Important Information The Fund invests mainly in China related equities, fixed income instruments and other related investments. The Fund is subject to the concentration and emerging market risks of investing primarily in a single emerging market. RMB is not freely convertible and is subject to exchange control. There is no guarantee that RMB will not depreciate. The Fund may invest in securities that are denominated and/or settled in other currencies (other than RMB and HKD). Movement in the relevant exchange rates may adversely affect the Fund s performance. The Fund is subject to liquidity risk as there may not have active secondary market for its investment, including but not limited to RMB bonds. Investments of the Fund may include investment grade, non-investment grade and unrated bonds. Generally, non-investment grade and unrated bonds may subject to higher risk. The Fund may invest in China A-shares and B-shares and may make the relevant investment through Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and China A-shares Access Products which may involve additional risks. The Fund is subject to the credit risk of the issuers of the China A-shares Access Products held by the Fund. When the issuer of an investment defaults, the Fund may suffer a loss amounting to the value of such investment. The Fund may have up to 30% of its assets invested in China A-shares Access Products. There are risks and uncertainties associated with China s tax rules and practices. In relation to the Fund s investment in China A-shares and China A-shares Access Products, the Fund will not withhold (or will not request the issuer of the relevant investments to withhold) any amount of realised or unrealised capital gains on such investments as tax provision. The Fund may further modify its tax provision policy based on new developments and interpretation of the relevant regulations. The Fund may invest in other collective investment schemes, including but not limited to RQFII (RMB Qualified Foreign Institutional Investors) funds, RQFII funds are subject to risks inherent in onshore Chinese securities markets and are subject to the relevant laws and regulations in China. For certain classes of the 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. The Fund s 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 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. This document does not constitute an offering document. HSBC Collective Investment Trust HSBC China Multi-Asset Income Fund May 2017 Fund objective and strategy The Fund aims to provide income and moderate capital growth, through an active asset allocation in a diversified portfolio of a minimum of 70% of its Net Asset Value in fixed income and equity securities as well as money market and cash instruments that are related to China. For equity portion of the Fund, the Fund seeks to invest in China A-Shares and B-Shares listed on stock exchanges in the PRC, H-Shares listed on The Hong Kong Stock Exchange and other China-related shares or securities listed on the above exchanges as well as on other exchanges outside of the PRC, Hong Kong and Macau. For other China-related listed securities, the Fund will invest in securities of companies which carry out or possess a preponderant part of their business activities in or are related to China. The Fund will also invest in offshore PRC fixed income securities (including but not limited to bonds and notes) as well as money market instruments. The Fund currently may invest in instruments denominated and/ or settled in RMB or other currencies including but not limited to USD/HKD, such as fixed income or debt instruments issued or guaranteed by the government or government agencies of the PRC and companies which have their registered office in the PRC or which carry out a preponderant part of their business activities in the PRC, and RMB denominated and/or settled fixed income or debt instruments issued or guaranteed by other governments, government agencies and companies. The Fund may invest up to 10% of its net assets in contingent convertible securities; however such investment is not expected to exceed 5%. Product features The Fund aims to capture the full spectrum of opportunities in China and has the flexibility to invest in equity and fixed income markets The Fund mainly invests in offshore Chinese equities and fixed income, as well as China A-shares through China A-shares Access Products (CAAPs) and Shanghai-Hong Kong Stock Connect The relevant classes of the Fund provide monthly dividend for a potential income stream amid the current low interest rate environment Price Indexed Performance (%) YTD 3 mths 6 mths 1 yr 3 yrs 5 yrs Since Inception Fund (Class AM2-HKD) 1 8.4 3.5 3.4 11.0 15.2 Reference Performance Benchmark 2 9.0 4.5 4.1 9.8 6.1 140 120 100 80 60-40 Nov 15 Feb Apr Jun Aug Oct 16 Feb Apr Jun Aug Oct 17 Feb Apr Fund (Class AM-HKD) 1 Reference Performance Benchmark 2 Source: Morningstar, Inc. as at 30 April 2017. Bid to Bid price with dividend reinvested, in HKD. 40 20 0-20 Percent Change Calendar year performance (%) Fund Reference (Class Performance AM2-HKD) 1 Benchmark 2 Since launch to 31/12/14 5.3 1.9 2015-0.6-4.5 2016 1.5 0.1 1. The performance and dividend yield of a Class may be affected by many factors such as, where applicable, exchange rate fluctuation, currency hedging costs and interest rate differentiation between different currencies. Therefore, different Classes may have different performance and dividend yield, and the performance and dividend yield of a Class cannot be used to represent the performance and dividend yield of another Class. 2. Reference Performance Benchmark: 50% MSCI China Net, 50% Markit iboxx Asia Local Bond Index China Offshore. 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. www.assetmanagement.hsbc.com/hk Issued by HSBC Global Asset Management (Hong Kong) Limited Fund details Launch date Class AM2-USD / 21 November 2014 AM2-HKD / AM2-RMB Fund size HKD2,995.01 million Base currency HKD Bid price Class AM2-USD USD10.531 Class AM2-HKD HKD10.565 Class AM2-RMB RMB11.868 Fund manager Denis Gould Investment adviser HSBC Global Asset Management (Hong Kong) Limited Minimum investment USD1,000 / HKD10,000 /RMB10,000 Initial charge 5.25% Management fee 1.35% per annum Switching charge 1% Dealing ISIN code Class AM2-USD Class AM2-HKD Class AM2-RMB Bloomberg ticker Class AM2-USD Class AM2-HKD Class AM2-RMB Financial Y/E Daily HK0000216926 HK0000216942 HK0000216934 HSAMUSD HSAMHKD HSAMRMB 31 March Dividend policy Monthly, if any * * Dividend is not guaranteed and will result in reduction in net asset value. A positive distribution yield does not imply a positive return. Please refer to the offering document for details of other fees. Source: HSBC Investment Funds (Hong Kong) Limited as at 30 April 2017.
Portfolio composition Asset allocation % Equity (Offshore) 51.2 Bond (RMB) 45.9 Bond (USD) 2.8 Equity (Onshore) 0.4 Cash & equivalents -0.3 Percentage may not total 100 due to rounding. Portfolio characteristics Annualised volatility (3-year) Sharpe ratio (3-year) HSBC fund code Class AM2-USD u62650 Class AM2-HKD u62649 Class AM2-RMB u62651 Top 10 holdings % Tencent Holdings Software & computer services 10.0 Alibaba Group Holding ADR General retailers 6.0 China Construction Bank Banks 2.9 China Mobile Telecommunications 2.5 Industrial and Commercial Bank of China Banks 2.0 China Life Insurance Insurance 1.6 Bank of China Banks 1.6 Xinyi Glass Holdings Automobiles & parts 1.6 Maikun Investment Co Ltd 4.5% 06/06/17 Consumer goods 1.5 Jingneng Clean Energy 4.3% 23/12/17 Energy 1.5 Dividend history of Class AM2-HKD (Dividend is not guaranteed and may be paid out of capital) # Month Dividend amount Bid price as of Annualised yield ex-dividend date May - 16 HKD0.0286 HKD9.825 3.49% Jun - 16 HKD0.0276 HKD9.898 3.35% Jul - 16 HKD0.0272 HKD10.135 3.22% Aug - 16 HKD0.0267 HKD10.512 3.05% Sep - 16 HKD0.0280 HKD10.644 3.16% Oct - 16 HKD0.0298 HKD10.410 3.44% Nov - 16 HKD0.0286 HKD10.161 3.38% Dec - 16 HKD0.0295 HKD9.869 3.59% Jan - 17 HKD0.0349 HKD10.303 4.06% Feb - 17 HKD0.0357 HKD10.377 4.13% Mar - 17 HKD0.0329 HKD10.454 3.78% Apr - 17 HKD0.0310 HKD10.565 3.52% # 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 annualised 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. Dividend may be paid out of capital and will result in capital erosion. The performance and dividend yield of a Class may be affected by many factors such as, where applicable, exchange rate fluctuation, currency hedging costs and interest rate differentiation between different currencies. Therefore, different Classes may have different performance and dividend yield, and the performance and dividend yield of a Class cannot be used to represent the performance and dividend yield of another Class. 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) Neither Markit, its Affiliates or any third party data provider makes any warranty, express or implied, as to the accuracy, completeness or timeliness of the data contained herewith nor as to the results to be obtained by recipients of the data. Neither Markit, its Affiliates nor any data provider shall in any way be liable to any recipient of the data for any inaccuracies, errors or omissions in the Markit data, regardless of cause, or for any damages (whether direct or indirect) resulting therefrom. Markit has no obligation to update, modify or amend the data or to otherwise notify a recipient thereof in the event that any matter stated herein changes or subsequently becomes inaccurate. Without limiting the foregoing, Markit, its Affiliates, or any third party data provider shall have no liability whatsoever to you, whether in contract (including under an indemnity), in tort (including negligence), under a warranty, under statute or otherwise, in respect of any loss or damage suffered by you as a result of or in connection with any opinions, recommendations, forecasts, judgments, or any other conclusions, or any course of action determined, by you or any third party, whether or not based on the content, information or materials contained herein. Copyright 2016, Markit Indices Limited. 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. www.assetmanagement.hsbc.com/hk Issued by HSBC Global Asset Management (Hong Kong) Limited
Important information: The Fund invests mainly in China related equities, fixed income instruments and other related investments. The Fund is subject to the concentration and emerging market risks of investing primarily in a single emerging market. RMB is not freely convertible and is subject to exchange control. There is no guarantee that RMB will not depreciate. The Fund may invest in securities that are denominated and/or settled in other currencies (other than RMB and HKD). Movement in the relevant exchange rates may adversely affect the Fund s performance. The Fund is subject to liquidity risk as there may not have active secondary market for its investment, including but not limited to RMB bonds. Investments of the Fund may include investment grade, non-investment grade and unrated bonds. Generally, non-investment grade and unrated bonds may subject to higher risk. The Fund may invest in China A-shares and B-shares and may make the relevant investment through Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and China A-shares Access Products which may involve additional risks. The Fund is subject to the credit risk of the issuers of the China A-shares Access Products held by the Fund. When the issuer of an investment defaults, the Fund may suffer a loss amounting to the value of such investment. The Fund may have up to 30% of its assets invested in China A-shares Access Products. There are risks and uncertainties associated with China s tax rules and practices. In relation to the Fund s investment in China A-shares and China A-shares Access Products, the Fund will not withhold (or will not request the issuer of the relevant investments to withhold) any amount of realised or unrealised capital gains on such investments as tax provision. The Fund may further modify its tax provision policy based on new developments and interpretation of the relevant regulations. The Fund may invest in other collective investment schemes, including but not limited to RQFII (RMB Qualified Foreign Institutional Investors) funds, RQFII funds are subject to risks inherent in onshore Chinese securities markets and are subject to the relevant laws and regulations in China. For certain classes of the 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. The Fund s 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 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. This document does not constitute an offering document. HSBC China Multi-Asset Income Fund Dividend history (Dividend is not guaranteed and may be paid out of capital) # Class AM-USD (ISIN Code: HK0000216926) Month Ex-dividend Date Dividend Amount Bid price as of ex-dividend date Annualised Yield Class AM-HKD (ISIN Code: HK0000216942) Month Ex-dividend Date Dividend Amount Bid price as of ex-dividend date Annualised Yield Apr-17 28-Apr-17 USD 0.0309 USD 10.531 3.52% Apr-17 28-Apr-17 HKD 0.0310 HKD 10.565 3.52% Mar-17 31-Mar-17 USD 0.0329 USD 10.433 3.78% Mar-17 31-Mar-17 HKD 0.0329 HKD 10.454 3.78% Feb-17 28-Feb-17 USD 0.0357 USD 10.369 4.13% Feb-17 28-Feb-17 HKD 0.0357 HKD 10.377 4.13% Jan-17 26-Jan-17 USD 0.0349 USD 10.301 4.07% Jan-17 26-Jan-17 HKD 0.0349 HKD 10.303 4.06% Dec-16 30-Dec-16 USD 0.0295 USD 9.870 3.59% Dec-16 30-Dec-16 HKD 0.0295 HKD 9.869 3.59% Nov-16 30-Nov-16 USD 0.0286 USD 10.162 3.38% Nov-16 30-Nov-16 HKD 0.0286 HKD 10.161 3.38% Oct-16 31-Oct-16 USD 0.0298 USD 10.411 3.43% Oct-16 31-Oct-16 HKD 0.0298 HKD 10.410 3.44% Sep-16 30-Sep-16 USD 0.0280 USD 10.644 3.16% Sep-16 30-Sep-16 HKD 0.0280 HKD 10.644 3.16% Aug-16 31-Aug-16 USD 0.0267 USD 10.510 3.05% Aug-16 31-Aug-16 HKD 0.0267 HKD 10.512 3.05% Jul-16 29-Jul-16 USD 0.0272 USD 10.135 3.22% Jul-16 29-Jul-16 HKD 0.0272 HKD 10.135 3.22% Jun-16 30-Jun-16 USD 0.0276 USD 9.898 3.35% Jun-16 30-Jun-16 HKD 0.0276 HKD 9.901 3.35% May-16 31-May-16 USD 0.0286 USD 9.809 3.50% May-16 31-May-16 HKD 0.0286 HKD 9.825 3.49% Apr-16 29-Apr-16 USD 0.0290 USD 9.849 3.53% Apr-16 29-Apr-16 HKD 0.0290 HKD 9.854 3.53% Mar-16 31-Mar-16 USD 0.0356 USD 9.819 4.35% Mar-16 31-Mar-16 HKD 0.0356 HKD 9.819 4.35% Feb-16 29-Feb-16 USD 0.0305 USD 9.216 3.97% Feb-16 29-Feb-16 HKD 0.0305 HKD 9.242 3.96% Jan-16 29-Jan-16 USD 0.0283 USD 9.291 3.66% Jan-16 29-Jan-16 HKD 0.0284 HKD 9.336 3.65% Dec-15 31-Dec-15 USD 0.0310 USD 10.076 3.69% Dec-15 31-Dec-15 HKD 0.0310 HKD 10.071 3.69% Nov-15 30-Nov-15 USD 0.0314 USD 10.198 3.69% Nov-15 30-Nov-15 HKD 0.0314 HKD 10.192 3.70% Oct-15 30-Oct-15 USD 0.0341 USD 10.403 3.93% Oct-15 30-Oct-15 HKD 0.0341 HKD 10.397 3.94% Sep-15 30-Sep-15 USD 0.0300 USD 9.868 3.65% Sep-15 30-Sep-15 HKD 0.0300 HKD 9.862 3.65% Aug-15 31-Aug-15 USD 0.0284 USD 9.843 3.46% Aug-15 31-Aug-15 HKD 0.0284 HKD 9.838 3.46% Jul-15 31-Jul-15 USD 0.0311 USD 10.809 3.45% Jul-15 31-Jul-15 HKD 0.0311 HKD 10.806 3.45% Jun-15 30-Jun-15 USD 0.0305 USD 11.553 3.17% Jun-15 30-Jun-15 HKD 0.0305 HKD 11.551 3.17% May-15 29-May-15 USD 0.0316 USD 11.857 3.20% May-15 29-May-15 HKD 0.0316 HKD 11.856 3.20% # Dividend amount is rounded up to four decimal places. 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 annualised 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. Dividend may be paid out of capital and will result in capital erosion. The performance and dividend yield of a Class may be affected by many factors such as, where applicable, exchange rate fluctuation, currency hedging costs and interest rate differentiation between different currencies. Therefore, different Classes may have different performance and dividend yield, and the performance and dividend yield of a Class cannot be used to represent the performance and dividend yield of another Class. Investment involves risks. 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. Issued by HSBC Global Asset Management (Hong Kong) Limited
Important information: The Fund invests mainly in China related equities, fixed income instruments and other related investments. The Fund is subject to the concentration and emerging market risks of investing primarily in a single emerging market. RMB is not freely convertible and is subject to exchange control. There is no guarantee that RMB will not depreciate. The Fund may invest in securities that are denominated and/or settled in other currencies (other than RMB and HKD). Movement in the relevant exchange rates may adversely affect the Fund s performance. The Fund is subject to liquidity risk as there may not have active secondary market for its investment, including but not limited to RMB bonds. Investments of the Fund may include investment grade, non-investment grade and unrated bonds. Generally, non-investment grade and unrated bonds may subject to higher risk. The Fund may invest in China A-shares and B-shares and may make the relevant investment through Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and China A-shares Access Products which may involve additional risks. The Fund is subject to the credit risk of the issuers of the China A-shares Access Products held by the Fund. When the issuer of an investment defaults, the Fund may suffer a loss amounting to the value of such investment. The Fund may have up to 30% of its assets invested in China A-shares Access Products. There are risks and uncertainties associated with China s tax rules and practices. In relation to the Fund s investment in China A-shares and China A-shares Access Products, the Fund will not withhold (or will not request the issuer of the relevant investments to withhold) any amount of realised or unrealised capital gains on such investments as tax provision. The Fund may further modify its tax provision policy based on new developments and interpretation of the relevant regulations. The Fund may invest in other collective investment schemes, including but not limited to RQFII (RMB Qualified Foreign Institutional Investors) funds, RQFII funds are subject to risks inherent in onshore Chinese securities markets and are subject to the relevant laws and regulations in China. For certain classes of the 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. The Fund s 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 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. This document does not constitute an offering document. HSBC China Multi-Asset Income Fund Dividend history (Dividend is not guaranteed and may be paid out of capital) # Class AM-RMB (ISIN Code: HK0000216934) Month Ex-dividend Date Dividend Amount Bid price as of ex-dividend date Annualised Yield Apr-17 28-Apr-17 RMB 0.0347 RMB 11.868 3.51% Mar-17 31-Mar-17 RMB 0.0370 RMB 11.732 3.78% Feb-17 28-Feb-17 RMB 0.0399 RMB 11.617 4.12% Jan-17 26-Jan-17 RMB 0.0392 RMB 11.464 4.10% Dec-16 30-Dec-16 RMB 0.0334 RMB 11.217 3.57% Nov-16 30-Nov-16 RMB 0.0320 RMB 11.461 3.35% Oct-16 31-Oct-16 RMB 0.0328 RMB 11.532 3.41% Sep-16 30-Sep-16 RMB 0.0306 RMB 11.601 3.17% Aug-16 31-Aug-16 RMB 0.0290 RMB 11.489 3.03% Jul-16 29-Jul-16 RMB 0.0297 RMB 11.018 3.23% Jun-16 30-Jun-16 RMB 0.0298 RMB 10.753 3.33% May-16 31-May-16 RMB 0.0306 RMB 10.552 3.48% Apr-16 29-Apr-16 RMB 0.0308 RMB 10.419 3.55% Mar-16 31-Mar-16 RMB 0.0378 RMB 10.388 4.37% Feb-16 29-Feb-16 RMB 0.0325 RMB 9.861 3.95% Jan-16 29-Jan-16 RMB 0.0305 RMB 10.040 3.65% Dec-15 31-Dec-15 RMB 0.0333 RMB 10.810 3.70% Nov-15 30-Nov-15 RMB 0.0330 RMB 10.751 3.68% Oct-15 30-Oct-15 RMB 0.0355 RMB 10.780 3.95% Sep-15 30-Sep-15 RMB 0.0312 RMB 10.219 3.66% Aug-15 31-Aug-15 RMB 0.0300 RMB 10.372 3.47% Jul-15 31-Jul-15 RMB 0.0316 RMB 10.981 3.45% Jun-15 30-Jun-15 RMB 0.0309 RMB 11.712 3.17% May-15 29-May-15 RMB 0.0320 RMB 12.010 3.20% # Dividend amount is rounded up to four decimal places. 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 annualised 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. Dividend may be paid out of capital and will result in capital erosion. The performance and dividend yield of a Class may be affected by many factors such as, where applicable, exchange rate fluctuation, currency hedging costs and interest rate differentiation between different currencies. Therefore, different Classes may have different performance and dividend yield, and the performance and dividend yield of a Class cannot be used to represent the performance and dividend yield of another Class. Investment involves risks. 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. Issued by HSBC Global Asset Management (Hong Kong) Limited
PRODUCT KEY FACTS HSBC Collective Investment Trust - HSBC China Multi-Asset Income Fund April 2017 2017 This statement provides you with key information about the HSBC China Multi-Asset Income Fund This statement is part of the offering document You should not invest in this product based on this statement alone Quick facts Fund manager HSBC Investment Funds (Hong Kong) Limited / Investment adviser HSBC Global Asset Management (Hong Kong) Limited (Internal delegation) / Trustee Ongoing charges over a year ## ## Dealing frequency Base currency Dividend policy Financial year end Minimum investment HSBC Institutional Trust Services (Asia) Limited / Class AM RMB / AM RMB 1.53% Class AM USD / AM USD 1.54% Class AM HKD / AM HKD 1.54% Daily on every dealing day, i.e. each business day on which banks in Hong Kong and regulated markets in countries where the Sub-Fund is materially invested are normally open for business / HKD / Class AM-RMB, Class AM-USD, Class AM-HKD: The Manager aims to declare dividends monthly on a discretionary basis, and if declared, dividends will be paid monthly. Dividends may be paid out of the capital or effectively out of capital ### of the relevant Class. Payment of dividends out of capital or effectively out of capital may result in an immediate reduction of the Net Asset Value of the relevant Class. / AM AM AM ### 31 March / 3 31 Class AM-RMB / AM Class AM-USD / AM Class AM-HKD / AM RMB10,000 USD1,000 HKD10,000 (initial and subsequent) / (initial and subsequent) / (initial and subsequent) / 10,000 1,000 10,000 Minimum holding Minimum redemption Class AM-RMB / AM Class AM-USD / AM Class AM-HKD / AM Units with aggregate minimum Units with aggregate minimum Units with aggregate minimum value of RMB10,000 / value of USD1,000 / value of HKD10,000 / 10,000 1,000 10,000 Class AM-RMB / AM Class AM-USD / AM Class AM-HKD / AM Units with aggregate minimum Units with aggregate minimum Units with aggregate minimum value of RMB10,000 / value of USD1,000 / value of HKD10,000 / 10,000 1,000 10,000
## The figure is based on ongoing expenses chargeable to the class expressed as a percentage of the class s average net asset value for the year ended 31 March 2016. This figure may vary from year to year. 2016 3 31 ### The Manager may at its discretion and after consultation with the Auditors pay dividend out of gross income while charging/paying all or part of the Sub-Fund s fees and expenses to/out of the capital of the Sub-Fund (resulting in an increase in distributable income for the payment of dividends by the Sub-Fund), and thereby effectively pay distributions out of capital of the Sub-Fund. What is this product? HSBC China Multi-Asset Income Fund is constituted in the form of a unit trust. It is a sub-fund (the Sub-Fund ) of an umbrella fund, HSBC Collective Investment Trust (the Fund ). Objectives and Investment Strategy Objectives The Sub-Fund aims to provide income and moderate capital growth, through an active asset allocation in a diversified portfolio of a minimum of 70% of its Net Asset Value in fixed income and equity securities as well as money market and cash instruments that are related to China. 70% Strategy For the equity portion of the Sub-Fund, the Sub-Fund seeks to invest in China A-Shares and B-Shares listed on stock exchanges in the PRC, H- Shares listed on The Hong Kong Stock Exchange ( SEHK ) and other China-related shares or securities listed on the above exchanges as well as on other exchanges outside of the PRC, Hong Kong and Macau ( other China-related listed securities ). For other China-related listed securities, the Sub-Fund will invest in securities of companies which carry out or possess a preponderant part of their business activities in or are related to China. A B H The Sub-Fund may directly access China A-Shares through the Shanghai-Hong Kong Stock Connect. Exposure to China A-Shares through the Shanghai-Hong Kong Stock Connect will not be more than 10% of the Sub-Fund s Net Asset Value. Besides, the Sub-Fund s exposure to China A-Shares may be indirectly obtained through China A-Shares Access Products (CAAPs) including equity linked notes and other similar equity linked securities and instruments issued by institutions that have obtained the QFII status, provided that the aggregate investment in CAAPs will not be more than 30% of the Sub-Fund s Net Asset Value. A A 10% A (CAAP) QFII A CAAP 30% From time to time, the Sub-Fund s total (direct and indirect) exposure to China A-Shares will not be more than 40% of its Net Asset Value. The Sub-Fund s total exposure to China A-Shares and B-Shares will not be more than 80% of its Net Asset Value. A 40% A B 80% There are no capitalisation restrictions for stocks in which the Sub-Fund may invest, and the Sub-Fund will normally invest across a range of market capitalisation. The Sub-Fund will also invest in offshore PRC fixed income securities (including but not limited to bonds and notes) as well as money market instruments. The Sub-Fund currently may invest in instruments denominated and/or settled in RMB or other currencies including but not limited to USD/HKD, such as fixed income or debt instruments issued or guaranteed by the government or government agencies of the PRC and companies which have their registered office in the PRC or which carry out a preponderant part of their business activities in the PRC, and RMB denominated and/or settled fixed income or debt instruments issued or guaranteed by other governments, government agencies and companies. These fixed income or debt instruments include, but are not limited to, corporate bonds, government bonds, commercial papers, medium term notes, floating rate notes, bankers acceptances, money market instruments, certificates of deposits, bank deposits and negotiated term deposits issued, distributed or dealt outside the PRC. The Sub-Fund may also invest in convertible bonds issued, distributed or dealt outside the PRC.
The Sub-Fund does not have explicit restrictions on the minimum credit ratings of securities it may hold. It may also invest in unrated securities (i.e. securities for which no credit rating is assigned by any internationally recognised credit rating agency). The aggregate investment in securities that are (i) unrated; or (ii) rated non-investment grade by an internationally recognised credit rating agency (i.e. rated below Baa3 by Moody s or BBBby Standard & Poor s or equivalent by a rating agency) will be up to 50% of its Net Asset Value. (i) (ii) Baa3 BBB- 50% The Sub-Fund may invest in asset-backed securities (including asset-backed commercial papers) for up to 10% of its Net Asset Value. 10% The Sub-Fund may invest up to 100% of its Net Asset Value in units or shares of other China-related collective investment schemes authorised by the SFC (including other sub-fund(s) of the Fund), for example RQFII funds authorised by the SFC, or in recognised jurisdiction schemes (whether authorised by the SFC or not), for example schemes domiciled in Luxembourg and Ireland, except that not more than 10% of its net assets may be invested in non-recognised jurisdiction schemes not authorised by the SFC. Investment in RQFII funds will be up to 30% of the Sub-Fund s Net Asset Value. The Sub-Fund will not invest in securities investment funds that are offered within the PRC. 100% RQFII 10% RQFII 30% The Sub-Fund may invest in cash, deposits and money market instruments for liquidity purposes. The asset allocation may change over time depending on the Manager s view on market opportunities. The Sub-Fund will normally be exposed to RMB, HKD and USD. Depending on the asset allocation of the Manager, the Sub-Fund s exposure to different currencies may vary over time, and it may from time to time have limited exposure to RMB denominated assets. The Sub-Fund may use derivative instruments such as deliverable/non-deliverable forwards for hedging purposes. Save as mentioned above, the Sub-Fund will not invest in other derivative instruments or structured deposits or products for investment purposes. The Manager will not enter into securities lending, repurchase or reverse repurchase transactions or similar over-the-counter transactions in respect of the Sub-Fund. The Manager s asset allocation strategy focuses on assets with the best long term expected returns, based on the forecast reviewed continuously by the Manager, taking into account risks associated with the assets. What are the Key Risks? Investments involve risks. Please refer to the offering document for details including the risk factors. Investment risk The Sub-Fund is an investment fund. The Sub-Fund s investment portfolio may fall in value and therefore you may suffer losses by investing in the Sub-Fund. Investing in the Sub-Fund is not the same as deposits with a bank. There is no guarantee in respect of repayment of principal. There is no guarantee on regular payment of distributions and, if distribution is made, the rate of such distributions is not guaranteed. There is no guarantee that the Sub-Fund s investment objective can be achieved. Risks relating to the China market: : Single market risk/china market risk / The Sub-Fund invests primarily in the PRC markets which involve higher concentration risks, and greater political, economic, foreign exchange, legal and regulatory risk.
Risks relating to currencies and currency conversion: : Foreign exchange risk Because the Sub-Fund s assets and liabilities may be denominated in currencies (such as RMB) different from the Sub-Fund s base currency (HKD), the Sub-Fund may be affected unfavourably by exchange control regulations or changes in the exchange rates between the Sub- Fund s base currency and other currencies. Although the Sub-Fund may invest in securities that are related to China, such investments may not be denominated in RMB. Further, as HKD (the base currency of the Sub-Fund) is currently pegged to USD, any depreciation of USD against other currencies may cause the value of Units denominated in HKD to depreciate against such other currencies. Dividends (for the distribution Classes of Units only) will be paid in the relevant Class Currency, which may involve currency conversion of the proceeds obtained from realisation of the Sub-Fund s assets. Currency conversion involves foreign exchange risks as the exchange rates are subject to fluctuations. RMB currency risk RMB is currently not freely convertible and is subject to exchange controls by the Chinese government and as the Sub-Fund s base currency is HKD, but the Sub-Fund may invest in RMB denominated investments. RMB is subject to the risk of devaluation. Investors may be adversely affected by movements of the exchange rates between RMB and other currencies. Currency conversion risk for RMB denominated Classes The Sub-Fund offers RMB denominated Classes of Units. Subscriptions and redemptions for the Sub-Fund may involve conversion of currency. Currency conversion will be conducted at the applicable exchange rate and subject to the applicable spread. Depending on the exchange rate movements of RMB relative to the base currency of the Sub-Fund and/or other currency(ies) of the non- RMB-denominated underlying investments, an investor (i) may still suffer losses even if there are gains or no losses in the value of the non- RMB-denominated underlying investments; or (ii) may suffer additional losses if the non-rmb-denominated underlying investments of the Sub-Fund fall in value. (i) (ii) Currency conversion is also subject to the Sub-Fund s ability to convert the proceeds into RMB which may also affect the Sub-Fund s ability to meet redemption requests from Unitholders in RMB denominated Classes of Units or to make distributions, and may delay the payment of redemption proceeds or dividends. As RMB is not freely convertible, currency conversion is subject to availability of RMB at the relevant time. The Sub-Fund may not have sufficient RMB for its investments. Further, in case of sizable redemption requests for the RMB Classes, the Manager has the absolute discretion to delay any payment in respect of redemption of the RMB Classes (for a period not exceeding one calendar month of receipt of a properly documented redemption request). When calculating the Net Asset Value of Units of a RMB denominated Class, the Manager will apply the exchange rate for offshore RMB market in Hong Kong, i.e. the CNH exchange rate, which may be at a premium or discount to the exchange rate for onshore RMB market in the PRC, i.e. the CNY exchange rate. Consequently, there may be significant trading costs incurred and investors investing in Classes of Units denominated in RMB may suffer losses. CNH CNY
Risks relating to equity securities: : Equity securities risk Investment in equity securities is subject to market risk. The prices of such securities may also be volatile. If the market value of equity securities in which the Sub-Fund invests in goes down, its Net Asset Value may be adversely affected, and investors may suffer substantial losses. China A-Shares Access Products ( CAAPs ) A CAAP Investment in CAAPs can be illiquid as there is no active market in CAAPs. In order to meet realisation requests, the Sub-Fund relies upon the counterparty issuing the CAAPs to quote a price to unwind any part of the CAAPs. This price will reflect the market liquidity conditions and the size of the transaction. CAAP CAAP CAAP CAAP By seeking exposure to investments in China A-Shares through CAAPs, the Sub-Fund is taking on the credit risk of the issuer of the CAAPs. In the case of a default by the issuer, the Sub-Fund will suffer a loss in its investments in the CAAPs. CAAP A CAAP CAAP PRC tax risks relating to CAAPs CAAP The Manager (after taking tax advice) has decided that the Sub-Fund will not withhold (or will not request the CAAP issuers to withhold) any amount of realised or unrealised gains on its investments in CAAPs as tax provisions. The Manager (after taking tax advice) may at its discretion make further modification to the tax provision policy of the Sub-Fund based on new developments and interpretation of the relevant regulations. CAAP CAAP Any tax provisions may be excessive or inadequate to meet the actual tax liabilities. In case of any shortfall between the provisions and actual tax liabilities, which will be debited from the Sub-Fund s assets, the asset value of the Sub-Fund will therefore be adversely affected. In the event that it is satisfied (based on tax advice) that part of the tax provisions are not required, the Manager will arrange with the Trustee to release such provisions back into the Sub-Fund. However, Unitholders who have redeemed their holdings will not be entitled to such release of excess provisions, which will be reflected in the value of the Units. Risks relating to debt securities: : Credit risk The Sub-Fund is exposed to the credit/counterparty risk of issuers. Fixed income securities in which the Sub-Fund invests may have a lower credit rating or are unrated (i.e. considered to have a higher risk exposure), and may be unsecured debt obligations not supported by any collateral. The Sub-Fund will be fully exposed to the credit/insolvency risk of its counterparties as an unsecured creditor. In the event that any issuer of such securities defaults, becomes insolvent or experiences financial or economic difficulties, the value of the securities will be adversely affected. The Sub-Fund may suffer losses in its investment in such securities. Downgrading Risk Debt securities may be subject to the risk of being downgraded (i.e. lowering of credit rating assigned to the securities). In the event of downgrading in the credit ratings of a security or an issuer relating to a security, the Sub-Fund s investment value in such security may be adversely affected.
Interest rate risk Investment in the Sub-Fund is subject to interest rate risk. Generally, the prices of fixed income securities rise when interest rates fall, whilst their prices fall when interest rates rise. Liquidity risk The debt instruments in which the Sub-Fund invests may not be traded on an active secondary market. The Sub-Fund is therefore subject to liquidity risks. The bid and offer spreads of the price of such securities may be large, so the Sub-Fund may incur significant trading costs and may suffer losses accordingly. Convertible bonds Convertible bonds are subject to the risks of both equities and bonds. They are subject to interest rate risk and credit risk, and their prices may be unfavourably affected by changes in the price of the underlying equity securities. Other risks: : Derivative risk The Sub-Fund may use financial derivative instruments (e.g. forward contracts) for hedging purposes. There can be no assurance that any hedging techniques will fully and effectively eliminate the risk exposure of the Sub-Fund. The Sub-Fund may suffer losses if the issuers or counterparties of the derivative instruments default in their obligations. Risks associated with distribution out of capital For distribution Classes, if payment of dividends is made out of capital or effectively out of capital, it represents a return or withdrawal of part of the amount they originally invested or from any capital gains attributable to the original investment. Any distributions involving payment of dividends out of the Sub-Fund s capital or effectively out of the Sub-Fund s capital will result in an immediate reduction in the Net Asset Value of the relevant Class of Units. Risks of investing in other funds Investment in other funds may involve another layer of fees charged at the underlying fund level. There is no assurance that the investment objective or strategy of an underlying fund will be successfully achieved. If the Sub-Fund invests in an underlying fund managed by the Manager or a Connected Person of the Manager, all initial charges on such underlying fund will be waived. The Manager may not obtain a rebate on any fees or charges levied by such underlying fund or its manager. Where potential conflicts of interest arise, the Manager will endeavour to ensure that such conflicts are resolved fairly. Where underlying funds are not able to meet redemption requests of the Sub-Fund, the Sub-Fund will be subject to liquidity risks, and may suffer losses as a result of delays in receiving redemption proceeds. Risks relating to RQFII funds RQFII RQFII funds are subject to risks inherent in onshore PRC securities markets. There may not be sufficient RQFII quotas for a RQFII fund. Any repatriation restrictions (if imposed) may impact the RQFII funds ability to meet redemption requests, and therefore subject the Sub-Fund to liquidity risks insofar as it invests in RQFII funds. RQFII RQFII RQFII RQFII RQFII RQFII funds that are exchange traded funds (RQFII ETFs) involve cross-border transfer of funds. They are subject to tracking errors and their operation depends on the expertise and infrastructure of their manager (or its mainland parent company). The Sub-Fund may sustain a loss in its investment in RQFII ETFs. RQFII RQFII ETF RQFII ETF
How has the fund performed? 2.0 HSBC Collective Investment Trust - HSBC China Multi-Asset Income Fund (AMHKD) 1.5 1.5 1.0 % 0.5 0.0 0.1-0.5-0.6-1.0 2012 2013 2014 2015 2016 Fund Benchmark Past performance information is not indicative of future performance. Investors may not get back the full amount invested. The computation basis of the performance is based on the calendar year end, NAV-to-NAV, with dividend reinvested. These figures show by how much the unit class increased or decreased in value during the calendar year being shown. Performance data has been calculated in RMB including ongoing charges and excluding subscription fee and redemption fee you might have to pay. Where no past performance is shown there was insufficient data available in that year to provide performance. The reference performance benchmark of the Fund is 50% MSCI China Net 50% Markit iboxx ALBI China Offshore. 50% (MSCI China Net) 50% (Markit iboxx ALBI China Offshore) Fund launch date: 21 November 2014 : 2014 11 21 Class AM-HKD launch date: 21 November 2014 AM : 2014 11 21 Class AM-HKD is a Unit class open for investment by Hong Kong retail investors and denominated in the Sub-Fund s base currency. AM Is there any guarantee? This Sub-Fund does not have any guarantees. You may not get back the full amount of money you invest.
What are the fees and charges? Charges which may be payable by you You may have to pay the following fees when dealing in the Sub-Fund. Fees Subscription fee Switching fee Redemption fee What you pay Up to 5.25% of the offer price* 5.25%* Up to 1.0% of the offer price* 1.0%* Nil Ongoing fees payable by the Sub-Fund The following expenses will be paid out of the Sub-Fund. They affect you because they reduce the return you get on your investments. Fees Annual rate (as a % of the Net Asset Value of the Sub-Fund) % Management fee 1.35%* Trustee fee 0.1%*, subject to an annual minimum fee of HKD470,000 0.1%* 470,000 Performance fee Administration fee Not applicable Not applicable Other fees You may have to pay other fees and charges when dealing in the Sub-Fund. * The fees and charges may also be increased up to maximum level as specified in the offering document by giving at least one month s prior notice to investors. Please refer to the offering document for further details. 1 Additional information You generally buy and redeem units at the Sub-Fund s next-determined subscription price and redemption price with reference to the Net Asset Value (NAV) after the intermediaries receive your request in good order on or before 4:00 pm (HK Time), being the dealing cut-off time. 4 Intermediaries who sell the Sub-Fund may impose earlier cut-off times for receiving instructions for subscriptions, redemptions or switching. Investors should pay attention to the arrangements of the intermediary concerned. Investors may obtain the past performance information of other unit classes offered to Hong Kong investors at www.assetmanagement.hsbc.com/hk (the website has not been reviewed by the SFC). www.assetmanagement.hsbc.com/hk Investors may obtain information on the intermediaries online at www.assetmanagement.hsbc.com/hk (the website has not been reviewed by the SFC). www.assetmanagement.hsbc.com/hk The Net Asset Value of the Sub-Fund is calculated and the price of the Sub-Fund published on each dealing day The composition of the latest dividends (i.e. the relative amounts paid out of (i) net distributable income and (ii) capital) (if any) for the last 12 months is available from the Manager on request and on the website www.assetmanagement.hsbc.com/hk. 12 (i) (ii) www.assetmanagement.hsbc.com/hk Important If you are in doubt, you should seek professional advice. The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness. Issued by HSBC Global Asset Management (Hong Kong) Limited