HSBC Asia Pacific ex Japan Equity Volatility Focused Fund

Important Information:• The Fund is subject to the risks of investing in emerging markets.• For certain classes of the Fund, the Fund may pay dividends out of capital or pay dividend gross of expenses. Investors should note that the

payment of dividends out of capital or effectively out of capital represents a return or withdrawal of part of the amount they originally invested of from any capital gains attributed to the original investment. Such distributions may result in an immediate decrease in the net asset value of the Fund.

• The Fund’s investment may involve substantial market, currency, volatility, regulatory and political risk. 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.

Keep calm to capture the opportunities in Asia Pacific equities

Recent spikes point to pick-up in equity market volatility

Asia Pacific ex Japan is a big beneficiary of declining oil prices

As a net oil importer, Asia has emerged as one of the biggest winners from the collapse in the global oil price. Oil imports stand at a sizeable 3.4% of GDP (around USD550 billion) and 18% of total imports in 2014

Asian countries besides Malaysia are likely to get a GDP growth boost of 0.3% to 1.35% should lower oil prices continue in 2015

Energy stocks comprise a relatively small part of the MSCI AC Asia Pacific ex Japan equity, implying a lower impact of declining oil prices on index earnings and therefore less of a headwind for index performance

Superior source of dividends, long term shareholder return

Asia Pacific ex Japan equities offer broader diversification

Asia Pacific ex-Japan universe offers broader sector diversification relative to key regional single-country indices

The Fund invests in a portfolio of around 60 - 90 stocks that provide well-diversified exposure across sectors and countries

The larger universe allows the Fund to invest in quality companies which offer an attractive combination of profitability and valuation, as well as sustainable cash flows

Equity market volatility has fallen recently to pre-crisis lows, barring a few spikes. However, we may see more volatility and potentially less stability in the upward trend established over the past few years amid uncertainty over US monetary policy tightening, global policy divergence and geopolitical tensions

With volatility set to increase, an active investment strategy combining lower volatility, quality, and value can be advantageous in capturing long-term investment returns while navigating short-term uncertainties

Asia Pacific ex Japan equities has been a consistent source of higher dividend yield and shareholder return relative to other key equity markets. The inclusion of Australia in Asia Pacific ex Japan compared to Asia ex Japan offers both return potential and diversification

The Fund targets companies that generate a high Return on Invested Capital (ROIC) relative to its valuation. Profitable companies have the flexibility to pay dividends in a low-interest rate environment

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Why invest?

Asia Pacific index has lower exposure to energy sector1

Total equity return since 19992

Source: 1. MSCI, data as of December 2014. For illustrative purposes only and does not constitute any investment recommendation in the above-mentioned sectors. Past performance is not indicative of future performance. 2. Datastream, CLSA Asia Pacific Research, data as of 31 December 2014. Returns are based on MSCI indices. Investment involves risk. Past performance is not indicative of future performance. 3. HSBC Global Asset Management, MSCI as of 31 December 2014. 4. HSBC Global Asset Management, Bloomberg as at 27 January 2015.

Dividend Return

Asia Pacific ex Japan delivers 2nd highest dividend return since 1999. Australia is the highest.

Price Return

MSCI AC Asia Pacific ex Japan

MSCI Emerging Markets

MSCI AC World Index

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Consumer Discretionary

Industrials Materials Energy Financials IT Consumer Staples

Health Care

Telecom Services

Utilities

Equity market volatility pre-crisis lows, but has risen recently4

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AC Asiaex-Japan

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Australia Asia Pacex Japan

Asia exJapan

USA Europe Japan

Broad sector diversification relative to single-country indices3

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MSCI Asia Pacific ex Japan

MSCI AC World Index

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Indicative portfolio is for illustration purpose only and the actual universe and allocation may differ.

Investment involves risk. Please refer to the offering document for further details including the risk factors. The document has not been reviewed by the Securities and Futures Commission.

The document is prepared for general information purposes only. All views expressed cannot be construed as an offer or recommendation by HSBC Global Asset Management (Hong Kong) Limited (“AMHK”). AMHK and HSBC Group shall not be held liable for damages arising out of any person's reliance upon this information. Any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment.

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)

Issued by HSBC Global Asset Management (Hong Kong) Limited www.assetmanagement.hsbc.com/hk

Mar

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Indicative portfolio (as of 12 February 2015)

Investment objectiveThe Fund aims to provide long term total return by investing in a portfolio of Asia Pacific ex Japan equities. It aims for lower portfolio volatility relative to that of the MSCI AC Asia Pacific ex Japan USD Net Index through portfolio optimisation to lower overall portfolio volatility by selecting a combination of lower volatility stocks and higher volatility stocks that are less correlated and thereby diversifying the portfolio.

Country allocation

Sector allocation

Fund details

Initial offer period

Launch date

Share class

Base currency

Currency

Minimum investmentInitial offer price

Management fee

Switching fee

Dealing

Dividend policy

Lead fund manager

Investment advisor

HSBC fund code

HSBC risk level

16 March - 26 March 2015

26 March 2015

Class AM-USD / AM-HKD

USD

USD / HKD

USD1,000 / HKD10,000 USD10.554 / HKD10.554(includes a sales charge of 5.25% of the initial offer price)

1.75% per annum

1%

Daily

Monthly, if any

Sanjiv Duggal, Hugh Lee

HSBC Global Asset Management(Hong Kong) Limited

U62652 (Class AM-USD) / U62653 (AM-HKD)

3 (Class AM-USD / AM-HKD)

Dividend is not guaranteed and may be paid out of capital which will result in capital erosion and reduction in net asset value. Any change to such dividend policy is subject to the SFC's approval and prior investor notification. Composition of the latest dividend is available from HSBC Global Asset Management on request and also on website.

Subject to on-going review by The Hongkong and Shanghai Banking Corporation Limited.

Suitable investors

The Fund may be suitable for investors who:

would like equity exposure in Asia Pacific ex Japan but with lower

risk appetite

understand and are willing to take the risk associated with investing in

the equity markets

Due to "volatility focused" approach, investors in this Fund may

have less sensitivity to both up and down markets, especially during

periods where the markets are momentum driven.

Potential risks

Investment risk: the Fund is an investment fund. There is no

guarantee of the repayment of principal and your investment in the

Fund may suffer losses

Concentration risk: the Fund invests primarily in the Asia Pacific (ex

Japan) markets which involve higher concentration risks

Foreign exchange risk: the Fund's assets and liabilities may be

denominated in currencies (such as AUD) different from its base

currency (USD), it may be affected unfavorably by exchange control

regulations or changes in the exchange rates between the Fund’s

base currency and other currencies

Equity risk: if the market value of equity securities in which the Fund

invests in goes down, its Net Asset Value may be adversely affected,

and investors may suffer substantial losses

Derivative risk: derivatives are subject to insolvency or default risk of

the issuers or counterparties

Materials 2.0%

Financials 36.4%

Telecom Services 16.0%Consumer discretionary 11.9%

Thailand 2.0%

Taiwan 21.3%

Hong Kong 13.7%

Australia 13.1%India 10.0%

China 9.6%

Singapore 8.4%

Korea 7.6%

Philippines 5.8%

Indonesia 3.4%Malaysia 3.2%

New Zealand 2.0%

Information Technology 9.4%

Utilities 9.0%

Consumer staples 7.2%

Industrial 4.2%Energy 2.0%

Health Care 2.0%

Product Key Facts Explanatory Memorandum