Important information:• HSBC Asian High Yield Bond Fund invests mainly in Asian high yield bonds.• HSBC Asia High Income Bond Fund invests mainly in higher yielding Asian fixed income securities.• HSBC Asian Bond Fund invests mainly in Asian bonds.• The Fund is subject to the risk of investing in emerging markets.• Non-investment grade bonds and unrated bonds are subject to additional risks and volatility.• Because the Fund’s base currency, investments and classes may be denominated in different currencies, investors may be affected

adversely by exchange controls and exchange rate fluctuations. There is no guarantee that the currency hedging strategy applied to the relevant classes will achieve its desired result.

• The Fund may pay dividends out of capital or gross of expenses. Dividend is not guaranteed and may result in capital erosion and reduction in net asset value.

• The Fund may invest in financial derivative instruments for investment purpose which may lead to higher volatility to its net asset value.• The Fund’s investments may involve substantial credit, currency, volatility, liquidity, interest rate, tax and political risks. Investors may suffer

substantial loss of their investments in the Fund.• Unit trusts are NOT equivalent to time deposits. Investors should not invest in the Fund solely based on the information provided in this

document and should read the offering document of the Fund for details.

HSBC Asian Bond Fund Series

2 HSBC Asian Bond Fund Series

Investment Opportunities in Asian Bond Markets1. Asian USD bonds have offered more attractive

returns with lower volatility

◆ Asian USD bonds have offered better returns with lower volatility

◆ Asian USD bonds may help diversify investment risks amid the current volatile market

Return(%)

Risk (Volatility)(%)

05

10152025303540

5045

0 1 2 3 4 5 6 7 8 9 10

Returns vs. volatility of major asset classes1

Asian HY Bonds

Asian IG Bonds

Asian Bonds

US IG Corp

Global High Yield

US HY Corp

US Treasury

Global BondsEuro IG Corp

Euro HY Corp

EM Hard Currency IG

EM Hard Currency HY

2. Asian USD bonds offer yield premium with shorter duration

◆ Asia high yield bonds provide more compelling yields than other regions amid the global low rate environment◆ The relatively short duration of Asia high yield corporate bonds may help mitigate the impact of interest rate movements

High yield bond market Investment grade bond market Yield to maturity (%) Duration (years)

0.0

2.0

4.0

6.0

8.0

Asia IG Corp (A3)

EM IG Corp (Baa1)

Euro HY Corp (Ba3)

US HY Corp (Ba3)

EM HY Corp (Ba3)

Asia HY Corp (B1)

US IG Corp (A3)

Euro IG Corp (A3)

7.47 7.32 7.166.35

4.103.51

7.39 6.94

4.153.65 3.87

3.25

1.010.60

4.373.69

0.01.02.03.04.05.06.07.08.0

4.27

8.01

5.15 5.40

3.07 3.14

3.17

3.92

Yield (5Y average) (LHS) Yield (LHS) E�ective duration (RHS)

Comparison between high yield and investment grade corporate bonds2

3. Asia high yield bond default rate is forecasted to be relatively low

◆ The default rate of Asia high yield bonds in 2020 is expected to be lower than that in most other regions◆ The supportive macro backdrop in Asia and no major refinancing risks from key issuers have helped stabilise the default rate

Asia high yield default rates (2012-2020F)3

2012 2013 2014 2015 2016 2017 2018 2019 Forecast 2020 ForecastAsia 2.70% 1.20% 1.50% 3.10% 1.00% 0.90% 2.50% 1.50% 2.00%EM Europe 5.20% 2.30% 4.00% 2.50% 3.60% 4.00% 0.00% 0.30% 2.40%Latin America 3.60% 10.60% 6.50% 5.70% 9.50% 2.00% 2.10% 1.90% 3.80%MENA 0.20% 0.00% 4.60% 4.00% 5.70% 3.20% 0.00% 1.80% 0.60%EM (total) 3.50% 4.30% 3.80% 3.80% 5.10% 2.20% 1.60% 1.50% 2.40%US 1.30% 0.70% 1.60% 1.80% 3.57% 1.27% 1.83% 2.75% 2.00%

4. Strong investment team

◆ Our veteran investment team is well-resourced, including 21 portfolio managers and 11 credit analysts, with 4 offices in Asia. The Asia bond assets under their management is USD85 billion4

◆ Accredited by the industry as the best Asian bond fund house in multiple years

An award-winning team4

Asian Bond House5

Asia Asset Management Best of the Best Awards2008, 2009, 2010, 2012, 2013, 2015, 2016 and 2018

Analysts11

Offices in Asia421

Managers

Source: 1. Returns and volatility were calculated based on USD. Investment involves risks. Past performance is not indicative of future performance. Euro High Yield Corporate Bonds and Euro Investment Grade Corporate Bonds: Merrill Lynch Euro Corporate & High Yield Index; Asian Bonds, Asian High Yield Bonds and Asian Investment Grade Bonds: JP Morgan JACI Investment Grade & High Yield Corporate Index; Emerging Market Hard Currency High Yield Bonds and Emerging Market Hard Currency Investment Grade Bonds: JP Morgan Corporate EMBI Broad Diversified Index; US Treasury Bonds, US High Yield Corporate Bonds and US Investment Grade Corporate Bonds: Merrill Lynch US Corporate & High Yield Index. Global High Yield Bonds: BoAML Global High Yield Index; Global Bonds: Bloomberg Barclays Global Aggregate. Data as of the 5-year period ending 27 December 2019. Volatility based on annualised yield volatility over the past five years. 2. JP Morgan Asia Credit Index (JACI), as of 30 November 2019. US IG Corporate – J.P. Morgan US Liquid Index (JULI); US HY Corporate – JP Morgan USD Domestic high yield index; Euro IG Corporate - Merrill Lynch Euro Corporate Index; Euro HY Corporate – Merrill Lynch Euro High Yield Index; Asia IG Corporate – JP Morgan Asia Credit Corporate Index Investment Grade; Asia HY Corporate – JP Morgan Asia Credit Corporate Index Noninvestment Grade; EM IG Corporate – Corporate Emerging Markets Bond Broad Diversified Index Investment Grade; EM HY Corporate – Corporate Emerging Markets Bond Broad Diversified Index Noninvestment Grade. 3. J.P. Morgan, data as of November 2019. The above is for illustrative purpose only and does not constitute any investment advice. Any changes to assumptions and factors used can have a significant impact on the results shown. For illustration purpose only. There is no guarantee of any kind, and it does not represent the performance of any HSBC products or strategic results. Any forecasts, projections or targets in this document is for reference only, and does not represent a guarantee of any kind. 4. HSBC Global Asset Management, as at 30 September 2019. 5. Asia Asset Management – Best of the Best Award 2018. HSBC Global Asset Management was awarded the Asian Bond House Best of the Best Awards 2008, 2009, 2010, 2012, 2013, 2015, 2016 and 2018.

3 HSBC Asian Bond Fund Series

Search for yield potential in the age of uncertaintySince 2019, the Asian credit market has recorded a positive return of 11.3% (as of 27 December 2019) which has outperformed various asset classes. Investors would then ask: Would the inflated trend be sustained for Asian credit market? The recent developments of the various risk factors like US / China trade tension, Brexit and other geopolitical uncertainties have further fueled the expectation for yields to stay low, which in turn has boosted the demand for yield.

The macro backdrop has support the Asian credit from technical aspects:-

◆ Firstly, amid the low inflation rates and slow economic growth, the dovish central bank policies globally (including Asia) have provided a supportive backdrop for Asian credit.6

◆ Secondly, Asian corporates (especially high yield) have yield premium over their peers, in addition to the relatively low volatility could help diversify the investment risks.6

◆ Thirdly, Chinese offshore bond issuance is expected to drop in 2020 on the back of tighter scrutiny of Chinese regulators, meanwhile investor demand for income continues to be strong, this trend may support the overall bond prices.6

HSBC Asian Bond Product Series7

HSBC Asian High Yield Bond Fund

HSBC Asia High Income Bond Fund

HSBC Asian Bond Fund

Suitable investorsSuitable for investors with high risk tolerance who seek high yield and growth potential

Suitable for investors willing to take moderate risks who wish

to receive potential income

Suitable for investors wishing to take lower risks who

seek risk-adjusted potential returns

Fund launch date 20 May 2011 24 February 2017 30 November 1995

Fund size USD 836 million USD 1.308 billion USD 2.015 billion

Share class

AC – USD/AC – HKD/

AM2 – USD/AM2 – HKD/

AM3H - AUD/AM3H - EUR

AC – USD/AM2 – USD/AM2 – HKD/AM2 – RMB/AM2 – CAD/AM2 – AUD/AM2 – EUR/

AM3O – AUD/AM3O – CAD/AM3O – EUR/AM3O – GBP/AM3O – RMB

AC – USD/AM2 – USD/AM2 – HKD/

AM3H – AUD/AM3H – EUR

Annualised yield based on ex-dividend date (AM2-USD) 8 (Distribution is not guaranteed and may be paid out of capital)

6.07% 4.85% 3.90%

Effective duration9 4.44 4.99 5.32

Average rating BB/BB- BBB-/BB+ BBB/BBB-

High yield and non-rated bond holdings 70% or above Up to 45% 20%

Subscription fee Up to 3.00% of total subscription amount

Up to 3.00% of total subscription amount

Up to 3.00% of total subscription amount

Management fee 1.25% pa 1.15% pa 1.00% pa

Switching fee Up to 1% of the switch-out proceeds

Up to 1% of the switch-out proceeds

Up to 1% of the switch-out proceeds

Source: 6. HSBC Global Investment Management, as at 3 January 2020. The views expressed were held at the time of preparation and are subject to change without notice. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. The information above is subject to change without notice. Sources of Asian credit returns are from JP Morgan, as at 27 December 2019. Investment involves risks. Past results are not indicative of future performance. 7. HSBC Global Asset Management, as of 30 November 2019. 8. This refers to AM2-USD and the annualised yield based on ex-dividend date, and the ex-dividend date is 31 December 2019 (data as of 31 December 2019). Distribution is not guaranteed and may be paid out of capital. Dividend is not guaranteed and may be paid out of capital, which will result in capital erosion and reduction in net asset value. A positive distribution yield does not imply a positive return. Past distribution yields and payments do not represent future distribution yields and payments. Historical payments may be comprised of both distributed income and capital. The calculation method of annualised yield: ((1 + (dividend amount/ex-dividend NAV))^n)-1, n depends on the distributing frequency. Annually distribution is 1; semi-annually distribution is 2; quarterly distribution is 4; monthly distribution is 12. The annualised dividend yield is calculated based on the dividend distribution on the relevant date with dividend reinvested, and may be higher or lower than the actual annual dividend yield. 9. Effective duration used above is a duration value based on the probability of early redemption call by the bond issuer.

4 HSBC Asian Bond Fund Series

Our Asian Bond Fund SeriesHSBC Global Asset Management offers a series of Asian credit products in meeting the diversifying needs of the investors.

Breakdown by credit rating ex cash (%)10

HSBC Asian High Yield Bond Fund

HSBC Asia High Income Bond Fund

HSBC Asian Bond Fund

19.1

80.9

44.4

33.5

15.8

3.32.10.6

59.740.7

19.0

20.5 16.640.3

2.41.8 0.3

75.3

10.0

11.6

46.6

27.6

24.7

1.13.2

Investment grade AAA AA A BBBNon-investment grade/Non-rated BB B CCC NR

Fund performance11

Cumulative performance (%, in USD)

YTD 1M 3M 1Y 3Y12 5Y12

HSBC Asian High Yield Bond Fund 14.33 1.04 2.61 14.33 18.08 32.07

HSBC Asia High Income Bond Fund 11.65 0.63 1.16 11.65 N/A N/A

HSBC Asian Bond Fund 10.74 0.41 0.81 10.74 14.88 21.02

Calendar year performance (%, in USD)13

2019 2018 2017 2016 2015

HSBC Asian High Yield Bond Fund 14.33 -3.29 6.79 9.97 1.70

HSBC Asia High Income Bond Fund 11.65 -2.77 3.97 N/A N/A

HSBC Asian Bond Fund 10.74 -1.45 5.26 3.64 1.65

Source: 10. HSBC Global Asset Management, as of 31 December 2019. This refers to AM2-USD. 11. HSBC Global Asset Management, as of 31 December 2019. Investment involves risk. Past performance is not indicative of future performance. The year to date performance is based on AM2-USD. The figures are calculated in US Dollar, NAV to NAV basis with dividend reinvested, net of fees. The calendar year return of the first year is calculated between share class inception date and calendar year end of first year if the share class has less than 5-year history.Fund changes of HSBC Asian High Yield Bond Fund that may have material impact on performance: 1 Jul 2017 - trustee fee reduced. 16 Nov 2018 - Change in the manner of charging preliminary charge/ switching fee. Fund changes of HSBC Asian Bond Fund that may have material impact on performance: 1 Mar 2007 – management fee reduced. 1 Jan 2011 – investment objective. 1 Jul 2017 - trustee fee reduced. 16 Nov 2018 - Change in the manner of charging preliminary charge/ switching fee. 12. Result is cumulative when calculation period is over one year. 13. The calendar year return of the first year is calculated between share class inception date and calendar year end of first year if the share class has less than 5-year history.

5 HSBC Asian Bond Fund Series

Source: 14. HSBC Global Investment Management, as at 31 December 2019. May not add up to 100% due to rounding.

Portfolio Asset Allocation14

HSBC Asian High Yield Bond Fund

Sector allocation (%) Geographical allocation (%)

Real Estate (42.9%)Energy (14.8%)Government (11.8%)Utilities (7.3%)Basic Materials (5.8%)Consumer Cyclical (4.1%)Banks (2.8%)Communications (2.1%)Consumer Non cyclical (1.9%)Industrial (1.8%)Other Sectors (4.3%)Cash (0.4%)

Weight%

China (52.6%)Indonesia (24.2%)India (11.3%)Hong Kong (2.6%)Sri Lanka (2.3%)Singapore (2.3%)Philippines (1.7%)Pakistan (1.1%)Macau (0.6%)South Korea (0.5%)Other Locations (0.5%)Cash (0.4%)

Weight%

HSBC Asia High Income Bond Fund

Sector allocation (%) Geographical allocation (%)

Real Estate (21.9%)Government (13.8%)Energy (12.1%)Banks (11.9%)Utilities (9.5%)Basic Materials (7.1%)Consumer Cyclical (5.0%)Diversified Finan serv (4.8%)Consumer Non cyclical (3.5%)Communications (3.3%)Other Sectors (8.4%)Cash (-1.2%)

Weight%

China (41.5%)Indonesia (15.6%)India (12.9%)Hong Kong (6.9%)South Korea (4.6%)Singapore (4.0%)Sri Lanka (3.8%)Philippines (3.3%)Thailand (2.8%)Macau (2.2%)Other Locations (3.6%)Cash (-1.2%)

Weight%

HSBC Asian Bond Fund

Sector allocation (%) Geographical allocation (%)

Real Estate (20.5%)Banks (16.7%)Energy (13.3%)Government (11.6%)Utilities (7.7%)Diversified Finan serv (7.0%)Communications (5.6%)Consumer Cyclical (4.3%)Basic Materials (4.0%)Industrial (2.5%)Other Sectors (7.0%)Cash (-0.1%)

Weight%

China (49.2%)Indonesia (14.0%)Hong Kong (8.5%)India (7.2%)South Korea (5.8%)Philippines (4.0%)Singapore (2.9%)Thailand (2.7%)Malaysia (1.9%)Sri Lanka (1.5%)Other Locations (2.2%)Cash (-0.1%)

Weight%

6 HSBC Asian Bond Fund Series

Potential risksHSBC Asian High Yield Bond Fund◆ Investment risk: repayment of investment principal is not guaranteed. The investment portfolio may fall in value and therefore

the investment may suffer losses◆ Emerging markets risk: many Asian markets are emerging markets. Emerging markets involve higher risks, including political,

taxation, economic, foreign exchange, liquidity, market volatility (e.g. interest rate and price volatility) and regulatory risks◆ Interest rate risk: bonds are more sensitive to interest rate fluctuations◆ Credit risk: may be exposed to loss equivalent to the investment value when the issuers default. Investment grade bonds are

subject to the risk of being downgraded to non-investment grade bonds. Non-investment grade bonds are subject to higher credit risk and counterparty risk

◆ Liquidity risk: the markets for non-investment grade and unrated bonds may be less active. Downgrading of the credit ratings of securities or their issuers may lead to reduced liquidity of the securities, making them more difficult to be sold

◆ Derivatives risk: including but not limited to market volatility, credit, counterparty, liquidity, valuation and leverage risks. If the issuers of the derivatives default or the securities or underlying assets cannot be liquidated or perform badly, the investment of investors may suffer significant loss or total loss under certain circumstances

◆ Risk associated with distribution out of capital: paying dividends out of capital or effectively out of capital represents a return or withdrawal of part of an investor’s original investment in a fund or a return or withdrawal of any capital gains attributable to that original investment. Such distribution may result in an immediate reduction in the net asset value per share of the Fund

◆ Currency risk: underlying investments of the Fund may be quoted in currencies other than the Base Currency of the Fund. The price may be adversely affected by fluctuations in the exchange rates between these currencies and the Base Currency, or in the case of currency-hedged share classes, the price may be adversely affected by fluctuations in the exchange rates between the hedging currency and the Base Currency

◆ Non-investment grade debt securities risks: compared to investment grade debt securities, the debt securities rated as non-investment grade by credit agencies (and unrated debt securities with similar credit quality) are subject to greater liquidity risk, higher volatility and credit risk and greater risk of loss of principal and interest.

◆ Other risks: convertible securities risk and geographic concentration risk

HSBC Asia High Income Bond Fund◆ Investment risk: the Fund is an investment fund. There is no guarantee that the Fund can meet its investment objectives◆ Concentration risk: the Fund principally invests in the Asian markets involving higher concentration risk. Compared to other

funds covering more diversified investment portfolio, the value of the Fund may be subject to volatility◆ Emerging markets risk: the Fund principally invests in the Asian markets, including those nations/regions deemed to be

emerging markets. Compared to more developed markets, investing in the emerging markets is exposed to higher risks (including political, taxation, economic, foreign exchange, liquidity, market volatility (e.g. interest rate and price volatility), settlement, trust, legal and regulatory risks) of losses

◆ Foreign exchange risk: assets and liabilities and/or unit classes of the Fund may be denominated in non-Base Currency (US Dollar), and may be subject to adverse impact caused by foreign exchange control regulations or exchange rates change between the Fund’s Base Currency and other currencies

◆ Risk associated with debt securities: the Fund is exposed to credit risk, non-investment grade rated or unrated securities risk, rating degrade risk, interest rate risk, volatility and liquidity risk, valuation risk, credit rating risk and sovereign debt risk

◆ Risk associated with distribution out of capital: any distribution of dividends paid out of capital or effectively out of capital of the Fund may result in an immediate reduction in the net asset value per share of the Fund

◆ Credit risk: may be exposed to loss equivalent to the investment value when the issuer defaults. Investment grade bonds are subject to the risk of being degraded to non-investment grade bonds. Non-investment grade bonds are exposed to higher credit risk and counterparty risk

◆ Other risks: currency conversion risk of RMB-denominated asset classes, debt risk in mainland, China and derivatives risk

HSBC Asian Bond Fund◆ Investment risk: the Fund is an investment fund and the repayment of the investment principal is not guaranteed. The

investment portfolio of the Fund may fall in value due to any of the following major risk factors and therefore your investment in the Fund may suffer losses

◆ Concentration risk: the Fund principally invests in the Asian markets. Compared to other funds with more diversified investment portfolio, the value of the Fund may be subject to volatility. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, taxation, legal or regulatory events affecting the Asian markets

◆ Currency risk: as assets and liabilities and/or unit classes of the Fund may be denominated in currencies other than the Base Currency, the Fund may be subject to adverse impact caused by foreign exchange control regulations or the exchange rates change between the Fund’s Base Currency and other currencies

◆ Emerging markets risk: many Asian markets are emerging markets. Compared to developed markets, investing in emerging markets is exposed to the risk of higher losses because it involves, among other things, higher political, taxation, economic, foreign exchange, liquidity, settlement, trust, market volatility (e.g. interest rate and price volatility), legal and regulatory risks

◆ Interest rate risk: the Fund invests in fixed income instrument, and its value will fall correspondingly once the interest rate changes. In general, the price of fixed income instrument will fall when the interest rate increases, while its price will rise when the interest rate decreases

◆ Credit risk: the Fund’s bond investment is exposed to the credit risk of bond issuers. The Fund may suffer losses equivalent to the investment value once the bond issuers default

◆ Non-investment grade and unrated bonds risk: the Fund may invest in non-investment grade rated or unrated fixed income securities. Compared to fixed income securities with higher ratings, these securities generally have lower liquidity and higher volatility, and the principal and interest may be subject to higher risks of losses

7 HSBC Asian Bond Fund Series

Important information

The value of investments and the income from them can go down as well as up and investors may not get back the amount originally invested. Past performance contained in this document is not a reliable indicator of future performance whilst any forecasts, projections and simulations contained herein should not be relied upon as an indication of future results. Where overseas 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 some established 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 relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade. These economies also have been and may continue to be affected adversely by economic conditions in the countries in which they trade. Mutual fund investments are subject to market risks, read all scheme related documents carefully.

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 this document 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 advice or 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 or forecasts 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 from those 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 update the 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, nor a 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 Global Asset Management Global Investment Strategy Unit 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 by HSBC Global Asset Management primarily reflect individual clients’ objectives, risk preferences, time horizon, and market liquidity.

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. This document has not been reviewed by the Securities and Futures Commission. HSBC Global Asset Management is the brand name for the asset management business of HSBC Group. The above communication is distributed in Hong Kong by HSBC Global Asset Management (Hong Kong) Limited.

Copyright © HSBC Global Asset Management (Hong Kong) Limited 2020. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Global Asset Management (Hong Kong) Limited.