HSBC Global Investment Funds EUROPE VALUE Monthly Report 31 August 2021

HSBC Global Investment Funds EUROPE VALUE Monthly report 31 August 2021 | Share class AD

Share Class Details Investment objective Key metrics The Fund aims to provide long term capital growth and income by investing in a portfolio of NAV per Share EUR 50.42 European shares. Performance 1 month 1.98% Volatility 3 years 21.84% Investment strategy Fund facts UCITS V compliant Yes In normal market conditions, the Fund will invest at least 90% of its assets in shares (or securities similar to shares) of companies of any size, that are based in, or carry out most of their business Dividend treatment Distributing in any developed European country. The Fund may invest up to 10% in Real Estate Investment Distribution Frequency Annually Trusts, and may also invest up to 10% of its net assets in other funds, including HSBC funds. See Dealing frequency Daily the Prospectus for a full description of the investment objectives and derivative usage. Valuation Time 17:00 Luxembourg Share Class Base Currency EUR Main risks Domicile Luxembourg • The Fund's unit value can go up as well as down, and any capital invested in the Fund may Inception date 25 November 2002 be at risk. Fund Size EUR 72,807,631 • The value of investible securities can change over time due to a wide variety of factors, including but not limited to: political and economic news, government policy, changes in Reference 100% MSCI Europe Net demographics, cultures and populations, natural or human-caused disasters etc. benchmark • Derivatives may be used by the Fund, and these can behave unexpectedly. The pricing and Managers Samir Essafri volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of Fees and expenses their underlying reference(s), instrument or asset. Minimum Initial USD 5,000 Investment Performance Fund Reference benchmark Ongoing Charge Figure¹ 1.846% Management fee 1.500% 150 Codes 140 130 ISIN LU0149719808 120 Bloomberg ticker HSBPEUA LX 110 ¹Ongoing Charges Figure, is based on expenses 100 over a year. The figure includes annual management charge but not the transaction

100 on starting date 90

Return index rebased to 80 costs. Such figures may vary from time to time. 08/16 08/17 08/18 08/19 08/20 08/21

Past performance is not an indicator of future returns. The figures are calculated in the share class base currency, dividend reinvested, net of fees. Source: HSBC Asset Management, data as at 31 August 2021 HSBC Global Investment Funds EUROPE VALUE Monthly report 31 August 2021 | Share class AD

Performance (%) YTD 1 month 3 months 6 months 1 year 3 years ann 5 years ann AD 15.79 1.98 0.64 11.74 29.66 3.92 3.84 Reference benchmark 19.81 1.97 5.63 17.73 30.88 9.19 8.84

31/08/2020- 31/08/2019- 31/08/2018- 31/08/2017- 31/08/2016- Rolling Performance (%) 31/08/2021 31/08/2020 31/08/2019 31/08/2018 31/08/2017 AD 29.66 -8.62 -5.27 1.23 6.25 Reference benchmark 30.88 -2.92 2.45 4.86 11.88

Reference Reference Characteristics Fund benchmark 3-Year Risk Measures AD benchmark No. of holdings ex cash 53 432 Volatility 21.84% 16.56% Average Market Cap (EUR) 42,142,720,000 79,665,080,000 Information ratio -0.78 -- Beta 1.29 --

Sector Allocation (%)

Financials 23.18 15.48 Industrials 17.86 14.98 Materials 12.73 8.21 Consumer Staples 9.46 12.49 Communication Services 7.88 3.85 Consumer Discretionary 6.64 11.62 Health Care 5.98 14.60 Energy 5.85 4.14 Utilities 4.68 4.28 Information Technology 1.16 8.98 Real Estate 0.00 1.37 4.58 Cash & Others 0.00 Fund Reference benchmark

Geographical Allocation (%)

United Kingdom 23.72 22.15 Germany 19.05 14.35 France 18.27 17.03 Netherlands 7.14 7.54 Spain 6.36 3.71 Belgium 5.97 1.27 Switzerland 4.91 15.63 Italy 2.85 3.29 Austria 2.77 0.31 Luxembourg 1.74 0.38 Other Locations 2.64 14.33 4.58 Cash & Others 0.00 Fund Reference benchmark

Top 10 Holdings Location Sector Weight (%) Prudential PLC United Kingdom Financials 3.64 Deutsche Telekom AG Germany Communication Services 3.29 Reckitt Benckiser Group PLC United Kingdom Consumer Staples 2.86 Cie de Saint-Gobain France Industrials 2.84 KBC Group NV Belgium Financials 2.79 OMV AG Austria Energy 2.77 ING Groep NV Netherlands Financials 2.56 Barclays PLC United Kingdom Financials 2.46 Volkswagen AG Germany Consumer Discretionary 2.46 HeidelbergCement AG Germany Materials 2.36

Source: HSBC Asset Management, data as at 31 August 2021 HSBC Global Investment Funds EUROPE VALUE Monthly report 31 August 2021 | Share class AD

Monthly performance commentary

Performance

European equity markets continued to rally in August, as strong earnings and accommodative policy continue to outweigh the negative from the spread of the Delta variant and concerns about potential US/European tapering. In August, the Value factor performance stabilized somewhat but continued to lag behind as Quality and especially Growth continue to outperform and to catch up from Q1 underperformance. Over the month, sector allocation is slightly negative. Among positives, we benefited from our overweight Financials driven by rising bond yields (after months of consolidation). Our selected exposure to Consumer Discretionary is also a clear positive. On the other hand, our structural underweight position (due to expensive valuations) on Technology (which keeps outperforming) continued to impact negatively our relative performance. Our fundamental underexposure to expensive defensives such as Healthcare also impacted negatively. Our overweight Materials suffered from profit taking triggered by soft Chinese manufacturing data. The stock selection is positive over the month and more than offsets the allocation effect. As mentioned above, we clearly benefited from our strong conviction on Financials, rising bond yields being a positive driver. In this context, Barclays, Credit Agricole and ING in the banking space continued to behave very well. Within Insurance, Axa continued to recover nicely, thanks to reassuring quarterly results. Likewise, Prudential performed strongly over the month benefiting from the demerger of the US life insurance business. removing a key uncertainty that should continue to reduce cost of equity and crystallize the huge strategic value of the core Asian life business. Whitbread (leading branded economy-segment chain hotel in the UK) recovered sharply in August after a tough period, thanks to strong trading numbers from Travelodge (direct peer) reading very well for Whitbread’s Premier Inn chain. Still in the Consumer Discretionary space, Inditex (Fashion Retail) worked well over the period. Casino and especially Sainsbury behaved very well in August as private equity interest in UK food retail has clearly peaked over the last few months with ASDA entering private equity hands, and Morrisons subject to multiple bids from private equity suitors. And It has subsequently been reported that Apollo are running the rule over Sainsbury's, highlighting and confirming the significant hidden value in the sector, we had identified initially. Finally, SSE in the Utilities sector, keeps doing very well thanks to perfect execution allowing to unlock Sum-of-the-Parts Value Via Spinoffs, Asset Sales combined with a strong operating outlook.On the other hand, Allianz is a detractor impacted by the threat from the Alpha Funds litigation in the US. We see this this risk as more than priced in, as Allianz shares dropped €7bn of market cap the day the DOJ investigation was announced, which is well over analysts’ worst-case scenario (of €6bn). Other key attractions that Allianz offers include a strong capital position, disciplined capital management and a resilient operating outlook. After a strong performance Heineken consolidated in August. We also suffered from profit taking in the Aerospace-Defense segment with Thales. Fresenius Medical Care and Grifols in the Medical Equipment and Services space are also detractors.

Portfolio adjustments

We took profits in Sainsbury as after the 15% rally on the back of the Sunday Times report (related to private equity interest), Sainsbury shares were up 90% over the past year. And as we think that a lack of statement from Sainsbury/Apollo suggests PE interest may have been exploratory. Having said that, we continue to like Sainsbury's as a business and are still convinced by the company's strategy. The management continues to execute perfectly, and we strongly believe that the domestic profit pool will continue to grow with hard discounters ALDI and LIDL profitability under pressure, online strategic advantage for Sainsbury and two large competitors likely in PE ownership (Asda and Morrison’s).

Outlook

We still strongly believe in the Reflation, Recovery & Reopening trade as it should continue to bethe key macro themes for Europe, concerns around the spread of the Delta variant are clearly overdone for us. The European vaccination campaign continues to accelerate, still paving the way for a strong rebound in Q4. We see the current tough period for the fund’s performance as a pause rather than the end the cyclical/value/higher rates move, we continue to believe that inflation and interest rates hit secular lows last year. We expect continued earnings momentum to refuel investors' confidence in the recovery, and drive the rotation into Value. We thus see our Value tilted fund as ideally positioned to reflect our strong conviction for renewed rotation towards reflation, inflation, rising yields and reopening themes. We thus remain constructive and definitely ticks to our selective pro-value tilt, obviously keeping a close eye on our risk profile given the extreme volatility.

The stocks mentioned are for illustrative purposes only and are not investment advice, investments have risks. Source: HSBC Asset Management, data as at 31 August 2021 HSBC Global Investment Funds EUROPE VALUE Monthly report 31 August 2021 | Share class AD

Follow us on: Risk Disclosure HSBC Asset Management • Investment Leverage occurs when the economic exposure is greater than the amount invested, such as when derivatives are used. A Fund that employs leverage may experience greater gains and/or losses due to the amplification effect from a movement in the price of HSBC Asset Management (Bermuda) the reference source. Limited Telephone: +441 299 6644 • Further information on the Fund's potential risks can be found in the Key Investor Information Email: asset.management@hsbc.bm Document and Prospectus. Website: assetmanagement.hsbc.bm

Glossary

Index Disclaimer Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non- infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com) Source: HSBC Asset Management, data as at 31 August 2021 HSBC Global Investment Funds EUROPE VALUE Monthly report 31 August 2021 | Share class AD

Important Information HSBC Global Asset Management (Bermuda) Limited (“AMBM”) of 37 Front Street, Hamilton, Bermuda, is a wholly owned subsidiary of HSBC Bank Bermuda Limited (the “Bank”). AMBM and the Bank are licensed to conduct investment business by the Bermuda Monetary Authority. Funds managed by AMBM are offered by Prospectus only in those jurisdictions where they are permitted by law. Persons are required to inform themselves and observe any relevant restrictions. AMBM makes no representation as to the suitability of the funds for investors. Investors should be aware that performance returns are affected by market fluctuations. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future performance. Investors should note that the use of derivatives and investments involving a currency other than their own will create foreign exchange exposure, which involves special risks. It is the aim of the Company to preserve capital and, where applicable, to maintain a stable net asset value per share; these aims are not guaranteed. Additionally, investors should consider their investment objectives, whether or not they can assume these risks and should undertake their own appropriate professional advice. Expressions of opinion contained herein are subject to change without notice. For investors investing via a nominee service provider, the nominee service provider will process the transaction and route all settlement proceeds to you, which may extend the settlement period. Please contact your investment advisor/introducing agent, or in the absence of those the nominee provider directly, to confirm the settlement period. Issued by HSBC Global Asset Management(Bermuda) Limited Licensed to conduct investment business by the Bermuda Monetary Authority © Copyright HSBC Global Asset Management (Bermuda) Limited 2021. All Rights Reserved. Further information can be found in the prospectus.

Source: HSBC Asset Management, data as at 31 August 2021