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HSBC Global Liquidity Funds plc Annual Report and Audited Financial Statements for the financial year ended 30 April 2017

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HSBC GLOBAL LIQUIDITY FUNDS PLC

(A variable capital umbrella investment company with segregated liability between the sub-funds with registered number 306643)

HSBC Sterling Liquidity Fund HSBC US Dollar Liquidity Fund

HSBC Euro Liquidity Fund HSBC Canadian Dollar Liquidity Fund

Annual Report and

Audited Financial Statements for the financial year ended 30 April 2017

Contents

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General Information................................................................................................................................................. 3

Directors’ Report ..................................................................................................................................................... 4

Statement of Directors’ Responsibilities................................................................................................................ 10

Investment Managers’ Reports ............................................................................................................................. 11

Report from the Depositary to the Shareholders .................................................................................................. 19

Independent Auditor's Report ................................................................................................................................ 20

Statement of Financial Position ............................................................................................................................. 22

Statement of Comprehensive Income ................................................................................................................... 27

Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares .................... 30

Statement of Cash Flows ...................................................................................................................................... 33

Notes to the Financial Statements ........................................................................................................................ 36

Portfolio Statements .............................................................................................................................................. 79

Statement of Significant Portfolio Changes (unaudited) ...................................................................................... 94

Company’s Remuneration Policy (unaudited) ...................................................................................................... 98

Securities Financing Transactions Regulation (SFTR) Annual Report Disclosures (unaudited) ........................ 100

General Information

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Directors: Irish Legal Advisers: Peter Blessing, Chairman (Irish)* A & L Goodbody Desmond Miller (Irish)* 25/28 North Wall Quay Angus Schumacher (Australian)** IFSC Dublin 1 * Independent non-executive director Ireland ** Non-executive director Registered Office: Sponsoring Broker: Goodbody Secretarial Limited Matheson 25/28 North Wall Quay 70 Sir John Rogerson’s Quay IFSC Dublin 2 Dublin 1 Ireland Ireland Global Distributor/Global Service Independent Audit or: Provider/United Kingdom Representative: KPMG HSBC Global Asset Management (UK) Limited 1 Harbourmaster Place 78 St James’s Street IFSC London SW1A 1EJ Dublin 1 United Kingdom Ireland Investment Managers: Administrator and Registrar: For HSBC Sterling Liquidity Fund and HSBC BNY Mellon Fund Services (Ireland) Designated Euro Liquidity Fund Activity Company HSBC Global Asset Management (France) Guild House Immeuble Coeur Défense - Tour A PO Box 4935 110 Esplanade du Général de Gaulle - La Défense 4 Guild Street 75419 Paris IFSC France Dublin 1 Ireland For HSBC US Dollar Liquidity Fund and HSBC Canadian Dollar Liquidity Fund Depositary: HSBC Global Asset Management (USA) Inc. BNY Mellon Trust Company (Ireland) Limited 452 Fifth Avenue Guild House 7th Floor PO Box 4935 New York NY 10018 Guild Street USA IFSC Dublin 1 Secretary: Ireland Goodbody Secretarial Limited 25/28 North Wall Quay Swiss Paying Agent: IFSC HSBC Private Bank (Suisse) SA Dublin 1 Quai des Bergues 9-17

Ireland P.O. Box 2888 CH-1211 Genève 1 Swiss Representative: Switzerland HSBC Global Asset Management (Switzerland) Ltd Gartenstrasse 26 P.O. Box CH-8002, Zurich Switzerland

Directors’ Report

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The Directors submit their annual report together with the audited financial statements for the financial year ended 30 April 2017 (the “Financial Statements”).

COMPANY INFORMATION

HSBC Global Liquidity Funds plc (the “Company”) is an open-ended investment company with variable capital and having segregated liability between its sub-funds, incorporated as a public limited company under the laws of Ireland. The Company was authorised by the Central Bank of Ireland (the “Central Bank”) as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) within the meaning of the European Communities UCITS Regulations on 20 August 1999.

There are four active sub-funds, which have been approved by the Central Bank:

• HSBC Sterling Liquidity Fund

• HSBC US Dollar Liquidity Fund

• HSBC Euro Liquidity Fund

• HSBC Canadian Dollar Liquidity Fund

All active share classes with the exception of the share classes Y and Z are listed on the Irish Stock Exchange.

The Directors suspended applications for shares in HSBC Euro Government Liquidity Fund with effect from 15 June 2012 by way of a resolution and all of the shares were redeemed on 15 July 2012. This sub-fund has not yet been formally liquidated nor has an application for termination of approval been made to the Central Bank.

The sub-funds are designed for investors seeking security of capital and daily liquidity together with an investment return comparable to normal money market interest rates.

Each sub-fund maintains a separate portfolio of assets and may issue different classes of shares which may have different investment objectives, fee structures and levels of minimum subscriptions. The investment objectives and policies of the Company are determined for each sub-fund.

Please refer to Note 1 for share class information.

CORPORATE GOVERNANCE STATEMENT – GENERAL PRINCIPLES

The European Communities (Directive 2006/46/EC) Regulations (S.I. 450 of 2009 and S.I. 83 of 2010) requires the inclusion of a corporate governance statement in the Directors’ Report. Although there is no statutory corporate governance code applicable to Irish collective investment schemes whose shares are admitted to trading on the Irish Stock Exchange, the Directors have voluntarily adopted the Corporate Governance Code for Irish Domiciled Collective Investment Schemes as published in September, 2010, by the Irish Funds Industry Association (the “IFIA Code”), as the Company’s corporate governance code, which was the Company's corporate governance code until 22 November 2012.

On 22 November 2012, the Board voluntarily adopted the 'Corporate Governance Code for Collective Investment Schemes and Management Companies' as published by the IFIA in December 2011 (the "IFIA Corporate Governance Code"), as the Company’s corporate governance code with effect from 22 November 2012. In respect of the financial year ended 30 April 2017, the Directors confirm compliance with the provisions of the IFIA Corporate Governance Code.

The Company is subject to corporate governance practices imposed by: (i) The Companies Act 2014 (the “Companies Act”), which can be obtained at http://www.irishstatutebook.ie/home;

(ii) The Articles of Association of the Company which are available for inspection at the registered office of the Company at 25/28 North Wall Quay, Dublin 1, Ireland and at the Companies Registration Office in Ireland;

(iii) The Central Bank of Ireland in their UCITS Regulations which can be obtained from the Central Bank of Ireland’s website at www.centralbank.ie; and

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(iv) The Irish Stock Exchange (“ISE”) through the ISE Code of Listing Requirements and Procedures which can be obtained from the ISE’s website at www.ise.ie.

The Company is not subject to the European Communities (Takeover Bids (Directive 2004/25/EC)) Regulations 2006.

INTERNAL CONTROL AND RISK MANAGEMENT SYSTEMS OF THE COMPANY IN RELATION TO THE FINANCIAL REPORTING PROCESS

The Directors are responsible for establishing and maintaining adequate internal control and risk management systems of the Company in relation to the financial reporting process. Such systems are designed to manage rather than eliminate the risk of error or fraud in achieving the Company’s financial reporting objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.

The Directors have procedures in place to ensure that all relevant accounting records are properly maintained and are readily available, including production of annual and interim Financial Statements. The annual and interim Financial Statements of the Company are required to be approved by the Directors and filed with the Central Bank and the Irish Stock Exchange. The annual Financial Statements are required to be audited by an independent auditor who reports annually to the Board on their findings. The Directors evaluate and discuss significant accounting and reporting issues as the need arises.

The Directors have established processes regarding internal control and risk management systems to ensure their effective oversight of the financial reporting process. These include appointing the Administrator, BNY Mellon Fund Services (Ireland) Designated Activity Company, to maintain adequate accounting records of the Company independently of the Investment Managers and the Depositary. The Administrator is authorised and regulated by the Central Bank and complies with the rules imposed by the Central Bank.

From time to time the Directors also examine and evaluate the Administrator’s financial accounting and reporting routines and monitor and evaluate the independent auditor’s performance, qualifications and independence. The Administrator has operating responsibility in respect of its internal controls in relation to the financial reporting process and the Administrator’s report to the Directors.

The Directors receive regular presentations and review reports from the Depositary, the Investment Managers and the Administrator. The Directors also have an annual process to ensure that appropriate measures are taken to consider and address the shortcomings identified and measures recommended by the independent auditor.

DEALINGS WITH SHAREHOLDERS

The annual general meeting of the Company is held in Ireland. Notice convening the annual general meeting at which the audited Financial Statements of the Company will be presented (together with the Directors’ and Auditor’s Reports of the Company) will be sent to the shareholders at their registered addresses.

The convening and conduct of shareholders’ meetings are governed by the Articles of the Company and the Companies Act. Although the Directors may convene an extraordinary general meeting of the Company at any time, the Directors are required to convene an annual general meeting of the Company within eighteen months of incorporation and fifteen months of the date of the previous annual general meeting thereafter. Shareholders representing not less than one tenth of the paid up share capital of the Company may also request the Directors to convene a shareholders’ meeting. Not less than twenty one clear days notice of every annual general meeting and any meeting convened for the passing of a special resolution must be given to shareholders and fourteen days’ notice must be given in the case of any other general meeting unless the auditor of the Company and all the shareholders of the Company entitled to attend and vote agree to shorter notice.

Shareholders present either in person or by proxy constitutes a quorum at a general meeting. The quorum for a general meeting convened to consider any alteration to the class rights of shares is two shareholders holding or representing by proxy at least one third of the issued shares of the class in question. Every shareholder present in person or by proxy who votes on a show of hands is entitled to one vote. On a poll, every shareholder is entitled to one vote in respect of each share held by him. Any three shareholders having the right to vote at such meeting or any one shareholder or holders present in person or by proxy representing at least one tenth of the shares in issue having the right to vote at such meeting may demand a poll or the Chairman of the meeting may determine to hold a vote by poll.

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Shareholders may resolve to adopt an ordinary resolution or special resolution at a shareholders’ meeting. An ordinary resolution of the Company or of the shareholders of a particular sub-fund or class requires a simple majority of the votes cast by the shareholders voting in person or by proxy at the meeting at which the resolution is proposed. A special resolution of the Company or of the shareholders of a particular sub-fund or class requires a majority of not less than 75% of the shareholders present in person or by proxy and voting in general meeting in order to pass a special resolution including a resolution to amend the Articles.

COMPOSITION AND OPERATION OF THE BOARD OF DIRECTORS

Unless otherwise determined by an ordinary resolution of the Company in a general meeting, the number of Directors may not be less than two. Currently the board of Directors is composed of three Directors, being those listed on page 3 of these Financial Statements. The Directors meet at least quarterly and there are no sub-committees of the Board of Directors.

The business of the Company is managed by the Directors, who exercise all such powers of the Company as are not, by the Companies Act or by the Articles of the Company required to be exercised by the Company in a general meeting. A Director may, and the Company Secretary of the Company on the requisition of a Director will, at any time summon a meeting of the Directors. Questions arising at any meeting of the Directors are determined by a majority of votes. In the case of an equality of votes, the Chairman has a second or casting vote. The quorum necessary for the transaction of business at a meeting of the Directors is two.

The principal responsibility of the Directors is oversight of the business affairs of the Company and consistent with these oversight responsibilities the Directors have delegated management functions and responsibilities to duly qualified service providers. Such service providers are subject to ongoing oversight by the Directors.

ADEQUATE ACCOUNTING RECORDS

In accordance with the requirements of Section 281-285 of the Companies Act, the Directors are responsible for keeping adequate accounting records that are sufficient to: � correctly record and explain the transactions of the company;

� enable, at any time, the assets, liabilities, financial position and profit or loss of the Company to be determined with reasonable accuracy; and

� enable the Directors to ensure that the Financial Statements comply with the Companies Act and enable those Financial Statements to be audited.

The Directors believe that they have complied with the requirements of Section 281-285 of the Companies Act with regard to accounting records by engaging the services of an Administrator, who employs personnel with appropriate expertise and adequate resources to provide the Company’s finance function. The Directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Company has appointed HSBC Global Asset Management (France) and HSBC Global Asset Management (USA) Inc. as the Investment Managers (“the Investment Managers”), BNY Mellon Fund Services (Ireland) Designated Activity Company (“the Administrator”) as the Administrator and BNY Mellon Trust Company (Ireland) Limited (“the Depositary”) to act as Depositary of the Company’s assets.

The measures taken by the Directors to secure compliance with the Company’s obligations to keep adequate accounting records include the use of appropriate systems and procedures and the employment of competent persons. The accounting records are retained at the office of the Administrator at Guild House, Guild Street, International Financial Services Centre, Dublin 1. DIRECTORS AND SECRETARY

The names of the persons who were Directors at any time during the financial year ended 30 April 2017 are set out on page 3. All the Directors serve in a non-executive capacity.

Goodbody Secretarial Limited held the office of secretary (the “Secretary”) throughout the financial year.

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DIRECTORS’ AND SECRETARY’S INTERESTS IN SHARES AND CONTRACTS

Neither the Directors nor the appointed secretary, nor their spouses and minor children had any interests in the Company as at their date of appointment or at any time during the financial year.

EMPLOYEES

The governance framework of the Company reflects the fact that, as a collective investment scheme, it has no employees and outsources investment management and administration.

RISKS, UNCERTAINTIES AND KEY PERFORMANCE INDICATORS

The main risks arising from the sub-funds’ financial instruments can be seen in Note 8 to the Financial Statements.

The Company's overall risk management policy focuses on the agreed risk management mechanisms and techniques that are used by the Investment Managers to measure, manage and report the relevant risks which the sub-funds of the Company are or might be exposed to. The main risks that investment in the Company carries with it include, but not limited to, the risks referred to in Note 8 of these Financial Statements. The Company’s business activities, together with the factors likely to affect its future development, performance and position are set out in the Investment Managers’ Report. The financial position of the Company is described in the Financial Statements on page 22 to 26. In addition, the Investment Managers’ Report sets out the objectives of the sub-funds and the outlook for the sub-funds. The Company has considerable assets under management and as a consequence, the Directors believe that the Company is well placed to manage its business successfully. FUTURE DEVELOPMENTS

The Company will continue its investment objective of seeking to provide holders of redeemable participating shares with security of capital and daily liquidity together with an investment return which is comparable to normal money market rates of the base currency of each sub-fund. SEGREGATED LIABILITY

The Company has segregated liability between its sub-funds and accordingly any liability incurred on behalf of or attributable to any sub-fund shall be discharged solely out of the assets of that sub-fund. As of the date of the financial year end the Directors are not aware of any existing or contingent liability of any sub-fund of the Company. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR

Launch of new share classes

During the year the following share classes launched.

Share Class Launch Date HSBC Sterling Liquidity Fund E Shares 13 June 2016

Y Shares 30 August 2016

Share Class Launch Date

HSBC US Dollar Liquidity Fund E Shares 16 November 2016

New Sub-Funds

On 9 November 2016 HSBC RMB Liquidity Fund was approved by the Central Bank of Ireland.

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Changes to the Prospectus

A revised Prospectus was filed and approved by the Central Bank of Ireland on 9 November 2016. The significant amendments to the Prospectus were: (i) change of Dealing Deadline on final Dealing Day before Christmas and New Year’s Day to 9.30 a.m. Dublin time in HSBC Euro Liquidity Fund and HSBC Sterling Liquidity Fund; (ii) update of the definition of the Business Day and Dealing Deadline to any day which is not a Securities Industry and Financial Markets Association (SIFMA) closing day in HSBC US Dollar Liquidity Fund; (iii) removal of an option to charge a switching fee; (iv) inclusion of a reference to procedure of a lack of liquidity on the day preceding or following a public holiday; and (v) update of conditions relating to the compulsory transfer of shares.

There have been no other significant events during the financial year.

SIGNIFICANT EVENTS SINCE THE FINANCIAL YEAR END

Please refer to Note 15.

CONNECTED PERSONS TRANSACTIONS

Regulation 41 of the Central Bank UCITS Regulations “Restrictions of transactions with connected persons” states that “a responsible person shall ensure that any transaction between a UCITS and a connected person is conducted a) at arm’s length; and b) in the best interest of the unitholders of the UCITS”. As required by Regulation 78 (4) of Central Bank UCITS Regulations, the Directors, as responsible persons are satisfied that there are arrangements in place, evidenced by written procedures, to ensure that the obligations that are prescribed by Regulation 41(1) are applied to all transactions with a connected person; and all transactions with connected persons that were entered into during the financial year to which the report relates complied with the obligations that are prescribed by Regulation 41(1). SOFT COMMISSIONS

No soft commission arrangements were entered into during the financial year.

AUDITOR

KPMG, Chartered Accountants, will continue in office in accordance with Section 383 (2) of the Companies Act 2014.

COMPLIANCE STATEMENT

The Directors acknowledge that they are responsible for securing the Company’s compliance with the relevant obligations as set out in section 225 of the Companies Act 2014. The Directors confirm that: 1. A compliance policy document has been drawn up that sets out policies, that in our opinion are appropriate to

the Company, respecting compliance by the Company with its relevant obligations; 2. Appropriate arrangements or structures are in place that are, in our opinion, designed to secure material

compliance with the Company's relevant obligations; and 3. During the financial year, the arrangements or structures referred to in (2) have been reviewed STATEMENT OF RELEVANT AUDIT INFORMATION

The Directors believe that they have complied with the requirements of Section 330 of the Companies Act 2014 as follows:

• So far as each person who is a Director at the date of approving this report is aware, there is no relevant audit information, being information needed by the auditor in connection with preparing its report, of which the auditors are unaware; and

• Having made enquiries of fellow Directors and the Company’s auditor, each Director has taken all the steps that he/she is obliged to take as a Director in order to make himself/herself aware of any relevant audit information and to establish that the auditor is aware of the information.

Investment Managers’ Reports

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HSBC Sterling Liquidity Fund

Market review:

Yields on the 10-year gilt, the UK’s benchmark government bond, moved lower over the period under review (bond prices and yields move inversely to each other). Resilient economic data in the UK despite the ‘Brexit’ vote, the election of Donald Trump as the US president in November, and the Federal Reserve’s (Fed) two interest rate increases all contributed to the generally reflationary environment that helped boost bond prices for much of the period.

The UK’s vote in June 2016 to leave the EU had a profound effect on gilts. The benchmark 10-year gilt dropped steeply from 1.376% on 24 June (the day of the referendum) to below 1%, and languished there until mid-October. Investors considered a UK interest-rate cut to be increasingly likely, a factor that helped to anchor yields. A backdrop of uncertainty, stemming from fears over the long-term consequences of Brexit, also supported gilts.

As the period began, the expectation had been for a Bank of England (BoE) rate rise in 2016. However, following the Brexit referendum, the central bank adopted an interventionist approach, cutting interest rates from 0.5% to 0.25% – this helped push gilt yields down to record lows. The BoE also announced an enhancement to its asset-purchase programme, which meant that the bank would buy corporate bonds for the first time – although only from companies making a “material contribution to economic activity in the UK”. Corporate bond prices found new highs as the BoE’s programme drove up demand for bonds and investors sought safer alternatives to the volatile equity markets.

The BoE made no further changes to rates, officially maintaining a neutral stance. Not all meeting votes in 2017 have been unanimous, however, and some governors are hinting at a more hawkish stance as inflation is projected to rise during 2017. Indeed, as a weaker pound sterling began to make most consumer purchases more expensive, headline inflation moved up to 2.3% in the third week of March 2017, driven by higher food and fuel costs.

As the period drew to a close, first-quarter 2017 GDP data was released, revealing that the UK economy grew at a sluggish 0.3%, short of estimates, and Prime Minister Theresa May unexpectedly announced a snap general election to be held 8 June 2017.

Portfolio review:

Since this time last year, the overriding theme dominating Sterling markets has been Brexit. Obviously, the result in June 2016 took many by surprise, and in the immediate aftermath markets reacted accordingly. This has led markets to be dominated by a great deal of uncertainty, both from domestic and external factors. This was compounded by Mr. Cameron’s resignation and most recently by Mrs. May’s surprise call for fresh elections in June 2017.

The Brexit result also pushed the Bank of England into taking action and this led to the widely flagged decision from the Monetary Policy Committee (MPC) to cut the base rate to 25bps at their August 2016 meeting. The BoE also announced a number of exceptional measures, such as the launch of a corporate bond purchases program, an increase in the size of the existing QE program by £50bn and the reopening of the Funding for Lending Scheme. Since this move, the Bank of England’s monetary policy stance has been a relatively straight forward call. The inflationary environment has remained relatively benign and the MPC’s thinking would appear to be that a change in monetary policy would only add to uncertainty.

Needless to say, the referendum had an impact on our investment strategy. Initially, in the months before the referendum, we had structured the fund in such a way that we had a large amount of maturities in or around the referendum date. Immediately prior to the referendum, we had been building larger amounts of overnight or one week cash on the fund than we would normally hold under our internal guidelines. In the aftermath of the shock result, and as a precautionary measure, we rolled all maturities into overnight cash holdings and refrained from any term investments. The date of the referendum also coincided with a quarter end which meant that liquidity conditions were particularly tight in Sterling markets. Temporary guidelines were gradually lifted as markets returned to a degree of normality in early July.

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Following the exceptional measures undertaken by the BoE and the ongoing QE in the Eurozone, both Sterling and Euro markets are awash with excess liquidity. This phenomenon, along with other external factors, has led to decrease in both issuer levels and issuer spreads. Under such conditions, both money market interest rates and the performance of the fund have moved in step and both have decreased over the period under review.

During the past year, the asset profile of the fund has remained stable with certificates of deposit (CD) and commercial papers comprising roughly 60% of holdings. We have extended our investment tenor on a number of European financials and some 12 month positions have been added on better quality European bank names.

The percentage of assets invested in Canadian and Australian Floating Rate Notes (FRN) has decreased as these positions have matured and opportunities for replacement trades have evaporated. However, we have seen the portion of the fund invested in Floating rate CDs increase.

We continue to use Asset Backed Commercial Paper (ABCP) as a means to manage short dated holdings (mainly one month and under) as these products offer an attractive yield pick-up compared to banks in this space. Over the past year, finding supply in this asset class has become more troublesome. This has led to a small decrease in average holdings of ABCP held by the fund.

The Weighted Average Maturity (WAM) was maintained, on average, at a relatively stable level throughout the past year at an average of around 51 days. Weighted Average Life (WAL) of the fund has also been stable at an average of 60 days over the period. HSBC Global Asset Management (France) – 22 May 2017

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HSBC US Dollar Liquidity Fund

Market review:

US 10-year Treasury yields ended the period broadly flat, which belied a fair amount of volatility stemming from political-risk aversion, as well as market uncertainty about global central-bank activity and the US presidential election. The Federal Reserve (“Fed”) increased interest rates in the US in December 2016, as economic data pointed to strength in the US economy; a second rate hike followed in March 2017.

In the day after the UK’s Brexit vote, US 10-year Treasury yields dived from 1.74% to 1.56%, mirroring falls in UK and core European debt. Yields on the 10-year paper subsequently fell to record lows, as risk aversion dominated markets. In addition, bond investors gauged a near-term hike in US rates to be less likely, until policymakers could judge the impact of Brexit on the US economy.

The Fed’s board did, in fact, initially keep interest rates on hold; however, with the surprising win for Donald Trump in November’s presidential elections, expectations for a reflationary environment began to increase. Then, supported by economic data that indicated growing strength in the US economy, the Fed made its first rate change in a year, while yields on the 10-year Treasury rose from 1.6% to 2.4% in the fourth quarter of 2016. Rising yields in Europe (as investors considered a curtailment of purchases by the European Central Bank) had a knock-on effect in the US.

At its March meeting, the Fed increased the target range for the Fed Funds rate by 25 basis points – from to 0.75% to 1% – and was relatively hawkish, indicating that there could be a further two or three increases later this year. This decision was widely expected. Interestingly, the Fed’s “dot plot”, which tries to capture the likely future course of interest rates, has become increasingly aligned with the bond market’s expectations whereas, previously, the two have diverged somewhat.

Portfolio review:

The industry transitioned into a new era after a series of major reforms to prime money market funds were completed in early October. Over one trillion dollars in assets migrated out of prime money market funds and into government and treasury money market funds. The majority of this movement took place over the third quarter, specifically, from mid-August to late September. As massive inflows occurred in these government money market funds, the demand for government securities were driven to new heights. As a result of this radical shift in market preference, yields on government securities quickly spiraled downwards, particularly in government agency product. Short maturing government agencies which had already been dwindling in size over the years, all of a sudden were in peak demand, and the yields on these type of securities even fell below the floor for where overnight repo can be executed.

As expected, at its Federal Open Market Committee (FOMC) meeting, the Fed decided to raise the target range of the federal funds rate by 25bp to 0.50% - 0.75% in mid-December, and by another 25bp to 0.75% - 1.00% in mid-March. In its economic assessment, the FOMC noticed that business investment has “firmed somewhat” while it was still perceived as “soft” previously. The FOMC also highlighted the fact that headline inflation recently moved closer to the 2% target, and expected that, over the medium term, it will stabilize at this level. However, FOMC participants also noted that core inflation (using core-PCE as a proxy) remained “somewhat below 2%” and market-based measures of inflation compensations remained low. After being suspended for over a year, the US debt ceiling was re-imposed at a level equal to the outstanding amount of debt on 15 March. A funding crisis is not immediate, however, as the governments can resort to alternative sources of financing for a few months. US Treasury Secretary Steven Mnuchin has said that he supports the use of the debt ceiling, which he intends to raise before the summer recess, which begins midway through the third quarter of 2017.

The portfolio started positioning for the December and March interest rate hikes even before Fed officials started to signal that rate hikes were going to be in play at both the December and March FOMC meeting. In order to achieve this, the fund maintained its heavy weighting in floating rate securities, specifically Libor based agency floating rate issuance. Although spreads continued to narrow on this product throughout the months following the fall-out from money market reform, the relative value remained strong due to slightly elevated Libor levels.

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When the Federal Reserve raised rates, both in mid-December and mid-March, the fund was well positioned between short repo maturities (overnight to one week) and monthly Libor floaters that were resetting at higher levels throughout the periods leading up to the two interest rate tightening’s. Asset flows have remained strong, even as many months have passed since 2A-7 money market reform has gone into effect. The fund was able to absorb the inflows without much erosion to yield thanks to the rising rate environment.

HSBC Global Asset Management (USA) Inc. – 22 May 2017

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HSBC Euro Liquidity Fund

Market review:

For investors in Europe, political risk and fiscal policy were very much in the spotlight over the year that ended 30 April 2017. The UK’s referendum on European Union (EU) membership was a key theme, prompting demand for core European government bonds, with German debt particularly sought after. In the immediate aftermath of Brexit, the benchmark 10-year bund fell to a fresh low. Meanwhile, in the Swiss market, debt across almost all maturities traded at negative yields. By contrast, yields on the debt of so-called peripheral countries such as Spain, Italy and Portugal initially rose, before pulling back.

At the time, the European Central Bank (ECB) adopted a wait-and-see approach to the Brexit result, declining to extend its scheme of stimulus measures until the ramifications became clearer. Economic data painted a mixed picture initially, but signs of growth in many of the world’s economies prompted speculation that central banks would rein in their stimulus plans as inflation started to heat up. Consequently, yields rose in key markets, including Germany and France. The ECB then announced it would continue its extensive asset-purchase programme, albeit at a tapered rate. Some revision to the wording in the ECB’s meeting minutes from March 2017 prompted a surge in European yields, as investors priced in a rate hike for 2018. Inflation moved up to 2.0% in February, its highest rate in four years. Overall, economic fundamentals appeared to be improving in many regions, and fourth-quarter corporate earnings, reported in early 2017, were encouraging.

Political risk carried throughout the period. In addition to Brexit and the surprise victory of Donald Trump in November’s US presidential race, a series of contentious elections on the Continent had investors driving up demand for bonds as ‘safe haven’ assets. Following a constitutional referendum in December, the Italian prime minister resigned; the focus then shifted to the Netherlands, where Prime Minister Mark Rutte ultimately defeated far-right candidate Geert Wilders. The French elections loomed largest of all, seen by many investors as a harbinger of the future of EU, with another far-right, anti-EU candidate facing off against a more centrist opponent. By the end of the period under review, after a year of rising yields on the pro-Europe Emmanuel Macron had won the first round of the two-part presidential election (and went on to complete a resounding victory on 7 May).

Portfolio review:

During the period under review, the investment profile of the fund has remained conservative. The Investment Manager’s priority continues to be the preservation of capital and to maintain a high degree of liquidity at all times.

Over the past year, month after month, excess liquidity surplus has continued to reach new highs, more or less following the pace of ECB QE. In this context (and with other external factors), we have been facing a huge credit spread tightening. Under such conditions, both money market interest rates and the performance of the fund have moved in step and both have decreased over the period under review. As QE has been extended until December 2017, we are not expecting this situation to change in the near future.

We have maintained our policy of restricting most of the investments to a six month maximum limit with a large percentage of assets held in even shorter dates. However, as the appetite from issuers for very short maturities has decreased (with more and more issuers not looking at all for any maturities below 6 months) we have slightly changed our strategy by keeping more cash in overnight and increasing our longer exposure in higher credit quality names.

When we extend investments beyond 6 months, we continue to favour high quality internally rated issuers such as agencies. Over the reporting period, there have only been minor changes to our credit lists. The portfolio still does not hold any exposure to peripheral countries, such as Italy or Spain.

In terms of asset mix, the investment managers tend to hold between 30% and 40% of the fund between natural overnight liquidity and ultra-liquid assets (agencies, T-bills, supranational). For the remaining portion of the fund, investments have been in bonds, certificates of deposit and commercial papers.

We continue to use Asset Backed Commercial Paper (ABCP) as a means to manage short dated holdings as these products offer an attractive yield pick-up compared to banks in this space. We tend to maintain this pocket below 10% of the fund.

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Also, the Investment Manager maintained a high degree of A-1+ paper and diversified names in certificates of deposit, commercial papers and sovereign issuers. Even if the portion of sovereign, agencies and supranational issuers has decreased, we continue to use it as it helped us to face potential redemptions in the fund as these products are extremely liquid and offer same day liquidity.

In the last 12 months, excess liquidity has doubled from around 830bn Euro to 1590bn, pushing the Euro Over Night Index Average (EONIA) and money market rates deeper into negative territory. The EONIA was at -0.33% at the beginning of the period, and finished the period at -0.36%. In the same time, the one year Euribor has decreased from -0.01% to -0.12% which illustrate the credit spread contraction.

Over the reporting period, the fund’s Weighted Average Life (WAL) decreased from 67 days to 64 days (with an average close to 60 days) while the Weighted Average Maturity (WAM) was maintained on average below 50 days.

HSBC Global Asset Management (France) – 22 May 2017

17

HSBC Canadian Dollar Liquidity Fund

Market review:

The yield on Canada’s 10-year government bond moved higher over the period under review, ending at 1.6% at the end of April 2017. This masked some underlying price volatility, however, resulting from economic concerns at home and geopolitical developments abroad.

In early May 2016, wildfires in the western province in Alberta raged for some weeks, causing considerable damage to property and necessitating a large-scale evacuation. The fires affected oil sands (used in the production of crude oil) and were finally declared safe in early June. The disaster had a major impact on Canada’s second-quarter GDP, which contracted at an annualised rate of 1.6%. The contraction marked the steepest decline since 2009. In July, the International Monetary Fund lowered its forecast for growth in 2016 by 0.1%, but revised its forecast for growth in 2017 upwards by 0.2%.

In late June, Canada’s currency dipped sharply against the US dollar in the wake of the UK’s ‘Brexit’ decision. Prime Minister Justin Trudeau struck a soothing tone in a post-Brexit address, highlighting Canada’s “diversified and resilient” economy.

As the period progressed, a recovery in oil prices helped the Canadian stock market, although the economy remained lacklustre for most of the period. Newly appointed foreign minister Chrystia Freeland had, as the country’s previous trade minister, helped Canada strike a free trade agreement – the Comprehensive Economic and Trade Agreement (CETA) – with the European Union (EU). In February, the European Parliament voted in favour of CETA. Policymakers at the Bank of Canada kept interest rates on hold throughout the period under review. However, towards the end of the reporting period, there was speculation that the central bank could soon turn hawkish. Rate-hike expectations accelerated after data showed that GDP growth for January surpassed forecasts. Other data showed that Canada experienced GDP growth of 2.6% in the fourth quarter of 2016 – this was also above estimates.

Portfolio review

During the period under review, the fund maintained an asset mix that has consisted predominantly of fixed-rate banker acceptances and fixed and floating rate bonds with maximum maturity tenors of one year. The primary maturity range during the reporting period was limited to the 1-3 month range, with some opportunistic extensions in 3-12 month securities within a select group of issuers in order to provide strong liquidity.

The fund invests in high-quality global banking, financial, corporate, provincial and Canadian government debt issuers. Canadian government, agency and provincial obligations, including Canadian Treasuries, represented roughly 33% of the fund’s assets at throughout most of the reporting period. Canadian issuers continue to show strong credit fundamentals and market liquidity.

The fund’s Weighted Average Maturity (WAM) at times crossed well over 50 days during the reporting period as a neutral market stance was maintained. The prevailing sentiment was to allow for an extended period of time to let the economic stimulus that was put in place by the Bank of Canada in early 2016 take full effect, with the objective being, to improve growth and restore the overall health of the nation’s economy.

The portfolio continued to be managed as if there was an extremely slight chance that rates would be cut at some point later in 2016. Most banking and corporate issuance remained sparse beyond three months throughout the reporting period as the odd phenomenon of issuer pull-back is practiced in the Canadian short-term markets. This is in contrast to US markets where there would be a pricing in of lower rates with securities issued at yields that would be lower than the current market levels (or an inverted short-term yield curve). One of the few options to hedge the portfolio against future rate cuts has been to invest in longer dated provincial securities. Provincial issuance has remained strong throughout this period of inversion and the pricing of these securities reflect a flatter yield curve. Therefore there is some relative value in adding these positions to the portfolio. The Bank soothed concerns about the resource sector, stating that movements in the Canadian dollar are helping to absorb some of the impact of lower commodity prices and are facilitating the adjustments taking place in Canada’s economy. The Canadian market took this to believe that chances of further rate cuts have diminished substantially, thus a modest back-up in yields on intermediate (1-6 month) issuance.

18

The Investment Manager continues to monitor the market’s overall health and to manage the fund accordingly whilst maintaining the focus on safety and liquidity.

HSBC Global Asset Management (USA) Inc. – 22 May 2017

Independent Auditor’s Report

Independent Auditor’s report to the members of HSBC Global Liquidity Funds Plc

We have audfted the financial statements of HSBC Global Liquidity Funds plc (the Company’) for the financial yearended 30 April 2017 which comprise the Statement of Financial Position, the Statement of Comprehensive Income,the Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares, the Statementof Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation isIrish law and International Financial Reporting Standards (IFRS”) as adopted by the European Union, Our auditwas conducted in accordance with International Standards on Auditing (UK and Ireland).Opinions and conclusions arising from our audit

1. Our opinion on the financial statements is unmodified

In our opinion the financial statements:

I give a true and fair view of the assets, liabilities and financial position of the Company as at 30 April 201 7 andof its changes in net assets attributable to holders of redeemable participating shares for the financial yearthen ended;

. have been properly prepared in accordance with IFRS as adopted by the European Union; and

. have been properly prepared in accordance with the requirements of the Companies Act 2014, the EuropeanCommunities (Undertakings for Collective Investment in Transferable Securities) Regulations 201 1 and theCentral Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investmentin Transferable Securities) Regulations 2015.

2. Our conclusions on other matters on which we are required to report by the Companies Act 2014 are setout below

We have obtained all the information and explanations which we consider necessary for the purposes of our audit.In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readilyand properly audited and the financial statements are in agreement with the accounting records.In our opinion the information given in the Directors’ Report is consistent with the financial statements.In addition we report, in relation to information given in the Corporate Governance Statement on pages 4 to 6, that:. based on knowledge and understanding of the Company and its environment obtained in the course of ouraudit, no material misstatements in the information identified above have come to our attention; andI based on the work undertaken in the course of our audit, in our opinion:

— the description of the main features of the internal control and risk management systems in relation to theprocess for preparing the financial statements is consistent with the financial statements and has beenprepared in accordance with the Companies Act 2014;— the Company is not subject to the European Communities (Takeover Bids (Directive 2004/25/EC))Regulations 2006 and therefore not required to include information relating to voting rights and othermatters required by those Regulations and specified by the Companies Act 2014 for our consideration inthe Corporate Governance Statement; and

— the Corporate Governance Statement contains the information required by the Companies Act 2014.3. We have nothing to report in respect of matters on which we are required to report by exceptionISAs (UK & Ireland) require that we report to you if, based on the knowledge we acquired during our audit, we haveidentified information in the annual report that contains a material inconsistency with either that knowledge or thefinancial statements, a material misstatement of fact, or that is otherwise misleading.In addition, the Companies Act 2014 requires us to report to you if, in our opinion, the disclosures of Directors’remuneration and transactions required by sections 305 to 312 ofthe Act are not made.

‘

20

Basis of our report, responsibilities and restrictions on use

As explained more fully in the Statement of Directors Responsibilities set out on page 10, the Directors areresponsible for the preparation of the financial statements and for being satisfied that they give a true and fair viewand otherwise comply with the Companies Act 2014. Our responsibility is to audit and express an opinion on thefinancial statements in accordance with Irish law and International Standards on Auditing (UK and Ireland). Thosestandards require us to comply with the Financial Reporting Councils Ethical Standards for Auditors.An audit undertaken in accordance with ISAs (UK & Ireland) involves obtaining evidence about the amounts anddisclosures in the financial statements sufficient to give reasonable assurance that the financial statements are freefrom material misstatement, whether caused by fraud or error. This includes an assessment of: whether theaccounting policies are appropriate to the Company’s circumstances and have been consistently applied andadequately disclosed; the reasonableness of significant accounting estimates made by the Directors; and theoverall presentation of the financial statements.

In addition, we read all the financial and non-financial information in the Annual Report to identify materialinconsistencies with the audited financial statements and to identify any information that is apparently materiallyincorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing theaudit. If we become aware of any apparent material misstatements or inconsistencies we consider the implicationsfor our report.

Whilst an audit conducted in accordance with ISAs (UK & Ireland) is designed to provide reasonable assurance ofidentifying material misstatements or omissions it is not guaranteed to do so. Rather the auditor plans the audit todetermine the extent of testing needed to reduce to an appropriately low level the probability that the aggregate ofuncorrected and undetected misstatements does not exceed materiality for the financial statements as a whole.This testing requires us to conduct significant audit work on a broad range of assets, liabilities, income and expenseas well as devoting significant time of the most experienced members of the audit team, in particular theengagement partner responsible for the audit, to subjective areas of the accounting and reporting.Our report is made solely to the Company’s members, as a body, in accordance with section 391 of the CompaniesAct 2014. Our audit work has been undertaken so that we might state to the Company’s members those matters weare required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law,we do not accept or assume responsibility to anyone other than the Company and the Company’s members as abo y, for our audit work, for this report, or for the opinions we have formed.

Ga ett 0’ NeillFor and on behalf of KPMGChartered Accountants, Statutory Audit FirmI Harbourmaster PlaceIFSCDublin IDate: 18 August 2017

21

Statement of Financial Position

22

)

As at As at As at As at 30 April 2017 30 April 2016 30 April 2017 30 April 2016

HSBC Sterling

Liquidity Fund HSBC Sterling Liquidity Fund



Note Stg£ Stg£ US$ US$ Assets 0 Transferable securities 0 5,230,552,483 5,694,102,495 19,887,022,578 19,697,972,915Deposits with credit institutions 0 1,668,800,000 1,261,800,000 6,042,000,000 2,111,000,000Financial assets at fair value through profit or loss 2(c),8,9 6,899,352,483 6,955,902,495 25,929,022,578 21,808,972,915Cash and cash equivalents 3 703,594 1,347,296 874,721 7,729,329Accrued interest income 1,653,504 2,999,130 15,815,255 13,513,999Total assets 0 6,901,709,581 6,960,248,921 25,945,712,554 21,830,216,243 0 Liabilities 0 Due to broker 0 – – (34,896,925) –Accrued management fees 7 (801,118) (1,055,232) (2,263,571) (2,770,248)Distributions payable 2(e) (1,175,891) (2,340,494) (20,308,582) (8,862,960)Total liabilities 0 (1,977,009) (3,395,726) (57,469,078) (11,633,208) 0 Net assets attributable to holders of redeemable pa rticipating shares 0 6,899,732,572 6,956,853,195 25,888,243,476 21,818,583,035

The accompanying notes form an integral part of the Financial Statements.

23

As at

30 April 2017As at

30 April 2016As at

30 April 2017As at

30 April 2016





Note Stg£ Stg£ US$ US$Redeemable participating shares in issue

- A Shares 4 1,657,159,777 4,475,958,063 5,895,555,408 11,901,604,603- B Shares 4 1,843,340 1,582,295 74,865,856 92,607,183- C Shares 4 98,519,287 125,223,164 227,802,174 370,163,241- D Shares 4 101,515,061 102,102,172 86,251,883 17,102,199- E Shares 4 407,427 – 173,476,334 –- F Shares 4 537,587,856 429,515,557 3,534,744,568 1,042,796,550- G Shares 4 514,052,646 161,766,631 860,114,508 636,438,668- H Shares 4 3,266,058,631 1,218,309,330 9,433,192,130 2,832,420,827- I Shares 4 – – 28,836 160,568,382

- K Shares 4 93,882,373 163,673,180 1,277 1,277- L Shares 4 168,324,323 58,357,295 533,336,124 264,792,100- Y Shares 4 105,042,352 – 381,422,159 292,427,929- Z Shares 4 278,479,665 134,238,870 4,613,421,126 4,120,888,338

Net asset value per redeemable participating share

- A Shares 12 Stg£1.00 Stg£1.00 US$1.00 US$1.00- B Shares 12 Stg£1.00 Stg£1.00 US$1.00 US$1.00- C Shares 12 Stg£1.40 Stg£1.39 US$1.23 US$1.22- D Shares 12 Stg£1.36 Stg£1.35 US$1.18 US$1.18- E Shares 12 Stg£1.00 – US$1.00 –- F Shares 12 Stg£1.00 Stg£1.00 US$1.00 US$1.00- G Shares 12 Stg£1.00 Stg£1.00 US$1.00 US$1.00- H Shares 12 Stg£1.00 Stg£1.00 US$1.00 US$1.00- I Shares 12 – – US$1.01 US$1.00

- K Shares 12 Stg£1.01 Stg£1.00 US$1.01 US$1.00- L Shares 12 Stg£1.01 Stg£1.00 US$1.01 US$1.00- Y Shares 12 Stg£1.00 – US$1.00 US$1.00- Z Shares 12 Stg£1.00 Stg£1.00 US$1.00 US$1.00


24

As at As at As at As at 30 April 2017 30 April 2016 30 April 2017 30 April 2016

HSBC Euro

Liquidity Fund HSBC Euro

Liquidity Fund

HSBC Canadian Dollar Liquidity

Fund


Fund Note € € CAD$ CAD$ Assets 0 Transferable securities 0 3,827,299,629 2,569,292,962 143,403,854 199,269,893Deposits with credit institutions 0 1,648,495,000 799,471,000 26,700,000 47,900,000Financial assets at fair value through profit or loss 2(c),8,9 5,475,794,629 3,368,763,962 170,103,854 247,169,893Cash and cash equivalents 3 55,653 54,015 53,467 107,897Accrued interest income 3,924,711 1,638,527 40,957 240,087Due from brokers 69,078,573 77,729,769 – –Total assets 0 5,548,853,566 3,448,186,273 170,198,278 247,517,877 0 Liabilities 0 Due to broker 0 (34,017,785) (5,001,292) – –Accrued management fees 7 (426,444) (185,994) (14,332) (23,148)Distributions payable 2(e) – – (69,120) (99,749)Total liabilities 0 (34,444,229) (5,187,286) (83,452) (122,897) 0 Net assets attributable to holders of redeemable pa rticipating shares 0 5,514,409,337 3,442,998,987 170,114,826 247,394,980


25

As at

30 April 2017As at

30 April 2016As at

30 April 2017As at

30 April 2016

HSBC Euro

Liquidity FundHSBC Euro

Liquidity Fund


Fund


Fund Note € € CAD$ CAD$Redeemable participating shares in issue

- A Shares 4 1,808,192,952 2,380,407,261 27,696,719 98,595,465- B Shares 4 986,904 2,266,107 – –- C Shares 4 78,422,797 263,128,577 – –- D Shares 4 8,215,433 8,288,780 – –- F Shares 4 229,827,934 13,364,524 35,961,035 35,802,842- G Shares 4 558,655,475 101,525,200 2,136,411 –- H Shares 4 2,551,563,277 318,551,156 55,198,916 53,723,013- L Shares 4 247,784,595 144,443,294 6,885,106 9,670,628- Z Shares 4 11,703,569 146,214,296 42,181,181 49,576,475

Net asset value per redeemable participating share

- A Shares 12 €1.00 €1.00 CAD$1.00 CAD$1.00- B Shares 12 €1.00 €1.00 – –- C Shares 12 €1.24 €1.24 – –- D Shares 12 €1.21 €1.22 – –- F Shares 12 €1.00 €1.00 CAD$1.00 CAD$1.00- G Shares 12 €1.00 €1.00 CAD$1.00 –- H Shares 12 €1.00 €1.00 CAD$1.00 CAD$1.00- L Shares 12 €1.00 €1.00 CAD$1.01 CAD$1.00- Z Shares 12 €1.00 €1.00 CAD$1.00 CAD$1.00


Statement of Comprehensive Income

27

n

Financial

Year endedFinancial

Year ended Financial

Year endedFinancial

Year ended 30 April 2017 30 April 2016 30 April 2017 30 April 2016





Note Stg£ Stg£ US$ US$ Income Interest income 2(d),5 31,182,751 35,304,729 198,796,704 87,388,220 Negative yield expense 2(j), 4 – – – – Total income 0 31,182,751 35,304,729 198,796,704 87,388,220 0 Operating expenses 0 Management fees 2(i),7 (10,602,639) (11,636,285) (28,806,558) (32,715,998) Total operating expenses 0 (10,602,639) (11,636,285) (28,806,558) (32,715,998) 0 Finance costs 0 Distribution to holders of redeemable participating shares paid 0 (17,887,837) (19,621,440) (143,322,709) (44,518,687) Distribution to holders of redeemable participating shares payable 0 (1,175,891) (2,340,494) (20,308,582) (8,862,960) Total finance costs 0 (19,063,728) (21,961,934) (163,631,291) (53,381,647) 0 Changes in net assets attributable to holders of re deemable participating shares 0 1,516,384 1,706,510 6,358,855 1,290,575

There are no recognised gains or losses for the financial year other than those set out in the above Statement of Comprehensive Income. All activities relate to continuing operations. The accompanying notes form an integral part of the Financial Statements.

28

Financial


Year endedFinancial

Year endedFinancial


HSBC Euro

Liquidity Fund HSBC Euro

Liquidity Fund


Fund


Fund Note € € CAD$ CAD$ Income Interest income 2(d),5 456,110 600,805 1,239,077 1,395,427 Negative yield expense 2(j),4 (15,095,479) (3,701,077) – – Total income 0 (14,639,369) (3,100,272) 1,239,077 1,395,427 0 Operating expenses 0 Management fees 2(i),7 (3,402,645) (1,590,247) (220,559) (276,959) Total operating expenses 0 (3,402,645) (1,590,247) (220,559) (276,959) 0 Finance costs 0 Distribution to holders of redeemable participating shares paid 0 – (1,580) (916,020) (989,283) Distribution to holders of redeemable participating shares payable 0 – – (69,120) (99,749) Total finance costs 0 – (1,580) (985,140) (1,089,032) 0 Changes in net assets attributable to holders of redeemable partic ipating shares 0 (18,042,014) (4,692,099) 33,378 29,436

There are no recognised gains or losses for the financial year other than those set out in the above Statement of Comprehensive Income. All activities relate to continuing operations. The accompanying notes form an integral part of the Financial Statements.

29

Financial


Year ended 30 April 2017 30 April 2016 Combined 1 Combined 1

Note Stg£ Stg£Income Interest income 2(d),5 186,523,283 94,615,247Negative yield expense 2(j),4 (12,775,349) (2,730,455)Total income 0 173,747,934 91,884,792 0 Operating expenses 0 Management fees 2(i),7 (35,960,062) (34,723,688)Total operating expenses 0 (35,960,062) (34,723,688) 0 Finance costs 0 Distribution to holders of redeemable participating shares paid 0 (129,615,836) (49,752,637)Distribution to holders of redeemable participating shares payable 0 (16,971,856) (8,289,696)Total finance costs 0 (146,587,692) (58,042,333) 0 Changes in net assets attributable to holders of re deemable participating shares 0 (8,799,820) (881,229)

Note: 1. The combined figures use the average exchange rates for the financial year (see Note 10 for rates). There are no recognised gains or losses for the financial year other than those set out in the above Statement of Comprehensive Income. All activities relate to continuing operations. The accompanying notes form an integral part of the Financial Statements.

Statement of Changes in Net Assets Attributable to Holders of

Redeemable Participating Shares

30

Financial

Year endedFinancia l

Year endedFinancial

Year endedFinancial






Note Stg£ Stg£ US$ US$ 0 Change in net assets attributable to holders of red eemable participating shares 0 1,516,384 1,706,510 6,358,855 1,290,575 0 Capital transactions Issue of redeemable participating shares 2(g),4 48,239,833,323 41,041,388,761 130,369,162,314 87,807,130,800Redemption of redeemable participating shares 2(g),4 (48,310,158,530) (40,630,951,497) (126,418,442,761) (87,378,967,259)Dividends reinvested 2(e),4 11,688,200 14,216,756 112,582,033 46,889,272Net (decrease)/increase from capital transactions 0 (58,637,007) 424,654,020 4,063,301,586 475,052,813 0 Net assets attributable to holders of redeemable pa rticipating shares at the start of the financial year 6,956,853,195 6,530,492,665 21,818,583,035 21,342,239,647 0 0 Net assets attributable to holders of redeemable pa rticipating shares at the end of the financial year 6,899,732,572 6,956,853,195 25,888,243,476 21,818,583,035


31

Financial

Year endedFinancial

Year endedFinancial

Year endedFinancial


HSBC Euro


Liquidity Fund


Fund


Fund Note € € CAD$ CAD$ 0 Change in net assets attributable to holders of red eemable participating shares 0 (18,042,014) (4,692,099) 33,378 29,436 0 Capital transactions Issue of redeemable participating shares 2(g),4 30,768,467,149 24,600,505,615 253,525,511 355,684,299Redemption of redeemable participating shares 2(g),4 (28,679,014,785) (23,556,937,190) (331,701,837) (303,513,784)Dividends reinvested 2(e),4 – 5,313 862,794 1,148,473Net increase/(decrease) from capital transactions 0 2,089,452,364 1,043,573,738 (77,313,532) 53,318,988 0 Net assets attributable to holders of redeemable participating shares at the start of the financial year 3,442,998,987 2,404,117,348 247,394,980 194,046,556 0 0 Net assets attributable to holders of redeemable pa rticipating shares at the end of the financial year 5,514,409,337 3,442,998,987 170,114,826 247,394,980


32

led

Financial

Year endedFinancial

Year ended 30 April 2017 30 April 2016 Combined 1 Combined 1

Note Stg£ Stg£ 0 Change in net assets attributable to holders of red eemable participating shares 0 (8,799,820) (881,229) 0 Capital transactions Issue of redeemable participating shares 2(g),4 175,568,190,459 117,810,053,269Redemption of redeemable participating shares 2(g),4 (170,851,253,991) (116,318,355,179)Dividends reinvested 2(e),4 99,536,420 46,009,025Net increase from capital transactions 0 4,816,472,888 1,537,707,115 0 Net assets attributable to holders of redeemable participating shares at the start of the financial year 24,689,876,986 22,276,694,701 0 Currency adjustment 2(b) 2,179,348,708 876,356,399 0 Net assets attributable to holders of redeemable pa rticipating shares at the end of the financial year 31,676,898,762 24,689,876,986

Note: 1. The combined figures use the average exchange rates for the financial year (see Note 10 for rates). The accompanying notes form an integral part of the Financial Statements.

Statement of Cash Flows

33

FinancialYear ended

FinancialYear ended

FinancialYear ended

FinancialYear ended

30 April 2017 30 April 2016 30 April 2017 30 April 2016

HSBC Sterling

Liquidity FundHSBC Sterling Liquidity Fund



Stg£ Stg£ US$ US$Cash flows from operating activities 0 Purchase of financial assets 0 (423,923,106,462) (369,765,979,098) (1,306,054,269,402) (1,195,666,026,817)Proceeds from sale of financial instruments 0 423,993,262,546 369,355,738,738 1,301,997,138,674 1,195,200,630,079Interest income received 0 18,922,305 20,081,216 168,473,438 74,720,226Management fees paid 0 (10,856,753) (11,684,952) (29,313,235) (32,262,521)Net cash inflow/(outflow) from operating activities 0 78,221,636 (401,844,096) (3,917,970,525) (422,939,033) Cash flows from financing activities 0 Proceeds from redeemable participating shares issued 0 48,239,833,323 41,041,388,761 130,369,162,314 87,807,130,800Cost of redeemable participating shares redeemed 0 (48,310,158,530) (40,630,951,497) (126,418,442,761) (87,378,967,259)Distributions paid 0 (8,540,131) (7,261,142) (39,603,636) 789,107Net cash (outflow)/inflow from financing activities 0 (78,865,338) 403,176,122 3,911,115,917 428,952,648 0 Net (decrease)/increase in cash and cash equivalent s 0 (643,702) 1,332,026 (6,854,608) 6,013,615 0 Cash and cash equivalents at the beginning of the financial year 0 1,347,296 15,270 7,729,329 1,715,714 0 Effects of exchange rate changes on the balance of cash held in foreign currencies and other foreign currency transactions 0 – – – – 0 Cash and cash equivalents at the end of the financi al year 0 703,594 1,347,296 874,721 7,729,329


34

FinancialYear ended

FinancialYear ended

FinancialYear ended

FinancialYear ended

30 April 2017 30 April 2016 30 April 2017 30 April 2016

HSBC Euro


Liquidity Fund


Fund


Fund € € CAD$ CAD$Cash flows from operating activities 0 Purchase of financial assets 0 (358,572,650,168) (220,038,150,707) (10,609,751,095) (8,970,991,503)Proceeds from sale of financial instruments 0 356,485,921,315 218,992,294,627 10,687,567,699 8,918,011,518Interest income received 0 440,322 3,834,738 687,642 1,084,726Management fees paid 0 (3,162,195) (1,509,039) (229,375) (278,060)Net cash (outflow)/inflow from operating activities 0 (2,089,450,726) (1,043,530,381) 78,274,871 (52,173,319) Cash flows from financing activities 0 Proceeds from redeemable participating shares issued 0 30,768,467,149 24,600,505,615 253,525,511 355,684,299Cost of redeemable participating shares redeemed 0 (28,679,014,785) (23,556,937,190) (331,701,837) (303,513,784)Distributions paid 0 – (5) (152,975) 52,049Net cash inflow/(outflow) from financing activities 0 2,089,452,364 1,043,568,420 (78,329,301) 52,222,564 0 Net increase/(decrease) in cash and cash equivalent s 0 1,638 38,039 (54,430) 49,245 0 Cash and cash equivalents at the beginning of the financial year 0 54,015 15,976 107,897 58,652 0 Effects of exchange rate changes on the balance of cash held in foreign currencies and other foreign currency transactions 0 – – – – 0 Cash and cash equivalents at the end of the financi al year 0 55,653 54,015 53,467 107,897


35

FinancialYear ended

FinancialYear ended

30 April 2017 30 April 2016 Combined 1 Combined 1

Stg£ Stg£Cash flows from operating activities 0 Purchase of financial assets 0 (1,746,857,047,200) (1,332,410,299,373)Proceeds from sale of financial instruments 0 1,742,059,481,617 1,330,891,920,303Interest income received 0 150,400,390 73,189,137Management fees paid 0 (36,408,947) (34,411,191)Net cash (outflow) from operating activities 0 (4,683,574,140) (1,479,601,124) Cash flows from financing activities 0 Proceeds from redeemable participating shares issued 0 175,568,190,459 117,810,053,269Cost of redeemable participating shares redeemed 0 (170,851,253,991) (116,318,355,179)Distributions paid 0 (39,354,440) (6,709,611)Net cash inflow from financing activities 0 4,677,582,028 1,484,988,479 0 Net (decrease)/increase in cash and cash equivalents 0 (5,992,112) 5,387,355 0 Cash and cash equivalents at the beginning of the financial year 0 6,729,007 1,175,733 0 Effects of exchange rate changes on the balance of cash held in foreign currencies and other foreign currency transactions 0 720,560 165,919 0 Cash and cash equivalents at the end of the financi al year 0 1,457,455 6,729,007

Note: 1. The combined figures use the average exchange rates for the financial year (see Note 10 for rates). The accompanying notes form an integral part of the Financial Statements.

Notes to the Financial Statements

36

1. General Information

HSBC Global Liquidity Funds plc (the “Company”) was incorporated in the Republic of Ireland as a public limited company on 13 May 1999 under the Companies Act 2014.

The Company is an open-ended investment company with variable capital which has been authorised by the Central Bank of Ireland under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations.

The Company is organised in the form of an umbrella fund with segregated liability between sub-funds. Each sub-fund has a distinct portfolio of investments. There are currently eleven approved sub-funds, four of which were active at the financial year end.

The Directors suspended applications for shares in HSBC Euro Government Liquidity Fund with effect from 15 June 2012 by way of a resolution and all of the shares were redeemed on 15 July 2012. This sub-fund has not yet been formally liquidated nor has an application for termination of approval been made to the Central Bank.

The Company has eighteen main classes of shares, thirteen of which are active as at 30 April 2017. All active share classes with the exception of share classes Y and Z are listed on the Irish Stock Exchange.

The Company’s investment objective is to seek to provide investors with security of capital together with a competitive investment return and liquidity by investing in a diversified portfolio of short term securities, instruments and obligations which the Global Service Provider (HSBC Global Asset Management (UK) Limited) considers to be of high quality.

2. Significant Accounting Policies (for pagination)

The financial statements of the Fund are prepared in accordance with International Financial Reporting Standards as adopted by the EU (“IFRS”). The principal accounting policies adopted by the Company and applied consistently to all periods presented in the Financial Statements are as follows:

(a) Basis of accounting

Fair value accounting has been applied to derivatives and also to other financial assets designated at fair value through profit or loss, as permitted under company law. All other assets and liabilities are stated at cost or amortised cost as appropriate or redemption amount (redeemable shares).

Standards and amendments to existing standards effective 1 May 2016

There are no standards, interpretations or amendments to existing standards that are effective for the first time for the financial year beginning 1 May 2016 had a material impact on the Company.

New standards, amendments and interpretations effective after 1 May 2016 that have not been early adopted.

There were no new standards adopted in the current period. The following standards and amendments to existing standards that may be relevant to investments funds, have been issued to date and are not yet effective for the financial statements of the Company for the financial year ended 30 April 2017 and have not been applied or early adopted in preparing these financial statements.

IFRS 9, Financial Instruments

IFRS 9, published in July 2014 will replace the existing guidance in IAS 39. It includes revised guidance on the classification and measurement of financial instruments, including a new expected credit loss model for calculating impairment of financial assets, and the new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from IAS 39. IFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018. Based on the initial assessment, this standard is not expected to have a material impact on the Company.

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(b) Foreign currency translation

The functional and presentational currency of the Company is British Pound (Stg£). The assets and liabilities at the date of the Financial Statements of the HSBC US Dollar Liquidity Fund and the HSBC Canadian Dollar Liquidity Fund are denominated in US Dollar (US$) and Canadian Dollar (CAD$) respectively and in Euro (€) for the HSBC Euro Liquidity Fund. For the purpose of foreign exchange rate determination these sub-funds are considered to be foreign operations of the Company. Monetary assets and liabilities denominated in other currencies are translated at the exchange rates prevailing at the Statement of Financial Position date. Non monetary assets and liabilities that are measured at fair value are translated at the exchange rates prevailing at the dates the fair values are determined. Transactions in other currencies during the financial year are translated at the rates ruling at the date of the transaction. The resulting profits or losses are dealt with in the Statement of Comprehensive Income. The Statement of Cash Flows is prepared on a similar basis.

For the purpose of combining the Financial Statements of the HSBC Sterling Liquidity Fund, HSBC US Dollar Liquidity Fund, HSBC Euro Liquidity Fund and HSBC Canadian Dollar Liquidity Fund of the Company, amounts in the Statement of Financial Position have been translated into British Pounds at the US Dollar exchange rate of 1.292850 ruling at 30 April 2017 (30 April 2016: 1.463700), the Euro exchange rate of 1.184200 ruling at 30 April 2017 (30 April 2016: 1.279100) and the Canadian Dollar exchange rate of 1.765700 ruling at 30 April 2017 (30 April 2016: 1.834850). The amounts in the Statement of Comprehensive Income as well as proceeds from the subscription and redemption of shares in the Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares have been translated at the average US Dollar exchange rate of 1.292873 (30 April 2016: 1.502525) for the HSBC US Dollar Liquidity Fund, the average Euro exchange rate of 1.183376 (30 April 2016: 1.355480) for the HSBC Euro Liquidity Fund and the average Canadian Dollar exchange rate of 1.703077 (30 April 2016: 1.975416) for the HSBC Canadian Dollar Liquidity Fund. The method of translation has no effect on the Net Asset Value per share attributable to the individual sub-funds.

A foreign currency adjustment arises in the Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares from re-translation of the opening net assets at the financial year end exchange rate. The method of translation has no effect on the value of the net assets allocated to the individual sub-funds. This foreign currency adjustment was a gain of Stg£2,179,348,708 for the financial year ended 30 April 2017 (30 April 2016: gain of Stg£876,356,399).

(c) Financial assets and liabilities at fair value through profit or loss

(i) Classification and Recognition

IAS 39 (revised) sets out the requirements for recognition and measurement of all financial assets and financial liabilities including derivative instruments. The Company has classified all financial instruments as financial assets or financial liabilities at fair value through profit or loss in accordance with IAS 39 on the basis that the assets are managed on a fair value basis in accordance with a documented investment strategy and information about the group of assets is provided internally on that basis.

The category of financial assets and financial liabilities at fair value through profit or loss comprises:

� Financial instruments designated at fair value through profit or loss. These include Certificates of Deposit, Commercial Papers, Corporate Bonds, Floating Rate Notes, Government Bonds, Treasury Bills, Treasury Notes/Bonds, Call Deposits and Time Deposits.

� Financial assets that are categorised as loans and receivables include cash at bank which are generally short term in nature. This category also includes securities sold receivable, brokers and accounts receivable.

� Financial liabilities that are not at fair value through profit or loss include securities purchased payable, redemptions payable, distributions payable, bank overdrafts, accounts payable and financial liabilities arising on redeemable shares.

The Company recognises financial assets and financial liabilities on the date it becomes a party to the contractual provisions of the instrument, and all significant rights and access to the benefits from the assets, and the exposure to the risks inherent in those benefits, are transferred to the Company.

A regular way purchase or sale of financial assets or financial liabilities is recognised using trade date accounting. From this date, any gains and losses, arising from changes in fair value of the financial assets or financial liabilities, classified as at fair value through profit or loss are recorded with the realised gains/losses calculated using a First-In, First Out (“FIFO”) method.

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(ii) Measurement

Financial instruments are measured initially at fair value (transaction price) plus, in case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction costs on financial assets and financial liabilities at fair value through profit or loss are expensed immediately.

Subsequent to initial recognition, all instruments classified at fair value through profit or loss are measured at fair value with changes in their fair value recognised in profit or loss in the Statement of Comprehensive Income.

Financial liabilities, arising from the redeemable shares issued by the Company, are carried at the redemption amount representing the shareholders’ right to a residual interest in the Company’s assets.

(iii) Estimation of fair value after initial recogn ition

The estimation of fair value, after initial recognition, is determined as follows:

The fair value of financial instruments is based on their quoted market prices, in an active market, at the Statement of Financial Position date without any deduction for estimated future selling costs. Financial assets and liabilities are priced at current mid prices, or quoted market prices at the close of trading on the reported date.

If a quoted market price in an active market is not available on a recognised stock exchange or from a broker / dealer for non-exchange-traded financial instruments, the fair value of the instrument is estimated using valuation techniques, including use of recent arm’s length market transactions, reference to the current fair value of another instrument that is substantially the same, discounted cash flow techniques, option pricing models or any other valuation technique that provides a reliable estimate of prices obtained in actual market transactions.

Where discounted cash flow techniques are used, estimated future cash flows are based on management’s best estimates and the discount rate used is a market rate at the Statement of Financial Position date applicable for an instrument with similar terms and conditions. Where other pricing models are used, inputs are based on market data at the Statement of Financial Position date.

(iv) Transfers between levels of the fair value hie rarchy

Transfers between levels of the fair value hierarchy are deemed to have occurred at the beginning of the reporting financial year.

(v) Impairment of assets not at fair value

Financial assets that are stated at cost or amortised cost are reviewed at each Statement of Financial Position date to determine whether there is objective evidence of impairment. If any such indication exists, an impairment loss is recognised in profit or loss in the Statement of Comprehensive Income as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate.

(vi) Derecognition

A financial asset is derecognised when the contractual right to receive cash flows from the financial asset has expired or the Company has transferred substantially all risks and rewards of ownership. A financial liability is derecognised when the obligation specified in the contract has been discharged, cancelled or expired.

(vii) Offsetting

Financial assets and financial liabilities are offset and the net amount reported in the Statement of Financial Position where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the assets and settle the liability simultaneously.

(viii) Specific instruments

Cash at bank & deposits with credit institutions

� Cash and cash equivalents at bank comprises cash in hand and deposits repayable on demand with any qualifying financial institution. These deposits are considered repayable on demand if they can be withdrawn at any time without notice and without penalty or if a maturity or financial period of notice of not more than 24 hours has been agreed.

� Call Deposits and Time Deposits are included in financial assets at fair value through profit or loss on the Statement of Financial Position.

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� Reverse repurchase agreements

When the Company purchases a financial asset and simultaneously enters into an agreement to resell the same or substantially similar asset at a fixed price on a future date (‘reverse repo’), the arrangement is accounted for as a money market instrument and is recognised in the Statement of Financial Position as financial assets at fair value through profit or loss and the underlying asset is not recognised in the Company’s Financial Statements.

(d) Interest income

Interest income and expense is recognised in the Statement of Comprehensive Income as it accrues, using the original effective interest rate of the instrument calculated at the acquisition or origination date.

Interest income includes the amortisation of any discount or premium, or other differences between the initial carrying amount of an interest-bearing instrument and its amount at maturity calculated on an effective interest rate basis.

Interest income includes such income arising on debt instruments at fair value through profit or loss, accrued using the original effective interest rate and recorded in the interest income line in the Statement of Comprehensive Income.

(e) Distributions

It is the policy of the Company to declare daily dividends and distribute them on a monthly basis, out of the accumulated revenue (consisting of all revenue accrued including interest and dividends) less expenses of a sub-fund on income shares, whilst the policy on accumulation shares is not to pay dividends, but to return the net income attributable to the accumulation shares within the relevant sub-fund. The following details the active share classes at financial year end which are income shares and accumulation shares.

Income Shares Accumulation shares HSBC Sterling Liquidity Fund A Shares C Shares

B Shares D Shares E Shares K Shares F Shares L Shares G Shares

H Shares Y Shares Z Shares HSBC US Dollar Liquidity Fund A Shares C Shares

B Shares D Shares E Shares I Shares F Shares K Shares G Shares L Shares H Shares Y Shares Z Shares HSBC Euro Liquidity Fund A Shares C Shares

B Shares D Shares F Shares L Shares G Shares H Shares Z Shares HSBC Canadian Dollar Liquidity Fund A Shares L Shares

F Shares G Shares

H Shares Z Shares

Holders of redeemable participating shares have the option to have distributions re-invested in a sub-fund or to receive a cash distribution. Cash distributions will be paid by electronic funds transfer.

(f) Cash flow statement

The Company has prepared a Statement of Cash Flows using the direct method, whereby major classes of cash receipts and payments related to operating activities are disclosed.

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(g) Redeemable shares

The Company has issued thirteen classes of redeemable shares. All redeemable shares issued by the Company provide the investors with the right of redemption for cash at the value proportionate to the investor’s share in the Company’s net assets at the redemption date. Such instruments give rise to a financial liability for the present value of the redemption amount.

Redeemable shares are issued and redeemed at the holder’s option at prices based on the sub-funds’ net asset value per share at the time of issue or redemption. The sub-fund’s net asset value per share is calculated by dividing the net assets attributable to the holders of each class of redeemable shares with the total number of outstanding redeemable shares for each respective class. In accordance with the provisions of the Company’s regulations, investment positions are valued based on the last traded market price for the purpose of determining the net asset value per share for subscriptions and redemptions.

Instructions for redemptions received by the Administrator up to the dealing deadline on a dealing day will be dealt with on that business day. Instructions of redemptions received after the dealing deadline will be dealt with on the following dealing day. Redemption requests will not be processed until the original application form and supporting documents have been received and cleared. The Company reserves the right to determine the redemption price of shares in the sub-funds based on the Net Asset Value per Share at the valuation point on the relevant dealing day if the Company in its absolute discretion determines that a Shareholder is purchasing or selling shares in a sub-fund in order to gain an unfair advantage. A Redemption Fee of up to 3% of the Net Asset Value per Share may be charged at the discretion of the Directors. Such a Redemption Fee would only be charged in exceptional circumstances, such as during periods of severe market stress, when the cost of liquidating assets to meet redemption requests may result in material losses to the Company, to the disadvantage of shareholders who remain invested in the Company.

The Company reserves the right to charge a redemption fee of 0.10% in respect of the sub-funds if the Company in its absolute discretion determines that the shareholder is purchasing or selling shares in a sub-fund on considerations of a short term nature or for trading or arbitrage purposes.

(h) Key estimates and assumptions

The preparation of the Financial Statements requires management to make judgments, estimates and assumptions that affect the application of policies and the reported amount of assets and liabilities, income and expense. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the financial year in which the estimates are revised and in any future periods affected. Information about significant areas of estimates, uncertainty and critical judgements in applying accounting policies that have the most significant effect on amounts recognised in the Financial Statements include:

Fair value of financial instruments: As indicated many of the Company’s financial instruments are measured at fair value on the Statement of Financial Position and it is usually possible to determine their fair values within a reasonable range of estimates. Fair value estimates are made at a specific point in time, based on market conditions and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgement (e.g. interest rates, volatility, estimated cash flows etc.) and therefore, cannot be determined with precision.

(i) Expenses

In accordance with the Prospectus, management fees are charged to the profit or loss in the Statement of Comprehensive Income on an accruals basis.

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(j) Due from/to Brokers

Amounts due from/to brokers represent payables for securities purchased and receivables for securities sold that have been contracted for but not yet delivered by the financial year end. These amounts are recognised initially at fair value and subsequently measured at amortised cost, less provision for impairment for amounts due from brokers. A provision for impairment of amounts due from brokers is established when there is objective evidence that the Company will not be able to collect all amounts due from the relevant broker. Significant financial difficulties of the broker, probability that the broker will enter bankruptcy or financial reorganisation, and default in payments are considered indicators that the amount due from brokers is impaired. Once a financial asset or a group of similar financial assets has been written down as a result of an impairment loss, interest income is recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. There was no impairment loss in the current or prior financial year.

(k) Transaction Costs

Transaction costs are incurred on the acquisition or disposal of financial assets or liabilities at fair value through profit or loss. They include fees and commissions paid to agents, advisors, brokers and dealers. Transaction costs when incurred are expensed immediately and are included within net gain/loss on financial assets and liabilities at fair value through profit or loss in the Statement of Comprehensive Income.

(l) Unconsolidated structured entities

Pursuant to IFRS 12, “Disclosure of interests in other entities”, the Company has concluded that the non-subsidiary unconsolidated structured entities, namely Asset Backed Securities and Mortgage Related Structured Products in which it invests, but that it does not consolidate, meet the definition of structured entities because:

� the voting rights in the structured entities are not dominant rights in deciding who controls them because they relate to administrative tasks only;

� each structured entity’s activities are restricted by its prospectus; and

� the structured entity’s have narrow and well-defined objectives to provide investment opportunities to investors.

(j) Negative yield expense

Negative yield expense relating to interest from a negative effective interest rate on assets held is accreted daily and is recognised in profit or loss in the Statement of Comprehensive Income and Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares over the life of the underlying instrument.

3. Cash and Bank Overdraft

All cash balances and bank overdrafts at financial year end are held at the Depositary, BNY Mellon Trust Company (Ireland) Limited.

4. Share Capital

Authorised

The authorised share capital of the Company is 500 billion shares of no par value initially designated as unclassified shares. Shares may only be issued as fully paid and shall have no par value. The Directors may issue any of the shares in the capital of the Company as shares in a particular sub-fund. The Company is an “umbrella fund” within the meaning of the Regulations and accordingly on or before the issue of any shares the Directors shall determine the currency and sub-fund in relation to which such shares shall be designated. Shares in a sub-fund may be divided into one or more classes which may be designated in the same currency. The Directors may from time to time issue fractions of shares.

The Company is subject to a minimum capital requirement of €300,000.

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The classes of shares currently available are as follows:

HSBC Sterling Liquidity Fund A Shares* G Shares* P Shares B Shares* H Shares* S Shares

C Shares* I Shares T Shares D Shares* J Shares X Shares E Shares* K Shares* Y Shares* F Shares* L Shares* Z Shares* HSBC US Dollar Liquidity Fund A Shares* G Shares* P Shares

B Shares* H Shares* S Shares C Shares* I Shares* T Shares D Shares* J Shares X Shares E Shares* K Shares* Y Shares* F Shares* L Shares* Z Shares* HSBC Euro Liquidity Fund A Shares* G Shares* P Shares B Shares* H Shares* S Shares C Shares* I Shares T Shares D Shares* J Shares X Shares E Shares K Shares Y Shares

F Shares* L Shares* Z Shares*

HSBC Canadian Dollar Liquidity Fund A Shares* G Shares* P Shares B Shares H Shares* S Shares C Shares I Shares T Shares

D Shares J Shares X Shares E Shares K Shares Y Shares F Shares* L Shares* Z Shares*

*Share class active as at 30 April 2017.

A Shares, B Shares, E Shares, F Shares, G Shares, H Shares, Y Shares and Z Shares carry a right to the payment of dividends, which shall be declared daily and distributed monthly. The C Shares, D Shares, I Shares, K Shares and L Shares are accumulation shares and therefore carry no right to any dividend.

There will be no fees or expenses charged to the assets attributable to the Z Shares. This is because holders of the Z Shares will be subject to fees charged separately by virtue of their existing relationship with members of the HSBC Group so there will be no payment made to the Global Service Provider in respect of the Z Shares. The fees and expenses of the Administrator and Depositary together with all other fees and operating expenses applicable to the Z Shares will be borne by the Global Service Provider, or its affiliates, and not by the holders of the Z Shares or other shareholders in the Company.

Market conditions, including but not limited to a reduction in interest rates may have a material impact on the yield payable on a class of shares in a sub-fund. Either the yield will be so low that following the deduction of the charges and expenses applicable to the shares, as outlined in Part One of the Prospectus, it will be a negative number (Negative Net Yield) or the yield will already be a negative number before the charges and expenses have been deducted (Negative Gross Yield). Such market conditions, together with any actions taken by financial institutions in response thereto (such as, for example, by way of reducing interest rates and therefore income payable on investments of a sub-fund), are outside the control of the Directors. During the financial year ended 30 April 2017, HSBC Euro Liquidity Fund incurred negative yields of €15,095,479 (30 April 2016: €3,701,077).

A negative net yield and/or negative gross yield environment creates potential issues for any sub-fund and which seeks to maintain the distributing classes of shares in the sub-fund at a constant Net Asset Value per Share in that the yield of the sub-fund may be unable to pay a distribution or cover charges or expenses or other liabilities of the sub-fund, such as the fees of the Global Service Provider, the Investment Management fee or other operating costs.

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Each shareholder of shares in a share class of a sub-fund which seeks to maintain a constant Net Asset Value per Share is deemed to have provided a Standing Request to the Company to automatically redeem and cancel such number of their shares on any Dealing Day, which represent the shareholder’s pro-rata share of any negative yield in respect of that sub-fund or class of shares. Accordingly, the Company may automatically redeem and cancel such shares where a negative yield applies to such shares without further consent from the shareholder and, when any such repurchase is effected, the Company will use any such redemption proceeds to discharge the shareholder’s pro-rata share of such negative yield. Accordingly, redemption proceeds in respect of the shares which are automatically redeemed and cancelled pursuant to a Standing Request will not be paid to the shareholders of the relevant sub-fund or class of shares, as applicable, and instead will be automatically retained by the relevant sub-fund to cover the Negative Yield of that sub-fund or class of shares (such as to discharge any liability, operating cost or fee attributable to the sub-fund or class of shares.

While the automatic redemption and cancellation of shares in these circumstances may enable the Company to maintain the relevant class of shares at a constant Net Asset Value per Share, the number of shares in issue in such class of shares and therefore the number of shares held by a shareholder in such class, will be decreased in line with the decrease in the assets caused by the negative yield applicable to such class of shares and the automatic redemption and cancellation of such shares. A shareholder will continue to suffer investment losses as a result of the automatic redemption and cancellation of shares where a negative yield exists and the shareholder may not get back the amount he or she invested in the class of shares.

Investors should also note that although the Directors will seek to stabilise the Net Asset Value per Share in a distributing class of shares, there can be no assurance that the Company will be able to attain this objective.

On 11 July 2016 (initial instruction 27 March 2015) and 19 December 2016, with regards to the HSBC Euro Liquidity Fund and HSBC Sterling Liquidity Fund respectively, HSBC Global Asset Management (UK) Limited, as delegated by the Board of Directors of HSBC Global Liquidity Funds plc, instructed BNY Mellon Fund Services (Ireland) Designated Activity Company to process share cancellations across all shareholders on all active share classes for each day where a negative yield is published, with effect from 30 April 2015 for the HSBC Euro Liquidity Fund and 19 December 2016 for the HSBC Sterling Liquidity Fund until further notice.

A daily published negative income factor is used to calculate the number of shares that requires cancellation on a shareholders account on a daily basis. The cancelled shares will be applied to the shareholder accounts on a T+0 basis for both the HSBC Euro Liquidity Fund and the HSBC Sterling Liquidity Fund. For the period 30 April 2015 to 12 August 2016, the cancelled shares in respect of HSBC Euro Liquidity Fund were applied to the shareholder accounts on a T+1 basis. During the financial year ended 30 April 2017, 16,709,021 shares (30 April 2016: 4,134,307 shares) were cancelled in respect of the HSBC Euro Liquidity Fund. There were positive income factors published during the financial year ended 30 April 2017 for the HSBC Sterling Liquidity Fund and therefore no share cancellations were processed.

Capital Management

The redeemable shares issued by each sub-fund provide an investor with the right to request redemption for cash at a value proportionate to the investor’s share in the net assets at each redemption date. The Company’s objectives in managing the redeemable shares are to ensure a stable base to maximise returns to all investors, and to manage liquidity risk arising from redemptions. The Company’s management of liquidity risk arising from redeemable shares is disclosed in Note 8(e).

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Participating Shares HSBC Sterling Liquidity Fund Financial year ended 30 April 2017

A Shares B Shares C Shares D Shares E Shares F Shares G Shares H Shares K Shares L Shares Y Shares Z Shares Total

At beginning of financial year 4,475,958,063 1,582,295 125,223,164 102,102,172 – 429,515,557 161,766,631 1,218,309,330 163,673,180 58,357,295 – 134,238,870 6,870,726,557Shares issued 25,215,139,624 1,801,037 359,775,484 2,108,538 4,700,418 2,677,958,781 4,597,708,938 12,919,636,380 204,200,239 1,252,326,802 258,237,774 596,443,992 48,090,038,007Shares redeemed (26,064,013,672) (1,541,435) (386,479,152) (2,695,649) (4,300,000) (2,574,304,290)(4,302,105,857)(12,537,576,642) (273,991,046)(1,142,359,774) (219,430,161) (640,782,430) (48,149,580,108)Switch between classes (1,975,872,952) – (209) – – 3,615,117 55,811,893 1,662,475,510 – – 66,163,191 187,807,532 82Dividends reinvested 5,948,714 1,443 – – 7,009 802,691 871,041 3,214,053 – – 71,548 771,701 11,688,200Shares at end of financial year 1,657,159,777 1,843,340 98,519,287 101,515,061 407,427 537,587,856 514,052,646 3,266,058,631 93,882,373 168,324,323 105,042,352 278,479,665 6,822,872,738

Stg£ Stg£ Stg£ Stg£ Stg£ Stg£ Stg£ Stg£ Stg£ Stg£ Stg£ Stg£ Total Stg£Subscriptions 25,215,139,624 1,801,037 502,232,638 2,858,741 4,700,418 2,677,958,781 4,597,708,938 12,919,636,380 205,100,000 1,258,015,000 258,237,774 596,443,992 48,239,833,323Redemptions (26,064,013,672) (1,541,435) (539,544,210) (3,654,807) (4,300,000) (2,574,304,290)(4,302,105,857)(12,537,576,642) (275,300,000)(1,147,605,026) (219,430,161) (640,782,430) (48,310,158,530)Switch between classes (1,975,872,952) – (291) – – 3,615,117 55,811,893 1,662,475,510 – – 66,163,191 187,807,532 –Dividends reinvested 5,948,714 1,443 – – 7,009 802,691 871,041 3,214,053 – – 71,548 771,701 11,688,200

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HSBC Sterling Liquidity Fund Financial year ended 30 April 2016

A Shares B Shares C Shares D Shares F Shares G Shares H Shares K Shares L Shares Z Shares TotalAt beginning of financial year 5,914,128,655 3,994,996 196,249,251 105,991,555 – – – – – 196,486,262 6,416,850,719Shares issued 35,275,634,406 1,001,981 820,834,394 1,729,465 796,805,000 355,710,558 2,214,697,862 168,378,007 606,847,341 477,776,153 40,719,415,167Shares redeemed (35,265,103,654) (3,419,857) (752,277,781) (5,618,848) (756,338,956) (468,601,237)(1,819,610,410) (166,288,080) (556,384,979) (540,717,852)(40,334,361,654)Switch between classes (1,461,090,836) – (139,582,700) – 388,755,612 274,510,360 822,534,947 161,583,253 7,894,933 – 54,605,569Dividends reinvested 12,389,492 5,175 – – 293,901 146,950 686,931 – – 694,307 14,216,756Shares at end of financial year 4,475,958,063 1,582,295 125,223,164 102,102,172 429,515,557 161,766,631 1,218,309,330 163,673,180 58,357,295 134,238,870 6,870,726,557

Stg£ Stg£ Stg£ Stg£ Stg£ Stg£ Stg£ Stg£ Stg£ Stg£ Total Stg£Subscriptions 35,275,634,406 1,001,981 1,141,346,352 2,341,449 796,805,000 355,710,558 2,214,697,862 168,600,000 607,475,000 477,776,153 41,041,388,761Redemptions (35,265,103,654) (3,419,857)(1,045,982,459) (7,608,734) (756,338,956) (468,601,237)(1,819,610,410) (166,600,000) (556,968,338) (540,717,852)(40,630,951,497)Switch between classes (1,461,090,836) – (194,188,269) – 388,755,612 274,510,360 822,534,947 161,583,253 7,894,933 – –Dividends reinvested 12,389,492 5,175 – – 293,901 146,950 686,931 – – 694,307 14,216,756

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HSBC US Dollar Liquidity Fund Financial year ended 30 April 2017

A Shares B Shares C Shares D Shares E Shares F Shares G Shares H Shares I Shares K Shares L Shares Y Shares Z Shares Total

At beginning of financial year 11,901,604,603 92,607,183 370,163,241 17,102,199 – 1,042,796,550 636,438,668 2,832,420,827 160,568,382 1,277 264,792,100 292,427,929 4,120,888,338 21,731,811,297Shares issued 46,199,121,741 83,929,967 1,172,919,474 95,624,584 218,775,013 17,454,613,269 5,394,686,249 39,345,876,139 107,157,980 – 3,603,751,438 630,014,001 15,760,849,939 130,067,319,794Shares redeemed (48,738,954,483) (101,972,047)(1,298,963,648) (26,474,900) (45,303,932)(15,073,408,180)(5,488,419,099)(35,857,697,876) (267,697,526) –(3,355,131,181) (543,048,922)(15,304,036,456)(126,101,108,250)Switch between classes (3,507,898,464) – (16,316,893) – – 103,744,097 313,243,011 3,090,911,991 – – 19,923,767 – – 3,607,509Dividends reinvested 41,682,011 300,753 – – 5,253 6,998,832 4,165,679 21,681,049 – – – 2,029,151 35,719,305 112,582,033Shares at end of financial year 5,895,555,408 74,865,856 227,802,174 86,251,883 173,476,334 3,534,744,568 860,114,508 9,433,192,130 28,836 1,277 533,336,124 381,422,159 4,613,421,126 25,814,212,383

US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ Total US$Subscriptions 46,199,121,741 83,929,967 1,438,550,548 113,054,768 218,775,693 17,454,613,269 5,394,686,249 39,345,876,139 107,200,000 – 3,622,490,000 630,014,001 15,760,849,939 130,369,162,314Redemptions (48,738,954,483) (101,972,047)(1,593,853,722) (31,248,044) (45,303,932)(15,073,408,180)(5,488,419,099)(35,857,697,876) (267,820,000) –(3,372,680,000) (543,048,922)(15,304,036,456)(126,418,442,761)Switch between classes (3,507,898,464) – (20,114,294) – – 103,744,097 313,243,011 3,090,911,991 – – 20,113,659 – – –Dividends reinvested 41,682,011 300,753 – – 5,253 6,998,832 4,165,679 21,681,049 – – – 2,029,151 35,719,305 112,582,033

47

HSBC US Dollar Liquidity Fund Financial year ended 30 April 2016

A Shares B Shares C Shares D Shares F Shares G Shares H Shares I Shares K Shares L Shares Y Shares Z Shares TotalAt beginning of financial year 15,588,723,098 73,938,620 436,586,673 38,300,361 – – – – – – – 5,100,785,076 21,238,333,828Shares issued 62,805,217,722 93,170,252 2,187,491,701 32,723,075 1,134,736,380 442,208,430 4,333,813,319 – – 1,325,410,743 9,650,000 14,948,135,031 87,312,556,653Shares redeemed (62,503,197,531) (74,594,742)(2,198,044,690) (53,921,237) (540,357,286) (355,805,828)(4,356,863,545) – –(1,128,833,673) (36,935,000) (15,629,864,934)(86,878,418,466)Switch between classes (4,010,936,501) – (55,870,443) – 448,019,488 549,312,314 2,853,140,463 160,568,382 1,277 68,215,030 319,650,050 (319,650,050) 12,450,010Dividends reinvested 21,797,815 93,053 – – 397,968 723,752 2,330,590 – – – 62,879 21,483,215 46,889,272Shares at end of financial year 11,901,604,603 92,607,183 370,163,241 17,102,199 1,042,796,550 636,438,668 2,832,420,827 160,568,382 1,277 264,792,100 292,427,929 4,120,888,338 21,731,811,297

US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ Total US$Subscriptions 62,805,217,722 93,170,252 2,675,166,429 38,528,078 1,134,736,380 442,208,430 4,333,813,322 – – 1,326,505,156 9,650,000 14,948,135,031 87,807,130,800Redemptions (62,503,197,531) (74,594,742)(2,688,139,117) (63,486,249) (540,357,286) (355,805,828)(4,356,863,545) – –(1,129,723,024) (36,935,000) (15,629,864,934)(87,378,967,256)Switch between classes (4,010,936,501) – (68,320,453) – 448,019,488 549,312,314 2,853,140,463 160,568,382 1,277 68,215,030 319,650,050 (319,650,050) –Dividends reinvested 21,797,815 93,053 – – 397,968 723,752 2,330,590 – – – 62,879 21,483,215 46,889,272

48

HSBC Euro Liquidity Fund Financial year ended 30 April 2017

A Shares B Shares C Shares D Shares F Shares G Shares H Shares L Shares Z Shares Total

At beginning of financial year 2,380,407,261 2,266,107 263,128,577 8,288,780 13,364,524 101,525,200 318,551,156 144,443,294 146,214,296 3,378,189,195Shares issued 16,676,921,040 97,464 1,201,008,173 – 445,990,001 2,322,017,000 7,204,965,936 2,246,702,806 391,947,933 30,489,650,353Shares redeemed (16,223,844,915) (1,376,667)(1,385,713,953) (73,347) (229,526,591)(2,113,545,253)(5,748,585,721)(2,143,361,505) (526,458,660)(28,372,486,612)Switch between classes (1,025,290,434) – – – – 248,658,528 776,631,906 – – –Dividends reinvested – – – – – – – – – –Shares at end of financial year 1,808,192,952 986,904 78,422,797 8,215,433 229,827,934 558,655,475 2,551,563,277 247,784,595 11,703,569 5,495,352,936

€ € € € € € € € € Total €Subscriptions 16,676,921,040 97,464 1,486,527,805 – 445,990,001 2,322,017,000 7,204,965,936 2,240,000,000 391,947,904 30,768,467,150Redemptions (16,215,555,085) (1,371,636)(1,715,297,204) (88,825) (229,294,726)(2,112,094,008)(5,742,224,568)(2,137,000,000) (526,088,733)(28,679,014,785)Switch between classes (1,025,290,434) – – – – 248,658,528 776,631,906 – – –Dividends reinvested – – – – – – – – – –

49

HSBC Euro Liquidity Fund Financial year ended 30 April 2016

A Shares B Shares C Shares D Shares F Shares G Shares H Shares L Shares Z Shares TotalAt beginning of financial year 2,075,299,547 1,699,338 192,386,116 8,289,259 – – – – 78,168,028 2,355,842,288Shares issued 20,944,487,389 650,000 1,571,703,589 – 102,045,000 – 527,028,937 494,595,070 581,213,358 24,221,723,343Shares redeemed (20,116,394,548) (83,231) (1,500,961,128) (479) (254,859,916) (30,110,713) (433,647,555) (350,151,776) (513,172,403)(23,199,381,749)Switch between classes (522,985,127) – – – 166,179,440 131,635,913 225,169,774 – – –Dividends reinvested – – – – – – – – 5,313 5,313Shares at end of financial year 2,380,407,261 2,266,107 263,128,577 8,288,780 13,364,524 101,525,200 318,551,156 144,443,294 146,214,296 3,378,189,195

€ € € € € € € € € Total €Subscriptions 20,944,487,389 650,000 1,950,680,931 – 102,045,000 – 527,028,937 494,400,000 581,213,358 24,600,505,615Redemptions (20,112,449,601) (80,825) (1,862,924,274) (583) (254,859,916) (29,995,259) (433,532,339) (349,995,061) (513,099,332)(23,556,937,190)Switch between classes (522,985,127) – – – 166,179,440 131,635,913 225,169,774 – – –Dividends reinvested – – – – – – – – 5,313 5,313

50

HSBC Canadian Dollar Liquidity Fund Financial year ended 30 April 2017

A Shares C Shares F Shares G Shares H Shares L Shares Z Shares Total

At beginning of financial year 98,595,465 – 35,802,842 – 53,723,013 9,670,628 49,576,475 247,368,423Shares issued 53,625,611 – – 54,815,000 108,518,089 21,501,258 14,966,810 253,426,768Shares redeemed (117,084,452) – – (60,325,000) (107,268,113) (24,286,780) (22,634,272) (331,598,617)Switch between classes (7,642,058) – – 7,642,058 – – – –Dividends reinvested 202,153 – 158,193 4,353 225,927 – 272,168 862,794Shares at end of financial year 27,696,719 – 35,961,035 2,136,411 55,198,916 6,885,106 42,181,181 170,059,368

CAD$ CAD$ CAD$ CAD$ CAD$ CAD$ CAD$ Total CAD$Subscriptions 53,625,611 – – 54,815,000 108,518,089 21,600,001 14,966,810 253,525,511Redemptions (117,084,452) – – (60,325,000) (107,268,112) (24,390,001) (22,634,272) (331,701,837)Switch between classes (7,642,058) – – 7,642,058 – – – –Dividends reinvested 202,153 – 158,193 4,353 225,927 – 272,168 862,794

51

HSBC Canadian Dollar Liquidity Fund Financial year ended 30 April 2016

A Shares C Shares F Shares G Shares H Shares L Shares Z Shares TotalAt beginning of financial year 136,241,950 15,342 – – – – 57,789,226 194,046,518Shares issued 217,569,384 46,422,409 – – 58,800,135 28,277,601 4,412,411 355,481,940Shares redeemed (173,825,170) (45,863,152) – (5,619,409) (45,798,756) (19,184,472) (13,020,449) (303,311,408)Switch between classes (81,992,195) (574,599) 35,776,375 5,617,552 40,598,268 577,499 – 2,900Dividends reinvested 601,496 – 26,467 1,857 123,366 – 395,287 1,148,473Shares at end of financial year 98,595,465 – 35,802,842 – 53,723,013 9,670,628 49,576,475 247,368,423

CAD$ CAD$ CAD$ CAD$ CAD$ CAD$ CAD$ Total CAD$Subscriptions 217,569,384 46,602,369 – – 58,800,135 28,300,000 4,412,411 355,684,299Redemptions (173,825,170) (46,050,000) – (5,619,409) (45,798,756) (19,200,000) (13,020,449) (303,513,784)Switch between classes (81,992,195) (577,499) 35,776,375 5,617,552 40,598,268 577,499 – –Dividends reinvested 601,496 – 26,467 1,857 123,366 – 395,287 1,148,473

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Combined

Financial Year ended

30 April 2017 1 Stg£

Financial Year ended

30 April 2016 1 Stg£

Subscriptions 175,568,190,459 117,810,053,269 Redemptions 170,851,253,991 (116,318,355,179) Dividends reinvested 99,536,420 46,009,025

Note: 1. The combined figures use the average exchange rates for the financial year (see Note 10 for rates).

53

5. Interest Income

The following tables detail the interest income earned by each sub-fund during the financial year:

30 April 2017 30 April 2016HSBC Sterling Liquidity Fund Stg£ Stg£Interest income from financial instruments designated at fair value through profit or loss 31,182,751 35,304,729Total interest income 31,182,751 35,304,729

30 April 2017 30 April 2016HSBC US Dollar Liquidity Fund US$ US$Interest income from financial instruments designated at fair value through profit or loss 198,796,704 87,388,220Total interest income 198,796,704 87,388,220

30 April 2017 30 April 2016HSBC Euro Liquidity Fund € €Interest income from financial instruments designated at fair value through profit or loss 456,110 600,805Total interest income 456,110 600,805

30 April 2017 30 April 2016HSBC Canadian Dollar Liquidity Fund CAD$ CAD$Interest income from financial instruments designated at fair value through profit or loss 1,239,077 1,395,427Total interest income 1,239,077 1,395,427

30 April 2017 30 April 2016Combined Stg£ Stg£Interest income from financial instruments designated at fair value through profit or loss 186,523,283 94,615,247Total interest income 186,523,283 94,615,247

6. Taxation

The Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997. Therefore, the Company will not be liable to Irish tax in respect of its income and gains, other than on the occurrence of a chargeable event. Generally a chargeable event arises on any distribution, redemption, repurchase, cancellation, transfer of shares or the ending of a ‘Relevant Period’. A ‘Relevant Period’ is an eight year period beginning with the acquisition of the shares by the shareholder and each subsequent period of eight years beginning immediately after the preceding Relevant Period.

A gain on a chargeable event does not arise in respect of:

i) any transactions in relation to shares held in a recognised clearing system as designated by order of the Revenue Commissioners of Ireland;

ii) an exchange of shares arising on a qualifying amalgamation or reconstruction of the Company with another fund;

iii) certain exchanges of shares between spouses and former spouses;

iv) an exchange by a shareholder, effected by way of an arm’s length bargain where no payment is made to the shareholder of Shares in the Company for other Shares in the Company; and

v) a shareholder who is not an Irish resident and not ordinarily resident in Ireland at the time of the chargeable event, provided the necessary signed statutory declarations are held by the Company;

vi) certain exempted Irish tax resident shareholders who have provided the Company with the necessary signed statutory declarations.

In the absence of an appropriate declaration, the Company will be liable for Irish tax on the occurrence of a chargeable event.

There were no chargeable events in the current or preceding financial year.

Capital gains, dividends and interest received may be subject to withholding taxes imposed by the country of origin and such taxes may not be recoverable by the Company or its shareholders.

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7. Related Persons and Significant Contracts

The Company is a HSBC sponsored investment vehicle. The Company has entered into an investment management agreement with HSBC Global Asset Management (France) for the management of the HSBC Sterling Liquidity Fund and the HSBC Euro Liquidity Fund and with HSBC Global Asset Management (USA) Inc. for the management of the HSBC US Dollar Liquidity Fund and the HSBC Canadian Dollar Liquidity Fund (collectively the “Investment Managers”).

HSBC Global Asset Management (UK) Limited has been appointed as Global Service Provider to the Company. Under the terms of the Prospectus, the maximum amount which the Global Service Provider shall charge to the Company shall be capped at the following percentage per annum of the Net Asset Value of each sub-fund.

Share Class Cap A Shares 0.20% B Shares 0.40% C Shares 0.20% D Shares 0.40% E Shares 0.18% F Shares 0.15% G Shares 0.12% H Shares 0.10% I Shares 0.18% K Shares 0.12% L Shares 0.10% Y Shares 0.03%

No fee is payable by the Company in relation to the Z shares of each sub-fund. From this, the Global Service Provider shall discharge all fees and expenses, including any out of pocket expenses, to the Administrator, Depositary, Investment Manager, Company Secretary or any other entity appointed to provide services to the Company.

The Global Service Provider has followed a voluntary policy of seeking to maintain a market competitive yield in respect of the sub-funds. This is achieved through the application of fee waivers when required. The positive yield target may vary from time to time at the discretion of the Global Service Provider. Global Service Provider fees waived during the financial years ended 30 April 2017 and 30 April 2016 were as follows:

FinancialYear ended

FinancialYear ended

30 April 2017 30 April 2016HSBC Sterling Liquidity Fund Stg£17,881 Stg£14HSBC US Dollar Liquidity Fund US$– US$758,885HSBC Euro Liquidity Fund €3,814,463 €5,380,356HSBC Canadian Dollar Liquidity Fund CAD$– CAD$–Combined Stg£3,246,072 Stg£4,474,423

The above amounts are included within the Management fees on the Statement of Comprehensive Income.

The Company’s Directors are considered to be the key management personnel of the Company. Mr. Angus Schumacher is employed by HSBC Global Asset Management (UK) Limited.

During the financial year ended 30 April 2017 and 30 April 2016, HSBC Global Asset Management (France), a related person to HSBC Global Liquidity Funds, acted as counterparty to a number of Time Deposits.

55

The largest balance outstanding at any time during the financial year was as follows:

30 April 2017

30 April 2016 HSBC Sterling Liquidity Fund - Reverse Repurchase Agreements - Certificates of Deposit - Time Deposit

Stg£1,300million Stg£200million Stg£640million

Stg£1,100million Stg£75million

Stg£- HSBC Euro Liquidity Fund - Certificates of Deposit - Time Deposits

€300million €628million

€– €433million

Global Service Provider fees for the financial year were as follows:

30 April 2017 30 April 2016HSBC Sterling Liquidity Fund Stg£10,602,639 Stg£11,636,285HSBC US Dollar Liquidity Fund US$28,806,558 US$32,715,998HSBC Euro Liquidity Fund €3,402,645 €1,590,247HSBC Canadian Dollar Liquidity Fund CAD$220,559 CAD$276,959Combined Stg£35,960,062 Stg£34,723,688

Global Service Provider fees payable for the financial year were as follows:

30 April 2017 30 April 2016HSBC Sterling Liquidity Fund Stg£801,118 Stg£1,055,232HSBC US Dollar Liquidity Fund US$2,263,571 US$2,770,248HSBC Euro Liquidity Fund €426,444 €185,994HSBC Canadian Dollar Liquidity Fund CAD$14,332 CAD$23,148Combined Stg£2,920,185 Stg£3,105,891

The following expenses were incurred during the financial year and were payable at financial year end by the Global Service Provider in relation to the sub-funds.

Directors fees

30 April 2017

Directors fees

30 April 2016

Audit fees*

30 April 2017

Audit fees*

30 April 2016 HSBC Sterling Liquidity Fund Stg£15,837 Stg£18,967 Stg£13,574 Stg£16,257 HSBC US Dollar Liquidity Fund US$59,421 US$59,485 US$50,932 US$50,987 HSBC Euro Liquidity Fund €12,657 € 9,387 €10,849 € 8,046 HSBC Canadian Dollar Liquidity Fund CAD$390 CAD$674 CAD$335 CAD$578 Combined Stg£72,707 Stg£67,313 Stg£62,321 Stg£57,697

*Audit fees are inclusive of VAT The audit fees for the current and preceding financial years were incurred solely in relation to the audit of the Financial Statements. Audit fee exclusive of VAT for the financial year ended 30 April 2017 were €60,000 (30 April 2017: €60,000)

The Company has entered into an administration agreement with BNY Mellon Fund Services (Ireland) Designated Activity Company (the “Administrator”) under which the Administrator receives an administration fee payable by the Global Service Provider monthly in arrears.

The Administration fees for the financial year were as follows:

30 April 2017 30 April 2016HSBC Sterling Liquidity Fund Stg£420,647 Stg£384,823HSBC US Dollar Liquidity Fund US$1,386,435 US$1,415,295HSBC Euro Liquidity Fund €288,397 €226,955HSBC Canadian Dollar Liquidity Fund CAD$12,009 CAD$12,900Combined Stg£1,743,667 Stg£1,500,718

The following Administration fees were payable at the financial year end:

30 April 2017 30 April 2016HSBC Sterling Liquidity Fund Stg£33,244 Stg£33,810HSBC US Dollar Liquidity Fund US$113,420 US$113,644HSBC Euro Liquidity Fund €27,772 €18,473HSBC Canadian Dollar Liquidity Fund CAD$811 CAD$1,090Combined Stg£144,885 Stg£126,501

56

BNY Mellon Trust Company (Ireland) Limited (the “Depositary”) receives a fee from the Global Service Provider based on Net Asset Value of each sub-fund and on the number of transactions entered into by the sub-funds.

The Depositary fees for the financial year were as follows:

30 April 2017 30 April 2016HSBC Sterling Liquidity Fund Stg£704,478 Stg£594,889HSBC US Dollar Liquidity Fund US$971,650 US$911,576HSBC Euro Liquidity Fund €382,408 €208,972HSBC Canadian Dollar Liquidity Fund CAD$64,927 CAD$76,742Combined Stg£1,820,113 Stg£1,394,602

The following Depositary fees were payable at the financial year end:

30 April 2017 30 April 2016HSBC Sterling Liquidity Fund Stg£51,955 Stg£54,978HSBC US Dollar Liquidity Fund US$85,447 US$71,885HSBC Euro Liquidity Fund €44,242 €17,419HSBC Canadian Dollar Liquidity Fund CAD$4,803 CAD$5,999Combined Stg£158,127 Stg£120,977

8. Financial Instruments and Associated Risks

In pursuing its investment objectives, the Company holds the following financial instruments: Certificates of Deposit, Commercial Papers, Corporate Bonds, Floating Rate Notes, Government Bonds, Treasury Bills, Treasury Notes/Bonds and Time Deposits.

(a) Market risk

The main risks arising from the Company’s financial instruments are market price, interest rate, foreign currency, liquidity and credit risks.

Market risk embodies the potential for both losses and gains and includes foreign currency risk, interest rate risk and price risk.

Market risk arises mainly from uncertainty about future prices of financial instruments held. It represents the potential loss a sub-fund might suffer through holding market position in the face of price movements.

The Investment Manager considers the asset allocation of the portfolio in order to minimise the risk associated with particular market sectors whilst continuing to follow a sub-fund’s investment objectives. Each sub-fund’s overall market position is monitored on a daily basis by the Investment Manager.

Each sub-fund’s investments are susceptible to market price risk arising from uncertainties about future prices of the instruments. Each sub-fund’s market price risk is managed through diversification of the investment portfolio.

There were no amendments to the Company’s procedures in managing risk from the previous financial year.

57

The overall market exposures for the financial years ended 30 April 2017 and 30 April 2016 were as follows:


Fair ValueStg£

30 April 2017

% ofNet Assets

30 April 2017

Fair ValueStg£

30 April 2016

% ofNet Assets

30 April 2016Transferable Securities - Certificates of Deposits 3,448,180,887 49.97 3,036,301,690 43.64- Commercial Papers 1,512,075,626 21.91 2,037,817,548 29.29- Corporate Bonds – – 614,983,499 8.84- Floating Rate Notes 270,295,970 3.92 – –- Government Bonds – – 4,999,758 0.07Money Market Instruments Deposits with Credit Institutions - Time Deposits 1,668,800,000 24.19 1,261,800,000 18.14Total 6,899,352,483 6,955,902,495


Fair ValueUS$

30 April 2017

% ofNet Assets

30 April 2017

Fair ValueUS$

30 April 2016

% ofNet Assets

30 April 2016Transferable Securities - Certificates of Deposits 10,110,745,576 39.06 13,612,198,832 62.39- Commercial Papers 9,561,261,635 36.93 4,320,390,024 19.80- Corporate Bonds – – 259,774,078 1.19- Floating Rate Notes 215,015,367 0.83 466,642,868 2.14- Treasury Notes/Bonds – – 1,038,967,113 4.76Money Market Instruments Deposits with Credit Institutions - Time Deposits 6,042,000,000 23.34 2,111,000,000 9.68Total 25,929,022,578 21,808,972,915


Fair Value€

30 April 2017

% ofNet Assets

30 April 2017

Fair Value€

30 April 2016

% ofNet Assets

30 April 2016Transferable Securities - Certificates of Deposits 1,687,129,251 30.60 961,226,938 27.92- Commercial Papers 1,493,908,545 27.09 1,279,849,680 37.17- Corporate Bonds 338,910,246 6.15 324,789,117 9.44- Floating Rate Notes 186,904,379 3.39 – –- Government Bonds – – 3,427,227 0.10- Treasury Bills 120,447,208 2.18 – –Money Market Instruments Deposits with Credit Institutions - Time Deposits 1,648,495,000 29.89 799,471,000 23.22Total 5,475,794,629 3,368,763,962


Fair ValueCAD$

30 April 2017

% ofNet Assets

30 April 2017

Fair ValueCAD$

30 April 2016

% ofNet Assets

30 April 2016Transferable Securities - Certificates of Deposits 6,497,627 3.82 – –- Commercial Papers 70,957,660 41.71 109,539,852 44.28- Corporate Bonds 2,599,938 1.53 3,010,306 1.22- Floating Rate Notes 5,038,101 2.96 7,508,910 3.03- Government Bonds 13,358,721 7.85 50,249,221 20.31- Treasury Bills 44,951,807 26.42 28,961,604 11.71Money Market Instruments Deposits with Credit Institutions - Time Deposits 26,700,000 15.70 47,900,000 19.36Total 170,103,854 247,169,893

58

Global Exposure

The Investment Manager applies the commitment approach to measure the global exposure of all financial instrument positions of the Company. There were no derivative instruments held at financial year end.

(b) Interest rate risk

As the Company may invest in fixed income securities, any change to the relevant interest rates for particular securities may result in the Investment Manager being unable to secure similar returns on the expiry of contracts or the sale of securities. In addition, changes to prevailing interest rates or changes in expectations of future rates may result in an increase or decrease in the value of the securities held. In general, if interest rates rise, the value of the fixed income securities will decline. A decline in interest rates will, in general, have the opposite effect.

The Company is exposed to interest rates in relation to the following assets held as at 30 April 2017: Transferable securities, Deposits with credit institutions and Cash and cash equivalents. A 10 basis point movement in interest rates for these assets would impact the total assets as disclosed in the table below:

Interest Risk Sensitivity Analysis 2017 +10bps -10bpsHSBC Sterling Liquidity Fund (Stg£6,900,056) Stg£6,900,056HSBC US Dollar Liquidity Fund (US$25,929,897) USD$25,929,897HSBC Euro Liquidity Fund (€5,475,850) €5,475,850HSBC Canadian Dollar Liquidity Fund (CAD$170,157) CAD$170,157Combined (Stg£31,676,904) Stg£31,676,904

Interest Risk Sensitivity Analysis 2016 +10bps -10bpsHSBC Sterling Liquidity Fund (Stg£6,957,250) Stg£6,957,250HSBC US Dollar Liquidity Fund (US$21,816,702) USD$21,816,702HSBC Euro Liquidity Fund (€3,448,186) €3,448,186HSBC Canadian Dollar Liquidity Fund (CAD$247,278) CAD$247,278Combined (Stg£24,692,980) Stg£24,692,980

The following table details the Company’s exposure to interest rate risks. It includes the sub-fund’s assets and trading liabilities at fair values categorised by the earlier of contractual re-pricing or maturity date measured by the carrying value of the assets and liabilities.

HSBC Sterling Liquidity Fund Contractual repricing dates 30 April 2017

< 1 month1 to 3

months3 months to

1 yearNon - Interest

Bearing TotalAssets Stg£ Stg£ Stg£ Stg£ Stg£Transferable securities 1,735,210,787 2,320,372,280 1,174,969,416 – 5,230,552,483Deposits with credit institutions 1,668,800,000 – – – 1,668,800,000Cash and cash equivalents 703,594 – – – 703,594Accrued interest income – – – 1,653,504 1,653,504Total financial assets 3,404,714,381 2,320,372,280 1,174,969,416 1,653,504 6,901,709,581 Liabilities Accrued expenses and other liabilities – – – (1,977,009) (1,977,009)Net assets attributable to holders of redeemable participating shares – – – (6,899,732,572) (6,899,732,572)Total financial liabilities – – – (6,901,709,581) (6,901,709,581) Interest sensitivity gap 3,404,714,381 2,320,372,280 1,174,969,416 – –

59

HSBC Sterling Liquidity Fund Contractual repricing dates 30 April 2016

< 1 month1 to 3

months3 months to


Bearing TotalAssets Stg£ Stg£ Stg£ Stg£ Stg£Transferable securities 1,893,114,057 2,612,608,508 1,188,379,930 – 5,694,102,495Deposits with credit institutions 1,261,800,000 – – – 1,261,800,000Cash and cash equivalents 1,347,296 – – – 1,347,296Accrued interest income – – – 2,999,130 2,999,130Total financial assets 3,156,261,353 2,612,608,508 1,188,379,930 2,999,130 6,960,248,921 Liabilities Accrued expenses and other liabilities – – – (3,395,726) (3,395,726)Net assets attributable to holders of redeemable participating shares – – – (6,956,853,195) (6,956,853,195)Total financial liabilities – – – (6,960,248,921) (6,960,248,921) Interest sensitivity gap 3,156,261,353 2,612,608,508 1,188,379,930 – –

HSBC US Dollar Liquidity Fund Contractual repricing dates 30 April 2017

< 1 month1 to 3

months3 months to


Bearing TotalAssets US$ US$ US$ US$ US$Transferable securities 11,424,437,564 6,692,606,898 1,769,978,116 – 19,887,022,578Deposits with credit institutions 6,042,000,000 – – – 6,042,000,000Cash and cash equivalents 874,721 – – – 874,721Accrued interest income – – – 15,815,255 15,815,255Total financial assets 17,467,312,285 6,692,606,898 1,769,978,116 15,815,255 25,945,712,554 Liabilities Due to broker – – – (34,896,925) (34,896,925)Accrued expenses and other liabilities – – – (22,572,153) (22,572,153)Net assets attributable to holders of redeemable participating shares – – – (25,888,243,476) (25,888,243,476)Total financial liabilities – – – (25,945,712,554) (25,945,712,554) Interest sensitivity gap 17,467,312,285 6,692,606,898 1,769,978,116 – –

HSBC US Dollar Liquidity Fund Contractual repricing dates 30 April 2016

< 1 month1 to 3

months3 months to


Bearing TotalAssets US$ US$ US$ US$ US$Transferable securities 12,382,480,159 5,453,400,396 1,862,092,360 – 19,697,972,915Deposits with credit institutions 2,111,000,000 – – – 2,111,000,000Cash and cash equivalents 7,729,329 – – – 7,729,329Accrued interest income – – – 13,513,999 13,513,999Total financial assets 14,501,209,488 5,453,400,396 1,862,092,360 13,513,999 21,830,216,243 Liabilities Accrued expenses and other liabilities – – – (11,633,208) (11,633,208)Net assets attributable to holders of redeemable participating shares – – – (21,818,583,035) (21,818,583,035)Total financial liabilities – – – (21,830,216,243) (21,830,216,243) Interest sensitivity gap 14,501,209,488 5,453,400,396 1,862,092,360 – –

60

HSBC Euro Liquidity Fund Contractual repricing dates 30 April 2017

< 1 month1 to 3

months3 months to


Bearing TotalAssets € € € € €Transferable securities 1,796,852,495 1,279,107,228 751,339,906 – 3,827,299,629Deposits with credit institutions 1,648,495,000 – – – 1,648,495,000Cash and cash equivalents 55,653 – – – 55,653Due from broker – – – 69,078,573 69,078,573Accrued interest income – – – 3,924,711 3,924,711Total financial assets 3,445,403,148 1,279,107,228 751,339,906 73,003,284 5,548,853,566 Liabilities Due to broker – – – (34,017,785) (34,017,785)Accrued expenses and other liabilities – – – (426,444) (426,444)Net assets attributable to holders of redeemable participating shares – – – (5,514,409,337) (5,514,409,337)Total financial liabilities – – – (5,548,853,566) (5,548,853,566) Interest sensitivity gap 3,445,403,148 1,279,107,228 751,339,906 – –

HSBC Euro Liquidity Fund Contractual repricing dates 30 April 2016

< 1 month1 to 3

months3 months to


Bearing TotalAssets € € € € €Transferable securities 986,535,626 1,001,884,724 580,872,612 – 2,569,292,962Deposits with credit institutions 799,471,000 – – – 799,471,000Cash and cash equivalents 54,015 – – – 54,015Due from broker – – – 77,729,769 77,729,769Accrued interest income – – – 1,638,527 1,638,527Total financial assets 1,786,060,641 1,001,884,724 580,872,612 79,368,296 3,448,186,273 Liabilities Due to broker – – – (5,001,292) (5,001,292)Accrued expenses and other liabilities – – – (185,994) (185,994)Net assets attributable to holders of redeemable participating shares – – – (3,442,998,987) (3,442,998,987)Total financial liabilities – – – (3,448,186,273) (3,448,186,273) Interest sensitivity gap 1,786,060,641 1,001,884,724 580,872,612 – –

61

HSBC Canadian Dollar Liquidity Fund Contractual repricing dates 30 April 2017

< 1 month1 to 3

months3 months to


Bearing TotalAssets CAD$ CAD$ CAD$ CAD$ CAD$Transferable securities 67,575,533 53,110,128 22,718,193 – 143,403,854Deposits with credit institutions 26,700,000 – – – 26,700,000Cash and cash equivalents 53,467 – – – 53,467Accrued interest income – – – 40,957 40,957Total financial assets 94,329,000 53,110,128 22,718,193 40,957 170,198,278 Liabilities Accrued expenses and other liabilities – – – (83,452) (83,452)Net assets attributable to holders of redeemable participating shares – – – (170,114,826) (170,114,826)Total financial liabilities – – – (170,198,278) (170,198,278) Interest sensitivity gap 94,329,000 53,110,128 22,718,193 – –

HSBC Canadian Dollar Liquidity Fund Contractual repricing dates 30 April 2016

< 1 month1 to 3

months3 months to


Bearing TotalAssets CAD$ CAD$ CAD$ CAD$ CAD$Transferable securities 99,890,009 75,334,387 24,045,497 – 199,269,893Deposits with credit institutions 47,900,000 – – – 47,900,000Cash and cash equivalents 107,897 – – – 107,897Accrued interest income – – – 240,087 240,087Total financial assets 147,897,906 75,334,387 24,045,497 240,087 247,517,877 Liabilities Accrued expenses and other liabilities – – – (122,897) (122,897)Net assets attributable to holders of redeemable participating shares – – – (247,394,980) (247,394,980)Total financial liabilities – – – (247,517,877) (247,517,877) Interest sensitivity gap 147,897,906 75,334,387 24,045,497 – –

(c) Other price risk

Other price risk is the risk that the value of the financial investments will fluctuate as a result of changes in market prices, other than those arising from currency risk or interest rate risk whether caused by factors specific to an individual investment, its issuer or any other factor affecting financial investments in the market.

Price risk is managed by the sub-fund’s or Company’s Investment Managers by constructing a diversified portfolio of instruments.

An increase of 3% in prices for investments as at the financial year end date would have increased the net assets attributable to the holders of redeemable participating shares by the amounts disclosed in the tables overleaf. A decrease of 3% would have had an equal but opposite effect.

62

Price risk sensitivity analysis per sub-fund for the financial years as at 30 April 2017 and 30 April 2016:

Sensitivity Analysis 2017 +3% -3%

HSBC Sterling Liquidity Fund Stg£206,980,574 (Stg£206,980,574)HSBC US Dollar Liquidity Fund US$777,870,677 (USD$777,870,677)HSBC Euro Liquidity Fund €164,273,839 (€164,273,839)HSBC Canadian Dollar Liquidity Fund CAD$5,103,116 (CAD$5,103,116)Total Stg£950,263,386 (Stg£950,263,386)

Sensitivity Analysis 2016 +3% -3%

HSBC Sterling Liquidity Fund Stg£208,677,075 (Stg£208,677,075)HSBC US Dollar Liquidity Fund US$654,269,187 (USD$654,269,187)HSBC Euro Liquidity Fund €101,062,919 (€101,062,919)HSBC Canadian Dollar Liquidity Fund CAD$7,415,097 (CAD$7,415,097)Total Stg£738,726,031 (Stg£738,726,031)

To reduce the possibility of risk the Company on behalf of a sub-fund may employ techniques and instruments relating to transferable securities and/or other financial instruments in which it invests for efficient portfolio management purposes.

The sub-funds are designed for investors seeking security of capital and daily liquidity together with an investment return comparable to normal money market interest rates.

(d) Foreign currency risk

The sub-funds may invest in financial instruments and enter into transactions denominated in currencies other than its base currency. The sub-funds may therefore engage in currency transactions in order to hedge such transactions or financial instruments. Consequently the Company is exposed to risks that the exchange rate of its currency relative to other foreign currencies may change in a manner that has an adverse effect on the value of that portion of the Company’s assets or liabilities.

The currency risk is reviewed and managed on a daily basis by the Investment Manager, while the overall currency positions and exposures are monitored on a monthly basis by the Board of Directors.

There were no significant foreign currency exposures on any of the sub-funds as at 30 April 2017 and 30 April 2016.

At 30 April 2017, had the British Pound strengthened by 5% in relation to all currencies, with all other variables held constant, the combined net assets attributable to holders of redeemable participating shares and the currency adjustment in Net Assets Attributable to Holders of Redeemable Participating Shares per the Statement of Comprehensive Income would have decreased by Stg£1,179,865,057 (30 April 2016: Stg£844,429,765).

(e) Liquidity risk

The Company’s constitution provides for the daily creation and cancellation of redeemable participating shares and each sub-fund is therefore exposed to the liquidity risk of meeting shareholder redemptions at any time. Each sub-fund therefore invests the majority of its assets in investments that are listed or traded on a recognised market, thus assets comprise realisable securities, which can be readily sold. In accordance with each sub-fund’s policy, the Investment Manager monitors each sub-fund’s liquidity position on a daily basis, and the Board of Directors reviews it on a quarterly basis.

63

The following tables analyse each sub-fund’s financial assets and financial liabilities into relevant maturity groupings based on the remaining financial year at the Statement of Financial Position date to the contractual maturity date. The amounts in the table are the contractual undiscounted cash flows.

HSBC Sterling Liquidity Fund Residual contractual maturities 30 April 2017

< 1 month1 to 3

months3 months to

1 year > 1 year Total Stg£ Stg£ Stg£ Stg£ Stg£Transferable securities 1,419,912,406 2,165,373,828 1,645,266,249 – 5,230,552,483Deposits with credit institutions 1,668,800,000 – – – 1,668,800,000Cash and cash equivalents 703,594 – – – 703,594Accrued interest income 1,653,504 – – – 1,653,504Total financial assets 3,091,069,504 2,165,373,828 1,645,266,249 – 6,901,709,581 Accrued expenses and other liabilities (1,977,009) – – – (1,977,009)Net assets attributable to holders of redeemable participating shares (6,899,732,572) – – – (6,899,732,572)Total financial liabilities (6,901,709,581) – – – (6,901,709,581)

HSBC Sterling Liquidity Fund Residual contractual maturities 30 April 2016

< 1 month1 to 3

months3 months to

1 year > 1 year Total Stg£ Stg£ Stg£ Stg£ Stg£Transferable securities 1,684,117,170 2,291,621,630 1,718,363,695 – 5,694,102,495Deposits with credit institutions 1,261,800,000 – – – 1,261,800,000Cash and cash equivalents 1,347,296 – – – 1,347,296Accrued interest income 2,999,130 – – – 2,999,130Total financial assets 2,950,263,596 2,291,621,630 1,718,363,695 – 6,960,248,921 Accrued expenses and other liabilities (3,395,726) – – – (3,395,726)Net assets attributable to holders of redeemable participating shares (6,956,853,195) – – – (6,956,853,195)Total financial liabilities (6,960,248,921) – – – (6,960,248,921)

The weighted average life of the sub-fund’s holdings as at 30 April 2017 was 60 days (30 April 2016: 60 days).

HSBC US Dollar Liquidity Fund Residual contractual maturities 30 April 2017

< 1 month1 to 3

months3 months to

1 year > 1 year Total US$ US$ US$ US$ US$Transferable securities 5,561,811,419 7,650,854,122 6,674,357,037 – 19,887,022,578Deposits with credit institutions 6,042,000,000 – – – 6,042,000,000Cash and cash equivalents 874,721 – – – 874,721Accrued interest income 15,815,255 – – – 15,815,255Total financial assets 11,620,501,395 7,650,854,122 6,674,357,037 – 25,945,712,554 Due to broker (34,896,925) – – – (34,896,925)Accrued expenses and other liabilities (22,572,153) – – – (22,572,153)Net assets attributable to holders of redeemable participating shares (25,888,243,476) – – – (25,888,243,476)Total financial liabilities (25,945,712,554) – – – (25,945,712,554)

64

HSBC US Dollar Liquidity Fund Residual contractual maturities 30 April 2016

< 1 month1 to 3

months3 months to

1 year > 1 year Total US$ US$ US$ US$ US$Transferable securities 6,194,476,485 6,021,161,984 7,482,334,446 – 19,697,972,915Deposits with credit institutions 2,111,000,000 – – – 2,111,000,000Cash and cash equivalents 7,729,329 – – – 7,729,329Accrued interest income 13,513,999 – – – 13,513,999Total financial assets 8,326,719,813 6,021,161,984 7,482,334,446 – 21,830,216,243 Accrued expenses and other liabilities (11,633,208) – – – (11,633,208)Net assets attributable to holders of redeemable participating shares (21,818,583,035) – – – (21,818,583,035)Total financial liabilities (21,830,216,243) – – – (21,830,216,243)


HSBC Euro Liquidity Fund Residual contractual maturities 30 April 2017

< 1 month1 to 3

months3 months to

1 year > 1 year Total € € € € €Transferable securities 1,349,836,113 1,284,726,200 1,192,737,316 – 3,827,299,629Deposits with credit institutions 1,648,495,000 – – – 1,648,495,000Cash and cash equivalents 55,653 – – – 55,653Due from broker 69,078,573 – – – 69,078,573Accrued interest income 3,924,711 – – – 3,924,711Total financial assets 3,071,390,050 1,284,726,200 1,192,737,316 – 5,548,853,566 Due to broker (34,017,785) – – – (34,017,785)Accrued expenses and other liabilities (426,444) – – – (426,444)Net assets attributable to holders of redeemable participating shares (5,514,409,337) – – – (5,514,409,337)Total financial liabilities (5,548,853,566) – – – (5,548,853,566)

HSBC Euro Liquidity Fund Residual contractual maturities 30 April 2016

< 1 month1 to 3

months3 months to

1 year > 1 year Total € € € € €Transferable securities 591,784,129 1,102,671,982 874,836,851 – 2,569,292,962Deposits with credit institutions 799,471,000 – – – 799,471,000Cash and cash equivalents 54,015 – – – 54,015Due from broker 77,729,769 – – – 77,729,769Accrued interest income 1,638,527 – – – 1,638,527Total financial assets 1,470,677,440 1,102,671,982 874,836,851 – 3,448,186,273 Due to broker (5,001,292) – – – (5,001,292)Accrued expenses and other liabilities (185,994) – – – (185,994)Net assets attributable to holders of redeemable participating shares (3,442,998,987) – – – (3,442,998,987)Total financial liabilities (3,448,186,273) – – – (3,448,186,273)


65

HSBC Canadian Dollar Liquidity Fund Residual contractual maturities 30 April 2017

< 1 month1 to 3

months3 months to

1 year > 1 year Total CAD$ CAD$ CAD$ CAD$ CAD$Transferable securities 64,245,563 39,665,928 39,492,363 – 143,403,854Deposits with credit institutions 26,700,000 – – – 26,700,000Cash and cash equivalents 53,467 – – – 53,467Accrued interest income 40,957 – – – 40,957Total financial assets 91,039,987 39,665,928 39,492,363 – 170,198,278 Accrued expenses and other liabilities (83,452) – – – (83,452)Net assets attributable to holders of redeemable participating shares (170,114,826) – – – (170,114,826)Total financial liabilities (170,198,278) – – – (170,198,278)

HSBC Canadian Dollar Liquidity Fund Residual contractual maturities 30 April 2016

< 1 month1 to 3

months3 months to

1 year > 1 year Total CAD$ CAD$ CAD$ CAD$ CAD$Transferable securities 96,390,008 61,867,411 41,012,474 – 199,269,893Deposits with credit institutions 47,900,000 – – – 47,900,000Cash and cash equivalents 107,897 – – – 107,897Accrued interest income 240,087 – – – 240,087Total financial assets 144,637,992 61,867,411 41,012,474 – 247,517,877 Accrued expenses and other liabilities (122,897) – – – (122,897)Net assets attributable to holders of redeemable participating shares (247,394,980) – – – (247,394,980)Total financial liabilities (247,517,877) – – – (247,517,877)


(f) Credit risk

Credit risk is the risk that an issuer or counterparty will be unable to meet a commitment that it has entered into with the sub-fund. It is the Company’s policy to enter into financial instruments with a diversity of creditworthy counterparties. Therefore, the Company does not expect to incur material credit losses on its financial instruments.

The Company proposes to invest in short-term transferable securities which at the time of purchase have a credit rating of at least A-1/P-1 (or its equivalent) from a recognised credit rating agency such as Standard & Poor’s. In addition, it is the intention of the Directors to arrange for each sub-fund to maintain a “Triple A” rating from at least one of the most recognised rating agencies. The Directors will aim to ensure that each of the sub-funds will invest in securities which are consistent with maintaining this rating.

The Company’s maximum exposure to credit risk (not taking into account the value of any collateral or other security held) in the event that counterparties fail to perform their obligations as of 30 April 2017 in relation to each class of recognised financial assets, other than derivatives, is the carrying amount of those assets as indicated in the Statement of Financial Position. The Company’s main credit risk concentration is spread over debt securities.

Substantially all of the assets of the Company are held by the Depositary. Depending on the requirements of the jurisdictions in which the investments of the sub-funds are issued, the Depositary may use the services of one or more sub-custodians. Bankruptcy or insolvency of the Depositary may cause the sub-fund’s rights with respect to securities held to be delayed. The Bank of New York Mellon has a AA- (2016: AA-) credit rating, as rated by Standard and Poor’s.

66

At the reporting date, the Company’s financial assets exposed to credit risk amounted to the following:

30 April 2017 30 April 2016HSBC Sterling Liquidity Fund Stg£ Stg£Transferable securities 5,230,552,483 5,694,102,495Deposits with credit institutions 1,668,800,000 1,261,800,000Cash and cash equivalents 703,594 1,347,296Accrued interest income 1,653,504 2,999,130Total 6,901,709,581 6,960,248,921

30 April 2017 30 April 2016HSBC US Dollar Liquidity Fund US$ US$Transferable securities 19,887,022,578 19,697,972,915Deposits with credit institutions 6,042,000,000 2,111,000,000Cash and cash equivalents 874,721 7,729,329Accrued interest income 15,815,255 13,513,999Total 25,945,712,554 21,830,216,243

30 April 2017 30 April 2016HSBC Euro Liquidity Fund € €Transferable securities 3,827,299,629 2,569,292,962Deposits with credit institutions 1,648,495,000 799,471,000Cash and cash equivalents 55,653 54,015Securities sold receivable 69,078,573 77,729,769Accrued interest income 3,924,711 1,638,527Total 5,548,853,566 3,448,186,273

30 April 2017 30 April 2016HSBC Canadian Dollar Liquidity Fund CAD$ CAD$Transferable securities 143,403,854 199,269,893Deposits with credit institutions 26,700,000 47,900,000Cash and cash equivalents 53,467 107,897Accrued income 40,957 240,087Total 170,198,278 247,517,877

The Company’s financial assets exposed to credit risk were concentrated in the following industries:

HSBC Sterling Liquidity Fund 30 April 201 7

% 30 April 201 6

% Banks 85.33 80.10 Corporate 2.03 3.79 Government 0.00 0.65 Agency 7.95 8.78 Asset Backed Commercial Paper Programme 4.69 6.68 100.00 100.00

HSBC US Dollar Liquidity Fund 30 April 201 7

% 30 April 2016


67

HSBC Euro Liquidity Fund 30 April 2017

% 30 April 2016


HSBC Canadian Dollar Liquidity Fund 30 April 201 7

% 30 April 2016

% Banks 40.47 51.01 Corporate 7.78 8.45 Government 26.44 16.99 Agency 25.31 23.55 100.00 100.00

At 30 April 2017 and 30 April 2016, the Company was invested in debt securities with the following credit quality per Standard and Poor’s and Moody’s: HSBC Sterling Liquidity Fund Portfolio by rating category

Credit quality mix Weight (%)

30 April 201 7 %

30 April 2016 %

A-1+ 29.45 31.32 A-1/P-1 70.55 68.68 Total 100.00 100.00

HSBC US Dollar Liquidity Fund Portfolio by rating category


30 April 201 7 %

30 April 201 6 %

A-1+ 38.48 35.50 A-1/P-1 61.52 64.50 Total 100.00 100.00

HSBC Euro Liquidity Fund Portfolio by rating category

Credit quality mi x Weight (%)

30 April 201 7 %

30 April 201 6 %

A-1+ 37.66 35.72 A-1/P-1 62.34 64.28 Total 100.00 100.00

HSBC Canadian Dollar Liquidity Fund Portfolio by rating category


30 April 201 7 %

30 April 201 6 %

A-1+ 58.30 48.34 A-1/P-1 41.70 51.66 Total 100.00 100.00

There were no amounts received as collateral for Reverse Repurchase Agreements at 30 April 2017 and 30 April 2016.

68

(g) Fair values of financial assets and financial l iabilities

Commercial Papers, Corporate Bonds, Floating Rate Notes, Government Bonds, Treasury Bills and Treasury Notes/Bonds are valued at amortised cost, as an approximation of fair value. Certificates of Deposit and other negotiable instruments are valued on a “straight line” basis, as an approximation of fair value. Time Deposits and Reverse Repurchase Agreements are valued at cost which approximates fair value.

Many of the Company’s financial instruments are carried at fair value on the Statement of Financial Position. Usually the fair value of the financial instruments can be reliably determined within a reasonable range of estimates. For certain other financial instruments, including securities sold receivable/payable, other receivables, accounts payable and accrued expenses, the carrying amounts approximate fair value due to the immediate or short term nature of these financial instruments.

Estimation of fair values

The major methods and assumptions used in estimating the fair values of financial instruments are disclosed in Note 2 (c) (iii) of the Significant Accounting Policies section and in Note 9.

(h) Segregated Liability

The Company has segregated liability between its sub-funds and accordingly any liability incurred on behalf of or attributable to any sub-fund shall be discharged solely out of the assets of that sub-fund. As of the Statement of Financial Position date the Directors are not aware of any existing or contingent liability of any sub-fund of the Company.

9. Financial Instruments at Fair Value through Prof it or Loss

Fair Value Estimation

The fair values of financial instruments traded in active markets (such as publicly traded derivatives and trading securities) are based on quoted market prices at the close of trading on the financial year end date.

An active market is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

IFRS 13 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.

The carrying value less impairment provision of other receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Company for similar financial instruments.

The fair value hierarchy has the following levels:

� Listed prices (unadjusted) in active markets for identical assets or liabilities (level 1).

� Inputs other than listed prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).

� Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability.

69

The determination of what constitutes ‘observable’ requires significant judgement by the Company. The Company considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The following tables analyse within the fair value hierarchy the Company's financial assets measured at fair value at 30 April 2017 and 30 April 2016. There were no financial liabilities measured at fair value at the financial year end.

HSBC Sterling Liquidity Fund 30 April 2017 Level 1 Level 2 Level 3 Total Stg£ Stg£ Stg£ Stg£Financial assets held at fair value through profit or loss Certificates of Deposit – 3,448,180,887 – 3,448,180,887Commercial Papers – 1,512,075,626 – 1,512,075,626Floating Rate Notes – 270,295,970 – 270,295,970Time Deposits – 1,668,800,000 – 1,668,800,000Total investments – 6,899,352,483 – 6,899,352,483

HSBC Sterling Liquidity Fund 30 April 2016 Level 1 Level 2 Level 3 Total Stg£ Stg£ Stg£ Stg£Financial assets held at fair value through profit or loss Certificates of Deposit – 3,036,301,690 – 3,036,301,690Commercial Papers – 2,037,817,548 – 2,037,817,548Corporate Bonds – 614,983,499 – 614,983,499Government Bonds – 4,999,758 – 4,999,758Time Deposits – 1,261,800,000 – 1,261,800,000Total investments – 6,955,902,495 – 6,955,902,495

HSBC US Dollar Liquidity Fund 30 April 2017 Level 1 Level 2 Level 3 Total US$ US$ US$ US$Financial assets held at fair value through profit or loss Certificates of Deposit – 10,110,745,576 – 10,110,745,576Commercial Papers – 9,561,261,635 – 9,561,261,635Floating Rate Notes – 215,015,367 – 215,015,367Time Deposits – 6,042,000,000 – 6,042,000,000Total investments – 25,929,022,578 – 25,929,022,578

HSBC US Dollar Liquidity Fund 30 April 2016 Level 1 Level 2 Level 3 Total US$ US$ US$ US$Financial assets held at fair value through profit or loss Certificates of Deposit – 13,612,198,832 – 13,612,198,832Commercial Papers – 4,320,390,024 – 4,320,390,024Corporate Bonds 46,952,759 212,821,319 – 259,774,078Floating Rate Notes 57,235,060 409,407,808 – 466,642,868Time Deposits – 2,111,000,000 – 2,111,000,000Treasury Notes/Bonds 1,038,967,113 – – 1,038,967,113Total investments 1,143,154,932 20,665,817,983 – 21,808,972,915

HSBC Euro Liquidity Fund 30 April 2017 Level 1 Level 2 Level 3 Total € € € €Financial assets held at fair value through profit or loss Certificates of Deposit – 1,687,129,251 – 1,687,129,251Commercial Papers – 1,493,908,545 – 1,493,908,545Corporate Bonds – 338,910,246 – 338,910,246Floating Rate Notes – 186,904,379 – 186,904,379Time Deposits – 1,648,495,000 – 1,648,495,000Treasury Bills 120,447,208 – – 120,447,208Total investments 120,447,208 5,355,347,421 – 5,475,794,629

70

HSBC Euro Liquidity Fund 30 April 2016 Level 1 Level 2 Level 3 Total € € € €Financial assets held at fair value through profit or loss Certificates of Deposit – 961,226,938 – 961,226,938Commercial Papers – 1,279,849,680 – 1,279,849,680Corporate Bonds 230,095,577 94,693,540 – 324,789,117Government Bonds 3,427,227 – – 3,427,227Time Deposits – 799,471,000 – 799,471,000Total investments 233,522,804 3,135,241,158 – 3,368,763,962

HSBC Canadian Dollar Liquidity Fund 30 April 2017 Level 1 Level 2 Level 3 Total CAD$ CAD$ CAD$ CAD$Financial assets held at fair value through profit or loss Certificates of Deposit – 6,497,627 – 6,497,627Commercial Papers – 70,957,660 – 70,957,660Corporate Bonds – 2,599,938 – 2,599,938Floating Rate Notes – 5,038,101 – 5,038,101Government Bonds – 13,358,721 – 13,358,721Time Deposits – 26,700,000 – 26,700,000Treasury Bills – 44,951,807 – 44,951,807Total investments – 170,103,854 – 170,103,854

HSBC Canadian Dollar Liquidity Fund 30 April 2016 Level 1 Level 2 Level 3 Total CAD$ CAD$ CAD$ CAD$Financial assets held at fair value through profit or loss Commercial Papers – 109,539,852 – 109,539,852Corporate Bonds – 3,010,306 – 3,010,306Floating Rate Notes 4,008,910 3,500,000 – 7,508,910Government Bonds – 50,249,221 – 50,249,221Time Deposits – 47,900,000 – 47,900,000Treasury Bills – 28,961,604 – 28,961,604Total investments 4,008,910 243,160,983 – 247,169,893

There was no transfer between levels during the financial years ended 30 April 2017 and 30 April 2016.

The following table analyses within the fair value hierarchy the Company’s assets and liabilities (by class) not measured at fair value at 30 April 2017 and 30 April 2016 but for which fair value is disclosed:

HSBC Sterling Liquidity Fund 30 April 2017 Level 1 Level 2 Level 3 Total Stg£ Stg£ Stg£ Stg£Assets Cash and cash equivalents – 703,594 – 703,594Accrued interest income – 1,653,504 – 1,653,504Total – 2,357,098 – 2,357,098 Liabilities Accrued expenses and other liabilities – (1,977,009) – (1,977,009)Net assets attributable to holders of redeemable participating shares – (6,899,732,572) – (6,899,732,572)Total – (6,901,709,581) – (6,901,709,581)

HSBC Sterling Liquidity Fund 30 April 2016 Level 1 Level 2 Level 3 Total Stg£ Stg£ Stg£ Stg£Assets Cash and cash equivalents – 1,347,296 – 1,347,296Accrued interest income – 2,999,130 – 2,999,130Total – 4,346,426 – 4,346,426 Liabilities Accrued expenses and other liabilities – (3,395,726) – (3,395,726)Net assets attributable to holders of redeemable participating shares – (6,956,853,195) – (6,956,853,195)Total – (6,960,248,921) – (6,960,248,921)

71

HSBC US Dollar Liquidity Fund 30 April 2017 Level 1 Level 2 Level 3 Total US$ US$ US$ US$Assets Cash and cash equivalents – 874,721 – 874,721Accrued interest income – 15,815,255 – 15,815,255Total – 16,689,976 – 16,689,976 Liabilities Due to broker – (34,896,925) – (34,896,925)Accrued expenses and other liabilities – (22,572,153) – (22,572,153)Net assets attributable to holders of redeemable participating shares – (25,888,243,476) – (25,888,243,476)Total – (25,945,712,554) – (25,945,712,554)

HSBC US Dollar Liquidity Fund 30 April 2016 Level 1 Level 2 Level 3 Total US$ US$ US$ US$Assets Cash and cash equivalents – 7,729,329 – 7,729,329Accrued interest income – 13,513,999 – 13,513,999Total – 21,243,328 – 21,243,328 Liabilities Accrued expenses and other liabilities – (11,633,208) – (11,633,208)Net assets attributable to holders of redeemable participating shares – (21,818,583,035) – (21,818,583,035)Total – (21,830,216,243) – (21,830,216,243)

HSBC Euro Liquidity Fund 30 April 2017 Level 1 Level 2 Level 3 Total € € € €Assets Cash and cash equivalents – 55,653 – 55,653Due from broker – 69,078,573 – 69,078,573Accrued interest income – 3,924,711 – 3,924,711Total – 73,058,937 – 73,058,937 Liabilities Due to broker – (34,017,785) – (34,017,785)Accrued expenses and other liabilities – (426,444) – (426,444)Net assets attributable to holders of redeemable participating shares – (5,514,409,337) – (5,514,409,337)Total – (5,548,853,566) – (5,548,853,566)

HSBC Euro Liquidity Fund 30 April 2016 Level 1 Level 2 Level 3 Total € € € €Assets Cash and cash equivalents – 54,015 – 54,015Due from broker – 77,729,769 – 77,729,769Accrued interest income – 1,638,527 – 1,638,527Total – 79,422,311 – 79,422,311 Liabilities Due to broker – (5,001,292) – (5,001,292)Accrued expenses and other liabilities – (185,994) – (185,994)Net assets attributable to holders of redeemable participating shares – (3,442,998,987) – (3,442,998,987)Total – (3,448,186,273) – (3,448,186,273)

72

HSBC Canadian Dollar Liquidity Fund 30 April 2017 Level 1 Level 2 Level 3 Total CAD$ CAD$ CAD$ CAD$Assets Cash and cash equivalents – 53,467 – 53,467Accrued interest income – 40,957 – 40,957Total – 94,424 – 94,424 Liabilities Accrued expenses and other liabilities – (83,452) – (83,452)Net assets attributable to holders of redeemable participating shares – (170,114,826) – (170,114,826)Total – (170,198,278) – (170,198,278)

HSBC Canadian Dollar Liquidity Fund 30 April 2016 Level 1 Level 2 Level 3 Total CAD$ CAD$ CAD$ CAD$Assets Cash and cash equivalents – 107,897 – 107,897Accrued interest income – 240,087 – 240,087Total – 347,984 – 347,984 Liabilities Accrued expenses and other liabilities – (122,897) – (122,897)Net assets attributable to holders of redeemable participating shares – (247,394,980) – (247,394,980)Total – (247,517,877) – (247,517,877)

The assets and liabilities included in the above tables are carried at amortised cost; their carrying values are a reasonable approximation of fair value. Receivables include the contractual amounts for settlement of trades and other obligations due to the Company. Accruals represent the contractual amounts and obligations due by the Company for settlement of trades and expenses. The value of redeemable shares is calculated based on the net difference between total assets and all other liabilities of the Company in accordance with the Company’s prospectus. These shares are traded on an active market. The fair value is based on the amount payable on demand, discounted if applicable from the first date that the amount could be required to be paid. The impact of discounting in this instance is not material. As such, Level 2 is deemed to be the most appropriate categorisation for net assets attributable to holders of redeemable shares. 10. Exchange Rates

The combined Financial Statements of the Company are prepared in the reporting currency of the Company, British Pound (Stg£). The HSBC US Dollar Liquidity Fund, HSBC Canadian Dollar Liquidity Fund and HSBC Euro Liquidity Fund have been converted to Sterling for combination purposes on the Statement of Financial Position by using the exchange rate prevailing at the close of business at 30 April 2017.

The average exchange rate for the financial year is used in the Statement of Comprehensive Income and the Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares.

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The exchange rates used were as follows:

Statement of Financial Position Statement of Comprehensive Income and Statement of Changes in Net Assets

Financial

year ended

30 April 2017

Financial

year ended 30 April 2016

Financial

year ended 30 April 2017

Financial year ended

30 April 2016 US$1.292850 US$1.463700 Stg£1 US$1.292873 US$1.502525

€1.184200 €1.279100 Stg£1 €1.183376 €1.355480

CAD$1.765700 CAD$1.834850 Stg£1 CAD$1.703077 CAD$1.975416

The difference due to movements in the exchange rates used for translation from one reporting financial year to the next and from average to closing rate is disclosed as a currency adjustment in the combined Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares and has no effect on the Net Asset Value per share attributable to the individual sub-funds.

11. Efficient Portfolio Management

Repurchase Agreements The Company may enter (for the purposes of efficient portfolio management) into securities lending arrangements and/or repurchase transactions in accordance with normal market practice. Where the Company enters into repurchase agreements, the Investment Manager shall ensure that it is able at any time to recall the full amount of cash or to terminate the reverse repurchase agreement on either an accrued basis or a mark-to-market basis. When the cash is recallable at any time on a mark-to-market basis, the mark-to-market value of the reverse repurchase agreement should be used for the calculation of the Net Asset Value of the Company.

The Company can at any time recall any securities subject to the repurchase agreement or terminate the repurchase agreement into which it has entered.

As at 30 April 2017 and 30 April 2016, there were no repurchase agreements entered into by the Company.

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12. Net Asset Value


A SharesStg£

B SharesStg£

C SharesStg£

D SharesStg£

E SharesStg£

F SharesStg£

G SharesStg£

H SharesStg£

K SharesStg£

L SharesStg£

Y SharesStg£

Z SharesStg£

Net asset value 30 April 2017 1,657,169,571 1,842,751 137,679,776 137,643,267 407,427 537,587,856 514,052,646 3,266,058,631 94,425,389 169,349,029 105,042,352 278,473,87730 April 2016 4,475,967,858 1,581,706 174,555,053 138,346,073 – 429,515,558 161,766,631 1,218,309,330 164,072,296 58,505,614 – 134,233,08130 April 2015 5,914,138,450 3,994,407 272,521,071 143,358,265 – – – – – – – 196,480,472 Net asset value per share 30 April 2017 Stg£1.00 Stg£1.00 Stg£1.40 Stg£1.36 Stg£1.00 Stg£1.00 Stg£1.00 Stg£1.00 Stg£1.01 Stg£1.01 Stg£1.00 Stg£1.0030 April 2016 Stg£1.00 Stg£1.00 Stg£1.39 Stg£1.35 – Stg£1.00 Stg£1.00 Stg£1.00 Stg£1.00 Stg£1.00 – Stg£1.0030 April 2015 Stg£1.00 Stg£1.00 Stg£1.39 Stg£1.35 – – – – – – – Stg£1.00


A SharesUS$

B SharesUS$

C SharesUS$

D SharesUS$

E SharesUS$

F SharesUS$

G SharesUS$

H SharesUS$

I SharesUS$

K SharesUS$

Net asset value 30 April 2017 5,895,566,707 74,866,286 280,848,336 102,096,597 173,476,334 3,534,744,568 860,114,508 9,433,192,163 29,036 1,29130 April 2016 11,901,615,945 92,607,613 453,352,062 20,150,570 – 1,042,796,550 636,438,668 2,832,420,827 160,580,779 1,28030 April 2015 15,588,734,439 73,939,051 533,716,621 45,083,083 – – – – – – Net asset value per share 30 April 2017 US$1.00 US$1.00 US$1.23 US$1.18 US$1.00 US$1.00 US$1.00 US$1.00 US$1.01 US$1.0130 April 2016 US$1.00 US$1.00 US$1.22 US$1.18 – US$1.00 US$1.00 US$1.00 US$1.00 US$1.0030 April 2015 US$1.00 US$1.00 US$1.22 US$1.18 – – – – – –


L SharesUS$

Y SharesUS$

Z SharesUS$

Net asset value 30 April 2017 538,482,979 381,422,159 4,613,402,51230 April 2016 265,321,101 292,427,929 4,120,869,71530 April 2015 – – 5,100,766,453 Net asset value per share 30 April 2017 US$1.01 US$1.00 US$1.0030 April 2016 US$1.00 US$1.00 US$1.0030 April 2015 – – US$1.00

75


A Shares€

B Shares€

C Shares€

D Shares€

F Shares€

G Shares€

H Shares€

L Shares€

Z Shares€

Net asset value 30 April 2017 1,808,192,957 986,903 96,884,889 9,948,555 229,827,934 558,655,475 2,551,563,277 246,645,778 11,703,56930 April 2016 2,380,407,267 2,266,107 326,281,687 10,074,991 13,364,524 101,525,201 318,551,156 144,313,758 146,214,29630 April 2015 2,075,299,552 1,699,339 238,862,119 10,088,310 – – – – 78,168,028 Net asset value per share 30 April 2017 €1.00 €1.00 €1.24 €1.21 €1.00 €1.00 €1.00 €1.00 €1.0030 April 2016 €1.00 €1.00 €1.24 €1.22 €1.00 €1.00 €1.00 €1.00 €1.0030 April 2015 €1.00 €1.00 €1.24 €1.22 – – – – €1.00


A SharesCAD$

C SharesCAD$

F SharesCAD$

G SharesCAD$

H SharesCAD$

L SharesCAD$

Z SharesCAD$

Net asset value 30 April 2017 27,696,719 – 35,961,035 2,136,411 55,198,916 6,940,564 42,181,18130 April 2016 98,595,465 – 35,802,842 – 53,723,013 9,697,184 49,576,47630 April 2015 136,241,951 15,380 – – – – 57,789,225 Net asset value per share 30 April 2017 CAD$1.00 – CAD$1.00 CAD$1.00 CAD$1.00 CAD$1.01 CAD$1.0030 April 2016 CAD$1.00 – CAD$1.00 – CAD$1.00 CAD$1.00 CAD$1.0030 April 2015 CAD$1.00 CAD$1.00 – – – – CAD$1.00

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13. Asset Backed Securities

Below is a summary of HSBC Global Liquidity Funds Plc holdings in non-subsidiary unconsolidated structured entities:

As at 30 April 2017:

Structured Entity ("SE")

Line position in Statement of Financial Position

No of investments

Range of the size of the

SEs in Notional (Million)

Fair Value

% of total Financial Assets

at Fair Value through Profit or

Loss

Other


Asset Backed Commercial Papers

Financial assets at FVTPL 11

1,248.4 – 20,050.1 Stg£323,841,645 4.69%

Non recourse




807.9 – 71,760 US$1,261,413,416 4.86%

Non recourse

Combined Total Asset Backed Commercial Papers


807.9 – 71,760 Stg1,299,526,001 4.10%

Non recourse

As at 30 April 2016:

Structured Entity ("SE")

Line position in Statement of Financial Position

No of investments

Range of the size of the

SEs in Notional (Million)

Fair Value

% of total Financial Assets

at Fair Value through Profit or

Loss

Other




2,809.3 - 1,500,000 Stg£464,463,848 6.67%

Non recourse




807.7 – 3,612 US$435,488,194 2.00%

Non recourse




807.7 – 19,912.8 € 336,421,274 9.99%

Non recourse

Combined Total Asset Backed Commercial Papers


807.7 – 1,500,000 Stg1,025,003,482 4.16%

Non recourse

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HSBC Sterling Liquidity Fund has a percentage range of 0.17% - 1.84% notional holding out of the entire outstanding notional balances of the structured entities as at 30 April 2017 (30 April 2016: 0.00% - 1.78%). The sub-fund's maximum exposure to losses is the fair value of the Asset Backed Securities held on the Statement of Financial Position as at 30 April 2017. HSBC US Dollar Liquidity Fund has a percentage range of 0.06% - 9.31% notional holding out of the entire outstanding notional balances of the structured entities as at 30 April 2017 (30 April 2016: 1.38% - 6.69%). The sub-fund's maximum exposure to losses is the fair value of the Asset Backed Securities held on the Statement of Financial Position as at 30 April 2017. HSBC Euro Liquidity Fund has no holding in non-subsidiary unconsolidated structured entities as at 30 April 2017. The sub-fund had a percentage range of 0.04% - 3.10% notional holding out of the entire outstanding notional balances of the structured entities as at 30 April 2016. The sub-fund's maximum exposure to losses is the fair value of the Asset Backed Securities held on the Statement of Financial Position as at 30 April 2016. HSBC Canadian Dollar Liquidity Fund has no holdings in non-subsidiary unconsolidated structured entities as at 30 April 2017 (30 April 2016: nil).

During the year, the Company did not provide financial support to unconsolidated structured entities and has no intention of providing financial or other support. The Company’s maximum exposure to loss in the funds invested in asset backed commercial papers is limited to the carrying amounts shown in the table above.

14. Employees

The Company had no employees during the financial year end.

15. Significant Events Since the Financial Year End

New Sub-Funds

On 5 May 2017 HSBC Australian Dollar Liquidity Fund was approved by the Central Bank of Ireland.

Changes to the Prospectus

A revised Prospectus was filed and approved by the Central Bank of Ireland on 5 May 2017. A number of updates were implemented to reflect certain administrative changes.

A revised Prospectus was filed and approved by the Central Bank of Ireland on 29 June 2017 to update information for Isle of Man shareholders.

There have been no other significant events since the financial year end.

16. Commitments and Contingencies

The Company had no commitments and contingencies as at 30 April 2017 and 30 April 2016.

17. Transaction Costs

Transaction fees incurred by the sub-funds relating to purchase or sale of transferable securities, money market instruments or other eligible assets are mainly composed of Depositary fees.

Custody transaction costs are as follows:


30 April 2017


30 April 2016HSBC Sterling Liquidity Fund Stg£24,333 Stg£21,151HSBC US Dollar Liquidity Fund US$35,440 US$44,278HSBC Euro Liquidity Fund €42,906 €37,979HSBC Canadian Dollar Liquidity Fund CAD$12,281 CAD$17,501Combined Stg£95,364 Stg£87,489

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18. Fund Asset Regime

In response to the CBI publishing the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) Investor Money Regulations 2015 for Fund Service Providers (the “Investor Money Regulations” or “IMR”) in March 2015 (effective from 1 July 2016), the Directors undertook, together with the Administrator a review of the way in which subscription, distribution and redemption monies are channelled to and from the Company. As a result of this review, subscription and redemption monies are (effective from 1 July 2016), channelled through an umbrella cash collection account in the name of the Depositary on behalf of the Trust. Pending issue of the Shares and/or payment of subscription proceeds to an account in the name of the Depositary on behalf of the Company, and pending payment of redemption proceeds or distributions, the relevant investor will be an unsecured creditor of the relevant portfolio in respect of amounts paid by or due to it.

19. Approval of Financial Statements

The Directors approved the Financial Statements on 18 August 2017.

Portfolio Statements

79


Nominal

Value Security Description Fair Value Stg£ % of Net

Assets

Transferable securities admitted to official stock exchange listing

Corporate Bonds –% (30 April 2016: 8.84%) (a)

Floating Rate Notes 3.92% (30 April 2016: –%) (a) 8,000,000 Bank of Nova Scotia/The FRN 07/02/2018 7,998,768 0.12 30,000,000 Commonwealth Bank of Australia FRN 26/05/2017 29,999,901 0.44 12,300,000 Commonwealth Bank of Australia FRN 25/08/2017 12,299,613 0.18 50,000,000 Commonwealth Bank of Australia FRN 14/12/2017 49,998,452 0.72 30,000,000 National Australia Bank Ltd FRN 19/07/2017 29,999,359 0.44 15,000,000 National Australia Bank Ltd FRN 13/09/2017 15,000,000 0.22 40,000,000 Royal Bank of Canada/London FRN 31/08/2017 40,000,000 0.58 25,000,000 Westpac Banking Corp FRN 11/05/2017 24,999,877 0.36 30,000,000 Westpac Banking Corp FRN 14/07/2017 30,000,000 0.43 30,000,000 Westpac Banking Corp FRN 07/02/2018 30,000,000 0.43 Total Floating Rate Notes 270,295,970 3.92

Government Bonds –% (30 April 2016: 0.07%) (a)

Transferable securities admitted to official stock exchange listing 3.92% (30 April 2016: 8.91%) 270,295,970 3.92

Transferable securities dealt on another regulated market

Commercial Papers 21.91% (30 April 2016 : 29.29%) (b) 50,000,000 Acoss 0.25% 09/05/2017 49,997,221 0.72 84,500,000 Acoss 0.27% 06/07/2017 84,459,398 1.22 50,000,000 Agricultural Bank of China 0.53% 09/06/2017 49,971,928 0.72 48,000,000 Agricultural Bank of China 0.54% 15/06/2017 47,968,219 0.70 55,000,000 Banque Fédérative Du Crédit Mutuel 0.56% 24/05/2017 54,980,663 0.80 30,000,000 Banque Fédérative Du Crédit Mutuel 0.52% 05/06/2017 29,985,089 0.43 150,000,000 Caisse Des Depots Et Consignations 0.29% 21/08/2017 149,865,598 2.17 101,000,000 Caisse Des Depots Et Consignations 0.33% 08/09/2017 100,882,399 1.46 38,000,000 Collateralized Commercial Paper Co LLC 0.47% 16/05/2017 37,992,585 0.55 50,000,000 Collateralized Commercial Paper Co LLC 0.49% 14/08/2017 49,928,944 0.72 6,000,000 Collateralized Commercial Paper Co LLC 0.47% 06/09/2017 5,990,211 0.09 65,000,000 DZ Bank 0.26% 21/07/2017 64,962,991 0.94 60,000,000 DZ Bank 0.32% 11/09/2017 59,929,595 0.87 63,500,000 Erste Abwicklungsanstalt 0.31% 13/06/2017 63,476,642 0.92 60,000,000 Erste Abwicklungsanstalt 0.30% 14/06/2017 59,978,110 0.87 40,000,000 Erste Abwicklungsanstalt 0.30% 11/07/2017 39,977,010 0.58 10,000,000 Export-Import Bank of Korea 0.48% 31/05/2017 9,996,037 0.15 33,000,000 LMA S.A. 0.25% 09/05/2017 32,998,166 0.48 50,000,000 LMA S.A. 0.34% 07/06/2017 49,982,754 0.72 45,000,000 LMA S.A. 0.32% 10/07/2017 44,972,800 0.65 23,000,000 Matchpoint Finance Plc 0.48% 19/05/2017 22,994,547 0.33 28,000,000 Matchpoint Finance Plc 0.41% 14/08/2017 27,967,335 0.41 11,000,000 MetLife Short Term Funding 0.46% 08/06/2017 10,994,771 0.16 8,000,000 MetLife Short Term Funding 0.38% 06/10/2017 7,986,946 0.12 10,000,000 OP Corporate Bank 0.43% 11/05/2017 9,998,819 0.15 40,000,000 OP Corporate Bank 0.25% 30/06/2017 39,983,846 0.58 35,000,000 OP Corporate Bank 0.37% 24/07/2017 34,970,597 0.51 47,000,000 People's Republic of China 0.48% 08/06/2017 46,976,446 0.68 50,000,000 People's Republic of China 0.48% 09/06/2017 49,974,265 0.72 51,015,000 Regency Assets Ltd 0.17% 04/05/2017 51,014,301 0.74 25,000,000 Toyota Finance Australia 0.42% 09/06/2017 24,988,703 0.36 15,000,000 Toyota Finance Australia 0.32% 21/08/2017 14,985,421 0.22

80

Nominal


Assets

Commercial Papers 21.91% (30 April 2016: 29.29%) (b ) 20,000,000 Toyota Kreditbank GmbH 0.47% 22/05/2017 19,994,643 0.29 13,000,000 Toyota Motor Finance 0.21% 30/05/2017 12,997,807 0.19 5,000,000 Toyota Motor Finance 0.32% 14/08/2017 4,995,447 0.07 18,000,000 Toyota Motor Finance 0.35% 14/08/2017 17,981,825 0.26 10,000,000 Toyota Motor Finance 0.36% 14/08/2017 9,989,759 0.14 15,000,000 Toyota Motor Finance 0.38% 14/08/2017 14,983,788 0.22 Total Commercial Papers 1,512,075,626 21.91

Transferable securities dealt on another regulated market 21.91% (30 April 2016: 29.29%) 1,512,075,626 21.91

Other Transferable Securities

Certificates of Deposit 49.97% (30 April 2016: 43.6 4%) (c) 95,000,000 Abbey National Treasury Plc 0.29% 06/06/2017 95,000,000 1.38 35,000,000 Abbey National Treasury Plc 0.24% 03/07/2017 34,985,740 0.51 25,000,000 Agricultural Bank of China 0.55% 24/05/2017 24,991,272 0.36

70,000,000 Australia & New Zealand Banking Group Ltd 0.28% 08/05/2017 69,996,207 1.02

50,000,000 Bank of America 0.48% 31/07/2017 50,000,000 0.72 45,000,000 Bank of America 0.47% 08/08/2017 45,000,000 0.65 35,000,000 Bank of China Ltd 0.49% 19/06/2017 34,976,786 0.51 50,000,000 Bank of Montreal 0.32% 23/05/2017 50,000,000 0.72 45,000,000 Bank of Tokyo Mitsubishi UFJ Ltd 0.53% 04/05/2017 45,000,000 0.65 30,000,000 Bank of Tokyo Mitsubishi UFJ Ltd 0.53% 08/05/2017 30,000,000 0.43 45,000,000 Bank of Tokyo Mitsubishi UFJ Ltd 0.49% 08/08/2017 44,939,738 0.65 30,000,000 Bank of Tokyo Mitsubishi UFJ Ltd 0.42% 27/10/2017 29,938,683 0.44 40,000,000 Banque Fédérative du Crédit Mutuel 0.43% 06/09/2017 39,940,283 0.58 45,000,000 Banque Fédérative du Crédit Mutuel 0.43% 02/10/2017 44,918,126 0.65 30,000,000 Banque Fédérative Du Crédit Mutuel 0.46% 10/07/2017 29,973,690 0.44 100,000,000 BNP Paribas SA 0.00% 02/05/2017 100,000,000 1.45 55,000,000 BNP Paribas SA 0.22% 12/05/2017 54,996,384 0.80 60,000,000 BNP Paribas SA 0.48% 10/07/2017 60,000,000 0.87 60,000,000 BNP Paribas SA 0.45% 08/08/2017 60,000,000 0.87 20,000,000 BNP Paribas SA 0.44% 29/09/2017 19,963,915 0.29 60,000,000 BNP Paribas SA 0.43% 06/10/2017 60,000,000 0.87 60,000,000 BRED 0.22% 03/05/2017 59,999,278 0.87 40,000,000 BRED 0.41% 10/07/2017 39,968,274 0.58 15,000,000 China Construction Bank Corp 0.45% 10/05/2017 14,998,325 0.22 52,000,000 China Construction Bank Corp 0.26% 18/05/2017 52,000,000 0.75 30,000,000 China Construction Bank Corp 0.49% 06/06/2017 29,985,635 0.44 45,000,000 China Construction Bank Corp 0.52% 08/06/2017 44,975,856 0.65 30,000,000 Commonwealth Bank of Australia 0.44% 08/02/2018 30,000,000 0.43 35,000,000 Commonwealth Bank of Australia 0.36% 16/03/2018 35,000,000 0.51 40,000,000 Cooperatieve Rabobank UA 0.51% 08/05/2017 40,000,000 0.58 40,000,000 Cooperatieve Rabobank UA 0.40% 31/07/2017 40,000,000 0.58 25,000,000 Cooperatieve Rabobank UA 0.40% 07/08/2017 25,000,000 0.36 45,000,000 Cooperatieve Rabobank UA 0.43% 12/04/2018 45,000,000 0.65 75,000,000 Crédit Agricole 0.22% 02/05/2017 75,000,000 1.09 60,000,000 Crédit Agricole 0.40% 01/06/2017 60,000,000 0.87 25,000,000 Crédit Agricole 0.33% 06/06/2017 25,000,000 0.36 45,000,000 Crédit Agricole 0.44% 03/08/2017 45,000,000 0.65 55,000,000 DZ Bank 0.43% 01/06/2017 54,979,703 0.80 25,000,000 Industrial & Commercial Bank of China Ltd 0.40% 30/06/2017 24,983,448 0.36 30,000,000 Industrial & Commercial Bank of China Ltd 0.40% 03/07/2017 29,979,129 0.44 20,000,000 ING Bank 0.35% 15/05/2017 20,000,000 0.29 8,000,000 ING Bank 0.34% 07/06/2017 7,997,241 0.12 20,000,000 Mizuho Corporate Bank Ltd 0.32% 06/07/2017 20,000,000 0.29 46,000,000 Mizuho Corporate Bank Ltd 0.32% 11/07/2017 46,000,000 0.67 25,000,000 National Australia Bank Ltd 0.47% 12/01/2018 25,000,000 0.36 55,000,000 National Australia Bank Ltd 0.41% 06/04/2018 55,000,000 0.80 80,000,000 National Bank of Abu Dhabi 0.22% 30/05/2017 80,000,000 1.16 85,000,000 National Bank of Kuwait 0.13% 03/05/2017 84,999,395 1.23

81

Nominal


Assets

Certificates of Deposit 49.97% (30 April 2016: 43.6 4%) (c) 65,000,000 Nationwide Building Society 0.26% 04/07/2017 65,000,000 0.94 65,000,000 Nationwide Building Society 0.26% 12/07/2017 65,000,000 0.94 100,000,000 Nordea Bank 0.39% 25/05/2017 99,974,374 1.45 31,000,000 Nordea Bank 0.41% 07/06/2017 31,000,000 0.45 10,000,000 Norinchukin Bank 0.32% 16/06/2017 9,995,935 0.15 25,000,000 Norinchukin Bank 0.32% 12/07/2017 24,984,451 0.36 126,000,000 Oversea-Chinese Banking Corp 0.22% 16/06/2017 126,000,000 1.83 100,000,000 Qatar National Bank 0.25% 12/05/2017 99,992,604 1.45 70,000,000 Societe Generale 0.44% 31/10/2017 70,000,000 1.01 40,000,000 Standard Chartered Bank 0.50% 06/07/2017 40,000,000 0.58 50,000,000 Standard Chartered Bank 0.47% 01/08/2017 50,000,000 0.72 15,000,000 Standard Chartered Bank 0.50% 09/08/2017 15,000,000 0.22 25,000,000 Standard Chartered Bank 0.43% 11/09/2017 24,961,208 0.36 60,000,000 Sumitomo Mitsui Banking Corporation 0.30% 12/07/2017 59,965,012 0.87 40,000,000 Sumitomo Mitsui Banking Corporation 0.47% 03/08/2017 39,951,196 0.58 45,000,000 Sumitomo Mitsui Banking Corporation 0.46% 10/08/2017 44,942,190 0.65 52,000,000 Sumitomo Mitsui Trust Bank Ltd 0.32% 07/06/2017 52,000,000 0.75 30,000,000 Sumitomo Mitsui Trust Bank Ltd 0.30% 09/06/2017 30,000,000 0.43 50,000,000 Sumitomo Mitsui Trust Bank Ltd 0.27% 06/07/2017 50,000,000 0.72 60,000,000 Svenska Handelsbanken AB 0.28% 22/05/2017 60,000,000 0.87 36,000,000 Svenska Handelsbanken AB 0.25% 29/06/2017 36,000,000 0.52 43,000,000 Svenska Handelsbanken AB 0.25% 30/06/2017 43,000,000 0.62 60,000,000 Toronto - Dominion Bank 0.44% 07/02/2018 60,000,000 0.87 65,000,000 Toronto - Dominion Bank 0.44% 16/02/2018 65,000,000 0.94 50,000,000 UBS AG 0.45% 29/08/2017 49,926,809 0.72 Total Certificates of Deposit 3,448,180,887 49.97

Other Transferable Securities 49.97% (30 April 2016: 43.64%) 3,448,180,887 49.97

Deposits with Credit Institutions Time Deposits 24.19% (30 April 2016: 18.14%) (d) 300,000,000 BNP Paribas SA 0.17% 02/05/2017 300,000,000 4.35 580,000,000 BRED 0.22% 02/05/2017 580,000,000 8.41 228,800,000 Cooperatieve Rabobank UA 0.20% 02/05/2017 228,800,000 3.31 200,000,000 ING Bank 0.18% 02/05/2017 200,000,000 2.90 200,000,000 Sumitomo Mitsui Banking Corporation 0.18% 02/05/2017 200,000,000 2.90 160,000,000 Sumitomo Mitsui Trust Bank Ltd 0.21% 02/05/2017 160,000,000 2.32

Total Time Deposits 1,668,800,000 24.19

Total Deposits with Credit Institutions 24.19% (30 April 2016: 18.14%) 1,668,800,000 24.19

Total Financial Assets at Fair Value through Profit or Los s 99.99% (30 April 2016: 99.98%) (Cost Stg£6,899,352,4 83) 6,899,352,483 99.99

Other Net Assets 380,089 0.01

Total Net Assets Attributable to Holders of Redeema ble Participating Shares 6,899,732,572 100.00

(a) Transferable securities admitted to official stock exchange listing represent 3.92% of total net assets and 3.92% of total assets.

(b) Transferable securities dealt on another regulated market represent 21.91% of total net assets and 21.91% of total assets.

(c) Ancillary liquid assets and investment techniques and instruments as defined in Regulation 48 of the UCITS Regulations represent 49.97% of total net assets and 49.96% of total assets.

(d) Deposits with Credit Institutions represent 24.19% of total net assets and 24.18% of total assets.

82

es

und


Nominal

Value Security Description Fair Value US$ % of Net

Assets


Corporate Bonds –% (30 April 2016: 0.97%) (a)

Floating Rate Notes 0.48% (30 April 2016: –%) (a) 125,000,000 Bank of America FRN 11/07/2017 125,000,000 0.48 Total Floating Rate Notes 125,000,000 0.48

Treasury Notes/Bonds –% (30 April 2016: 4.76%) (a)



Commercial Papers 36.93% (30 April 2016: 19.80%) (b ) 25,000,000 Alpine Sec Ltd 1.07% 06/06/2017 24,972,500 0.10 75,220,000 Antalis 0.48% 02/05/2017 75,218,015 0.29 41,580,000 Antalis 1.17% 12/06/2017 41,521,788 0.16 45,000,000 Antalis 1.23% 16/06/2017 44,928,125 0.17


150,000,000 Bank of Nova Scotia 1.37% 10/07/2017 150,000,000 0.58 125,000,000 Bank of Nova Scotia 1.30% 02/04/2018 125,000,000 0.48 95,000,000 Bank of Nova Scotia 1.29% 20/04/2018 95,000,000 0.37 47,500,000 Banque ET Caisse D'Epargne DE 0.92% 08/05/2017 47,490,302 0.18 103,100,000 Banque ET Caisse D'Epargne DE 0.95% 10/05/2017 103,072,936 0.40 35,000,000 Banque ET Caisse D'Epargne DE 1.15% 01/08/2017 34,896,244 0.13 120,000,000 Banque ET Caisse D'Epargne DE 1.16% 01/08/2017 119,641,200 0.46 15,000,000 BNZ International Funding 1.64% 04/10/2017 15,026,003 0.06 200,000,000 BPCE S.A. 1.13% 05/07/2017 199,588,333 0.77 71,500,000 Caisse Centrale Quebec 0.99% 09/06/2017 71,421,767 0.28 75,000,000 Caisse Des Depots Et Consignations 1.13% 01/08/2017 74,781,500 0.29 115,000,000 Canadian Imperial Bank of Commerce 1.34% 01/06/2017 115,000,000 0.44 110,000,000 Canadian Imperial Bank of Commerce 1.37% 27/06/2017 110,000,000 0.42 36,000,000 Canadian Imperial Bank of Commerce 1.21% 24/07/2017 35,897,520 0.14 75,000,000 Cancara Asset Securitisation Ltd 1.11% 03/07/2017 74,851,688 0.29 64,000,000 China Construction Bank Corp 0.96% 23/05/2017 63,960,889 0.25 115,000,000 Collateralized Commercial Paper Co LLC 1.46% 15/05/2017 115,000,000 0.44 87,000,000 Collateralized Commercial Paper Co LLC 1.40% 05/06/2017 87,000,000 0.34 35,000,000 Collateralized Commercial Paper Co LLC 1.45% 03/07/2017 35,000,000 0.14 80,000,000 Collateralized Commercial Paper Co LLC 0.99% 15/09/2017 80,000,000 0.31 115,000,000 Collateralized Commercial Paper Co LLC 1.36% 02/10/2017 114,330,956 0.44 75,000,000 Commonwealth Bank 1.48% 11/07/2017 75,000,000 0.29 175,000,000 Commonwealth Bank 1.61% 15/09/2017 175,000,000 0.68 95,000,000 Commonwealth Bank of Australia 1.47% 27/11/2017 95,000,000 0.37 90,000,000 Commonwealth Bank of Australia 1.49% 28/12/2017 90,000,000 0.35 98,000,000 Commonwealth Bank of Australia 1.29% 23/04/2018 98,000,000 0.38 110,000,000 Crédit Agricole 1.19% 03/07/2017 109,767,075 0.42 190,000,000 Crédit Agricole 1.20% 25/08/2017 189,259,211 0.73 150,000,000 Crédit Suisse 1.14% 28/07/2017 149,578,333 0.58 100,000,000 DBS Bank Ltd 1.36% 09/06/2017 100,000,000 0.39 156,200,000 DBS Bank Ltd 1.11% 20/06/2017 155,955,728 0.60 100,000,000 DBS Bank Ltd 1.11% 22/06/2017 99,836,778 0.39 100,000,000 DBS Bank Ltd 1.10% 03/07/2017 99,804,000 0.39 1,035,030,000 DZ Bank 0.00% 01/05/2017 1,035,029,999 3.99

83

Nominal


Assets

Commercial Papers 36.93% (30 April 2016: 19.80%) (b ) 100,000,000 Erste Abwicklungsanstalt 1.00% 01/06/2017 99,911,306 0.39 200,000,000 Erste Abwicklungsanstalt 1.23% 09/08/2017 199,311,111 0.77 75,000,000 Erste Abwicklungsanstalt 1.21% 07/09/2017 75,000,000 0.29

140,000,000 Federation des caisses Desjardins du Quebec 0.73% 05/05/2017 139,985,844 0.54




150,000,000 JPMorgan Securities LLC 0.46% 02/05/2017 149,996,167 0.58 190,000,000 LMA S.A. 1.12% 05/06/2017 189,787,569 0.73 34,015,000 Manhattan Asset Funding Company LLC 0.96% 23/05/2017 33,994,213 0.13 24,500,000 Manhattan Asset Funding Company LLC 0.99% 06/06/2017 24,475,010 0.09 64,250,000 Matchpoint Finance Plc 1.15% 14/06/2017 64,158,123 0.25 175,000,000 National Australia Bank Ltd 1.54% 10/10/2017 175,000,000 0.67 80,000,000 National Australia Bank Ltd 1.50% 22/12/2017 80,000,000 0.31 200,000,000 National Australia Bank Ltd 1.33% 01/03/2018 200,000,000 0.77 160,000,000 National Bank of Canada 0.93% 18/05/2017 159,925,956 0.62 150,000,000 Nationwide Building Society 1.13% 19/06/2017 149,765,208 0.58 137,350,000 Natixis 0.53% 02/05/2017 137,345,994 0.53 105,500,000 Natixis 1.15% 31/07/2017 105,191,984 0.41 350,000,000 NRW Bank 0.98% 15/06/2017 349,562,500 1.35 75,000,000 Old Line Funding LLC 1.04% 06/06/2017 74,919,750 0.29 90,000,000 Old Line Funding LLC 1.13% 27/06/2017 90,000,000 0.35 50,000,000 Old Line Funding LLC 1.13% 30/06/2017 50,000,000 0.19 50,000,000 Old Line Funding LLC 1.14% 25/07/2017 49,864,236 0.19 50,000,000 Old Line Funding LLC 1.13% 28/07/2017 49,860,667 0.19 35,000,000 Old Line Funding LLC 0.00% 02/08/2017 34,896,925 0.13 70,000,000 Ontario Teachers Finance Trust 0.99% 12/06/2017 69,917,517 0.27 120,000,000 Oversea-Chinese Banking Corp 1.21% 01/06/2017 120,000,000 0.46 70,000,000 Oversea-Chinese Banking Corp 1.01% 02/06/2017 69,935,289 0.27 200,000,000 Societe Generale 0.00% 01/05/2017 200,000,000 0.77 97,000,000 Standard Chartered Bank 1.33% 07/09/2017 96,537,714 0.37 60,000,000 Sumitomo Mitsui Trust Bank Ltd 0.00% 01/05/2017 60,000,000 0.23 225,000,000 Toronto - Dominion Bank 1.12% 22/06/2017 224,629,500 0.87 49,000,000 Toronto - Dominion Bank 1.08% 23/06/2017 48,920,647 0.19 75,000,000 Toyota Credit Canada Inc. 1.06% 05/07/2017 74,855,104 0.29 75,000,000 Toyota Credit Canada Inc. 1.06% 06/07/2017 74,852,875 0.29 200,000,000 Toyota Credit Canada Inc. 1.28% 09/08/2017 200,000,000 0.77 75,000,000 United Overseas Bank 1.00% 22/05/2017 74,954,063 0.29 42,000,000 United Overseas Bank 0.96% 23/05/2017 41,974,333 0.16 100,000,000 United Overseas Bank 1.01% 07/06/2017 99,893,111 0.39 100,000,000 United Overseas Bank 1.15% 08/06/2017 99,875,444 0.39 100,000,000 United Overseas Bank 1.17% 12/06/2017 99,860,000 0.39 51,650,000 United Overseas Bank 1.23% 24/07/2017 51,500,559 0.20 50,000,000 Westpac Banking Corp 1.59% 22/09/2017 50,000,000 0.19 100,000,000 Westpac Banking Corp 1.33% 02/11/2017 100,000,000 0.39 47,000,000 Westpac Banking Corp 1.52% 02/11/2017 47,000,316 0.18 125,000,000 Westpac Banking Corp 1.50% 15/12/2017 125,000,000 0.48 10,000,000 Westpac Banking Corp 1.46% 26/01/2018 10,013,195 0.04 Total Commercial Papers 9,561,261,635 36.93

84

Nominal


Assets

Corporate Bonds –% (30 April 2016: 0.22%) (b)

Floating Rate Notes 0.35% ( 30 April 2016: 2.14%) (b) 90,000,000 JPMorgan Chase Bank NA FRN 28/07/2017 90,015,367 0.35 Total Floating Rate Notes 90,015,367 0.35



Certificates of Deposit 39.06% (30 April 2016: 62.3 9%) (c) 400,000,000 Abbey National Treasury Plc 0.91% 03/05/2017 400,000,000 1.55 200,000,000 Agricultural Bank of China 1.00% 02/05/2017 200,000,000 0.77 50,000,000 ASB Finance Ltd 1.46% 19/05/2017 50,000,000 0.19 140,000,000 Bank of America 1.31% 04/08/2017 140,000,000 0.54 189,350,000 Bank of Montreal 1.37% 13/06/2017 189,350,000 0.73 150,000,000 Bank of Montreal 1.13% 16/06/2017 150,000,000 0.58 55,000,000 Bank of Montreal 1.38% 03/07/2017 55,000,000 0.21 100,000,000 Bank of Montreal 1.38% 10/07/2017 100,000,000 0.39 160,000,000 Bank of Montreal 1.58% 04/10/2017 160,000,000 0.62 50,000,000 Bank of Nova Scotia 1.38% 23/06/2017 50,000,000 0.19 125,000,000 Bank of Nova Scotia 1.58% 27/09/2017 125,000,000 0.48 90,000,000 Bank of Nova Scotia 1.58% 06/10/2017 90,000,000 0.35 42,000,000 Bank of Tokyo Mitsubishi UFJ Ltd 1.10% 06/06/2017 42,001,605 0.16 100,000,000 Bank of Tokyo Mitsubishi UFJ Ltd 1.33% 10/08/2017 100,000,000 0.39 98,000,000 Bank of Tokyo Mitsubishi UFJ Ltd 1.40% 02/10/2017 98,000,000 0.38 100,000,000 Bank of Tokyo-Mitsubishi UFJ Ltd 1.49% 16/05/2017 100,000,000 0.39 123,000,000 Bank of Tokyo-Mitsubishi UFJ Ltd 1.40% 03/07/2017 123,000,000 0.48 225,000,000 BNP Paribas 1.45% 22/06/2017 225,000,000 0.87 75,000,000 BNP Paribas 1.37% 31/08/2017 75,032,445 0.29 150,000,000 BNP Paribas 1.35% 20/09/2017 150,000,000 0.58 33,250,000 BNP Paribas 1.31% 25/09/2017 33,276,804 0.13 180,000,000 BNP Paribas 1.39% 23/03/2018 180,000,000 0.70 500,000,000 China Construction Bank Corp 1.20% 03/05/2017 500,000,000 1.94 35,000,000 Commonwealth Bank of Australia 1.29% 02/02/2018 35,000,000 0.14 200,000,000 Crédit Agricole 1.00% 03/05/2017 200,000,000 0.77 125,000,000 Credit Industriel et Commercial 1.64% 04/05/2017 125,000,000 0.48 275,000,000 Credit Industriel et Commercial 1.38% 03/07/2017 275,000,000 1.06 75,000,000 Credit Industriel et Commercial 1.72% 03/07/2017 75,009,553 0.28 35,000,000 Credit Industriel et Commercial 1.42% 18/07/2017 35,000,000 0.14 225,000,000 Credit Industriel et Commercial 1.21% 05/10/2017 225,000,000 0.87 100,000,000 Credit Industriel et Commercial 1.38% 07/03/2018 100,000,000 0.39 70,000,000 DNB Bank ASA 1.03% 01/06/2017 70,000,000 0.27 46,000,000 DZ Bank 1.04% 30/05/2017 46,005,428 0.18 165,000,000 JPMorgan Chase Bank NA 1.45% 05/01/2018 165,000,000 0.64 140,000,000 KBC Bank NV 1.07% 02/05/2017 140,000,000 0.54 54,000,000 KBC Bank NV 1.17% 23/06/2017 54,000,000 0.21

30,000,000 Mitsubishi UFJ Trust and Banking Corporation 1.58% 01/06/2017 30,011,706 0.11

23,000,000 Mizuho Corporate Bank 1.06% 09/05/2017 23,000,203 0.09 95,000,000 Nordea Bank Finland Plc 1.52% 13/06/2017 95,000,000 0.37 115,000,000 Norinchukin Bank 1.02% 12/05/2017 115,000,000 0.44 60,000,000 Norinchukin Bank 1.06% 06/06/2017 60,000,000 0.23 150,000,000 Norinchukin Bank 1.03% 14/06/2017 150,000,000 0.58 150,000,000 Norinchukin Bank 1.12% 27/07/2017 150,000,000 0.58 150,000,000 Oversea-Chinese Banking Corp 1.05% 14/06/2017 150,000,000 0.58 65,000,000 Oversea-Chinese Banking Corp 1.13% 19/06/2017 65,000,000 0.25

85

Nominal


Assets

Certificates of Deposit 39.06% (30 April 2016: 62.3 9%) (c) 150,000,000 Qatar National Bank SAQ 0.98% 25/05/2017 149,898,087 0.59 152,000,000 Rabobank Nederland NV 1.48% 25/05/2017 152,000,000 0.59 50,000,000 Rabobank Nederland NV 1.32% 31/08/2017 50,014,006 0.19 100,000,000 Rabobank Nederland NV 1.46% 01/02/2018 100,000,000 0.39 20,000,000 Rabobank Nederland NV 1.49% 13/02/2018 20,032,317 0.07 83,000,000 Royal Bank of Canada 1.56% 29/06/2017 83,000,000 0.32 100,000,000 Royal Bank of Canada 1.55% 03/07/2017 100,000,000 0.39 120,000,000 Royal Bank of Canada 1.45% 19/12/2017 120,000,000 0.46 150,000,000 Royal Bank of Canada 1.51% 22/12/2017 150,000,000 0.58 39,000,000 Royal Bank of Canada 1.49% 05/01/2018 39,000,000 0.15 28,000,000 Royal Bank of Canada 1.31% 16/03/2018 28,000,000 0.11 47,000,000 Skandinaviska Enskilda Banken AB 1.02% 23/05/2017 46,999,894 0.18 150,000,000 Societe Generale 1.03% 15/05/2017 150,000,000 0.58 220,000,000 Societe Generale 1.27% 01/08/2017 220,000,000 0.85 100,000,000 Standard Chartered Bank 1.03% 15/05/2017 100,000,000 0.39 95,000,000 Standard Chartered Bank 1.60% 01/06/2017 95,000,000 0.37 200,000,000 Sumitomo Mitsui Banking Corporation 0.92% 03/05/2017 200,000,000 0.77 15,000,000 Sumitomo Mitsui Banking Corporation 1.59% 08/05/2017 15,001,457 0.06 215,000,000 Sumitomo Mitsui Banking Corporation 1.58% 05/07/2017 215,000,000 0.83 200,000,000 Sumitomo Mitsui Banking Corporation 1.26% 05/10/2017 200,000,000 0.77 120,000,000 Sumitomo Mitsui Trust Bank Ltd 1.00% 07/06/2017 120,000,000 0.46 110,000,000 Sumitomo Mitsui Trust Bank Ltd 1.10% 14/06/2017 110,000,000 0.42 21,176,000 Svenska Handelsbanken AB 1.29% 01/08/2017 21,190,720 0.08 5,800,000 Toronto-Dominion Bank 1.60% 12/07/2017 5,804,981 0.02 15,000,000 Toronto-Dominion Bank 1.53% 10/08/2017 15,018,338 0.06 175,000,000 Toronto-Dominion Bank 1.66% 16/10/2017 175,000,000 0.68 120,000,000 Toronto-Dominion Bank 1.51% 10/01/2018 120,000,000 0.46 170,000,000 Toronto-Dominion Bank 1.31% 20/03/2018 170,000,000 0.66 100,000,000 UBS AG 1.45% 02/05/2017 100,000,000 0.39 200,000,000 UBS AG 1.38% 03/07/2017 200,000,000 0.76 90,000,000 UBS AG 1.44% 21/08/2017 90,000,000 0.35 100,000,000 UBS AG 1.39% 07/03/2018 100,000,000 0.39 200,000,000 Wells Fargo Bank NA 1.45% 03/05/2017 200,000,000 0.77 50,000,000 Wells Fargo Bank NA 1.40% 16/05/2017 50,000,000 0.19 50,000,000 Wells Fargo Bank NA 1.63% 22/09/2017 50,052,870 0.19 100,000,000 Wells Fargo Bank NA 1.55% 22/11/2017 100,000,000 0.39 100,000,000 Wells Fargo Bank NA 1.51% 22/12/2017 100,000,000 0.39 36,000,000 Wells Fargo Bank NA 1.50% 05/01/2018 36,000,000 0.14 125,000,000 Wells Fargo Bank NA 1.49% 01/02/2018 125,000,000 0.48 110,000,000 Wells Fargo Bank NA 1.45% 09/02/2018 110,000,000 0.42 60,000,000 Westpac Banking Corp 1.58% 28/09/2017 60,045,162 0.22 100,000,000 Westpac Banking Corp 1.33% 07/11/2017 100,000,000 0.39 Total Certificates of Deposit 10,110,745,576 39.06


Deposits with Credit Institutions Time Deposits 23.34% (30 April 2016: 9.68%) (d)

500,000,000 ABN Amro Bank 0.88% 01/05/2017 500,000,000 1.93


500,000,000 Bank of Tokyo Mitsubishi UFJ Ltd 0.84% 01/05/2017 500,000,000 1.93 950,000,000 China Construction Bank Corp 0.95% 01/05/2017 950,000,000 3.66 172,000,000 Crédit Agricole 0.83% 01/05/2017 172,000,000 0.66

86

Nominal


Assets Time Deposits 23.34% (30 April 2016: 9.68%) (d) 225,000,000 DNB Bank ASA 0.82% 01/05/2017 225,000,000 0.87 950,000,000 Industrial & Commercial Bank of China Ltd 0.95% 01/05/2017 950,000,000 3.67 105,000,000 National Bank of Kuwait 0.85% 01/05/2017 105,000,000 0.41 105,000,000 National Bank of Abu Dhabi 0.85% 01/05/2017 105,000,000 0.41 535,000,000 Natixis 0.82% 01/05/2017 535,000,000 2.07 650,000,000 Nordea Bank 0.83% 01/05/2017 650,000,000 2.51 600,000,000 Swedbank AB 0.83% 01/05/2017 600,000,000 2.32



Total Financial Assets at Fair Value through Profit or Loss 100.16% (30 April 2016: 99.96%) (Cost US$25,929,022, 578) 25,929,022,578 100.16

Other Net Liabilities (40,779,102) (0.16)






87

&


Nominal

Value Security Description Fair Value € % of Net

Assets


Corporate Bonds 6.15% (30 April 2016: 9.44%) (a) 900,000 Banque Federative du Credit Mutuel SA 1.63% 11/01/2018 911,875 0.02 9,211,000 BNP Paribas SA 2.88% 27/11/2017 9,377,419 0.17 8,543,000 BNP Paribas SA 1.50% 12/03/2018 8,672,394 0.16 35,517,000 Commonwealth Bank of Australia 4.25% 06/04/2018 37,020,730 0.67 54,000,000 Cooperatieve Rabobank UA 4.75% 15/01/2018 55,931,850 1.02 3,330,000 GE Capital European Funding Unlimited Co 3.63% 15/06/2017 3,345,443 0.06 7,857,000 GE Capital European Funding Unlimited Co 5.38% 16/01/2018 8,170,770 0.15 44,800,000 Metropolitan Life Global Funding I 4.63% 16/05/2017 44,883,598 0.81 38,690,000 Nordea Bank AB 2.25% 05/10/2017 39,108,127 0.71 33,858,000 Nordea Bank AB 1.38% 12/04/2018 34,397,541 0.62 1,000,000 Societe Generale SA 3.13% 21/09/2017 1,013,221 0.02 55,000,000 Standard Chartered Bank 0.36% 19/06/2017 55,047,991 1.00 40,879,000 Toyota Motor Credit Corp 1.25% 01/08/2017 41,029,287 0.74 Total Corporate Bonds 338,910,246 6.15

Floating Rate Notes 3.39% (30 April 2016: –%) (a) 10,000,000 ASB Finance Ltd/London FRN 03/07/2017 10,007,063 0.18 20,000,000 Australia & New Zealand Banking Group Ltd FRN 30/01/2018 20,064,909 0.36 8,500,000 Bank of Montreal FRN 08/09/2017 8,506,429 0.15 34,000,000 Bank of Nova Scotia/The FRN 17/03/2018 34,261,349 0.62 7,000,000 Bank of Nova Scotia/The FRN 20/04/2018 7,057,773 0.13 10,000,000 Banque Federative du Credit Mutuel SA FRN 22/05/2017 10,002,834 0.18 400,000 Banque Federative du Credit Mutuel SA FRN 19/01/2018 400,808 0.01 21,000,000 Caisse Centrale Desjardins FRN 15/09/2017 21,029,026 0.38 2,100,000 Canadian Imperial Bank of Commerce FRN 08/09/2017 2,102,905 0.04 34,648,000 National Australia Bank Ltd FRN 16/01/2018 34,726,762 0.63 18,500,000 Toronto-Dominion Bank/The FRN 16/06/2017 18,506,566 0.34 20,218,000 Toyota Motor Credit Corp FRN 08/09/2017 20,237,955 0.37 Total Floating Rate Notes 186,904,379 3.39

Government Bonds –% (30 April 2016: 0.10%) (a)

Treasury Bills 2.18% (30 April 2016: –%) (a) 25,000,000 Belgium Treasury Bill 0.00% 08/02/2018 25,119,015 0.45 95,000,000 France Treasury Bill BTF 0.00% 06/12/2017 95,328,193 1.73 Total Treasury Bills 120,447,208 2.18



Commercial Papers 27.09% (30 April 2016: 37.17%) (b ) 300,000,000 Acoss (0.40)% 22/05/2017 300,070,860 5.44 23,000,000 Agricultural Bank of China (0.22)% 10/07/2017 23,009,704 0.42 20,000,000 Antalis 0.00% 02/05/2017 20,000,000 0.36 11,000,000 Antalis (0.24)% 09/05/2017 11,000,578 0.20 34,500,000 Antalis (0.27)% 15/05/2017 34,503,614 0.63 20,000,000 Antalis (0.25)% 20/06/2017 20,007,081 0.36 5,000,000 Antalis (0.24)% 21/06/2017 5,001,668 0.09 3,800,000 Antalis (0.24)% 23/06/2017 3,801,318 0.07 20,000,000 Antalis 0.00% 03/07/2017 20,008,960 0.36 15,500,000 Bank of China (0.19)% 08/05/2017 15,500,582 0.28

88

Nominal


Assets

Commercial Papers 27.09% (30 April 2016: 37.17%) (b ) 4,000,000 Bank of China (0.20)% 08/05/2017 4,000,153 0.07 28,000,000 Bank of China (0.22)% 03/07/2017 28,010,856 0.51 22,000,000 Collateralized Commercial Paper Co LLC (0.23)% 11/05/2017 22,001,377 0.40 45,500,000 Collateralized Commercial Paper Co LLC (0.27)% 14/08/2017 45,535,539 0.83 5,000,000 Collateralized Commercial Paper Co LLC (0.30)% 13/09/2017 5,005,592 0.09 14,000,000 Collateralized Commercial Paper Co LLC (0.30)% 09/10/2017 14,018,695 0.25 10,000,000 Commonwealth Bank (0.26)% 18/09/2017 10,010,259 0.18 20,000,000 DH Europe Finance (0.24)% 05/05/2017 20,000,533 0.36 10,000,000 DH Europe Finance (0.27)% 08/05/2017 10,000,533 0.18 15,000,000 DH Europe Finance (0.28)% 10/05/2017 15,001,067 0.27 10,000,000 DH Europe Finance (0.30)% 15/05/2017 10,001,156 0.18 17,000,000 DH Europe Finance (0.30)% 22/05/2017 17,003,023 0.30 12,000,000 DZ Bank (0.34)% 15/05/2017 12,001,606 0.22 50,000,000 General Electric Capital Funding (0.28)% 04/05/2017 50,001,167 0.91 25,000,000 General Electric Capital Funding (0.36)% 15/05/2017 25,003,522 0.45 17,000,000 Honeywell International Inc (0.32)% 08/05/2017 17,001,049 0.31 45,000,000 Honeywell International Inc (0.42)% 30/05/2017 45,015,406 0.82 11,000,000 Honeywell International Inc (0.28)% 12/06/2017 11,003,636 0.20 21,000,000 LMA S.A. (0.30)% 10/05/2017 21,001,588 0.38 25,000,000 LMA S.A. (0.33)% 16/05/2017 25,003,405 0.45 4,500,000 LMA S.A. (0.33)% 06/06/2017 4,501,489 0.08 8,000,000 LMA S.A. (0.33)% 29/06/2017 8,004,386 0.15 10,000,000 LMA S.A. (0.34)% 12/07/2017 10,006,711 0.18 15,000,000 LMA S.A. (0.34)% 13/07/2017 15,010,209 0.27 7,000,000 LMA S.A. (0.34)% 19/07/2017 7,005,161 0.13 32,000,000 LMA S.A. (0.34)% 20/07/2017 32,023,896 0.58 12,000,000 Magenta Funding St. S.A. 0.00% 02/05/2017 12,000,000 0.22 51,000,000 Magenta Funding St. S.A. (0.33)% 02/06/2017 51,014,945 0.93 16,000,000 Magenta Funding St. S.A. (0.34)% 03/07/2017 16,009,653 0.29 14,000,000 Magenta Funding St. S.A. 0.00% 04/07/2017 14,008,826 0.25 15,000,000 Matchpoint Finance Plc (0.20)% 12/05/2017 15,000,917 0.27 2,000,000 Matchpoint Finance Plc (0.20)% 15/05/2017 2,000,159 0.04 6,000,000 Matchpoint Finance Plc (0.28)% 07/07/2017 6,003,083 0.11 20,500,000 Matchpoint Finance Plc (0.32)% 11/07/2017 20,512,766 0.37 12,000,000 Matchpoint Finance Plc (0.17)% 17/07/2017 12,004,310 0.22 13,000,000 Matchpoint Finance Plc (0.28)% 17/07/2017 13,007,692 0.24 6,000,000 Matchpoint Finance Plc (0.32)% 25/07/2017 6,004,484 0.11 15,400,000 Matchpoint Finance Plc (0.26)% 07/09/2017 15,414,251 0.28 4,000,000 Matchpoint Finance Plc (0.22)% 20/09/2017 4,003,451 0.07 27,700,000 Matchpoint Finance Plc (0.24)% 11/10/2017 27,729,953 0.50 7,500,000 OP Corporate Bank (0.34)% 30/05/2017 7,502,045 0.14 8,000,000 Procter & Gamble International (0.30)% 22/05/2017 8,001,379 0.14 12,000,000 Procter & Gamble International (0.30)% 16/06/2017 12,004,654 0.22 3,000,000 Procter & Gamble International (0.30)% 26/06/2017 3,001,422 0.05 23,000,000 Procter & Gamble International (0.30)% 29/06/2017 23,011,497 0.42 8,000,000 Procter & Gamble International (0.31)% 29/06/2017 8,004,128 0.15 500,000 Procter & Gamble International (0.31)% 03/07/2017 500,267 0.01 7,000,000 Procter & Gamble International (0.32)% 06/07/2017 7,004,111 0.13 9,000,000 Procter & Gamble International (0.31)% 17/07/2017 9,005,895 0.16 12,000,000 Procter & Gamble International (0.32)% 19/07/2017 12,008,328 0.22 40,000,000 Procter & Gamble International (0.31)% 26/07/2017 40,029,302 0.73 8,000,000 SFIL 0.00% 02/05/2017 8,000,000 0.14 75,000,000 SFIL (0.40)% 04/09/2017 75,000,000 1.36 50,000,000 SFIL (0.40)% 25/09/2017 50,000,000 0.91 8,000,000 SFIL (0.36)% 08/01/2018 8,020,427 0.15

89

Nominal


Assets

Commercial Papers 27.09% (30 April 2016: 37.17%) (b ) 7,000,000 Toronto - Dominion Bank (0.27)% 24/08/2017 7,006,001 0.13 20,000,000 Unilever NV (0.41)% 02/06/2017 20,007,325 0.36 20,000,000 United Parcel Service Inc (0.29)% 04/05/2017 20,000,478 0.36 20,000,000 United Parcel Service Inc (0.36)% 16/05/2017 20,002,961 0.36 5,000,000 United Parcel Service Inc (0.38)% 20/09/2017 5,007,456 0.09 Total Commercial Papers 1,493,908,545 27.09



Certificates of Deposit 30.60% (30 April 2016: 27.92%) (c) 58,000,000 Agricultural Bank of China (0.17)% 08/05/2017 58,001,969 1.05 5,000,000 Agricultural Bank of China (0.20)% 15/05/2017 5,000,397 0.09 25,000,000 Agricultural Bank of China (0.23)% 19/06/2017 25,007,671 0.45 17,000,000 Bank of China (0.17)% 16/05/2017 17,001,224 0.31 32,000,000 Bank of China (0.26)% 22/06/2017 32,012,248 0.58 21,000,000 Bank of China (0.23)% 10/07/2017 21,009,464 0.38 6,000,000 Bank of China (0.27)% 24/07/2017 6,003,807 0.11 29,000,000 Banque Federative du Credit Mutuel (0.27)% 01/03/2018 29,000,000 0.53 52,000,000 Banque Federative du Credit Mutuel (0.27)% 16/03/2018 52,000,000 0.94 15,000,000 Banque Federative du Credit Mutuel (0.27)% 03/04/2018 15,000,000 0.27 50,000,000 BNP Paribas (0.31)% 02/05/2017 50,000,000 0.91 30,000,000 BNP Paribas (0.30)% 03/07/2017 30,000,000 0.54 20,000,000 BNP Paribas (0.30)% 06/07/2017 20,000,000 0.36 24,000,000 BNP Paribas (0.32)% 25/07/2017 24,000,000 0.44 15,000,000 BNP Paribas (0.27)% 08/03/2018 15,000,000 0.27 22,000,000 BNP Paribas (0.27)% 28/03/2018 22,000,000 0.40 11,000,000 BNP Paribas (0.27)% 29/03/2018 11,000,000 0.20 25,000,000 BNP Paribas Fortis SA/NV (0.34)% 02/06/2017 25,007,546 0.45 10,000,000 BRED (0.34)% 28/06/2017 10,005,418 0.18 17,000,000 BRED (0.32)% 03/07/2017 17,009,376 0.31 57,000,000 BRED (0.32)% 18/07/2017 57,039,045 1.03 25,300,000 China Construction Bank Corp (0.18)% 03/05/2017 25,300,251 0.46 105,000,000 China Construction Bank Corp (0.22)% 14/06/2017 105,028,863 1.91 11,000,000 China Construction Bank Corp (0.20)% 30/06/2017 11,003,698 0.20 13,000,000 Cooperatieve Rabobank (0.27)% 10/05/2017 13,000,868 0.24 80,000,000 Cooperatieve Rabobank (0.22)% 02/06/2017 80,006,888 1.46 14,000,000 Cooperatieve Rabobank (0.25)% 18/08/2017 14,002,520 0.25 63,000,000 Crédit Mutuel Eonia (0.33)% 09/05/2017 63,000,000 1.14 22,000,000 Crédit Mutuel Eonia (0.34)% 29/05/2017 22,000,000 0.40

26,000,000 Industrial & Commercial Bank of China Ltd (0.25)% 22/05/2017 26,003,758 0.47




44,000,000 ING Bank (0.03)% 26/05/2017 44,009,680 0.80 42,000,000 L'Oreal SA (0.37)% 18/05/2017 42,007,380 0.76 10,000,000 Mitsubishi UFJ (0.24)% 11/05/2017 10,000,676 0.18 12,000,000 Mitsubishi UFJ (0.29)% 30/06/2017 12,005,810 0.22 15,000,000 Mitsubishi UFJ (0.29)% 05/07/2017 15,007,745 0.27 40,000,000 Mitsubishi UFJ (0.29)% 31/07/2017 40,029,043 0.73

90

Nominal


Assets

Certificates of Deposit 30.60% (30 April 2016: 27.9 2%) (c) 26,000,000 Mitsubishi UFJ (0.29)% 03/08/2017 26,019,507 0.47 22,000,000 Mitsubishi UFJ (0.34)% 02/10/2017 22,032,314 0.40 50,000,000 Nordea Bank (0.25)% 04/05/2017 50,001,030 0.91 50,000,000 Nordea Bank (0.34)% 02/03/2018 50,144,052 0.91 42,000,000 Norinchukin Bank (0.32)% 05/05/2017 42,001,488 0.76 10,000,000 Societe Generale (0.07)% 03/08/2017 10,006,974 0.18 40,000,000 Standard Chartered Bank (0.19)% 04/05/2017 40,000,645 0.73 21,000,000 Standard Chartered Bank (0.28)% 08/05/2017 21,001,157 0.38 24,000,000 Sumitomo Mitsui Banking Corporation (0.37)% 14/08/2017 24,025,701 0.44 39,000,000 Svenska Handelsbanken (0.32)% 10/07/2017 39,024,334 0.71 64,000,000 Svenska Handelsbanken (0.32)% 13/07/2017 64,041,668 1.16 10,000,000 Svenska Handelsbanken (0.32)% 17/07/2017 10,006,872 0.18 4,000,000 Svenska Handelsbanken (0.35)% 18/10/2017 4,006,584 0.07 10,000,000 Toronto - Dominion Bank (0.24)% 06/09/2017 10,008,487 0.18 17,000,000 Toronto - Dominion Bank (0.25)% 11/09/2017 17,015,623 0.31 100,000,000 Zuercher Kantonalbank (0.37)% 05/01/2018 100,255,592 1.82 Total Certificates of Deposit 1,687,129,251 30.60


Deposits with Credit Institutions Time Deposits 29.89% (30 April 2016: 23.22%) (d) 190,000,000 BNP Paribas (0.45)% 02/05/2017 190,000,000 3.44 267,100,000 BRED (0.55)% 02/05/2017 267,100,000 4.84 300,000,000 Crédit Agricole (0.45)% 02/05/2017 300,000,000 5.44 340,000,000 Crédit Mutuel Arkea (0.44)% 02/05/2017 340,000,000 6.17 551,395,000 HSBC France Eonia (0.40)% 02/05/2017* 551,395,000 10.00



Total Financial Assets at Fair Value through Profit or Loss 99.30% (30 April 2016: 97.85%) (Cost €5,475,794,629 ) 5,475,794,629 99.30

Other Net Assets 38,614,708 0.70


* Related party to HSBC Global Liquidity Funds plc.





91


Nominal

Value Security Description Fair Value CAD$ % of Net

Assets


Corporate Bonds 1.53% (30 April 2016: –%) (a) 2,600,000 BNP Paribas SA 0.00% 02/05/2017 2,599,938 1.53 Total Corporate Bonds 2,599,938 1.53

Floating Rate Notes 1.08% ( 30 April 2016: 1.62%) (a) 1,600,000 GE Capital Canada Funding Co FRN 17/08/2017 1,622,652 0.95 215,000 Metropolitan Life Global Funding I FRN 25/09/2017 215,449 0.13 Total Floating Rate Notes 1,838,101 1.08

Government Bonds 5.89% (30 April 2016: 4.06%) (a) 10,000,000 Canada Housing Trust No 1 0.99% 15/03/2018 10,028,751 5.89 Total Government Bonds 10,028,751 5.89



Commercial Papers 41.71% (30 April 2016: 44.28%) (b ) 6,600,000 Bank of Montreal 0.42% 03/05/2017 6,599,774 3.88 2,000,000 Bank of Montreal 0.91% 30/06/2017 1,996,953 1.17 2,600,000 Bank of Nova Scotia 0.00% 01/05/2017 2,600,000 1.53 4,000,000 Bank of Nova Scotia 0.63% 10/05/2017 3,999,306 2.35 377,000 Bank of Nova Scotia 0.93% 13/10/2017 375,396 0.22 995,000 Bank of Nova Scotia 0.93% 24/10/2017 990,483 0.58 775,000 Bank of Nova Scotia 1.02% 14/12/2017 770,075 0.45 2,800,000 BNP Paribas 0.85% 07/06/2017 2,797,537 1.64 3,300,000 CDP Financial Inc 0.62% 31/05/2017 3,298,268 1.94 3,200,000 Honda Canada Finance Inc. 0.81% 06/06/2017 3,197,350 1.88 700,000 JPMorgan Chase & Co 0.59% 08/05/2017 699,909 0.41 1,220,000 Manulife Bank of Canada 0.55% 04/05/2017 1,219,927 0.72 2,100,000 Maunulife Bank Canada 0.40% 02/05/2017 2,099,954 1.23

4,000,000 Municipal Finance Authority of British Columbia 0.64% 31/05/2017 3,997,798 2.35

5,000,000 Municipal Finance Authority of British Columbia 0.64% 21/06/2017 4,995,404 2.94

3,200,000 Nestle Capital Canada 0.59% 01/06/2017 3,198,317 1.88 2,000,000 Ontario Teacher Finance Trust 0.81% 25/08/2017 1,994,746 1.17 2,000,000 Paccar Financial Corp 0.51% 03/05/2017 1,999,915 1.18 4,500,000 Province Of Alberta 0.50% 23/05/2017 4,498,550 2.64 2,000,000 Province of British Columbia Canada 0.60% 21/06/2017 1,998,273 1.18 1,000,000 Province of Prince Edward Island Canada 0.60% 16/05/2017 999,738 0.59 1,500,000 Province of Prince Edward Island Canada 0.53% 06/06/2017 1,499,185 0.88 1,300,000 Province of Saskatchewan 0.31% 03/05/2017 1,299,967 0.76 1,150,000 Province of Saskatchewan 0.45% 12/05/2017 1,149,826 0.68 2,000,000 Province of Saskatchewan 0.58% 20/06/2017 1,998,361 1.18 2,000,000 Province of Saskatchewan 0.62% 10/08/2017 1,996,514 1.17 2,687,000 Royal Bank of Canada 0.00% 01/05/2017 2,687,000 1.58 3,000,000 Toronto - Dominion Bank 0.00% 01/05/2017 3,000,000 1.76

92

Nominal


Assets

Commercial Papers 41.71% (30 April 2016: 44.28%) (b ) 2,000,000 Toyota Credit Canada Inc. 0.45% 03/05/2017 1,999,924 1.18 1,000,000 Toyota Credit Canada Inc. 0.95% 30/05/2017 999,210 0.59 Total Commercial Papers 70,957,660 41.71

Corporate Bonds –% (30 April 2016: 1.22%) (b)

Floating Rate Notes 1.88% (30 April 2016 : 1.41%) (b) 3,200,000 Royal Bank of Canada FRN 11/04/2018 3,200,000 1.88 Total Floating Rate Notes 3,200,000 1.88

Government Bonds 1.96% (30 April 2016: 16.25%) (b) 3,321,000 Province of Ontario Canada 1.20% 23/11/2017 3,329,970 1.96 Total Government Bonds 3,329,970 1.96

Treasury Bills 26.42% (30 April 2016: 11.71%) (b) 5,000,000 Canadian Treasury Bill 0.00% 04/05/2017 4,999,791 2.94 5,000,000 Canadian Treasury Bill 0.00% 01/06/2017 4,997,754 2.94 5,000,000 Canadian Treasury Bill 0.00% 29/06/2017 4,995,610 2.94 5,000,000 Canadian Treasury Bill 0.00% 27/07/2017 4,993,358 2.94 5,000,000 Canadian Treasury Bill 0.00% 24/08/2017 4,991,298 2.93 5,000,000 Canadian Treasury Bill 0.00% 21/09/2017 4,989,854 2.93 5,000,000 Canadian Treasury Bill 0.00% 19/10/2017 4,987,175 2.93 4,000,000 Manitoba T-Bill 0.00% 03/05/2017 3,999,890 2.35 3,000,000 Manitoba T-Bill 0.00% 17/05/2017 2,999,251 1.76 3,000,000 New Brunswick T-Bill 0.00% 15/06/2017 2,997,826 1.76 Total Treasury Bills 44,951,807 26.42

Transferable securities dealt on another regulated market 71.97% (30 April 2016: 74.87%) 122,439,437 71.97


Certificates of Deposit 3.82% (30 April 2016: –%) (c) 3,300,000 Caisse Centrale Desjardins 0.70% 08/05/2017 3,299,485 1.94 3,200,000 Sumitomo Mitsui Banking Corporation 0.80% 26/05/2017 3,198,142 1.88 Total Certificates of Deposit 6,497,627 3.82

Other Transferable Securities 3.82% (30 April 2016: –%) 6,497,627 3.82

Deposits with Credit Institutions Time Deposits 15.70% (30 April 2016: 19.36%) (d)

10,000,000 Crédit Agricole 0.40% 01/05/2017 10,000,000 5.88 10,000,000 National Bank of Canada 0.40% 01/05/2017 10,000,000 5.88

93

Nominal


Assets Time Deposits 15.70% (30 April 2016: 19.36%) (d) 6,700,000 Societe Generale (Cayman Islands) 0.40% 01/05/2017 6,700,000 3.94

Total Time Deposits 26,700,000 15.70

Total Deposits with Credit Institutions 15.70% (30 April 2016: 19.36%) 26,700,000 15.70

Total Financial Assets at Fair Value through Profit or Loss 99.99% (30 April 2016: 99.91%) (Cost CAD$170,103,85 4) 170,103,854 99.99

Other Net Assets 10,972 0.01

Total Net Assets Attributable to Holders of Redeema ble Participating Shares 170,114,826 100.00





Statement of Significant Portfolio Changes (unaudited)

94


Significant Purchases – Top 1%* Nominal Value Cost Stg£

HSBC Bank Plc 0.50% 08/07/2016 1,300,000,000 1,300,000,000

HSBC Bank Plc 0.25% 17/08/2016 1,200,000,000 1,200,000,000

HSBC Bank Plc 0.50% 15/07/2016 1,100,000,000 1,100,000,000

HSBC Bank Plc 0.49% 11/07/2016 1,100,000,000 1,100,000,000

HSBC Bank Plc 0.48% 23/06/2016 1,100,000,000 1,100,000,000

HSBC Bank Plc 0.24% 18/08/2016 1,100,000,000 1,100,000,000

HSBC Bank Plc 0.50% 07/07/2016 1,050,000,000 1,050,000,000

HSBC Bank Plc 0.50% 14/07/2016 1,000,000,000 1,000,000,000

HSBC Bank Plc 0.48% 16/06/2016 1,000,000,000 1,000,000,000

HSBC Bank Plc 0.48% 21/06/2016 980,000,000 980,000,000

HSBC Bank Plc 0.48% 22/06/2016 950,000,000 950,000,000

HSBC Bank Plc 0.48% 24/06/2016 950,000,000 950,000,000

HSBC Bank Plc 0.48% 17/06/2016 910,000,000 910,000,000

HSBC Bank Plc 0.48% 20/06/2016 870,000,000 870,000,000

HSBC Bank Plc 0.50% 18/07/2016 850,000,000 850,000,000

HSBC Bank Plc 0.50% 19/07/2016 850,000,000 850,000,000

HSBC Bank Plc 0.49% 05/07/2016 850,000,000 850,000,000

HSBC Bank Plc 0.48% 15/06/2016 850,000,000 850,000,000

HSBC Bank Plc 0.40% 01/07/2016 850,000,000 850,000,000

HSBC Bank Plc 0.50% 06/07/2016 830,000,000 830,000,000

Significant Sales – Top 1%* Nominal Value Proceeds Stg£

HSBC Bank Plc 0.50% 08/07/2016 1,300,000,000 1,300,000,000

HSBC Bank Plc 0.25% 17/08/2016 1,200,000,000 1,200,000,000

HSBC Bank Plc 0.50% 15/07/2016 1,100,000,000 1,100,000,000

HSBC Bank Plc 0.49% 11/07/2016 1,100,000,000 1,100,000,000

HSBC Bank Plc 0.48% 23/06/2016 1,100,000,000 1,100,000,000

HSBC Bank Plc 0.24% 18/08/2016 1,100,000,000 1,100,000,000

HSBC Bank Plc 0.50% 07/07/2016 1,050,000,000 1,050,000,000

HSBC Bank Plc 0.50% 14/07/2016 1,000,000,000 1,000,000,000

HSBC Bank Plc 0.48% 16/06/2016 1,000,000,000 1,000,000,000

HSBC Bank Plc 0.48% 21/06/2016 980,000,000 980,000,000

HSBC Bank Plc 0.48% 22/06/2016 950,000,000 950,000,000

HSBC Bank Plc 0.48% 24/06/2016 950,000,000 950,000,000

HSBC Bank Plc 0.48% 17/06/2016 910,000,000 910,000,000

HSBC Bank Plc 0.48% 20/06/2016 870,000,000 870,000,000

HSBC Bank Plc 0.50% 18/07/2016 850,000,000 850,000,000

HSBC Bank Plc 0.50% 19/07/2016 850,000,000 850,000,000

HSBC Bank Plc 0.49% 05/07/2016 850,000,000 850,000,000

HSBC Bank Plc 0.48% 15/06/2016 850,000,000 850,000,000

HSBC Bank Plc 0.40% 01/07/2016 850,000,000 850,000,000

HSBC Bank Plc 0.50% 06/07/2016 830,000,000 830,000,000

HSBC Bank Plc is a related party to HSBC Global Liquidity Fund Plc.

* In accordance with UCITS Regulations, the annual report is required to disclose all the material changes that occurred in the disposition of the assets. A material change is defined as aggregate purchases/disposals of a security exceeding 1% of the total value of the purchases/sales. If there are fewer than 20 purchase/sales that met the material changes definition at least 20 purchases/sales are required to be disclosed.

95


Significant Purchases – Top 1%* Nominal Value Cost US$

Crédit Agricole 0.41% 09/08/2016 1,392,000,000 1,392,000,000

Crédit Agricole 0.41% 19/09/2016 1,383,000,000 1,383,000,000

Crédit Agricole 0.41% 21/07/2016 1,351,000,000 1,351,000,000

Crédit Agricole 0.41% 17/08/2016 1,300,000,000 1,300,000,000

Crédit Agricole 0.41% 18/08/2016 1,300,000,000 1,300,000,000

Crédit Agricole 0.37% 09/05/2016 1,247,000,000 1,247,000,000

Crédit Agricole 0.41% 09/09/2016 1,228,000,000 1,228,000,000

Crédit Agricole 0.41% 19/08/2016 1,214,000,000 1,214,000,000

Crédit Agricole 0.41% 25/07/2016 1,200,000,000 1,200,000,000

Crédit Agricole 0.41% 16/08/2016 1,200,000,000 1,200,000,000

Crédit Agricole 0.38% 25/05/2016 1,188,000,000 1,188,000,000

Crédit Agricole 0.41% 28/07/2016 1,186,000,000 1,186,000,000

Crédit Agricole 0.41% 04/08/2016 1,169,000,000 1,169,000,000

Crédit Agricole 0.38% 22/06/2016 1,164,000,000 1,164,000,000

Crédit Agricole 0.38% 07/06/2016 1,163,000,000 1,163,000,000

Crédit Agricole 0.41% 30/08/2016 1,162,000,000 1,162,000,000

Crédit Agricole 0.41% 26/08/2016 1,159,000,000 1,159,000,000

Crédit Agricole 0.41% 23/08/2016 1,152,000,000 1,152,000,000

Crédit Agricole 0.37% 11/05/2016 1,144,000,000 1,144,000,000

Crédit Agricole 0.41% 12/10/2016 1,142,000,000 1,142,000,000

Significant Sales – Top 1%* Nominal Value Proceeds US$

Crédit Agricole 0.41% 09/08/2016 1,392,000,000 1,392,000,000

Crédit Agricole 0.41% 19/09/2016 1,383,000,000 1,383,000,000

Crédit Agricole 0.41% 21/07/2016 1,351,000,000 1,351,000,000

Crédit Agricole 0.41% 17/08/2016 1,300,000,000 1,300,000,000

Crédit Agricole 0.41% 18/08/2016 1,300,000,000 1,300,000,000

Crédit Agricole 0.37% 09/05/2016 1,247,000,000 1,247,000,000

Crédit Agricole 0.41% 09/09/2016 1,228,000,000 1,228,000,000

Crédit Agricole 0.41% 19/08/2016 1,214,000,000 1,214,000,000

Crédit Agricole 0.41% 25/07/2016 1,200,000,000 1,200,000,000

Crédit Agricole 0.41% 16/08/2016 1,200,000,000 1,200,000,000

Crédit Agricole 0.38% 25/05/2016 1,188,000,000 1,188,000,000

Crédit Agricole 0.41% 28/07/2016 1,186,000,000 1,186,000,000

Crédit Agricole 0.41% 04/08/2016 1,169,000,000 1,169,000,000

Crédit Agricole 0.38% 22/06/2016 1,164,000,000 1,164,000,000

Crédit Agricole 0.38% 07/06/2016 1,163,000,000 1,163,000,000

Crédit Agricole 0.41% 30/08/2016 1,162,000,000 1,162,000,000

Crédit Agricole 0.41% 26/08/2016 1,159,000,000 1,159,000,000

Crédit Agricole 0.41% 23/08/2016 1,152,000,000 1,152,000,000

Crédit Agricole 0.37% 11/05/2016 1,144,000,000 1,144,000,000

Crédit Agricole 0.41% 12/10/2016 1,142,000,000 1,142,000,000


96


Significant Purchases – Top 1%* Nominal Value Cost €

HSBC France Eonia (0.40)% 06/01/2017 628,167,000 628,167,000




Crédit Agricole (0.45)% 20/04/2017 619,600,000 619,600,000

KBC Bank NV (0.44)% 20/04/2017 619,600,000 619,600,000

Crédit Agricole (0.45)% 19/04/2017 618,100,000 618,100,000

KBC Bank NV (0.44)% 19/04/2017 618,100,000 618,100,000



KBC Bank NV (0.44)% 18/04/2017 617,300,000 617,300,000



Crédit Agricole (0.42)% 30/03/2017 615,700,000 615,700,000


KBC Bank NV (0.44)% 24/04/2017 614,900,000 614,900,000




KBC Bank NV (0.44)% 21/04/2017 610,000,000 610,000,000

Significant Sales – Top 1%* Nominal Value Proceeds €





Crédit Agricole (0.45)% 20/04/2017 619,600,000 619,600,000

KBC Bank NV (0.44)% 20/04/2017 619,600,000 619,600,000

Crédit Agricole (0.45)% 19/04/2017 618,100,000 618,100,000

KBC Bank NV (0.44)% 19/04/2017 618,100,000 618,100,000



KBC Bank NV (0.44)% 18/04/2017 617,300,000 617,300,000



Crédit Agricole (0.42)% 30/03/2017 615,700,000 615,700,000


KBC Bank NV (0.44)% 24/04/2017 614,900,000 614,900,000




KBC Bank NV (0.44)% 21/04/2017 610,000,000 610,000,000

HSBC France Eonia is a related party to HSBC Global Liquidity Fund Plc.


97


Significant Purchases – Top 1%* Nominal Value Cost CAD$

Societe Generale (Cayman Islands) 0.45% 09/08/2016 21,000,000 21,000,000



National Bank of Canada 0.40% 07/10/2016 20,000,000 20,000,000

















Significant Sales – Top 1%* Nominal Value Proceeds CAD$





National Bank of Canada 0.40% 07/10/2016 20,000,000 20,000,000

















Company’s Remuneration Policy (unaudited)

98

The Company, which is authorised as an undertaking for collective investment in transferable securities pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (S.I. No. 352 of 2011) as amended (the Regulations), is required by the European Communities (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2016 (S.I. No. 143 of 2016) (the UCITS V Regulations) to establish, implement and maintain a remuneration policy (the Remuneration Policy) which is in accordance with the requirements of the Regulations. The following regulations, guidelines and requirements are/shall be of relevance of the Company with regards to the Remuneration Policy:

1. the UCITS V Regulations; and 2. the ESMA's Guidelines on Sound Remuneration Policies (the ESMA Remuneration Guidelines).

This Remuneration Policy is aimed at ensuring that any relevant conflicts of interest can be managed appropriately at all times and sets out practices that are consistent with and promote sound and effective risk management and do not encourage risk-taking which is inconsistent with the risk profile of the funds of the Company (the Funds) or the prospectus or memorandum and articles of association of the Company and is in line with the business strategy, objectives, values and interests of the Company and its investors. Identified staff

The Regulations require the Company to identify the categories of staff including senior management, risk takers, control functions, and any employees receiving total remuneration that takes them into the same remuneration bracket as senior management and risk takers, whose professional activities have a material impact on the risk profile of the Funds.

The Company is controlled and managed by the Board, but does not currently have any staff. Accordingly, the identified staff for the purpose of this Remuneration Policy is the Board. As of the date of this document, the Board consist of Peter Blessing, Desmond Miller and Angus Schumacher.

Variable remuneration

The directors who are employees of HSBC Group do not receive any remuneration in respect of their services as directors of the Company. The other directors receive fixed remuneration in respect of their services which is an amount proposed by HSBC Global Asset Management (UK) Limited who is engaged to act as the global service provider to the Company and agreed by the Board as a whole and which is not performance related. None of the directors are currently in receipt of performance based variable remuneration in respect of their services as directors of the Company. Accordingly, the detailed provisions of the Regulations in relation to variable remuneration are not applicable to the Company. None of the directors are currently in receipt of a pension from the Company.

The Company has determined that the fixed remuneration payable to the directors who are not employees of the HSBC Group is (a) consistent with sound and effective risk management and does not encourage risk-taking which is inconsistent with the risk profile of the Funds or the prospectus or memorandum and articles of association of the Company and (b) in line with the business strategy, objectives, values and interests of the Company and the investors in the Company. The nature of the directors’ remuneration (where payable), being fixed and not including any variable component and the amount being agreed by the Board as a whole, ensures that the Company appropriately manages any conflicts of interest in respect of remuneration.

Remuneration committee

The Regulations require self-managed investment companies that are significant in terms of their size, their internal organisation and the nature, scope and complexity of their activities to establish a remuneration committee. Having considered these criteria, the Company has determined, on advice of counsel, that it is not significant in these respects and has not established a remuneration committee.

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Delegation

The Board has delegated certain activities, as specified in its business plan, in respect of the investment management and risk management of the Funds, to HSBC Global Asset Management (France), HSBC Global Asset Management (USA) Inc. and HSBC Global Asset Management (Hong Kong) Limited (the Investment Managers ) who may have identified staff whose professional activities could have a material impact on the risk profile of the Funds within the meaning of the ESMA Remuneration Guidelines.

The ESMA Remuneration Guidelines require the Company to be satisfied that the Investment Managers are either subject to regulatory requirements on remuneration that are equally as effective as those applicable under the Regulations or that appropriate contractual arrangements are in place with the Investment Managers to ensure that no circumvention of the remuneration rules set out in the ESMA Remuneration Guidelines takes place. The ESMA Remuneration Guidelines provide that regulatory requirements on remuneration such as Directive 2013/36/EU (CRD IV) or Directive 2011/61/EU (AIFMD) are equally as effective for these purposes.

The Board is satisfied that the Investment Managers are subject to regulatory requirements on remuneration that are equally as effective as those applicable under the ESMA Remuneration Guidelines since the Investment Managers are subject to the HSBC's group remuneration policies that are CRD IV compliant.

The Company will rely on the remuneration policies and procedures of each delegate to ensure that their remuneration structures promote a culture of investor protection and mitigate conflicts of interest.

Disclosure

The Company will comply with the disclosure requirements set out in the Regulations. The total amount of remuneration for the financial year paid by the Company to its staff, the aggregate amount of remuneration broken down by the relevant categories of employees (i.e. the Directors), a description of how the remuneration has been calculated and any material changes to the Remuneration Policy will be disclosed in the Company's annual report.

Reporting

The Board shall seek confirmation from each of the Investment Managers (where applicable) on an annual basis that there has been no material change to its remuneration policy, or if there has been a material change, provide details of those changes to the Board.

Appropriateness of policy and conflicts of interest

Given its internal organisation and the limited nature, scale and complexity of the Company’s activities, it is considered that the policies described in this document are appropriate for the Company. Together with the Company’s conflicts of interest policy, the Board considers that there are suitable measures in place to promote effective supervision and risk management.

Annual review

On an annual basis the Board will review the terms of this Remuneration Policy and assess whether its overall remuneration system operates as intended and is compliant with the obligations on remuneration policy as set out in the Regulations. The Remuneration Policy will be updated by the Board as and when required.

Effective date

The effective date of this Policy is 10 May 2017.

Securities Financing Transactions Regulation (SFTR) Annual Report Disclosures (unaudited)

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During the financial year ended 30 April 2017 to which this Report relates, the Company did not engage in transactions which are the subject of EU regulations No. 2015/2365 on the transparency of securities financing transactions of reuse. Accordingly, no global, concentration or transactions data, or information on the reuse or safekeeping of collateral is required to be reported.

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