 21.16% remains in offer as at period-end. Cash & Equivalents 5.53% Total 100.00% Annual Compound Returns Year ended December 31, 2020 The following table shows the Fund’s historical annual Top 25 Holdings* compound total returns for the years indicated, compared with Percentage the benchmark index over the same period. The benchmark of of NAV this Fund is a weighted composite consisting of the FTSE iShares Core Canadian Universe Bond Index ETF 50.31% Canada Universe Bond Total Return Index (52%), S&P/TSX iShares Core S&P/TSX Capped Composite Index ETF 23.00% Composite Total Return Index (10% capped) (22.5%), MSCI iShares Core S&P Total US Stock Market ETF 12.50% ACWI ex Canada Index (net) (C$) (20.5%) and FTSE Canada 91 iShares Core MSCI Total International Stock ETF 8.66% Day T-Bill Index (5%). HSBC Canadian Money Market Fund - Institutional Series 4.83% The FTSE Canada Universe Bond Total Return Index is a broad Other net assets (liabilities) 0.70% measure of the total return for the Canadian bond market, Total of Top 25 Holdings 100.00% covering marketable Canadian bonds with a term to maturity of * The Fund had less than 25 holdings as at December 31, 2020.

4 HSBC Wealth Compass Moderate Conservative Fund

Issued by HSBC Global Asset Management (Canada) Limited

HSBC Wealth CompassTM Balanced Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

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

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Results of Operations Fund; we, us and our refer to HSBC Global Asset Management As of December 31, 2020, the Fund's net assets increased by (Canada) Limited; and the Fund refers to the HSBC Wealth 350.0% to $43.2 million from $9.6 million at the end of 2019. Compass Balanced Fund. Net contributions and positive investment performance resulted We are the manager, trustee and primary investment advisor of in an overall increase in net asset value. the Fund. Investment Performance Introduction The HSBC Wealth Compass Balanced Fund (Investor This Annual Management Report of Fund Performance contains Series) rose 9.49% for the 12 months ending December 31, financial highlights but does not contain the complete annual 2020, while the benchmark rose 9.72% over the same period. financial statements of the Fund. You may obtain a copy of the The Fund’s benchmark is a weighted composite consisting of annual financial statements at your request, at no cost, by the FTSE Canada Universe Bond Total Return Index (33%), calling us toll-free at 1-888-390-3333, by visiting our website at MSCI ACWI ex Canada Index (net) (C$) (32%), S&P/TSX www.assetmanagement.hsbc.ca, by visiting the SEDAR Composite Total Return Index (10% capped) (30%) and FTSE website at www.sedar.com or by writing to us at: Canada 91 Day T-Bill Index (5%). The Fund’s returns are after the deduction of fees and expenses, while the benchmark’s HSBC Global Asset Management (Canada) Limited returns do not include any costs of investing. See the Past rd 3 Floor, 885 West Georgia Street Performance section for the returns of other series of the Fund, Vancouver, BC V6C 3E8 which may vary due to differences in management fees You may also contact us using one of these methods to request a and expenses. copy of the Fund’s interim financial report, proxy voting policies Over the year, in Canadian-dollar terms, US and emerging and procedures, proxy voting disclosure record or quarterly market equities returned more than 16%, while Canadian and portfolio disclosure. international equities rose by 5.6% and 6.6%, respectively. Elsewhere, helped by lingering investor worries and easy Investment Objective and Strategies monetary policy, the Canadian bond market gained 8.7%. The fundamental investment objective of this Fund is to provide Within the commodities market, oil dropped more than 20% investors with a balance of income and potential long-term and gold finished the year up 23.1%. capital growth through a diversified portfolio of investments across several asset classes. Although 2020 may have been one of the most challenging years for many of us as investors and human beings, it was To achieve its objectives, the Fund invests in other mutual encouraging to end the year with a ray of hope. COVID-19 funds and uses strategic asset allocation as the principal vaccination programs have begun, which may restore normal investment strategy. The Fund has an established policy asset life gradually throughout 2021 and allow for further widespread mix, based on its stated objectives. In addition to adjusting the economic reopening. From a capital market performance Fund’s asset mix depending on economic conditions and the perspective, 2020 also stands out for its incredible comeback relative value of securities in the Fund, the Fund may also use from March’s pandemic-fuelled crash, helped by tactical asset allocation to take advantage of current and unprecedented policy support and investors’ hope for a expected future market conditions. continuing recovery to pre-virus levels in the coming years.

Risk The Fund aims to approximate the return of its benchmark. The risks of investing in the Fund remain as discussed in the Gross of fees, the Fund broadly achieved this objective in 2020, Simplified Prospectus. During the year, there were no material with differences primarily due to ETF fulfilment returns, a small changes to the Fund that affected the overall risk level of cash allocation and the timing of cash flows and the Fund. portfolio rebalancing. This Fund is suitable for investors who want to earn a balance Recent Developments of interest income with potential for long-term growth of their The global recovery has entered a phase we are calling the capital. Investors in this Fund should have a medium-term “restoration economy” and it dominates our investment outlook investment time horizon and a low to medium tolerance for as we move into 2021. The scenario is one where economic investment risk. growth moderates after the extraordinary rebound experienced over the past nine months. It also refers to our market return expectations, which are still positive but somewhat moderated because of the intensity of the rally observed in 2020.

1 HSBC Wealth Compass Balanced Fund

Related Party Transactions We, on behalf of the Fund, or the Fund Manager, may, from HSBC Wealth Compass Balanced Fund – (1) time to time, enter into transactions or arrangements with or Investor Series – Net Assets per Unit involving other members of the HSBC Group or other people or Year(s) ended December 31 companies related or connected to us or the Fund. To proceed 2020 2019 2018 with the transactions, the Fund relies on the positive Net assets per unit, beginning of year (2) $10.94 $9.62 $10.00 recommendation of the Fund’s Independent Review Committee. A Increase (decrease) from operations: condition of this positive recommendation is that the transactions Total revenue 0.28 0.33 0.25 are performed in accordance with our policy on Related Party Total expenses (0.07) (0.08) (0.06) Transactions. For more general information on persons related Realized gains (losses) 0.02 0.01 (0.12) to the Fund and the types of potential transactions, see the Unrealized gains (losses) 1.19 0.73 (1.00) Fund’s Simplified Prospectus. Total increase (decrease) from operations (2) $1.42 $0.99 $(0.93) The following is a summary of current transactions and Distributions to unitholders: From net investment income (excluding dividends) (0.06) (0.04) (0.02) arrangements with entities that are related to us or the Fund. From dividends (0.05) (0.04) (0.01) From capital gains – – – Manager, Trustee and Investment Advisor Return of capital – – – We are the manager, trustee and primary investment advisor of Total annual distributions (2,3) $(0.11) $(0.08) $(0.03) the Fund. As manager, we manage the overall business and Net assets per unit at December 31 of year operations of the Fund. As trustee, we hold legal title to the shown (2) $11.86 $10.94 $9.62 property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Ratios and Supplemental Data Fund for these services based on assets under management, 2020 2019 2018 calculated daily and paid monthly. Total net asset value (in 000s) (4) $43,221 $9,626 $552 Number of units outstanding (in 000s) (4) 3,643 880 57 Distribution Services Management expense ratio ("MER") (5) 0.69% 0.78% 0.95% The Fund is distributed through us, HSBC Investment Funds MER before waivers or absorptions (5) 1.05% 2.40% 17.39% (Canada) Inc. (our wholly owned subsidiary and affiliate) and Trading expense ratio (6) 0.05% 0.08% 0.11% Portfolio turnover rate (7) 13.14% 6.07% 28.95% HSBC Securities (Canada) Inc. (an affiliate) directly or through Net asset value per unit (4) $11.86 $10.94 $9.62 its division, HSBC InvestDirect. We pay distribution and servicing 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 and/or other HSBC Mutual Funds in a registered plan with

2 HSBC Wealth Compass Balanced Fund

HSBC Wealth Compass Balanced Fund – The amount of expenses absorbed or waived is at the discretion of Institutional Series – Net Assets per Unit(1) and can be terminated at any time by us. Please see the Year(s) ended December 31 prospectus, Fund Facts and other disclosure documents for further details. 2020* 2019* 2018 (6) The trading expense ratio represents total commissions and other Net assets per unit, beginning of year (2) $– $9.68 $10.00 portfolio transaction costs expressed as an annualized percentage Increase (decrease) from operations: of daily average net asset value during the year. Total revenue – 0.16 0.21 (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Total expenses – – – portfolio advisor manages its portfolio investments. A portfolio Realized gains (losses) – 0.02 (0.09) turnover rate of 100% is equivalent to the Fund buying and selling Unrealized gains (losses) – 0.97 (0.33) all of the securities in its portfolio once in the course of the year. Total increase (decrease) from operations (2) $– $1.15 $(0.21) The higher the Fund’s portfolio turnover rate in a year, the greater Distributions to unitholders: the trading costs payable by the Fund in the year, and the greater From net investment income (excluding dividends) – – (0.07) the chance of an investor receiving taxable capital gains in the year. From dividends – – (0.04) There is not necessarily a relationship between a high turnover rate From capital gains – – – and the performance of the Fund. The rate is calculated based on Return of capital – – – the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding short- Total annual distributions (2,3) $– $– $(0.11) term securities. Net assets per unit at December 31 of year shown (2) $– $– $9.68 Management Fees For the year ended December 31, 2020, the Fund paid us Ratios and Supplemental Data management fees of $130,397. The management fee for each series is calculated as a percentage of the daily net asset value 2020* 2019* 2018 for that series. The fees are reduced, where required, so that Total net asset value (in 000s) (4) $– $– $152 these fees do not duplicate fees payable by mutual funds in Number of units outstanding (in 000s) (4) – – 16 Management expense ratio ("MER") (5) – 0.13% 0.15% which the Fund invests for the same service. MER before waivers or absorptions (5) – 4.55% 28.23% Trading expense ratio (6) – 0.08% 0.11% The Fund’s management fees were used by us to pay costs for Portfolio turnover rate (7) – 6.07% 28.95% managing the investment portfolio, providing investment Net asset value per unit (4) $– $– $9.68 analysis and recommendations, making investment decisions, * The Institutional Series was fully redeemed during 2019 & 2020; making brokerage arrangements for the purchase and sale of however, it remains in offer as at period-end. the investment portfolio and providing other services. The (1) This information is derived from the Fund’s audited annual financial management fees also funded commission payments and other statements. All balances are stated in International Financial compensation (collectively “distribution costs”) to sales Reporting Standards (“IFRS”). Under IFRS, the net assets per unit representatives and registered dealers and brokers, including presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. HSBC Investment Funds (Canada) Inc., for units of the Fund bought and held by unitholders. Finally, we used management (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the fees to pay for additional marketing and distribution services to relevant time. The increase/decrease in net assets from operations the Fund. per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. For the year ended December 31, 2020, approximately 46% of the total management fees collected from all HSBC Mutual (3) Distributions are automatically reinvested in additional units of the Fund, unless the unitholder withdraws from the automatic Funds were used to fund distribution costs. In comparison, for reinvestment plan by providing written notice to us. the Fund, such distribution costs represented 63% of the (4) This information is provided as at December 31 of the year shown. management fees collected. This may vary by series, (5) MER is based on total expenses (including a portion of the depending on the assets invested in each of the series. operating expenses of the underlying funds in proportion to the Fund’s holdings in the other funds and excluding distributions, Past Performance commissions and other portfolio transaction costs) for the stated The performance information shown assumes that all year and is expressed as an annualized percentage of daily average distributions made by the Fund in the years shown were net asset value during the year. In the year a series is established, reinvested in additional securities of the Fund. The performance the MER is annualized from the date of inception to the end of the information does not take into account sales, redemption, period. The MER may vary from one mutual fund to another and from one series of units to another. We may have waived or distribution, optional charges or expenses you may be charged absorbed certain fees and expenses otherwise payable by the Fund. 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 performance

3 HSBC Wealth Compass Balanced Fund of different fund series may vary for a number of reasons, The FTSE Canada 91 Day T-Bill Index is a measure of the total including differences in management fees and expenses. The return of Canadian treasury bills with a term to maturity of three Fund’s past performance does not necessarily indicate how it months. The FTSE Canada Universe Bond Total Return Index is will perform in the future. a broad measure of the total return for the Canadian bond market, covering marketable Canadian bonds with a term to Year-by-Year Returns maturity of more than one year. The MSCI ACWI ex Canada Years ended December 31 Index captures large-cap and mid-cap representation across The following bar charts show the Fund’s performance for each most developed market countries (excluding Canada) and a of the years shown, and illustrate how the Fund’s performance number of emerging market countries, and covers changed from year to year. In percentage terms, the bar charts approximately 85% of the global equity opportunity outside show how much an investment made on the first day of each Canada. The S&P/TSX Composite Total Return Index (10% financial year would have grown or decreased by the last day of capped) tracks the changes in the share prices of the largest each financial year. companies listed on the Toronto Stock Exchange, representing a broad range of industries.

Annual Returns – Investor Series Investor Series 20% Since 1 Year Inception 14.4% 15% HSBC Wealth Compass Balanced Fund 9.49% 7.08% 33% FTSE Canada Universe Bond Total Return Index, 10% 9.5% 32% MSCI ACWI ex Canada Index (net) (C$), 30% S&P/TSX Composite Total Return Index (10% capped), 5% FTSE Canada 91 Day T-Bill Index 9.72% 8.41% 5% (1) Due to the fact that several benchmark indices are only available on a monthly basis, the performance data for the HSBC Funds and the 0% benchmark indices are calculated using values from the first month- Dec. 31 Dec. 31 2019 2020 end date each Fund was in operation. (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations Annual Returns – Institutional Series section of this report.

10% Summary of Investment Portfolio As at December 31, 2020

5% Asset Mix Percentage of NAV

International Equities 32.77% Bonds 31.59% 0% Dec. 31 Dec. 31 Canadian Equities 30.36% 2019* 2020* Cash & Equivalents 5.28% Total 100.00% * The Institutional Series was fully redeemed during 2019 and 2020; however, it remains in offer as at period-end. Annual Compound Returns Top 25 Holdings* Percentage Year ended December 31, 2020 of NAV The following table shows the Fund’s historical annual compound total returns for the years indicated, compared with iShares Core Canadian Universe Bond Index ETF 31.59% iShares Core S&P/TSX Capped Composite Index ETF 30.36% the benchmark index over the same period. The benchmark of iShares Core S&P Total US Stock Market ETF 19.39% this Fund is a weighted composite consisting of the FTSE iShares Core MSCI Total International Stock ETF 13.38% Canada Universe Bond Total Return Index (33%), MSCI ACWI HSBC Canadian Money Market Fund - Institutional Series 4.79% ex Canada Index (net) (C$) (32%), S&P/TSX Composite Total Other net assets (liabilities) 0.49% Return Index (10% capped) (30%) and FTSE Canada 91 Day Total of Top 25 Holdings 100.00% T-Bill Index (5%). * The Fund had less than 25 holdings as at December 31, 2020.

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

4 HSBC Wealth Compass Balanced Fund

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.

5 HSBC Wealth Compass Balanced Fund

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 get a copy of these documents, as well as the Funds’ 3rd 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

HSBC Wealth CompassTM Growth Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

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

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Investment Performance Fund; we, us and our refer to HSBC Global Asset Management The HSBC Wealth Compass Growth Fund (Investor Series) rose (Canada) Limited; and the Fund refers to the HSBC Wealth 10.47% for the 12 months ending December 31, 2020, while Compass Growth Fund. the benchmark rose 10.78% over the same period. The Fund’s benchmark is a weighted composite consisting of the MSCI We are the manager, trustee and primary investment advisor of ACWI ex Canada Index (net) (C$) (46%), S&P/TSX Composite the Fund. Total Return Index (10% capped) (31%) and FTSE Canada Introduction Universe Bond Total Return Index (23%). The Fund’s returns are This Annual Management Report of Fund Performance contains after the deduction of fees and expenses, while the financial highlights but does not contain the complete annual benchmark’s returns do not include any costs of investing. See financial statements of the Fund. You may obtain a copy of the the Past Performance section for the returns of other series of annual financial statements at your request, at no cost, by the Fund, which may vary due to differences in management calling us toll-free at 1-888-390-3333, by visiting our website at fees and expenses. www.assetmanagement.hsbc.ca, by visiting the SEDAR Over the year, in Canadian-dollar terms, US and emerging website at www.sedar.com or by writing to us at: market equities returned more than 16%, while Canadian and HSBC Global Asset Management (Canada) Limited international equities rose by 5.6% and 6.6%, respectively. 3rd Floor, 885 West Georgia Street Elsewhere, helped by lingering investor worries and easy Vancouver, BC V6C 3E8 monetary policy, the Canadian bond market gained 8.7%. Within the commodities market, oil dropped more than 20% You may also contact us using one of these methods to request a and gold finished the year up 23.1%. copy of the Fund’s interim financial report, proxy voting policies and procedures, proxy voting disclosure record or quarterly Although 2020 may have been one of the most challenging portfolio disclosure. years for many of us as investors and human beings, it was encouraging to end the year with a ray of hope. COVID-19 Investment Objective and Strategies vaccination programs have begun, which may restore normal The fundamental investment objective of this Fund is to provide life gradually throughout 2021 and allow for further widespread investors with potential long-term capital growth and low to economic reopening. From a capital market performance moderate income through a diversified portfolio of investments perspective, 2020 also stands out for its incredible comeback across several asset classes. from March’s pandemic-fuelled crash, helped by unprecedented policy support and investors’ hope for a To achieve its objectives, the Fund invests in other mutual continuing recovery to pre-virus levels in the coming years. funds and uses strategic asset allocation as the principal investment strategy. The Fund has an established policy asset The Fund aims to approximate the return of its benchmark. mix, based on its stated objectives. In addition to adjusting the Gross of fees, the Fund broadly achieved this objective in 2020, Fund’s asset mix depending on economic conditions and the with differences primarily due to ETF fulfilment returns, a small relative value of securities in the Fund, the Fund may also use cash allocation and the timing of cash flows and tactical asset allocation to take advantage of current and portfolio rebalancing. expected future market conditions. Recent Developments Risk The global recovery has entered a phase we are calling the The risks of investing in the Fund remain as discussed in the “restoration economy” and it dominates our investment outlook Simplified Prospectus. During the year, there were no material as we move into 2021. The scenario is one where economic changes to the Fund that affected the overall risk level of growth moderates after the extraordinary rebound experienced the Fund. over the past nine months. It also refers to our market return expectations, which are still positive but somewhat moderated This Fund is suitable for investors who want long-term potential because of the intensity of the rally observed in 2020. growth of their capital and low to moderate interest income. Additionally, we believe that the overall economic fallout from Investors in this Fund should have a long-term investment time the pandemic is likely to dissipate as aggressive policy moves horizon and a low to medium tolerance for investment risk. continue to support economic momentum. Results of Operations The key risk that we are monitoring is an unexpected As of December 31, 2020, the Fund's net assets increased by deterioration in pandemic developments (such as vaccination 488.9% to $15.9 million from $2.7 million at the end of 2019. delays or viral variants). Changes in fiscal or monetary policy Net contributions and positive investment performance resulted direction and the relationship between China and the US are in an overall increase in net asset value. other risks that remain on our radar.

1 HSBC Wealth Compass Growth Fund

We have not made any changes to the strategic positioning and information is derived from the Fund’s audited annual financial management of the Fund. statements. The information in the following tables is based on prescribed regulations, and, as a result, is not expected to add During the period there has been a change in composition to the Independent Review Committee (the “IRC”). Effective down due to the increase/decrease in net assets from March 25, 2020, Ms. Louise Tymocko was appointed to the IRC operations being based on average units outstanding during the as a member, replacing Mr. William (Bill) Bakk who left as his year and all other numbers being based on actual units outstanding at the relevant point in time. term of office expired. Ms. Lisa Pankratz also took over as Chair of the IRC effective March 25, 2020. In addition, effective February 18, 2021, Ms. Sharon Morrisroe was also appointed to HSBC Wealth Compass Growth Fund – Investor the IRC as a member, replacing Mr. Neil de Gelder who left Series – Net Assets per Unit(1) following the expiry of his term in March of 2021. Year(s) ended December 31 Related Party Transactions 2020 2019 2018 We, on behalf of the Fund, or the Fund Manager, may, from Net assets per unit, beginning of year (2) $10.77 $9.27 $10.00 time to time, enter into transactions or arrangements with or Increase (decrease) from operations: involving other members of the HSBC Group or other people or Total revenue 0.28 0.33 0.24 companies related or connected to us or the Fund. To proceed Total expenses (0.07) (0.08) (0.06) with the transactions, the Fund relies on the positive Realized gains (losses) 0.01 0.06 (0.22) Unrealized gains (losses) 1.58 0.88 (1.15) recommendation of the Fund’s Independent Review Committee. A Total increase (decrease) from operations (2) condition of this positive recommendation is that the transactions $1.80 $1.19 $(1.19) are performed in accordance with our policy on Related Party Distributions to unitholders: From net investment income (excluding dividends) (0.06) (0.03) (0.06) Transactions. For more general information on persons related From dividends (0.04) (0.04) (0.02) to the Fund and the types of potential transactions, see the From capital gains – – – Fund’s Simplified Prospectus. Return of capital – – – The following is a summary of current transactions and Total annual distributions (2,3) $(0.10) $(0.07) $(0.08) arrangements with entities that are related to us or the Fund. Net assets per unit at December 31 of year shown (2) $11.80 $10.77 $9.27

Manager, Trustee and Investment Advisor We are the manager, trustee and primary investment advisor of Ratios and Supplemental Data the Fund. As manager, we manage the overall business and operations of the Fund. As trustee, we hold legal title to the 2020 2019 2018 property of the Fund on your behalf. As primary investment Total net asset value (in 000s) (4) $15,913 $2,705 $248 advisor, we provide investment advice and portfolio Number of units outstanding (in 000s) (4) 1,349 251 27 Management expense ratio ("MER") (5) 0.74% 0.83% 1.00% management services to the Fund. We receive a fee from the MER before waivers or absorptions (5) 1.76% 6.33% 22.77% Fund for these services based on assets under management, Trading expense ratio (6) 0.06% 0.08% 0.09% calculated daily and paid monthly. Portfolio turnover rate (7) 9.42% 29.90% 26.70% Net asset value per unit (4) $11.80 $10.77 $9.27

Distribution Services The Fund is distributed through us, HSBC Investment Funds (Canada) Inc. (our wholly owned subsidiary and affiliate) and HSBC Securities (Canada) Inc. (an affiliate) directly or through its division, HSBC InvestDirect. We pay distribution and servicing 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 and/or other HSBC Mutual Funds in a registered plan with HSBC Investment Funds (Canada) Inc., they may charge you an annual 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 market value in your registered plan. Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund’s financial performance for the years shown. This

2 HSBC Wealth Compass Growth Fund

HSBC Wealth Compass Growth Fund – The amount of expenses absorbed or waived is at the discretion of Institutional Series – Net Assets per Unit(1) and can be terminated at any time by us. Please see the Year(s) ended December 31 prospectus, Fund Facts and other disclosure documents for further details. 2020* 2019* 2018 (6) The trading expense ratio represents total commissions and other Net assets per unit, beginning of year (2) $– $9.52 $10.00 portfolio transaction costs expressed as an annualized percentage Increase (decrease) from operations: of daily average net asset value during the year. Total revenue – 0.15 0.21 (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Total expenses – – – portfolio advisor manages its portfolio investments. A portfolio Realized gains (losses) – 0.03 (0.13) turnover rate of 100% is equivalent to the Fund buying and selling Unrealized gains (losses) – 1.05 (0.38) all of the securities in its portfolio once in the course of the year. Total increase (decrease) from operations (2) $– $1.23 $(0.30) The higher the Fund’s portfolio turnover rate in a year, the greater Distributions to unitholders: the trading costs payable by the Fund in the year, and the greater From net investment income (excluding dividends) – – (0.12) the chance of an investor receiving taxable capital gains in the year. From dividends – – (0.05) There is not necessarily a relationship between a high turnover rate From capital gains – – – and the performance of the Fund. The rate is calculated based on Return of capital – – – the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding short- Total annual distributions (2,3) $– $– $(0.17) term securities. Net assets per unit at December 31 of year shown (2) $– $– $9.52 Management Fees For the year ended December 31, 2020, the Fund paid us Ratios and Supplemental Data management fees of $46,578. The management fee for each series is calculated as a percentage of the daily net asset value 2020* 2019* 2018 for that series. The fees are reduced, where required, so that Total net asset value (in 000s) (4) $– $– $145 these fees do not duplicate fees payable by mutual funds in Number of units outstanding (in 000s) (4) – – 15 Management expense ratio ("MER") (5) – 0.13% 0.15% which the Fund invests for the same service. MER before waivers or absorptions (5) – 9.96% 33.62% Trading expense ratio (6) – 0.08% 0.09% The Fund’s management fees were used by us to pay costs for Portfolio turnover rate (7) – 29.90% 26.70% managing the investment portfolio, providing investment Net asset value per unit (4) $– $– $9.52 analysis and recommendations, making investment decisions, * The Institutional Series was fully redeemed during 2019 & 2020; making brokerage arrangements for the purchase and sale of however, it remains in offer as at period-end. the investment portfolio and providing other services. The (1) This information is derived from the Fund’s audited annual financial management fees also funded commission payments and other statements. All balances are stated in International Financial compensation (collectively “distribution costs”) to sales Reporting Standards (“IFRS”). Under IFRS, the net assets per unit representatives and registered dealers and brokers, including presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. HSBC Investment Funds (Canada) Inc., for units of the Fund bought and held by unitholders. Finally, we used management (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the fees to pay for additional marketing and distribution services to relevant time. The increase/decrease in net assets from operations the Fund. per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. For the year ended December 31, 2020, approximately 46% of the total management fees collected from all HSBC Mutual (3) Distributions are automatically reinvested in additional units of the Fund, unless the unitholder withdraws from the automatic Funds were used to fund distribution costs. In comparison, for reinvestment plan by providing written notice to us. the Fund, such distribution costs represented 57% of the (4) This information is provided as at December 31 of the year shown. management fees collected. This may vary by series depending (5) MER is based on total expenses (including a portion of the on the assets invested in each of the series. operating expenses of the underlying funds in proportion to the Fund’s holdings in the other funds and excluding distributions, Past Performance commissions and other portfolio transaction costs) for the stated The performance information shown assumes that all year and is expressed as an annualized percentage of daily average distributions made by the Fund in the years shown were net asset value during the year. In the year a series is established, reinvested in additional securities of the Fund. The performance the MER is annualized from the date of inception to the end of the information does not take into account sales, redemption, period. The MER may vary from one mutual fund to another and from one series of units to another. We may have waived or distribution, optional charges or expenses you may be charged absorbed certain fees and expenses otherwise payable by the Fund. 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 performance

3 HSBC Wealth Compass Growth Fund of different fund series may vary for a number of reasons, The MSCI ACWI ex Canada Index (net) captures large-cap and including differences in management fees and expenses. The mid-cap representation across most developed market Fund’s past performance does not necessarily indicate how it countries (excluding Canada) and a number of emerging market will perform in the future. countries, and covers approximately 85% of the global equity opportunity outside Canada. The S&P/TSX Composite Total Year-by-Year Returns Return Index (10% capped) tracks the changes in the share Years ended December 31 prices of the largest companies listed on the Toronto Stock The following bar charts show the Fund’s performance for each Exchange, representing a broad range of industries. The FTSE of the years shown, and illustrate how the Fund’s performance Canada Universe Bond Total Return Index is a broad measure changed from year to year. In percentage terms, the bar charts of the total return for the Canadian bond market, covering show how much an investment made on the first day of each marketable Canadian bonds with a term to maturity of more financial year would have grown or decreased by the last day of than one year. each financial year. Investor Series Annual Returns – Investor Series

20% Since 16.9% 1 Year Inception HSBC Wealth Compass Growth Fund 10.47% 8.03% 15% 46% MSCI ACWI ex Canada Index (net) (C$), 31% 10.5% S&P/TSX Composite Total Return Index (10% capped), 10% 23% FTSE Canada Universe Bond Total Return Index 10.78% 9.29% (1) Due to the fact that several benchmark indices are only available on 5% a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- end date each Fund was in operation. 0% Dec. 31 Dec. 31 (2) For investment commentary and relative performance of the Fund 2019 2020 compared to its benchmark, please refer to the Results of Operations section of this report. Annual Returns – Institutional Series Summary of Investment Portfolio 10% As at December 31, 2020

Asset Mix 5% Percentage of NAV

International Equities 46.60% Canadian Equities 31.06% Bonds 21.82% 0% Cash & Equivalents 0.52% Dec. 31 Dec. 31 Total 100.00% 2019* 2020* * The Institutional Series was fully redeemed during 2019 and 2020; however, it remains in offer as at period-end. Top 25 Holdings* Percentage Annual Compound Returns of NAV Year ended December 31, 2020 iShares Core S&P/TSX Capped Composite Index ETF 31.06% The following table shows the Fund’s historical annual iShares Core S&P Total US Stock Market ETF 27.51% compound total returns for the years indicated, compared with iShares Core Canadian Universe Bond Index ETF 21.82% the benchmark index over the same period. The benchmark of iShares Core MSCI Total International Stock ETF 19.09% this Fund is a weighted composite consisting of the MSCI Other net assets (liabilities) 0.52% ACWI ex Canada Index (net) (C$) (46%), S&P/TSX Composite Total of Top 25 Holdings 100.00% Total Return Index (10% capped) (31%) and FTSE Canada * The Fund had less than 25 holdings as at December 31, 2020. Universe Bond Total Return Index (23%).

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

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.

4 HSBC Wealth Compass Growth Fund

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 get a copy of these documents, as well as the Funds’ 3rd 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

HSBC Wealth CompassTM Aggressive Growth Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

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

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Investment Performance Fund; we, us and our refer to HSBC Global Asset Management The HSBC Wealth Compass Aggressive Growth Fund (Investor (Canada) Limited; and the Fund refers to the HSBC Wealth Series) rose 10.33% for the 12 months ending December 31, Compass Aggressive Growth Fund. 2020, while the benchmark rose 11.63% over the same period. The Fund’s benchmark is a weighted composite consisting of We are the manager, trustee and primary investment advisor of the MSCI ACWI ex Canada Index (net) (C$) (64%), S&P/TSX the Fund. Composite Total Return Index (10% capped) (31%) and FTSE Introduction Canada Universe Bond Total Return Index (5%). The Fund’s This Annual Management Report of Fund Performance contains returns are after the deduction of fees and expenses, while the financial highlights but does not contain the complete annual benchmark’s returns do not include any costs of investing. See financial statements of the Fund. You may obtain a copy of the the Past Performance section for the returns of other series of annual financial statements at your request, at no cost, by the Fund, which may vary due to differences in management calling us toll-free at 1-888-390-3333, by visiting our website at fees and expenses. www.assetmanagement.hsbc.ca, by visiting the SEDAR Over the year, in Canadian-dollar terms, US and emerging website at www.sedar.com or by writing to us at: market equities returned more than 16%, while Canadian and HSBC Global Asset Management (Canada) Limited international equities rose by 5.6% and 6.6%, respectively. 3rd Floor, 885 West Georgia Street Elsewhere, helped by lingering investor worries and easy Vancouver, BC V6C 3E8 monetary policy, the Canadian bond market gained 8.7%. Within the commodities market, oil dropped more than 20% You may also contact us using one of these methods to request a and gold finished the year up 23.1%. copy of the Fund’s interim financial report, proxy voting policies Although 2020 may have been one of the most challenging and procedures, proxy voting disclosure record or quarterly years for many of us as investors and human beings, it was portfolio disclosure. encouraging to end the year with a ray of hope. COVID-19 Investment Objective and Strategies vaccination programs have begun, which may restore normal life gradually throughout 2021 and allow for further widespread The fundamental investment objective of this Fund is to provide economic reopening. From a capital market performance investors with potential long-term capital growth through a perspective, 2020 also stands out for its incredible comeback diversified portfolio of investments across several asset classes. from March’s pandemic-fuelled crash, helped by To achieve its objectives, the Fund invests in other mutual unprecedented policy support and investors’ hope for a funds and uses strategic asset allocation as the principal continuing recovery to pre-virus levels in the coming years. investment strategy. The Fund has an established policy asset The Fund aims to approximate the return of its benchmark. mix, based on its stated objectives. In addition to adjusting the Gross of fees, the Fund broadly achieved this objective in 2020, Fund’s asset mix depending on economic conditions and the with differences primarily due to ETF fulfilment returns, a small relative value of securities in the Fund, the Fund may also use cash allocation and the timing of cash flows and tactical asset allocation to take advantage of current and portfolio rebalancing. expected future market conditions. Recent Developments Risk The global recovery has entered a phase we are calling the The risks of investing in the Fund remain as discussed in the “restoration economy” and it dominates our investment outlook Simplified Prospectus. During the year, there were no material as we move into 2021. The scenario is one where economic changes to the Fund that affected the overall risk level of growth moderates after the extraordinary rebound experienced the Fund. over the past nine months. It also refers to our market return expectations, which are still positive but somewhat moderated This Fund is suitable for investors who want to maximize the because of the intensity of the rally observed in 2020. long-term potential growth of their capital. Investors in this Additionally, we believe that the overall economic fallout from Fund should have a long-term investment time horizon and a the pandemic is likely to dissipate as aggressive policy moves medium tolerance for investment risk. continue to support economic momentum. Results of Operations The key risk that we are monitoring is an unexpected As of December 31, 2020, the Fund's net assets increased by deterioration in pandemic developments (such as vaccination 275.0% to $9.0 million from $2.4 million at the end of 2019. Net delays or viral variants). Changes in fiscal or monetary policy contributions and positive investment performance resulted in direction and the relationship between China and the US are an overall increase in net asset value. other risks that remain on our radar.

1 HSBC Wealth Compass Aggressive Growth Fund

We have not made any changes to the strategic positioning and information is derived from the Fund’s audited annual financial management of the Fund. statements. The information in the following tables is based on prescribed regulations, and, as a result, is not expected to add During the period there has been a change in composition to the Independent Review Committee (the “IRC”). Effective down due to the increase/decrease in net assets from March 25, 2020, Ms. Louise Tymocko was appointed to the IRC operations being based on average units outstanding during the as a member, replacing Mr. William (Bill) Bakk who left as his year and all other numbers being based on actual units outstanding at the relevant point in time. term of office expired. Ms. Lisa Pankratz also took over as Chair of the IRC effective March 25, 2020. In addition, effective February 18, 2021, Ms. Sharon Morrisroe was also appointed to HSBC Wealth Compass Aggressive Growth the IRC as a member, replacing Mr. Neil de Gelder who left Fund – Investor Series – Net Assets per Unit(1) following the expiry of his term in March of 2021. Year(s) ended December 31 Related Party Transactions 2020 2019 2018 We, on behalf of the Fund, or the Fund Manager, may, from Net assets per unit, beginning of year (2) $11.47 $9.67 $10.00 time to time, enter into transactions or arrangements with or Increase (decrease) from operations: involving other members of the HSBC Group or other people or Total revenue 0.27 0.33 0.25 companies related or connected to us or the Fund. To proceed Total expenses (0.08) (0.08) (0.07) with the transactions, the Fund relies on the positive Realized gains (losses) 0.12 0.06 (0.32) Unrealized gains (losses) 1.63 1.21 (1.27) recommendation of the Fund’s Independent Review Committee. A Total increase (decrease) from operations (2) condition of this positive recommendation is that the transactions $1.94 $1.52 $(1.41) are performed in accordance with our policy on Related Party Distributions to unitholders: From net investment income (excluding dividends) (0.08) (0.04) – Transactions. For more general information on persons related From dividends (0.06) (0.06) (0.01) to the Fund and the types of potential transactions, see the From capital gains – – – Fund’s Simplified Prospectus. Return of capital – – – The following is a summary of current transactions and Total annual distributions (2,3) $(0.14) $(0.10) $(0.01) arrangements with entities that are related to us or the Fund. Net assets per unit at December 31 of year shown (2) $12.51 $11.47 $9.67

Manager, Trustee and Investment Advisor We are the manager, trustee and primary investment advisor of Ratios and Supplemental Data the Fund. As manager, we manage the overall business and operations of the Fund. As trustee, we hold legal title to the 2020 2019 2018 property of the Fund on your behalf. As primary investment Total net asset value (in 000s) (4) $9,033 $2,359 $406 advisor, we provide investment advice and portfolio Number of units outstanding (in 000s) (4) 722 206 42 Management expense ratio ("MER") (5) 0.74% 0.83% 1.00% management services to the Fund. We receive a fee from the MER before waivers or absorptions (5) 2.16% 6.02% 18.45% Fund for these services based on assets under management, Trading expense ratio (6) 0.05% 0.05% 0.09% calculated daily and paid monthly. Portfolio turnover rate (7) 20.91% 24.23% 37.53% Net asset value per unit (4) $12.51 $11.47 $9.67

2 HSBC Wealth Compass Aggressive Growth Fund

HSBC Wealth Compass Aggressive Growth The amount of expenses absorbed or waived is at the discretion of Fund – Institutional Series – Net Assets per and can be terminated at any time by us. Please see the (1) prospectus, Fund Facts and other disclosure documents for Unit further details. Year(s) ended December 31 (6) The trading expense ratio represents total commissions and other * * 2020 2019 2018 portfolio transaction costs expressed as an annualized percentage Net assets per unit, beginning of year (2) $– $9.49 $10.00 of daily average net asset value during the year. Increase (decrease) from operations: (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s Total revenue – 0.15 0.20 portfolio advisor manages its portfolio investments. A portfolio Total expenses – – – turnover rate of 100% is equivalent to the Fund buying and selling Realized gains (losses) – 0.05 (0.25) all of the securities in its portfolio once in the course of the year. Unrealized gains (losses) – 1.14 (0.36) The higher the Fund’s portfolio turnover rate in a year, the greater Total increase (decrease) from operations (2) $– $1.34 $(0.41) the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. Distributions to unitholders: There is not necessarily a relationship between a high turnover rate From net investment income (excluding dividends) – – (0.03) From dividends – – (0.07) and the performance of the Fund. The rate is calculated based on From capital gains – – – the lesser of purchases or sales of securities divided by the average Return of capital – – – weighted market value of the portfolio securities, excluding short- term securities. Total annual distributions (2,3) $– $– $(0.10) Net assets per unit at December 31 of year Management Fees shown (2) $– $– $9.49 For the year ended December 31, 2020, the Fund paid us management fees of $34,664. The management fee for each Ratios and Supplemental Data series is calculated as a percentage of the daily net asset value for that series. The fees are reduced, where required, so that 2020* 2019* 2018 these fees do not duplicate fees payable by mutual funds in Total net asset value (in 000s) (4) $– $– $144 which the Fund invests for the same service. Number of units outstanding (in 000s) (4) – – 15 Management expense ratio ("MER") (5) – 0.13% 0.15% The Fund’s management fees were used by us to pay costs for MER before waivers or absorptions (5) – 8.03% 27.35% Trading expense ratio (6) – 0.05% 0.09% managing the investment portfolio, providing investment Portfolio turnover rate (7) – 24.23% 37.53% analysis and recommendations, making investment decisions, Net asset value per unit (4) $– $– $9.49 making brokerage arrangements for the purchase and sale of * The Institutional Series was fully redeemed during 2019 & 2020; the investment portfolio and providing other services. The however, it remains in offer as at period-end. management fees also funded commission payments and other (1) This information is derived from the Fund’s audited annual financial compensation (collectively “distribution costs”) to sales statements. All balances are stated in International Financial representatives and registered dealers and brokers, including Reporting Standards (“IFRS”). Under IFRS, the net assets per unit HSBC Investment Funds (Canada) Inc., for units of the Fund presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. bought and held by unitholders. Finally, we used management fees to pay for additional marketing and distribution services to (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant series at the the Fund. relevant time. The increase/decrease in net assets from operations For the year ended December 31, 2020, approximately 46% of per unit is based on the weighted average number of units outstanding for the relevant series over the fiscal year. the total management fees collected from all HSBC Mutual (3) Distributions are automatically reinvested in additional units of the Funds were used to fund distribution costs. In comparison, for Fund, unless the unitholder withdraws from the automatic the Fund, such distribution costs represented 58% of the reinvestment plan by providing written notice to us. management fees collected. This may vary by series, (4) This information is provided as at December 31 of the year shown. depending on the assets invested in each of the series. (5) MER is based on total expenses (including a portion of the operating expenses of the underlying funds in proportion to the Past Performance Fund’s holdings in the other funds and excluding distributions, The performance information shown assumes that all commissions and other portfolio transaction costs) for the stated distributions made by the Fund in the years shown were year and is expressed as an annualized percentage of daily average reinvested in additional securities of the Fund. The performance net asset value during the year. In the year a series is established, information does not take into account sales, redemption, the MER is annualized from the date of inception to the end of the period. The MER may vary from one mutual fund to another and distribution, optional charges or expenses you may be charged from one series of units to another. We may have waived or outside of the Fund or the effect of any income tax you may absorbed certain fees and expenses otherwise payable by the Fund. have to pay as a result of your investment in the Fund that would have reduced returns or performance. The performance

3 HSBC Wealth Compass Aggressive Growth Fund of different fund series may vary for a number of reasons, The MSCI ACWI ex Canada Index (net) captures large-cap and including differences in management fees and expenses. The mid-cap representation across most developed market Fund’s past performance does not necessarily indicate how it countries (excluding Canada) and a number of emerging market will perform in the future. countries, and covers approximately 85% of the global equity opportunity outside Canada. The S&P/TSX Composite Total Year-by-Year Returns Return Index (10% capped) tracks the changes in the share Years ended December 31 prices of the largest companies listed on the Toronto Stock The following bar charts show the Fund’s performance for each Exchange, representing a broad range of industries. The FTSE of the years shown, and illustrate how the Fund’s performance Canada Universe Bond Total Return Index is a broad measure changed from year to year. In percentage terms, the bar charts of the total return for the Canadian bond market, covering show how much an investment made on the first day of each marketable Canadian bonds with a term to maturity of more financial year would have grown or decreased by the last day of than one year. each financial year. Investor Series Annual Returns – Investor Series

25% Since 1 Year Inception 19.6% 20% HSBC Wealth Compass Aggressive Growth Fund 10.33% 8.54% 64% MSCI ACWI ex Canada Index (net) (C$), 31% 15% S&P/TSX Composite Total Return Index (10% capped), 5% FTSE Canada Universe Bond Total Return Index 11.63% 10.00% 10.3% 10% (1) Due to the fact that several benchmark indices are only available on a monthly basis, the performance data for the HSBC Funds and the 5% benchmark indices are calculated using values from the first month- end date each Fund was in operation. 0% Dec. 31 Dec. 31 (2) For investment commentary and relative performance of the Fund 2019 2020 compared to its benchmark, please refer to the Results of Operations section of this report. Annual Returns – Institutional Series Summary of Investment Portfolio 10% As at December 31, 2020

Asset Mix 5% Percentage of NAV

International Equities 64.19% Canadian Equities 30.65% Bonds 4.77% 0% Cash & Equivalents 0.39% Dec. 31 Dec. 31 Total 100.00% 2019* 2020* * The Institutional Series was fully redeemed during 2019 and 2020; however, it remains in offer as at period-end. Top 25 Holdings* Percentage Annual Compound Returns of NAV Year ended December 31, 2020 iShares Core S&P Total US Stock Market ETF 37.94% The following table shows the Fund’s historical annual iShares Core S&P/TSX Capped Composite Index ETF 30.65% compound total returns for the years indicated, compared with iShares Core MSCI Total International Stock ETF 26.25% the benchmark index over the same period. The benchmark of iShares Core Canadian Universe Bond Index ETF 4.77% this Fund is a weighted composite consisting of the MSCI Other net assets (liabilities) 0.39% ACWI ex Canada Index (net) (C$) (64%), S&P/TSX Composite Total of Top 25 Holdings 100.00% Total Return Index (10% capped) (31%) and FTSE Canada * The Fund had less than 25 holdings as at December 31, 2020. Universe Bond Total Return Index (5%).

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

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.

4 HSBC Wealth Compass Aggressive Growth Fund

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 get a copy of these documents, as well as the Funds’ 3rd 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

HSBC Canadian Money Market Pooled Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Canadian Money Market Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Investment Performance Fund; we, us and our refer to HSBC Global Asset Management The HSBC Canadian Money Market Pooled Fund rose 0.84% for (Canada) Limited; and the Fund refers to the HSBC Canadian the 12 months ending December 31, 2020, while the Money Market Pooled Fund. benchmark rose 0.68% over the same period. The benchmark is a weighted composite consisting of the FTSE Canada 30 Day We are the manager, trustee and primary investment advisor of T-Bill Index (50%) and FTSE Canada 60 Day T-Bill Index (50%). the Fund. The Fund’s returns are after the deduction of fees and Introduction expenses, while the benchmark’s returns do not include any This Annual Management Report of Fund Performance contains costs of investing. financial highlights but does not contain the complete annual The lower portfolio and market returns compared to 2019 financial statements of the Fund. You may obtain a copy of the reflect the lower investable rate environment following three annual financial statements at your request, at no cost, by Bank of Canada policy rate decreases in March 2020 from calling us toll-free at 1-888-390-3333, by visiting our website at 1.75% to 0.25%, the effective lower bound. www.assetmanagement.hsbc.ca, by visiting the SEDAR website at www.sedar.com or by writing to us at: We increased our defensive position to the corporate debt sector over the first half of 2020, focusing on high-quality issues HSBC Global Asset Management (Canada) Limited and increasing the Fund’s exposure to Government of Canada rd 3 Floor, 885 West Georgia Street holdings and overnight securities. As risk sentiment rose and Vancouver, BC V6C 3E8 economic data improved in the second half of the year, we You may also contact us using one of these methods to request a lowered our government holdings and added credit exposure. copy of the Fund’s interim financial report, proxy voting policies We also aimed to add value by adjusting the weighted-average and procedures, proxy voting disclosure record or quarterly maturity (or duration) of the portfolio holdings relative to its portfolio disclosure. benchmark. Over the course of the year, the Fund’s duration was substantially higher than its blended 45-day benchmark, Investment Objective and Strategies which helped the Fund outperform as we had expected some The fundamental investment objective of this Fund is to provide rate cuts from the Bank of Canada in the first quarter due to a high level of monthly interest income while preserving capital. rising concerns over the economic impact of COVID-19. To achieve its objectives, the Fund invests primarily in high- quality, short-term Canadian fixed income securities Recent Developments denominated in Canadian dollars such as treasury bills and Although 2020 may have been one of the most challenging other fixed income securities issued or guaranteed by the years many have faced, it is encouraging to have ended the Government of Canada or a province of Canada, a foreign year with a ray of hope. Vaccination programs mean 2021 government or related foreign government agency, or a could well be defined by markets – and our lives – slowly Canadian or foreign corporation. The Fund may invest up to returning to normal. We are calling this phase the “restoration 33% of its assets in Canadian-dollar-denominated foreign economy,” a scenario where global growth moderates after the securities. All of the Fund’s securities will have a term to extraordinary rebound experienced over the past nine months. maturity of 365 days or less, with an average term to maturity Many economies will recover to pre-COVID-19 levels of activity of no more than 60 days. in 2021, although we don’t expect to reach this milestone in Canada until early 2022. We maintain our view that the Risk economic fallout from the pandemic is likely to dissipate as The risks of investing in the Fund remain as discussed in the aggressive policy moves continue to support liquidity and Simplified Prospectus. During the year, there were no material economic momentum. changes to the Fund that affected the overall risk level of the Fund. The Bank of Canada has committed to keeping rates low and its support in place until the economic recovery is well underway. This Fund is suitable for investors who want to earn interest While negative interest rates remain an option in the Bank’s income and preserve their capital, have a short-term investment toolkit, a more likely scenario should they want to provide more time horizon and have a low tolerance for risk. monetary stimulus would be to lower the effective lower bound Results of Operations to 0.10% or 0.15% from the current 0.25% level. As of December 31, 2020, the Fund's net assets increased by During the period there has been a change in composition to 0.0% to $224.3 million from $224.2 million at the end of 2019. the Independent Review Committee (the “IRC”). Effective Positive investment performance, partially offset by net March 25, 2020, Ms. Louise Tymocko was appointed to the IRC withdrawals, resulted in an overall increase in net asset value. as a member, replacing Mr. William (Bill) Bakk who left as his

1 HSBC Canadian Money Market Pooled Fund term of office expired. Ms. Lisa Pankratz also took over as Chair HSBC Canadian Money Market Pooled Fund – of the IRC effective March 25, 2020. In addition, effective Net Assets per Unit(1) February 18, 2021, Ms. Sharon Morrisroe was also appointed to Year(s) ended December 31 the IRC as a member, replacing Mr. Neil de Gelder who left 2020 2019 2018 2017 2016 following the expiry of his term in March of 2021. Net assets per unit, beginning of year (2) $10.00 $10.00 $10.00 $10.00 $10.00 Related Party Transactions Increase (decrease) from We, on behalf of the Fund, or the Fund Manager, may, from operations: time to time, enter into transactions or arrangements with or Total revenue 0.09 0.19 0.16 0.09 0.07 involving other members of the HSBC Group or other people or Total expenses (0.01) (0.01) (0.01) (0.01) (0.01) companies related or connected to us or the Fund. To proceed Realized gains (losses) – – – – – Unrealized gains (losses) – – – – – with the transactions, the Fund relies on the positive Total increase (decrease) from recommendation of the Fund’s Independent Review Committee. A operations (2) $0.08 $0.18 $0.15 $0.08 $0.06 condition of this positive recommendation is that the transactions Distributions to unitholders: are performed in accordance with our policy on Related Party From net investment income Transactions. For more general information on persons related (excluding dividends) (0.08) (0.18) (0.15) (0.08) (0.06) to the Fund and the types of potential transactions, see the From dividends – – – – – From capital gains – – – – – Fund’s Simplified Prospectus. Return of capital – – – – – The following is a summary of current transactions and Total annual distributions (2,3) $(0.08) $(0.18) $(0.15) $(0.08) $– arrangements with entities that are related to us or the Fund. Net assets per unit at December 31 of year shown (2) $10.00 $10.00 $10.00 $10.00 $10.00 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 Ratios and Supplemental Data operations of the Fund. As trustee, we hold legal title to the 2020 2019 2018 2017 2016 property of the Fund on your behalf. As primary investment Total net asset value advisor, we provide investment advice and portfolio (in 000s) (4) $224,301 $224,240 $224,832 $233,288 $195,956 Number of units management services to the Fund. We receive a fee from the outstanding (in Fund for these services based on assets under management, 000s) (4) 22,430 22,424 22,483 23,329 19,596 calculated daily and paid monthly. Management expense ratio Distribution Services ("MER") (5) 0.08% 0.09% 0.06% 0.06% 0.05% MER before waivers The Fund is distributed through us and HSBC Investment Funds or absorptions (5) 0.08% 0.09% 0.06% 0.06% 0.05% (Canada) Inc. (our wholly owned subsidiary). We may pay Trading expense distribution and servicing fees to our related party distributor ratio (6) n/a n/a n/a n/a n/a based on the value of the units held in the investor’s account, Net asset value per unit (4) $10.00 $10.00 $10.00 $10.00 $10.00 and additionally, in some cases, on the amount of the initial purchase. (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund’s financial performance for the past five years. This information is derived from the Fund’s audited annual financial statements. The information in the following tables is based on prescribed regulations, and, as a result, is not expected to add down due to the increase/decrease in net assets from operations being based on average units outstanding during the year and all other numbers being based on actual units outstanding at the relevant point in time.

2 HSBC Canadian Money Market Pooled Fund

mutual fund to another. 10% (6) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the year.

Management Fees 5% For the year ended December 31, 2020, the Fund did not pay management fees. You pay us, HSBC Investment Funds 1.5% 1.8% (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or 1.0% 1.0% 1.0% 1.0% 0.7% 0.7% 0.8% 0.8% your approved advisor a management fee that is based on the 0% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 amount you have invested with us or your approved advisor 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (which may be subject to certain minimum annual fees). It is negotiated between you and us, HSBC Investment Funds Summary of Investment Portfolio (Canada) Inc. or your approved advisor. Further details can be As at December 31, 2020 found in the Fund’s Simplified Prospectus.

Management fees paid to us were used to pay costs for Asset Mix managing the investment portfolio, providing investment Percentage analysis and recommendations, making investment decisions, of NAV making brokerage arrangements for the purchase and sale of Government Bonds 61.79% the investment portfolio and providing other services. The Corporate Bonds 39.94% management fees also funded commission payments and other Cash & Equivalents -1.73% 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, 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.

For the year ended December 31, 2020, approximately 37% of the total management fees paid to us for all HSBC Pooled Funds were used to fund distribution costs. Past Performance The performance information shown assumes that all distributions made by the Fund in the years shown were 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 be charged outside of the Fund or the effect of any

3 HSBC Canadian Money Market Pooled Fund

Top 25 Holdings Percentage of NAV

Canada Housing Trust No. 1, 1.25%, 06/15/2021 19.48% Federation des caisses Desjardins du Quebec, 0.25%, 01/04/2021 7.14% Municipal Finance Authority of British Columbia, 0.20%, 01/13/2021 5.80% Royal Bank of Canada, 0.20%, 01/04/2021 5.26% Province of Ontario, 0.20%, 01/27/2021 4.45% City of Toronto, 3.50%, 12/06/2021 3.68% Ontario Teachers' Finance Trust, 0.32%, 02/09/2021 2.45% Province of British Columbia Interest Strip, 0.00%, 06/18/2021 2.19% Bank of Montreal, 3.40%, 04/23/2021 2.11% Toronto-Dominion Bank, 2.05%, 03/08/2021 2.01% Bank of China, 0.50%, 01/15/2021 1.91% China Construction Bank Toronto Branch, 0.33%, 02/05/2021 1.83% Mizuho Bank, Ltd., Canada Branch, 0.24%, 01/29/2021 1.83% BNP Paribas Canada, 0.28%, 02/02/2021 1.78% National Bank of Canada, 0.24%, 01/15/2021 1.78% Ontario Teachers' Finance Trust, 0.30%, 03/05/2021 1.78% Province of Ontario, 1.71%, 02/03/2021 1.75% BNP Paribas Canada, 0.25%, 02/04/2021 1.65% JPMorgan Chase Bank, N.A., 0.23%, 01/15/2021 1.62% MUFG Bank, Ltd., Canada Branch, 0.31%, 03/10/2021 1.47% Bank of Nova Scotia, 0.22%, 01/13/2021 1.34% Canadian Imperial Bank of Commerce, 1.90%, 04/26/2021 1.34% Manulife Bank of Canada, 0.34%, 03/10/2021 1.34% Municipal Finance Authority of British Columbia, 0.18%, 01/20/2021 1.34% Toronto-Dominion Bank, 2.62%, 12/22/2021 1.32% Total of Top 25 Holdings 78.65%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

4 HSBC Canadian Money Market Pooled Fund

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 get a copy of these documents at no cost by calling us 3rd 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

HSBC Mortgage Pooled Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Mortgage Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Investment Performance Fund; we, us and our refer to HSBC Global Asset Management The HSBC Mortgage Pooled Fund rose 4.28% for the 12 (Canada) Limited; and the Fund refers to the HSBC Mortgage months ending December 31, 2020, while the benchmark rose Pooled Fund. 3.74% over the same period. The benchmark is a weighted composite consisting of the FTSE Canada 1 Year Mortgage We are the manager, trustee and primary investment advisor of Index (45%), FTSE Canada 3 Year Mortgage Index (25%), FTSE the Fund. Canada 5 Year Mortgage Index (10%), FTSE Canada Short Term Introduction Bond Index (10%) and FTSE Canada 91 Day T-Bill Index (10%), This Annual Management Report of Fund Performance contains with a discount factor. The Fund’s returns are after the financial highlights but does not contain the complete annual deduction of fees and expenses, while the benchmark’s returns financial statements of the Fund. You may obtain a copy of the do not include any costs of investing. annual financial statements at your request, at no cost, by Although corporate credit spreads weakened in tandem with calling us toll-free at 1-888-390-3333, by visiting our website at equities in the first quarter, the FTSE Canada Short Term Bond www.assetmanagement.hsbc.ca, by visiting the SEDAR Index retraced all of the credit spread widening over the rest of website at www.sedar.com or by writing to us at: the year as attractive valuations and government support led to HSBC Global Asset Management (Canada) Limited strong demand for short-term corporate debt. Central banks 3rd Floor, 885 West Georgia Street launched asset purchase programs to ensure well-functioning Vancouver, BC V6C 3E8 financial markets, which absorbed the increased supply from federal and provincial issuers and provided strong tailwinds for You may also contact us using one of these methods to request a corporate and provincial debt in the final three quarters of the copy of the Fund’s interim financial report, proxy voting policies year. Both the US Federal Reserve and Bank of Canada cut and procedures, proxy voting disclosure record or quarterly overnight rates to near zero in the first quarter and have guided portfolio disclosure. the markets to not expect a rate hike for the next few years. Investment Objective and Strategies The Fund generated strong absolute performance as a result of the team’s active investment process. Our overweight position The fundamental investment objective of this Fund is to provide in longer-dated, three- to five-year mortgages was the primary interest income while protecting invested capital. source of outperformance. To achieve its objectives, the Fund invests primarily in units of the HSBC Mortgage Fund, a mutual fund trust also managed by Recent Developments us. The HSBC Mortgage Fund purchases uninsured Canadian We maintain our view that the economic fallout from the dollar-denominated mortgages from HSBC Bank Canada (“the pandemic is likely to dissipate as aggressive policy moves Bank”) or its subsidiaries. If any mortgage purchased from the continue to support liquidity and economic momentum. Although valuations for many segments in the Canadian fixed Bank or its subsidiaries is in default for 90 days or more, the income universe are close to pre-COVID-19 levels, we still see Bank will repurchase those mortgages. pockets of the credit market that remain attractive, as well as Risk duration opportunities. We expect policymakers to remain The risks of investing in the Fund remain as discussed in the highly accommodative with monetary policy well into a recovery, which will help assets with beneficial carry profiles, as Simplified Prospectus. During the year, there were no material investors seek income in a near-zero interest rate environment. changes to the Fund that affected the overall risk level of the Fund. Compared to the benchmark allocation, we hold a modestly overweight position in mortgages, predominantly in longer- This Fund is suitable for investors who want to earn interest dated mortgages, given their attractive valuations compared to income and protect their capital, have a short-term investment government bonds. We believe the HSBC Mortgage Fund time horizon and have a low tolerance for risk in their returns. continues to look attractive compared to the FTSE Canada Results of Operations Short Term Bond Index given the still historically large yield advantage carried by the Fund despite its conservative risk As of December 31, 2020, the Fund's net assets increased by profile. The Fund continues to hold high levels of liquidity 1.6% to $772.3 million from $760.0 million at the end of 2019. despite the normalization in financial markets. Positive investment performance, partially offset by net withdrawals, resulted in an overall increase in net asset value. During the period there has been a change in composition to the Independent Review Committee (the “IRC”). Effective March 25, 2020, Ms. Louise Tymocko was appointed to the IRC as a member, replacing Mr. William (Bill) Bakk who left as his

1 HSBC Mortgage Pooled Fund term of office expired. Ms. Lisa Pankratz also took over as Chair In addition, pursuant to an agreement between the Bank and of the IRC effective March 25, 2020. In addition, effective the HSBC Mortgage Fund, the HSBC Mortgage Fund will pay February 18, 2021, Ms. Sharon Morrisroe was also appointed to the Bank a fee for the administration of the mortgages the IRC as a member, replacing Mr. Neil de Gelder who left purchased from the Bank, which will be accrued and paid daily following the expiry of his term in March of 2021. as an expense to the HSBC Mortgage Fund. The administration fee is equal to 0.10% annually of the value of the mortgages Related Party Transactions purchased from the Bank. The proportion of this fee associated We, on behalf of the Fund, or the Fund Manager, may, from with the mortgages held by the HSBC Mortgage Pooled Fund time to time, enter into transactions or arrangements with or amounted to $728,449 on December 31, 2020 (December 31, involving other members of the HSBC Group or other people or 2019, $649,021). companies related or connected to us or the Fund. To proceed with the transactions, the Fund relies on the positive Distribution Services recommendation of the Fund’s Independent Review Committee. A The Fund is distributed through us and HSBC Investment Funds condition of this positive recommendation is that the transactions (Canada) Inc. (our wholly owned subsidiary). We may pay are performed in accordance with our policy on Related Party distribution and servicing fees to our related party distributor Transactions. For more general information on persons related based on the value of the units held in the investor’s account, to the Fund and the types of potential transactions, see the and additionally, in some cases, on the amount of the Fund’s Simplified Prospectus. initial purchase.

The following is a summary of current transactions and Fund on Fund Investing arrangements with entities that are related to us or the Fund. During the year, the Fund invested in units of the HSBC Mortgage Fund, which is also managed by us. Manager, Trustee and Investment Advisor We are the manager, trustee and primary investment advisor of Financial Highlights the Fund. As manager, we manage the overall business and The following tables show selected key financial information operations of the Fund. As trustee, we hold legal title to the about the Fund and are intended to help you understand the property of the Fund on your behalf. As primary investment Fund’s financial performance for the past five years. This advisor, we provide investment advice and portfolio information is derived from the Fund’s audited annual financial management services to the Fund. We receive a fee from the statements. The information in the following tables is based on Fund for these services based on assets under management, prescribed regulations, and, as a result, is not expected to add calculated daily and paid monthly. down due to the increase/decrease in net assets from operations being based on average units outstanding during the Mortgage Sale and Administration Services year and all other numbers being based on actual units The HSBC Mortgage Pooled Fund invests primarily in units of outstanding at the relevant point in time. the HSBC Mortgage Fund. The HSBC Mortgage Fund purchases its mortgages from HSBC Bank Canada (“the Bank”) (of which we are a wholly owned subsidiary) and its subsidiary, HSBC Mortgage Corporation (Canada) (“Mortgage Corp.”), at an amount that will produce a yield to the HSBC Mortgage Fund of not more than 1/4 of 1% less than the interest rate at which the Bank or Mortgage Corp. is making a similar commitment at the time of purchase. The lesser yield of 1/4 of 1% is in consideration of the agreement by the Bank to repurchase the mortgages under certain circumstances. The proportion of this fee for the HSBC Mortgage Pooled Fund amounted to $1,706,707 for the year ended December 31, 2020 (December 31, 2019, $1,565,060).

To proceed with the transactions, the HSBC Mortgage Fund relied on the approval of the Fund’s Independent Review Committee by way of Standing Instruction. A condition of this approval was that the transactions were performed in accordance with National Policy No. 29 and in accordance with all requirements of various relief orders that have been granted to us by the regulators in relation to these kinds of transactions.

2 HSBC Mortgage Pooled Fund

HSBC Mortgage Pooled Fund – Net Assets per year and is expressed as an annualized percentage of daily average Unit(1) net asset value during the year. The MER may vary from one Year(s) ended December 31 mutual fund to another. Please see the prospectus, Fund Facts and other disclosure documents for further details. 2020 2019 2018 2017 2016 (6) The trading expense ratio represents total commissions and other Net assets per unit, beginning of portfolio transaction costs expressed as an annualized percentage year (2) $10.23 $10.12 $10.19 $10.34 $10.29 of daily average net asset value during the year. Increase (decrease) from (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s operations: portfolio advisor manages its portfolio investments. A portfolio Total revenue 0.25 0.26 0.26 0.25 0.27 turnover rate of 100% is equivalent to the Fund buying and selling Total expenses (0.01) (0.01) – – – all of the securities in its portfolio once in the course of the year. Realized gains (losses) 0.01 – (0.01) – – The higher the Fund’s portfolio turnover rate in a year, the greater Unrealized gains (losses) 0.18 0.11 (0.07) (0.14) 0.05 the trading costs payable by the Fund in the year, and the greater Total increase (decrease) from the chance of an investor receiving taxable capital gains in the year. operations (2) $0.43 $0.36 $0.18 $0.11 $0.32 There is not necessarily a relationship between a high turnover rate Distributions to unitholders: and the performance of the Fund. The rate is calculated based on From net investment income the lesser of purchases or sales of securities divided by the average (excluding dividends) (0.24) (0.26) (0.25) (0.25) (0.27) weighted market value of the portfolio securities, excluding short- From dividends – – – – – term securities. From capital gains – – – – – Return of capital – – – – – Management Fees Total annual distributions (2,3) $(0.24) $(0.26) $(0.25) $(0.25) $(0.27) For the year ended December 31, 2020, the Fund did not pay Net assets per unit at December management fees. You pay us, HSBC Investment Funds 31 of year shown (2) $10.42 $10.23 $10.12 $10.19 $10.34 (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or

your approved advisor a management fee that is based on the Ratios and Supplemental Data amount you have invested with us or your approved advisor (which may be subject to certain minimum annual fees). It is 2020 2019 2018 2017 2016 negotiated between you and us, HSBC Investment Funds Total net asset value (Canada) Inc. or your approved advisor. Further details can be (in 000s) (4) $772,289 $760,014 $659,499 $606,055 $531,649 found in the Fund’s Simplified Prospectus. Number of units outstanding (in Management fees paid to us were used to pay costs for 000s) (4) 74,108 74,295 65,157 59,453 51,442 Management managing the investment portfolio, providing investment expense ratio analysis and recommendations, making investment decisions, ("MER") (5) 0.18% 0.18% 0.13% 0.14% 0.14% making brokerage arrangements for the purchase and sale of MER before waivers the investment portfolio and providing other services. The or absorptions (5) 0.18% 0.18% 0.13% 0.14% 0.14% management fees also funded commission payments and other Trading expense ratio (6) n/a n/a n/a n/a n/a compensation (collectively “distribution costs”) to sales Portfolio turnover representatives and registered dealers and brokers, including rate (7) 11.13% 4.55% 5.69% 3.75% 8.82% HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, Net asset value per for units of the Fund bought and held by unitholders. Finally, unit (4) $10.42 $10.23 $10.12 $10.19 $10.34 we used management fees to pay for additional marketing and (1) This information is derived from the Fund’s audited annual financial distribution services to the Fund. statements. All balances are stated in International Financial Reporting Standards (“IFRS”). Under IFRS, the net assets per unit For the year ended December 31, 2020, approximately 37% of presented in the financial statements is the same as the net asset the total management fees paid to us for all HSBC Pooled value calculated for fund pricing purposes. Funds 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 Past Performance increase/decrease in net assets from operations per unit is based on The performance information shown assumes that all the weighted average number of units outstanding over the distributions made by the Fund in the years shown were fiscal year. 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, Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. sales, redemption, distribution, optional charges or expenses you may be charged outside of the Fund or the effect of any (4) This information is provided as at December 31 of the year shown. income tax you may have to pay as a result of your investment (5) MER is based on total expenses (including a portion of the operating expenses of the underlying funds in proportion to the in the Fund that would have reduced returns or performance. Fund’s holdings in the other funds and excluding distributions, The Fund’s past performance does not necessarily indicate how commissions and other portfolio transaction costs) for the stated it will perform in the future.

3 HSBC Mortgage Pooled Fund

Year-by-Year Returns 1 Year 3 Year 5 Year 10 Year Years ended December 31 HSBC Mortgage Pooled Fund 4.28% 3.23% 2.76% 2.76% The following bar chart shows the Fund’s annual performance 45% FTSE Canada 1-Yr Mortgage Index, for each of the years shown, and illustrates how the Fund’s 25% FTSE Canada 3-Yr Mortgage Index, performance changed from year to year. In percentage terms, 10% FTSE Canada 5-Yr Mortgage Index, 10% FTSE Canada ST Bond Index, 10% the bar chart shows how much an investment made on the first FTSE Canada 91 Day T-Bill Index, with a day of each financial year would have grown or decreased by discount factor 3.74% 3.07% 2.68% 2.78% the last day of each financial year. FTSE Canada Short Term Bond Index 5.29% 3.42% 2.26% 2.54% (1) Due to the fact that several benchmark indices are only available on Annual Returns a monthly basis, the performance data for the HSBC Funds and the

10% benchmark indices are calculated using values from the first month- end date each Fund was in operation. (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations section of this report. 5% 4.3% 3.6% 3.1% 3.1% Summary of Investment Portfolio 2.8% 2.7% 2.6% 2.6% 1.8% As at December 31, 2020 1.0% The Fund invests substantially all of its assets in the HSBC 0% Mortgage Fund – Institutional Series. The tables below give you Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 a snapshot of the HSBC Mortgage Fund's investments on December 31, 2020.

Annual Compound Returns Year ended December 31, 2020 Asset Mix The following table shows the Fund’s historical annual Percentage compound total returns for the years indicated, compared with of NAV the benchmark index. The benchmark is a weighted composite Residential Mortgages 80.06% consisting of the FTSE Canada 1-Year Mortgage Index (45%), Corporate Bonds 10.82% FTSE Canada 3-Year Mortgage Index (25%), FTSE Canada 5 Government Bonds 6.76% Year Mortgage Index (10%), FTSE Canada Short Term Bond Cash & Equivalents 2.36% Total 100.00% Index (10%) and FTSE Canada 91 Day T-Bill Index (10%), with mortgage components discounted by an appropriate amount to reflect actual prevailing mortgage rates over the prior year.

The FTSE Canada Mortgage Index (1-, 3- and 5-Year) is designed to measure total return on a hypothetical residential mortgage with a current mortgage rate. The FTSE Canada Short Term Bond Index is a broad measure of the total return for the Canadian short-term bond market, covering marketable Canadian bonds with a term to maturity between one and five years. The FTSE Canada 91 Day T-Bill Index is a broad measure of the total return for the Canadian 91-day treasury bill market, covering marketable Canadian treasury bills with a term-to maturity of 91 days or less.

4 HSBC Mortgage Pooled Fund

Top 25 Holdings Percentage of NAV

Residential Mortgages 80.07% Canada Housing Trust No. 1, 1.25%, 06/15/2021 1.96% Canada Housing Trust No. 1, 1.15%, 12/15/2021 1.62% Aviva PLC, 4.50%, 05/10/2021 1.39% Canada Housing Trust No. 1, 2.35%, 06/15/2027 1.32% Canada Housing Trust No. 1, 1.90%, 09/15/2026 1.03% Canadian Mortgage Pools, 1.80%, 09/01/2024 0.97% Royal Bank of Canada, 0.20%, 01/04/2021 0.79% Canadian Mortgage Pools, 1.89%, 10/01/2024 0.70% Canadian Mortgage Pools, 1.90%, 07/01/2024 0.61% Suncor Energy Inc., 0.54%, 02/02/2021 0.60% Canadian Mortgage Pools, 0.60%, 12/01/2025 0.48% Goldman Sachs Group Inc., 3.55%, 02/12/2021 0.39% Toronto-Dominion Bank, 3.11%, 04/22/2030 0.39% Empire Life Insurance Co., 3.38%, 12/16/2026 0.36% Province of Ontario, 2.40%, 06/02/2026 0.30% Canadian Mortgage Pools, 1.25%, 03/01/2025 0.27% Province of British Columbia, 2.30%, 06/18/2026 0.26% BHP Billiton Finance Ltd., 3.23%, 05/15/2023 0.25% CCL Industries Inc, 3.86%, 04/13/2028 0.23% Canada Housing Trust No. 1, 1.95%, 12/15/2025 0.21% Choice Properties Real Estate Investment Trust, 3.56%, 09/09/2024 0.21% Morgan Stanley, 3.00%, 02/07/2024 0.21% Aroundtown SA, 4.63%, 09/18/2025 0.20% Brookfield Infrastructure Finance ULC, 3.32%, 02/22/2024 0.20% Total of Top 25 Holdings 95.02%

5 HSBC Mortgage Pooled Fund

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 get a copy of these documents at no cost by calling us 3rd 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

HSBC Canadian Bond Pooled Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Canadian Bond Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Investment Performance Fund; we, us and our refer to HSBC Global Asset Management The HSBC Canadian Bond Pooled Fund rose 9.65% for the 12 (Canada) Limited; and the Fund refers to the HSBC Canadian months ending December 31, 2020, while the benchmark FTSE Bond Pooled Fund. Canada Universe Bond Index rose 8.68% over the same period. The Fund’s returns are after the deduction of fees and We are the manager, trustee and primary investment advisor of expenses, while the benchmark’s returns do not include any the Fund. costs of investing.

Introduction Although corporate credit spreads weakened in tandem with This Annual Management Report of Fund Performance contains equities in the first quarter of 2020, the FTSE Canada Universe financial highlights but does not contain the complete annual Bond Index retraced 90% of the corporate credit spread financial statements of the Fund. You may obtain a copy of the widening over the rest of the year as attractive valuations and annual financial statements at your request, at no cost, by government support led to strong demand for corporate debt. calling us toll-free at 1-888-390-3333, by visiting our website at Central banks launched asset purchase programs to ensure www.assetmanagement.hsbc.ca, by visiting the SEDAR well-functioning financial markets, which absorbed the website at www.sedar.com or by writing to us at: increased supply from federal and provincial issuers and HSBC Global Asset Management (Canada) Limited provided strong tailwinds for corporate and provincial debt in 3rd Floor, 885 West Georgia Street the final three quarters of the year. Both the US Federal Reserve Vancouver, BC V6C 3E8 and Bank of Canada cut overnight rates to near zero in the first quarter and have guided markets to not expect a rate hike for You may also contact us using one of these methods to request a the next few years. copy of the Fund’s interim financial report, proxy voting policies and procedures, proxy voting disclosure record or quarterly The Fund generated a strong absolute return in a volatile year portfolio disclosure. and outperformed its benchmark. We took advantage of exceptionally attractive corporate and provincial debt valuations Investment Objective and Strategies and purchased assets at wide spreads to take advantage of The fundamental investment objective of this Fund is to provide dislocations in credit markets. Portfolio turnover was higher regular income and long-term capital growth. than average as we reacted to rapidly changing markets and attractive opportunities. The Fund’s holdings in the HSBC To achieve its objectives, the Fund invests primarily in Mortgage Fund modestly detracted from performance due to investment-grade bonds, debentures, commercial and its lower duration than the benchmark. residential mortgage-backed securities, asset-backed securities and other fixed income securities either issued or guaranteed Recent Developments by the Government of Canada, a province or municipality of We maintain our view that the economic fallout from the Canada, Canadian corporations or Canadian master trusts. pandemic is likely to dissipate as aggressive policy moves continue to support liquidity and economic momentum. Risk Although valuations for many segments of the Canadian fixed The risks of investing in the Fund remain as discussed in the income universe are close to pre-COVID-19 levels, we still see Simplified Prospectus. During the year, there were no material pockets of the credit market that remain attractive. We expect changes to the Fund that affected the overall risk level of policymakers to remain highly accommodative with monetary the Fund. policy well into a recovery, which will help assets with This Fund is suitable for investors who want to earn interest beneficial carry profiles, as investors seek income in a near-zero income and grow their capital, have a medium-term investment interest rate environment. time horizon and have a low tolerance for risk in their returns. We hold an overweight position in provincial debt and a Results of Operations modestly overweight position in high-quality corporate bonds As of December 31, 2020, the Fund's net assets increased by given their attractive valuations compared to government 8.2% to $1,215.3 million from $1,123.5 million at the end of bonds. The yield advantage of the HSBC Mortgage Fund versus 2019. Positive investment performance, partially offset by net the FTSE Canada Universe Bond Index continues to be withdrawals, resulted in an overall increase in net asset value. attractive and we expect the HSBC Mortgage Fund to do particularly well if Government of Canada yields increase. We continue to hold a modest overweight position in duration compared to the benchmark index and an underweight position in longer-term (over 10-year) bonds.

1 HSBC Canadian Bond Pooled Fund

During the period there has been a change in composition to Financial Highlights the Independent Review Committee (the “IRC”). Effective The following tables show selected key financial information March 25, 2020, Ms. Louise Tymocko was appointed to the IRC about the Fund and are intended to help you understand the as a member, replacing Mr. William (Bill) Bakk who left as his Fund’s financial performance for the past five years. This term of office expired. Ms. Lisa Pankratz also took over as Chair information is derived from the Fund’s audited annual financial of the IRC effective March 25, 2020. In addition, effective statements. The information in the following tables is based on February 18, 2021, Ms. Sharon Morrisroe was also appointed to prescribed regulations, and, as a result, is not expected to add the IRC as a member, replacing Mr. Neil de Gelder who left down due to the increase/decrease in net assets from following the expiry of his term in March of 2021. operations being based on average units outstanding during the year and all other numbers being based on actual units Related Party Transactions outstanding at the relevant point in time. We, on behalf of the Fund, or the Fund Manager, may, from time to time, enter into transactions or arrangements with or involving other members of the HSBC Group or other people or HSBC Canadian Bond Pooled Fund – Net Assets (1) companies related or connected to us or the Fund. To proceed per Unit with the transactions, the Fund relies on the positive Year(s) ended December 31 recommendation of the Fund’s Independent Review Committee. A 2020 2019 2018 2017 2016 condition of this positive recommendation is that the transactions Net assets per unit, beginning of are performed in accordance with our policy on Related Party year (2) $12.21 $11.72 $11.97 $11.93 $12.13 Transactions. For more general information on persons related Increase (decrease) from to the Fund and the types of potential transactions, see the operations: Fund’s Simplified Prospectus. Total revenue 0.36 0.38 0.38 0.40 0.42 Total expenses (0.01) (0.01) – (0.01) – The following is a summary of current transactions and Realized gains (losses) 0.39 0.05 (0.01) 0.01 0.07 arrangements with entities that are related to us or the Fund. Unrealized gains (losses) 0.41 0.42 (0.24) 0.01 (0.19) Total increase (decrease) from Manager, Trustee and Investment Advisor operations (2) $1.15 $0.84 $0.13 $0.41 $0.30 We are the manager, trustee and primary investment advisor of Distributions to unitholders: the Fund. As manager, we manage the overall business and From net investment income operations of the Fund. As trustee, we hold legal title to the (excluding dividends) (0.36) (0.37) (0.38) (0.38) (0.42) From dividends – – – – – property of the Fund on your behalf. As primary investment From capital gains (0.21) – – – (0.09) advisor, we provide investment advice and portfolio Return of capital – – – – – management services to the Fund. We receive a fee from the Total annual distributions (2,3) $(0.57) $(0.37) $(0.38) $(0.38) $(0.51) Fund for these services based on assets under management, Net assets per unit at December calculated daily and paid monthly. 31 of year shown (2) $12.81 $12.21 $11.72 $11.97 $11.93

Distribution Services 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 based on the value of the units held in the investor’s account, and additionally, in some cases, on the amount of the initial purchase.

Fund on Fund Investing During the year, the Fund invested in units of other HSBC Mutual Funds, which are also managed by us.

Purchases of Securities Underwritten by a Related Party During the year, the Fund invested in certain securities that were underwritten, in whole or in part, by entities that are a related party to us. To proceed with the transactions, the Fund relied on the approval of the Fund’s Independent Review Committee by way of Standing Instruction. A condition of this approval was that the transactions were performed in accordance with our policy on Purchases of Securities Underwritten by a Related Party.

2 HSBC Canadian Bond Pooled Fund

Ratios and Supplemental Data Management Fees 2020 2019 2018 2017 2016 For the year ended December 31, 2020, the Fund did not pay management fees. You pay us, HSBC Investment Funds Total net asset value (in (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or 000s) (4) $1,215,253 $1,123,544 $1,022,337 $977,991 $790,135 your approved advisor a management fee that is based on the Number of amount you have invested with us or your approved advisor units (which may be subject to certain minimum annual fees). It is outstanding (in negotiated between you and us, HSBC Investment Funds 000s) (4) 94,854 91,991 87,221 81,697 66,245 Management (Canada) Inc. or your approved advisor. Further details can be expense ratio found in the Fund’s Simplified Prospectus. ("MER") (5) 0.06% 0.07% 0.05% 0.05% 0.05% MER before Management fees paid to us were used to pay costs for waivers or managing the investment portfolio, providing investment absorptions (5) 0.06% 0.07% 0.05% 0.05% 0.05% analysis and recommendations, making investment decisions, Trading making brokerage arrangements for the purchase and sale of expense ratio (6) n/a n/a n/a n/a n/a the investment portfolio and providing other services. The Portfolio management fees also funded commission payments and other turnover compensation (collectively “distribution costs”) to sales rate (7) 60.73% 33.21% 43.13% 37.53% 37.19% representatives and registered dealers and brokers, including Net asset value HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, per unit (4) $12.81 $12.21 $11.72 $11.97 $11.93 for units of the Fund bought and held by unitholders. Finally, (1) This information is derived from the Fund’s audited annual financial we used management fees to pay for additional marketing and statements. All balances are stated in International Financial distribution services to the Fund. Reporting Standards (“IFRS”). Under IFRS, the net assets per unit presented in the financial statements is the same as the net asset For the year ended December 31, 2020, approximately 37% of value calculated for fund pricing purposes. the total management fees paid to us for all HSBC Pooled (2) Net assets per unit and distributions per unit are based on the Funds were used to fund distribution costs. actual number of units outstanding at the relevant time. The increase/decrease in net assets from operations per unit is based on Past Performance the weighted average number of units outstanding over the The performance information shown assumes that all fiscal year. distributions made by the Fund in the years 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 management fees, reinvestment plan by providing written notice to us. sales, redemption, distribution, optional charges or expenses (4) This information is provided as at December 31 of the year shown. you may be charged outside of the Fund or the effect of any (5) MER is based on total expenses (including a portion of the income tax you may have to pay as a result of your investment operating expenses of the underlying funds in proportion to the in the Fund that would have reduced returns or performance. Fund’s holdings in the other funds and excluding distributions, commissions and other portfolio transaction costs) for the stated The Fund’s past performance does not necessarily indicate how year and is expressed as an annualized percentage of daily average it will perform in the future. net asset value during the year. The MER may vary from one mutual fund to another. Please see the prospectus, Fund Facts and Year-by-Year Returns other disclosure documents for further details. Years ended December 31 (6) The trading expense ratio represents total commissions and other The following bar chart shows the Fund’s annual performance portfolio transaction costs expressed as an annualized percentage for each of the years shown, and illustrates how the Fund’s of daily average net asset value during the year. performance changed from year to year. In percentage terms, (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s the bar chart shows how much an investment made on the first portfolio advisor manages its portfolio investments. A portfolio day of each financial year would have grown or decreased by turnover rate of 100% is equivalent to the Fund buying and selling the last day of each financial year. all of the securities in its portfolio once in the course of the year. The higher the Fund’s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. 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 weighted market value of the portfolio securities, excluding short- term securities.

3 HSBC Canadian Bond Pooled Fund

Annual Returns Top 25 Holdings

15% Percentage of NAV

9.7% HSBC Mortgage Fund - Institutional Series 9.18% 10% 8.7% 8.4% 7.4% Province of Ontario, 2.90%, 06/02/2049 3.95% 5.1% Province of British Columbia, 2.80%, 06/18/2048 3.64% 5% 3.6% 3.1% 2.5% Province of Ontario, 2.90%, 06/02/2028 3.00% 1.1% Government of Canada, 4.01%, 12/01/2036 2.80% 0% Province of New Brunswick, 3.55%, 06/03/2043 2.64% -0.1% Canada Housing Trust No. 1, 1.90%, 09/15/2026 2.35% Government of Canada, 2.00%, 12/01/2051 2.35% -5% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Province of Alberta, 3.90%, 12/01/2033 1.67% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Canada Housing Trust No. 1, 1.95%, 12/15/2025 1.62% Province of Saskatchewan, 5.00%, 03/05/2037 1.53% Annual Compound Returns City of Montreal, 3.00%, 09/01/2027 1.45% Year ended December 31, 2020 Province of Ontario, 2.60%, 06/02/2027 1.36% The following table shows the Fund’s historical annual Province of Newfoundland and Labrador, 2.65%, 10/17/2050 1.35% Canada Housing Trust No. 1, 0.95%, 06/15/2025 1.34% compound total returns for the years indicated, compared with Granite REIT Holdings LP, 3.06%, 06/04/2027 1.34% the benchmark index, the FTSE Canada Universe Bond Index, Province of Manitoba, 2.60%, 06/02/2027 1.30% over the same period. This index is a broad measure of the total Province of Ontario, 4.70%, 06/02/2037 1.22% return for the Canadian bond market, covering marketable Province of Manitoba, 4.10%, 03/05/2041 1.21% Canadian bonds with a term to maturity of more than one year. BHP Billiton Finance Ltd., 3.23%, 05/15/2023 1.14%

City of Ottawa, 3.25%, 11/10/2047 1.12% 1 Year 3 Year 5 Year 10 Year Peel Regional Municipality, 5.10%, 06/29/2040 1.12% HSBC Canadian Bond Pooled Fund 9.65% 5.98% 4.81% 4.91% Toronto-Dominion Bank, 3.11%, 04/22/2030 1.10% FTSE Canada Universe Bond Index 8.68% 5.61% 4.19% 4.49% Province of Nova Scotia, 3.15%, 12/01/2051 1.02% (1) Due to the fact that several benchmark indices are only available on Province of Nova Scotia, 2.00%, 09/01/2030 0.96% a monthly basis, the performance data for the HSBC Funds and the Total of Top 25 Holdings 51.76% benchmark indices are calculated using values from the first month- end date each Fund was in operation. (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations section of this report. Summary of Investment Portfolio As at December 31, 2020

Asset Mix Percentage of NAV

Government Bonds 50.95% Corporate Bonds 38.53% Investment Funds 9.67% Cash & Equivalents 0.85% Total 100.00%

4 HSBC Canadian Bond Pooled Fund

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 get a copy of these documents at no cost by calling us 3rd 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 HSBC Global High Yield Bond Pooled Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Global High Yield Bond Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Results of Operations Fund; we, us and our refer to HSBC Global Asset Management As of December 31, 2020, the Fund's net assets decreased by (Canada) Limited; and the Fund refers to the HSBC Global High 0.6% to $313.2 million from $315.1 million at the end of 2019. Yield Bond Pooled Fund. Net withdrawals, partially offset by positive investment We are the manager, trustee and primary investment advisor of performance, resulted in an overall decrease in net asset value. the Fund. We have hired HSBC Global Asset Management Investment Performance (USA) Inc. and HSBC Global Asset Management (France) as The HSBC Global High Yield Bond Pooled Fund rose 5.90% for sub-advisors to provide portfolio management and investment the 12 months ending December 31, 2020, while the advisory services to the Fund. For an explanation of the benchmark ICE Bank of America BB-B Global High Yield Bond relationship between us and the sub-advisors, see the section Constrained Total Return Index (hedged C$) rose 5.10% over Selection of Sub-Advisors in the Fund’s Simplified Prospectus. the same period. The Fund’s returns are after the deduction of fees and expenses, while the benchmark’s returns do not Introduction include any costs of investing. This Annual Management Report of Fund Performance contains financial highlights but does not contain the complete annual Credit markets started the year with a continuation of the 2019 financial statements of the Fund. You may obtain a copy of the year-end rally and then turned volatile in late February as annual financial statements at your request, at no cost, by investors reacted to the coronavirus and its impact on the calling us toll-free at 1-888-390-3333, by visiting our website at global economy. Markets recovered over the remainder of the year, which saw credit spreads moving considerably tighter as www.assetmanagement.hsbc.ca, by visiting the SEDAR equities rallied to finish the year at new highs. website at www.sedar.com or by writing to us at: US Treasury yields fell early in 2020 as equities sold off amid HSBC Global Asset Management (Canada) Limited the COVID-19 pandemic. Having settled down for the second 3rd Floor, 885 West Georgia Street half of the year, longer-dated yields began to rise, steepening Vancouver, BC V6C 3E8 the curve into 2021. In 2020, two-, five-, 10- and 30-year yields You may also contact us using one of these methods to request a fell by 1.45%, 1.33%, 1.00% and 0.74% to finish at 0.12%, copy of the Fund’s interim financial report, proxy voting policies 0.36%, 0.91% and 1.64%, respectively. and procedures, proxy voting disclosure record or quarterly The Fund outperformed its benchmark. Allocation effects were portfolio disclosure. marginally positive overall as the negative contribution from an underweight position to emerging market bonds (which Investment Objective and Strategies outperformed other regions) was offset by an underweight The fundamental investment objective of this Fund is to provide position to euro bonds (which underperformed other regions). income and long-term capital growth. Issue selection added to relative performance, driven by strong To achieve its objectives, the Fund invests primarily in a selection effects in the US-dollar segment of the portfolio. diversified portfolio of non-investment-grade-rated fixed income Recent Developments securities and other similar securities from around the world, In 2020, the Fund was overweight in US-dollar bonds and typically denominated in US dollars or other foreign currency. A underweight in emerging market and euro bonds, as US bonds portion of the Fund may be in the form of cash or were more attractive from a relative valuation perspective. cash equivalents. In credit quality, the Fund is one notch below the reference Risk index on an average rating basis. Within this rating, the Fund is The risks of investing in the Fund remain as discussed in the overweight in BBBs, Bs and CCCs and underweight in BBs. The Simplified Prospectus. During the year, there were no material BBB exposure largely reflects a more cautious positioning in changes to the Fund that affected the overall risk level of euro bonds. This is balanced with a preference for US-dollar the Fund. bonds for selective CCC credits versus BB rated bonds. The CCC exposure is largely in more defensive industries. This Fund is suitable for investors who want to earn interest income and achieve modest long-term capital growth, have a By sector, the Fund is overweight in industrials and technology medium- to long-term investment time horizon and have a low and underweight in energy and financials. The underweight to medium tolerance for risk in their returns. position in financials is due to underweight positions in US and emerging market bonds, although the Fund has an overweight position in euro financials. Within energy, the Fund is underweight in exploration and production companies and overweight in midstream companies.

1 HSBC Global High Yield Bond Pooled Fund

During the period there has been a change in composition to Distribution Services the Independent Review Committee (the “IRC”). Effective The Fund is distributed through us and HSBC Investment Funds March 25, 2020, Ms. Louise Tymocko was appointed to the IRC (Canada) Inc. (our wholly owned subsidiary). We may pay as a member, replacing Mr. William (Bill) Bakk who left as his distribution and servicing fees to our related party distributor term of office expired. Ms. Lisa Pankratz also took over as Chair based on the value of the units held in the investor’s account, of the IRC effective March 25, 2020. In addition, effective and additionally, in some cases, on the amount of the February 18, 2021, Ms. Sharon Morrisroe was also appointed to initial purchase. the IRC as a member, replacing Mr. Neil de Gelder who left following the expiry of his term in March of 2021. Purchases of Securities Underwritten by a Related Party During the year, the Fund invested in certain securities that Related Party Transactions were underwritten, in whole or in part, by entities that are a We, on behalf of the Fund, or the Fund Manager, may, from related party to us. To proceed with the transactions, the Fund time to time, enter into transactions or arrangements with or relied on the approval of the Fund’s Independent Review involving other members of the HSBC Group or other people or Committee by way of Standing Instruction. A condition of this companies related or connected to us or the Fund. To proceed approval was that the transactions were performed in with the transactions, the Fund relies on the positive accordance with our policy on Purchases of Securities recommendation of the Fund’s Independent Review Committee. A Underwritten by a Related Party. condition of this positive recommendation is that the transactions are performed in accordance with our policy on Related Party Financial Highlights Transactions. For more general information on persons related The following tables show selected key financial information to the Fund and the types of potential transactions, see the about the Fund and are intended to help you understand the Fund’s Simplified Prospectus. Fund’s financial performance for the past five years. This information is derived from the Fund’s audited annual financial The following is a summary of current transactions and statements. The information in the following tables is based on arrangements with entities that are related to us or the Fund. prescribed regulations, and, as a result, is not expected to add down due to the increase/decrease in net assets from Manager, Trustee and Investment Advisor operations being based on average units outstanding during the We are the manager, trustee and primary investment advisor of year and all other numbers being based on actual units the Fund. As manager, we manage the overall business and 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 advisor, we provide investment advice and portfolio HSBC Global High Yield Bond Pooled Fund – management services to the Fund. We receive a fee from the Net Assets per Unit(1) Fund for these services based on assets under management, Year(s) ended December 31 calculated daily and paid monthly. 2020 2019 2018 2017 2016 We have entered into a sub-advisory agreement with HSBC Net assets per unit, beginning of Global Asset Management (USA) Inc. (an affiliate) and HSBC year (2) $8.09 $7.55 $8.35 $8.23 $7.79 Global Asset Management (France) (an affiliate), under which Increase (decrease) from operations: Total revenue 0.44 0.45 0.48 0.47 0.48 HSBC Global Asset Management (USA) Inc. and HSBC Global Total expenses (0.01) (0.01) (0.01) (0.01) (0.01) Asset Management (France) provide investment advice and Realized gains (losses) (0.02) 0.18 (0.40) 0.34 0.06 portfolio management services to the Fund. We pay HSBC Unrealized gains (losses) 0.01 0.33 (0.39) (0.22) 0.41 Global Asset Management (USA) Inc. and HSBC Global Asset Total increase (decrease) from Management (France) an investment advisory fee based on operations (2) $0.42 $0.95 $(0.32) $0.58 $0.94 assets under management, calculated daily and paid quarterly. Distributions to unitholders: To proceed with this transaction, the Fund relied on the positive From net investment income (excluding dividends) (0.41) (0.43) (0.48) (0.46) (0.49) recommendation of the Fund’s Independent Review From dividends – – – – – Committee. For more information on our ability to hire sub- From capital gains – – – – – advisors, see the section Organization and management of the Return of capital – – – – – Funds in the Fund’s Simplified Prospectus. Total annual distributions (2,3) $(0.41) $(0.43) $(0.48) $(0.46) $(0.49) Net assets per unit at December 31 of year shown (2) $8.11 $8.09 $7.55 $8.35 $8.23

2 HSBC Global High Yield Bond Pooled Fund

Ratios and Supplemental Data Management fees paid to us were used to pay costs for managing the investment portfolio, providing investment 2020 2019 2018 2017 2016 analysis and recommendations, making investment decisions, Total net asset value making brokerage arrangements for the purchase and sale of (in 000s) (4) $313,160 $315,061 $242,435 $300,257 $271,812 Number of units the investment portfolio and providing other services. The outstanding (in management fees also funded commission payments and other 000s) (4) 38,627 38,946 32,118 35,972 33,044 compensation (collectively “distribution costs”) to sales Management representatives and registered dealers and brokers, including expense ratio HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, ("MER") (5) 0.11% 0.14% 0.08% 0.09% 0.07% for units of the Fund bought and held by unitholders. Finally, MER before waivers we used management fees to pay for additional marketing and or absorptions (5) 0.11% 0.14% 0.08% 0.09% 0.07% distribution services to the Fund. Trading expense ratio (6) n/a n/a n/a n/a n/a For the year ended December 31, 2020, approximately 37% of Portfolio turnover the total management fees paid to us for all HSBC Pooled rate (7) 78.79% 64.24% 47.03% 51.31% 46.13% Funds were used to fund distribution costs. Net asset value per unit (4) $8.11 $8.09 $7.55 $8.35 $8.23 Past Performance (1) This information is derived from the Fund’s audited annual financial The performance information shown assumes that all statements. All balances are stated in International Financial distributions made by the Fund in the years shown were Reporting Standards (“IFRS”). Under IFRS, the net assets per unit reinvested in additional securities of the Fund. The performance presented in the financial statements is the same as the net asset information does not take into account management fees, value calculated for fund pricing purposes. sales, redemption, distribution, optional charges or expenses (2) Net assets per unit and distributions per unit are based on the you may be charged outside of the Fund or the effect of any actual number of units outstanding at the relevant time. The income tax you may have to pay as a result of your investment increase/decrease in net assets from operations per unit is based on the weighted average number of units outstanding over the in the Fund that would have reduced returns or performance. fiscal year. The Fund’s past performance does not necessarily indicate how it will perform in the future. (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. Year-by-Year Returns Years ended December 31 (4) This information is provided as at December 31 of the year shown. The following bar chart shows the Fund’s annual performance (5) MER is based on total expenses (excluding distributions, for each of the years shown, and illustrates how the Fund’s commissions and other portfolio transaction costs) for the stated performance changed from year to year. In percentage terms, year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one the bar chart shows how much an investment made on the first mutual fund to another. day of each financial year would have grown or decreased by (6) The trading expense ratio represents total commissions and other the last day of each financial year. portfolio transaction costs expressed as an annualized percentage Annual Returns of daily average net asset value during the year. (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s 20% portfolio advisor manages its portfolio investments. A portfolio 15.2% 15% 13.1% turnover rate of 100% is equivalent to the Fund buying and selling 12.1% all of the securities in its portfolio once in the course of the year. 10% 8.1% 7.2% The higher the Fund’s portfolio turnover rate in a year, the greater 6.0% 5.9% 4.7% the trading costs payable by the Fund in the year, and the greater 5% the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate 0% and the performance of the Fund. The rate is calculated based on -5% -2.6% the lesser of purchases or sales of securities divided by the average -3.9% weighted market value of the portfolio securities, excluding short- -10% term securities. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Management Fees For the year ended December 31, 2020, the Fund did not pay Annual Compound Returns management fees. You pay us, HSBC Investment Funds Year ended December 31, 2020 (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or The following table shows the Fund’s historical annual your approved advisor a management fee that is based on the compound total returns for the years indicated, compared with amount you have invested with us or your approved advisor the broad market index, ICE Bank of America BB-B Global High (which may be subject to certain minimum annual fees). It is Yield Bond Constrained TR Index (US$), and this same index negotiated between you and us, HSBC Investment Funds converted to Canadian dollars, over the same period. This index (Canada) Inc. or your approved advisor. Further details can be contains all securities in the ICE Bank of America Global High found in the Fund’s Simplified Prospectus. Yield Index rated BB1 through B3, based on an average of

3 HSBC Global High Yield Bond Pooled Fund

Moody’s, S&P and Fitch, but caps issuer exposure at 2%. The Geographic Mix broad market index converted to Canadian dollars is used as Percentage proxy, as the Fund’s benchmark, ICE Bank of America BB-B of NAV Global High Yield Bond Constrained Total Return Index (hedged Italy 0.33% C$), does not have a full 10-year performance history. United Arab Emirates 0.32% 1 Year 3 Year 5 Year 10 Year Denmark 0.28% Finland 0.27% HSBC Global High Yield Bond India 0.26% Pooled Fund 5.90% 4.80% 6.69% 6.41% Switzerland 0.18% ICE BofA BB-B Global High Yield Bond Morocco 0.16% Constrained TR Index (US$) 7.99% 5.99% 8.14% 6.61% Azerbaijan 0.14% ICE BofA BB-B Global High Yield Bond Paraguay 0.14% Constrained TR Index (C$) 6.10% 6.58% 6.29% 9.29% Portugal 0.11% (1) Due to the fact that several benchmark indices are only available on Chile 0.10% a monthly basis, the performance data for the HSBC Funds and the Liberia 0.09% benchmark indices are calculated using values from the first month- end date each Fund was in operation. South Africa 0.09% British Virgin Islands 0.08% (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations Isle of Man 0.08% section of this report. Japan 0.05% Lithuania 0.05% Summary of Investment Portfolio Romania 0.05% Cash & Equivalents 4.44% As at December 31, 2020 Total 100.00%

Asset Mix Percentage Top 25 Holdings of NAV Percentage of NAV Corporate Bonds 95.56% Cash & Equivalents 4.44% Ford Motor Co., 7.45%, 07/16/2031 1.51% Total 100.00% Colt Merger Sub Inc., 8.13%, 07/01/2027 1.09%

Select Medical Corp., 6.25%, 08/15/2026 0.94% Mileage Plus Holdings LLC / Mileage Plus Intellectual, 6.50%, Geographic Mix 06/20/2027 0.91% Percentage eG Global Finance PLC, 6.25%, 10/30/2025 0.90% of NAV Mednax Inc., 6.25%, 01/15/2027 0.90% United States 56.51% LifePoint Health, Inc., 9.75%, 12/01/2026 0.84% Luxembourg 5.85% Clearwater Paper Corp., 5.38%, 02/01/2025 0.80% Netherlands 5.04% Embarq Corp., 8.00%, 06/01/2036 0.79% Cayman Islands 4.57% FMG Resources (August 2006) Pty Ltd., 4.50%, 09/15/2027 0.79% Canada 3.42% Univision Communications Inc., 6.63%, 06/01/2027 0.74% France 3.23% American Axle & Manufacturing Inc., 6.88%, 07/01/2028 0.71% United Kingdom 2.25% Global Aircraft Leasing Co., Ltd., 6.50%, 09/15/2024 0.71% Bermuda 1.84% Jacobs Entertainment Inc., 7.88%, 02/01/2024 0.71% Mexico 1.50% Greif Inc., 6.50%, 03/01/2027 0.69% Germany 1.49% Navient Corp., 6.75%, 06/15/2026 0.69% Brazil 1.09% DISH DBS Corp., 7.38%, 07/01/2028 0.68% Australia 0.95% BWAY Holding Co., 5.50%, 04/15/2024 0.67% Ireland 0.69% Park Aerospace Holdings Ltd., 5.50%, 02/15/2024 0.67% Bahamas 0.60% Refinitiv US Holdings Inc., 8.25%, 11/15/2026 0.66% Mauritius 0.59% Talen Energy Supply LLC, 7.63%, 06/01/2028 0.65% Sweden 0.58% Tempo Acquisition LLC / Tempo Acquisition Finance Corp., Singapore 0.52% 6.75%, 06/01/2025 0.65% Turkey 0.51% Warrior Met Coal Inc., 8.00%, 11/01/2024 0.65% Austria 0.50% Altice USA, 5.88%, 09/15/2022 0.64% Belgium 0.36% Cleveland-Cliffs Inc., 9.88%, 10/17/2025 0.64% Peru 0.35% Total of Top 25 Holdings 19.63% Spain 0.34%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

4 HSBC Global High Yield Bond Pooled Fund

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 get a copy of these documents at no cost by calling us 3rd 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

HSBC Global Inflation Linked Bond Pooled Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Global Inflation Linked Bond Pooled Fund

You may also contact us using one of these methods to request a Recent Developments copy of the Fund’s interim financial report, proxy voting policies After several months of above-trend gains in the US, price and procedures, proxy voting disclosure record or quarterly pressures are reversing. In Europe, a wave of recent national lockdowns is likely to result in a double-dip recession in Q4 and portfolio disclosure. the European Central Bank has indicated it expects to increase Investment Objective and Strategies policy support. The UK faces additional Brexit-related concerns, The fundamental investment objective of this Fund is to although the Bank of England boosted its quantitative easing generate income. program by GBP150 billion in November. While we expect that the COVID-19 crisis will have a To achieve its objectives, the Fund will invest primarily in real disinflationary impact in the short term, inflation is expected to return bonds and inflation-linked bonds issued by governments bounce back as those negative base effects wash out of the and corporations of countries around the world. index. However, inflation will remain below pre-crisis levels. Risk Therefore, at those levels, inflation breakevens embed value, especially in the US and Canada. The risks of investing in the Fund remain as discussed in the Simplified Prospectus. During the year, there were no material As the vaccine rollout accelerates, cyclical growth rebounds changes to the Fund that affected the overall risk level of and stronger than initially expected US fiscal stimulus could be the Fund. deployed, the portfolio management team expects rates to rise moderately. Inflation breakevens should continue to recover This Fund is suitable for investors seeking a flow of interest where there is still some value, such as in Canada. The portfolio income that is linked to inflation. Investors in this Fund should management team plans to be underweight in duration in real have a medium-term investment time horizon and a low to rates and be more tactical on breakevens, while focusing first medium tolerance for risk in their returns. on relative value, such as Canada versus the UK. Results of Operations During the period there has been a change in composition to As of December 31, 2020, the Fund's net assets decreased by the Independent Review Committee (the “IRC”). Effective 26.0% to $78.0 million from $105.4 million at the end of 2019. March 25, 2020, Ms. Louise Tymocko was appointed to the IRC Net withdrawals, partially offset by positive investment as a member, replacing Mr. William (Bill) Bakk who left as his performance, resulted in an overall decrease in net asset value. term of office expired. Ms. Lisa Pankratz also took over as Chair of the IRC effective March 25, 2020. In addition, effective

1 HSBC Global Inflation Linked Bond Pooled Fund

February 18, 2021, Ms. Sharon Morrisroe was also appointed to operations being based on average units outstanding during the the IRC as a member, replacing Mr. Neil de Gelder who left year and all other numbers being based on actual units following the expiry of his term in March of 2021. outstanding at the relevant point in time.

Related Party Transactions We, on behalf of the Fund, or the Fund Manager, may, from HSBC Global Inflation Linked Bond Pooled Fund (1) time to time, enter into transactions or arrangements with or – Net Assets per Unit involving other members of the HSBC Group or other people or Year(s) ended December 31 companies related or connected to us or the Fund. To proceed 2020 2019 2018 2017 2016 with the transactions, the Fund relies on the positive Net assets per unit, beginning of recommendation of the Fund’s Independent Review Committee. A year (2) $11.90 $11.30 $11.61 $11.57 $10.81 condition of this positive recommendation is that the transactions Increase (decrease) from are performed in accordance with our policy on Related Party operations: Transactions. For more general information on persons related Total revenue 0.13 0.12 0.13 0.11 0.10 to the Fund and the types of potential transactions, see the Total expenses (0.03) (0.02) (0.01) (0.02) (0.01) Fund’s Simplified Prospectus. Realized gains (losses) 0.70 0.43 0.60 (0.09) 0.34 Unrealized gains (losses) (0.28) 0.27 (0.76) 0.27 0.57 The following is a summary of current transactions and Total increase (decrease) from arrangements with entities that are related to us or the Fund. operations (2) $0.52 $0.80 $(0.04) $0.27 $1.00 Distributions to unitholders: Manager, Trustee and Investment Advisor From net investment income We are the manager, trustee and primary investment advisor of (excluding dividends) (0.09) (0.15) (0.26) (0.22) (0.23) the Fund. As manager, we manage the overall business and From dividends – – – – – From capital gains – – – – – operations of the Fund. As trustee, we hold legal title to the Return of capital – – – – – property of the Fund on your behalf. As primary investment Total annual distributions (2,3) $(0.09) $(0.15) $(0.26) $(0.22) $(0.23) advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Net assets per unit at December 31 of year shown (2) $12.65 $11.90 $11.30 $11.61 $11.57 Fund for these services based on assets under management, calculated daily and paid monthly. We have entered into a sub-advisory agreement with HSBC Ratios and Supplemental Data Global Asset Management (UK) Limited, an affiliate, under 2020 2019 2018 2017 2016 which HSBC Global Asset Management (UK) Limited provides Total net asset value investment advice and portfolio management services to the (in 000s) (4) $78,026 $105,414 $141,902 $160,408 $131,753 Fund. We pay HSBC Global Asset Management (UK) Limited a Number of units outstanding (in fee based on assets under management, calculated daily and 000s) (4) 6,170 8,856 12,553 13,816 11,387 paid quarterly. To proceed with this transaction, the Fund relied Management expense on the positive recommendation of the Fund’s Independent ratio ("MER") (5) 0.22% 0.18% 0.11% 0.16% 0.11% Review Committee. For more information on our ability to hire MER before waivers sub-advisors, see the section Organization and management of or absorptions (5) 0.22% 0.18% 0.11% 0.16% 0.11% Trading expense the Funds in the Fund’s Simplified Prospectus. ratio (6) n/a n/a n/a n/a n/a Portfolio turnover Distribution Services rate (7) 75.76% 52.80% 45.63% 7.85% 45.35% The Fund is distributed through us and HSBC Investment Funds Net asset value per (Canada) Inc. (our wholly owned subsidiary). We may pay unit (4) $12.65 $11.90 $11.30 $11.61 $11.57 distribution and servicing fees to our related party distributor (1) This information is derived from the Fund’s audited annual financial based on the value of the units held in the investor’s account, statements. All balances are stated in International Financial and additionally, in some cases, on the amount of the initial purchase. Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund’s financial performance for the past five years. This information is derived from the Fund’s audited annual financial statements. The information in the following tables is based on prescribed regulations, and, as a result, is not expected to add down due to the increase/decrease in net assets from

2 HSBC Global Inflation Linked Bond Pooled Fund

-10% Management Fees Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 For the year ended December 31, 2020, the Fund did not pay 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 management fees. You pay us, HSBC Investment Funds (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or Annual Compound Returns your approved advisor a management fee that is based on the Year ended December 31, 2020 amount you have invested with us or your approved advisor The following table shows the Fund’s historical annual (which may be subject to certain minimum annual fees). It is compound total returns for the years indicated, compared with negotiated between you and us, HSBC Investment Funds the broad market index, the Bloomberg Barclays World (Canada) Inc. or your approved advisor. Further details can be Government Inflation-Linked All Maturities All Markets Bond found in the Fund’s Simplified Prospectus. Index (hedged C$), over the same period. The Bloomberg Barclays World Government Inflation-Linked All Maturities All Management fees paid to us were used to pay costs for Markets Bond Index (hedged C$) measures the performance of managing the investment portfolio, providing investment investment grade, government inflation-linked debt and is analysis and recommendations, making investment decisions, designed to include only those markets in which a global making brokerage arrangements for the purchase and sale of government-linked bond fund is likely and able to invest. the investment portfolio and providing other services. The management fees also funded commission payments and other The current benchmark, ICE BofA Global Inflation-Linked compensation (collectively “distribution costs”) to sales Government Alternative Weighting Scheme Index (hedged C$) representatives and registered dealers and brokers, including is a custom index and does not have a full 10-year HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, performance history. 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. For the year ended December 31, 2020, approximately 37% of the total management fees paid to us for all HSBC Pooled Funds were used to fund distribution costs.

3 HSBC Global Inflation Linked Bond Pooled Fund

1 Year 3 Year 5 Year 10 Year Top 25 Holdings HSBC Global Inflation Linked Bond Percentage Pooled Fund 7.00% 4.35% 4.88% 4.73% of NAV Bloomberg Barclays World Government Canadian Government Real Return Bond, 6.02%, 12/01/2031 6.80% Inflation-Linked Bond All Maturities All United States Treasury Inflation Indexed Bond, 0.42%, Markets Bond Index (hedged C$) 6.83% 4.45% 5.23% 5.00% 07/15/2023 5.40% (1) Due to the fact that several benchmark indices are only available on United States Treasury Inflation Indexed Bond, 0.41%, a monthly basis, the performance data for the HSBC Funds and the 07/15/2025 4.92% benchmark indices are calculated using values from the first month- United States Treasury Inflation Indexed Bond, 2.62%, end date each Fund was in operation. 01/15/2026 3.56% (2) For investment commentary and relative performance of the Fund Japanese Government CPI Linked Bond, 0.20%, 03/10/2030 3.20% compared to its benchmark, please refer to the Results of Operations Japanese Government CPI Linked Bond, 0.10%, 03/10/2028 3.19% section of this report. United Kingdom Gilt Inflation Linked, 1.63%, 10/22/2028 3.13% Summary of Investment Portfolio United States Treasury Inflation Indexed Bond, 0.13%, As at December 31, 2020 01/15/2030 2.95% United States Treasury Inflation Indexed Bond, 3.07%, 01/15/2027 2.62% Asset Mix United States Treasury Inflation Indexed Bond, 0.53%, Percentage 01/15/2028 2.54% of NAV Sweden Inflation Linked Bond, 4.60%, 12/01/2028 2.49% United Kingdom Gilt Inflation Linked, 0.87%, 11/22/2042 2.24% Government Bonds 98.20% Italy Buoni Poliennali Del Tesoro, 0.40%, 05/15/2030 2.12% Cash & Equivalents 1.80% Spain Government Inflation Linked Bond, 1.88%, 11/30/2024 2.12% Total 100.00% Italy Buoni Poliennali Del Tesoro, 3.10%, 09/15/2023 2.09% United States Treasury Inflation Indexed Bond, 4.95%, Geographic Mix 04/15/2032 1.93% United Kingdom Gilt Inflation Linked, 0.15%, 03/22/2029 1.88% Percentage Italy Buoni Poliennali Del Tesoro, 2.89%, 09/15/2041 1.84% of NAV Deutsche Bundesrepublik Inflation Linked Bond, 0.11%, United States 30.92% 04/15/2026 1.82% United Kingdom 16.58% France Government Bond OAT, 2.39%, 07/25/2023 1.72% Canada 11.33% Canadian Government Real Return Bond, 4.01%, 12/01/2036 1.62% Italy 8.94% Australia Government Bond, 1.35%, 08/21/2040 1.60% Japan 6.39% Deutsche Bundesrepublik Inflation Linked Bond, 0.11%, Spain 5.75% 04/15/2023 1.55% France 4.79% Canadian Government Real Return Bond, 1.39%, 12/01/2047 1.54% Australia 4.75% Australia Government Bond, 3.74%, 09/20/2025 1.52% Germany 4.41% Total of Top 25 Holdings 66.39% Sweden 2.93% New Zealand 1.41% Cash & Equivalents 1.80% Total 100.00%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

4 HSBC Global Inflation Linked Bond Pooled Fund

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 get a copy of these documents at no cost by calling us 3rd 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

HSBC Emerging Markets Debt Pooled Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Emerging Markets Debt Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Results of Operations Fund; we, us and our refer to HSBC Global Asset Management As of December 31, 2020, the Fund's net assets decreased by (Canada) Limited; and the Fund refers to the HSBC Emerging 14.0% to $257.2 million from $298.9 million at the end of 2019. Markets Debt Pooled Fund. Net withdrawals, partially offset by positive investment We are the manager, trustee and primary investment advisor of performance, resulted in an overall decrease in net asset value. the Fund. Investment Performance Introduction The HSBC Emerging Markets Debt Pooled Fund rose 3.28% for This Annual Management Report of Fund Performance contains the 12 months ending December 31, 2020, while the financial highlights but does not contain the complete annual benchmark rose 2.66% over the same period. The benchmark is financial statements of the Fund. You may obtain a copy of the a weighted composite consisting of the JP Morgan Emerging annual financial statements at your request, at no cost, by Market Bond Index – Global Diversified (hedged C$) (50%), JP calling us toll-free at 1-888-390-3333, by visiting our website at Morgan Emerging Local Markets Index Plus (C$) (25%) and JP www.assetmanagement.hsbc.ca, by visiting the SEDAR Morgan Government Bond Index – Emerging Markets Global website at www.sedar.com or by writing to us at: Diversified Unhedged (C$) (25%). The Fund’s returns are after the deduction of fees and expenses, while the benchmark’s HSBC Global Asset Management (Canada) Limited returns do not include any costs of investing. 3rd Floor, 885 West Georgia Street Vancouver, BC V6C 3E8 Emerging market debt assets experienced a sharp downturn in March as COVID-19 rapidly spread across regions and the You may also contact us using one of these methods to request a outlook for the global economy deteriorated significantly. These copy of the Fund’s interim financial report, proxy voting policies assets then posted a strong rally in the second half of 2020 as and procedures, proxy voting disclosure record or quarterly global risk sentiment improved given the reopening of portfolio disclosure. economies, continued supportive global fiscal and monetary policy measures to combat the crisis, weakness in the US Investment Objective and Strategies dollar, and a rebound in oil prices. The fundamental investment objective of this Fund is to provide income and long-term capital growth. Gross of fees, the Fund outperformed the benchmark, driven by its hard currency exposure. Overweight positions to quasi- To achieve its objectives, the Fund, directly or indirectly, invests sovereign rather than sovereign bonds contributed to primarily in a diversified portfolio of investment-grade and non performance, and off-benchmark exposure to corporates was investment-grade debt instruments issued by governments in also a positive contributor in the risk rally that followed the emerging market countries and corporations or other issuers market sell-off. either based in or that have a significant business or investment link with emerging market countries. Such debt instruments Within local debt exposure, an overweight position to local rate may be denominated in US dollars or other foreign currencies, duration and tactical overweight positions to the Mexican peso including the local currency of emerging market countries. The and Chilean peso were the largest contributors to performance. Fund may also use derivatives to gain or reduce its exposure to Detractors from performance were an overweight position to fixed income securities or emerging market currencies or for Sri Lanka hard currency debt and an overweight position to the hedging purposes. Brazilian real. Risk Recent Developments The risks of investing in the Fund remain as discussed in the In hard currency, valuations now stand only slightly cheaper Simplified Prospectus. During the year, there were no material than their historical averages. The portfolio management team changes to the Fund that affected the overall risk level of expects interest rates to remain relatively anchored by global the Fund. central bank policies and the ongoing economic impact of the This Fund is suitable for investors who want to earn interest COVID-19 pandemic, and for gains to come entirely from income and achieve modest long-term capital growth, have a spreads going forward. long-term investment time horizon and have a low to medium Within the investment-grade space, there is value in state- tolerance for risk in their returns. owned companies from non-oil-exporting regions such as Eastern Europe and Asia. In the high-yield sector, the portfolio management team sees pockets of value in Latin America and

1 HSBC Emerging Markets Debt Pooled Fund

Africa. The debt crisis in emerging markets means more Fund on Fund Investing defaults are likely ahead in 2021, and therefore active During the year, the Fund invested in units of the HSBC management can potentially add a lot of value through deep Emerging Markets Debt Fund, which is also managed by us. country research and analysis. Financial Highlights The portfolio management team believes emerging market local The following tables show selected key financial information currency debt should benefit from the high real interest rates in about the Fund and are intended to help you understand the many countries (which may decline via rate cuts and emerging Fund’s financial performance for the past five years. This market central bank quantitative easing) and from relatively information is derived from the Fund’s audited annual financial attractive currencies that should gain perhaps 5% on average, statements. The information in the following tables is based on as the US dollar experiences ongoing cyclical decline into 2021. prescribed regulations, and, as a result, is not expected to add During the period there has been a change in composition to down due to the increase/decrease in net assets from the Independent Review Committee (the “IRC”). Effective operations being based on average units outstanding during the March 25, 2020, Ms. Louise Tymocko was appointed to the IRC year and all other numbers being based on actual units as a member, replacing Mr. William (Bill) Bakk who left as his outstanding at the relevant point in time. term of office expired. Ms. Lisa Pankratz also took over as Chair of the IRC effective March 25, 2020. In addition, effective HSBC Emerging Markets Debt Pooled Fund – February 18, 2021, Ms. Sharon Morrisroe was also appointed to Net Assets per Unit(1) the IRC as a member, replacing Mr. Neil de Gelder who left Year(s) ended December 31 following the expiry of his term in March of 2021. 2020 2019 2018 2017 2016 Related Party Transactions Net assets per unit, beginning of We, on behalf of the Fund, or the Fund Manager, may, from year (2) $9.87 $9.59 $10.21 $9.95 $9.89 time to time, enter into transactions or arrangements with or Increase (decrease) from operations: Total revenue 0.42 0.48 0.48 0.43 0.45 involving other members of the HSBC Group or other people or Total expenses (0.01) (0.01) – – – companies related or connected to us or the Fund. To proceed Realized gains (losses) (0.11) (0.06) (0.04) – (0.01) with the transactions, the Fund relies on the positive Unrealized gains (losses) (0.04) 0.36 (0.60) 0.22 0.08 recommendation of the Fund’s Independent Review Committee. A Total increase (decrease) from condition of this positive recommendation is that the transactions operations (2) $0.26 $0.77 $(0.16) $0.65 $0.52 are performed in accordance with our policy on Related Party Distributions to unitholders: Transactions. For more general information on persons related From net investment income (excluding dividends) (0.43) (0.48) (0.48) (0.42) (0.45) to the Fund and the types of potential transactions, see the From dividends – – – – – Fund’s Simplified Prospectus. From capital gains – – – – (0.01) Return of capital – – – – – The following is a summary of current transactions and Total annual distributions (2,3) $(0.43) $(0.48) $(0.48) $(0.42) $(0.46) arrangements with entities that are related to us or the Fund. Net assets per unit at December 31 of year shown (2) $9.74 $9.87 $9.59 $10.21 $9.95 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 property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Fund for these services based on assets under management, calculated daily and paid monthly.

2 HSBC Emerging Markets Debt Pooled Fund

Ratios and Supplemental Data negotiated between you and us, HSBC Investment Funds 2020 2019 2018 2017 2016 (Canada) Inc. or your approved advisor. Further details can be found in the Fund’s Simplified Prospectus. Total net asset value (in 000s) (4) $257,169 $298,896 $317,346 $296,366 $224,875 Management fees paid to us were used to pay costs for Number of units managing the investment portfolio, providing investment outstanding (in 000s) (4) 26,413 30,273 33,100 29,015 22,611 analysis and recommendations, making investment decisions, Management making brokerage arrangements for the purchase and sale of expense ratio the investment portfolio and providing other services. The ("MER") (5) 0.33% 0.26% 0.20% 0.18% 0.18% MER before waivers management fees also funded commission payments and other or absorptions (5) 0.33% 0.26% 0.20% 0.18% 0.18% compensation (collectively “distribution costs”) to sales Trading expense representatives and registered dealers and brokers, including ratio (6) n/a n/a n/a n/a n/a HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, Portfolio turnover rate (7) 9.60% 10.21% 7.05% 4.47% 10.99% for units of the Fund bought and held by unitholders. Finally, Net asset value per we used management fees to pay for additional marketing and unit (4) $9.74 $9.87 $9.59 $10.21 $9.95 distribution services to the Fund. (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial For the year ended December 31, 2020, approximately 37% of Reporting Standards (“IFRS”). Under IFRS, the net assets per unit the total management fees paid to us for all HSBC Pooled presented in the financial statements is the same as the net asset Funds were used to fund distribution costs. value calculated for fund pricing purposes. (2) Net assets per unit and distributions per unit are based on the Past Performance actual number of units outstanding at the relevant time. The The performance information shown assumes that all increase/decrease in net assets from operations per unit is based on distributions made by the Fund in the years shown were the weighted average number of units outstanding over the fiscal year. 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, Fund, unless the unitholder withdraws from the automatic sales, redemption, distribution, optional charges or expenses reinvestment plan by providing written notice to us. you may be charged outside of the Fund or the effect of any (4) This information is provided as at December 31 of the year shown. income tax you may have to pay as a result of your investment (5) MER is based on total expenses (including a portion of the in the Fund that would have reduced returns or performance. operating expenses of the underlying funds in proportion to the The Fund’s past performance does not necessarily indicate how Fund’s holdings in the other funds and excluding distributions, commissions and other portfolio transaction costs) for the stated it will perform in the future. year and is expressed as an annualized percentage of daily average net asset value during the year. The MER may vary from one Year-by-Year Returns mutual fund to another. Please see the prospectus, Fund Facts and Years ended December 31 other disclosure documents for further details. The following bar chart shows the Fund’s annual performance (6) The trading expense ratio represents total commissions and other for each of the years shown, and illustrates how the Fund’s portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the year. performance changed from year to year. In percentage terms, the bar chart shows how much an investment made on the first (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio day of each financial year would have grown or decreased by turnover rate of 100% is equivalent to the Fund buying and selling the last day of each financial year. all of the securities in its portfolio once in the course of the year. The higher the Fund’s portfolio turnover rate in a year, the greater Annual Returns the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. 20% There is not necessarily a relationship between a high turnover rate 14.5% 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 short- 10% 8.1% term securities. 6.9% 4.8% 5.2% 5% 3.8% 3.3% Management Fees For the year ended December 31, 2020, the Fund did not pay 0% management fees. You pay us, HSBC Investment Funds -1.5% -5% -2.6% (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 your approved advisor a management fee that is based on the 2012 2013 2014 2015 2016 2017 2018 2019 2020 amount you have invested with us or your approved advisor (which may be subject to certain minimum annual fees). It is

3 HSBC Emerging Markets Debt Pooled Fund

Annual Compound Returns Since 1 Year 3 Year 5 Year Inception Year ended December 31, 2020 The following table shows the Fund’s historical annual HSBC Emerging Markets Debt compound total returns for the years indicated, compared with Pooled Fund 3.28% 3.24% 4.37% 4.80% the benchmark index over the same period. A component of 50% JPM Emerging Market Bond Index – Global Diversified (hedged C$), 25% the blended benchmark of the Fund changed in December JPM Emerging Local Mkts Index 2020. The new blended benchmark is a weighted composite Plus (C$), 25% JPM GBI – EM Global consisting of the JP Morgan Emerging Market Bond Index – Diversified Unhedged (C$) 2.41% 3.44% 4.90% 4.95% Global Diversified (hedged in Canadian dollars) (50%), JP 50% JPM EM Bond Index - Global Morgan Emerging Local Markets Index Plus (in Canadian Hedged (C$), 25% JPM GBI - EM dollars) (25%) and JP Morgan Government Bond Index – Global Diversified Unhedged (C$) & 25% JPM Emerging Local Markets Emerging Markets Global Diversified Unhedged (in Canadian Index Plus (C$) 2.72% 3.38% 4.78% 3.26% dollars) (25%). The old blended benchmark is a weighted (1) Due to the fact that several benchmark indices are only available on composite consisting of the JP Morgan Emerging Market Bond a monthly basis, the performance data for the HSBC Funds and the Index – Global Hedged (in Canadian dollars) (50%), JP Morgan benchmark indices are calculated using values from the first month- Emerging Local Markets Index Plus (in Canadian dollars) (25%) end date each Fund was in operation. and JP Morgan Government Bond Index – Emerging Markets (2) For investment commentary and relative performance of the Fund Global Diversified Unhedged (in Canadian dollars) (25%). The compared to its benchmark, please refer to the Results of Operations section of this report. 50% weighting to the JP Morgan Emerging Market Bond Index – Global Hedged was replaced by the JP Morgan Emerging Summary of Investment Portfolio Market Bond Index – Global Diversified. Even though both As at December 31, 2020 indexes are highly similar, the latter has become a more The Fund invests substantially all of its assets in the HSBC industry-accepted benchmark with better risk/return Emerging Markets Debt Fund – Institutional Series. The tables characteristics. The benefit for clients is that they will have a below give you a snapshot of the HSBC Emerging Markets better comparable reference to judge our performance. Debt Fund's investments on December 31, 2020.

The JP Morgan Emerging Market Bond Index – Global Diversified (hedged in Canadian dollars) tracks total returns for Sector Mix traded external debt instruments in the emerging markets. The Percentage diversified index limits the weights of the index countries by of NAV only including a specified portion of those countries’ eligible Government Bonds 64.07% currency faces amounts of debt outstanding. This provides a Energy 9.57% Financials 2.05% more even distribution of weights within the countries in the Materials 2.00% index. The JP Morgan Emerging Local Markets Index Plus (in Utilities 1.54% Canadian dollars) tracks total returns for local-currency Consumer Staples 0.66% denominated money-market instruments in emerging markets. Real Estate 0.64% The JP Morgan Government Bond Index – Emerging Markets Communication Services 0.36% Industrials 0.17% Global Diversified Unhedged (in Canadian dollars) is a Health Care 0.12% comprehensive global local emerging markets index, and Cash & Equivalents 18.82% Total 100.00% consists of liquid, fixed rate, domestic currency government bonds.

Geographic Mix Percentage of NAV Indonesia 5.95% China 4.81% South Africa 4.56% Mexico 4.51% Brazil 4.26% Russia 4.02% Malaysia 3.36% Peru 3.17% Colombia 2.84% Poland 2.65% Turkey 2.10% Thailand 1.79%

4 HSBC Emerging Markets Debt Pooled Fund

Geographic Mix Percentage of NAV Top 25 Holdings Percentage Qatar 1.76% of NAV Chile 1.75% Netherlands 1.74% United States Treasury Bill, 0.11%, 04/22/2021 3.40% Egypt 1.71% Poland Government Bond, 2.50%, 01/25/2023 2.64% Romania 1.70% Brazil Letras do Tesouro Nacional 2.62% Ukraine 1.70% Malaysia Government Bond, 4.16%, 07/15/2021 1.76% United Arab Emirates 1.61% South Africa Government Bond, 7.00%, 02/28/2031 1.42% Luxembourg 1.36% China Government Bond, 3.25%, 06/06/2026 1.26% Panama 1.33% Russian Foreign Bond - Eurobond, 4.38%, 03/21/2029 1.20% Philippines 1.33% Republic of South Africa Government Bond, 8.00%, Argentina 1.21% 01/31/2030 1.18% British Virgin Islands 1.18% Peruvian Government International Bond, 6.35%, 08/12/2028 1.02% Morocco 1.16% Indonesia Treasury Bond, 6.13%, 05/15/2028 0.92% Dominican Republic 1.13% Colombian TES, 7.75%, 09/18/2030 0.90% Bahrain 1.11% Philippine Government International Bond, 3.70%, 02/02/2042 0.90% Cayman Islands 0.90% Ukraine Government International Bond, 7.38%, 09/25/2032 0.89% Hungary 0.89% Russian Federal Bond - OFZ, 7.75%, 09/16/2026 0.87% Nigeria 0.86% Indonesia Treasury Bond, 8.25%, 05/15/2029 0.84% Ghana 0.80% Hungary Government Bond, 3.00%, 10/27/2027 0.82% Kazakhstan 0.76% Czech Republic 0.75% Colombia Government International Bond, 4.50%, 03/15/2029 0.80% Saudi Arabia 0.74% Egypt Government International Bond, 7.05%, 01/15/2032 0.79% Oman 0.72% Republic of South Africa Government International Bond, United States 0.64% 5.65%, 09/27/2047 0.76% Kenya 0.62% China Government Bond, 3.19%, 04/11/2024 0.74% Costa Rica 0.58% Indonesia Government International Bond, 4.35%, 01/11/2048 0.72% Canada 0.53% Argentine Republic Government International Bond, 0.13%, Sri Lanka 0.53% 07/09/2035 0.66% Gabon 0.50% Indonesia Treasury Bond, 8.25%, 07/15/2021 0.65% Jamaica 0.46% Mexican Bonos, 7.75%, 05/29/2031 0.65% Hong Kong 0.44% China Development Bank, 3.09%, 06/18/2030 0.62% Paraguay 0.44% Total of Top 25 Holdings 29.03% Ecuador 0.43% Ivory Coast 0.42% Guatemala 0.41% Senegal 0.33% India 0.29% Uzbekistan 0.29% Croatia 0.26% Serbia 0.25% El Salvador 0.16% Ireland 0.16% Pakistan 0.16% Azerbaijan 0.15% Montenegro 0.15% Belarus 0.14% Jersey 0.14% Bermuda 0.09% Bahamas 0.08% Honduras 0.08% Iraq 0.08% Zambia 0.06% Uruguay 0.05% Tunisia 0.04% Cash & Equivalents 18.82% Total 100.00%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

5 HSBC Emerging Markets Debt Pooled Fund

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.

6 HSBC Emerging Markets Debt Pooled Fund

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 get a copy of these documents at no cost by calling us 3rd 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

HSBC Canadian Dividend Pooled Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Canadian Dividend Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Investment Performance Fund; we, us and our refer to HSBC Global Asset Management The HSBC Canadian Dividend Pooled Fund fell 1.17% for the 12 (Canada) Limited; and the Fund refers to the HSBC Canadian months ending December 31, 2020, while the benchmark S&P/ Dividend Pooled Fund. TSX Capped Composite Index rose 5.60% over the same period. The Fund’s returns are after the deduction of fees and We are the manager, trustee and primary investment advisor of expenses, while the benchmark’s returns do not include any the Fund. costs of investing.

Introduction Equity markets had a remarkable year, with the fastest bear This Annual Management Report of Fund Performance contains market of all time giving way to a surprising and expeditious financial highlights but does not contain the complete annual recovery. Significant fiscal initiatives enacted by governments financial statements of the Fund. You may obtain a copy of the around the world and accommodative monetary policy from annual financial statements at your request, at no cost, by central banks facilitated the recovery of financial assets despite calling us toll-free at 1-888-390-3333, by visiting our website at depressed activity levels. Positive vaccine news took markets a www.assetmanagement.hsbc.ca, by visiting the SEDAR step closer to new highs in December. website at www.sedar.com or by writing to us at: In 2020, businesses in traditionally defensive sectors were HSBC Global Asset Management (Canada) Limited abandoned for pandemic winners in high-growth technology, rd 3 Floor, 885 West Georgia Street industrials (mainly transportation) and consumer discretionary Vancouver, BC V6C 3E8 (benefiting from government cheques). The combination of You may also contact us using one of these methods to request a expansionary fiscal/central bank policies, increased individual copy of the Fund’s interim financial report, proxy voting policies investor activity and momentum-driven trading propelled and procedures, proxy voting disclosure record or quarterly popular stocks with favourable narratives to dizzying heights. portfolio disclosure. The narrow leadership driven by expensive story stocks is the main reason for our underperformance against the benchmark; Investment Objective and Strategies a single company not owned due to valuation concerns The fundamental investment objective of this Fund is to provide accounted for 4.7% of the 5.6% return of the TSX. Other dividend income and medium- to long-term capital growth. negative contributors were our positions in defensive businesses, an underweight position in gold mining equities To achieve its objectives, the Fund invests primarily in a (which benefited from a strong rally in the underlying diversified portfolio of Canadian common equities, preferred commodity) and our cash position. Positive contributors were equities, income trust units and fixed income securities. When cyclical businesses acquired at attractive prices in the depths of investing in fixed income securities, the Fund will invest the sell-off that recovered strongly late in the year. primarily in investment-grade securities, and when investing in common shares, the Fund will invest primarily in high-dividend Recent Developments paying companies listed on the Toronto Stock Exchange. A With much of the heavy lifting behind us, we expect the pace of portion of the Fund may be in the form of cash or the recovery to be slower going forward, although we still cash equivalents. expect positive returns for 2021. The economic fallout from the pandemic is likely to dissipate as vaccines are rolled out, while Risk aggressive policy moves continue to support liquidity and The risks of investing in the Fund remain as discussed in the economic momentum. The key risk remains the virus and its Simplified Prospectus. During the year, there were no material variants or a stall in the rollout of vaccines. Changes in fiscal or changes to the Fund that affected the overall risk level of monetary policy direction will be carefully monitored, as well as the Fund. the geopolitical relationship between China and the US. This Fund is suitable for investors who want to earn income in With some stocks displaying fan-favourite characteristics and the form of dividends and grow their capital, have a medium- significant outperformance, we encourage investors to term investment time horizon and have a medium tolerance for remember that it is not what you buy that drives returns but the risk in their returns. price you pay; valuation has historically explained a majority of Results of Operations returns over a longer time period. Any change in the existing As of December 31, 2020, the Fund's net assets decreased by low inflation regime to one that has more growth could result in 1.9% to $327.6 million from $334.0 million at the end of 2019. a reversal of the significant and sudden re-rating some of the Net withdrawals and negative investment performance resulted high fliers have received. in an overall decrease in net asset value.

1 HSBC Canadian Dividend Pooled Fund

During the period there has been a change in composition to Financial Highlights the Independent Review Committee (the “IRC”). Effective The following tables show selected key financial information March 25, 2020, Ms. Louise Tymocko was appointed to the IRC about the Fund and are intended to help you understand the as a member, replacing Mr. William (Bill) Bakk who left as his Fund’s financial performance for the past five years. This term of office expired. Ms. Lisa Pankratz also took over as Chair information is derived from the Fund’s audited annual financial of the IRC effective March 25, 2020. In addition, effective statements. The information in the following tables is based on February 18, 2021, Ms. Sharon Morrisroe was also appointed to prescribed regulations, and, as a result, is not expected to add the IRC as a member, replacing Mr. Neil de Gelder who left down due to the increase/decrease in net assets from following the expiry of his term in March of 2021. operations being based on average units outstanding during the year and all other numbers being based on actual units Related Party Transactions outstanding at the relevant point in time. We, on behalf of the Fund, or the Fund Manager, may, from time to time, enter into transactions or arrangements with or involving other members of the HSBC Group or other people or HSBC Canadian Dividend Pooled Fund – Net (1) companies related or connected to us or the Fund. To proceed Assets per Unit with the transactions, the Fund relies on the positive Year(s) ended December 31 recommendation of the Fund’s Independent Review Committee. A 2020 2019 2018 2017 2016 condition of this positive recommendation is that the transactions Net assets per unit, beginning of are performed in accordance with our policy on Related Party year (2) $30.15 $25.87 $29.24 $27.00 $22.52 Transactions. For more general information on persons related Increase (decrease) from to the Fund and the types of potential transactions, see the operations: Fund’s Simplified Prospectus. Total revenue 0.89 0.92 0.85 0.78 0.73 Total expenses (0.02) (0.02) (0.01) (0.02) (0.01) The following is a summary of current transactions and Realized gains (losses) (0.10) 0.41 0.99 0.41 0.57 arrangements with entities that are related to us or the Fund. Unrealized gains (losses) (1.13) 3.86 (4.26) 1.84 3.96 Total increase (decrease) from Manager, Trustee and Investment Advisor operations (2) $(0.36) $5.17 $(2.43) $3.01 $5.25 We are the manager, trustee and primary investment advisor of Distributions to unitholders: the Fund. As manager, we manage the overall business and From net investment income operations of the Fund. As trustee, we hold legal title to the (excluding dividends) – – – – (0.03) From dividends (0.89) (0.92) (0.81) (0.75) (0.73) property of the Fund on your behalf. As primary investment From capital gains – – – – – advisor, we provide investment advice and portfolio Return of capital – – – – – management services to the Fund. We receive a fee from the Total annual distributions (2,3) $(0.89) $(0.92) $(0.81) $(0.75) $(0.76) Fund for these services based on assets under management, Net assets per unit at December calculated daily and paid monthly. 31 of year shown (2) $28.79 $30.15 $25.87 $29.24 $27.00

Distribution Services The Fund is distributed through us and HSBC Investment Funds Ratios and Supplemental Data (Canada) Inc. (our wholly owned subsidiary). We may pay 2020 2019 2018 2017 2016 distribution and servicing fees to our related party distributor based on the value of the units held in the investor’s account, Total net asset value (in 000s) (4) $327,647 $334,009 $290,862 $332,994 $283,296 and additionally, in some cases, on the amount of the Number of units initial purchase. outstanding (in 000s) (4) 11,382 11,080 11,245 11,390 10,494 Fund on Fund Investing Management During the year, the Fund invested in units of the HSBC expense ratio ("MER") (5) 0.08% 0.07% 0.05% 0.06% 0.05% Mortgage Fund, which is also managed by us. MER before waivers or absorptions (5) 0.08% 0.07% 0.05% 0.06% 0.05% Purchases of Securities Underwritten by a Related Party Trading expense During the year, the Fund invested in certain securities that ratio (6) 0.05% 0.03% 0.03% 0.03% 0.03% were underwritten, in whole or in part, by entities that are a Portfolio turnover related party to us. To proceed with the transactions, the Fund rate (7) 24.43% 16.77% 19.65% 12.87% 9.78% Net asset value per relied on the approval of the Fund’s Independent Review unit (4) $28.79 $30.15 $25.87 $29.24 $27.00 Committee by way of Standing Instruction. A condition of this (1) This information is derived from the Fund’s audited annual financial approval was that the transactions were performed in statements. All balances are stated in International Financial accordance with our policy on Purchases of Securities Underwritten by a Related Party.

2 HSBC Canadian Dividend Pooled Fund

Reporting Standards (“IFRS”). Under IFRS, the net assets per unit Past Performance presented in the financial statements is the same as the net asset The performance information shown assumes that all value calculated for fund pricing purposes. distributions made by the Fund in the years shown were (2) Net assets per unit and distributions per unit are based on the reinvested in additional securities of the Fund. The performance actual number of units outstanding at the relevant time. The information does not take into account management fees, increase/decrease in net assets from operations per unit is based on sales, redemption, distribution, optional charges or expenses the weighted average number of units outstanding over the you may be charged outside of the Fund or the effect of any fiscal year. income tax you may have to pay as a result of your investment (3) Distributions are automatically reinvested in additional units of the in the Fund that would have reduced returns or performance. Fund, unless the unitholder withdraws from the automatic The Fund’s past performance does not necessarily indicate how reinvestment plan by providing written notice to us. it will perform in the future. (4) This information is provided as at December 31 of the year shown. (5) MER is based on total expenses (including a portion of the Year-by-Year Returns operating expenses of the underlying funds in proportion to the Years ended December 31 Fund’s holdings in the other funds and excluding distributions, The following bar chart shows the Fund’s annual performance commissions and other portfolio transaction costs) for the stated for each of the years shown, and illustrates how the Fund’s year and is expressed as an annualized percentage of daily average performance changed from year to year. In percentage terms, net asset value during the year. The MER may vary from one the bar chart shows how much an investment made on the first mutual fund to another. Please see the prospectus, Fund Facts and day of each financial year would have grown or decreased by other disclosure documents for further details. the last day of each financial year. (6) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage Annual Returns of daily average net asset value during the year. 30% (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s 23.6% portfolio advisor manages its portfolio investments. A portfolio 19.5% 20.2% 20% turnover rate of 100% is equivalent to the Fund buying and selling 12.6% all of the securities in its portfolio once in the course of the year. 10.1% 11.2% 10% The higher the Fund’s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year, and the greater 0% the chance of an investor receiving taxable capital gains in the year. -1.2% There is not necessarily a relationship between a high turnover rate -4.7% -10% -5.3% and the performance of the Fund. The rate is calculated based on -8.9% the lesser of purchases or sales of securities divided by the average weighted market value of the portfolio securities, excluding short- -20% Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 term securities. 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Management Fees For the year ended December 31, 2020, the Fund did not pay Annual Compound Returns management fees. You pay us, HSBC Investment Funds Year ended December 31, 2020 The following table shows the Fund’s historical annual (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or compound total returns for the years indicated, compared with your approved advisor a management fee that is based on the the benchmark index, the S&P/TSX Capped Composite Index, amount you have invested with us or your approved advisor over the same period. This index tracks changes in the share (which may be subject to certain minimum annual fees). It is price of the largest companies listed on the Toronto Stock negotiated between you and us, HSBC Investment Funds Exchange, representing a broad range of industries. (Canada) Inc. or your approved advisor. Further details can be found in the Fund’s Simplified Prospectus. 1 Year 3 Year 5 Year 10 Year

Management fees paid to us were used to pay costs for HSBC Canadian Dividend Pooled Fund -1.17% 2.68% 8.28% 7.11% managing the investment portfolio, providing investment S&P/TSX Capped Composite Index 5.60% 5.74% 9.33% 5.76% analysis and recommendations, making investment decisions, (1) Due to the fact that several benchmark indices are only available on making brokerage arrangements for the purchase and sale of a monthly basis, the performance data for the HSBC Funds and the the investment portfolio and providing other services. The benchmark indices are calculated using values from the first month- management fees also funded commission payments and other end date each Fund was in operation. compensation (collectively “distribution costs”) to sales (2) For investment commentary and relative performance of the Fund compared to its benchmark, please refer to the Results of Operations representatives and registered dealers and brokers, including section of this report. 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. For the year ended December 31, 2020, approximately 37% of the total management fees paid to us for all HSBC Pooled Funds were used to fund distribution costs.

3 HSBC Canadian Dividend Pooled Fund

Summary of Investment Portfolio Top 25 Holdings As at December 31, 2020 Percentage of NAV Asset Mix Royal Bank of Canada 7.53% Toronto-Dominion Bank 6.81% Percentage Brookfield Asset Management Inc. 5.00% of NAV Canadian National Railway Co. 4.48% Canadian Equities 97.71% Enbridge Inc. 4.40% Investment Funds 1.67% Bank of Nova Scotia 4.38% Cash & Equivalents 0.62% Canadian Pacific Railway Ltd. 3.58% Total 100.00% Nutrien Ltd. 3.37% Alimentation Couche-Tard Inc., Class B 3.36% Manulife Financial Corp. 3.04% Sector Mix Wheaton Precious Metals Corp. 2.89% Percentage Cenovus Energy Inc. 2.83% of NAV Barrick Gold Corp. 2.78% Financials 31.08% Methanex Corp. 2.42% Materials 17.75% Dollarama Inc. 2.23% Energy 12.39% Shaw Communications Inc., Class B 2.18% Industrials 11.05% TransAlta Corp. 2.14% Communication Services 6.41% TELUS Corp. 2.13% Consumer Staples 6.02% CGI Inc. 2.11% Utilities 4.26% Rogers Communications Inc. 2.10% Information Technology 4.03% Kirkland Lake Gold Ltd. 1.95% Consumer Discretionary 3.89% Open Text Corp. 1.92% Investment Funds 1.67% Suncor Energy Inc. 1.85% Real Estate 0.83% Loblaw Cos., Ltd. 1.83% Cash & Equivalents 0.62% Bank of Montreal 1.82% Total 100.00% Total of Top 25 Holdings 79.13%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

4 HSBC Canadian Dividend Pooled Fund

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 get a copy of these documents at no cost by calling us 3rd 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

HSBC Canadian Equity Pooled Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Canadian Equity Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Investment Performance Fund; we, us and our refer to HSBC Global Asset Management The HSBC Canadian Equity Pooled Fund rose 0.66% for the 12 (Canada) Limited; and the Fund refers to the HSBC Canadian months ending December 31, 2020, while the benchmark S&P/ Equity Pooled Fund. TSX Capped Composite Index rose 5.60% over the same period. The Fund’s returns are after the deduction of fees and We are the manager, trustee and primary investment advisor of expenses, while the benchmark’s returns do not include any the Fund. costs of investing.

Introduction Equity markets had a remarkable year, with the fastest bear This Annual Management Report of Fund Performance contains market of all time giving way to a surprising and expeditious financial highlights but does not contain the complete annual recovery. Significant fiscal initiatives enacted by governments financial statements of the Fund. You may obtain a copy of the around the world and accommodative monetary policy from annual financial statements at your request, at no cost, by central banks facilitated the recovery of financial assets despite calling us toll-free at 1-888-390-3333, by visiting our website at depressed activity levels throughout the year. Positive vaccine www.assetmanagement.hsbc.ca, by visiting the SEDAR news took markets a step closer to new highs in December. website at www.sedar.com or by writing to us at: In 2020, businesses in traditionally defensive sectors were HSBC Global Asset Management (Canada) Limited abandoned for pandemic winners in high-growth technology, rd 3 Floor, 885 West Georgia Street industrials (mainly transportation) and consumer discretionary Vancouver, BC V6C 3E8 (benefiting from government cheques). The combination of You may also contact us using one of these methods to request a expansionary fiscal/central bank policies, increased individual copy of the Fund’s interim financial report, proxy voting policies investor activity and momentum-driven trading propelled and procedures, proxy voting disclosure record or quarterly popular stocks with favourable narratives to dizzying heights. portfolio disclosure. The narrow leadership driven by expensive story stocks is the main reason for our underperformance against the benchmark; Investment Objective and Strategies a single company not owned due to valuation concerns The fundamental investment objective of this Fund is to achieve accounted for 4.7% of the 5.6% return of the TSX. Other long-term capital growth. negative contributors were our positions in defensive businesses, an underweight position in gold mining equities To achieve its objectives, the Fund invests primarily in publicly (which benefited from a strong rally in the underlying traded common shares, preferred shares, rights, warrants and commodity) and our cash position. Positive contributors were convertible securities. A portion of the Fund may be in the form cyclical businesses acquired at attractive prices in the depths of of cash or cash equivalents. When investing in common shares, the sell-off that recovered strongly late in the year. the Fund will invest primarily in large cap companies listed on the Toronto Stock Exchange. Recent Developments With much of the heavy lifting behind us, we expect the pace of Risk the recovery to be slower going forward, although we still The risks of investing in the Fund remain as discussed in the expect positive returns for 2021. The economic fallout from the Simplified Prospectus. During the year, there were no material pandemic is likely to dissipate as vaccines are rolled out, while changes to the Fund that affected the overall risk level of aggressive policy moves continue to support liquidity and the Fund. economic momentum. The key risk remains the virus and its This Fund is suitable for investors who want to achieve long variants or a stall in the rollout of vaccines. Changes in fiscal or term capital growth, have a long-term investment time horizon monetary policy direction will be carefully monitored, as well as and have a medium tolerance for risk in their returns. the geopolitical relationship between China and the US. Results of Operations With some stocks displaying fan-favourite characteristics and As of December 31, 2020, the Fund's net assets increased by significant outperformance, we encourage investors to 2.7% to $1,052.2 million from $1,024.6 million at the end of remember that it is not what you buy that drives returns but the 2019. Net contributions and positive investment performance price you pay; valuation has historically explained a majority of resulted in an overall increase in net asset value. returns over a longer time period. Any change in the existing low inflation regime to one that has more growth could result in a reversal of the significant and sudden re-rating some of the high fliers have received.

1 HSBC Canadian Equity Pooled Fund

During the period there has been a change in composition to Financial Highlights the Independent Review Committee (the “IRC”). Effective The following tables show selected key financial information March 25, 2020, Ms. Louise Tymocko was appointed to the IRC about the Fund and are intended to help you understand the as a member, replacing Mr. William (Bill) Bakk who left as his Fund’s financial performance for the past five years. This term of office expired. Ms. Lisa Pankratz also took over as Chair information is derived from the Fund’s audited annual financial of the IRC effective March 25, 2020. In addition, effective statements. The information in the following tables is based on February 18, 2021, Ms. Sharon Morrisroe was also appointed to prescribed regulations, and, as a result, is not expected to add the IRC as a member, replacing Mr. Neil de Gelder who left down due to the increase/decrease in net assets from following the expiry of his term in March of 2021. operations being based on average units outstanding during the year and all other numbers being based on actual units Related Party Transactions outstanding at the relevant point in time. We, on behalf of the Fund, or the Fund Manager, may, from time to time, enter into transactions or arrangements with or involving other members of the HSBC Group or other people or HSBC Canadian Equity Pooled Fund – Net (1) companies related or connected to us or the Fund. To proceed Assets per Unit with the transactions, the Fund relies on the positive Year(s) ended December 31 recommendation of the Fund’s Independent Review Committee. A 2020 2019 2018 2017 2016 condition of this positive recommendation is that the transactions Net assets per unit, beginning of are performed in accordance with our policy on Related Party year (2) $50.71 $43.15 $49.54 $45.43 $37.75 Transactions. For more general information on persons related Increase (decrease) from to the Fund and the types of potential transactions, see the operations: Fund’s Simplified Prospectus. Total revenue 1.46 1.51 1.39 1.19 1.12 Total expenses (0.02) (0.03) (0.02) (0.02) (0.02) The following is a summary of current transactions and Realized gains (losses) 0.28 – 1.67 0.71 0.90 Unrealized gains (losses) (0.93) 7.47 (7.21) 3.36 6.86 arrangements with entities that are related to us or the Fund. Total increase (decrease) from Manager, Trustee and Investment Advisor operations (2) $0.79 $8.95 $(4.17) $5.24 $8.86 We are the manager, trustee and primary investment advisor of Distributions to unitholders: From net investment income the Fund. As manager, we manage the overall business and (excluding dividends) – – – – – operations of the Fund. As trustee, we hold legal title to the From dividends (1.48) (1.52) (1.35) (1.10) (1.19) property of the Fund on your behalf. As primary investment From capital gains – – (0.63) – – advisor, we provide investment advice and portfolio Return of capital – – – – – management services to the Fund. We receive a fee from the Total annual distributions (2,3) $(1.48) $(1.52) $(1.98) $(1.10) $(1.19) Fund for these services based on assets under management, Net assets per unit at December 31 of year shown (2) $49.56 $50.71 $43.15 $49.54 $45.43 calculated daily and paid monthly.

Distribution Services Ratios and Supplemental Data The Fund is distributed through us and HSBC Investment Funds (Canada) Inc. (our wholly owned subsidiary). We may pay 2020 2019 2018 2017 2016 distribution and servicing fees to our related party distributor Total net asset based on the value of the units held in the investor’s account, value (in 000s) (4) $1,052,236 $1,024,614 $851,171 $917,100 $740,780 Number of units and additionally, in some cases, on the amount of the outstanding (in initial purchase. 000s) (4) 21,230 20,205 19,725 18,512 16,306 Management Purchases of Securities Underwritten by a Related Party expense ratio ("MER") (5) 0.05% 0.06% 0.03% 0.04% 0.04% During the year, the Fund invested in certain securities that MER before were underwritten, in whole or in part, by entities that are a waivers or related party to us. To proceed with the transactions, the Fund absorptions (5) 0.05% 0.06% 0.03% 0.04% 0.04% relied on the approval of the Fund’s Independent Review Trading expense ratio (6) 0.05% 0.03% 0.04% 0.04% 0.03% Committee by way of Standing Instruction. A condition of this Portfolio turnover approval was that the transactions were performed in rate (7) 23.56% 17.38% 20.89% 13.87% 9.72% accordance with our policy on Purchases of Securities Net asset value Underwritten by a Related Party. per unit (4) $49.56 $50.71 $43.15 $49.54 $45.43 (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial

2 HSBC Canadian Equity Pooled Fund

all of the securities in its portfolio once in the course of the year. 30% The higher the Fund’s portfolio turnover rate in a year, the greater 23.5% 21.0% the trading costs payable by the Fund in the year, and the greater 20% 17.5% the chance of an investor receiving taxable capital gains in the year. 14.2% 11.5% 9.3% There is not necessarily a relationship between a high turnover rate 10% and the performance of the Fund. The rate is calculated based on 0.7% the lesser of purchases or sales of securities divided by the average 0% weighted market value of the portfolio securities, excluding short- term securities. -4.9% -10% -9.7% -8.8% Management Fees -20% For the year ended December 31, 2020, the Fund did not pay Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 management fees. You pay us, HSBC Investment Funds (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or your approved advisor a management fee that is based on the Annual Compound Returns amount you have invested with us or your approved advisor Year ended December 31, 2020 (which may be subject to certain minimum annual fees). It is The following table shows the Fund’s historical annual negotiated between you and us, HSBC Investment Funds compound total returns for the years indicated, compared with (Canada) Inc. or your approved advisor. Further details can be the benchmark index, the S&P/TSX Capped Composite Index, found in the Fund’s Simplified Prospectus. over the same period. This index tracks changes in the share price of the largest companies listed on the Toronto Stock Management fees paid to us were used to pay costs for Exchange, representing a broad range of industries. managing the investment portfolio, providing investment 1 Year 3 Year 5 Year 10 Year analysis and recommendations, making investment decisions, making brokerage arrangements for the purchase and sale of HSBC Canadian Equity Pooled Fund 0.66% 3.57% 8.87% 6.78% the investment portfolio and providing other services. The S&P/TSX Capped Composite Index 5.60% 5.74% 9.33% 5.76% management fees also funded commission payments and other (1) Due to the fact that several benchmark indices are only available on compensation (collectively “distribution costs”) to sales a monthly basis, the performance data for the HSBC Funds and the representatives and registered dealers and brokers, including benchmark indices are calculated using values from the first month- end date each Fund was in operation. HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, (2) For investment commentary and relative performance of the Fund for units of the Fund bought and held by unitholders. Finally, compared to its benchmark, please refer to the Results of Operations we used management fees to pay for additional marketing and section of this report. distribution services to the Fund. For the year ended December 31, 2020, approximately 37% of the total management fees paid to us for all HSBC Pooled Funds were used to fund distribution costs.

3 HSBC Canadian Equity Pooled Fund

Summary of Investment Portfolio As at December 31, 2020

Sector Mix Percentage of NAV

Financials 29.99% Materials 18.46% Energy 12.57% Industrials 10.97% Information Technology 6.97% Communication Services 6.21% Consumer Staples 6.01% Consumer Discretionary 3.79% Utilities 3.40% Real Estate 0.66% Cash & Equivalents 0.97% Total 100.00%

Top 25 Holdings Percentage of NAV

Royal Bank of Canada 7.08% Toronto-Dominion Bank 6.71% Brookfield Asset Management Inc., Class A 5.11% Enbridge Inc. 4.42% Canadian National Railway Co. 4.33% Bank of Nova Scotia 4.30% Nutrien Ltd. 3.49% Alimentation Couche-Tard Inc., Class B 3.47% Canadian Pacific Railway Ltd. 3.44% CGI Inc. 3.12% Cenovus Energy Inc. 2.99% Manulife Financial Corp. 2.95% Wheaton Precious Metals Corp. 2.94% Barrick Gold Corp. 2.79% Open Text Corp. 2.53% Methanex Corp. 2.31% Dollarama Inc. 2.27% TransAlta Corp. 2.24% Shaw Communications Inc., Class B 2.21% Rogers Communications Inc. 2.09% Kirkland Lake Gold Ltd. 2.05% Bank of Montreal 1.95% TELUS Corp. 1.91% Teck Resources Ltd., Class B 1.84% CCL Industries Inc. 1.83% Total of Top 25 Holdings 80.37%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

4 HSBC Canadian Equity Pooled Fund

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 get a copy of these documents at no cost by calling us 3rd 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

HSBC Canadian Small Cap Equity Pooled Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Canadian Small Cap Equity Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Results of Operations Fund; we, us and our refer to HSBC Global Asset Management As of December 31, 2020, the Fund's net assets decreased by (Canada) Limited; and the Fund refers to the HSBC Canadian 4.1% to $99.3 million from $103.5 million at the end of 2019. Small Cap Equity Pooled Fund. Net withdrawals, partially offset by positive investment We are the manager, trustee and primary investment advisor of performance, resulted in an overall decrease in net asset value. the Fund. We have hired Mawer Investment Management Investment Performance Limited and Triasima Portfolio Management Inc. as sub- The HSBC Canadian Small Cap Equity Pooled Fund rose advisors to provide portfolio management and investment 22.47% for the 12 months ending December 31, 2020, while advisory services to the Fund. For an explanation of the the benchmark S&P/TSX SmallCap Index (C$) rose 12.87% over relationship between us and the sub-advisors, see the section the same period. The Fund’s returns are after the deduction of Selection of Sub-Advisors in the Fund’s Simplified Prospectus. fees and expenses, while the benchmark’s returns do not Introduction include any costs of investing. This Annual Management Report of Fund Performance contains Looking back on a year beset by the coronavirus pandemic, the financial highlights but does not contain the complete annual market’s performance stands out for its incredible comeback financial statements of the Fund. You may obtain a copy of the from the virus-fuelled crash in March. Despite social restrictions annual financial statements at your request, at no cost, by that could be in place for several more months and many calling us toll-free at 1-888-390-3333, by visiting our website at countries grappling with surging COVID-19 infections, global www.assetmanagement.hsbc.ca, by visiting the SEDAR stock markets were propelled to record highs in the fourth website at www.sedar.com or by writing to us at: quarter, fuelled by unprecedented monetary and fiscal stimulus measures and positive vaccine developments. HSBC Global Asset Management (Canada) Limited 3rd Floor, 885 West Georgia Street The Fund outperformed the benchmark, primarily on the Vancouver, BC V6C 3E8 strength of the portfolio’s technology stocks. Several of the Fund’s holdings performed strongly, such as Enghouse, Kinaxis You may also contact us using one of these methods to request a and Descartes, but investor enthusiasm towards tech copy of the Fund’s interim financial report, proxy voting policies companies was most apparent with respect to the Fund’s and procedures, proxy voting disclosure record or quarterly position in Dye & Durham. portfolio disclosure. Outside of technology, the portfolio’s lack of direct exposure to Investment Objective and Strategies precious metals mining companies detracted from relative The fundamental investment objective of this Fund is to achieve performance given the industry’s strength, but this was partially long-term capital growth. offset by the portfolio’s notable underweight to the struggling energy sector, which declined more than 30% during the year To achieve its objectives, the Fund invests primarily in publicly despite a strong rally in the fourth quarter. traded common shares, preferred shares, rights, warrants, income trust units and convertible securities. A portion of the Recent Developments Fund’s holdings may be in the form of cash or cash equivalents. The economic trajectory for 2021 is likely to depend on the When investing in common shares, the Fund will invest pace of COVID-19 inoculations. Vaccines will help economies primarily in a broad range of smaller and medium-sized recover after a destructive year for workers and businesses, but Canadian companies. the brightening economic outlook underestimates the case for caution with respect to capital markets. Increasingly lofty Risk valuations, driven by continued low interest rates and investor The risks of investing in the Fund remain as discussed in the optimism, are cause for concern as much of the good news Simplified Prospectus. During the year, there were no material may be already embedded in market prices. However, low changes to the Fund that affected the overall risk level of discount rates can justify valuations that otherwise would the Fund. appear stretched.

This Fund is suitable for investors seeking a higher level of long In the portfolio management team’s view, while remaining term capital growth on their investment. Investors in this Fund mindful of top-down risks, the core portion of the portfolio should have a long-term investment time horizon and a remains focused on investing in companies that provide clear medium tolerance for risk in their returns. value propositions; possess strong competitive advantages; have bottom-up execution opportunities; and are led by honest and proactive managers who are also prudent capital allocators. As such, although valuation has become less

1 HSBC Canadian Small Cap Equity Pooled Fund attractive, a portfolio of sustainably wealth-creating businesses Financial Highlights remains a prudent approach for investors looking to protect and The following tables show selected key financial information compound capital over long periods of time. about the Fund and are intended to help you understand the During the period there has been a change in composition to Fund’s financial performance for the past five years. This the Independent Review Committee (the “IRC”). Effective information is derived from the Fund’s audited annual financial March 25, 2020, Ms. Louise Tymocko was appointed to the IRC statements. The information in the following tables is based on as a member, replacing Mr. William (Bill) Bakk who left as his prescribed regulations, and, as a result, is not expected to add term of office expired. Ms. Lisa Pankratz also took over as Chair down due to the increase/decrease in net assets from of the IRC effective March 25, 2020. In addition, effective operations being based on average units outstanding during the February 18, 2021, Ms. Sharon Morrisroe was also appointed to year and all other numbers being based on actual units outstanding at the relevant point in time. the IRC as a member, replacing Mr. Neil de Gelder who left following the expiry of his term in March of 2021. HSBC Canadian Small Cap Equity Pooled Fund Related Party Transactions – Net Assets per Unit(1) We, on behalf of the Fund, or the Fund Manager, may, from Year(s) ended December 31 time to time, enter into transactions or arrangements with or 2020 2019 2018 2017 2016 involving other members of the HSBC Group or other people or companies related or connected to us or the Fund. To proceed Net assets per unit, beginning of year (2) $62.70 $49.71 $58.79 $55.91 $47.44 with the transactions, the Fund relies on the positive Increase (decrease) from recommendation of the Fund’s Independent Review Committee. A operations: condition of this positive recommendation is that the transactions Total revenue 0.78 1.05 1.02 1.05 1.01 are performed in accordance with our policy on Related Party Total expenses (0.10) (0.09) (0.07) (0.09) (0.06) Transactions. For more general information on persons related Realized gains (losses) 1.12 2.84 (0.12) 1.33 4.09 Unrealized gains (losses) 7.85 10.28 (8.92) 1.58 5.35 to the Fund and the types of potential transactions, see the Fund’s Simplified Prospectus. Total increase (decrease) from operations (2) $9.65 $14.08 $(8.09) $3.87 $10.39 The following is a summary of current transactions and Distributions to unitholders: arrangements with entities that are related to us or the Fund. From net investment income (excluding dividends) – – – – – Manager, Trustee and Investment Advisor From dividends (0.79) (0.95) (0.89) (0.92) (1.01) From capital gains – (0.25) (0.24) – (0.60) We are the manager, trustee and primary investment advisor of Return of capital – – – – – the Fund. As manager, we manage the overall business and Total annual distributions (2,3) $(0.79) $(1.20) $(1.13) $(0.92) $(1.61) operations of the Fund. As trustee, we hold legal title to the property of the Fund on your behalf. As primary investment Net assets per unit at December 31 of year shown (2) $76.00 $62.70 $49.71 $58.79 $55.91 advisor, we provide investment advice and portfolio management services to the Fund. We receive a fee from the Fund for these services based on assets under management, Ratios and Supplemental Data calculated daily and paid monthly. 2020 2019 2018 2017 2016 Distribution Services Total net asset value (in The Fund is distributed through us and HSBC Investment Funds 000s) (4) $99,287 $103,453 $78,715 $81,015 $69,447 Number of units (Canada) Inc. (our wholly owned subsidiary). We may pay outstanding (in 000s) (4) 1,306 1,650 1,584 1,378 1,242 distribution and servicing fees to our related party distributor Management expense based on the value of the units held in the investor’s account, ratio ("MER") (5) 0.16% 0.16% 0.12% 0.16% 0.11% and additionally, in some cases, on the amount of the MER before waivers or absorptions (5) 0.16% 0.16% 0.12% 0.16% 0.11% initial purchase. Trading expense ratio (6) 0.11% 0.10% 0.21% 0.16% 0.17% Portfolio turnover rate (7) 44.41% 40.73% 51.42% 40.77% 44.15% Purchases of Securities Underwritten by a Related Party Net asset value per The Fund may invest in certain securities that are underwritten, unit (4) $76.00 $62.70 $49.71 $58.79 $55.91 in whole or in part, by entities that are a related party to us. To (1) This information is derived from the Fund’s audited annual financial proceed with these transactions, the Fund relies on the statements. All balances are stated in International Financial approval of the Fund’s Independent Review Committee by way of Standing Instruction. A condition of this approval is that the transactions are performed in accordance with our policy on Purchases of Securities Underwritten by a Related Party. During the year, the Fund did not invest in any such securities.

2 HSBC Canadian Small Cap Equity Pooled Fund

all of the securities in its portfolio once in the course of the year. 60% The higher the Fund’s portfolio turnover rate in a year, the greater 49.4% the trading costs payable by the Fund in the year, and the greater 40% the chance of an investor receiving taxable capital gains in the year. 28.5% 21.3% 22.5% There is not necessarily a relationship between a high turnover rate 20% 18.0% and the performance of the Fund. The rate is calculated based on 7.3% 6.8% 1.3% 4.9% the lesser of purchases or sales of securities divided by the average 0% weighted market value of the portfolio securities, excluding short- term securities. -20% -13.5%

Management Fees -40% For the year ended December 31, 2020, the Fund did not pay Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 management fees. You pay us, HSBC Investment Funds (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or your approved advisor a management fee that is based on the Annual Compound Returns amount you have invested with us or your approved advisor Year ended December 31, 2020 (which may be subject to certain minimum annual fees). It is The following table shows the Fund’s historical annual negotiated between you and us, HSBC Investment Funds compound total returns for the years indicated, compared with (Canada) Inc. or your approved advisor. Further details can be the benchmark index, the S&P/TSX SmallCap Index (C$), over found in the Fund’s Simplified Prospectus. the same period. This index provides an investable index for the Canadian small cap market. The index is float-adjusted and Management fees paid to us were used to pay costs for market-cap weighted and was developed with industry input as managing the investment portfolio, providing investment the ideal benchmark for those with small cap exposure to the analysis and recommendations, making investment decisions, Canadian equity market. making brokerage arrangements for the purchase and sale of 1 Year 3 Year 5 Year 10 Year the investment portfolio and providing other services. The management fees also funded commission payments and other HSBC Canadian Small Cap Equity compensation (collectively “distribution costs”) to sales Pooled Fund 22.47% 10.86% 12.03% 13.50% representatives and registered dealers and brokers, including S&P/TSX SmallCap Index (C$) 12.87% 2.28% 8.77% 1.26% HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, (1) Due to the fact that several benchmark indices are only available on for units of the Fund bought and held by unitholders. Finally, a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- we used management fees to pay for additional marketing and end date each Fund was in operation. distribution services to the Fund. (2) For investment commentary and relative performance of the Fund For the year ended December 31, 2020, approximately 37% of compared to its benchmark, please refer to the Results of Operations section of this report. the total management fees paid to us for all HSBC Pooled Funds were used to fund distribution costs.

3 HSBC Canadian Small Cap Equity Pooled Fund

Summary of Investment Portfolio As at December 31, 2020

Sector Mix Percentage of NAV

Industrials 24.22% Information Technology 19.52% Real Estate 13.94% Materials 11.19% Financials 9.15% Consumer Discretionary 6.29% Energy 5.35% Health Care 2.61% Communication Services 2.54% Consumer Staples 2.07% Utilities 0.82% Cash & Equivalents 2.30% Total 100.00%

Top 25 Holdings Percentage of NAV

Dye & Durham Ltd. 4.93% People Corp. 3.78% Boyd Group Services Inc. 3.65% Colliers International Group Inc. 3.46% Enghouse Systems Ltd. 3.08% Stella-Jones Inc. 3.07% Richards Packaging Income Fund 2.98% Element Fleet Management Corp. 2.96% Mainstreet Equity Corp. 2.52% The Descartes Systems Group Inc. 2.38% Altus Group Ltd. 2.35% Kinaxis Inc. 2.32% Cogeco Inc. 2.27% Morneau Shepell Inc. 2.15% Calian Group Ltd. 2.07% Richelieu Hardware Ltd. 2.07% Sleep Country Canada Holdings Inc. 2.07% Equitable Group Inc. 2.04% Jamieson Wellness Inc. 2.03% FirstService Corp. 2.02% Savaria Corp. 1.90% North American Contruction Group Ltd. 1.83% GDI Integrated Facility Services Inc. 1.77% MTY Food Group Inc. 1.64% HLS Therapeutics Inc. 1.61% Total of Top 25 Holdings 62.95%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

4 HSBC Canadian Small Cap Equity Pooled Fund

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 get a copy of these documents at no cost by calling us 3rd 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

HSBC U.S. Equity Pooled Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC U.S. Equity Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the The US equity market performed strongly in 2020 despite a Fund; we, us and our refer to HSBC Global Asset Management challenging first half of the year. In Q1, US equities contracted (Canada) Limited; and the Fund refers to the HSBC U.S. Equity markedly as the COVID-19 outbreak spread and the economic Pooled Fund. outlook deteriorated. However, the US Federal Reserve’s aggressive policy response in March and the government’s We are the manager, trustee and primary investment advisor of US$2-trillion fiscal stimulus package helped calm the market the Fund. We have hired HSBC Global Asset Management and restore investor confidence. November performance was (UK) Limited as a sub-advisor to provide portfolio management especially strong due to COVID-19 vaccine news and Joe and investment advisory services to the Fund. For an Biden’s win in the US presidential election. explanation of the relationship between us and the sub-advisor, see the section Selection of Sub-Advisors in the Fund’s The Fund underperformed its benchmark, with sector allocation Simplified Prospectus. and stock selection weighing on performance. On a sector basis, an overweight allocation to consumer discretionary and Introduction underweight exposures to utilities and real estate contributed to performance. Conversely, overweight allocations to energy and This Annual Management Report of Fund Performance contains industrials and an underweight exposure to information financial highlights but does not contain the complete annual technology weighed on performance. financial statements of the Fund. You may obtain a copy of the annual financial statements at your request, at no cost, by In terms of stock selection, our overweight allocations to calling us toll-free at 1-888-390-3333, by visiting our website at Walmart and FedEx and an underweight exposure to Raytheon www.assetmanagement.hsbc.ca, by visiting the SEDAR contributed to performance. Conversely, underweight website at www.sedar.com or by writing to us at: exposures to Amazon.com, Apple and Microsoft weighed on performance. HSBC Global Asset Management (Canada) Limited 3rd Floor, 885 West Georgia Street Recent Developments Vancouver, BC V6C 3E8 Throughout the period, the Fund continued to follow the HSBC Economic Scale investment strategy which uses a systematic You may also contact us using one of these methods to request a rebalancing approach that regularly re-evaluates stock weights copy of the Fund’s interim financial report, proxy voting policies and allocation. The strategy aims to take advantage of excess and procedures, proxy voting disclosure record or quarterly volatility in market prices to add excess return while delivering portfolio disclosure. the equity market premium. Investment Objective and Strategies The Fund’s investment strategy, however, will change on or The fundamental investment objective of this Fund is to achieve around April 16, 2021 to a strategy that uses fundamental long-term capital growth. analysis and both top-down and bottom-up approaches to select securities and allocate sector weightings. The Fund will To achieve its objectives, the Fund invests primarily in US be managed by the Equity investment team at HSBC Bank companies diversified across industry sectors. The Fund also USA, N.A. Previously the Fund was managed by HSBC Global invests in companies based outside of the US if their securities Asset Management (UK) Limited. are listed on a US exchange (including depositary receipts or During the period there has been a change in composition to other equity-linked securities) and they are owned or controlled the Independent Review Committee (the “IRC”). Effective by US interests, or where a significant portion of the earnings, March 25, 2020, Ms. Louise Tymocko was appointed to the IRC production facilities, turnover, assets or investments of such as a member, replacing Mr. William (Bill) Bakk who left as his companies are based in or derived from the US. A portion of term of office expired. Ms. Lisa Pankratz also took over as Chair the Fund may be in the form of cash or cash equivalents. of the IRC effective March 25, 2020. In addition, effective February 18, 2021, Ms. Sharon Morrisroe was also appointed to Risk the IRC as a member, replacing Mr. Neil de Gelder who left The risks of investing in the Fund remain as discussed in the following the expiry of his term in March of 2021. Simplified Prospectus. During the year, there were no material changes to the Fund that affected the overall risk level of Related Party Transactions the Fund. We, on behalf of the Fund, or the Fund Manager, may, from This Fund is suitable for investors who seek long-term capital time to time, enter into transactions or arrangements with or growth, have a long-term investment time horizon and have a involving other members of the HSBC Group or other people or medium tolerance for risk in their returns. companies related or connected to us or the Fund. To proceed 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 December 31, 2020, the Fund's net assets increased by are performed in accordance with our policy on Related Party 0.6% to $977.0 million from $971.0 million at the end of 2019. Transactions. For more general information on persons related Positive investment performance, partially offset by net to the Fund and the types of potential transactions, see the withdrawals, resulted in an overall increase in net asset value. Fund’s Simplified Prospectus. Investment Performance The following is a summary of current transactions and The HSBC U.S. Equity Pooled Fund rose 4.87% for the 12 arrangements with entities that are related to us or the Fund. months ending December 31, 2020, while the benchmark Russell 1000 Total Return Index (C$) rose 18.84% over the Manager, Trustee and Investment Advisor same period. The Fund’s returns are after the deduction of fees We are the manager, trustee and primary investment advisor of and expenses, while the benchmark’s returns do not include the Fund. As manager, we manage the overall business and any costs of investing. operations of the Fund. As trustee, we hold legal title to the

1 HSBC U.S. Equity Pooled Fund property of the Fund on your behalf. As primary investment HSBC U.S. Equity Pooled Fund – Net Assets per advisor, we provide investment advice and portfolio Unit(1) management services to the Fund. We receive a fee from the Fund for these services based on assets under management, Year(s) ended December 31 calculated daily and paid monthly. 2020 2019 2018 2017 2016 We have entered into a sub-advisory agreement with HSBC Net assets per unit, beginning of Global Asset Management (UK) Limited, an affiliate, under year (2) $28.86 $24.11 $25.80 $24.09 $21.70 which HSBC Global Asset Management (UK) Limited provides Increase (decrease) from investment advice and portfolio management services to the operations: Fund. We pay HSBC Global Asset Management (UK) Limited a Total revenue 0.58 0.61 0.55 0.51 0.44 fee based on assets under management, calculated daily and Total expenses (0.02) (0.02) (0.01) (0.01) (0.01) paid quarterly. To proceed with this transaction, the Fund relied Realized gains (losses) (0.20) 1.14 1.11 0.84 0.69 on the positive recommendation of the Fund’s Independent Unrealized gains (losses) 0.94 3.52 (2.14) 1.00 1.71 Review Committee. For more information on our ability to hire Total increase (decrease) from sub-advisors, see the section Organization and management of operations (2) $1.30 $5.25 $(0.49) $2.34 $2.83 the Funds in the Fund’s Simplified Prospectus. Distributions to unitholders: From net investment income Distribution Services (excluding dividends) – – – – – The Fund is distributed through us and HSBC Investment Funds From dividends (0.61) (0.60) (0.55) (0.58) (0.53) (Canada) Inc. (our wholly owned subsidiary). We may pay From capital gains – – (0.60) – – distribution and servicing fees to our related party distributor Return of capital – – – – – based on the value of the units held in the investor’s account, and additionally, in some cases, on the amount of the Total annual distributions (2,3) $(0.61) $(0.60) $(1.15) $(0.58) $(0.53) initial purchase. Net assets per unit at December 31 of year shown (2) $29.65 $28.86 $24.11 $25.80 $24.09 Purchases of Securities Underwritten by a Related Party 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 Ratios and Supplemental Data proceed with these transactions, the Fund relies on the approval of the Fund’s Independent Review Committee by way 2020 2019 2018 2017 2016 of Standing Instruction. A condition of this approval is that the Total net asset value transactions are performed in accordance with our policy on (in 000s) (4) $976,989 $971,037 $763,230 $764,904 $663,825 Purchases of Securities Underwritten by a Related Party. During Number of units the year, the Fund did not invest in any such securities. outstanding (in 000s) (4) 32,946 33,648 31,652 29,648 27,558 Financial Highlights Management The following tables show selected key financial information expense ratio about the Fund and are intended to help you understand the ("MER") (5) 0.06% 0.06% 0.03% 0.05% 0.04% Fund’s financial performance for the past five years. This MER before waivers information is derived from the Fund’s audited annual financial or absorptions (5) 0.06% 0.06% 0.03% 0.05% 0.04% statements. The information in the following tables is based on Trading expense prescribed regulations, and, as a result, is not expected to add ratio (6) 0.01% 0.01% 0.01% 0.01% 0.02% down due to the increase/decrease in net assets from Portfolio turnover operations being based on average units outstanding during the rate (7) 30.92% 24.36% 29.50% 27.79% 26.51% year and all other numbers being based on actual units Net asset value per outstanding at the relevant point in time. unit (4) $29.65 $28.86 $24.11 $25.80 $24.09 (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial

2 HSBC U.S. Equity Pooled Fund

Reporting Standards (“IFRS”). Under IFRS, the net assets per unit Year-by-Year Returns presented in the financial statements is the same as the net asset value calculated for fund pricing purposes. Years ended December 31 The following bar chart shows the Fund’s annual performance (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding at the relevant time. The for each of the years shown, and illustrates how the Fund’s increase/decrease in net assets from operations per unit is based on performance changed from year to year. In percentage terms, the weighted average number of units outstanding over the the bar chart shows how much an investment made on the first fiscal year. day of each financial year would have grown or decreased by (3) Distributions are automatically reinvested in additional units of the the last day of each financial year. Fund, unless the unitholder withdraws from the automatic reinvestment plan by providing written notice to us. Annual Returns

(4) This information is provided as at December 31 of the year shown. 60% (5) MER is based on total expenses (excluding distributions, 47.2% commissions and other portfolio transaction costs) for the stated 50% year and is expressed as an annualized percentage of daily average 40% net asset value during the year. The MER may vary from one mutual fund to another. 30% 22.4% 22.1% (6) The trading expense ratio represents total commissions and other 20% 15.8% portfolio transaction costs expressed as an annualized percentage 13.4% 9.7% 9.5% of daily average net asset value during the year. 10% 4.9% (7) 0.6% The Fund’s portfolio turnover rate indicates how actively the Fund’s 0% portfolio advisor manages its portfolio investments. A portfolio -1.9% turnover rate of 100% is equivalent to the Fund buying and selling -10% all of the securities in its portfolio once in the course of the year. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 The higher the Fund’s portfolio turnover rate in a year, the greater 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate Annual Compound Returns and the performance of the Fund. The rate is calculated based on Year ended December 31, 2020 the lesser of purchases or sales of securities divided by the average The following table shows the Fund’s historical annual weighted market value of the portfolio securities, excluding short- term securities. compound total returns for the years indicated, compared with the benchmark index, the Russell 1000 Total Return Index (in Management Fees Canadian dollars), over the same period. This index measures For the year ended December 31, 2020, the Fund did not pay the performance of large-cap stocks of the US equity universe, management fees. You pay us, HSBC Investment Funds representing a broad range of industries. This index is tracked (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or in US dollars and was converted to Canadian dollars. your approved advisor a management fee that is based on the 1 Year 3 Year 5 Year 10 Year amount you have invested with us or your approved advisor (which may be subject to certain minimum annual fees). It is HSBC U.S. Equity Pooled Fund 4.87% 7.90% 9.30% 13.63% negotiated between you and us, HSBC Investment Funds Russell 1000 TR Index (C$) 18.84% 15.46% 13.61% 16.88% (Canada) Inc. or your approved advisor. Further details can be (1) Due to the fact that several benchmark indices are only available on found in the Fund’s Simplified Prospectus. a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- Management fees paid to us were used to pay costs for end date each Fund was in operation. managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, (2) For investment commentary and relative performance of the Fund making brokerage arrangements for the purchase and sale of compared to its benchmark, please refer to the Results of Operations the investment portfolio and providing other services. The section of this report. 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. For the year ended December 31, 2020, approximately 37% of the total management fees paid to us for all HSBC Pooled Funds were used to fund distribution costs. Past Performance The performance information shown assumes that all distributions made by the Fund in the years shown were 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 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 U.S. Equity Pooled Fund

Summary of Investment Portfolio As at December 31, 2020

Sector Mix Percentage of NAV

Information Technology 21.86% Consumer Discretionary 13.24% Financials 13.00% Health Care 11.81% Industrials 11.58% Communication Services 9.24% Consumer Staples 7.93% Materials 3.36% Energy 3.33% Real Estate 2.25% Utilities 1.99% Investment Funds 0.15% Cash & Equivalents 0.26% Total 100.00%

Top 25 Holdings Percentage of NAV

Apple Inc. 3.94% Microsoft Corp. 2.84% Amazon.com Inc. 2.43% Alphabet Inc. 1.78% Walmart Inc. 1.78% JPMorgan Chase & Co. 1.27% Berkshire Hathaway Inc., Class B 1.13% Facebook Inc. 1.07% AT&T Inc. 0.98% Bank of America Corp. 0.98% Johnson & Johnson 0.95% The Walt Disney Co. 0.92% Wells Fargo & Co. 0.89% Verizon Communications Inc. 0.88% General Electric Co. 0.86% The Home Depot Inc. 0.81% UnitedHealth Group Inc. 0.81% Tesla Inc. 0.77% The Procter & Gamble Co. 0.75% Comcast Corp., Class A 0.69% Exxon Mobil Corp. 0.68% Citigroup Inc. 0.66% PepsiCo Inc. 0.65% Visa Inc., Class A 0.65% Accenture PLC, A-Shares 0.63% Total of Top 25 Holdings 29.80%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

4 HSBC U.S. Equity Pooled Fund

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 get a copy of these documents at no cost by calling us 3rd 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

HSBC International Equity Pooled Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC International Equity Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Global equity markets gained in 2020 despite the generalized Fund; we, us and our refer to HSBC Global Asset Management sell-off in the first quarter amid the worldwide spread of COVID (Canada) Limited; and the Fund refers to the HSBC International 19 and steep deterioration in the global economic outlook. Equity Pooled Fund. Markets rebounded in the second quarter and continued their positive performance over the remainder of the year, buoyed by We are the manager, trustee and primary investment advisor of unprecedented policy responses from central banks and the Fund. We have hired HSBC Global Asset Management finance ministries, the easing of COVID-19 lockdowns, and (UK) Limited as a sub-advisor to provide portfolio management growing investor optimism. and investment advisory services to the Fund. For an explanation of the relationship between us and the sub-advisor, The Fund underperformed its benchmark in 2020, with asset see the section Selection of Sub-Advisors in the Fund’s allocation and stock selection weighing on performance. On a Simplified Prospectus. sector basis, overweight allocations to utilities und communication services and underweight exposures to real Introduction estate and financials contributed to performance. Conversely, This Annual Management Report of Fund Performance contains an overweight allocation to energy and underweight exposures financial highlights but does not contain the complete annual to health care and information technology weighed on performance. financial statements of the Fund. You may obtain a copy of the annual financial statements at your request, at no cost, by On a country basis, overweight allocations to Germany and calling us toll-free at 1-888-390-3333, by visiting our website at Sweden and an underweight exposure to the United Kingdom www.assetmanagement.hsbc.ca, by visiting the SEDAR contributed to performance. Conversely, overweight allocations website at www.sedar.com or by writing to us at: to Spain and France and underweight exposures to Switzerland and Denmark weighed on performance. HSBC Global Asset Management (Canada) Limited 3rd Floor, 885 West Georgia Street Recent Developments Vancouver, BC V6C 3E8 Throughout the period, the Fund continued to follow the HSBC You may also contact us using one of these methods to request a Economic Scale investment strategy which uses a systematic rebalancing approach that regularly re-evaluates stock weights copy of the Fund’s interim financial report, proxy voting policies and allocation. The strategy aims to take advantage of excess and procedures, proxy voting disclosure record or quarterly volatility in market prices to add excess return while delivering portfolio disclosure. the equity market premium. Investment Objective and Strategies The Fund’s investment strategy, however, will change on or The fundamental investment objective of this Fund is to provide around March 26, 2021 to a fundamentally driven investment long-term capital growth. approach which seeks to invest in sustainably growing businesses with enduring competitive advantages, attractive To achieve its objectives, the Fund invests primarily in equities returns on capital, and robust financial profiles. The investment and equity-related securities issued by non-North American strategy seeks long-term ownership of such businesses and the companies. To maintain a diversified portfolio of holdings, the portfolio is expected to be a concentrated but fundamentally Fund will invest in companies from a broad range of industries. diversified selection of the highest conviction investments A portion of the Fund may be in the form of cash or within the investable universe. The Fund will continue to be cash equivalents. managed by HSBC Global Asset Management (UK) Limited, however, the Global Equity investment team will take over Risk management from the Systematic Equity investment team. The risks of investing in the Fund remain as discussed in the During the period there has been a change in composition to Simplified Prospectus. During the year, there were no material the Independent Review Committee (the “IRC”). Effective changes to the Fund that affected the overall risk level of March 25, 2020, Ms. Louise Tymocko was appointed to the IRC the Fund. as a member, replacing Mr. William (Bill) Bakk who left as his term of office expired. Ms. Lisa Pankratz also took over as Chair This Fund is suitable for investors who want to achieve long of the IRC effective March 25, 2020. In addition, effective term capital growth from equity securities issued in non-North February 18, 2021, Ms. Sharon Morrisroe was also appointed to American markets. Investors should have a long-term the IRC as a member, replacing Mr. Neil de Gelder who left investment time horizon and a medium tolerance for risk in following the expiry of his term in March of 2021. their returns. Related Party Transactions Results of Operations We, on behalf of the Fund, or the Fund Manager, may, from As of December 31, 2020, the Fund's net assets decreased by time to time, enter into transactions or arrangements with or 7.5% to $699.9 million from $756.5 million at the end of 2019. involving other members of the HSBC Group or other people or Net withdrawals and negative investment performance resulted companies related or connected to us or the Fund. To proceed in an overall decrease in net asset value. with the transactions, the Fund relies on the positive recommendation of the Fund’s Independent Review Committee. A Investment Performance condition of this positive recommendation is that the transactions The HSBC International Equity Pooled Fund fell 0.92% for the are performed in accordance with our policy on Related Party 12 months ending December 31, 2020, while the benchmark Transactions. For more general information on persons related to the Fund and the types of potential transactions, see the MSCI EAFE Net Total Return Index (C$) rose 5.92% over the Fund’s Simplified Prospectus. same period. The Fund’s returns are after the deduction of fees and expenses, while the benchmark’s returns do not include The following is a summary of current transactions and any costs of investing. arrangements with entities that are related to us or the Fund.

1 HSBC International Equity Pooled Fund

Manager, Trustee and Investment Advisor HSBC International Equity Pooled Fund – Net We are the manager, trustee and primary investment advisor of Assets per Unit(1) the Fund. As manager, we manage the overall business and Year(s) ended December 31 operations of the Fund. As trustee, we hold legal title to the property of the Fund on your behalf. As primary investment 2020 2019 2018 2017 2016 advisor, we provide investment advice and portfolio Net assets per unit, beginning of management services to the Fund. We receive a fee from the year (2) $16.16 $14.92 $16.46 $14.27 $14.54 Fund for these services based on assets under management, calculated daily and paid monthly. Increase (decrease) from operations: We have entered into a sub-advisory agreement with HSBC Total revenue 0.37 0.54 0.50 0.47 0.37 Global Asset Management (UK) Limited, an affiliate, under Total expenses (0.02) (0.02) (0.02) (0.02) (0.01) which HSBC Global Asset Management (UK) Limited provides Realized gains (losses) (0.53) 0.31 0.38 0.57 0.09 investment advice and portfolio management services to the Unrealized gains (losses) (0.14) 0.94 (1.99) 1.63 (0.29) Fund. We pay HSBC Global Asset Management (UK) Limited a Total increase (decrease) from fee based on assets under management, calculated daily and operations (2) $(0.32) $1.77 $(1.13) $2.65 $0.16 paid quarterly. For more information on our ability to hire sub- advisors, see the section Organization and management of the Distributions to unitholders: From net investment income Funds in the Fund’s Simplified Prospectus. (excluding dividends) – – – – – From dividends (0.37) (0.53) (0.48) (0.44) (0.40) Distribution Services From capital gains – – – – – The Fund is distributed through us and HSBC Investment Funds Return of capital – – – – – (Canada) Inc. (our wholly owned subsidiary). We may pay distribution and servicing fees to our related party distributor Total annual distributions (2,3) $(0.37) $(0.53) $(0.48) $(0.44) $(0.40) based on the value of the units held in the investor’s account, Net assets per unit at December and additionally, in some cases, on the amount of the 31 of year shown (2) $15.64 $16.16 $14.92 $16.46 $14.27 initial purchase. Purchases of Securities Underwritten by a Related Party Ratios and Supplemental Data 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 2020 2019 2018 2017 2016 proceed with these transactions, the Fund relies on the Total net asset value approval of the Fund’s Independent Review Committee by way (in 000s) (4) $699,917 $756,454 $708,002 $703,100 $555,803 of Standing Instruction. A condition of this approval is that the Number of units transactions are performed in accordance with our policy on outstanding (in Purchases of Securities Underwritten by a Related Party. During 000s) (4) 44,762 46,820 47,439 42,716 38,947 the year, the Fund did not invest in any such securities. Management expense ratio Investments in Securities of Related Parties ("MER") (5) 0.13% 0.14% 0.11% 0.10% 0.10% In accordance with Canadian securities legislation and policies MER before waivers set out by our Independent Review Committee, the Fund may or absorptions (5) 0.13% 0.14% 0.11% 0.10% 0.10% invest its assets in the securities of companies related to the Trading expense Fund’s investment advisor or sub-advisor. During the period, ratio (6) 0.04% 0.05% 0.05% 0.04% 0.04% the Fund held, purchased or sold shares in HSBC Holdings plc Portfolio turnover (our ultimate parent company) and Hang Seng Bank, which rate (7) 31.77% 35.18% 33.03% 31.24% 28.52% represented 0.73% and 0.08% of the Fund’s assets, Net asset value per respectively, as at December 31, 2020. unit (4) $15.64 $16.16 $14.92 $16.46 $14.27 (1) This information is derived from the Fund’s audited annual financial Financial Highlights statements. All balances are stated in International Financial The following tables show selected key financial information about the Fund and are intended to help you understand the Fund’s financial performance for the past five years. This information is derived from the Fund’s audited annual financial statements. The information in the following tables is based on prescribed regulations, and, as a result, is not expected to add down due to the increase/decrease in net assets from operations being based on average units outstanding during the year and all other numbers being based on actual units outstanding at the relevant point in time.

2 HSBC International Equity Pooled Fund

(4) This information is provided as at December 31 of the year shown. 50% (5) MER is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated 40% 34.6% year and is expressed as an annualized percentage of daily average 30% net asset value during the year. The MER may vary from one mutual fund to another. 20% 17.5% 18.5% 18.4% 11.8% (6) The trading expense ratio represents total commissions and other 10% 4.4% portfolio transaction costs expressed as an annualized percentage 0.8% of daily average net asset value during the year. 0% (7) -0.9% The Fund’s portfolio turnover rate indicates how actively the Fund’s -10% portfolio advisor manages its portfolio investments. A portfolio -9.0% -6.4% turnover rate of 100% is equivalent to the Fund buying and selling -20% all of the securities in its portfolio once in the course of the year. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 The higher the Fund’s portfolio turnover rate in a year, the greater 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate Annual Compound Returns and the performance of the Fund. The rate is calculated based on Year ended December 31, 2020 the lesser of purchases or sales of securities divided by the average The following table shows the Fund’s historical annual weighted market value of the portfolio securities, excluding short- term securities. compound total returns for the years indicated, compared with the benchmark index, the MSCI EAFE Net Total Return Index (in Management Fees Canadian dollars), over the same period. This index measures For the year ended December 31, 2020, the Fund did not pay the performance of the stocks traded on various exchanges management fees. You pay us, HSBC Investment Funds across Europe, Australasia and the Far East. This index is (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or tracked in US dollars and was converted to Canadian dollars. your approved advisor a management fee that is based on the 1 Year 3 Year 5 Year 10 Year amount you have invested with us or your approved advisor (which may be subject to certain minimum annual fees). It is HSBC International Equity Pooled Fund -0.92% 1.19% 4.35% 8.22% negotiated between you and us, HSBC Investment Funds MSCI EAFE Net TR Index (C$) 5.92% 4.86% 5.61% 8.16% (Canada) Inc. or your approved advisor. Further details can be (1) Due to the fact that several benchmark indices are only available on found in the Fund’s Simplified Prospectus. a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- Management fees paid to us were used to pay costs for end date each Fund was in operation. managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, (2) For investment commentary and relative performance of the Fund making brokerage arrangements for the purchase and sale of compared to its benchmark, please refer to the Results of Operations the investment portfolio and providing other services. The section of this report. 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. For the year ended December 31, 2020, approximately 37% of the total management fees paid to us for all HSBC Pooled Funds were used to fund distribution costs. Past Performance The performance information shown assumes that all distributions made by the Fund in the years shown were 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 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 International Equity Pooled Fund

Summary of Investment Portfolio Top 25 Holdings As at December 31, 2020 Percentage of NAV Sector Mix Nestlé SA 1.43% Percentage Roche Holding AG 1.09% of NAV Toyota Motor Corp. 1.07% Royal Dutch Shell PLC 0.98% Financials 16.65% iShares MSCI EAFE ETF 0.95% Industrials 16.25% Novartis AG 0.94% Consumer Discretionary 12.78% Volkswagen AG, Preferred 0.90% Consumer Staples 10.12% Siemens AG 0.88% Health Care 9.88% LVMH Moet Hennessy Louis Vuitton SA 0.79% Materials 7.69% HSBC Holdings PLC 0.74% Information Technology 7.04% Nippon Telegraph & Telephone Corp. 0.71% Communication Services 6.87% Unilever PLC 0.71% Utilities 4.79% ASML Holding NV 0.70% Energy 4.33% SAP SE 0.70% Real Estate 2.13% Total SE 0.66% Investment Funds 0.95% BP PLC 0.65% Cash & Equivalents 0.52% Deutsche Telekom AG 0.62% Total 100.00% Sanofi 0.60% Deutsche Post AG 0.58% Geographic Mix SoftBank Group Corp. 0.57% Sony Corp. 0.57% Percentage AstraZeneca PLC 0.54% of NAV BASF SE 0.54% Japan 24.04% AIA Group Ltd. 0.52% United Kingdom 13.15% Novo Nordisk A/S 0.52% France 12.25% Total of Top 25 Holdings 18.96% Germany 11.34% Switzerland 7.51% Australia 5.25% Netherlands 4.81% Spain 3.34% Sweden 3.06% Italy 2.45% Hong Kong 2.14% Denmark 1.84% Singapore 1.32% Finland 1.12% Belgium 1.05% Investment Funds 0.95% Norway 0.78% Ireland 0.62% Israel 0.46% Cayman Islands 0.43% Luxembourg 0.40% Austria 0.35% Portugal 0.27% New Zealand 0.20% Jersey 0.15% Bermuda 0.13% Isle of Man 0.04% Papua New Guinea 0.03% Cash & Equivalents 0.52% Total 100.00%

4 HSBC International Equity Pooled Fund

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 get a copy of these documents at no cost by calling us 3rd 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

HSBC Emerging Markets Pooled Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Emerging Markets Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the Emerging market equities gained in 2020 despite a negative Fund; we, us and our refer to HSBC Global Asset Management first half of the year. In the first quarter, emerging market stocks (Canada) Limited; and the Fund refers to the HSBC Emerging sold off strongly as volatility surged to record levels and Markets Pooled Fund. investor sentiment became increasingly risk averse amid the COVID-19 global pandemic, lockdown measures and a We are the manager, trustee and primary investment advisor of deteriorating global economic outlook. However, co-ordinated the Fund. We have hired HSBC Global Asset Management response measures from central banks and finance ministries to (UK) Limited as a sub-advisor to provide portfolio management ease monetary policy and provide unprecedented fiscal and investment advisory services to the Fund. For an stimulus led to a rebound in emerging market equities in the explanation of the relationship between us and the sub-advisor, second quarter onwards. A weaker US dollar also amplified see the section Selection of Sub-Advisors in the Fund’s emerging market equity returns starting in the second quarter. Simplified Prospectus. The Fund underperformed its benchmark, with sector and Introduction country allocations detracting from performance. On a sector This Annual Management Report of Fund Performance contains basis, an overweight exposure to materials and underweight financial highlights but does not contain the complete annual exposure to real estate and communication services financial statements of the Fund. You may obtain a copy of the contributed to performance, while overweight allocations to annual financial statements at your request, at no cost, by energy and financials and an underweight exposure to calling us toll-free at 1-888-390-3333, by visiting our website at consumer discretionary, information technology and health care www.assetmanagement.hsbc.ca, by visiting the SEDAR weighed on performance. website at www.sedar.com or by writing to us at: On a country and territory basis, overweight allocations to HSBC Global Asset Management (Canada) Limited mainland China and Indonesia and underweight exposures to 3rd Floor, 885 West Georgia Street Brazil, South Africa, the Philippines and Saudi Arabia Vancouver, BC V6C 3E8 contributed to performance. Conversely, overweight allocations to Russia, Chile and Colombia and underweight exposures to You may also contact us using one of these methods to request a Taiwan and Korea weighed on performance. copy of the Fund’s interim financial report, proxy voting policies and procedures, proxy voting disclosure record or quarterly Recent Developments portfolio disclosure. Throughout the period, the Fund continued to follow the HSBC Economic Scale investment strategy which uses a systematic Investment Objective and Strategies rebalancing approach that regularly re-evaluates stock weights The fundamental investment objective of this Fund is to provide and allocation. The strategy aims to take advantage of excess long-term capital growth. volatility in market prices to add excess return while delivering To achieve its objectives, the Fund will invest primarily in the equity market premium. securities that provide exposure to equity and equity-related The Fund’s investment strategy, however, will change on or securities of actively traded companies registered, or with an around March 26, 2021 to a strategy that selects stocks with a official listing, on a stock exchange in emerging market focus on company fundamentals balanced by top-down factors countries around the world. The Fund may invest in equity- including investment megatrends, politics, fiscal picture, related securities including, but not limited to, warrants, inflation, and monetary policy. The Fund will continue to be American depositary receipts and global depositary receipts. managed by HSBC Global Asset Management (UK) Limited, however, the Global Emerging Markets Equity investment team Risk will take over management from the Systematic Equity The risks of investing in the Fund remain as discussed in the investment team. Simplified Prospectus. During the year, there were no material changes to the Fund that affected the overall risk level of During the period there has been a change in composition to the Fund. the Independent Review Committee (the “IRC”). Effective March 25, 2020, Ms. Louise Tymocko was appointed to the IRC This Fund is suitable for investors seeking long-term capital as a member, replacing Mr. William (Bill) Bakk who left as his growth from equity securities issued in emerging markets. term of office expired. Ms. Lisa Pankratz also took over as Chair Investors in this Fund should have a long-term investment time of the IRC effective March 25, 2020. In addition, effective horizon and a medium to high tolerance for risk in their returns. February 18, 2021, Ms. Sharon Morrisroe was also appointed to the IRC as a member, replacing Mr. Neil de Gelder who left Results of Operations following the expiry of his term in March of 2021. As of December 31, 2020, the Fund's net assets decreased by 17.3% to $147.7 million from $178.7 million at the end of 2019. Related Party Transactions Net withdrawals and negative investment performance resulted We, on behalf of the Fund, or the Fund Manager, may, from time to time, enter into transactions or arrangements with or in an overall decrease in net asset value. involving other members of the HSBC Group or other people or companies related or connected to us or the Fund. To proceed Investment Performance with the transactions, the Fund relies on the positive The HSBC Emerging Markets Pooled Fund fell 0.73% for the 12 recommendation of the Fund’s Independent Review Committee. A months ending December 31, 2020, while the benchmark MSCI condition of this positive recommendation is that the transactions Emerging Markets Net Index (C$) rose 16.23% over the same are performed in accordance with our policy on Related Party period. The Fund’s returns are after the deduction of fees and Transactions. For more general information on persons related expenses, while the benchmark’s returns do not include any to the Fund and the types of potential transactions, see the costs of investing. Fund’s Simplified Prospectus.

1 HSBC Emerging Markets Pooled Fund

The following is a summary of current transactions and HSBC Emerging Markets Pooled Fund – Net arrangements with entities that are related to us or the Fund. Assets per Unit(1) Manager, Trustee and Investment Advisor Year(s) ended December 31 We are the manager, trustee and primary investment advisor of 2020 2019 2018 2017 2016 the Fund. As manager, we manage the overall business and Net assets per unit, beginning of operations of the Fund. As trustee, we hold legal title to the year (2) $10.61 $10.60 $11.31 $9.78 $8.71 property of the Fund on your behalf. As primary investment advisor, we provide investment advice and portfolio Increase (decrease) from management services to the Fund. We receive a fee from the operations: Fund for these services based on assets under management, Total revenue 0.31 0.42 0.40 0.34 0.31 calculated daily and paid monthly. Total expenses (0.04) (0.05) (0.05) (0.05) (0.04) Realized gains (losses) (0.87) 0.25 0.19 0.43 (0.09) We have entered into a sub-advisory agreement with HSBC Unrealized gains (losses) 0.19 (0.01) (0.80) 1.09 1.24 Global Asset Management (UK) Limited, an affiliate, under Total increase (decrease) from which HSBC Global Asset Management (UK) Limited provides operations (2) $(0.41) $0.61 $(0.26) $1.81 $1.42 investment advice and portfolio management services to the Fund. We pay HSBC Global Asset Management (UK) Limited a Distributions to unitholders: From net investment income fee based on assets under management, calculated daily and (excluding dividends) – – – – – paid quarterly. To proceed with this transaction, the Fund relied From dividends (0.31) (0.38) (0.33) (0.28) (0.28) on the positive recommendation of the Fund’s Independent From capital gains – (0.29) (0.20) – – Review Committee. For more information on our ability to hire Return of capital – – – – – sub-advisors, see the section Organization and management of the Funds in the Fund’s Simplified Prospectus. Total annual distributions (2,3) $(0.31) $(0.67) $(0.53) $(0.28) $(0.28) Net assets per unit at December 31 Distribution Services of year shown (2) $10.23 $10.61 $10.60 $11.31 $9.78 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, and additionally, in some cases, on the amount of the 2020 2019 2018 2017 2016 initial purchase. Total net asset value (in 000s) (4) $147,700 $178,714 $169,444 $158,066 $124,674 Purchases of Securities Underwritten by a Related Party Number of units The Fund may invest in certain securities that are underwritten, outstanding (in in whole or in part, by entities that are a related party to us. To 000s) (4) 14,445 16,838 15,992 13,976 12,744 proceed with these transactions, the Fund relies on the Management approval of the Fund’s Independent Review Committee by way expense ratio of Standing Instruction. A condition of this approval is that the ("MER") (5) 0.47% 0.48% 0.49% 0.52% 0.41% transactions are performed in accordance with our policy on MER before waivers Purchases of Securities Underwritten by a Related Party. During or absorptions (5) 0.47% 0.48% 0.49% 0.52% 0.41% the year, the Fund did not invest in any such securities. Trading expense ratio (6) 0.08% 0.10% 0.07% 0.07% 0.06% Investments in Securities of Related Parties Portfolio turnover In accordance with Canadian securities legislation and policies rate (7) 34.37% 49.04% 38.82% 40.09% 38.01% set out by our Independent Review Committee, the Fund may Net asset value per invest its assets in the securities of companies related to the unit (4) $10.23 $10.61 $10.60 $11.31 $9.78 Fund’s investment advisor or sub-advisor. During the period, (1) This information is derived from the Fund’s audited annual financial the Fund held, purchased or sold shares in Bank of statements. All balances are stated in International Financial Communications (Cl H), Industrial Bank Co Ltd (A) CNY, Shui On Land Limited, Saudi British Bank and Bank of Communications CO-A, which represented 0.18%, 0.34%, 0.01%, 0.06% and 0.01% of the Fund’s assets, as at December 31, 2020. Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund’s financial performance for the past five years. This information is derived from the Fund’s audited annual financial statements. The information in the following tables is based on prescribed regulations, and, as a result, is not expected to add down due to the increase/decrease in net assets from operations being based on average units outstanding during the year and all other numbers being based on actual units outstanding at the relevant point in time.

2 HSBC Emerging Markets Pooled Fund

(4) This information is provided as at December 31 of the year shown. 30% (5) MER is based on total expenses (excluding distributions, 18.5% commissions and other portfolio transaction costs) for the stated 20% 15.6% year and is expressed as an annualized percentage of daily average 12.7% 8.3% net asset value during the year. The MER may vary from one 10% 5.2% 6.5% mutual fund to another. 0% (6) The trading expense ratio represents total commissions and other -1.6% -0.7% portfolio transaction costs expressed as an annualized percentage -4.7% of daily average net asset value during the year. -10% (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s -20% portfolio advisor manages its portfolio investments. A portfolio -19.9% turnover rate of 100% is equivalent to the Fund buying and selling -30% all of the securities in its portfolio once in the course of the year. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 The higher the Fund’s portfolio turnover rate in a year, the greater 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate Annual Compound Returns and the performance of the Fund. The rate is calculated based on Year ended December 31, 2020 the lesser of purchases or sales of securities divided by the average The following table show the Fund’s historical annual weighted market value of the portfolio securities, excluding short- term securities. compound total returns for the years indicated, compared with the benchmark index, the MSCI Emerging Markets Net Management Fees Index (C$), over the same period. This index measures the For the year ended December 31, 2020, the Fund did not pay performance of stocks traded in emerging markets such as management fees. You pay us, HSBC Investment Funds Brazil, Mexico, Indonesia and Malaysia. This index is tracked in (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or US dollars and was converted to Canadian dollars. your approved advisor a management fee that is based on the 1 Year 3 Year 5 Year 10 Year amount you have invested with us or your approved advisor (which may be subject to certain minimum annual fees). It is HSBC Emerging Markets Pooled Fund -0.73% 1.34% 7.34% 3.39% negotiated between you and us, HSBC Investment Funds MSCI Emerging Markets Net Index (C$) 16.23% 6.76% 10.87% 6.23% (Canada) Inc. or your approved advisor. Further details can be (1) Due to the fact that several benchmark indices are only available on found in the Fund’s Simplified Prospectus. a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- Management fees paid to us were used to pay costs for end date each Fund was in operation. managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, (2) For investment commentary and relative performance of the Fund making brokerage arrangements for the purchase and sale of compared to its benchmark, please refer to the Results of Operations the investment portfolio and providing other services. The section of this report. 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. For the year ended December 31, 2020, approximately 37% of the total management fees paid to us for all HSBC Pooled Funds were used to fund distribution costs. Past Performance The performance information shown assumes that all distributions made by the Fund in the years shown were 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 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 Emerging Markets Pooled Fund

Summary of Investment Portfolio Geographic Mix As at December 31, 2020 Percentage of NAV Sector Mix Czech Republic 0.18% Percentage Netherlands 0.14% of NAV Greece 0.11% Pakistan 0.10% Financials 21.25% Argentina 0.08% Information Technology 17.49% Egypt 0.08% Consumer Discretionary 11.83% Luxembourg 0.08% Communication Services 11.16% Jersey 0.06% Energy 10.30% United States 0.03% Materials 9.51% Isle of Man 0.02% Consumer Staples 5.99% Singapore 0.00% Industrials 5.62% Investment Funds 0.00% Health Care 2.67% Cash & Equivalents -0.30% Utilities 2.56% Total 100.00% Real Estate 1.92% Investment Funds 0.00% Cash & Equivalents -0.30% Top 25 Holdings Total 100.00% Percentage of NAV Geographic Mix Taiwan Semiconductor Manufacturing Co., Ltd. 3.84% Percentage Samsung Electronics Co., Ltd. 3.49% of NAV Tencent Holdings Ltd. 3.04% Alibaba Group Holding Ltd., ADR 2.98% China 30.54% Industrial & Commercial Bank of China Ltd. 1.18% India 11.29% China Construction Bank Corp. 1.16% South Korea 10.88% PetroChina Co., Ltd. 1.15% Taiwan 10.32% Petroleo Brasileiro SA, Preferred 1.13% Brazil 5.97% Infosys Ltd. 1.08% Cayman Islands 5.07% Ping An Insurance (Group) Co., of China Ltd. 1.02% Russia 4.32% Tata Consultancy Services Ltd. 1.02% South Africa 3.32% Gazprom 0.98% Saudi Arabia 2.59% China Petroleum & Chemical Corp. 0.93% Mexico 2.27% Meituan 0.93% Hong Kong 2.10% China Mobile Ltd. 0.80% Thailand 2.03% Vale SA 0.74% Malaysia 1.68% Hon Hai Precision Industry Co., Ltd. 0.72% Indonesia 1.63% Sberbank of Russia, GDR 0.67% Chile 0.82% Bank of China Ltd. 0.66% Turkey 0.80% Naspers Ltd. 0.64% Poland 0.79% Reliance Industries Ltd. 0.64% Philippines 0.67% Agricultural Bank of China Ltd. 0.59% Qatar 0.62% Saudi Basic Industries Corp. 0.57% United Arab Emirates 0.53% SK Hynix Inc. 0.56% Colombia 0.42% JD.com Inc. 0.55% Bermuda 0.31% Total of Top 25 Holdings 31.07% Peru 0.23% Hungary 0.22%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

4 HSBC Emerging Markets Pooled Fund

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 get a copy of these documents at no cost by calling us 3rd 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

HSBC Global Real Estate Equity Pooled Fund

Annual Management Report of Fund Performance for the year ended December 31, 2020

HSBC Global Real Estate Equity Pooled Fund

Management Discussion of Fund Performance In this document, you and your refer to the unitholder of the After significant price falls in March 2020 due to COVID-19, the Fund; we, us and our refer to HSBC Global Asset Management real estate equity market staged a partial recovery, boosted in (Canada) Limited; and the Fund refers to the HSBC Global Real November by positive news of effective vaccines. However, the Estate Equity Pooled Fund. market remains below pre-COVID-19 levels and has lagged wider equities. We are the manager, trustee and primary investment advisor of the Fund. We have hired HSBC Global Asset Management Positive contributors to the Fund’s performance included (UK) Limited as a sub-advisor to provide portfolio management overweight positions in logistics REITs (Duke Realty (US) and and investment advisory services to the Fund. For an GLP J-REIT (Japan)), which benefited from strong demand explanation of the relationship between us and the sub-advisor, boosted by higher levels of e-commerce. Overweight positions see the section Selection of Sub-Advisors in the Fund’s to German residential stocks Deutsche Wohnen and LEG Simplified Prospectus. Immobilien also contributed to performance, with landlords reporting limited impact from COVID-19 and cash flows Introduction supported by rent backed by the government if tenants This Annual Management Report of Fund Performance contains become unemployed. financial highlights but does not contain the complete annual Detractors from performance included overweight positions to financial statements of the Fund. You may obtain a copy of the US office REITs Douglas Emmett and Hudson Pacific annual financial statements at your request, at no cost, by Properties, which underperformed due to weakening calling us toll-free at 1-888-390-3333, by visiting our website at fundamentals. Some retail-focused stocks also detracted. www.assetmanagement.hsbc.ca, by visiting the SEDAR website at www.sedar.com or by writing to us at: The Fund initiated positions in Japanese apartment REIT Advance Residence Investment Corp., US datacentre REIT HSBC Global Asset Management (Canada) Limited CyrusOne, US industrial REIT First Industrial, European 3rd Floor, 885 West Georgia Street industrial REIT Warehouses De Pauw, Germany-focused Vancouver, BC V6C 3E8 residential stock Vonovia and Swedish office-focused company You may also contact us using one of these methods to request a Castellum. copy of the Fund’s interim financial report, proxy voting policies The Fund exited positions in Vornado, SL Green, Unibail and procedures, proxy voting disclosure record or quarterly Rodamco-Westfield and Scentre Group. portfolio disclosure. Investment Objective and Strategies Recent Developments The Fund aims to capture the long-term performance of The fundamental investment objective of this Fund is to achieve income-producing real estate by investing in global real estate long-term total return. equities. The Fund focuses on real estate equities with larger To achieve its objectives, the Fund invests principally in equity market capitalizations, a bias towards recurring income (rather and equity-related securities of companies or entities related to than stocks biased towards development) and lower leverage. the real estate industry and located around the world. During the period there has been a change in composition to Risk the Independent Review Committee (the “IRC”). Effective March 25, 2020, Ms. Louise Tymocko was appointed to the IRC The risks of investing in the Fund remain as discussed in the as a member, replacing Mr. William (Bill) Bakk who left as his Simplified Prospectus. During the year, there were no material term of office expired. Ms. Lisa Pankratz also took over as Chair changes to the Fund that affected the overall risk level of of the IRC effective March 25, 2020. In addition, effective the Fund. February 18, 2021, Ms. Sharon Morrisroe was also appointed to This Fund is suitable for investors who are seeking long-term the IRC as a member, replacing Mr. Neil de Gelder who left capital growth, have a long-term investment time horizon and following the expiry of his term in March of 2021. have a medium to high tolerance for risk in their returns. Related Party Transactions Results of Operations We, on behalf of the Fund, or the Fund Manager, may, from As of December 31, 2020, the Fund's net assets decreased by time to time, enter into transactions or arrangements with or 7.4% to $158.2 million from $170.8 million at the end of 2019. involving other members of the HSBC Group or other people or Negative investment performance, partially offset by net companies related or connected to us or the Fund. To proceed contributions, resulted in an overall decrease in net asset value. with the transactions, the Fund relies on the positive recommendation of the Fund’s Independent Review Committee. A Investment Performance condition of this positive recommendation is that the transactions The HSBC Global Real Estate Equity Pooled Fund fell 10.94% are performed in accordance with our policy on Related Party for the 12 months ending December 31, 2020, while the Transactions. For more general information on persons related benchmark FTSE EPRA Nareit Developed Net Index (C$) fell to the Fund and the types of potential transactions, see the 10.63%. The Fund’s returns are after the deduction of fees and Fund’s Simplified Prospectus. 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.

1 HSBC Global Real Estate Equity Pooled Fund

Manager, Trustee and Investment Advisor HSBC Global Real Estate Equity 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 Year(s) ended December 31 operations of the Fund. As trustee, we hold legal title to the property of the Fund on your behalf. As primary investment 2020 2019 2018 2017 2016 advisor, we provide investment advice and portfolio Net assets per unit, beginning of management services to the Fund. We receive a fee from the year (2) $11.49 $10.33 $10.25 $10.60 $11.03 Fund for these services based on assets under management, Increase (decrease) from calculated daily and paid monthly. operations: Total revenue 0.32 0.34 0.35 0.45 0.29 We have entered into a sub-advisory agreement with HSBC Total expenses (0.01) (0.01) (0.01) (0.01) (0.01) Global Asset Management (UK) Limited, an affiliate, under Realized gains (losses) (0.67) (0.02) (0.08) (0.05) 0.17 which HSBC Global Asset Management (UK) Limited provides Unrealized gains (losses) (1.12) 1.14 0.16 (0.30) (0.44) investment advice and portfolio management services to the Total increase (decrease) from Fund. We pay HSBC Global Asset Management (UK) Limited a operations (2) $(1.48) $1.45 $0.42 $0.09 $0.01 fee based on assets under management, calculated daily and paid quarterly. To proceed with this transaction, the Fund relied Distributions to unitholders: From net investment income on the positive recommendation of the Fund’s Independent (excluding dividends) – – – – – Review Committee. For more information on our ability to hire From dividends (0.34) (0.31) (0.40) (0.41) (0.20) sub-advisors, see the section Organization and management of From capital gains – – – – (0.16) the Funds in the Fund’s Simplified Prospectus. Return of capital – – – – – Total annual distributions (2,3) $(0.34) $(0.31) $(0.40) $(0.41) $(0.36) Distribution Services The Fund is distributed through us and HSBC Investment Funds Net assets per unit at December 31 of year shown (2) $9.89 $11.49 $10.33 $10.25 $10.60 (Canada) Inc. (our wholly owned subsidiary). We may pay 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. 2020 2019 2018 2017 2016 Total net asset value Financial Highlights (in 000s) (4) $158,220 $170,758 $142,284 $178,198 $144,518 The following tables show selected key financial information Number of units about the Fund and are intended to help you understand the outstanding (in Fund’s financial performance for the past five years. This 000s) (4) 16,000 14,858 13,771 17,377 13,639 information is derived from the Fund’s audited annual financial Management statements. The information in the following tables is based on expense ratio prescribed regulations, and, as a result, is not expected to add ("MER") (5) 0.12% 0.12% 0.10% 0.10% 0.10% down due to the increase/decrease in net assets from MER before waivers operations being based on average units outstanding during the or absorptions (5) 0.12% 0.12% 0.10% 0.10% 0.10% year and all other numbers being based on actual units Trading expense ratio (6) 0.05% 0.02% 0.05% 0.03% 0.09% outstanding at the relevant point in time. Portfolio turnover rate (7) 36.91% 16.75% 29.24% 10.03% 20.57% Net asset value per unit (4) $9.89 $11.49 $10.33 $10.25 $10.60 (1) This information is derived from the Fund’s audited annual financial statements. All balances are stated in International Financial

2 HSBC Global Real Estate Equity Pooled Fund

Reporting Standards (“IFRS”). Under IFRS, the net assets per unit income tax you may have to pay as a result of your investment presented in the financial statements is the same as the net asset in the Fund that would have reduced returns or performance. value calculated for fund pricing purposes. The Fund’s past performance does not necessarily indicate how (2) Net assets per unit and distributions per unit are based on the it will perform in the future. actual number of units outstanding at the relevant time. The increase/decrease in net assets from operations per unit is based on Year-by-Year Returns the weighted average number of units outstanding over the fiscal year. Years ended December 31 The following bar chart shows the Fund’s annual performance (3) Distributions are automatically reinvested in additional units of the Fund, unless the unitholder withdraws from the automatic for each of the years shown, and illustrates how the Fund’s reinvestment plan by providing written notice to us. performance changed from year to year. In percentage terms, the bar chart shows how much an investment made on the first (4) This information is provided as at December 31 of the year shown. day of each financial year would have grown or decreased by (5) MER is based on total expenses (excluding distributions, the last day of each financial year. commissions and other portfolio transaction costs) for the stated year and is expressed as an annualized percentage of daily average Annual Returns net asset value during the year. The MER may vary from one mutual fund to another. 20% (6) The trading expense ratio represents total commissions and other 15% 14.2% portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the year. 10% 4.7% (7) The Fund’s portfolio turnover rate indicates how actively the Fund’s 5% portfolio advisor manages its portfolio investments. A portfolio 0.7% turnover rate of 100% is equivalent to the Fund buying and selling 0% all of the securities in its portfolio once in the course of the year. -0.7% The higher the Fund’s portfolio turnover rate in a year, the greater -5% the trading costs payable by the Fund in the year, and the greater -10% the chance of an investor receiving taxable capital gains in the year. -10.9% There is not necessarily a relationship between a high turnover rate -15% and the performance of the Fund. The rate is calculated based on Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 the lesser of purchases or sales of securities divided by the average 2016 2017 2018 2019 2020 weighted market value of the portfolio securities, excluding short- term securities. Annual Compound Returns Management Fees Year ended December 31, 2020 The following table shows the Fund’s historical annual For the year ended December 31, 2020, the Fund did not pay compound total returns for the years indicated, compared with management fees. You pay us, HSBC Investment Funds the benchmark index, the FTSE EPRA Nareit Developed Net (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. or Index (C$), over the same period. This index is designed to track your approved advisor a management fee that is based on the the performance of listed real estate companies and REITs on amount you have invested with us or your approved advisor all continents. (which may be subject to certain minimum annual fees). It is negotiated between you and us, HSBC Investment Funds Since (Canada) Inc. or your approved advisor. Further details can be 1 Year 3 Year 5 Year Inception found in the Fund’s Simplified Prospectus. HSBC Global Real Estate Equity Management fees paid to us were used to pay costs for Pooled Fund -10.94% 2.11% 1.26% 2.37% managing the investment portfolio, providing investment FTSE EPRA Nareit Developed Net analysis and recommendations, making investment decisions, Index (C$) -10.63% 2.09% 1.97% 2.80% making brokerage arrangements for the purchase and sale of (1) Due to the fact that several benchmark indices are only available on the investment portfolio and providing other services. The a monthly basis, the performance data for the HSBC Funds and the benchmark indices are calculated using values from the first month- management fees also funded commission payments and other end date each Fund was in operation. compensation (collectively “distribution costs”) to sales (2) For investment commentary and relative performance of the Fund representatives and registered dealers and brokers, including compared to its benchmark, please refer to the Results of Operations HSBC Investment Funds (Canada) Inc. and HSBC Bank Canada, section of this report. 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. For the year ended December 31, 2020, approximately 37% of the total management fees paid to us for all HSBC Pooled Funds were used to fund distribution costs. Past Performance The performance information shown assumes that all distributions made by the Fund in the years shown were 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 be charged outside of the Fund or the effect of any

3 HSBC Global Real Estate Equity Pooled Fund

Summary of Investment Portfolio Top 25 Holdings As at December 31, 2020 Percentage of NAV Asset Mix Duke Realty Corp. 3.89% Prologis Inc. 3.76% Percentage Deutsche Wohnen SE 2.87% of NAV CapitaLand Integrated Commercial Trust 2.78% U.S. Equities 54.09% CubeSmart 2.60% International Equities 41.09% Public Storage 2.59% Canadian Equities 2.78% Camden Property Trust 2.52% Cash & Equivalents 2.04% Invitation Homes Inc. 2.49% Total 100.00% STORE Capital Corp. 2.44% National Retail Properties Inc. 2.33% LEG Immobilien AG 2.21% Geographic Mix Alexandria Real Estate Equities Inc. 2.19% Percentage Realty Income Corp. 2.19% of NAV Gecina SA 2.14% United States 54.09% Segro PLC 2.04% Japan 10.36% Healthpeak Properties Inc. 2.03% United Kingdom 7.71% Welltower Inc. 1.96% Germany 6.11% Cousins Properties Inc. 1.95% Hong Kong 4.38% Healthcare Trust of America Inc. 1.95% Australia 4.10% Ventas Inc. 1.95% France 2.90% Japan Real Estate Investment Corp. 1.90% Canada 2.78% Equity Residential 1.86% Singapore 2.78% Essex Property Trust Inc. 1.84% Spain 1.81% AvalonBay Communities Inc. 1.83% Belgium 0.47% Dexus 1.83% Sweden 0.47% Total of Top 25 Holdings 58.14% Cash & Equivalents 2.04% Total 100.00%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly. Any geographic mix tables presented are based on country of tax exposure.

4 HSBC Global Real Estate Equity Pooled Fund

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 get a copy of these documents at no cost by calling us 3rd 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