HSBC SELECT EQUITY (A) - Global Asset Management from …

Non contractual document.

Monthly ReportJuly 2021

HSBC SELECT EQUITY (A)

Be SELECTIVE when Managing your Wealth.

Region: Malta

The performance figures relate to the past performance which should not be seen as an indication of future returns. The capital invested in the fund can increase or decrease and is not guaranted. Future returns will depend, inter alia, on market conditions, fund manager’s skill, fund risk level and fees. The investment objective has been modified on the 25th September 2014. Performance returns prior to this date have been realized under different circumstances.

Region: Malta

Non contractual document

Indices**(1) MSCI EMU (NR)Eurozone Equity Index

(2) Bloomberg Barcl. Euro Agg. BdEuro Bond Index

(3) EONIAEuro Money Market Index

**Indices for information and comparison purposes only, as the fund has no official benchmark.

Sharpe ratio

Fund's volatility 12.05% 1.96

18.12% 0.40

15.43% 0.45

14.41% 0.48

15.84% 0.13

04/10/1999*10 years5 years3 years1 year

Net performance by calendar year

12.05% 2.06% 21.57% -11.27% 6.10% 6.95%Portfolio2016

16.78%-0.76%-0.28%

-1.00% 4.05%-0.47%

25.45% 5.98%-0.40%

-12.75% 0.41%-0.37%

12.63% 0.68% 0.00%

4.33% 3.32%-0.32%(3) EONIA

(2) Bloomb. Barcl. Euro Agg. Bd(1) MSCI EMU (NR)

20172018201920202021

2

Legal Form

Mutual Fund regulated under French lawInvestment horizon

> 5 yearsDividend Policy

(AC): Accumulation SharesStart Date of Management*

04/10/1999

Total Asset

EUR 197 719 530.10

4 1 2 3

Risk and Reward Profile

Do not run any unnecessary risk. Read the Key Investor Information Document (KIID). The risk and reward indicator is based on price volatility over the last five years, and is an indicator of absolute risk. Historical data may not be a reliable indication for the future. The value of an investment, and any income from it, may fall as well as rise, and you may not get back the amount you originally invested. The category is not guaranteed to remain unchanged and the categorisation may shift over time. The lowest category does not mean a risk-free investment. This Mutual Fund is classified in category 6 because its price or simulated data has shown high fluctuations historically.

Typically lower rewards Typically higher rewards

Lower risk

5 7 6

Higher risk

95% EquitiesStrategic Allocation

The objective of the mutual fund is to offer flexible management, primarily invested in equity markets, over a minimum investment period of five years. Despite operating within larger allocation limits, the mutual fund’s profile may be compared with an allocation made up of 95% equities and 5% public and private bonds on average, exposed in developed markets with a euro bias as well as in emerging markets. The mutual fund is managed actively without any reference to a benchmark index.The investment strategy is discretionary and is based on a portfolio management process organised around three pillars: • a medium/long-term strategic asset allocation depending on the manager’s level of conviction (asset classes, geographical areas, sectors), • a tactical allocation resulting from the manager’s short-term convictions in order to strive to take advantage of market opportunities, • a selection of undertakings for collective investment (UCI) and managers able to, according to us, generate performance over time.

Number of underlying funds

Fund Details

Net asset value

Objective and investment policy

43

(AC)(EUR) 105.52(AC)(EUR) 105.52

Performance and risk analysis

Bas

e 10

0 P

erfo

rman

ces

Fund's performanceover the recommended investment horizon

29/0

7/16

29/0

7/17

29/0

7/18

29/0

7/19

29/0

7/20

29/0

7/21

80

90

100

110

120

130

140

Bas

e 10

0 P

erfo

rman

ces

over 1 year

(1) : MSCI EMU (NR)(2) : Bloomberg Barclays Euro Agg. Bond

Indices performances

31/0

7/20

30/0

9/20

30/1

1/20

31/0

1/21

31/0

3/21

31/0

5/21

31/0

7/21

95

100

105

110

115

120

125

130

135

(1) (2) (3)

(3) : EONIANet Cumulated performance

Indicators & ratios (weekly)

0.39% 1.31% 1.56%-0.04%

26.01% 33.81% 0.97%-0.48%

22.84% 22.84% 9.82%-1.30%

39.03% 55.98%

7.99%-2.02%

98.50% 117.24%

48.95%-1.52%

111.04% 133.16%

04/10/1999*

(3) EONIA(2) Bloomberg Barcl. Euro Agg. Bd(1) MSCI EMU (NR)Portfolio

10 years5 years3 years1 year1 month

HSBC SELECT EQUITYEUR Share Class A

Monthly Report30 July 2021

Analysis of the investment strategy

Portfolio Composition


Region: Malta

92.68%

3.95%

4.01%

-0.63% -0.33%

30/07/2021

100.00% 100.00% -0,21

Variation*% TNA

Europe

North America

Emerging Markets

Asia ex-Japan

Global

Japan

Emerging Markets

Asia ex-Japan

Global

Europe

Global

* There is a change over the period if the difference in weighting is greater than 0.5% in absolute value terms.** Including fixed income and equity market exposure via derivatives.

0,00

3,78

0,00

92.62%

46.19% 45.53% 22.60% 24.58% 7.51% 8.18% 6.94% 5.44% 4.64% 4.60% 4.79% 4.28%

3.78%

1.59% 1.57% 1.18% 0.84% 0.53% 0.73% 0.64% 0.64%

3.93%

4.01% 3.93%

30/06/2021% TNA

Equities**

Bonds**

Absolute Return

Money Market & Cash

Total

Asia ex-Japan 6,24%

Emerging Markets 9,69%

Europe 46,21%

Global 9,20%

Japan 4,25%

North America 24,41%

Total : 100,00%

Regional Allocation***as at 30/07/2021

***except cash

Equities 92,62%

Absolute Return 3,93%

Bonds & Money Market 3,45%

Total : 100,00%

Asset Allocationas at 30/07/2021

3



HSBC SELECT EQUITY

Top 10 Holdings

Main decisions taken during the month

EUR Share Class A


Region: Malta

2.02% 0.29%

1.31% 0.17%

-0.02% 0.00%

-6.71% -0.33%

0.10% 0.01%

1

2

3

4

5

42.48%

WeightMonthly

Performance*Performance Contribution**

Equities

Equities

Equities

Equities

Equities

Total

* Monthly return in Euro of underlying funds is based on HSBC SELECT EQUITY portfolio at the end of 07/30/2021 and 06/30/2021. The return is calculated with the following formula : end of month valuation ÷ preceding end of month valuation -1.** The performance contribution is calculated as follows : monthly return x monthly average weight.

14.47%

12.90%

5.95%

4.94%

4.21%

Asset Class

ETF HSBC S&P 500

ETF XTRACKERS MSCI EMU

HSBC GIF EUROLAND EQUITY

ETF HSBC MSCI EMERGING MARKETS

HSBC SRI EUROLAND EQUITY

New positions Asset Class Regional Zone Equities North AmericaETF ISHARES S&P 500 GROWTH

Positions liquidated Equities North America Equities North America

ETF ISHARES MSCI CANADA

ETF SPDR S&P 400 US MID CAP

Positions added

Equities Europe

Equities North America

Equities Asia ex-Japan

Equities Emerging Markets

Equities Europe

ETF ISHARES MSCI EURP QUALITY

ETF ISHARES MSCI USA QUALITY FACTOR

HSBC GIF ASIA EX JAPAN EQUITY SMALLER CIES

ETF ISHARES S&P LATIN AMERICA 40

HSBC GF ICAV - MULTI FACTOR EMU EQY

Positions reduced

Equities Europe



Bonds Asia ex-Japan

HSBC SRI EUROLAND EQUITY

HSBC GIF ASIA EX JAPAN EQUITY

ETF HSBC MSCI PACIFIC EX JAPAN

HGIF ASIA HIGH YIELD BOND


4

HSBC SELECT EQUITY

Portfolio's History

**except cash

EUR Share Class A


Region: Malta

31/0

7/18

25/0

1/19

26/0

7/19

24/0

1/20

24/0

7/20

22/0

1/21

23/0

7/21

0

20

40

60

80

100

120

Europe North America Emerging Markets Pacific ex-Japan

Japan Global Asia ex-Japan

Historical Allocation by Region**


5

31/0

7/18

25/0

1/19

26/0

7/19

24/0

1/20

24/0

7/20

22/0

1/21

23/0

7/21

0

20

40

60

80

100

120

Absolute Return Equities Bonds & Money Market

Historical Asset Allocation*

*derivative products' off-balance-sheet commitment included (except options)

HSBC SELECT EQUITY

*except derivative products' off-balance-sheet commitment

Equity component Analysis*

EUR Share Class A


Region: Malta

Asia ex-Japan 4,2 %

Emerging Markets 9,5 %

Europe 43,2 %

Global 5,2 %

Japan 5,4 %

North America 32,5 %

Pacific ex-Japan 0,0 %

Total : 100,0 %

31/0

7/18

25/0

1/19

26/0

7/19

24/0

1/20

24/0

7/20

22/0

1/21

23/0

7/21

0

20

40

60

80

100

Europe North America Emerging Markets Pacific ex-Japan

Japan Global Asia ex-Japan

EquityHistorical Allocation by Regionas at 30/07/2021


6

Bond component Analysis*

Corporate 0,0 %

Em. Hard Currency 9,7 %

Em. Local Currency 31,8 %

High Yield 58,4 %

Total : 100,0 %

31/07

/18

25/01

/19

26/07

/19

24/01

/20

24/07

/20

22/01

/21

23/07

/210

1

2

3

4

5

6

7

Corporate Em. Hard Currency High Yield Em. Local Currency

BondsHistorical Allocation by Strategy

as at 30/07/2021

HSBC SELECT EQUITY

Fund Manager Commentary

EUR Share Class A


Region: Malta

Economic Environment

Equity markets continued to be propelled higher by favourable corporate earnings reports and upgrades to results guidance despite the resurgence of the new delta variant. The US (S&P 500 NR +2.29% in euros) and eurozone (MSCI EMU NR +1.37%) markets continued their ascent towards record highs.The Chinese equity markets have already been fragile year-to-date and corrected sharply after the regulatory clampdown, mostly in domestic sectors (education, real estate and technology). The Hang Seng Index gave up 12.93% this month.US rates fell 27bps this month, and the publication of disappointing employment figures showed that the economy has not yet begun to overheat. The Federal Reserve’s reassuring messaging also caused US 10-year Treasury Bills to briefly sink below 1.13% before closing out the month at 1.23%. In Europe, the German 10-year yield eased to -0.46% after starting the month at -0.20%.During the month, the best performing sectors were technology, healthcare and real estate. taking advantage of low interest rates. Conversely, financial and energy stocks, both cyclical sectors, lagged.

Performance & current holdings

Our slight overexposure to the equity markets made a positive contribution to our performance in July. However, our geographic allocation favouring Europe over North America had a negative impact.In the eurozone, “momentum” stocks outperformed, returning +3.5%. We took the decision to reduce our index positions in favour of “quality” stocks. This defensive boost should protect the portfolio if Europe’s economies are late in reopening.In the US, the iShares S&P 500 Growth fund was propelled higher due to the demand for growth stocks. We decided to switch to the “quality” fund at the expense of our exposure to Canadian and US small caps.In our emerging markets component, we are continuing to reduce our exposure to Asia in order to strengthen our position on Latin America. We are increasing the percentage of Asian small caps at the expense of larger caps as the fund is more diversified on countries other than China.July proved to be unfavourable for some thematic funds such as Disruptive Technologies (-1.8% in euros) and Innovative Healthcare (-2.4% in euros) but our robotics-themed fund, linked to growth, held steady (+0.7% in euros).

Outlook

With the equity markets breaking one record after another, we are moderating our exposure to this asset class. Our geographic allocation remains diversified, with a preference for Europe, which is further behind in its recovery phase. Conversely, the United States seems to be approaching a peak in the recovery cycle.After turning in excellent performance year-to-date, we decided to reduce our positions on some index-linked funds and invest in “quality” funds, which are more defensive.On the forex market, we decided to take some profits on the pound sterling and increase our exposure to the dollar.


7

HSBC SELECT EQUITY

Fund Management Team

Laurence JobertFund manager

Laurence Jobert has been a multi-asset fund manager since December 2014. She joined HSBC in 2007 as an equity fund manager then as a relationship manager. Prior to joining HSBC, Laurence worked for La Banque Postale Asset Management as quantitative equity fund manager from 1999 to 2007. Laurence holds an Applied Mathematics Master’s Degree I from Paris I and Paris VII University and a Master’s Degree II in Quantitative Methods for Management from Paris X Nanterre University. She also holds a SFAF (Sociétédes Analystes Financiers) financial analyst degree and a CIIA (Certified International Investment Analyst) degree.

Stéphane MesnardFund manager

Stéphane Mesnard has been a multi-asset fund manager since November 2012 and he has been working in this sector since he joined the HSBC group in 2005. Before taking up his current position, he worked in the financial engineering department at Louvre Gestion (formerly Banque du Louvre), an investment management firm dedicated to the HSBC group's private banking activities in France. He gained a Master's degree in finance from Paris II - Panthéon Assas University and qualified as a Chartered Financial Analyst (CFA) in 2009.

EUR Share Class A


Region: Malta


8

HSBC SELECT EQUITY

Index Disclaimers

Bloomberg Barclays indices and associated data, Copyright © 2021 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. Eonia calculated by Thomson Reuters and Euribor-EBF. Neither Euribor-EBF, nor the respective Contributing Banks Steering Committees of Eonia nor Thomson Reuters can be held liable for any irregularity or inaccuracy of the Eonia Index. Eonia is a registered trademark of Euribor-EBF (Euribor European Banking Federation a.i.s.b.l.). All rights reserved. For all commercial use of the registered trademarks prior explicit authorisation needs to be obtained from Euribor-EBF. 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 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 for 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 as 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, all 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.mscibarra.com). If you have any doubts about the suitability of this investment, you should contact an independent financial adviser.

EUR Share Class A


Region: Malta


8



Fund Details

Document can be intended for non professional investors as defined by MIFID

The material contained herein is for information only and does not constitute investment advice or a recommendation to any reader of this material to buy or sell investments. There are risks involved with this type of investment. Investors and potential investors should read and note the risk warnings in the prospectus and relevant Key Investor Information Document (KIID). Past performance of investments is not necessarily a guide to future performance and the value of investments and any income from them can go down as well as up and you may not get back the amount you originally invested. The rate of currency exchange, where applicable, 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 established markets. You should view this investment as medium to long-term, and should plan to keep it for at least three years. HSBC Select portfolios are marketed in Malta in terms of the Directive on Undertakings for Collective Investment Schemes in Transferable Securities (UCITS). All applications are made on the basis of the relevant and current HSBC Select prospectus, the KIID of the related Fund and the most recent annual and semi-annual reports (when available), which can be obtained upon request free of charge from HSBC Bank Malta p.l.c which is licensed to conduct Investment Services business by the Malta Financial Services Authority. The Funds are manufactured by HSBC Global Asset Management (France) (the Portfolio Management Company) - RCS n°421 345 489 (Nanterre). The Portfolio Management Company is authorised by the French regulatory body AMF (n° GP-99026). Postal address: 75419 Paris cedex 08. Offices: Immeuble Cœur Défense - 110, esplanade du Général de Gaulle - La Défense 4 - France. The Portfolio Management Company has appointed HSBC Global Asset Management (Malta) Ltd, 80 Mill Street, Qormi, QRM 3101 as the Distributor of the Funds with the right to appoint sub-distributors. In Malta, the Funds are distributed to Investors through HSBC Bank Malta p.l.c. (a sub-distributor of HSBC Global Asset Management (Malta) Ltd). Approved and issued by HSBC Global Asset Management (Malta) Ltd, Business Banking Centre, 80, Mill Street, Qormi QRM 3101. Company Reg No: C26053 which is licensed to provide investment services in Malta by the Malta Financial Services Authority under the Investment Services Act. The information contained herein is subject to change without notice. All non-authorised reproduction or use of this commentary and analysis will be the responsibility of the user and will be likely to lead to legal proceedings. This document has no contractual value and is not by any means intended as a solicitation, nor an investment advice for the purchase or sale of any financial instrument in any jurisdiction in which such an offer is not lawful. The commentary and analysis presented in this document reflect the opinion of HSBC Global Asset Management (France) on the markets, according to the information available to date. They do not constitute any kind of commitment from HSBC Global Asset Management (France). For illustrative purpose only, the Fund manager commentary and analysis are a global view of the recent evolution of the economic conditions. This is a support which does not constitute neither an investment advice nor a recommendation to buy or sell investment. This commentary is not the result of investment research. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC Global Asset Management (France) accepts no liability for any failure to meet such forecast, projection or target. Consequently, HSBC Global Asset Management (France) will not be held responsible for any investment or disinvestment decision taken on the basis of the commentary and/or analysis produced in this document. All data come from HSBC Global Asset Management (France) unless otherwise specified. Any third party information has been obtained from sources we believe to be reliable, but which we have not independently verified. Capital is not guaranteed. It is important to remember that the value of investments and any income from them can go down as well as up and is not guaranteed. The performance figures relate to the past performance which should not be seen as an indication of future returns. The capital invested in the Funds can increase or decrease and is not guaranteed. Future returns will depend, inter alia, on market conditions, Fund manager’s skill, Funds risk level and fees. Any subscription to any Fund described in this document must be made on the basis of the information available in the Prospectus, KIID and Factsheet, which may be obtained from all branches of HSBC Bank Malta p.l.c. or by visiting the Distributor’s website at www.assetmanagement.hsbc.com.mt

Document updated on 05/08/21Copyright © 2021. HSBC Global Asset Management (France). All rights reserved.

Important Information

Region: Malta


9

Legal FormMutual Fund regulated under French lawInvestment horizon> 5 yearsDividend Policy(AC): Accumulation Shares*Start Date of Management04/10/1999Base CurrencyEURValuationDailySubscriptions & RedemptionsTen thousandths of shareDealing / Payment DateDaily - D (Business Day) before 12:00 pm (Paris) / D+2 (Business Day) Initial Fee / Exit Fee2.00% / NilMinimum Initial InvestmentWhole sharesPortfolio Management CompanyHSBC Global Asset Management (France)CustodianCaceis BankCentral Paying AgentCaceis BankISIN Code(AC): FR0007036900Bloomberg Ticker(AC): ACTIVRM FPFeesReal internal management fees 1.30% inc. taxes Maximum internal management fees 1.30% inc. taxes Maximum external management fees 0.30% inc. taxes Maximum indirect fixed management fees 1.00% inc. taxes

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HSBC SELECT EQUITY (A) - Global Asset Management from …