HSBC Managed Solutions Q1 2016 – Asia Focused …Q1 2016 Access HSBC’s investment strategy...

3
1 Source: 1. Bloomberg. Data as at 31 December 2015. Asian equity = MSCI AC Asia Pacific Ex-Japan Index, Asian bond = HSBC Asian Dollar Bond Index, in USD, with dividends reinvested. Historical data is shown for illustrative purposes only and should not be relied on as indication for future performance. 2. Morningstar Fund Awards (Hong Kong) 2009, 2012, 2013 and 2015: Based on performance as at 31 December 2008, 2011, 2012 and 2014 respectively. Asia Asset Management Best of the Best Awards 2008, 2009, 2010, 2012, 2013 and 2015: Based on performance as at 30 November 2008, 2009, 2010, 2012, 2013 and 2015 respectively; Lipper Fund Awards 2010: Based on performance as at 31 December 2009; Benchmark Fund of the Year Award 2010 and 2012: Based on performance as at 31 December 2010 and 2012 respectively. “The Best Emerging Market Debt House” by Pension and Investment Provider Awards 2010: Based on performance as at 31 December 2010. Important information: • The Asia Focused Conservative Fund and Asia Focused Growth Fund invest mainly in Asian (including Asia Pacific and excluding Japan) based assets in both equity and fixed income markets. The Asia Focused Income Fund invests mainly in Asian (ex-Japan) based income oriented assets in both fixed income and equity markets. • The Asia Focused Growth Fund and Asia Focused Income Fund may also invest in other non-Asian based investments such as global bonds and REITs. The Asia Focused Conservative Fund may also invest in other non-Asian based investments such as global bonds. The Funds may get the exposure through direct investments and/or collective investment schemes. • The Funds are subject to the risk of investing in emerging markets. Non-investment grade and unrated fixed income securities are subject to higher credit risk, liquidity risk and counterparty risk than investment grade fixed income securities. • The Funds’ investments may involve substantial credit/counterparty, downgrading, market, currency, volatility, liquidity, regulatory and political risks. Investors may suffer substantial loss of their investments in the Funds. • For certain classes of the Asia Focused Income Fund, the Fund may pay dividends out of capital or pay dividends 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 or from any capital gains attributable to the original investment. Such distributions may result in an immediate decrease in the net asset value of the Fund. • Unit trusts are NOT equivalent to time deposits. Investors should not invest in the Funds solely based on the information provided in this document and should read the offering document of the Funds for details. This document does not constitute an offering document. Asia Focused Conservative Asia Focused Income Asia Focused Growth HSBC Managed Solutions – Asia Focused Series Q1 2016 Access HSBC’s investment strategy designed to meet your long-term wealth accumulation needs With market volatility a constant reality for investors, it’s easy to be confused on what and where to invest. The key to moving past this dilemma, is understanding where your risk appetite lies, so that you can decide where you want to go on your investment journey, and how you want to get there. We understand this need. With HSBC Managed Solutions, we partner with you on your wealth accumulation journey by providing solutions that best fit your risk/return profile, and are geared towards achieving long-term returns. Plan wisely for your long-term wealth 2 Forget market timing. Most investors end up buying high and selling low, as it’s almost impossible to predict which asset class will outperform over a certain period of time. Using the Asian assets as an example, the performance of Asian equities and bonds has alternated almost every year. Select a diversified, actively managed all-in-one investment vehicle 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Asian equity 33.7% 40.5% -52.2% 72.5% 19.9% -17.1% 22.7% 3.3% 5.1% -8.9% Asian bond 7.2% 5.5% -6.5% 25.4% 10.3% 5.5% 12.7% -2.4% 8.9% 2.1% Diversified 50/50 split 20.5% 23.0% -29.4% 49.0% 15.1% -5.8% 17.7% 0.5% 7.0% -3.4% (Average return, no market timing) Instead, let our investment professionals diversify your portfolio moving flexibly into those asset classes which are likely to perform well over the long term. With the multitude of opportunities available for growth and income, our experts can provide exposure to undervalued investment opportunities across asset classes, in a disciplined manner. 3 Exclusive to HSBC customers, the Managed Solutions series are dedicated investment solutions that tap our expertise in managing cost, risk and performance. We achieve this by leveraging our global reach and in-house capabilities, applying rigorous risk monitoring processes, and tapping our multiple award-winning investment expertise 2 . Let HSBC do all the work for you Morningstar Fund Awards 2009, 2012, 2013, 2015 – Asian Bond Asia Asset Management Best Asian Bond House 2008, 2009, 2010, 2012, 2013, 2015 Asian fixed income Benchmark Fund of the Year Award 2010 – Asia ex-Japan Equity Lipper Fund Awards 2010 – Asia Pacific Equity Small and Mid Caps Asian equities Benchmark Fund of the Year Award 2010 & 2012 – Emerging Market Bond P&I Provider Awards 2010 – The Best Emerging Market Debt House Global emerging markets bond Diversification = potential return – market timing 1

Transcript of HSBC Managed Solutions Q1 2016 – Asia Focused …Q1 2016 Access HSBC’s investment strategy...

Page 1: HSBC Managed Solutions Q1 2016 – Asia Focused …Q1 2016 Access HSBC’s investment strategy designed to meet your long-term wealth accumulation needs With market volatility a constant

1

Source: 1. Bloomberg. Data as at 31 December 2015. Asian equity = MSCI AC Asia Pacific Ex-Japan Index, Asian bond = HSBC Asian Dollar Bond Index, in USD, with dividends reinvested. Historical data is shown for illustrative purposes only and should not be relied on as indication for future performance. 2. Morningstar Fund Awards (Hong Kong) 2009, 2012, 2013 and 2015: Based on performance as at 31 December 2008, 2011, 2012 and 2014 respectively. Asia Asset Management Best of the Best Awards 2008, 2009, 2010, 2012, 2013 and 2015: Based on performance as at 30 November 2008, 2009, 2010, 2012, 2013 and 2015 respectively; Lipper Fund Awards 2010: Based on performance as at 31 December 2009; Benchmark Fund of the Year Award 2010 and 2012: Based on performance as at 31 December 2010 and 2012 respectively. “The Best Emerging Market Debt House” by Pension and Investment Provider Awards 2010: Based on performance as at 31 December 2010.

Important information: • The Asia Focused Conservative Fund and Asia Focused Growth Fund invest mainly in Asian (including Asia Pacific and excluding Japan) based assets

in both equity and fixed income markets. The Asia Focused Income Fund invests mainly in Asian (ex-Japan) based income oriented assets in both fixed income and equity markets.

• The Asia Focused Growth Fund and Asia Focused Income Fund may also invest in other non-Asian based investments such as global bonds and REITs. The Asia Focused Conservative Fund may also invest in other non-Asian based investments such as global bonds. The Funds may get the exposure through direct investments and/or collective investment schemes.

• The Funds are subject to the risk of investing in emerging markets. Non-investment grade and unrated fixed income securities are subject to higher credit risk, liquidity risk and counterparty risk than investment grade fixed income securities.

• The Funds’ investments may involve substantial credit/counterparty, downgrading, market, currency, volatility, liquidity, regulatory and political risks. Investors may suffer substantial loss of their investments in the Funds.

• For certain classes of the Asia Focused Income Fund, the Fund may pay dividends out of capital or pay dividends 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 or from any capital gains attributable to the original investment. Such distributions may result in an immediate decrease in the net asset value of the Fund.

• Unit trusts are NOT equivalent to time deposits. Investors should not invest in the Funds solely based on the information provided in this document and should read the offering document of the Funds for details. This document does not constitute an offering document.

Asia Focused ConservativeAsia Focused IncomeAsia Focused Growth

HSBC Managed Solutions – Asia Focused Series

Q1 2016

Access HSBC’s investment strategy designed to meet your long-term wealth accumulation needs

With market volatility a constant reality for investors, it’s easy to be confused on what and where to invest. The key to moving past this dilemma, is understanding where your risk appetite lies, so that you can decide where you want to go on your investment journey, and how you want to get there.

We understand this need. With HSBC Managed Solutions, we partner with you on your wealth accumulation journey by providing solutions that best fit your risk/return profile, and are geared towards achieving long-term returns.

Plan wisely for your long-term wealth

2

Forget market timing. Most investors end up buying high and selling low, as it’s almost impossible to predict which asset class will outperform over a certain period of time. Using the Asian assets as an example, the performance of Asian equities and bonds has alternated almost every year.

Select a diversified, actively managed all-in-one investment vehicle

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Asian equity 33.7% 40.5% -52.2% 72.5% 19.9% -17.1% 22.7% 3.3% 5.1% -8.9%Asian bond 7.2% 5.5% -6.5% 25.4% 10.3% 5.5% 12.7% -2.4% 8.9% 2.1%Diversified 50/50 split 20.5% 23.0% -29.4% 49.0% 15.1% -5.8% 17.7% 0.5% 7.0% -3.4%(Average return, no market timing)

Instead, let our investment professionals diversify your portfolio moving flexibly into those asset classes which are likely to perform well over the long term. With the multitude of opportunities available for growth and income, our experts can provide exposure to undervalued investment opportunities across asset classes, in a disciplined manner.

3

Exclusive to HSBC customers, the Managed Solutions series are dedicated investment solutions that tap our expertise in managing cost, risk and performance. We achieve this by leveraging our global reach and in-house capabilities, applying rigorous risk monitoring processes, and tapping our multiple award-winning investment expertise2.

Let HSBC do all the work for you

– Morningstar Fund Awards 2009, 2012, 2013, 2015 – Asian Bond

– Asia Asset Management Best Asian Bond House 2008, 2009, 2010, 2012, 2013, 2015

Asian fixed income

– Benchmark Fund of the Year Award 2010 – Asia ex-Japan Equity

– Lipper Fund Awards 2010 – Asia Pacific Equity Small and Mid Caps

Asian equities

– Benchmark Fund of the Year Award 2010 & 2012 – Emerging Market Bond

– P&I Provider Awards 2010 –The Best Emerging Market Debt House

Global emerging markets bond

Diversification = potential return – market timing1

Page 2: HSBC Managed Solutions Q1 2016 – Asia Focused …Q1 2016 Access HSBC’s investment strategy designed to meet your long-term wealth accumulation needs With market volatility a constant

HSBC GIF = HSBC Global Investment Funds.Source: 1. HSBC Global Asset Management, data as at 31 December 2015. Bid to bid prices with dividend reinvested, in US Dollar. 2. HSBC Global Asset Management, data as at 31 December 2015. Dividend is not guaranteed and will result in reduction in net asset value. A positive distribution yield does not imply a positive return. The calculation method of annualized yield: (dividend value/bid price as of ex-dividend date) x 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.

HSBC GIF Managed Solutions – Asia Focused SeriesThe HSBC GIF Managed Solutions – Asia Focused series target long-term growth, through active, flexible asset allocation, in a diversified portfolio of equity and fixed income securities, of which minimum 70% will be invested in Asia ex-Japan region. These portfolios are not constrained by static allocations, and can significantly change their composition should attractive investment opportunities arise.

Risk level

Potential return (%)

Asia Focused

GROWTHAsia Focused

INCOME

Asia Focused

CONSERVATIVE

Target customers

Class AC, ACHKD, ACHAUD and ACHEUR

Conservative Moderate tolerance of risk

Class AC, ACHKD,ACHAUD and ACHEUR

Balanced to aggressive Higher tolerance of risk

Class AM, AMHKD,AMHAUD and AMHEUR

Conservative to balanced Moderate tolerance of risk

HSBC GIF Managed Solutions - Asia Focused Conservative

Asset allocation1

Key reasons for exposure to Asian assets: Home bias – higher comfort level for local investors and clearer understanding of risk and return

Strong growth drivers – pro-active government policy, rising corporate profits, low default and interest rates, rising GDP growth to support performance of Asian assets

Ample investment opportunities – historically low Asian equity valuations and robust fundamentals for Asian bonds indicate potential to unlock long-term value

With HSBC GIF Managed Solutions – Asia Focused Series, investors can choose a vehicle that captures the investment opportunities in the world’s fastest growing region, which is customised to their risk tolerance level.

Cumulative performance in USD (%)

3 mths 6 mths 1 yr Since launch

Fund (Class AC) 1.1 -2.7 -1.0 1.6

Calendar year performance in USD (%)

Since launch to 31/12/2013 2014 2015 YTD

Fund (Class AC) -2.0 4.7 -1.0 -1.0

Performance1

Singapore government bond 17.2%

Asian investment grade bond 35.8%

Cash 9.7%

Global equity11.1%

Asian ex Japan equity 9.2%

Asian high yield bond 9.4%

Global emerging marketlocal debt 7.7%

Characteristics Suitable for investors who participate in the Asia growth

opportunities with relatively low volatility. Moderate tolerance of risk

HSBC GIF Managed Solutions - Asia Focused Income

Performance1

Characteristics Suitable for investors who primarily seek income and potential

growth, mostly from Asian assets. Moderate tolerance of risk

Asset allocation1

Asian investment grade bond38.2%

Asian high dividend equity22.9%

Asian high yield bond17.4%

Cumulative performance in USD (%)

3 mths 6 mths 1 yr Since launch

Fund (Class AM) 2.0 -4.8 -3.6 11.0

Calendar year performance in USD (%)

Since launch to 31/12/2012 2013 2014 2015 YTD

Fund (Class AM) 12.6 -2.6 5.0 -3.6 -3.6

Global equity 10.4%

GEM local debt 8.2%

Cash, US/HK/SG government bonds 2.8%

Fund dividend record over the past year (Class AM)2

Month Ex-dividend Date

NAV as of ex-dividend date

Annualisedyield

Jan-15Feb-15Mar-15Apr-15May-15Jun-15Jul-15Aug-15Sep-15Oct-15Nov-15Dec-15

30-Jan-1527-Feb-1527-Mar-1524-Apr-1529-May-1526-Jun-1531-Jul-1528-Aug-1525-Sep-1530-Oct-1527-Nov-1524-Dec-15

Dividend Amount

USD 0.0364USD 0.0345USD 0.0343USD 0.0328USD 0.0323USD 0.0339USD 0.0335USD 0.0386USD 0.0352USD 0.0381USD 0.0353USD 0.0347

USD 10.460USD 10.528USD 10.467USD 10.594USD 10.475USD 10.347USD 10.204USD 9.752USD 9.536USD 9.853USD 9.731USD 9.629

4.18%3.94%3.93%3.71%3.70%3.94%3.94%4.74%4.43%4.64%4.35%4.32%

Page 3: HSBC Managed Solutions Q1 2016 – Asia Focused …Q1 2016 Access HSBC’s investment strategy designed to meet your long-term wealth accumulation needs With market volatility a constant

Asset allocation1Characteristics Suitable for investors who seek equity like returns and high growth

opportunities, whilst preferring to remain diversified across asset classes. Higher tolerance of risk

Global equity9.2%

Global emerging market local debt8.7%

Asian high yield bond9.3%

Asian equity 64.0%

Cash, US/HK/SG government bonds 8.7%

HSBC GIF Managed Solutions - Asia Focused Growth

Cumulative performance in USD (%)

3 mths 6 mths 1 yr Since launch

Fund (Class AC) 4.1 -10.8 -10.8 -11.2

Calendar year performance in USD (%)

Since launch to 31/12/2013 2014 2015 YTD

Fund (Class AC) -2.2 1.8 -10.8 -10.8

Performance1

Suitable investors:The Funds may be suitable for investors whom:

have a clear understanding of the risk profiles from conservative to aggressive and wish to choose corresponding diversified investment solutions

are comfortable investing across asset classes and primarily on Asian assets

look for investment expertise in flexible asset allocation that aims to maximise risk adjusted returns over the long term

desire varying degrees of stable to moderate capital growth with potential income, depending on their risk profile and appetite

Potential risks:

Bond investments may involve interest rate, credit, liquidity, default, derivative risks and any combination of these and other risks

Equity investments may be affected by global economic environment and fluctuating economic data, as well as government policy and macro risks

Exposure to emerging markets involves a greater risk of loss than exposure to more developed markets due to greater political, economic and regulatory risks

The Funds may be affected by changes in exchange rates between base currency and other currencies or exchange control regulations

Changes in interest rate and government policies could also be additional macro risks

Fund details2

HSBC GIF Asia Focused Conservative Asia Focused Income Asia Focused Growth Managed Solutions

Fund size USD29.24 million USD255.42 million USD11.17 million

Launch date 15 March 2013 AM / AMHKD: 25 May 2012 15 March 2013

AMHEUR: 8 February 2013

AMHAUD: 4 March 2013

Class of shares AC / ACHKD / ACHAUD / ACHEUR AM / AMHKD / AMHAUD / AMHEUR AC / ACHKD / ACHAUD / ACHEUR

Currency USD / HKD / AUD / EUR

Minimum investment USD1,000 / HKD10,000 / AUD1,500 / EUR 850

Dividend policy* n/a Monthly, if any n/a

Management fee (per annum) 0.70% 1.25% 1.50%

Switching charge 1%

Fund manager Denis Gould

HSBC GIF = HSBC Global Investment Funds.Source: 1. HSBC Global Asset Management, data as at 31 December 2015. Bid to bid prices with dividend reinvested, in US Dollar. 2. HSBC Global Asset Management, data as at 31 December 2015.

* Dividend is not guaranteed and will result in reduction in net asset value. A positive yield does not represent a positive return.

Investment involves risk. Past performance is not indicative of future performance. 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.

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