Hsbc Isf Multi Alpha

HSBC Multimanager MultiAlpha Overview

JANUARY 2009HSBC Global Asset Management

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Contents

Background

AppendicesFund DetailsFund Performance Targets, Tracking Errors & FeesFund Performance Statistics

Section 1

Appendix I

Appendix II

Appendix III

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What is Multimanager?

HSBC Multimanager is a specialist division of HSBC Global Asset Management.

HSBC have committed substantial global resources to create a Multimanager capability that allows us to bring together the world’s most skilled investment managers – whether they work for major investment groups or small boutiques.

HSBC Investments Select Fund

MultimanagerClient

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Who is Multimanager?

A global powerhouse

A dedicated and experienced global team– 42 Multimanager investment specialists based in major financial centres (New York, London, Paris,

Hong Kong, etc.)

Acknowledged expertise in open architecture – Multimanager portfolios managed since 1994– More than USD 79 billion assets under advice

and management at end November 2008

TorontoNew York

LondonParis

Dusseldorf

DubaiMumbai Hong Kong

TaiwanTokyo

São Paolo

Bogotá

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Operations

Why choose a Multimanager fund?

Choosing an investment is more complex than it looks:

No single asset manager has a monopoly on talent

No fund manager is an expert in all asset classes

Even the very best managers may occasionally underperform

Using a single manager is inherently risky

Diversification

Performance

Asset Allocation

Ongoing monitoring

Style allocation

Portfolio Management

Buy / Sell Discipline

RebalancingResearch

Risk Control

Best of Breed

Alpha / Beta

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What is MultiAlpha?

Alpha vs beta

Alpha:

An indicator of risk adjusted performance of a fund, ie the performance over (or under) the benchmark index. The objective will be to generate positive alpha, therefore outperforming the index

Beta:

The tendency of a fund (or portfolio) to move in line with its associated market benchmark (ie the tendency of a US equity fund to move in line with the S&P500 index). A beta of 1 is an exact replication (index funds or ETFs would be very close to 1)

MultiAlpha:

Combining a range of managers who produce alpha via different methods and blending them together in order to control risk and generate superior fund performance

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The MultiAlpha concept at HSBC Global Asset Management

Why we built MultiAlphaGlobal reach – A need for a truly global multimanager product platform giving access to the best managers in each market and each asset class

Efficiency and clarity – A pure manifestation of our multimanager expertise

MultiAsset building blocks – A series of building blocks for the best MultiAsset solutions for clients in both Wholesale and Institutional segments

MultiAlpha: The conceptA differentiated product offering:– Pure “best ideas” portfolios– Bias to boutique investment managers– Unconstrained portfolios– Product that leverages our global investment strength

MultiAlpha – a truly global platform with unique access to “best in breed” managers

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Manager research

Over 40 investment professionals with average experience above 10 yearsFocused on identifying investment strategies that outperform and blending them effectively

How do we identify outstanding strategies? We must have an information and an analytical advantage

Our information advantage comes from:– Having specialists close to the strategies and markets they follow– Who can compare managers objectively to identify “best in class”– Who can discover new managers and new strategies

Our analytical advantage comes from:– A rigorous research process– Quantitative and qualitative analysis– A globally consistent research process

Our global investment footprint represents a significant competitive advantage

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Portfolio management process

Understanding the alpha driver within a manager’s processUnderstanding the area of the market where there focus thisUnderstanding how the manager applies this processAnalysing the ‘interaction’ effect between highly-rated managersCombining them effectively

Combining powerful and different alpha streams

Alpha Focus

ProcessInvestment

Habitat

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MultiAlpha funds available

First phase MultiAlpha funds launched successfully during July and August 2008

MultiAlpha Asia Pacific ex Japan Equity

MultiAlpha Europe Equity

MultiAlpha Global Emerging Markets Equity

MultiAlpha Global Equity

MultiAlpha Japan Equity

MultiAlpha North American Equity

NB. Central Bank approval is pending for these funds.

Appendix I: Fund Details

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MultiAlpha: Asia Pacific ex Japan Equity Fund

Performance benchmark: MSCI Asia Pacific ex Japan Equity

Performance targets: 300bps per annum net over rolling 3-5 years

Indicative tracking error: 5%

Investment vehicle: HISF Luxembourg UCITS platform

Key share classes: A class = 1.5% AMC, 2.0% TER; I class = 0.75% AMC, 1.15% TER

Minimum initial investment and holding: USD 5,000

Proposed capacity: USD 1,500m

Underlying managers & weighting: Resolution – 40%

TT – 35%

Lindsell Train – 25%

Lead Multimanager analyst: Arts Masuda

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Introduction – MultiAlpha Asia Pacific ex Japan

Resolution 40% Stable, experienced team of country specialistsProven processConsistent history of out-performance at moderate risk levels Low correlation with Tiburon and TT

Tiburon 25% Experienced, knowledgeable PMContrarian investorProven process Low correlation with Resolution and TT

TT 35% Focused team with experience complementary to processProven process, employed successfully in Europe/EAFE since 1988Organizational structure promotes alignment of interests Low correlation with Resolution and Tiburon

A unique combination of namesLowly-correlated, high-conviction managersThematic aspect within the structure

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MultiAlpha: Asia Pacific ex Japan

Resolution 40% Part of Resolution Asset management, the Asian products are managed by a boutique (stable and experienced) team who leverage the resources of the larger organisationThe team are motivated to succeed and the compensation structure ensures a team approach –each accountable for stock selection buy bonus linked to overall performanceProven process includes a proprietary screening tool and company-specific visitsApproach embraces both top-down and bottom-up elements Emphasis on identifying companies delivering superior earnings growth in markets that provide adequate returns for risk

Tiburon 25% Small, privately owned investment management firm with most of its assets in Asia; and in Mark Fleming they have a PM with insight and great market knowledgeThe strategy has an Absolute Return focus that blends macro themes and business cycle analysis to guide research and stock selection efforts. This helps identify those undervalued stocks and a technical analysis determines a suitable entry and exit point for each positionThe end result is a portfolio of a well-diversified range of high-conviction ideas

TT 35% Private partnership, many of whom are involved in investmentJeremy Ip, the lead PM is talented and motivated and leads a focused team of experienced stock-pickersFundamental bottom-up research is employed to exploit market inefficiencies. A global macro framework then facilitates security selection and portfolio constructionHedge Fund mentality ensures that losers are cut and resources redeployed to higher-conviction ideas

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Alpha Focus ProcessBehaviour Technical Predictive Earnings Valuation Top Down Qual Quant Into adv Proc. adv

Manager 1

Manager 2

Manager 3

Manager 4

Manager 5

Consolidated Position

The best results can be achieved by combining managers with complementary styles, risk exposures and alpha sources

Source: HSBC Multimanager/Style Research. For indicative purposes only.

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MultiAlpha: Europe Equity Fund

Performance benchmark: MSCI Europe Equity


Indicative tracking error: 2.50%


Key share classes: A class = 1.5% AMC, 1.9% TER; I class = 0.75% AMC, 1.0% TER



Underlying managers & weighting: JO Hambro Capital Management – 50%

AGR – 50%

Lead Multimanager analyst: Pascale Huard

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Introduction – MultiAlpha Europe

JO Hambro 50% UK-based boutique managerStrong portfolio manager – Rod MarsdenPragmatic investment approachRobust ‘bottom-up’-driven processSupported by long-term market cycle analysisFocus on earnings momentum and earnings surprise

AQR 50% Quantitative investment boutiqueExtremely stable team with senior professionals together for 15yrsDynamic factor processComprises different alpha streams (stock, country, currency)

Lowly-correlated, high-conviction managersWell-diversified portfolioLow active risk function of AQR signal/noise optimisation

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MultiAlpha: Europe Equity

JO Hambro 50% Independent UK-based boutique manager, established in 1993, responsible for a number of European strategiesThe investment process is run by a strong and experienced portfolio manager (27 years’ experience) –Rod Marsden – supported by a co-managerThe investment process is ‘bottom-up’-driven with a strong top-down overlay.This leads to stock picking and may be the key source of outperformance in economic/market inflection pointsMarsden’s stock selection is focused on earnings momentum and specifically picking stocks which are expected to exhibit positive earnings surprise

AQR 50% AQR is a quantitative investment boutique established in 1998 with a focus primarily on institutional mandatesThe investment team is both extremely stable and very senior with professionals together for 15 years. There is also a significant human (quant) resource and research effortThe quant model is extremely robust with backtested quality data from the late 70s and early 80s for much of the strategyThe model combines both value and momentum and accesses different alpha streams (stock, country, currency)Any significant changes to the model are debated at the top level and the team keeps a collegiate approach towards investing

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MultiAlpha: Global Equity Fund

Performance benchmark: MSCI World Equity




Key share classes: A class = 1.5% AMC, 1.9% TER; I class = 0.75% AMC, 1% TER



Underlying managers & weighting: Taube Hodson Stonex Partners – 40%

Longview Capital Management – 30%

Spencer House – 30%

Lead Multimanager analyst: Ana da Maia

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MultiAlpha – Global Equity

Longview Partners

30% Absolute oriented productSmall boutique firm, with very strong team-oriented cultureStrong bottom-up research-driven processDCF-based investment approach, focusing on valuation, business fundamentals

and quality

Taube, Hodson, Stonex

40% Small boutique partnershipStrong focus on global equitiesStrong, high calibre, investment teamCombination of bottom-up stock-picking and industry thematic drivers

Spencer House Capital Management

30% Small boutique firm Unconstrained best ideas portfolioExperienced team ex Deutsche/Morgan GrenfellStrong US expertise

Well-diversified structureDifferent managers have different regional strengthsStructure comprises three very aggressive managers

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MultiAlpha: Global Equity Fund

Longview Partners

30% Small boutique firm, with very strong team-oriented culture – 30% owned by Rabobank and 70% by working partners‘Absolute Return’-oriented productStrong bottom-up research-driven process focused on identifying cheap companies with a business model that can deliver recurring earnings‘Discounted Cash Flow’-based investment approach, focusing on valuation, business fundamentals and quality

Taube, Hodson, Stonex

40% Small boutique partnership of experienced investors (strong, high calibre investment team) who all are equal owners of the businessStrong focus on global equities. Mainly value-driven investors who will take contrarian views building positions over a long periodBottom-up stock-picking combined with a well developed research discipline focusing on industry thematic driversWill invest in the full spectrum, but this portfolio is restricted by liquidity to mid- and large-cap investments

Spencer House Capital Management

30% Small boutique firm which is owned by the founding partners and senior fund managersThe team are well aligned with interests of clientsUnconstrained best ideas portfolio, driven primarily by stock selection, framed by a global top-down viewExperienced team ex Deutsche/Morgan Grenfell with a strong US expertise

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MultiAlpha: Global Emerging Markets Equity Fund

Performance benchmark: MSCI Emerging Markets Equity




Key share classes: A class = 1.5% AMC, 2% TER; I class = 0.75% AMC, 1.15% TER



Underlying managers & weighting: Gartmore – 50%

Panagora – 25%

Framlington – 25%

Lead Multimanager analyst: Eckhard Weidner

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Introduction – MultiAlpha Global Emerging Markets

Gartmore 50% Strong and well resourced team lead by Chris PalmerWell-calibrated bottom-up investment processProprietary fundamental sector research-driven alphaUnrecognised growth focus

Axa Framlington

25% Differentiated thematic/’top-down’-oriented processStrong focus on secular economic growthFlexible investment style

Panagora 25% Quantitative investment processHighly differentiated country allocation focusValue and momentum orientation

Lowly-correlated, high conviction managersVery different process types – quant/ country, thematic, fundamental bottom-up

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MultiAlpha: Global Emerging Markets Equity

Gartmore 50% Strong and well-resourced team lead by Chris Palmer. Management buyout in 2006 has closely aligned the interests of clients, shareholders and fund managersChris Palmer has a strong personal track record (long only and hedge fund) and the team is well-balanced in terms of experience (markets, industries etc)Stocks are selected for undervalued or undiscovered longer-term growth potentialThe research team is organised on a global sector basis which improves the understanding of individual companies and supports strong idea generation

Axa Framlington

25% Owned by Axa Investment Management but remains a specialist fund management company with ability to hire and retain high quality, experienced professionalsFund manager William Calvert has good EM macro experience and has a good understanding of market driversIdea generation driven by his top-down views and this top-down/macro research drives stock selectionLooks for countries with strong economic growth and then identifies industries/companies that are drivers or beneficiaries of that environment

Panagora 30% A specialist quantitative investment manager that is majority owned by Putnam Investments, themselves owned by Great-West Lifeco (Canadian)David Liddell (GEM strategy) and Mark Barnes (Quant manager) are key individuals. They and their staff are aligned with the success of their fundsPure country allocation approach that is looking to exploit the lower correlation between emerging market countries versus higher correlation of stocks within a marketModel is designed to forecast alpha opportunities for each country in the MSCI index, based on the aggregate of stock data, rather than macroeconomic fundamentals

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Detailed multi-factor tracking helps to inform our face-to-face research interviews

Value Growth Momentum


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MultiAlpha: Japan Equity Fund

Performance benchmark: Topix







Underlying managers & weighting: Funnex – 30%SGAM – 25%Lindsell Train – 15%T Rowe Price – 30%

Lead Multimanager analyst: Arts Masuda

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MultiAlpha Japan

A blend of established and boutique managersMix provides a complementary blend of long, medium and short time-horizon managersOf the four managers, SGAM is an important diversifier; Lindsell Train most aggressive

T-Rowe Price 30% Global investment house with Tokyo based analyst teamHighly experienced portfolio managerLong term growth orientation, large and mid cap expertise

Lindsell Train 15% UK based boutique partnership High experienced portfolio manager, Michael LindsellLeverages on long term investment in concentrated value portfolio

SGAM 25% Disciplined value managerLarge cap product focus

Funnex 30% Domestic Japanese equity boutiqueRelatively unique value and momentum processCombine core/satellite portfolio methodology

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MultiAlpha: Japan Equity Fund

T Rowe Price

30% Large global investment house with a stand-alone Tokyo-based Japan strategyCampbell Gunn is a highly experienced portfolio manager, with 23 years’ experience, supported by a high-calibre team of analysts from diverse backgroundsThe process is based on bottom-up stock selection across sectors and the portfolio has a long-term growth orientation, and reflects the large- and mid-cap expertise

Lindsell Train

15% UK-based boutique partnership with two fund managers. Of those, Michael Lindsell (a highly-experienced portfolio manager) focuses upon JapanLong term investment view taken with low stock turnover (30-40%) and most positions taken for 3-4 years Indifferent to benchmark with a concentrated value portfolio of usually less than 30 stocksStrong emphasis on quality of cash generation, dividend level and growth at stock levels

SGAM 25% Part of SocGen and managed by Stephen Harker, a disciplined value manager with a value style, large-cap preference and long-term contrarian viewLow portfolio turnover at 50%pa, also indifferent to benchmark with a low level of stocks Fund does not hold cyclicals, commodities or small caps, but takes bold positions with top 10 names often accounting for a majority of the fund

Funnex 30% Domestic Japanese equity boutique established in 2000Manager employs a high-turnover strategy aimed at catching market trends and with attachment to low PER stocks. Core holdings are stable, but tactical positions could be traded over a weekRelatively unique value and momentum process looking at Holt-value to assess trends and the fair value of stocks. Stock selection is the main contributor to performance

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Manager 1

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Manager 4

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MultiAlpha: North America Equity Fund

Performance benchmark: MSCI US Equity


Indicative tracking error: 3.5%




Proposed capacity: No initial capacity constraint

Underlying managers & weighting: Winslow Capital – 20%LA Capital Management – 20%Rainier – 20%Aletheia – 20%Cohen & Steers – 20%

Lead Multimanager analyst: Randeep Brar

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Introduction – MultiAlpha North America

Strongly boutique-oriented productManagers with both ‘focused’ and “flexible” investment processesManager weights reflect contribution to the overall risk budget / alpha

LA Capital 20% LA based boutique, with $6bn aum.Quantitative driven processAdaptive and dynamic process based on factor rotation

Cohen & Steers 20% Dividend growth focused investment philosophy (relative value)Structured and differentiated research processImpressive lead portfolio manager, Rick Helm

Rainier 20% Seattle-based boutique manager, with $16bn aumHighly seasoned and stable investment teamDifferentiated sell discipline and executionBottom up, fundamental approach (growth)

Aletheia 20% Focused team lead by highly skilled PM, Peter EichlerBehavioural value orientationDifferentiated thematic, bottom-up, investment approach Focuses on insider activity, corporate buybacks, forensic accounting etc.

Winslow 20% Minneapolis based boutique, with $3bn aum.Differentiated research processUnique portfolio construction and sell discipline

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MultiAlpha: North America Equity

LA Capital 20% An independent, LA-based investment boutique that is 100% owned by employees Good at attracting and retaining staff with minimal turnoverQuantitative-driven process based on historical analysis and identifying risk factorsThe process is both dynamic and adaptive based on factor rotation

Cohen & Steers

20% Owned by larger Cohen & Steers companyPortfolio manager Rick Helm is the engine behind the process and decision makingHe has a strong team of 4 analysts with industry specialisations working with himResearch based on the belief that “dividend growers” outperform over the longer term – an increase in dividends being a management signal of strong future fundamentalsFocusing on dividend growth rather than yield differentiates the strategy from other dividend-focused peers

Rainier 20% Seattle-based boutique manager which is 100% employee-owned and this team are well aligned to the fundsThe strategy has been run since 1987 by current co-PM Jim Margard and his investment team is seasoned with a proven track record of stock-pickingThe team adopts a bottom-up, fundamental approach (growth) to investingValuation and target price sell and execution discipline has some differentiating elements which act as a risk control tool at the individual stock level

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MultiAlpha: North America Equity (Cont’d)

Aletheia 20% Independently-owned boutique that is 85% owned by current employeesFocused and strong team lead by highly skilled PM, Peter Eichler who is a co-founderThe strategy has an Absolute Return focus, which will have a low adherence to benchmarkHighly-differentiated thematic, bottom-up investment approach, focusing on unconventional information This information includes insider activity (key employees buying or selling company stock), corporate buybacks, forensic accounting, etc.

Winslow 20% A 100% employee-owned investment boutique with Large Cap Growth being its sole offeringThe investment team, led by 3 co-PMs have a stake (30% each) in the firm and the rest of the team have strong incentives with regards to performanceResearch process sees an initial quant screen resulting in a more focused universe for thorough fundamental researchHighly skilled at selecting growth stocks that are quality but also offer attractive valueTheir unique portfolio construction (maximising best versus benchmark but also diversifying bets) and strong sell discipline (position and sector limits) offer other key advantages

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Manager 1

Manager 2

Manager 3

Manager 4

Manager 5




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Appendix II: Fund Performance Targets, Tracking Errors & Fees

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MultiAlpha Funds: Performance Targets, Tracking Errors & Fees

Global Equity Global Emerging Markets Equity North America Equity Europe Equity Japan Equity Asia Pacific ex Japan Equity

Performance benchmark

MSCI World Equity MSCI Emerging Markets Equity

MSCI US Equity MSCI Europe Equity TOPIX (TSE 1st Section)

MSCI Asia Pacific ex Japan Equity

Performance targets (bps per annum net over rolling 3-5 yrs)

200 260 160 160 160 300

Indicative tracking errors 4.00% 4.00% 3.50% 2.50% (estimate) 4.00% 5.00%

Investment vehicles HISF Luxembourg UCITS platform

Share classes (and fees)

AAMC 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%

TER 1.90% 2.00% 1.90% 1.90% 1.90% 2.00%

EAMC 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

TER 2.40% 2.50% 2.40% 2.40% 2.4.% 2.50%

IAMC 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%

TER 1.00% 1.15% 1.00% 1.00% 1.00% 1.15%

XAMC 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%

TER 0.95% 1.10% 0.95% 0.95% 0.95% 1.10%

ZAMC 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

TER 0.20% 0.35% 0.20% 0.20% 0.20% 0.35%

Proposed capacity with initial structure

US$2,250m US$1,500m No initial capacity constraint (i.e. over US$5,000m)

US$1,500m US$2,000m US$1,500m

Underlying managers and strategic weight

Taube Hodson Stonex Partners (40%) Longview Capital Management (30%) Spencer House (30%)

Gartmore (50%) Panagora (25%) Framlington (25%)

Winslow Capital (20%) LA Capital (20%) Rainier (20%) Aletheia (15%) Cohen & Steers (25%)

JOHambro Capital Management (50%) AQR (50%)

Funnex (30%) SGAM (25%) Lindsell Train (15%) TR Price (30%)

Resolution (40%) TT (35%) Tiburon (25%)

Lead Multimanager analyst

Ana da Maia Cara Macgregor Randeep Brar Pascale Huard Arts Masuda Michelle Hilliman

Multimanager contact

Alasdair Prescott, EMEA Investment Director


Rahul Khasgiwale, North America Investment Director


Christian Choi, Asia Pacific Investment Director

Christian Choi, Asia Pacific Investment Director

Client Service All significant unit holders (amount to be defined) receive four physical visits per year by regional Investment Director, Multimanager, with video conferences as required on ad-hoc basis plus quarterly reporting alongside monthly reports/factsheets. Acc

Appendix III: Fund Performance Statistics

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Simulated performance – Asia pacific ex JapanMultiAlpha Asia relative return and tracking error

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Note: Performance data shown is for a simulated portfolio. Performance streams incorporate proxy account data on the underlying managers which may in some instances differ from the precise mandate to be used within the MultiAlpha portfolio. As ever past performance should not be seen as an indication of future performance.

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Simulated performance – EuropeMultiAlpha Europe relative return and tracking error

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Simulated performance – Global Emerging MarketsMultiAlpha GEM relative return and tracking error

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Presenter�

Presentation Notes�

Risk management is fundamental at all aspects of the investment process We must also have effective oversight of decision-making Responsibility of Regional Investment Head Ensure analysts/PMs are following the right procedures Review the outcomes of the decision-making Responsibility of Global CIO Ensure the overall process is working and revise as necessary Independently review portfolios and ratings from time to time Supported by the Portfolio Advisory Group, ensuring the portfolios reflect the investment views Culture of Peer Review Regular meeting framework allows challenge and peer review: Weekly portfolio review meetings Monthly asset class call meetings Half-yearly asset class review meetings �

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5

6

Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08

Date

% R

etur

n

% return Cumulative return

Simulated performance – Global


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Simulated performance – Japan

MultiAlpha Japan relative return and tracking error

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

Jan-

00

May

-00

Sep-

00

Jan-

01

May

-01

Sep-

01

Jan-

02

May

-02

Sep-

02

Jan-

03

May

-03

Sep-

03

Jan-

04

May

-04

Sep-

04

Jan-

05

May

-05

Sep-

05

Jan-

06

May

-06

Sep-

06

Jan-

07

May

-07

Sep-

07

Jan-

08

May

-08

Date

% R

etur

n

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Trac

king

Err

or

% return

Cumulative return

rolling te (3yr)

rolling te (<3yr)


Presenter�


When investing in specific managers it is worth noting that if done on performance most don’t remain in the top quartile for long. The graph illustrates that out of top quartile funds in 2000 only 3% stayed and 56% moved to bottom quartile in 2000�

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Simulated performance – North America

MultiAlpha North America relative return and tracking error

-2.00

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Jan-

00

May

-00

Sep-

00

Jan-

01

May

-01

Sep-

01

Jan-

02

May

-02

Sep-

02

Jan-

03

May

-03

Sep-

03

Jan-

04

May

-04

Sep-

04

Jan-

05

May

-05

Sep-

05

Jan-

06

May

-06

Sep-

06

Jan-

07

May

-07

Sep-

07

Jan-

08

May

-08

Date

% R

etur

n

0.00

1.00

2.00

3.00

4.00

5.00

6.00

Trac

king

Err

or

% return

Cumulative return

rolling te (3yr)

rolling te (<3yr)


Presenter�


A deep, experienced resource - more than 40 professionals, average experience >10 years Organised in specialist asset class teams, empowered to make decisions Global coverage, located close to the managers and markets we follow approved >250 fund groups; reviewed >1500 strategies; recommended >500 strategies Dedicated to delivering performance by finding good managers and blending them effectively separate “due diligence” function to support focus on “alpha” separate “product specialist” function to allow focus on investment Rigorous oversight of Global CIO and Regional Investment Heads, supported by Portfolio Advisory Group Performance focused specialists, expert in their asset class�

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Important Information

The HSBC MultiAlpha funds are sub-funds of the HSBC International Select Fund, a Luxembourg domiciled SICAV. The Investment Adviser to the funds is HSBC Asset Management (France) who in turn appoints sub-advisers to manager portion of the fund's portfolio. As with any investment where the underlying investments are stocks and shares, the price of shares in HSBC International Select Fund and any income from it can go down as well as up, is not guaranteed, and you may not get back the amount of your original investment. Where overseas investments are held, the rate of 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 established markets. You should view this investment as medium to long term, and should plan to keep it for at least five years. Any decision to invest in the HSBC International Select Fund should be based on the content of the Prospectus, simplified prospectus and most recent annual and semi-annual reports, which can be obtained upon request free of charge from HSBC Global Asset Management (UK) Limited or the local distributors. Investors and potential investors should refer to the Prospectus for general risk factors and the Simplified Prospectus for specific risk factors.

This document is issued by HSBC Global Asset Management (UK) Limited, 8 Canada Square, Canary Wharf, London, E14 5HQ, UK. Authorised and regulated by the Financial Services Authority and registered as number 122335. © Copyright. HSBC Global Asset Management 2009. All Rights Reserved.

This product is marketed in a sub-distributing capacity on a principal – to – principal basis by the HSBC Global Asset Management MENA, a unit that is part of HSBC Bank Middle East Limited, PO Box 66, Dubai, UAE, which is incorporated and regulated by the Jersey Financial Services Commission. Services are subject to the Bank’s terms and conditions. HSBC Bank Middle East Limited is a member of the HSBC Group.

The information provided has not been prepared taking into account the particular investment objectives, financial situation and needs of any particular investor. As a result, investors using this information should assess whether it is appropriate in the light of their own individual circumstances before acting on it. The information in this document is derived from sources believed to be reliable, but which have not been independently verified. However, HSBC Bank Middle East Limited makes no guarantee of its accuracy and completeness and is not responsible for errors of transmission of factual or analytical data, nor shall HSBC Bank Middle East Limited be liable for damages arising out of any person’s reliance upon this information. All charts and graphs are from publicly available sources or proprietary data. The opinions in this document constitute the present judgment of the issuer, which is subject to change without notice.

This document is neither an offer to sell, purchase or subscribe for any investment nor a solicitation of such an offer. This document is intended for the use of institutional and professional customers and is not intended for the use of private customers. This document is not intended for distribution in the United States of America or to US persons. This document is intended to be distributed in its entirety. No consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient. Any transaction will be subject to HSBC Bank’s Terms of Business.

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Hsbc Isf Multi Alpha

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