Asset Management Solutions for Global Corporations · Asset Management Solutions for Global Corporations Global investments for Pensions schemes •Global Pension Schemes canbenefit

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Asset Management Solutions

for Global Corporations

We are proud to say thatwe are the asset managerof one of the world’s bestbanks1. And we share thebenefits of being part ofHSBC: we are fullyintegrated with theuniversal bankingproposition, which meansclients can benefit fromholistic and consistentglobal coverage of productsand services.

We are global with localexperts. Simply, we drawon local knowledge anddecision-making andcombine it with our globalresearch and investmentplatforms. This allows us toprovide a uniqueinfrastructure in terms ofbreadth and depth ofexpertise.

We enable globalcorporations to benefitfrom a centralisedinvestment strategy withlocal vehicles to providegreater ease of governanceand reporting, allowingglobal players to receivehigh and competitivestandards no matter wherethey operate2.

We help manage the risksand costs to a corporation’sbalance sheet: cashmanagement and pensionsolutions. With consistentcoverage, consultativeapproach, stronggovernance and innovationthrough dialogue, ourobjective is clear: we wantto be your strategic partner,globally and over the longterm.

Asset Management Solutions for Global Corporations

At HSBC Global AssetManagement, we offer GlobalCorporate clients products andservices to manage the risks andcosts to their balance sheets

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1. Source: Euromoney Awards for Excellence 20172. AMG client servicing in Argentina, Australia, Austria, Bermuda, Canada, China, France, Germany, Hong Kong, India, Italy, Japan, Jersey,

Luxembourg, Malta, Mexico, Saudi Arabia, Singapore, Spain, Sweden, Switzerland, Taiwan, Turkey, UAE, UK, USA

Service /Support

Cost Efficiencyand ‘Value’

Governance

Performanceand risks

StakeholderManagement

A global partner for global corporations

• As the asset management firm within HSBC, our focus withCorporate clients is to provide bespoke solutions to the risks andcosts to your balance sheet (cash flow management and pensionfunds, either Defined Benefit and Defined Contribution schemes)

• Our customisation services allow us to tailor portfolios to meetyour requirements in terms of objectives (such as capitalpreservation, liability matching, regulatory capital budgeting, totalreturn strategy), and also in terms of your investment horizon,risk appetite and performance target

• We deliver on our fiduciary responsibilities by managing risk asmuch as performance

• Our approach combines global investment teams with localimplementation, which brings insights from other markets andallows us to deliver cross-border solutions

• Our local Sales and Client Management teams offer globalpensions and investment expertise

Providing global and local support to address cross-border challenges

1. Source: ‘Benchmark your Global Fund Distribution 2018’, PWC, issued March 20182. As at June 20183. As at June 2018. Includes joint ventures: China (Jintrust) and Saudi Arabia.4. HSBC GIF (Global Investment Funds) is an umbrella structure, offering investors a range of funds with different objectives and different

strategies. Data as at June 2018. Not all sub-funds and share classes are necessarily registered in all countries.

• Lack of support at global or local level leading to lackof transparency or understanding

• Adapting to changes in corporate investment andstructural needs

• Reporting and member support• Regulatory impact on business needs

• Global-local model provides knowledge and anoperating model to support multinationals

• Local experts to support all areas of a corporation• Regulatory insight and solutions to mitigate impact

• Optimising structures to gain scale benefits andreduce complexity

• Costs and inefficiencies internally, operational areasand governance in particular

• Concentrate investments to reduce fees andcomplexity (oversight costs and risk management)

• Global tax-transparent platforms, local investmentinfrastructure to support clients ‘on the ground’

• Full suite of investment strategies that can becustomised for clients

• companies/schemes have access to best in breedinvestments

• Achieving global consistency with the flexibility tomeet local competitive needs

• Transparency and control for the headquarters fromlocal regimes and reporting standards

• Global processes to deliver local solutions facilitatingcross-border harmonisation

• Global, aggregated reporting of locally-deliveredinvestments

• Complex funding/balance sheet risks• Consistency of risk-return management to deliver

expected benefits locally without cash flow issues(margin, cash-calls)

• Advisory and overlay management services to largepension fund clients

• Investment solutions with global and local funds• Investment processes can provide global consistency

of approach with local adaptation and implementation

• Meeting the demands of Boards, Management,Trustees and Regulators

• Working with a company structure• Global reporting and/or insight requirements• Managing local and global needs• Fulfilling ESG expectations

• Active involvement with policy-makers• Products and tailored solutions help sponsors deliver

their objectives• Detailed reporting and research that offers insight• ESG integration into the investment process

How we address these challengesUnderstanding the challenges


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#4in terms of global

coverage, among

the top 100 cross-

border asset

managers1

14countries

manufacturing

products2

26countries with on-

the-ground client

service3

35countries where

HSBC GIF funds

are registered for

distribution4


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Liquidity solutions for Treasurers

Treasurers analyse their objectives and priorities for cash holdings, and constantly aim to deploy their cash balances effectively. Ina changing regulatory and money market landscape, the role of treasurers is becoming more important than ever, to ensureinstitutions continue to meet the strategic goals for cash surpluses and remain in line with the risk budgets. With an eye on theregulatory reforms that may impact their investments, clients value us for insight and direction.

1. Forward looking statements are not guarantees of future performance or events.Source: HSBC Global Asset Management as at June 2018. Not all capabilities are available in all countries.

Global Liquidity from HSBC Global Asset Management

• Our liquidity team within HSBC Global Asset Management isdedicated to helping organisations of every kind make theircash reserves work harder through intelligent investmentsolutions

• As part of the HSBC Group, we have local liquidity expertiseacross both core and emerging markets. This helps us todeliver global, multi-currency solutions to allow you to investyour cash in a consistently-managed liquidity product

• HSBC Global Asset Management provides a wide range ofliquidity investment solutions. Our investment philosophy isthat liquidity management must be focused on riskmanagement. As such, we believe our responsibility is toaim to preserve capital and provide liquidity1. With aconsultative approach to working with you, solutions rangefrom money market funds to highly customised portfolios

Our key strengths

• A prudent low-risk cash management approach

• A detailed, considered set of investment policies coveringrisk aspects

• A structured and methodical, globally-consistent, investmentprocess designed to deliver on its objectives

• Distinctive credit approval and limit-setting process

• The strategic importance of liquidity as an asset class allowsHSBC to invest in high quality and appropriate level ofdedicated resources

• Investment and credit teams across 10 locations globallyprovide local market knowledge

• Dedicated client service teams to provide timely support

• A full range of Liquidity investment strategies in multiplecurrencies

HSBC manages USD60.1 billion in Liquidity assets in 11 currencies

InternationalMoney MarketFunds

Domestic CapabilitiesGlobal Currencies

Domestic CapabilitiesLocal Currencies Segregated Mandates

• US Dollar

• Sterling

• Euro

• Canadian Dollar

• Australian Dollar

Euro

• Prime

• Government

• Treasury

US Dollar

• US Government

• US Treasury

• Argentina

• Canada

• China

• Hong Kong

• India

• Taiwan

• Turkey

Customised portfolios can betailored toward your specificrequirements

Minimum size of USD100 millionallows us to optimisediversification and enhancedreturns


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Key Risks

• The value of investments can go down as well as up

and as with any investment you may not receive back

the amount originally invested.

• Exchange rate risk Investing in assets denominated in acurrency other than that of the investor’s own currencyperspective exposes the value of the investment toexchange rate fluctuations.

• Credit risk Issuers of debt securities may fail to meettheir regular interest and/or capital repayment obligations.All credit instruments therefore have potential for default.Higher yielding securities are more likely to default.

• Derivative risk The value of derivative contracts isdependent upon the performance of an underlying asset.A small movement in the value of the underlying cancause a large movement in the value of the derivative.Unlike exchange traded derivatives, over-the-counter

(OTC) derivatives have credit risk associated with thecounterparty or institution facilitating the trade.

• Operational risk The main risks are related to systemsand process failures. Investment processes are overseenby independent risk functions which are subject toindependent audit and supervised by regulators.

• Money Market Fund risk The fund aims to maintain astable share price (excluding income) through investmentin low risk, short-term securities. The market value of thesecurities held by the fund will fluctuate. During adversemarket conditions there is no guarantee that a stable netasset value will be maintained.

• Asset backed securities (ABS) risk ABS are typicallyconstructed from pools of assets (e.g. mortgages) thatindividually have an option for early settlement orextension, and have potential for default. Cash flow termsof the ABS may change and significantly impact both thevalue and liquidity of the contract.


Global investments for Pensions schemes

• Global Pension Schemes can benefit from our globalinvestment platforms and local insight. Experienced teamsfocus on a wide range of strategies to work on your pensionneeds through a consultative approach.

• We understand the risk associated with managing pensionschemes, specially when underfunded. For multinationalcompanies we recognise that the risk is multiplied and mademore complex the more countries you operate in.

• Pensions’ requirements are dependent on the scheme itselfand the country where it operates. Local expertise allows us

to be aware of the regulatory, macro and legal environmentwithin each pension operates.

• As pensions have local differences due to the regulatoryenvironment, you need a global asset manager who can offera central globalised investment strategy with local vehicles togive greater ease of governance and reduced fees.

• We have a long track record within investments and we canoffer a suite of core holdings to be a strategic partner.

Managing liabilities for Defined Benefit schemes

For DB schemes, liabilities have been increasing due togreater life expectancy, changes in legislation, volatility inmarkets and low bond yields. Insurance options to buy outliabilities have become too expensive. Many DB schememanagers are concerned about how to meet pay-outcommitments, but the issue of growing liabilities can alsoaffect the company’s credit rating and potential corporateevents like IPOs.

• To help DB schemes to overcome these challenges, wefocus on cost-efficient core holding, globalisation ofinvestments, strong risk management for better use of riskbudgets, liability-focused strategies, highly diversifiedinvestment solutions and bespoke solutions.

Delivering sustainable income for Defined Contribution

DC schemes increasingly focus on solutions that can deliverstable and sustainable retirement incomes. Employers wantto facilitate sensible decision-making, particularly since levelsof engagement of scheme members vary broadly acrosscountries and age groups. They also want to offer reliable,good value solutions to members.

• You can leverage our platform and our proven experiencein multi-asset investing. We can help you design suitableschemes to help your members save for their retirement.We also offer specially-designed income solutions to meetscheme members’ needs at and throughout theirretirement.

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Source: HSBC Global Asset Management as at June 2018


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Full range of strategies


1. Not all sub-funds of the HSBC Global Investment Funds SICAV are registered in all countries. Not all strategies mentioned herein aresuitable for all investors or available in all jurisdictions. HSBC Global Asset Management can register in more countries that it doescurrently and strategies/funds are constantly being opened/closed. Source: HSBC Global Asset Management as at December 2017. Forinformational purposes only and should not be construed as a recommendation for any investment product or strategy.

We manage a full range of strategies, including sub-funds of the HSBC Global Investment Funds, a SICAV registered inLuxembourg that functions as an umbrella structure, or bespoke mandates. The SICAV exists to offer investors a range of fundsto match different objectives and different strategies, as listed below.

The HSBC Global Investment Funds SICAV is currently registered for distribution in1: Austria, Bahrain, Belgium, Brunei, Chile,Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, India, Ireland, Italy, Japan, Jersey, Jordan, Lebanon,Macau, Malaysia, Malta, Netherlands, Norway, Oman, Poland, Portugal, Qatar, Saudi Arabia, Singapore, South Korea, Spain,Sweden, Switzerland, Taiwan, UAE and the United Kingdom.

The value of investments can go down as well as up and as with any investment you may not receive back the amount originallyinvested.

Fixed Income

Global Capabilities

• Global Aggregate• Global Inflation Linked• Global Short Duration High Yield• Global High Yield• EMD Core• EMD Local Debt• EMD Hard Currency• EMD Total Return• EMD Inflation linked• EMD Corporate Debt• EMD Investment Grade• Lower Carbon

Regional Capabilities

• Asia Government• Asia Credit• Asia High Yield• Euro Government• Euro Short Duration• Euro Aggregate• Euro Credit• Euro Credit Total Return• Euro High Yield

Country Capabilities

• Argentina• Brazil• Canada• China• Mexico• Hong Kong• India• Indonesia• Singapore• Taiwan• Turkey• UK

Passive

• Worldwide• Regional• Country

Alternative Weighting Schemes

• Multi and single factor− Value, Quality, Small Cap,

Momentum, Low volatility• Economic Scale Indexation

− Global, Global ex-North America,Europe, US, Japan, EmergingMarkets, Asia Pacific ex-Japan

• Lower Volatility− Global, Global ex-US, Euroland, US,

Emerging Markets, Asia Pacific ex-Japan

Active fundamental

• Portfolio construction: core, income,small cap, real estate, thematic, lowercarbon

• Geographic: global, regional, country

Equity

Global Capabilities

• Traditional• Risk profiled• Flexible• Income• Specialist Techniques (Style Factors)• Tactical Risk Scaling Framework• Portfolio Insurance Framework


• Asia, Europe, Eurozone

Country Capabilities

• Canada, Eurozone, US, UK, China

Multi-Asset

Global Capabilities

• US Dollar• Sterling• Euro• Canadian Dollar


• US Dollar: US Government; US Treasury

• Euro: Prime; Government; Treasury

Country capabilities

• Argentina, Canada, China, Hong Kong,India, Taiwan, Turkey

Liquidity

Hedge Funds

• Commingled hedge funds• Range of multi-strategy and thematic

fund of hedge funds• Discretionary service• Single line• Advisory service

Private Equity

• Funds• Secondary Deals• Co-Investments• Tailored mandates

Real Estate

• Funds• Club Deals• Retained Transactions• Tailored mandates

Infrastructure Debt

• Separate managed accounts

Private Debt

Alternatives

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HSBC Global Asset ManagementWe have a long history of dealing with a diverse client basefrom retail and private banking clients to intermediaries,commercial and corporate clients and some of the biggestinstitutional investors in the world.

Our presence in 26 countries means we are where our clientsare and where investment opportunities are, being wellpositioned to bridge the gap between developed anddeveloping markets.

Local experts manage funds which are distributed across 35countries, seizing the opportunities that can only be found

locally, while consistently following our global processes andgovernance. This network gives us the capacity to providemulti-national companies with a consistent global coverage ofproducts and services.

We manage risk as much as performance, and governanceunderpins everything we do. All our teams have clearinvestment philosophy and follow a globally-consistent,disciplined investment process across our capabilities, withESG integration. We believe these are essential to deliver long-term value for our clients and are especially valued by clientswith cross-border requirements.

Strong global investment platform and operations supports local investment teams

* Alternatives assets include USD5.0bn from committed capital (“dry powder”).**Other is the assets of Hang Seng Bank, in which HSBC has a majority holding, and of HSBC Jintrust Fund Management, a jointventure between HSBC Global Asset Management and Shanxi Trust Corporation Limited. Source: HSBC Global Asset Managementas at 30 June 2018. Any differences are due to rounding.

Fixed Income (189.4)

Equity (83.0)

Multi-Asset (86.4)

Liquidity (60.1)

Alternatives (23.9)*

Other (25.6)**

By asset class (USDbn)

Americas (83.6)

EMEA (245.1)

Asia Pacific (139.7)

By region (USDbn)

USD468 .3bnunder management

Canada

USA

Mexico

Argentina

Bermuda

UK

Sweden

Luxembourg

JerseyFrance

Spain

Switzerland

MaltaItalyAustria

Germany

Turkey

Saudi Arabia UAEIndia

Singapore

Hong KongTaiwan

Japan

Australia

China

HSBC Global AssetManagement offices


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The value of investments and the income from them can go down as well as up and investors may not get back the amountoriginally invested. Past performance contained in this document is not a reliable indicator of future performance whilst anyforecasts, projections and simulations contained herein should not be relied upon as an indication of future results. Whereoverseas investments are held the rate of currency exchange may cause the value of such investments to go down as well as up.Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in someestablished markets. Economies in Emerging Markets generally are heavily dependent upon international trade and, accordingly,have been and may continue to be affected adversely by trade barriers, exchange controls, managed adjustments in relativecurrency values and other protectionist measures imposed or negotiated by the countries with which they trade. Theseeconomies also have been and may continue to be affected adversely by economic conditions in the countries in which theytrade. Mutual fund investments are subject to market risks, read all scheme related documents carefully.For Professional Clients and intermediaries within countries set out below; and for Institutional Investors and Financial Advisors in the US. This document should not bedistributed to or relied upon by Retail clients/investors.The contents of this document may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. All non-authorised reproduction or use of thisdocument will be the responsibility of the user and may lead to legal proceedings. The material contained in this document is for general information purposes only and does not constitute adviceor a recommendation to buy or sell investments. Some of the statements contained in this document may be considered forward looking statements which provide current expectations orforecasts of future events. Such forward looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially fromthose described in such forward-looking statements as a result of various factors. We do not undertake any obligation to update the forward-looking statements contained herein, or to updatethe reasons why actual results could differ from those projected in the forward-looking statements. This document has no contractual value and is not by any means intended as a solicitation, nora recommendation for the purchase or sale of any financial instrument in any jurisdiction in which such an offer is not lawful. The views and opinions expressed herein are those of HSBC GlobalAsset Management at the time of preparation, and are subject to change at any time. These views may not necessarily indicate current portfolios' composition. Individual portfolios managed byHSBC Global Asset Management primarily reflect individual clients' objectives, risk preferences, time horizon, and market liquidity.The global liquidity funds are sub-funds of HSBC Global Liquidity Funds plc, an open-ended Investment company with variable capital and segregated liability between sub-funds, which isincorporated under the laws of Ireland and authorised by the Central Bank of Ireland. The company is constituted as an umbrella fund, with segregated liability between sub-funds.Shares of the sub-funds may not be offered or sold in the United States of America, including its territories and possessions (“United States” or “US”), or, directly or indirectly, to or for the benefitof a US Person, except in a transaction exempt from the registration requirement of the Securities Act of 1933, as amended. NOT FDIC INSURED/NO BANK GUARANTEE/MAY LOSE VALUE.All subscriptions in any fund presented in this document are accepted only on the basis of the current HSBC Global Liquidity Funds prospectus, Key Investor Information Document (KIID) and mostrecent annual and semi-annual reports, which can be obtained upon request free of charge from the registered or head office of the below mentioned HSBC Global Asset Management entities orlocal distributors. All the information within this document does not replace the official legal documents for the fund (i.e. prospectus, Key Investor Information Document (KIID), annual and semi-annual reports). This fund may not be suitable for every investor. Before subscription, investors and potential investors should read and note the general risk factors in the prospectus and thespecific risk factors in the Key Investor Information Document (KIID). If you have any doubts about the suitability of this investment, you should contact a financial adviser.HSBC funds are sub-funds of the HSBC Global Investment Funds, a Luxembourg domiciled SICAV. All applications are made on the basis of the current HSBC Global Investment Funds Prospectus,Key Investor Information Document (KIID), Supplementary Information Document (SID) and most recent annual and semi-annual reports free of charge from HSBC Global Asset Management (UK)Limited, 8 Canada Square, Canary Wharf, London E14 5HQ, UK. Investors and potential investors should read and note the risk warnings in the prospectus and relevant KIID and additionally, inthe case of retail clients, the information contained in the supporting SID.We accept no responsibility for the accuracy and/or completeness of any third party information obtained from sources we believe to be reliable but which have not been independently verified.HSBC Global Asset Management is a group of companies in many countries and territories throughout the world that are engaged in investment advisory and fund management activities, whichare ultimately owned by HSBC Holdings Plc. HSBC Global Asset Management is the brand name for the asset management business of HSBC Group. The above communication is distributed bythe following entities: in the UK by HSBC Global Asset Management (UK) Limited, who are authorised and regulated by the Financial Conduct Authority; in France and Italy by HSBC Global AssetManagement (France), a Portfolio Management Company authorised by the French regulatory authority AMF (no. GP99026); in Germany by HSBC Global Asset Management (Deutschland) GmbHwhich is regulated by BaFin; in Switzerland by HSBC Global Asset Management (Switzerland) Ltd whose activities are regulated in Switzerland and which activities are, where applicable, dulyauthorised by the Swiss Financial Market Supervisory Authority. Intended exclusively towards qualified investors in the meaning of Art. 10 para 3, 3bis and 3ter of the Federal CollectiveInvestment Schemes Act (CISA); in the US by HSBC Global Asset Management (USA) Inc. is an investment adviser registered with the US Securities and Exchange Commission;INVESTMENT PRODUCTS:Are not a deposit or other obligation of the bank or any of its affiliates;Not FDIC insured or insured by any federal government agency of the United States;Not guaranteed by the bank or any of its affiliates; andAre subject to investment risk, including possible loss of principal invested.and in Singapore by HSBC Global Asset Management (Singapore) Limited, which is regulated by the Monetary Authority of Singapore. HSBC Global Asset Management (Singapore) Limited is alsoan Exempt Financial Adviser and has been granted specific exemption under Regulation 36 of the Financial Advisers Regulation from complying with Sections 25 to 29, 32, 34 and 36 of theFinancial Advisers Act, Chapter 110 of Singapore.Important Information for Swiss Investors: this document has no contractual value and is not by any means intended as a solicitation, nor a recommendation for the purchase or sale of anyfinancial instrument. This document may be distributed in Switzerland only to qualified investors according to Art. 10 para 3, 3bis and 3ter of the Federal Collective Investment Schemes Act(CISA). The presented HSBC GIF sub-funds are authorised for distribution in Switzerland in the meaning of Art. 120 of the Federal Collective Investment Schemes Act. (Potential) investors arekindly asked to consult the latest issued Key Investor Information Document (KIID), prospectus, articles of incorporation and the (semi-)annual report of the fund which may be obtained free ofcharge at the head office of the representative: HSBC Global Asset Management (Switzerland) Ltd., Gartenstrasse 26, P.O. Box, CH-8002 Zurich. Paying agent: HSBC Private Bank (Suisse) S.A.,Quai des Bergues 9-17, P. O. Box 2888, CH-1211 Geneva 1. Investors and potential investors should read and note the risk warnings in the prospectus and relevant KIID. Before subscription,investors should refer to the prospectus for general risk factors and to the KIID for specific risk factors associated with this fund. Issue and redemption expenses are not taken into considerationin the calculation of performance data. The HSBC GIF sub-funds presented in this document are sub-funds of HSBC Global Investment Funds, an investment company constituted as a société àcapital variable domiciled in Luxemburg. The shares in HSBC Global Investment Funds have not been and will not be registered under the US Securities Act of 1933 and will not be sold or offeredin the United States of America, its territories or possessions and all areas subject to its jurisdiction, or to United States Persons. The HSBC Liquidity Funds are not authorised for distribution inSwitzerland according to Art. 120 of the Federal Collective Investment Schemes Act in Switzerland. This document may be distributed in Switzerland only to qualified investors according to Art.10 para 3, 3bis and 3ter of the Federal Collective Investment Schemes Act (CISA). Representative in Switzerland: HSBC Global Asset Management (Switzerland) Ltd., Gartenstrasse 26, P.O. Box,CH-8002 Zurich. Paying Agent in Switzerland: HSBC Private Bank (Suisse) SA, Quai des Bergues 9-17, P.O. Box 2888, CH-1211 Geneva 1. In respect of the units distributed in Switzerland, thecompetent courts shall have exclusive venue at the registered office of the Representative in Switzerland. The official documents as per Art. 13a CISO as well as the (Semi-)Annual Report of theFund may be obtained free of charge at the office of the Representative in Switzerland.Copyright © HSBC Global Asset Management Limited 2018. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by anymeans, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Global Asset Management Limited. ED-0809 until 31 March 2019.


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Asset Management Solutions for Global Corporations · Asset Management Solutions for Global Corporations Global investments for Pensions schemes •Global Pension Schemes canbenefit