HSBC Asia Pacific (Ex Japan) Dividend Yield Fund

Our philosophy

We believe that there is a well-established relationship between profitability and valuation, and that excess market volatility often leads to mispricing of stocks.

Our process

Our disciplined investment process is focused on fundamental research to identify attractive investment opportunities based on company profitability and valuation, among other factors. Risk management is fully integrated into the investment process.

Key Risks

• Exchange rate risk: Investing in assets denominated in a currency other than that of the investor’s own currency perspective exposes the value of the investment to exchange rate fluctuations
• Emerging market risk: Emerging economies typically exhibit higher levels of investment risk. Markets are not always well regulated or efficient and investments can be affected by reduced liquidity
• Derivative risk: The value of derivative contracts is dependent upon the performance of an underlying asset. A small movement in the value of the underlying can cause a large movement in the value of the derivative. Unlike exchange traded derivatives, over-the-counter (OTC) derivatives have credit risk associated with the counterparty or institution facilitating the trade
• Operational risk: The main risks are related to systems and process failures. Investment processes are overseen by independent risk functions which are subject to independent audit and supervised by regulators

Scheme name and Type of scheme HSBC Asia Pacific (Ex Japan) Dividend Yield Fund (An open ended fund of fund scheme investing in HSBC Global Investment Funds - Asia Pacific Ex Japan Equity High Dividend Fund) This product is suitable for investors who are seeking*: To create wealth over long-term Investment in equity and equity related securities of Asia Pacific countries (excluding Japan) through fund of funds route As per AMFI Tier I Benchmark i.e. Benchmark Index: MSCI AC Asia Pacific ex Japan TRI

*Scheme Risk-o-meter

Benchmark Risk-o-meter (as applicable)

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Note on Risk-o-meters: The risk-o-meter is as per the product labelling of the Scheme available as on the date of this communication/disclosure Any change in risk-o-meter shall be communicated by way of Notice cum Addendum and by way of an e-mail or SMS to unitholders of that particular scheme.

Visit this link and check the latest Riskometer / Product Labels in the “Performance - Equity Hybrid Debt Global Funds” document of the latest month. Past performance may or may not be sustained in the future and is not indicative of future results.

Potential Risk Class (‘PRC’) matrix indicates the maximum interest rate risk (measured by Macaulay Duration of the scheme) and maximum credit risk (measured by Credit Risk Value of the scheme) the fund manager can take in the scheme. PRC matrix classification is done in accordance with and subject to the methodology/guidelines prescribed by SEBI to help investors take informed decision based on the maximum interest rate risk and maximum credit risk the fund manager can take in the scheme, as depicted in the PRC matrix.

Investors are requested to note that as per SEBI (Mutual Funds) Regulations, 1996 and guidelines issued thereunder, HSBC AMC, its employees and/or empaneled distributors/agents are forbidden from guaranteeing/promising/assuring/predicting any returns or future performances of the schemes of HSBC Mutual Fund. Hence please do not rely upon any such statements/commitments. If you come across any such practices, please register a complaint via email at investor.line@mutualfunds.hsbc.co.in.

This document/content is intended only for distribution in Indian jurisdiction. Neither this document nor the units of HSBC Mutual Fund have been registered under Securities law/Regulations in any foreign jurisdiction. The distribution of this document in certain jurisdictions may be unlawful or restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions. If any person chooses to access this document from a jurisdiction other than India, then such person do so at his/her own risk and HSBC and its group companies will not be liable for any breach of local law or regulation that such person commits as a result of doing so.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Understanding Overseas Fund of Funds at HSBC Mutual Fund India