HSBC Amanah FundsShariah compliant solutions

Introduction

This insert outlines the funds available from the HSBC Amanah

Funds SICAV (HSBC Amanah Funds). HSBC Amanah Funds are

specifically designed for investors who wish to invest in equity

markets in compliance with Shariah (Islamic law).

HSBC Amanah funds are HSBC Global Asset Management’s

global flagship range of Islamic equity funds and have been

developed to provide you with access to a selection of equity

investment opportunities.

How are the HSBC Amanah Funds managed?

These shariah-compliant funds are brought to you by HSBC

Amanah and are managed by SINOPIA Asset Management

(SINOPIA). The expertise of both these areas are combined to

offer you innovative investment options.

SINOPIA is the specialist quantitative management arm of the

HSBC Group with a network of offices in Europe and Asia. More

information on HSBC Amanah is contained later in this fund insert.

How are the HSBC Amanah Funds structured?

HSBC Amanah Funds is an investment company

(Société d’Investissement à Capital Variable) constituted in the

Grand Duchy of Luxembourg and qualifies as an Undertaking

for Collective Investment in Transferable Securities (‘UCITS’)

and is recognised for sale in the UK by the Financial Services

Authority. The Company is organised as an umbrella structure

with the ability to issue shares of different classes

corresponding to different sub-funds.

About HSBC Amanah Funds

HSBC Amanah

HSBC Amanah is the Islamic financial services division of

the HSBC Group. With experienced personnel working from

regional offices, HSBC Amanah is uniquely positioned to

understand, structure, and deliver financial solutions that are

compatible with the requirements of Shariah.

Central Shariah Committee

All Shariah compliant investments must be certified by experts

in Shariah, generally through a panel or board comprised of

respected Shariah scholars who are qualified to issue “Fatwas”

(religious rulings) on financial transactions. This panel of

Shariah experts ensure full compliance of all Shariah compliant

investment funds.

HSBC Amanah is guided and supervised by the HSBC Amanah

Central Shariah Committee, an independent committee of Islamic

scholars. These scholars of international repute are well versed

in both Islamic law and modern finance. The Committee not only

provides initial approvals on investment objectives and investment

strategy of all funds, but also reviews the investments periodically

to ensure the continuous compliance of the investments of the

funds to Islamic principles. The Committee conducts annual audits

of all funds to ensure adherence to their rulings during the year.

Please refer to the prospectus and/or relevant simplified

prospectuses for more information.

Investment Objective

HSBC seeks to provide a comprehensive range of sub-funds

combined with professional management for the purpose of

spreading investment risk and to satisfy the requirements of

investors seeking income, capital conversion and growth. All

investments will meet Shariah principles as interpreted and

laid down by the HSBC Amanah Central Shariah Committee

and provided to the Board of Directors. The investment process

ensures adherence to Shariah principles which HSBC Amanah’s

Central Shariah Committee monitors closely on a regular basis.

Sectoral, financial ratios and transaction screenings take place

before any trade is entered into.

Shariah Investment Restrictions

The Central Shariah Committee of HSBC Amanah has

determined two screening criteria that investment funds will

not invest in. These screening criteria are:

1) Sectors:

Companies whose primary core activities include:

2) Financial characteristics:

Companies which exhibit certain financial characteristics

which Islam has disallowed as some elements render them

Haraam (unlawful). Such characteristics include levels of debt

and interest bearing securities.

Alcohol Weapons

Tobacco Pork

Financial services Gambling

Pornography Leisure/media

Dealing times

Investment instructions should be received by us before 5pm

daily with the exception of Global Equity where the cut off

time is 3pm. The purchase and redemption price used will be

calculated on either one or two business days later depending on

the Amanah fund. Please see the prospectus for further details.

Charges

Initial charge

This is up to 5.25% and is included in the purchase price of

your shares in each fund. The initial charge is a one off fee

and therefore will not be refunded if you decide to cash in

your investment. We do not make a charge when you sell

your shares. Please see the prospectus for more details.

Annual management charge

An annual charge is levied on each of the HSBC Amanah

Funds which will be up to 1.50% excluding administration and

custody fees, see prospectus for details.

Switching fee

If you switch to another fund within the Freedom Plus range

that has a higher initial charge the difference will be deducted

from your investment.

Tax

HSBC Amanah Funds are based in Luxembourg, an

internationally recognised financial centre. As a result, the

internal taxation of the funds is very low at just 0.05% per

annum of their net asset value.

You may be liable to personal taxation on the profits, income

and gains realised from, or accruing within, the underlying

investments under the domestic tax laws of the country

in which you are resident and/or a country in which you

are liable to taxation. We therefore recommend that you

seek independent tax advice as to the treatment of your

investments if you decide to invest through this service.

Currently (December 2008) dividends, or payment of

redemption proceeds from HSBC Amanah Funds shares

held via our Jersey ‘Freedom Plus’ nominee service, are

outside the scope of Jersey’s legislation based on the

European Savings Directive.

Although we expect this position to remain unchanged, as

it is based on the asset mix of HSBC Amanah Funds, we

cannot guarantee this. The way your returns are treated for

tax purposes will depend on your country of residence, local

regulations and your personal circumstances.

As with any investment you should ensure that the fund

is appropriate not only to your tax position but also to your

personal investment needs. Any tax information in this

brochure is based on our understanding of current and

proposed legislation and practice. The accuracy of this

information or its completeness cannot be guaranteed. The

legislation and practice may be subject to change.

Key Risks

Market

It is important to note that the Shariah investment restrictions

placed on the investments in the HSBC Amanah Funds may

result in the funds performing less well than funds with

similar objectives which are not subject to these restrictions.

A broad range of funds are available from both developed

and emerging markets. Some funds focus on one particular

country, geographic region or sector whereas others are

spread throughout the globe. These factors can affect the

level of volatility and potential for return.

Investments in emerging markets are by their nature higher

risk and potentially more volatile than those inherent in

established markets. Emerging markets are generally, but

not exclusively, those that are not within the United States,

Canada, Switzerland and members of the European Economic

area, Japan, Australia and New Zealand.

Currency

Where your base currency differs from the currency in which

the fund is denominated, or where the investment manager

buys stocks and shares in currencies other than that of the

fund, you will have an exchange rate exposure, which could

affect the value of your investment.

Asset type

Broadly speaking, higher risk funds invest entirely in equities

and gain exposure to stock market fluctuations; they also

have the potential for higher returns than other assets.

As with any investment where the underlying investments

are stocks and shares, the price of shares in HSBC Amanah

Funds and any income from them can go down as well as up,

is not guaranteed, and you may not get back the amount of

your original investment.

Remember, these funds should be considered as a medium

to long-term commitment, for example at least five years

Please see relevant Simplified Prospectus and Prospectuses

for more information.

Important notesAny decision to invest in HSBC Amanah Funds should be

based on the content of the Prospectus, Application Terms and

Conditions and Nominee Service Agreement.

UK and Isle of Man investors will not be protected by

statutory compensation arrangements if they invest in any of

the HSBC Amanah Funds. Should a fund fail, investors are

reminded that they will be excluded from the benefit of the

rules and regulations made under the UK Financial Services

and Markets Act 2000 including the UK Financial Services

Compensation Scheme.

For further details on these sub-funds and past performance

please visit the web site at: www.offshore.hsbc.com or call

+44 1534 606389 (Monday to Friday exc. UK and Jersey Bank

Holidays, 9am to 5pm UK time). To help us continually improve

our services and in the interests of security we may monitor

and/or record your communications with us.

This offer is not available to residents of Australia,

Canada, Hong Kong, Malaysia, United States of America

or New Zealand.

This is an integral part of the HSBC Freedom Plus brochure and

should be read in conjunction with it. Please refer to the main

brochure for additional important information. Before investing

in any of the products in the HSBC Amanah Funds range, please

read the full Prospectus and the sub-funds relevant Simplified

Prospectus for more information and a detailed explanation of

the risks involved.

GF0966 BRO0162/08/2009 © Copyright HSBC Global Asset Management (International) Limited 2009. All Rights Reserved.

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