HSBC Portfolios - FS - AR - 31.01 Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC...

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R.C.S. Luxembourg B 147 223 16, boulevard d’Avranches L-1160 Luxembourg Grand Duchy of Luxembourg HSBC Portfolios Unaudited Semi-Annual Report for the period ended 31 January 2017

Transcript of HSBC Portfolios - FS - AR - 31.01 Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC...

Page 1: HSBC Portfolios - FS - AR - 31.01 Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios World Selection 1 World Selection 2 World Selection 3 World Selection 4

R.C.S. Luxembourg B 147 22316, boulevard d’AvranchesL-1160 LuxembourgGrand Duchy of Luxembourg

HSBC PortfoliosUnaudited Semi-Annual Report for the periodended 31 January 2017

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No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current Prospectus

accompanied by the latest annual and the most recent semi-annual report, if published thereafter.

Unaudited report for the period 1 August 2016 to 31 January 2017

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Table of ContentsGeneral Information 2

Statement of Net Assets 6

Statement of Operations 7

Statement of Changes in Net Assets 8

Statement of Changes in Shares Issued 9

Statistical Information 12

Notes to the Financial Statements 14

Schedules of Investments and Other Net Assets

HSBC Portfolios – World Selection 1 28

HSBC Portfolios – World Selection 2 34

HSBC Portfolios – World Selection 3 42

HSBC Portfolios – World Selection 4 49

HSBC Portfolios – World Selection 5 50

Appendix I – Taxation of the Company (foreign countries) 51

Appendix II - UK SORP Disclosure 52

Appendix III - Fund Holiday Calendar for 2017 55

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2

General Information

Directors George Efthimiou (Chairman), Global Chief Operating Officer

HSBC Global Asset Management Limited, 78 St James’s

Street, London SW1A 1HL, United Kingdom

Dr. Michael Boehm, Chief Operating Officer

HSBC Global Asset Management (Deutschland) GmbH

Königsallee 21/23, 40212 Düsseldorf, Germany

Dean Lam, Managing Director

HSBC Bank (Mauritius) Limited, 6th Floor, HSBC Centre,

18 CyberCity, Ebene, Mauritius

Eimear Cowhey, Independent Director

Resident in the Republic of Ireland

Peter Dew, Independent Director

Resident in the United Kingdom

Jean de Courrèges, Independent Director

Resident in Grand Duchy of Luxembourg

John Li, Independent Director

The Directors Office, 19 Rue de Bitbourg, L-1273, Luxembourg

Joanna Munro, Global Head of Fiduciary Governance

HSBC Global Asset Management Limited,

78 St James’s Street, London SW1A 1HL, United Kingdom

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General Information (continued)

3

Registered Office 16, boulevard d’Avranches

L-1160 Luxembourg

Grand Duchy of Luxembourg

Administration Agent,

Depositary Bank,

Paying Agent, Corporate and

Domiciliary Agent, Registrar and

Transfer Agent

HSBC Bank Plc, Luxembourg Branch

16, boulevard d’Avranches

L-1160 Luxembourg

Grand Duchy of Luxembourg

Management Company HSBC Investment Funds (Luxembourg) S.A.

16, boulevard d’Avranches

L-1160 Luxembourg

Grand Duchy of Luxembourg

Auditor PricewaterhouseCoopers, Société coopérative

2, rue Gerhard Mercator, B.P.1443, L-1014 Luxembourg,

Grand Duchy of Luxembourg

Legal Advisers Elvinger Hoss Prussen, Société anonyme

2, Place Winston Churchill

L-1340 Luxembourg

Grand Duchy of Luxembourg

Investment Adviser HSBC Global Asset Management (UK) Limited

78 St James’s Street

London SW1A 1EJ

United Kingdom

Distributors Global Distributor

HSBC Investment Funds (Luxembourg) S.A.

16, boulevard d’Avranches

L-1160 Luxembourg

Grand Duchy of Luxembourg

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General Information (continued)

4

Distributors (continued) Austria and Eastern Europe Distributor

HSBC Trinkaus & Burkhardt AG

Königsallee 21/23

D-40212 Düsseldorf

Germany

Continental Europe Distributor

HSBC Global Asset Management (France)

Immeuble Coeur Défense - Tour A

110 Esplanade du Général de Gaulle - La Défense

475419 Paris Cedex 08

France

Hong Kong Representative and Distributor

HSBC Investment Funds (Hong Kong) Limited

HSBC Main Building, 1 Queen’s Road Central

Hong Kong

Jersey Representative and Distributor

HSBC Global Asset Management (International) Limited

HSBC House, Esplanade, St Helier

Jersey JE4 8WP

Channel Islands

Middle East Distributor

HSBC Bank Middle East Limited

HSBC House, Esplanade, St Helier

Jersey JE4 8UB

Channel Islands

Singapore Representative and Distributor

HSBC Global Asset Management (Singapore) Limited

21 Collyer Quay, #06-01 HSBC Building

Singapore 049320

Singapore

United Kingdom Representative and Distributor

HSBC Global Asset Management (UK) Limited

8 Canada Square

London E14 5HQ

United Kingdom

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General Information (continued)

5

Note on the risk management

HSBC Investment Funds (Luxembourg) S.A. (the “Management Company”) uses a risk management process that allows monitoring of the risk

of the portfolio positions and their share of the overall risk profile of the portfolios of HSBC Portfolios (the “Company”) at any time. In accordance

with the Law of 17 December 2010 on undertakings for collective investment, as amended (the “2010 Law”), and the applicable regulatory

requirements of the Commission de Surveillance du Secteur Financier (“CSSF”), the Management Company reports to the CSSF on a regular

basis on the risk management process. The Management Company shall monitor, on the basis of appropriate and reasonable methods, that the

Company’s global exposure relating to derivative instruments does not exceed the total net asset value of its portfolio.

For the Company, the Management Company uses the “commitment approach” for the calculation of the global exposure. The “commitment

approach” is based on converting the value of each financial derivative instrument position into the market value of an equivalent position in the

underlying asset of that derivative. Netting and hedging might be considered for derivative financial instruments and their underlying assets. The

sum of these underlying equivalents must not exceed the net asset value of the portfolio.

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Statement of Net Assetsas at 31 January 2017

HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios

Notes Combined World Selection 1 World Selection 2 World Selection 3 World Selection 4 World Selection 5

USD USD USD USD USD USD

ASSETS

Investments in securities at cost 2,252,542,423 384,998,580 449,028,435 606,438,598 588,835,138 223,241,672

Unrealised appreciation 69,970,249 4,089,538 9,817,211 22,674,911 22,917,616 10,470,973

Investments in securities at market value 3 b 2,322,512,672 389,088,118 458,845,646 629,113,509 611,752,754 233,712,645

Unrealised gain on forw ard foreign exchange contracts 3 b, 6 28,942,642 4,756,048 5,749,701 6,919,273 8,591,652 2,925,968

Unrealised appreciation on futures contracts 3 b, 7 3,363,776 619,968 790,117 869,062 764,400 320,229

OTHER ASSETS

Cash at bank 162,349,093 44,172,552 42,977,543 39,584,737 24,557,937 11,056,324

Amounts receivable on sale of Investments 5,585,980 559,751 1,051,858 3,974,371 - -

Amounts receivable on subscriptions 6,310,617 717,469 2,867,730 1,268,636 1,112,582 344,200

Dividend and interest receivable, net 6,085,945 1,537,320 2,116,725 1,587,198 603,084 241,618

Accounts receivable and accrued income 222,435 23,733 10,301 - 57,120 131,281

TOTAL OTHER ASSETS 180,554,070 47,010,825 49,024,157 46,414,942 26,330,723 11,773,423

TOTAL ASSETS 2,535,373,160 441,474,959 514,409,621 683,316,786 647,439,529 248,732,265

LIABILITIES

Bank overdraft 218,980 5,168 - 43,718 71,626 98,468

Amounts payable on purchase of Investments 8,972,647 965,777 2,565,751 3,468,472 1,972,647 -

Amounts payable on redemptions 12,111,413 1,116,555 5,034,070 3,516,559 1,448,978 995,251

Management fees payable 2,325,764 366,835 408,502 650,215 633,532 266,680

Accounts payable and accrued expenses 501,959 91,079 114,554 173,265 84,330 38,731

Dividends payable 3 g 357,050 108,076 75,439 120,184 51,471 1,880

TOTAL LIABILITIES 24,487,813 2,653,490 8,198,316 7,972,413 4,262,584 1,401,010

TOTAL NET ASSETS 2,510,885,347 438,821,469 506,211,305 675,344,373 643,176,945 247,331,255

THREE YEAR ASSET SUMMARY

31 July 2016 2,605,624,028 477,199,479 538,720,869 668,183,658 660,011,865 261,508,157

31 July 2015 2,729,188,647 514,819,765 533,951,470 646,929,215 719,437,988 314,050,209

31 July 2014 2,702,313,983 443,735,372 491,598,414 630,121,651 751,717,887 385,140,659

The accompanying notes form an integral part of these financial statements.

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Statement of Operationsfor the period ended 31 January 2017

HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios

Notes Combined World Selection 1 World Selection 2 World Selection 3 World Selection 4 World Selection 5

USD USD USD USD USD USD

INCOME

Income from investments 3 c 23,533,963 5,034,113 6,151,373 6,302,380 4,938,925 1,107,172

Deposit interest 2,278 2,278 - - - -

TOTAL INCOME 23,536,241 5,036,391 6,151,373 6,302,380 4,938,925 1,107,172

EXPENSES

Management fees 4 a 14,069,187 2,318,185 2,533,142 3,792,007 3,810,992 1,614,861

Operating, administrative and servicing expenses 4 b 2,629,573 575,476 710,064 607,693 502,845 233,495

Bank interest and charges 742 284 - 353 30 75

TOTAL EXPENSES 16,699,502 2,893,945 3,243,206 4,400,053 4,313,867 1,848,431

NET OPERATING PROFIT / (LOSS) FOR THE PERIOD 6,836,739 2,142,446 2,908,167 1,902,327 625,058 (741,259)

The accompanying notes form an integral part of these financial statements.

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Statement of Changes in Net Assetsfor the period ended 31 January 2017

HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios

Notes Combined World Selection 1 World Selection 2 World Selection 3 World Selection 4 World Selection 5

USD USD USD USD USD USD

Net operating profit / (loss) for the period 6,836,739 2,142,446 2,908,167 1,902,327 625,058 (741,259)

Net realised gains / (losses) on:

- Investments in securities 3 b, 3 e 13,343,702 3,178,411 2,246,784 2,309,562 3,801,211 1,807,734

- Derivatives 3 b (65,634,672) (7,737,996) (12,862,688) (15,686,993) (21,983,366) (7,363,629)

- Foreign exchange transactions 3 d (10,569,174) (5,099,821) (3,082,001) (1,888,831) (492,720) (5,801)

NET REALISED LOSSES (62,860,144) (9,659,406) (13,697,905) (15,266,262) (18,674,875) (5,561,696)

Net change in unrealised appreciation / (depreciation) on:

- Investments in securities 6,705,282 (14,479,585) (7,945,894) 5,013,933 16,266,139 7,850,689

- Derivatives 3 b 10,107,832 644,976 2,344,435 3,693,980 2,444,689 979,752

NET CHANGE IN UNREALISED APPRECIATION /

(DEPRECIATION)16,813,114 (13,834,609) (5,601,459) 8,707,913 18,710,828 8,830,441

(DECREASE) / INCREASE IN NET ASSETS FROM

OPERATIONS(39,210,291) (21,351,569) (16,391,197) (4,656,022) 661,011 2,527,486

CAPITAL TRANSACTIONS

Received on issue of shares 361,719,985 84,815,473 99,765,217 102,625,352 57,590,248 16,923,695

Paid on redemptions of shares (415,926,593) (101,233,219) (115,586,783) (90,518,685) (74,969,959) (33,617,947)

Dividends paid 8 (1,321,782) (608,695) (296,801) (289,930) (116,220) (10,136)

TOTAL (DECREASE) / INCREASE IN NET ASSETS FOR

THE PERIOD(94,738,681) (38,378,010) (32,509,564) 7,160,715 (16,834,920) (14,176,902)

NET ASSETS

Beginning of period 2,605,624,028 477,199,479 538,720,869 668,183,658 660,011,865 261,508,157

End of period 2,510,885,347 438,821,469 506,211,305 675,344,373 643,176,945 247,331,255

The accompanying notes form an integral part of these financial statements.

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Statement of Changes in Shares Issuedfor the period ended 31 January 2017

HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios

World Selection 1 World Selection 2 World Selection 3 World Selection 4 World Selection 5

Class A (C) (USD)

Shares outstanding, beginning of period 7,053,227.46 12,398,445.86 18,964,219.37 11,727,768.30 7,104,083.49

Shares issued 1,534,377.80 3,199,094.08 2,899,119.52 1,737,921.50 581,362.20

Shares redeemed (2,205,102.07) (4,766,001.73) (3,321,269.29) (2,443,764.86) (1,375,016.74)

Shares outstanding, end of period 6,382,503.19 10,831,538.21 18,542,069.60 11,021,924.94 6,310,428.95

Class A (C) (HAUD)*

Shares outstanding, beginning of period - - 69,652.97 46,279.44 49,418.97

Shares issued - - 2,732.51 1,550.22 2,734.26

Shares redeemed - - (27,637.60) (30,370.52) (39,649.48)

Shares outstanding, end of period - - 44,747.88 17,459.14 12,503.75

Class A (C) (HEUR)*

Shares outstanding, beginning of period 21,767,514.65 17,426,155.48 17,166,824.56 26,958,609.77 8,707,468.56

Shares issued 934,076.30 829,287.56 597,433.82 691,282.48 423,514.91

Shares redeemed (2,172,184.88) (1,866,814.61) (1,543,518.62) (1,513,083.00) (549,456.06)

Shares outstanding, end of period 20,529,406.07 16,388,628.43 16,220,739.76 26,136,809.25 8,581,527.41

Class A (C) (HGBP)*

Shares outstanding, beginning of period 1,657,895.31 3,953,537.86 5,829,651.29 5,091,461.69 1,974,166.96

Shares issued 205,220.68 407,353.37 729,324.73 244,050.55 93,260.54

Shares redeemed (272,691.12) (381,011.90) (560,183.61) (895,026.85) (330,303.66)

Shares outstanding, end of period 1,590,424.87 3,979,879.33 5,998,792.41 4,440,485.39 1,737,123.84

Class A (C) (HSGD)*

Shares outstanding, beginning of period 100.00 - 19,645.81 - 100.00

Shares issued - - 3,394.29 - -

Shares redeemed - - (7,575.17) - -

Shares outstanding, end of period 100.00 - 15,464.93 - 100.00

Class A (D) (USD)

Shares outstanding, beginning of period - 29,326.48 - - -

Shares issued - - - - -

Shares redeemed - - - - -

Shares outstanding, end of period - 29,326.48 - - -

Class A (D) (HEUR)*

Shares outstanding, beginning of period - 24,168.69 5,814.09 624.80 -

Shares issued - 5,044.68 1,225.30 341.62 -

Shares redeemed - (2,339.72) (1.04) - -

Shares outstanding, end of period - 26,873.65 7,038.35 966.42 -

Class A (D) (HGBP)*

Shares outstanding, beginning of period - 489,242.40 - - -

Shares issued - 3,921.68 - - -

Shares redeemed - (83,059.91) - - -

Shares outstanding, end of period - 410,104.17 - - -

Class A (M) (USD)

Shares outstanding, beginning of period 1,035,851.20 381,389.39 953,210.75 201,191.53 1,719.29

Shares issued 1,711,079.70 2,886,474.54 2,163,380.90 978,944.75 49,244.01

Shares redeemed (1,229,272.38) (1,064,076.98) (802,913.39) (214,785.10) (42,868.21)

Shares outstanding, end of period 1,517,658.52 2,203,786.95 2,313,678.26 965,351.18 8,095.09

* Hedged Classes

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Statement of Changes in Shares Issued(continued)for the period ended 31 January 2017

HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios

World Selection 1 World Selection 2 World Selection 3 World Selection 4 World Selection 5

Class A (M) (HKD)

Shares outstanding, beginning of period 6,657,417.91 561,803.91 1,801,267.17 838,231.99 73,144.52

Shares issued 11,171,190.12 6,291,934.96 9,926,130.66 7,579,546.23 673,653.10

Shares redeemed (9,326,788.98) (2,445,101.04) (1,869,313.21) (1,191,457.97) (555,677.12)

Shares outstanding, end of period 8,501,819.05 4,408,637.83 9,858,084.62 7,226,320.25 191,120.50

Class A (M) (HAUD)*

Shares outstanding, beginning of period 1,741,984.36 230,937.38 178,843.97 14,726.03 48,591.55

Shares issued 1,505,182.69 129,946.60 817,734.02 32,134.41 -

Shares redeemed (1,082,144.70) (209,557.86) (176,625.72) (339.55) (14,387.87)

Shares outstanding, end of period 2,165,022.35 151,326.12 819,952.27 46,520.89 34,203.68

Class A (M) (HEUR)*

Shares outstanding, beginning of period 52,035.79 42,573.74 7,229.49 43,105.30 1,270.60

Shares issued 49,942.49 - 54,030.80 10,369.65 8.60

Shares redeemed (13,952.43) (24,307.26) (858.04) (22,563.07) (599.40)

Shares outstanding, end of period 88,025.85 18,266.48 60,402.25 30,911.88 679.80

Class A (M) (HGBP)*

Shares outstanding, beginning of period 266,535.83 16,376.06 81,025.25 51,028.23 10,136.63

Shares issued 319,500.90 12,380.00 54,467.01 214.21 10,143.67

Shares redeemed (420,905.53) (9,285.84) (53,504.07) (15,753.92) (5,727.26)

Shares outstanding, end of period 165,131.20 19,470.22 81,988.19 35,488.52 14,553.04

Class A (M) (HSGD)*

Shares outstanding, beginning of period 10,296.51 - 106.78 - 522.07

Shares issued 43,149.49 - 1.72 - 2.84

Shares redeemed - - - - (417.14)

Shares outstanding, end of period 53,446.00 - 108.50 - 107.77

Class B (C) (USD)

Shares outstanding, beginning of period 10,253.96 38,184.27 187,688.69 208,377.27 13,019.88

Shares issued 9,215.77 4,861.67 927.19 27,489.21 1,541.15

Shares redeemed - - (3,721.99) (27,343.86) -

Shares outstanding, end of period 19,469.73 43,045.94 184,893.89 208,522.62 14,561.03

Class B (C) (HEUR)*

Shares outstanding, beginning of period 10,002.00 29,974.53 381,018.65 82,675.86 70,639.81

Shares issued - - 11,562.06 - -

Shares redeemed - - (2,539.56) (48,154.09) -

Shares outstanding, end of period 10,002.00 29,974.53 390,041.15 34,521.77 70,639.81

Class B (C) (HGBP)*

Shares outstanding, beginning of period 460,757.23 1,701,612.11 2,310,998.87 866,020.18 302,014.44

Shares issued 32,221.14 39,654.93 160,100.54 90,693.45 15,574.48

Shares redeemed (22,169.64) (62,284.35) (131,493.49) (29,358.07) (23,921.97)

Shares outstanding, end of period 470,808.73 1,678,982.69 2,339,605.92 927,355.56 293,666.95

* Hedged Classes

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Statement of Changes in Shares Issued(continued)for the period ended 31 January 2017

HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios

World Selection 1 World Selection 2 World Selection 3 World Selection 4 World Selection 5

Class X (C) (HGBP)*

Shares outstanding, beginning of period - 192,825.60 - - -

Shares issued - - - - -

Shares redeemed - (61,441.77) - - -

Shares outstanding, end of period - 131,383.83 - - -

Class X (D) (HGBP)*

Shares outstanding, beginning of period - 4,707.32 - - -

Shares issued - - - - -

Shares redeemed - - - - -

Shares outstanding, end of period - 4,707.32 - - -

Class Z (C) (USD)

Shares outstanding, beginning of period - 0.95 - - -

Shares issued - - - - -

Shares redeemed - (0.95) - - -

Shares outstanding, end of period - - - - -

Class Z (C) (HGBP)*

Shares outstanding, beginning of period - 127,721.80 - - -

Shares issued - - - - -

Shares redeemed - (34,303.22) - - -

Shares outstanding, end of period - 93,418.58 - - -

Class Z (D) (HGBP)*

Shares outstanding, beginning of period - 217,596.09 - - -

Shares issued - 2,351.84 - - -

Shares redeemed - (23,158.82) - - -

Shares outstanding, end of period - 196,789.11 - - -

* Hedged Classes

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12

Statistical Information

as at

31 January

2017

as at

31 July

2016

as at

31 July

2015

HSBC Portfolios World Selection 1

Class A (C) (USD) USD 12.9900 USD 13.1403 USD 12.6424

Class A (C) (HEUR)* EUR 13.5200 EUR 14.3110 EUR 12.4683

Class A (C) (HGBP)* GBP 16.2200 GBP 17.4333 GBP 12.6930

Class A (C) (HSGD)* SGD 7.3900 SGD 7.8909 SGD 10.2099

Class A (M) (USD) USD 9.9200 USD 10.1613 USD 10.0205

Class A (M) (HKD) HKD 1.2800 HKD 1.3112 HKD 10.0239

Class A (M) (HAUD)* AUD 7.4800 AUD 7.6846 AUD 10.0210

Class A (M) (HEUR)* EUR 10.5800 EUR 11.2531 EUR 9.9979

Class A (M) (HGBP)* GBP 12.3400 GBP 13.3803 GBP 10.0271

Class A (M) (HSGD)* SGD 6.9000 SGD 7.4594 SGD 9.9831

Class B (C) (USD) USD 10.6400 USD 10.7408 USD 10.2876

Class B (C) (HEUR)* EUR 11.3600 EUR 11.9940 -

Class B (C) (HGBP)* GBP 14.1800 GBP 15.1916 GBP 11.0143

Class Z (C) (HEUR)* - - EUR 12.3314

HSBC Portfolios World Selection 2

Class A (C) (USD) USD 13.4200 USD 13.3856 USD 12.8984

Class A (C) (HEUR)* EUR 13.9300 EUR 14.5488 EUR 12.7055

Class A (C) (HGBP)* GBP 16.6600 GBP 17.6680 GBP 12.9259

Class A (D) (USD) USD 10.5800 USD 10.6428 -

Class A (D) (HEUR)* EUR 10.9100 EUR 11.5126 EUR 10.0555

Class A (D) (HGBP)* GBP 13.1300 GBP 14.0507 -

Class A (M) (USD) USD 9.8900 USD 10.0168 USD 9.9541

Class A (M) (HKD) HKD 1.2800 HKD 1.2935 HKD 9.9646

Class A (M) (HAUD)* AUD 7.4800 AUD 7.6022 AUD 9.9952

Class A (M) (HEUR)* EUR 10.4800 EUR 11.0222 EUR 9.8745

Class A (M) (HGBP)* GBP 12.1500 GBP 13.0349 GBP 9.8789

Class B (C) (USD) - USD 11.1621 USD 10.7100

Class B (C) (HEUR)* EUR 11.2600 EUR 11.7238 EUR 10.1952

Class B (C) (HGBP)* GBP 14.7300 GBP 15.5675 GBP 11.3234

Class X (C) (HGBP)* GBP 13.3300 GBP 14.0896 -

Class X (D) (HGBP)* GBP 13.1600 GBP 14.0895 -

Class Z (C) (USD) - USD 10.7180 -

Class Z (C) (HGBP)* GBP 13.4000 GBP 14.1330 -

Class Z (D) (HGBP)* GBP 13.1800 GBP 14.1240 -

HSBC Portfolios World Selection 3

Class A (C) (USD) USD 13.7900 USD 13.4882 USD 13.2643

Class A (C) (HAUD)* AUD 8.4200 AUD 8.2397 AUD 10.6210

Class A (C) (HEUR)* EUR 14.3000 EUR 14.6292 EUR 13.0303

Class A (C) (HGBP)* GBP 17.0600 GBP 17.7256 GBP 13.2622

Class A (C) (HSGD)* - SGD 7.5689 SGD 10.0356

Net Asset Value per Share

* Hedged Classes

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13

Statistical Information (continued)

as at

31 January

2017

as at

31 July

2016

as at

31 July

2015

HSBC Portfolios World Selection 3 (continued)

Class A (D) (HEUR)* - EUR 11.2235 EUR 10.0134

Class A (M) (USD) USD 9.7000 USD 9.6394 USD 9.8058

Class A (M) (HKD) HKD 1.2500 HKD 1.2440 HKD 9.8098

Class A (M) (HAUD)* AUD 7.2800 AUD 7.2690 AUD 9.8143

Class A (M) (HEUR)* EUR 10.3400 EUR 10.6846 EUR 9.7960

Class A (M) (HGBP)* GBP 11.9200 GBP 12.5575 GBP 9.7618

Class A (M) (HSGD)* SGD 6.7600 SGD 7.0852 SGD 9.7684

Class B (C) (USD) - USD 11.3143 USD 11.0626

Class B (C) (HEUR)* - EUR 12.3644 EUR 10.9725

Class B (C) (HGBP)* GBP 15.2300 GBP 15.7828 GBP 11.7780

Class Z (C) (HEUR)* - - EUR 13.9946

HSBC Portfolios World Selection 4

Class A (C) (USD) USD 13.8900 USD 13.3815 USD 13.4764

Class A (C) (HAUD)* AUD 8.4000 AUD 8.0857 AUD 10.6705

Class A (C) (HEUR)* EUR 14.4300 EUR 14.5440 EUR 13.2438

Class A (C) (HGBP)* GBP 17.1800 GBP 17.5813 GBP 13.4542

Class A (D) (HEUR)* - EUR 11.7437 -

Class A (M) (USD) USD 9.5300 USD 9.3384 USD 9.7375

Class A (M) (HKD) HKD 1.2300 HKD 1.2041 HKD 9.7338

Class A (M) (HAUD)* AUD 10.3100 AUD 10.1444 AUD 14.0822

Class A (M) (HEUR)* EUR 10.2100 EUR 10.3986 EUR 9.7654

Class A (M) (HGBP)* GBP 11.7200 GBP 12.1671 GBP 9.6751

Class B (C) (USD) - USD 10.8391 USD 10.8532

Class B (C) (HEUR)* EUR 11.1400 EUR 11.1973 EUR 10.1496

Class B (C) (HGBP)* GBP 15.6100 USD 15.9387 GBP 12.1468

Class Z (C) (USD) - - USD 14.4446

HSBC Portfolios World Selection 5

Class A (C) (USD) USD 13.8800 USD 13.3079 USD 13.5630

Class A (C) (HAUD)* AUD 8.3400 AUD 7.9963 AUD 10.6931

Class A (C) (HEUR)* EUR 14.3900 EUR 14.4394 EUR 13.3212

Class A (C) (HGBP)* GBP 17.0400 GBP 17.3732 GBP 13.5059

Class A (C) (HSGD)* SGD 7.1400 SGD 7.2209 SGD 9.9034

Class A (M) (USD) USD 9.4900 USD 9.2498 USD 9.7190

Class A (M) (HKD) HKD 1.2300 HKD 1.1939 HKD 9.7255

Class A (M) (HAUD)* AUD 7.0900 AUD 6.9322 AUD 9.6981

Class A (M) (HEUR)* EUR 10.0600 EUR 10.1828 EUR 9.6792

Class A (M) (HGBP)* GBP 11.6900 GBP 12.0657 GBP 9.6738

Class A (M) (HSGD)* SGD 6.5900 SGD 6.7710 SGD 9.6759

Class B (C) (USD) USD 10.4100 USD 9.9488 USD 10.0813

Class B (C) (HEUR)* - EUR 12.2183 EUR 11.2037

Class B (C) (HGBP)* GBP 16.2200 GBP 16.4642 GBP 12.7073

Net Asset Value per Share

* Hedged Classes

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14

Notes to the Financial Statementsfor the period ended 31 January 2017

1. General Information

The Company was incorporated under the laws of the Grand Duchy of Luxembourg as an investment company (Société d’Investissement à

Capital Variable or “SICAV”) on 21 July 2009 with different compartments (hereafter called a “Portfolio”). Within each Portfolio, various Classes

of Shares may be issued. Each Portfolio consists of securities, cash and other sundry assets and liabilities. The accompanying Financial

Statements present the assets and liabilities of the individual Portfolios and of the Company taken as a whole. The Financial Statements of each

individual Portfolio are expressed in the currency designated in the prospectus for that particular Portfolio and the Financial Statements of the

Company are expressed in US Dollar (“USD”). The financial statements have been prepared in accordance with the format prescribed by the

Luxembourg authorities for Luxembourg investment companies.

The Company is an officially registered investment fund under part I of the 2010 Law, as amended and qualifies as a UCITS fund under the

amended European directive 2009/65/EC.

The Company seeks to provide a comprehensive range of Portfolios with the purpose of spreading investment risk and satisfying the

requirements of investors seeking to emphasise income, capital conservation and/or capital growth.

The Company offers investors, within the same vehicle, a choice of investments in one or more Portfolios. The Company may issue different

Classes of Shares in one or several Portfolios. Details of the characteristics of such share classes, if and when offered, by one or several

Portfolios will be determined by the directors of the Company (the “Directors” and each a “Director”).

As at 31 January 2017, the Company was comprised of the following Portfolios:

HSBC Portfolios – World Selection 1

HSBC Portfolios – World Selection 2

HSBC Portfolios – World Selection 3

HSBC Portfolios – World Selection 4

HSBC Portfolios – World Selection 5

2. Share Capital

The Company currently offers the following classes of shares:

Class Description

Class A A Shares are available to all investors.

Class B B Shares are available in the United Kingdom and Jersey through specific distributors selected by the Distributor. BShares may be available in other countries through specific distributors selected by the Distributor on application tothe Company.

Class E E Shares will be available in certain countries, subject to the relevant regulatory approval, through specificdistributors selected by the Distributor on application to the Company.

Class S* S Shares are available through distributors selected by the Distributor provided that the investors qualify asinstitutional investors within the meaning of article 174 of the 2010 Law.

Class X X Shares are available through distributors selected by the Distributor provided that the investors qualify asinstitutional investors within the meaning of article 174 of the 2010 Law.

Class Z Z Shares are available to investors having entered into a discretionary management agreement with an HSBC Groupentity and to investors subscribing via distributors selected by the Distributor provided that such investors qualify asinstitutional investors within the meaning of article 174 of 2010 Law.

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Notes to the Financial Statementsfor the period ended 31 January 2017 (continued)

15

2. Share Capital (continued)

* Successive issue of Classes S Shares are numbered 1, 2, 3, etc. and respectively referred to as S1, S2, S3 etc. A series of Class S Shares

may be issued in one or more Portfolios and each series may or may not be available in all Portfolios.

Within each share class of a Portfolio, the Company is entitled to create different sub-classes, distinguished by their class name, by their

distribution policy (Capital-Accumulation (“C”), Distribution (“D”), Quarterly Distribution (“Q”) and Monthly Distribution (“M”) shares), their

reference currency, their hedging activity (“H”) and/or by any other criterion to be stipulated by the Board of Directors of the Company.

Within each share class of a Portfolio, separate currency hedged classes may be issued (suffixed by “H” and the currency into which the Base

Currency is hedged e.g. “HEUR” or “HGBP”). Any fees relating to the execution of the currency hedging policy will be borne by the relevant

currency hedged class.

Within each share class of a Portfolio, the Management Company may decide to issue share classes having a different reference currency than

the base currency of the Portfolio and which denotes the currency in which the net asset value per share of the share class will be calculated. A

share class' reference currency is identified by a standard international currency acronym added as a suffix e.g. "ACEUR" for a Capital

Accumulation Share class expressed in Euro".

Investment Minima:

* or equivalent to USD amount in any other Dealing Currencies or Share Class Reference Currencies

3. Accounting Policies

The following accounting policies have been used consistently in dealing with items which are considered material in relation to the Company’s

financial statements.

a) Accounting convention

The financial statements have been prepared under the historical cost convention modified by the revaluation of investments.

b) Assets and portfolio securities valuation

Securities are initially recognised at cost, being the fair value of the consideration given.

All purchases and sales of securities are recognised on the trade date, i.e. the date the Company commits to purchase or sell the security.

Portfolio securities and/or financial derivative instruments which are listed on an official stock exchange are valued at the last available stock

price. Where such securities or other assets are quoted or dealt in or on more than one stock exchange or other organised markets, the Board

of Directors shall select the principal of such stock exchanges or markets for such purposes. Shares or units in undertakings for collective

investment the issue or redemption of which is restricted and in respect of which a secondary market is maintained by dealers who, as principal

market-makers, offer prices in response to market conditions may be valued by the Board of Directors in line with such prices.

Shares or units in open-ended undertakings for collective investment, which do not have a price quotation on a regulated market, will be valued

at the actual net asset value for such shares or units as of the relevant dealing day, failing which they shall be valued at the last available net

asset value which is calculated prior to such dealing day. In the case where events have occurred which have resulted in a material change in

the net asset value of such shares or units since the last net asset value was calculated, the value of such shares or units may be adjusted at

their fair value in order to reflect, in the reasonable opinion of the Board of Directors, such change.

Class of Shares A, B and E* S1 * X and Z*

Dealing Currency USD EUR GBP USD EUR GBP USD EUR GBP

Minimum initialinvestment andminimumholding

5,000 5,000 5,000 10,000,000 10,000,000 10,000,000 1,000,000 1,000,000 1,000,000

Minimumsubsequentinvestment

1,000 1,000 1,000 1,000,000 1,000,000 1,000,000 100,000 100,000 100,000

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Notes to the Financial Statementsfor the period ended 31 January 2017 (continued)

16

3. Accounting Policies (continued)

b) Assets and portfolio securities valuation (continued)

The financial derivative instruments which are not listed on any official stock exchange or traded on any other organised market are valued in a

reliable and verifiable manner on a daily basis and verified by a competent professional appointed by the Company.

The Financial Statements are presented on the basis of the net asset value calculated on 31 January 2017.

Futures Contracts

Upon entering into a futures contract, the Company is required to deposit with the broker, cash or securities in an amount equal to a certain

percentage of the contract amount which is referred to as the initial margin account. Subsequent payments, referred to as variation margin, are made

or received by each sub-fund periodically and are based on changes in the market value of open futures contracts.

The unrealised appreciation on future contracts is disclosed in the statement of net assets under “Unrealised appreciation on future contracts”.

Changes in the market value of open futures contracts are recorded as Net change in unrealised appreciation/(depreciation) on Futures contracts in

the statement of changes in net assets. Realised gains or losses, representing the difference between the value of the contract at the time it was

opened and the value at the time it was closed, are reported at the closing or expiration of futures contracts in the statement of changes in net assets

under “Net realised gains/(losses) on Futures contracts”. Securities deposited as initial margin account are designated in the statement of investments

and cash deposited is recorded under cash at bank in the statement of net assets. A receivable and/or a payable to brokers for the daily variation

margin is also recorded in the statement of net assets.

Forward Foreign Exchange Contracts

The values of the forward foreign currency exchange contracts are adjusted daily based on the applicable exchange rate of the underlying currency.

Changes in the value of these contracts are recorded as unrealised appreciation or depreciation until the contract settlement date. When the forward

contract is closed, the sub-fund records a realised gain or loss equal to the difference between the value at the time the contract was opened and the

value at the time it was closed.

The unrealised appreciation/(depreciation) on forward foreign exchange contracts is disclosed in the statement of net assets under “Unrealised gain

on forward foreign exchange contracts”. Realised gains/(losses) and change in unrealised appreciation/(depreciation) resulting there from are included

in the statement of changes in net assets respectively under “Net realised gains/(losses) on Forward foreign exchange contracts” and “Net change in

Unrealised appreciation/(depreciation) on Forward foreign exchange contracts”.

c) Income and Expenses

Interest is accrued on a day-to-day basis. Dividends are accounted for on an ex-dividend basis.

Expenses are recognised on an accrual basis.

d) Foreign Exchange

The cost of investments, income and expenses in currencies other than the Company relevant reporting currency have been recorded at the

rate of exchange ruling at the time of the transaction. The market value of the investments and other assets and liabilities in currencies other

than the relevant reporting currency has been converted at the rates of exchange ruling at the date of these financial statements. The exchange

rates used as at 31 January 2017 are as follows:

USD/AUD : 0.75915

USD/CAD : 0.76702

USD/CZK : 0.03999

USD/DKK : 0.14531

USD/EUR : 1.08070

USD/GBP : 1.25810

USD/HKD : 0.12888

USD/JPY : 0.00888

USD/PLN : 0.24994

USD/SEK : 0.11723

USD/SGD: 0.70982

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Notes to the Financial Statementsfor the period ended 31 January 2017 (continued)

17

e) Realised Profit/(Loss) on Sale of Investments

Realised profit/(loss) on sale of investments is the difference between the historical average cost of the investment and the sale proceeds.

f) Segregated Liability

The Company has segregated liability between its Portfolios; meaning, the assets of a Portfolio are exclusively available to satisfy the rights of

shareholders in relation to that Portfolio and the rights of creditors whose claims have arisen in connection with the creation, operation and

liquidation of that Portfolio.

g) Dividends payable

Dividends payable by the Company are recorded on the ex-date.

h) Net Asset Value per Share

The net asset value per share of the Company (the “Net Asset Value per Share”) is calculated by dividing the net assets of the relevant Class ofShares in a Portfolio included in the Statement of Net Assets by the number of Shares of the relevant class in that Portfolio in issue at the periodend.

4. Charges and Expenses

a) Management Fee

The Company pays to the Management Company an annual management fee calculated as a percentage of the net asset value of each

Portfolio or share class (“Management Fee”). The Management Fee is accrued daily and payable monthly in arrears. The fee rate per annum

actually charged and applicable to each Class of Shares is set below:

HSBC Portfolios – World Selection 1

Class A Shares 1.000%

Class B Shares 0.500%

Class E Shares 1.300%

Class S1 Shares 0.250%

Class X Shares 0.500%

Class Z Shares 0.000%

HSBC Portfolios – World Selection 2

Class A Shares 1.000%

Class B Shares 0.500%

Class E Shares 1.300%

Class S1 Shares 0.250%

Class X Shares 0.500%

Class Z Shares 0.000%

HSBC Portfolios – World Selection 3

Class A Shares 1.200%

Class B Shares 0.600%

Class E Shares 1.300%

Class S1 Shares 0.300%

Class X Shares 0.600%

Class Z Shares 0.000%

HSBC Portfolios – World Selection 4

Class A Shares 1.200%

Class B Shares 0.600%

Class E Shares 1.300%

Class S1 Shares 0.300%

Class X Shares 0.600%

Class Z Shares 0.000%

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Notes to the Financial Statementsfor the period ended 31 January 2017 (continued)

18

4. Charges and Expenses (continued)

a) Management Fee (continued)

HSBC Portfolios – World Selection 5

Class A Shares 1.300%

Class B Shares 0.650%

Class E Shares 1.300%

Class S1 Shares 0.325%

Class X Shares 0.650%

Class Z Shares 0.000%

The Management Fee covers management, advisory and distribution services provided in relation to the relevant Portfolio of the Company by

the Management Company, the Investment Advisers and the Share Distributors. The Management Company is responsible for discharging, out

of such fee, the fees of the Investment Advisers and the Share Distributors and may pay part of such fee to recognised intermediaries or such

other person as the Management Company may determine, at its discretion.

The Management Company may instruct the Company to pay a portion of the Management Fee directly out of the assets of the Company to

any of such service providers. In such case the Management Fee due to Management Company is reduced accordingly.

The Management Company is also acting as a management company for other investment funds, namely HSBC Global Investment Funds and

HSBC Amanah Funds.

The Company has invested in other HSBC promoted funds, which include the following funds:

HSBC Global Investment Funds - Global Asset Backed Bond "ZC"

HSBC Global Investment Funds - Global Corporate Bond "ZQ"

HSBC Global Investment Funds - Global Emerging Markets Bond "ZQ"

HSBC Global Investment Funds - Global Emerging Markets Local Debt "ZQ"

HSBC Global Investment Funds - Global Government Bond "ZQ"

HSBC Global Investment Funds - Global High Yield Bond "ZQ"

HSBC Global Investment Funds - Global Real Estate Equity "ZQ"

HSBC Global Investment Funds - Global Short Duration High Yield Bond "ZQ"

HSBC American Index "Institutional Acc"

HSBC Corporate Bond Fund "Institutional Acc"

HSBC ESI Worldwide Equity ETF

HSBC European Index "Institutional Acc"

HSBC FTSE All Share Index Acc

HSBC Global US Dollar Liquidity Fund "Z"

HSBC Japan Index "Institutional Acc"

HSBC Worldwide Equity ETF

The management fee rate applicable to the above underlying funds' share classes is nil.

b) Operating, Administrative and Servicing Expenses

There are certain operating, administrative and servicing expenses (‘the expenses’) incurred throughout the lifetime of a Portfolio or share class.

These expenses are associated with services rendered to a relevant Portfolio which are overseen by either the Management Company or the

Company. Many of the services are delegated to other service providers who are paid directly by the Company.

Operating, Administrative and Servicing Expenses cover the ongoing depositary fees and safekeeping charges payable to the Depositary Bank

and its correspondent banks, fees for fund accounting and administration services (including domiciliary services) payable to the Administrative

Agent and transfer agency fees for registrar and transfer agency services payable to the Transfer Agent.

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Notes to the Financial Statementsfor the period ended 31 January 2017 (continued)

19

4. Charges and Expenses (continued)

b) Operating, Administrative and Servicing Expenses (continued)

Operating, Administrative and Servicing Expenses also cover expenses relating to the Luxembourg asset-based taxe d’abonnement;

reasonable out-of-pocket expenses incurred by the Board of Directors; legal expenses for advice on behalf of the Company; audit fees; ongoing

registration and listing fees (if applicable); the costs of preparing, printing, translating and distributing the Company’s Prospectus, financial

reports, statements and other documents made available directly or through intermediaries to its shareholders. These expenses also cover

formation expenses for current and new Portfolios including initial registration fees (these expenses are amortised over a period not exceeding 5

years from the formation date of the Portfolio). The only operating expenses which are not covered by the fee rate paid to the management

company and which are included under this caption are ‘hedging fees’ incurred by the respective portfolios for hedging the different share

classes.

The Company pays the expenses directly to the service providers and as such the ongoing charge for each share class will vary. The expenses

paid by the Company will not exceed 0.25% of the net assets per annum on a rolling basis of each share class. Where actual expenses exceed

0.25% per annum, the excess will be borne directly by the Management Company or by HSBC Global Asset Management distributors.

The expenses will be accrued daily and will be payable monthly in arrears. The accrual amount will be reviewed each quarter using the previous

12 months’ expenses as an initial basis and amending when necessary.

The amounts of Depositary and Administration Fees which are included in the Operational Costs are the following:

Sub-Fund Sub-Fund

Currency

Depositary and Administration Agent Fees

In EUR

HSBC Portfolios - World Selection 1 USD 56,296

HSBC Portfolios - World Selection 2 USD 68,355

HSBC Portfolios - World Selection 3 USD 61,184

HSBC Portfolios - World Selection 4 USD 58,463

HSBC Portfolios - World Selection 5 USD 44,527

c) Directors’ Fees, Expenses and Interests

A Director may be a party to, or otherwise interested in, any transaction or arrangement with the Company or in which the Company is

interested, provided that he has disclosed to the other Directors, prior to the conclusion of any such transaction or arrangement, the nature and

extent of any interest of his therein. A Director may vote in respect of any contract or arrangement or any proposal whatsoever in which he has

an interest, having first disclosed such interest. He shall not be disqualified by his office from contracting with the Company. If a Director

declares his interest in any contract which the Company is considering entering into, he may be counted in the quorum of any meeting to

consider the contract and may vote on any resolution to enter into such contract.

The Company pays an annual fee to each of the Independent Directors amounting to EUR 10,000. This amount is paid by the Management

Company through the operating, administrative and servicing expenses paid by the Company. The amount is accrued with every net asset

value calculation and paid quarterly in arrears. As at 31 January 2017, EUR 10,000 was payable to the Independent Directors.

With effect from 1 October 2015 the Company also pays an annual fee to each of the Independent Directors who are members of the

Investment Performance Working Group, a sub-committee of the Board established to monitor the investment performance and governance and

risk profile of the Company's sub-funds, amounting to EUR 1,430. The amount is accrued with every net asset value calculation and paid

quarterly in arrears. As at 31 January 2017, EUR 715 was payable to the Independent Directors.

5. Taxation of the Company

The following is based on the Company’s understanding of the law and practice currently in force in the Grand Duchy of Luxembourg and is

subject to changes therein.

The Company is not subject to taxation in Luxembourg on its income, profits or gains.

The Company is not subject to net wealth tax in Luxembourg. No stamp duty, capital duty or other tax will be payable in Luxembourg upon theissue of the Shares of the Company.

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Notes to the Financial Statementsfor the period ended 31 January 2017 (continued)

20

5. Taxation of the Company (continued)

The Portfolios are nevertheless, in principle, subject to a subscription tax (taxe d'abonnement) levied at the rate of 0.05% per annum based on

its NAV at the end of the relevant quarter, calculated and paid quarterly. A reduced subscription tax rate of 0.01% per annum is however

applicable to any Portfolio whose exclusive object is the collective investment in money market instruments, the placing of deposits with credit

institutions, or both. A reduced subscription tax rate of 0.01% per annum is also applicable to any Portfolio or Share Class provided that their

shares are only held by one or more institutional investors within the meaning of article 174 of the 2010 Law (an “Institutional Investor”).

A subscription tax exemption applies to:

a) The portion of any Portfolio’s assets (prorata) invested in a Luxembourg investment fund or any of its sub-fund to the extent it is subject to the

subscription tax;

b) Any Portfolio (i) whose securities are only held by Institutional Investor(s), and (ii) whose sole object is the collective investment in money

market instruments and the placing of deposits with credit institutions, and (iii) whose weighted residual portfolio maturity does not exceed 90

days, and (iv) that have obtained the highest possible rating from a recognised rating agency. If several Share Classes are in issue in the

relevant Portfolio meeting (ii) to (iv) above, only those Share Classes meeting (i) above will benefit from this exemption;

c) Any Portfolio, whose main objective is the investment in microfinance institutions; and

d) Any Portfolio, (i) whose securities are listed or traded on a stock exchange and (ii) whose exclusive object is to replicate the performance of

one or more indices. If several Share Classes are in issue in the relevant Portfolio meeting (ii) above, only those Share Classes meeting (i)

above will benefit from this exemption.

e) Any Portfolio only held by pension funds and assimilated vehicles.

Withholding tax

Interest and dividend income received by the Company may be subject to non-recoverable withholding tax in the source countries. The

Company may further be subject to tax on the realised or unrealised capital appreciation of its assets in the countries of origin. The Company

may benefit from double tax treaties entered into by Luxembourg, which may provide for exemption from withholding tax or reduction of

withholding tax rate.

Distributions made by the Company as well as liquidation proceeds and capital gains derived therefrom are not subject to withholding tax in

Luxembourg.

6. Forward Foreign Exchange Contracts

As at 31 January 2017, the Company had entered into various forward foreign exchange contracts, for the purpose of portfolio and share class

hedging, which obliges the Company to deliver currencies at specified dates.

Open forward foreign exchange contracts as at 31 January 2017, are as follows:

Currency Bought Currency Sold Unrealised

Maturity Date Bought Amount Sold Amount Counterparty Gain / (Loss)

USD

HSBC Portfolios - World Selection 1

1 February 2017 AUD 20,950,379 USD (15,812,299) HSBC Bank Plc, London 91,796

1 February 2017 EUR 260,266,734 USD (276,365,533) HSBC Bank Plc, London 4,915,083

1 February 2017 GBP 27,490,272 USD (33,840,443) HSBC Bank Plc, London 745,688

1 February 2017 SGD 522,765 USD (365,847) HSBC Bank Plc, London 5,228

1 February 2017 USD 15,785,000 AUD (20,950,379) HSBC Bank Plc, London (119,095)

1 February 2017 USD 1,033,488 EUR (968,914) HSBC Bank Plc, London (13,656)

1 February 2017 USD 34,600,302 GBP (27,490,272) HSBC Bank Plc, London 14,170

1 February 2017 USD 366,661 SGD (522,765) HSBC Bank Plc, London (4,414)

7 February 2017 CAD 648,000 USD (480,656) HSBC Bank Plc, London 16,393

7 February 2017 EUR 371,000 USD (389,110) HSBC Bank Plc, London 11,894

7 February 2017 EUR 262,000 USD (279,015) Royal Bank of Scotland 4,174

7 February 2017 EUR 242,000 USD (259,320) UBS 2,251

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Notes to the Financial Statementsfor the period ended 31 January 2017 (continued)

21

6. Forward Foreign Exchange Contracts (continued)

Currency Bought Currency Sold Unrealised

Maturity Date Bought Amount Sold Amount Counterparty Gain / (Loss)

USD

HSBC Portfolios - World Selection 1 (continued)

7 February 2017 USD 13,532,207 AUD (18,249,000) HSBC Bank Plc, London (320,062)

7 February 2017 USD 46,165 CAD (62,000) HSBC Bank Plc, London (1,392)

7 February 2017 USD 465,166 CAD (616,000) Royal Bank of Scotland (7,337)

7 February 2017 USD 2,645,371 CAD (3,515,000) J.P. Morgan (50,811)

7 February 2017 USD 87,564 EUR (84,000) UBS (3,230)

7 February 2017 USD 50,756,411 EUR (47,473,000) HSBC Bank Plc, London (555,893)

8 February 2017 AUD 21,136,536 USD (15,923,188) HSBC Bank Plc, London 119,527

8 February 2017 EUR 966,596 USD (1,031,358) HSBC Bank Plc, London 13,549

8 February 2017 GBP 205,000 USD (251,038) UBS 6,896

8 February 2017 GBP 27,429,199 USD (34,529,220) HSBC Bank Plc, London (15,714)

8 February 2017 SGD 520,570 USD (365,212) HSBC Bank Plc, London 4,328

8 February 2017 USD 10,000,806 GBP (7,920,000) HSBC Bank Plc, London 35,737

8 February 2017 USD 39,759 GBP (32,000) UBS (504)

8 February 2017 USD 27,148,870 JPY (3,076,254,000) J.P. Morgan (181,259)

8 February 2017 USD 538,890 JPY (62,713,000) UBS (18,266)

8 February 2017 USD 1,327,851 JPY (151,410,000) HSBC Bank Plc, London (17,309)

15 February 2017 JPY 488,056,233 USD (4,242,724) HSBC Bank Plc, London 94,417

18 April 2017 USD 1,436,463 DKK (9,960,000) J.P. Morgan (16,141)

4,756,048

HSBC Portfolios - World Selection 2

1 February 2017 AUD 1,471,059 USD (1,113,492) HSBC Bank Plc, London 3,235

1 February 2017 EUR 216,148,438 USD (229,518,299) HSBC Bank Plc, London 4,081,918

1 February 2017 GBP 81,734,826 USD (100,615,326) HSBC Bank Plc, London 2,217,101

1 February 2017 USD 1,108,365 AUD (1,471,059) HSBC Bank Plc, London (8,362)

1 February 2017 USD 230,553,866 EUR (216,148,438) HSBC Bank Plc, London (3,046,351)

1 February 2017 USD 102,874,278 GBP (81,734,826) HSBC Bank Plc, London 41,852

7 February 2017 EUR 957,000 USD (1,019,152) HSBC Bank Plc, London 15,244

7 February 2017 EUR 577,000 USD (616,702) UBS 6,962

7 February 2017 USD 60,023,789 EUR (56,150,000) Royal Bank of Scotland (667,254)

8 February 2017 AUD 1,488,865 USD (1,121,635) HSBC Bank Plc, London 8,419

8 February 2017 EUR 212,138,508 USD (226,351,788) HSBC Bank Plc, London 2,973,539

8 February 2017 GBP 81,302,187 USD (102,347,176) HSBC Bank Plc, London (46,579)

8 February 2017 USD 18,259,047 GBP (14,460,000) HSBC Bank Plc, London 65,247

8 February 2017 USD 459,858 GBP (365,000) HSBC Bank Plc, London 609

8 February 2017 USD 401,889 GBP (323,000) HSBC Bank Plc, London (4,514)

15 February 2017 JPY 561,551,363 USD (4,881,625) UBS 108,635

5,749,701

Page 24: HSBC Portfolios - FS - AR - 31.01 Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios World Selection 1 World Selection 2 World Selection 3 World Selection 4

Notes to the Financial Statementsfor the period ended 31 January 2017 (continued)

22

6. Forward Foreign Exchange Contracts (continued)

Currency Bought Currency Sold Unrealised

Maturity Date Bought Amount Sold Amount Counterparty Gain / (Loss)

USD

HSBC Portfolios - World Selection 3

1 February 2017 AUD 8,321,641 USD (6,280,698) HSBC Bank Plc, London 36,522

1 February 2017 EUR 219,529,593 USD (233,108,596) HSBC Bank Plc, London 4,145,770

1 February 2017 GBP 110,647,118 USD (136,206,270) HSBC Bank Plc, London 3,001,362

1 February 2017 SGD 160,399 USD (112,252) HSBC Bank Plc, London 1,604

1 February 2017 USD 6,269,916 AUD (8,321,641) HSBC Bank Plc, London (47,305)

1 February 2017 USD 234,160,363 EUR (219,529,593) HSBC Bank Plc, London (3,094,004)

1 February 2017 USD 139,264,667 GBP (110,647,118) HSBC Bank Plc, London 57,035

1 February 2017 USD 112,502 SGD (160,399) HSBC Bank Plc, London (1,354)

7 February 2017 EUR 514,000 USD (547,381) HSBC Bank Plc, London 8,188

7 February 2017 EUR 156,000 USD (164,376) HSBC Bank Plc, London 4,240

7 February 2017 USD 36,024,963 EUR (33,700,000) HSBC Bank Plc, London (400,471)

8 February 2017 AUD 8,372,002 USD (6,307,039) HSBC Bank Plc, London 47,343

8 February 2017 EUR 219,663,876 USD (234,381,355) HSBC Bank Plc, London 3,079,021

8 February 2017 GBP 110,359,434 USD (138,925,863) HSBC Bank Plc, London (63,226)

8 February 2017 SGD 160,281 USD (112,447) HSBC Bank Plc, London 1,333

8 February 2017 USD 22,328 AUD (29,553) HSBC Bank Plc, London (103)

8 February 2017 USD 13,258,644 GBP (10,500,000) HSBC Bank Plc, London 47,378

8 February 2017 USD 373,922 GBP (296,000) HSBC Bank Plc, London 1,490

8 February 2017 USD 214,369 GBP (172,000) HSBC Bank Plc, London (2,044)

15 February 2017 JPY 767,080,184 USD (6,668,308) HSBC Bank Plc, London 148,395

15 February 2017 USD 6,915,298 GBP (5,510,650) HSBC Bank Plc, London (19,467)

15 February 2017 USD 3,330,922 EUR (3,110,491) HSBC Bank Plc, London (32,434)

6,919,273

HSBC Portfolios - World Selection 4

1 February 2017 AUD 819,330 USD (618,389) HSBC Bank Plc, London 3,590

1 February 2017 EUR 347,679,662 USD (369,185,387) HSBC Bank Plc, London 6,565,857

1 February 2017 GBP 72,489,743 USD (89,234,657) HSBC Bank Plc, London 1,966,323

1 February 2017 USD 617,322 AUD (819,330) HSBC Bank Plc, London (4,658)

1 February 2017 USD 370,851,120 EUR (347,679,662) HSBC Bank Plc, London (4,900,124)

1 February 2017 USD 91,238,346 GBP (72,489,743) HSBC Bank Plc, London 37,366

8 February 2017 AUD 821,684 USD (619,015) HSBC Bank Plc, London 4,647

8 February 2017 EUR 348,765,012 USD (372,132,268) HSBC Bank Plc, London 4,888,628

8 February 2017 GBP 72,233,605 USD (90,931,202) HSBC Bank Plc, London (41,383)

8 February 2017 USD 103,007 EUR (96,169) HSBC Bank Plc, London (953)

15 February 2017 JPY 709,495,219 USD (6,167,716) HSBC Bank Plc, London 137,255

15 February 2017 USD 4,609,659 EUR (4,304,605) HSBC Bank Plc, London (44,885)

15 February 2017 USD 7,108,537 GBP (5,664,638) HSBC Bank Plc, London (20,011)

8,591,652

Page 25: HSBC Portfolios - FS - AR - 31.01 Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios World Selection 1 World Selection 2 World Selection 3 World Selection 4

Notes to the Financial Statementsfor the period ended 31 January 2017 (continued)

23

6. Forward Foreign Exchange Contracts (continued)

Currency Bought Currency Sold Unrealised

Maturity Date Bought Amount Sold Amount Counterparty Gain / (Loss)

USD

HSBC Portfolios - World Selection 5

1 February 2017 AUD 424,053 USD (320,054) HSBC Bank Plc, London 1,858

1 February 2017 EUR 114,535,391 USD (121,619,978) HSBC Bank Plc, London 2,162,977

1 February 2017 GBP 27,165,728 USD (33,441,102) HSBC Bank Plc, London 736,712

1 February 2017 SGD 1,993 USD (1,395) HSBC Bank Plc, London 20

1 February 2017 USD 319,501 AUD (424,053) HSBC Bank Plc, London (2,411)

1 February 2017 USD 122,168,717 EUR (114,535,391) HSBC Bank Plc, London (1,614,238)

1 February 2017 USD 34,191,817 GBP (27,165,728) HSBC Bank Plc, London 14,003

1 February 2017 USD 1,398 SGD (1,993) HSBC Bank Plc, London (17)

8 February 2017 AUD 455,604 USD (343,294) HSBC Bank Plc, London 2,511

8 February 2017 EUR 114,846,321 USD (122,541,025) HSBC Bank Plc, London 1,609,797

8 February 2017 GBP 27,288,576 USD (34,352,197) HSBC Bank Plc, London (15,634)

8 February 2017 SGD 2,000 USD (1,403) HSBC Bank Plc, London 17

8 February 2017 USD 65,830 GBP (52,616) HSBC Bank Plc, London (375)

15 February 2017 JPY 278,056,749 USD (2,417,176) HSBC Bank Plc, London 53,791

15 February 2017 USD 1,821,427 EUR (1,700,890) HSBC Bank Plc, London (17,736)

15 February 2017 USD 1,885,220 GBP (1,502,291) HSBC Bank Plc, London (5,307)

2,925,968

7. Futures Contracts

As at 31 January 2017, the Company had entered in the following outstanding futures contracts. The margin accounts on these futures

contracts are recognized under the cash at bank figures in the statement of net assets.

Number of Unrealised Gain /

Underlying contracts Currency Commitment Maturity date (Loss)

USD USD

HSBC Portfolios - World Selection 1

EUX EURO BUND 25 EUR 4,381,564 08/03/2017 15,805

OSE Topix Index 76 JPY 10,178,903 09/03/2017 315,949

Mini MSCI Emerging Markets Index 91 USD 4,165,298 17/03/2017 193,375

EUX EURO STOXX 50 70 EUR 2,450,650 17/03/2017 39,716

E-mini S&P 500 21 USD 2,378,644 17/03/2017 11,209

CBT US 10Yr Note (125) USD 15,575,196 22/03/2017 43,914

619,968

HSBC Portfolios - World Selection 2

EUX EURO BUND 39 EUR 6,835,240 08/03/2017 24,656

OSE Topix Index 84 JPY 11,250,366 09/03/2017 349,207

Mini MSCI Emerging Markets Index 110 USD 5,034,975 17/03/2017 233,750

EUX EURO STOXX 50 75 EUR 2,625,696 17/03/2017 42,553

Page 26: HSBC Portfolios - FS - AR - 31.01 Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios World Selection 1 World Selection 2 World Selection 3 World Selection 4

Notes to the Financial Statementsfor the period ended 31 January 2017 (continued)

24

7. Futures Contracts (continued)

Number of Unrealised Gain /

Underlying contracts Currency Commitment Maturity date (Loss)

USD USD

HSBC Portfolios - World Selection 2 (continued)

E-mini S&P 500 22 USD 2,491,913 17/03/2017 11,742

CBT US 10Yr Note (92) USD 11,463,344 22/03/2017 127,219

LIFFE Long Gilt 1 GBP 155,797 29/03/2017 990

790,117

HSBC Portfolios - World Selection 3

EUX EURO BUND 31 EUR 5,433,139 08/03/2017 19,599

OSE Topix Index 105 JPY 14,062,958 09/03/2017 436,509

Mini MSCI Emerging Markets Index 133 USD 6,087,743 17/03/2017 282,625

EUX EURO STOXX 50 144 EUR 5,041,337 17/03/2017 81,701

CBT US 10Yr Note (164) USD 20,434,657 22/03/2017 56,328

LIFFE Long Gilt (8) GBP 1,246,375 29/03/2017 (7,700)

869,062

HSBC Portfolios - World Selection 4

OSE Topix Index 102 JPY 13,661,159 09/03/2017 424,037

Mini MSCI Emerging Markets Index 130 USD 5,950,425 17/03/2017 276,250

EUX EURO STOXX 50 113 EUR 3,956,049 17/03/2017 64,113

764,400

HSBC Portfolios - World Selection 5

OSE Topix Index 41 JPY 5,491,250 09/03/2017 170,447

Mini MSCI Emerging Markets Index 55 USD 2,517,488 17/03/2017 116,875

EUX EURO STOXX 50 58 EUR 2,030,538 17/03/2017 32,907

320,229

The broker linked to all of the above futures contracts is HSBC Bank Plc, London.

Page 27: HSBC Portfolios - FS - AR - 31.01 Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios World Selection 1 World Selection 2 World Selection 3 World Selection 4

Notes to the Financial Statementsfor the period ended 31 January 2017 (continued)

25

8. Dividends

The Company paid the following dividends during the period ended 31 January 2017:

Certain share classes in issue as at 31 January 2017 have had UK Reporting Fund status since 1 August 2015. Details of the share classes that

have UK Reporting Fund status can be found on the HM Revenue & Customs website (www.hmrc.gov.uk).

At the date of this Report, the status can be found at https://www.gov.uk/government/publications/offshore-funds-list-of-reporting-funds.

The Company publishes annual reportable income information that shareholders require for their UK tax returns at

www.kpmgreportingfunds.co.uk. If investors do not have access to the internet they can apply in writing at the registered office of the Company.

Aug-

2016

Sep-

2016

Oct-

2016

Nov-

2016

Dec-

2016

Jan-

2017

HSBC Portfolios World Selection 1

A (M) (USD) 0.018526 0.017879 0.019073 0.020471 0.022174 0.022403

A (M) (HKD) 0.002392 0.002307 0.002461 0.002640 0.002861 0.002889

A (M) (HAUD) 0.021155 0.018791 0.019323 0.019796 0.020704 0.022144

A (M) (HEUR) 0.012324 0.010391 0.011388 0.008246 0.009597 0.001612

A (M) (HGBP) 0.026282 0.020562 0.020203 0.018335 0.018617 0.011363

A (M) (HSGD) 0.015963 0.014336 0.013403 0.011151 0.013460 0.014501

HSBC Portfolios World Selection 2

A (D) (USD) - - - - 0.089159 -

A (D) (HEUR) - - - - 0.110038 -

A (D) (HGBP) - - - - 0.124216 -

A (M) (USD) 0.022915 0.022544 0.024215 0.025450 0.026908 0.026793

A (M) (HKD) 0.002961 0.002911 0.003127 0.003285 0.003475 0.003458

A (M) (HAUD) 0.024429 0.022331 0.023189 0.023451 0.024094 0.025466

A (M) (HEUR) 0.017278 0.015640 0.017002 0.013586 0.014621 0.006491

A (M) (HGBP) 0.031608 0.026291 0.026150 0.024311 0.024188 0.016783

X (D) (HGBP) - - - - 0.159570 -

Z (D) (HGBP) - - - - 0.204155 -

HSBC Portfolios World Selection 3

A (M) (USD) 0.024007 0.024171 0.025195 0.025906 0.026843 0.026778

A (M) (HKD) 0.003100 0.003119 0.003252 0.003342 0.003464 0.003454

A (M) (HAUD) 0.024821 0.023224 0.023593 0.023456 0.023742 0.025137

A (M) (HEUR) 0.018953 0.017936 0.018535 0.014654 0.015076 0.007119

A (M) (HGBP) 0.032978 0.028496 0.027455 0.025152 0.024390 0.017221

A (M) (HSGD) 0.019795 0.018808 0.017736 0.015095 0.016723 0.017603

A (D) (HEUR) - - - - 0.054394 -

HSBC Portfolios World Selection 4

A (M) (USD) 0.024997 0.025652 0.025977 0.026215 0.026703 0.026662

A (M) (HKD) 0.003225 0.003308 0.003350 0.003379 0.003443 0.003436

A (M) (HAUD) 0.036513 0.034848 0.034606 0.033892 0.033884 0.035939

A (M) (HEUR) 0.020416 0.019971 0.019760 0.015485 0.015360 0.007560

A (M) (HGBP) 0.034201 0.030451 0.028473 0.025757 0.024445 0.017470

HSBC Portfolios World Selection 5

A (M) (USD) 0.022588 0.023947 0.023994 0.023948 0.024016 0.023957

A (M) (HKD) 0.002917 0.003091 0.003097 0.003090 0.003100 0.003090

A (M) (HAUD) 0.023336 0.022708 0.022352 0.021687 0.021447 0.022755

A (M) (HEUR) 0.017558 0.017940 0.017465 0.013053 0.012460 0.004677

A (M) (HGBP) 0.031104 0.028331 0.026148 0.023066 0.021281 0.014215

A (M) (HSGD) 0.018609 0.018558 0.016824 0.013796 0.014788 0.015589

Page 28: HSBC Portfolios - FS - AR - 31.01 Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios World Selection 1 World Selection 2 World Selection 3 World Selection 4

Notes to the Financial Statementsfor the period ended 31 January 2017 (continued)

26

9. Soft Commission Arrangements

The Investment Adviser of the Portfolios may from time to time receive goods and services which are paid for out of broker commissions

provided that they relate to execution and research services which meet the criteria laid down by United Kingdom’s Financial Conduct Authority

Rules.

There were no soft commissions paid or accrued during the period.

10. Transactions with connected persons

(a) Bank accounts and deposits with related parties

Bank accounts are maintained and deposits are made with HSBC Bank Plc, a member of HSBC Group. Details of such bank balances and

deposits held as at 31 January 2017 and interest income earned from the deposits during the period then ended are shown below.

HSBC Portfolios - HSBC Portfolios - HSBC Portfolios - HSBC Portfolios - HSBC Portfolios -

World Selection 1 World Selection 2 World Selection 3 World Selection 4 World Selection 5

USD USD USD USD USD

HSBC Bank Plc

-Cash at bank 38,009,938 35,497,054 30,908,011 16,514,719 8,006,485

-Interest income earned

from deposits 2,278 - - - -

-Bank overdraft (5,168) - (22) (71,626) (31,069)

-Interest on bank overdraft (284) - (353) (30) (75)

(b) Investment transactions with related parties

In their purchases and sales of investments, the sub-funds utilise the services of HSBC Bank Plc, a member of HSBC Group. Details of such

transactions executed during the period ended 31 January 2017 are shown below.

HSBC Portfolios - HSBC Portfolios - HSBC Portfolios - HSBC Portfolios - HSBC Portfolios -

World Selection 1 World Selection 2 World Selection 3 World Selection 4 World Selection 5

USD USD USD USD USD

HSBC Bank Plc

Total aggregate value of such

transactions during the period 285,457,000 396,204,048 393,565,304 288,997,083 95,343,287

Percentage of such transactions in value

to total transactions during the period 70.53% 95.53% 95.12% 96.47% 92.95%

Commission paid during the period 5,227 5,754 7,036 6,091 2,732

Average rate of commission 0.002% 0.001% 0.002% 0.002% 0.003%

11. Publication of TER (Total Expense Ratio)

The TER has been computed by the Administrator as per the industry standard on the calculation and disclosure of the TER of collective

investment schemes.

The percentages disclosed below are the Synthetic TERs, meaning the actual expenses incurred during the period are annualised and

calculated as a percentage of the average Asset Under Management of the share class for the period. These Synthetic TERs include the TER

percentages of the underlying fund of funds held in the Portfolios.

In addition, the TERs also include the percentages corresponding to passive hedging fees.

Page 29: HSBC Portfolios - FS - AR - 31.01 Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios World Selection 1 World Selection 2 World Selection 3 World Selection 4

Notes to the Financial Statementsfor the period ended 31 January 2017 (continued)

27

12. Publication of TER (Total Expense Ratio) (continued)

TER (%) for the active Portfolios and share classes for the period ended 31 January 2017:

HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios

World Selection 1 World Selection 2 World Selection 3 World Selection 4 World Selection 5

Class A (C) USD 1.30 1.30 1.43 1.43 1.51

Class A (C) (HAUD) - - 1.60 1.58 1.72

Class A (C) (HEUR) 1.36 1.41 1.49 1.44 1.56

Class A (C) (HGBP) 1.36 1.41 1.49 1.44 1.57

Class A (C) (HSGD) 1.37 - 1.59 - 1.42

Class A (D) (USD) - 1.25 - - -

Class A (D) (HEUR) - 1.41 1.59 1.60 -

Class A (D) (HGBP) - 1.31 - - -

Class A (M) (USD) 1.35 1.35 1.54 1.55 1.70

Class A (M) (HKD) 1.35 1.36 1.53 1.54 1.58

Class A (M) (HAUD) 1.41 1.40 1.63 1.60 1.66

Class A (M) (HEUR) 1.41 1.41 1.62 1.59 1.68

Class A (M) (HGBP) 1.41 1.40 1.59 1.59 1.67

Class A (M) (HSGD) 1.42 - 1.41 - 1.52

Class B (C) (USD) 0.84 0.85 0.83 0.83 0.90

Class B (C) (HEUR) 0.91 0.91 0.99 0.94 0.91

Class B (C) (HGBP) 0.86 0.91 0.89 0.89 0.91

Class X (C) (HGBP) - 0.91 - - -

Class X (D) (HGBP) - 0.91 - - -

Class Z (C) (HGBP) - 0.40 - - -

Class Z (D) (HGBP) - 0.40 - - -

13. Transaction costs

For the period from 01 August 2016 to 31 January 2017, the Fund incurred transaction costs related to purchase or sale of securities and

derivative products as follows:

HSBC Portfolios - World Selection 1 6,503USD

HSBC Portfolios - World Selection 2 7,128USD

HSBC Portfolios - World Selection 3 9,544USD

HSBC Portfolios - World Selection 4 9,267USD

HSBC Portfolios - World Selection 5 4,901USD

The above transaction costs include costs directly linked to the acquisition or sale of investments, to the extent that such costs are shown

separately on transaction confirmations.

Transaction costs are incorporated directly in dealing prices of assets and are not reported as a separate line in the statement of operations.

14. Global Exposure

The global risk on derivatives has been determined according to the commitment approach during the financial period ended

31 January 2017.

15. Pricing Adjustment

The Directors adopted a Pricing Adjustment Policy on 10 June 2014, details of which are disclosed in section 2.6 (4) “Pricing Adjustment” of the

current Prospectus of the Company.

As at 31 January 2017, the Directors have not implemented this policy and there were no pricing adjustments during the period.

16. Subsequent Events

There were no events subsequent to the semi-annual report date which would require adjustments to or disclosures in these financial

statements.

Page 30: HSBC Portfolios - FS - AR - 31.01 Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios World Selection 1 World Selection 2 World Selection 3 World Selection 4

Schedule of Investments and Other Net Assetsas at 31 January 2017

HSBC Portfolios - World Selection 1

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

Transferable Securities Admitted to an Official Stock Exchange Listing 171,982,113 39.20

Bonds 171,982,113 39.20

Australia 14,867,541 3.39

690,000 Australia (Govt) 2.75% 21/10/2019 536,503 0.12

4,290,000 Australia (Govt) 2.75% 21/04/2024 3,318,322 0.76

1,790,000 Australia (Govt) 3.25% 21/10/2018 1,393,686 0.32

4,280,000 Australia (Govt) 3.25% 21/04/2029 3,370,729 0.77

1,200,000 Australia (Govt) 4.5% 21/04/2033 1,066,844 0.24

2,800,000 Australia (Govt) 5.75% 15/05/2021 2,447,778 0.56

1,870,000 Australia (Govt) 5.75% 15/07/2022 1,677,688 0.38

207,000 Commonwealth Bank of Australia 5.5% 06/08/2019 253,725 0.06

88,000 Scentre Group Trust 2.375% 05/11/2019 88,241 0.02

277,000 Scentre Management 1.5% 16/07/2020 310,536 0.07

246,000 Sydney Airport Finance 2.75% 23/04/2024 290,938 0.07

100,000 Transurban Finance 1.875% 16/09/2024 112,551 0.02

Austria 490,144 0.11

207,000 OMV 6.75% VRN PERP 238,805 0.05

207,000 Telekom Finanzmanagement 3.125% 03/12/2021 251,339 0.06

Belgium 1,642,294 0.37

121,000 Anheuser Busch InBev 1.5% 17/03/2025 134,616 0.03

32,000 Anheuser Busch InBev 2% 17/03/2028 35,871 0.01

231,000 Anheuser-Busch InBev 4% 26/04/2018 262,111 0.06

157,000 Anheuser-Busch InBev Worldwide 2.5% 15/07/2022 154,666 0.03

300,000 Belgium (Govt) 1% 22/06/2031 309,784 0.07

102,900 Belgium (Govt) 2.25% 22/06/2023 125,967 0.03

164,000 Belgium (Govt) 3.75% 22/06/2045 252,017 0.06

200,000 Belgium (Govt) 3.75% 28/09/2020 248,642 0.05

100,000 Belgium (Govt) 4% 28/03/2019 118,620 0.03

Canada 2,659,746 0.61

700,000 Canada (Govt) 0.75% 01/09/2021 528,430 0.12

450,000 Canada (Govt) 1.5% 01/06/2026 337,972 0.08

300,000 Canada (Govt) 1.75% 01/03/2019 234,752 0.05

450,000 Canada (Govt) 2.75% 01/06/2022 372,094 0.09

750,000 Canada (Govt) 3.5% 01/12/2045 702,049 0.16

450,000 Canada (Govt) 5.75% 01/06/2029 484,449 0.11

Cayman Islands 264,516 0.06

238,000 Hutchison Whampoa 3.75% VRN PERP 264,516 0.06

Denmark 1,679,543 0.38

223,000 Danske Bank 3.875% VRN 04/10/2023 254,503 0.06

3,800,000 Denmark (Govt) 1.5% 15/11/2023 604,155 0.13

1,300,000 Denmark (Govt) 4% 15/11/2019 212,890 0.05

2,500,000 Denmark (Govt) 4.5% 15/11/2039 607,995 0.14

France 7,661,038 1.75

161,000 AXA 3.941% VRN PERP 180,074 0.04

200,000 Banque Federative Credit Mutuel 2.375% 24/03/2026 215,835 0.05

20,000 BNP Paribas 5.75% 24/01/2022 29,353 0.01

200,000 Bouygues 4% 12/02/2018 224,971 0.05

250,000 BPCE 2.5% 15/07/2019 251,531 0.06

200,000 BPCE 3% 19/07/2024 249,959 0.06

100,000 Casino Guichard Perrachon 3.157% 06/08/2019 119,147 0.03

200,000 Essilor International 1.75% 09/04/2021 229,781 0.05

550,000 France (Govt) 1% 25/05/2019 614,306 0.14

500,000 France (Govt) 2.5% 25/05/2030 615,778 0.14

250,000 France (Govt) 3% 25/04/2022 311,515 0.07

28

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 1

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

France (continued)

660,000 France (Govt) 3.75% 25/04/2021 830,701 0.19

395,000 France (Govt) 4% 25/10/2038 598,554 0.14

200,000 GDF Suez 4.75% VRN PERP 240,713 0.05

200,000 Groupe Auchan 3.625% 19/10/2018 229,734 0.05

100,000 Imerys 1.875% 31/03/2028 108,410 0.03

400,000 OAT France 6% 25/10/2025 624,457 0.14

207,000 Orange 4.25% VRN PERP 237,160 0.05

200,000 Pernod Ricard 2% 22/06/2020 228,875 0.05

231,000 RCI Banque 2.25% 29/03/2021 265,750 0.06

16,000 RCI Banque 3% 09/05/2019 20,918 0.01

100,000 RTE Reseau De Transport 1% 19/10/2026 105,309 0.02

100,000 RTE Reseau De Transport 2% 18/04/2036 106,737 0.02

192,000 Saint Gobain 4.5% 30/09/2019 231,893 0.05

200,000 Sanofi 1.75% 10/09/2026 227,165 0.05

100,000 Scor 3% VRN 08/06/2046 108,214 0.03

100,000 Scor 3.625% VRN 27/05/2048 110,575 0.03

200,000 Societe Des Autoroutes Paris Rhin Rhône 2.25% 16/01/2020 229,602 0.05

100,000 Total 3.875% VRN PERP 114,021 0.03

Germany 4,738,065 1.08

254,000 Bayer 3% VRN 01/07/2075 279,097 0.07

440,000 Bundesrepublik Deutschland 1.75% 04/07/2022 527,968 0.12

660,000 Bundesrepublik Deutschland 1.75% 15/02/2024 803,540 0.18

495,000 Bundesrepublik Deutschland 2.5% 15/08/2046 714,365 0.16

500,000 Bundesrepublik Deutschland 3% 04/07/2020 607,667 0.14

120,000 Bundesrepublik Deutschland 3.75% 04/01/2019 140,957 0.03

420,000 Bundesrepublik Deutschland 4.75% 04/07/2028 667,785 0.15

10,000 Daimler 1.75% 08/11/2017 12,683 -

231,000 Daimler 2% 25/06/2021 267,801 0.06

200,000 Deutsche Bank 1% 18/03/2019 218,024 0.05

200,000 Muench. Rueck. 5.767% VRN PERP 220,203 0.05

223,000 Vier Gas Transport 3.125% 10/07/2023 277,975 0.07

Ireland 537,604 0.12

207,000 Aquarius & Investments Zurich 4.25% VRN 02/10/2043 244,980 0.05

278,000 GE Capital International Funding 4.418% 15/11/2035 292,624 0.07

Israel 235,863 0.05

225,000 Israel Electric 5% 12/11/2024 235,863 0.05

Italy 12,656,387 2.88

1,970,000 Buoni Poliennali Del Tes 0.25% 15/05/2018 2,138,357 0.49

2,350,000 Italy (Govt) 4.25% 01/03/2020 2,839,197 0.65

180,000 Italy (Govt) 4.5% 01/05/2023 229,963 0.05

1,170,000 Italy (Govt) 4.5% 01/03/2024 1,499,152 0.34

2,053,000 Italy (Govt) 4.75% 01/09/2028 2,713,309 0.62

1,290,000 Italy (Govt) 5% 01/03/2022 1,662,810 0.38

960,000 Italy (Govt) 5% 01/08/2039 1,343,252 0.30

207,000 Terna 2.875% 16/02/2018 230,347 0.05

Japan 29,253,442 6.67

350,000,000 Japan (Govt) 0.1% 20/06/2020 3,134,004 0.72

120,000,000 Japan (Govt) 0.1% 20/06/2026 1,068,845 0.24

406,400,000 Japan (Govt) 0.2% 20/03/2019 3,640,127 0.83

50,000,000 Japan (Govt) 0.2% 20/06/2036 409,363 0.09

310,300,000 Japan (Govt) 0.9% 20/03/2022 2,895,114 0.66

171,200,000 Japan (Govt) 1.7% 20/03/2044 1,865,034 0.43

299,700,000 Japan (Govt) 1.8% 20/03/2032 3,219,788 0.73

225,800,000 Japan (Govt) 1.9% 20/03/2024 2,276,834 0.52

951,800,000 Japan (Govt) 2.2% 20/09/2028 10,420,847 2.38

29

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 1

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

Japan (continued)

317,000 Mizuho Bank 3.6% 25/09/2024 323,486 0.07

Luxembourg 997,986 0.23

389,000 Actavis Funding 2.45% 15/06/2019 391,657 0.09

207,000 Glencore Finance Europe 3.375% 30/09/2020 245,437 0.06

200,000 Hannover Finance 5% VRN 30/06/2043 249,302 0.06

100,000 Holcim Finance 2.25% 26/05/2028 111,590 0.02

Mexico 687,422 0.16

200,000 América Móvil 3.125% 16/07/2022 197,542 0.05

169,000 América Móvil 5.125% VRN 06/09/2073 191,431 0.04

300,000 Kimberly-Clark de Mexico 3.8% 08/04/2024 298,449 0.07

Netherlands 3,978,802 0.91

207,000 ABN Amro Bank 7.125% 06/07/2022 283,769 0.06

200,000 Allianz Finance 5.75% 08/07/2041 250,063 0.06

254,000 BMW Finance 1.625% 17/07/2019 285,449 0.07

18,000 BMW Finance 1.75% 20/11/2017 22,846 -

223,000 Deutsche Telekom International Finance 4.25% 16/03/2020 272,109 0.06

124,000 ELM 4.5% VRN PERP 137,116 0.03

140,000 Heineken 1.5% 07/12/2024 156,691 0.04

315,000 ING Bank 2.5% 01/10/2019 317,290 0.07

207,000 KBC Internationale Financieringsmaatschappij 2.125% 10/09/2018 231,656 0.05

271,000 Lyondell Basell Industries 4.625% 26/02/2055 255,888 0.06

116,400 Netherlands (Govt) 1.25% 15/01/2019 130,435 0.03

170,000 Netherlands (Govt) 2% 15/07/2024 207,696 0.05

150,000 Netherlands (Govt) 2.75% 15/01/2047 221,914 0.05

100,000 Relx Finance 1.375% 12/05/2026 108,211 0.02

200,000 Repsol International Finance 3.625% 07/10/2021 246,216 0.06

80,000 Teva Pharmaceuticals 3.15% 01/10/2026 72,394 0.02

269,000 Volkswagen Finance Services 3.875% VRN PERP 299,966 0.07

200,000 Vonovia SE 3.125% 25/07/2019 231,847 0.05

207,000 Wolters Kluwer 2.5% 13/05/2024 247,246 0.06

Spain 14,130,865 3.22

200,000 BBVA Senior Finance 2.375% 22/01/2019 226,132 0.05

238,000 Ferrovial Emisiones 3.375% 07/06/2021 288,033 0.07

200,000 Gas Natural Capital 6% 27/01/2020 253,377 0.06

200,000 Red Électrica Finance 3.875% 25/01/2022 251,812 0.06

200,000 Santander International Debt 4% 27/03/2017 217,470 0.05

100,000 Santander Issuances 3.25% 04/04/2026 109,329 0.02

1,621,000 Spain (Govt) 2.75% 30/04/2019 1,864,877 0.42

3,075,000 Spain (Govt) 2.75% 31/10/2024 3,688,152 0.84

970,000 Spain (Govt) 4.4% 31/10/2023 1,283,833 0.29

1,443,000 Spain (Govt) 5.15% 31/10/2028 2,102,287 0.48

1,095,000 Spain (Govt) 5.15% 31/10/2044 1,708,586 0.39

1,430,000 Spain (Govt) 5.5% 30/04/2021 1,885,753 0.43

200,000 Telefónica Emisiones 3.987% 23/01/2023 251,224 0.06

Sweden 470,527 0.11

207,000 Nordea Bank 4.625% VRN 15/02/2022 224,054 0.05

223,000 Skandinaviska Enskilda 4% 12/09/2022 246,473 0.06

Switzerland 942,098 0.21

500,000 Credit Suisse 3.625% 09/09/2024 503,482 0.11

207,000 UBS 4.75% VRN 12/02/2026 244,202 0.06

200,000 UBS Group Funding 2.65% 01/02/2022 194,414 0.04

United Kingdom 7,650,166 1.76

363,000 Barclays Bank 7.625% 21/11/2022 398,714 0.09

93,000 Barclays Bank 10% 21/05/2021 149,354 0.03

200,000 Barclays PLC 2.75% 08/11/2019 200,702 0.05

11,000 British Telecommunications 8.625% 26/03/2020 17,036 -

223,000 Compass Group 3.125% 13/02/2019 256,349 0.06

30

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 1

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

United Kingdom (continued)

100,000 FCE Bank 1.875% 18/04/2019 112,332 0.03

214,000 HSBC Holdings 0.875% 06/09/2024 224,336 0.05

100,000 HSBC Holdings 1.5% 15/03/2022 111,805 0.03

100,000 HSBC Holdings 2.5% 15/03/2027 116,822 0.03

207,000 HSBC Holdings 3.375% VRN 10/01/2024 234,619 0.05

200,000 HSBC Holdings 6.375% VRN PERP 199,471 0.05

207,000 Mondi Finance 3.375% 28/09/2020 247,448 0.06

288,000 Royal Bank of Scotland 3.875% 12/09/2023 280,440 0.06

300,000 Santander UK Group Holdings 2.35% 10/09/2019 301,127 0.07

200,000 Sky 3.75% 16/09/2024 200,400 0.05

30,000 UK (Govt) 1.25% 22/07/2018 38,368 0.01

370,000 UK (Govt) 3.75% 07/09/2020 520,961 0.12

160,500 UK (Govt) 2.25% 07/09/2023 218,597 0.05

654,200 UK (Govt) 4.25% 07/12/2027 1,047,602 0.24

333,900 UK (Govt) 3.25% 22/01/2044 525,062 0.12

550,000 UK (Govt) 4% 22/01/2060 1,130,942 0.26

350,000 UK Treasury Gilt 2% 07/09/2025 466,557 0.11

184,000 Vodafone Group 4.65% 20/01/2022 238,961 0.05

407,000 WPP Finance 3.75% 19/09/2024 412,161 0.09

United States 66,438,064 15.13

283,000 21st Century Fox America 5.4% 01/10/2043 307,607 0.07

73,000 21st Century Fox America 6.4% 15/12/2035 87,806 0.02

49,000 Abbott Laboratories 3.75% 30/11/2026 48,514 0.01

400,000 Air Products And Chemicals 3.35% 31/07/2024 411,440 0.09

39,000 Altria Group 4.75% 05/05/2021 42,467 0.01

202,000 Altria Group 5.375% 31/01/2044 230,841 0.05

325,000 Amazon.com 4.95% 05/12/2044 371,842 0.08

119,000 American Express 1.55% 22/09/2017 119,082 0.03

415,000 American Express 2.25% 15/08/2019 418,086 0.10

23,000 American Express 7% 19/03/2018 24,345 0.01

223,000 Amgen 3.875% 15/11/2021 234,196 0.05

26,000 AT&T 2.625% 01/12/2022 25,046 0.01

230,000 AT&T 5.35% 01/09/2040 232,297 0.05

160,000 Bank of America 1.7% 25/08/2017 160,262 0.04

29,000 Bank of America 2.65% 01/04/2019 29,342 0.01

283,000 Bank of America 3.3% 11/01/2023 283,778 0.06

33,000 Bank of America 4.2% 26/08/2024 33,542 0.01

54,000 Bank of America 5.7% 24/01/2022 60,585 0.01

348,000 Bank of New York Mellon 2.3% 11/09/2019 351,687 0.08

261,000 Branch Banking & Trust 1.35% 01/10/2017 261,056 0.06

250,000 Branch Banking & Trust 3.8% 30/10/2026 257,566 0.06

104,000 Brandywine Operating Partners 4.1% 01/10/2024 102,607 0.02

150,000 Bristol Myers Squibb 1% 15/05/2025 162,795 0.04

428,000 Burlington Northern Santa 4.55% 01/09/2044 459,937 0.10

250,000 Capital One Bank 3.375% 15/02/2023 250,245 0.06

529,000 Capital One Financial 2.95% 23/07/2021 533,705 0.12

154,000 CF Industries 4.5% 01/12/2026 154,195 0.03

212,000 Citigroup 5.5% 13/09/2025 231,573 0.05

60,000 Citigroup 8.125% 15/07/2039 89,250 0.02

200,000 Coca Cola 1.125% 09/03/2027 214,989 0.05

413,000 Comcast 3.375% 15/02/2025 413,209 0.09

100,000 Comcast Corporation 3.4% 15/07/2046 84,641 0.02

126,000 Conoco Phillips 2.875% 15/11/2021 127,066 0.03

176,000 Continental Resources 4.9% 01/06/2044 156,420 0.04

141,000 CSX 3.4% 01/08/2024 143,070 0.03

283,000 CSX 4.5% 01/08/2054 274,951 0.06

100,000 Devon Energy Corporation 5% 15/06/2045 101,437 0.02

301,000 Directv Holdings 2.4% 15/03/2017 301,340 0.07

23,000 Dominion Resources 4.45% 15/03/2021 24,578 0.01

119,000 Dominion Resources 5.75% VRN 01/10/2054 123,282 0.03

460,000 Dow Chemical 3.5% 01/10/2024 463,491 0.11

83,000 Duke Energy Pogress 4.15% 01/12/2044 84,369 0.02

31

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 1

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

United States (continued)

92,000 Eastman Chemical 3.8% 15/03/2025 93,577 0.02

216,000 EMD Finance 3.25% 19/03/2025 211,960 0.05

424,000 Energy Transfer Partners 5.15% 01/02/2043 406,406 0.09

90,000 Energy Transfer Partners LP 5.3% 15/04/2047 89,515 0.02

100,000 Enlink Midstream Partners 5.05% 01/04/2045 93,250 0.02

142,000 EOG Resources 3.15% 01/04/2025 139,275 0.03

353,000 Fifth Third Bancorp 2.3% 01/03/2019 355,579 0.08

200,000 Fifth Third Bank 2.875% 01/10/2021 202,586 0.05

253,000 Ford Motor 3.664% 08/09/2024 247,830 0.06

240,000 Ford Motor Credit 5.875% 02/08/2021 267,194 0.06

88,000 General Electric 5.875% 14/01/2038 110,910 0.02

215,000 General Motors 6.75% 01/04/2046 255,170 0.06

60,000 General Motors Financial 4.35% 17/01/2027 59,694 0.01

52,000 Goldman Sachs 2.35% 15/11/2021 50,671 0.01

238,000 Goldman Sachs 2.5% 18/10/2021 278,686 0.06

247,000 Goldman Sachs 3.85% 08/07/2024 252,261 0.06

211,000 Goldman Sachs 5.75% 24/01/2022 236,685 0.05

266,000 HCP 3.875% 15/08/2024 266,787 0.06

141,000 Johnson Controls 4.625% 02/07/2044 142,041 0.03

317,000 JP Morgan Chase 3.875% 10/09/2024 319,889 0.07

157,000 JP Morgan Chase 4.25% 15/10/2020 167,063 0.04

527,000 Kilroy Realty 4.25% 15/08/2029 525,459 0.12

82,000 Kinder Morgan 5.55% 01/06/45 87,083 0.02

320,000 Kinder Morgan Energy 3.95% 01/09/2022 330,640 0.08

34,000 Kinder Morgan Energy Partners 5.4% 01/09/2044 35,039 0.01

253,000 Kroger 3.3% 15/01/2021 259,636 0.06

42,000 Kroger 3.875% 15/10/2046 37,909 0.01

73,000 Kroger 6.4% 15/08/2017 74,910 0.02

141,000 Liberty Mutual Group 4.85% 01/08/2044 140,449 0.03

405,000 Lowe's Companies 4.25% 15/09/2044 409,093 0.09

260,000 Marathon Petroleum 3.625% 15/09/2024 255,333 0.06

200,000 Marathon Petroleum 4.75% 15/09/2044 179,799 0.04

205,000 Medtronic 4.625% 15/03/2045 220,611 0.05

83,000 Microsoft 3.45% 08/08/2036 77,570 0.02

458,000 Monsanto 4.4% 15/07/2044 450,596 0.10

400,000 Morgan Stanley 2.375% 23/07/2019 401,962 0.09

83,000 Morgan Stanley 3.125% 27/07/2026 78,909 0.02

155,000 Morgan Stanley 4.35% 08/09/2026 157,670 0.04

126,000 Morgan Stanley 5.625% 23/09/2019 136,634 0.03

229,000 Motorola Solutions 4% 01/09/2024 230,066 0.05

281,000 New York Life Global Funding 2.15% 18/06/2019 282,700 0.06

84,000 Noble Energy 5.05% 15/11/2044 86,489 0.02

71,000 Oracle 2.8% 08/07/2021 72,478 0.02

207,000 Oracle 3.125% 10/07/2025 263,033 0.06

459,000 Oracle 4.3% 08/07/2034 473,727 0.11

315,000 Pepsi 3.6% 01/03/2024 330,005 0.07

125,000 Philip Morris International 4.25% 10/11/2044 122,829 0.03

396,000 PNC Bank 1.5% 18/10/2017 396,578 0.09

207,000 Prologis 3.375% 20/02/2024 255,549 0.06

25,000 Prudential Financial 5.375% 21/06/2020 27,330 0.01

268,000 Realty Income 4.125% 15/10/2026 277,686 0.06

300,000 Simon Property Group 4.25% 01/10/2044 296,798 0.07

40,000 Teachers Insurance & Annuity 4.9% 15/09/2044 43,134 0.01

200,000 Teachers Insurance & Annuity 6.85% 16/12/2039 261,137 0.06

44,000 TIAA Asset Management Finance 2.95% 01/11/2019 44,769 0.01

30,000 Time Warner 3.55% 01/06/2024 29,816 0.01

318,000 Time Warner Cable 4% 01/09/2021 328,733 0.07

427,000 US Bancorp 3.6% 11/09/2024 436,877 0.10

32

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 1

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

United States (continued)

5,990,000 US (Govt) 1% 31/05/2018 5,992,606 1.37

5,750,000 US (Govt) 1.25% 31/10/2018 5,762,488 1.31

390,000 US (Govt) 1.125% 15/01/2019 389,551 0.09

331,000 US (Govt) 1% 15/03/2019 329,323 0.08

265,000 US (Govt) 0.875% 15/06/2019 262,345 0.06

1,720,000 US (Govt) 1.375% 31/05/2020 1,709,607 0.39

5,590,000 US (Govt) 1.875% 31/10/2021 5,617,033 1.28

4,400,000 US (Govt) 2.5% 15/08/2023 4,484,113 1.02

4,035,000 US (Govt) 2.5% 15/05/2024 4,100,866 0.93

9,256,600 US (Govt) 0.375% 15/07/2025 9,475,548 2.16

604,000 US (Govt) 2% 15/08/2025 585,536 0.13

470,000 US (Govt) 6.125% 15/11/2027 630,991 0.14

4,324,000 US (Govt) 3.375% 15/05/2044 4,600,490 1.05

206,000 US (Govt) 3% 15/11/2045 203,852 0.05

74,000 US (Govt) 2.25% 15/08/2046 62,351 0.01

39,000 Verizon Communications 2.625% 21/02/2020 39,643 0.01

272,000 Verizon Communications 4.272% 15/01/2036 255,105 0.06

14,000 Verizon Communications 4.862% 21/08/2046 13,508 -

162,000 Wal-Mart Stores 5.625% 15/04/2041 198,608 0.05

260,000 Wells Fargo 3.3% 09/09/2024 258,301 0.06

283,000 Wells Fargo 4.1% 03/06/2026 286,922 0.07

315,000 Williams Partners 4.3% 04/03/2024 324,675 0.07

Units of eligible UCITS and UCI's within the meaning of article 41 (1) e

of the Luxembourg Law of 17 December 2010 217,106,005 49.47

Collective Investment Schemes 217,106,005 49.47

Ireland 22,210,915 5.06

874,562 HSBC ESI Worldwide Equity ETF 13,105,312 2.99

821,180 Ishares Fallen Angels High Yield Fund ETF 4,270,136 0.97

136,364 SPDR MSCI World Financials UCITS ETF 4,835,467 1.10

Luxembourg 164,472,166 37.48

98,938 HSBC Global Investment Funds - Global Asset Backed Bond "ZC" 13,531,552 3.08

1,680,090 HSBC Global Investment Funds - Global Corporate Bond "ZQ" 17,486,381 3.98

1,536,203 HSBC Global Investment Funds - Global Emerging Markets Bond "ZQ" 15,663,126 3.57

3,017,341 HSBC Global Investment Funds - Global Emerging Markets Local Debt "ZQ" 28,323,782 6.45

3,212,239 HSBC Global Investment Funds - Global Government Bond "ZQ" 32,459,676 7.40

2,803,954 HSBC Global Investment Funds - Global High Yield Bond "ZQ" 28,726,512 6.55

2,152,912 HSBC Global Investment Funds - Global Real Estate Equity "ZQ" 21,884,347 4.99

631,221 HSBC Global Investment Funds - Global Short Duration High Yield Bond "ZQ" 6,396,790 1.46

United Kingdom 30,422,924 6.93

13,750,857 FTSE All World Index "Institutional Acc" 24,860,045 5.66

1,437,000 HSBC Corporate Bond Fund "Institutional Acc" 5,562,879 1.27

Total Investments 389,088,118 88.67

Other Net Assets 49,733,351 11.33

Net Assets 438,821,469 100.00

33

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 2

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

Transferable Securities Admitted to an Official Stock Exchange Listing 175,776,757 34.72

Bonds 175,776,757 34.72

Australia 4,190,157 0.83

1,293,000 Australia & New Zealand 2.25% 13/06/2019 1,298,799 0.26

100,000 BHP Billiton Finance 4.3% 25/09/2042 153,342 0.03

100,000 BHP Billiton Finance 6.5% VRN 22/10/2077 141,078 0.03

423,000 Commonwealth Bank of Australia 5.5% 06/08/2019 518,482 0.10

140,000 Macquarie Bank 3.5% 18/12/2020 190,446 0.04

182,000 Scentre Group Trust 2.375% 05/11/2019 182,498 0.03

178,000 Scentre Management 1.375% 22/03/2023 197,687 0.04

564,000 Scentre Management 1.5% 16/07/2020 632,283 0.12

100,000 Scentre Management 3.875% 16/07/2026 141,150 0.03

502,000 Sydney Airport Finance 2.75% 23/04/2024 593,703 0.12

125,000 Transurban Finance 1.875% 16/09/2024 140,689 0.03

Austria 1,366,507 0.27

423,000 OMV 6.75% VRN PERP 487,993 0.10

423,000 Telekom Finanzmanagement 3.125% 03/12/2021 513,606 0.10

300,000 Vienna Insurance 5.5% VRN 09/10/2043 364,908 0.07

Belgium 1,888,650 0.37

332,000 Anheuser Busch InBev 1.5% 17/03/2025 369,359 0.07

108,000 Anheuser Busch InBev 2% 17/03/2028 121,065 0.02

670,000 Anheuser-Busch InBev 4% 26/04/2018 760,236 0.15

319,000 Anheuser-Busch InBev Worldwide 2.5% 15/07/2022 314,257 0.06

300,000 KBC Groep 1.875% VRN 11/03/2027 323,733 0.07

Canada 4,356,806 0.86

1,081,000 Bank of Montreal 1.3% 14/07/2017 1,081,627 0.21

1,436,000 Bank of Nova Scotia 1.3% 21/07/2017 1,437,451 0.29

811,000 Royal Bank of Canada 2.2% 23/09/2019 816,543 0.16

1,013,000 Toronto-Dominion Bank 2.25% 25/09/2019 1,021,185 0.20

Cayman Islands 786,099 0.16

244,000 Alibaba Group Holding 3.125% 28/11/2021 245,952 0.05

486,000 Hutchison Whampoa 3.75% VRN PERP 540,147 0.11

Channel Islands 830,084 0.16

300,000 Credit Suisse 1.25% 14/04/2022 325,523 0.06

350,000 Delphi Automotive 1.5% 10/03/2025 370,951 0.07

132,000 Delphi Automotive 1.6% 15/09/2028 133,610 0.03

China 256,161 0.05

250,000 Industrial and Commercial Bank of China 3.231% 13/11/2019 256,161 0.05

Denmark 1,524,740 0.30

392,000 Carlsberg Breweries 3.375% 13/10/2017 433,785 0.08

655,000 Danske Bank 3.875% VRN 04/10/2023 747,531 0.15

300,000 ISS Global 2.125% 02/12/2024 343,424 0.07

Finland 131,148 0.03

100,000 Pohjola Bank 2.5% 20/05/2022 131,148 0.03

France 13,538,265 2.67

200,000 Air Liquide Finance 0.375% 18/04/2022 216,126 0.04

329,000 AXA 3.941% VRN PERP 367,977 0.07

153,000 AXA VRN PERP 201,740 0.04

400,000 Banque Federative Credit Mutuel 2.375% 24/03/2026 431,670 0.09

300,000 Banque Federative Credit Mutuel 3% 21/05/2024 347,461 0.07

34

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 2

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

France (continued)

22,000 BNP Paribas 5.75% 24/01/2022 32,289 0.01

450,000 Bouygues 4% 12/02/2018 506,186 0.10

431,000 BPCE 2.5% 15/07/2019 433,640 0.09

600,000 BPCE 3% 19/07/2024 749,878 0.15

464,000 BPCE 4.875% 01/04/2026 466,151 0.09

100,000 Cap Gemini 1.75% 01/07/2020 112,791 0.02

300,000 Casino Guichard Perrachon 3.157% 06/08/2019 357,442 0.07

400,000 Credit Agricole London 1.25% 14/04/2026 429,857 0.08

100,000 Électricité de France 6% VRN PERP 121,800 0.02

400,000 Essilor International 1.75% 09/04/2021 459,561 0.09

100,000 GDF Suez 4.625% VRN PERP 131,519 0.03

600,000 GDF Suez 4.75% VRN PERP 722,139 0.14

100,000 Gecina 1.5% 20/01/2025 110,489 0.02

300,000 Groupe Auchan 3.625% 19/10/2018 344,601 0.07

400,000 Imerys 1.875% 31/03/2028 433,642 0.09

423,000 Orange 4.25% VRN PERP 484,631 0.10

114,000 Orange 5.75% VRN PERP 151,411 0.03

154,000 Orange 8.125% 20/11/2028 295,866 0.06

700,000 Pernod Ricard 2% 22/06/2020 801,062 0.16

470,000 RCI Banque 2.25% 29/03/2021 540,703 0.11

17,000 RCI Banque 3% 09/05/2019 22,225 -

360,000 RCI Banque 3.25% 25/04/2018 464,798 0.09

200,000 RTE Reseau De Transport 1% 19/10/2026 210,618 0.04

100,000 RTE Reseau de Transport 1.625% 27/11/2025 112,434 0.02

300,000 RTE Reseau De Transport 2% 18/04/2036 320,212 0.06

392,000 Saint Gobain 4.5% 30/09/2019 473,448 0.09

300,000 Sanofi 1.75% 10/09/2026 340,748 0.07

300,000 Scor 3% VRN 08/06/2046 324,641 0.06

200,000 Scor 3.625% VRN 27/05/2048 221,149 0.04

400,000 Societe Des Autoroutes Paris Rhin Rhône 2.25% 16/01/2020 459,205 0.09

600,000 Total 2.25% VRN PERP 642,523 0.13

100,000 Total 3.875% VRN PERP 114,021 0.02

110,000 Total Capital International 2.25% 09/06/2022 144,681 0.03

375,000 WPP Finance 2.25% 22/09/2026 436,930 0.09

Germany 5,412,370 1.07

517,000 Bayer 3% VRN 01/07/2075 568,083 0.11

100,000 Bayerische Landesbank 1.25% 20/12/2021 125,429 0.03

229,000 BMW Finance 0.875% 16/08/2022 277,723 0.06

200,000 Daimler 1% 20/12/2019 251,443 0.05

11,000 Daimler 1.75% 08/11/2017 13,951 -

470,000 Daimler 2% 25/06/2021 544,876 0.11

100,000 Daimler 2.375% 16/12/2021 131,694 0.03

120,000 Daimler 2.75% 04/12/2020 159,971 0.03

300,000 Deutsche Bank 1% 18/03/2019 327,035 0.06

300,000 Deutsche Bank 1.125% 17/03/2025 303,200 0.06

100,000 Deutsche Boerse 2.7482% VRN 05/02/2041 113,603 0.02

195,000 Deutsche Wohnen 1.375% 24/07/2020 217,945 0.04

800,000 Eurogrid 1.5% 18/04/2028 859,455 0.17

48,000 Henkel Ag 0.875% 13/09/2022 59,005 0.01

450,000 Muench. Rueck. 5.767% VRN PERP 495,458 0.10

100,000 Munich Ruckvers 6.625% VRN 26/05/2042 147,027 0.03

655,000 Vier Gas Transport 3.125% 10/07/2023 816,472 0.16

Ireland 1,867,509 0.37

423,000 Aquarius & Investments Zurich 4.25% VRN 02/10/2043 500,612 0.10

300,000 CRH Finance 3.125% 03/04/2023 367,516 0.07

566,000 GE Capital International Funding 4.418% 15/11/2035 595,775 0.12

120,000 GE Capital UK Funding 5.875% 18/01/2033 217,298 0.04

200,000 Perrigo Finance 4.9% 15/12/2044 186,308 0.04

35

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 2

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

Israel 461,243 0.09

440,000 Israel Electric 5% 12/11/2024 461,243 0.09

Italy 2,387,351 0.47

500,000 Assicurazioni Generali 7.75% VRN 12/12/2042 637,054 0.13

455,000 ENI 3.5% 13/07/2018 509,005 0.10

200,000 Exor 2.5% 08/10/2024 225,040 0.04

486,000 Intesa Sanpaolo 2% 18/06/2021 545,544 0.11

423,000 Terna 2.875% 16/02/2018 470,708 0.09

Japan 1,951,308 0.39

646,000 Mizuho Bank 3.6% 25/09/2024 659,217 0.13

1,292,000 Sumitomo Mitsui Banking 2.25% 11/07/2019 1,292,091 0.26

Jersey 1,364,865 0.27

100,000 CPUK Finance 7.239% 28/02/2024 162,114 0.03

130,000 Gatwick Airport 6.125% 02/03/2026 210,206 0.04

100,000 Heathrow Funding 4.625% 31/10/2046 159,350 0.03

830,000 HSBC Bank Middle East 2.75% 01/10/2019 833,195 0.17

Luxembourg 2,110,229 0.42

790,000 Actavis Funding 2.45% 15/06/2019 795,396 0.16

423,000 Glencore Finance Europe 3.375% 30/09/2020 501,545 0.10

400,000 Hannover Finance 5% VRN 30/06/2043 498,605 0.10

282,000 Holcim Finance 2.25% 26/05/2028 314,683 0.06

Mexico 1,631,355 0.32

287,000 América Móvil 3.125% 16/07/2022 283,473 0.05

100,000 América Móvil 4.375% 07/08/2041 138,575 0.03

345,000 América Móvil 5.125% VRN 06/09/2073 390,792 0.08

600,000 Kimberly-Clark de Mexico 3.8% 08/04/2024 596,898 0.12

150,000 Petróleos Mexicanos 8.25% 02/06/2022 221,617 0.04

Netherlands 13,621,159 2.69

623,000 ABN Amro Bank 7.125% 06/07/2022 854,048 0.17

200,000 Akzo Nobel 1.125% 08/04/2026 215,098 0.04

300,000 Allianz Finance 5.75% 08/07/2041 375,095 0.07

517,000 BMW Finance 1.625% 17/07/2019 581,012 0.11

20,000 BMW Finance 1.75% 20/11/2017 25,384 -

938,000 Cooperatieve Rabobank UA 1.25% 23/03/2026 1,021,867 0.20

250,000 Cooperatieve Rabobank UA 3.75% 21/07/2026 243,970 0.05

200,000 Cooperatieve Rabobank UA 6.625% VRN PERP 232,076 0.05

455,000 Deutsche Telekom International Finance 4.25% 16/03/2020 555,200 0.11

120,000 Deutsche Telekom International Finance 6.5% 08/04/2022 187,837 0.04

250,000 E.ON International Finance 5.875% 30/10/2037 432,835 0.09

372,000 ELM 4.5% VRN PERP 411,349 0.08

172,000 Enel Finance International 1.375% 01/06/2026 181,413 0.04

152,000 Enexis Holding 1.5% 20/10/2023 172,785 0.03

440,000 Heineken 1.5% 07/12/2024 492,458 0.10

646,000 ING Bank 2.5% 01/10/2019 650,696 0.13

100,000 ING Bank 5.375% 15/04/2021 147,098 0.03

423,000 KBC Internationale Financieringsmaatschappij 2.125% 10/09/2018 473,385 0.09

70,000 Koninklijke KPN 5.75% 17/09/2029 110,670 0.02

547,000 Lyondell Basell Industries 4.625% 26/02/2055 516,497 0.10

226,000 Nederlandse Waterschapsbank 1.625% 23/08/2019 256,417 0.05

100,000 Petrobras International Finance 6.25% 14/12/2026 121,250 0.02

533,000 Rabobank 2.5% VRN 26/05/2026 593,893 0.12

230,000 Rabobank Nederland 2.25% 23/03/2022 299,967 0.06

100,000 Rabobank Nederland 6.875% 19/03/2020 128,075 0.03

480,000 Relx Finance 1.375% 12/05/2026 519,413 0.10

36

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 2

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

Netherlands (continued)

400,000 Repsol International Finance 3.625% 07/10/2021 492,432 0.10

78,000 Innogy Finance 6.25% 03/06/2030 130,238 0.03

200,000 Swiss Reinsurance Company 2.6% VRN PERP 208,256 0.04

270,000 Teva Pharmaceuticals 3.15% 01/10/2026 244,328 0.05

800,000 Unilever 1% 03/06/2023 891,720 0.18

120,000 Volkswagen Finance Services 2.75% 02/10/2020 157,339 0.03

549,000 Volkswagen Finance Services 3.875% VRN PERP 612,198 0.12

500,000 Vonovia SE 3.125% 25/07/2019 579,617 0.11

423,000 Wolters Kluwer 2.5% 13/05/2024 505,243 0.10

Portugal 221,154 0.04

200,000 Brisa Concessao Rodoviaria 2% 22/03/2023 221,154 0.04

Spain 4,685,483 0.93

700,000 BBVA Senior Finance 2.375% 22/01/2019 791,463 0.16

686,000 Ferrovial Emisiones 3.375% 07/06/2021 830,212 0.16

400,000 Gas Natural Capital 6% 27/01/2020 506,753 0.10

400,000 Red Électrica Finance 3.875% 25/01/2022 503,624 0.10

400,000 Santander International Debt 4% 27/03/2017 434,941 0.09

600,000 Santander Issuances 3.25% 04/04/2026 655,974 0.13

300,000 Telefónica Emisiones 1.46% 13/04/2026 314,083 0.06

400,000 Telefónica Emisiones 3.987% 23/01/2023 502,448 0.10

100,000 Telefónica Emisiones 5.289% 09/12/2022 145,985 0.03

Sweden 2,796,343 0.55

423,000 Nordea Bank 4.625% VRN 15/02/2022 457,849 0.09

455,000 Skandinaviska Enskilda 4% 12/09/2022 502,893 0.10

1,542,000 Svenska Handelsbanken 2.25% 17/06/2019 1,549,401 0.30

300,000 Teliasonera 1.625% 23/02/2035 286,200 0.06

Switzerland 3,553,994 0.70

717,000 Credit Suisse 1.375% 29/11/2019 802,137 0.16

181,000 Credit Suisse 3% 27/05/2022 234,125 0.04

1,218,000 Credit Suisse 3.625% 09/09/2024 1,226,484 0.24

423,000 UBS 4.75% VRN 12/02/2026 499,021 0.10

230,000 UBS Group Funding 1.25% 01/09/2026 235,633 0.05

367,000 UBS Group Funding 2.65% 01/02/2022 356,750 0.07

200,000 UBS Group Funding 3% 15/04/2021 199,844 0.04

United Kingdom 20,489,887 4.05

150,000 Affinity Water Finance 5.875% 13/07/2026 246,233 0.05

250,000 Astrazeneca 3.375% 16/11/2025 248,739 0.05

100,000 Aviva 6.625% VRN 03/06/2041 140,393 0.03

130,000 B.A.T. International Finance 7.25% 12/03/2024 215,814 0.04

243,000 Barclays Bank 10% 21/05/2021 390,248 0.08

398,000 Barclays Bank 7.625% 21/11/2022 437,157 0.09

246,000 Barclays PLC 1.5% 01/04/2022 268,529 0.05

254,000 Barclays PLC 2.75% 08/11/2019 254,892 0.05

250,000 Barclays PLC 5.25% 17/08/2045 265,339 0.05

130,000 BG Energy Capital 6.5% VRN 30/11/2072 170,708 0.03

243,000 BP Capital Markets 1.177% 12/08/2023 294,479 0.06

486,000 BP Capital Markets 3.83% 06/10/2017 539,189 0.11

455,000 British Telecommunications 1.125% 10/06/2019 503,776 0.10

12,000 British Telecommunications 8.625% 26/03/2020 18,585 -

100,000 BUPA Finance 5% 08/12/2026 131,990 0.03

170,000 Circle Anglia Social Hsg 7.25% 12/11/2038 355,471 0.07

455,000 Compass Group 3.125% 13/02/2019 523,043 0.10

100,000 Everything Everywhere Finance 4.375% 28/03/2019 134,759 0.03

300,000 FCE Bank 1.528% 09/11/2020 334,734 0.07

204,000 FCE Bank 1.875% 18/04/2019 229,157 0.04

125,000 Glaxo Smith Kline Capital 6.375% 09/03/2039 247,008 0.05

100,000 Hammerson 7.25% 21/04/2028 175,955 0.03

429,000 HSBC Holdings 0.875% 06/09/2024 449,721 0.09

37

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 2

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

United Kingdom (continued)

317,000 HSBC Holdings 1.5% 15/03/2022 354,423 0.07

365,000 HSBC Holdings 2.5% 15/03/2027 426,401 0.08

378,000 HSBC Holdings 2.625% 16/08/2028 448,869 0.09

423,000 HSBC Holdings 3.375% VRN 10/01/2024 479,440 0.09

200,000 HSBC Holdings 3.4% 08/03/2021 203,820 0.04

200,000 HSBC Holdings 4.3% 08/03/2026 206,662 0.04

212,000 HSBC Holdings 6.375% VRN PERP 211,439 0.04

250,000 HSBC Holdings 6.75% 11/09/2028 384,169 0.08

150,000 Imperial Tobacco Finance 8.125% 15/03/2024 258,815 0.05

133,000 Legal & General Group 5.375% VRN 27/10/2045 173,698 0.03

150,000 Legal & General Group 6.385% VRN PERP 189,454 0.04

100,000 Manc Airport Group Funding 4.75% 31/03/2034 157,558 0.03

100,000 Marks And Spencer 3% 08/12/2023 126,308 0.02

423,000 Mondi Finance 3.375% 28/09/2020 505,654 0.10

1,100,000 National Grid Gas Finance 2.75% 22/09/2046 1,306,681 0.26

198,000 Nationwide Building Society 2.25% 29/04/2022 257,268 0.05

100,000 NGG Finance 5.625% VRN 18/06/2073 137,753 0.03

100,000 Peabody Capital 5.25% 17/03/2043 173,542 0.03

100,000 Places for People Homes 5.875% 23/05/2031 155,177 0.03

174,000 Places For People Treasury 2.875% 17/08/2026 209,616 0.04

150,000 Prudential Financial 5% VRN 20/07/2055 184,148 0.04

100,000 Prudential Financial 5.7% VRN 19/12/2063 127,030 0.02

100,000 Reed Elsevier Investments 2.75% 01/08/2019 130,562 0.03

870,000 Royal Bank of Scotland 3.875% 12/09/2023 847,162 0.17

507,000 Santander UK Group Holdings 1.65% 29/09/2017 507,304 0.10

600,000 Santander UK Group Holdings 2.35% 10/09/2019 602,253 0.12

108,000 Santander UK Group Holdings 3.625% 14/01/2026 138,428 0.03

200,000 Severn Trent Utilities Finance 6.25% 07/06/2029 351,996 0.07

100,000 Severn Trent Water Utillities 2.75% 05/12/2031 128,504 0.03

246,000 Sky 1.5% 15/09/2021 274,717 0.05

566,000 Sky 3.75% 16/09/2024 567,132 0.11

100,000 South Eastern Power Networks 6.375% 12/11/2031 181,809 0.04

100,000 SSE 3.875% VRN PERP 126,447 0.02

100,000 Standard Chartered 4.375% 18/01/2038 136,477 0.03

75,000 Tesco 6% 14/12/2029 103,970 0.02

109,000 Thames Water Utilities Finance 1.875% 24/01/2024 135,821 0.03

140,000 Thames Water Utilities Finance 2.625% 24/01/2032 174,105 0.03

140,000 Thames Water Utilities Finance 5.125% 28/09/2037 238,146 0.05

320,000 UK (Govt) 3.25% 22/01/2044 503,204 0.10

100,000 United Utilities Water 5.625% 20/12/2027 164,660 0.03

376,000 Vodafone Group 4.65% 20/01/2022 488,311 0.10

350,000 Western Power Distribution 3.875% 17/10/2024 493,596 0.10

831,000 WPP Finance 3.75% 19/09/2024 841,537 0.17

70,000 Zurich Finance 6.625% VRN PERP 99,902 0.02

United States 84,353,890 16.66

574,000 21st Century Fox America 5.4% 01/10/2043 623,909 0.12

81,000 21st Century Fox America 6.4% 15/12/2035 97,429 0.02

162,000 Abbott Laboratories 3.75% 30/11/2026 160,394 0.03

1,015,000 Air Products And Chemicals 3.35% 31/07/2024 1,044,029 0.21

42,000 Altria Group 4.75% 05/05/2021 45,733 0.01

410,000 Altria Group 5.375% 31/01/2044 468,538 0.09

672,000 Amazon.com 4.95% 05/12/2044 768,855 0.15

243,000 American Express 1.55% 22/09/2017 243,166 0.05

1,046,000 American Express 2.25% 15/08/2019 1,053,777 0.21

26,000 American Express 7% 19/03/2018 27,520 0.01

100,000 American International Group 5% 26/04/2023 144,024 0.03

452,000 Amgen 3.875% 15/11/2021 474,693 0.09

100,000 Amgen 4% 13/09/2029 139,386 0.03

200,000 Apple 3.05% 31/07/2029 266,985 0.05

38

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 2

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

United States (continued)

150,000 Apple 3.6% 31/07/2042 210,561 0.04

431,000 Apple 4.45% 06/05/2044 443,264 0.09

350,000 AT&T 2.6% 17/12/2029 389,299 0.08

29,000 AT&T 2.625% 01/12/2022 27,936 0.01

100,000 AT&T 5.2% 18/11/2033 149,176 0.03

470,000 AT&T 5.35% 01/09/2040 474,693 0.09

150,000 AT&T 7% 30/04/2040 273,084 0.05

327,000 Bank of America 1.7% 25/08/2017 327,535 0.07

345,000 Bank of America 1.875% 10/01/2019 386,432 0.08

32,000 Bank of America 2.65% 01/04/2019 32,378 0.01

575,000 Bank of America 3.3% 11/01/2023 576,581 0.11

67,000 Bank of America 4.2% 26/08/2024 68,101 0.01

59,000 Bank of America 5.7% 24/01/2022 66,195 0.01

150,000 Bank of America 7% 31/07/2028 259,653 0.05

709,000 Bank of New York Mellon 2.3% 11/09/2019 716,512 0.14

529,000 Branch Banking & Trust 1.35% 01/10/2017 529,114 0.10

700,000 Branch Banking & Trust 3.8% 30/10/2026 721,185 0.14

210,000 Brandywine Operating Partners 4.1% 01/10/2024 207,187 0.04

300,000 Bristol Myers Squibb 1% 15/05/2025 325,590 0.06

872,000 Burlington Northern Santa 4.55% 01/09/2044 937,069 0.19

325,000 Capital One Bank 3.375% 15/02/2023 325,318 0.06

1,077,000 Capital One Financial 2.95% 23/07/2021 1,086,580 0.22

400,000 Cargill 4.875% 29/05/2017 439,197 0.09

461,000 CF Industries 4.5% 01/12/2026 461,583 0.09

235,000 Citigroup 4.375% 02/11/2018 273,789 0.05

430,000 Citigroup 5.5% 13/09/2025 469,700 0.09

66,000 Citigroup 8.125% 15/07/2039 98,175 0.02

1,065,000 Coca Cola 1.125% 09/03/2027 1,144,817 0.23

837,000 Comcast 3.375% 15/02/2025 837,423 0.17

267,000 Comcast Corporation 3.4% 15/07/2046 225,991 0.04

501,000 Comerica 3.8% 22/07/2026 494,389 0.10

261,000 Conoco Phillips 2.875% 15/11/2021 263,208 0.05

359,000 Continental Resources 4.9% 01/06/2044 319,061 0.06

287,000 CSX 3.4% 01/08/2024 291,213 0.06

574,000 CSX 4.5% 01/08/2054 557,675 0.11

285,000 Devon Energy Corporation 5% 15/06/2045 289,097 0.06

1,120,000 Directv Holdings 2.4% 15/03/2017 1,121,266 0.22

350,000 Discovery Communications 1.9% 19/03/2027 362,183 0.07

25,000 Dominion Resources 4.45% 15/03/2021 26,716 0.01

243,000 Dominion Resources 5.75% VRN 01/10/2054 251,743 0.05

1,140,000 Dow Chemical 3.5% 01/10/2024 1,148,653 0.23

171,000 Duke Energy Pogress 4.15% 01/12/2044 173,821 0.03

190,000 Eastman Chemical 3.8% 15/03/2025 193,258 0.04

1,293,000 Ebay 2.875% 01/08/2021 1,294,603 0.26

438,000 EMD Finance 3.25% 19/03/2025 429,807 0.09

1,050,000 Energy Transfer Partners 5.15% 01/02/2043 1,006,430 0.20

269,000 Energy Transfer Partners LP 5.3% 15/04/2047 267,551 0.05

226,000 Enlink Midstream Partners 5.05% 01/04/2045 210,745 0.04

288,000 EOG Resources 3.15% 01/04/2025 282,473 0.06

273,000 FedEx 4.55% 01/04/2046 275,745 0.05

718,000 Fifth Third Bancorp 2.3% 01/03/2019 723,245 0.14

304,000 Fifth Third Bank 2.875% 01/10/2021 307,931 0.06

529,000 Ford Motor 3.664% 08/09/2024 518,190 0.10

488,000 Ford Motor Credit 5.875% 02/08/2021 543,295 0.11

177,000 General Electric 5.875% 14/01/2038 223,080 0.04

432,000 General Motors 6.75% 01/04/2046 512,713 0.10

179,000 General Motors Financial 4.35% 17/01/2027 178,086 0.04

39

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 2

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

United States (continued)

300,000 Goldman Sachs 2% 27/07/2023 339,816 0.07

155,000 Goldman Sachs 2.35% 15/11/2021 151,038 0.03

486,000 Goldman Sachs 2.5% 18/10/2021 569,081 0.11

502,000 Goldman Sachs 3.85% 08/07/2024 512,693 0.10

100,000 Goldman Sachs 4.25% 29/01/2026 138,516 0.03

232,000 Goldman Sachs 5.75% 24/01/2022 260,241 0.05

1,154,000 HCP 3.875% 15/08/2024 1,157,416 0.23

287,000 Johnson Controls 4.625% 02/07/2044 289,118 0.06

1,306,000 JP Morgan Chase 3.875% 10/09/2024 1,317,904 0.26

172,000 JP Morgan Chase 4.25% 15/10/2020 183,024 0.04

250,000 Key Bank 2.5% 15/12/2019 252,272 0.05

1,078,000 Kilroy Realty 4.25% 15/08/2029 1,074,847 0.21

169,000 Kinder Morgan 5.55% 01/06/45 179,476 0.04

650,000 Kinder Morgan Energy 3.95% 01/09/2022 671,612 0.13

70,000 Kinder Morgan Energy Partners 5.4% 01/09/2044 72,138 0.01

513,000 Kroger 3.3% 15/01/2021 526,456 0.10

125,000 Kroger 3.875% 15/10/2046 112,826 0.02

80,000 Kroger 6.4% 15/08/2017 82,093 0.02

287,000 Liberty Mutual Group 4.85% 01/08/2044 285,879 0.06

820,000 Lowe's Companies 4.25% 15/09/2044 828,286 0.16

528,000 Marathon Petroleum 3.625% 15/09/2024 518,522 0.10

410,000 Marathon Petroleum 4.75% 15/09/2044 368,588 0.07

422,000 Medtronic 4.625% 15/03/2045 454,135 0.09

322,000 Metropolitan Life Global Funding I 3% 10/01/2023 323,236 0.06

130,000 Metropolitan Life Global Funding I 3.5% 30/09/2026 182,957 0.04

376,000 Microsoft 3.125% 06/12/2028 490,954 0.10

259,000 Microsoft 3.45% 08/08/2036 242,056 0.05

167,000 Microsoft 4.2% 03/11/2035 172,631 0.03

1,133,000 Monsanto 4.4% 15/07/2044 1,114,685 0.22

800,000 Morgan Stanley 2.375% 23/07/2019 803,924 0.16

250,000 Morgan Stanley 3.125% 27/07/2026 237,679 0.05

317,000 Morgan Stanley 4.35% 08/09/2026 322,460 0.06

400,000 Morgan Stanley 5.375% 10/08/2020 508,182 0.10

256,000 Morgan Stanley 5.625% 23/09/2019 277,605 0.06

467,000 Motorola Solutions 4% 01/09/2024 469,174 0.09

309,000 New York Life Global Funding 2.15% 18/06/2019 310,869 0.06

174,000 Noble Energy 5.05% 15/11/2044 179,155 0.04

143,000 Oracle 2.8% 08/07/2021 145,977 0.03

423,000 Oracle 3.125% 10/07/2025 537,503 0.11

1,183,000 Oracle 4.3% 08/07/2034 1,220,957 0.24

1,399,000 Pepsi 3.6% 01/03/2024 1,465,641 0.29

1,025,000 Philip Morris International 1.875% 15/01/2019 1,027,450 0.20

261,000 Philip Morris International 4.25% 10/11/2044 256,466 0.05

1,317,000 PNC Bank 1.5% 18/10/2017 1,318,923 0.26

423,000 Prologis 3.375% 20/02/2024 522,210 0.10

27,000 Prudential Financial 5.375% 21/06/2020 29,516 0.01

547,000 Realty Income 4.125% 15/10/2026 566,769 0.11

1,309,000 Roche Holding 2.875% 29/09/2021 1,333,537 0.26

309,000 S&P Global 4.4% 15/02/2026 325,638 0.06

700,000 Simon Property Group 3.5% 01/09/2025 709,656 0.14

612,000 Simon Property Group 4.25% 01/10/2044 605,467 0.12

2,110,000 Target 2.3% 26/06/2019 2,142,547 0.42

81,000 Teachers Insurance & Annuity 4.9% 15/09/2044 87,347 0.02

400,000 Teachers Insurance & Annuity 6.85% 16/12/2039 522,274 0.10

88,000 TIAA Asset Management Finance 2.95% 01/11/2019 89,539 0.02

33,000 Time Warner 3.55% 01/06/2024 32,798 0.01

646,000 Time Warner Cable 4% 01/09/2021 667,803 0.13

100,000 Time Warner Cable 5.25% 15/07/2042 143,895 0.03

40

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 2

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

United States (continued)

1,025,000 Toyota Motor Credit 2.1% 17/01/2019 1,033,426 0.20

218,000 United Health 3.35% 15/07/2022 225,073 0.04

870,000 US Bancorp 3.6% 11/09/2024 890,123 0.18

775,000 US (Govt) 1.125% 15/01/2019 774,108 0.15

671,000 US (Govt) 1% 15/03/2019 667,601 0.13

531,000 US (Govt) 0.875% 15/06/2019 525,679 0.10

955,000 US (Govt) 1.375% 31/03/2020 950,929 0.19

1,030,000 US (Govt) 2.125% 15/05/2025 1,010,683 0.20

9,928,200 US (Govt) 0.375% 15/07/2025 10,163,034 2.01

1,384,000 US (Govt) 2% 15/08/2025 1,341,693 0.26

445,000 US (Govt) 3% 15/11/2044 441,068 0.09

170,000 US (Govt) 3% 15/05/2045 168,338 0.03

416,000 US (Govt) 3% 15/11/2045 411,662 0.08

153,000 US (Govt) 2.25% 15/08/2046 128,915 0.03

400,000 Verizon Communications 1.625% 01/03/2024 442,326 0.09

42,000 Verizon Communications 2.625% 21/02/2020 42,693 0.01

1,062,000 Verizon Communications 4.272% 15/01/2036 996,034 0.20

100,000 Verizon Communications 4.75% 17/02/2034 146,315 0.03

16,000 Verizon Communications 4.862% 21/08/2046 15,437 -

103,000 Wal-Mart Stores 1.95% 15/12/2018 103,962 0.02

330,000 Wal-Mart Stores 5.625% 15/04/2041 404,572 0.08

100,000 Wal-Mart Stores 5.625% 27/03/2034 177,455 0.04

442,000 Wells Fargo 1.4% 08/09/2017 441,912 0.09

528,000 Wells Fargo 3.3% 09/09/2024 524,550 0.10

574,000 Wells Fargo 4.1% 03/06/2026 581,956 0.11

100,000 Wells Fargo 4.875% 29/11/2035 149,243 0.03

130,000 Wells Fargo 2.125% 20/12/2023 162,478 0.03

1,349,000 Williams Partners 4.3% 04/03/2024 1,390,435 0.28

Units of eligible UCITS and UCI's within the meaning of article 41 (1) e

of the Luxembourg Law of 17 December 2010

283,068,889 55.92

Collective Investment Schemes 283,068,889 55.92

Ireland 32,993,359 6.52

1,548,398 HSBC ESI Worldwide Equity ETF 23,202,744 4.58

137 HSBC US Dollar Liquidity Fund "Z" 136 -

881,960 Ishares Fallen Angels High Yield Fund ETF 4,586,192 0.91

146,765 SPDR MSCI World Financials UCITS ETF 5,204,287 1.03

Luxembourg 188,232,351 37.18

108,525 HSBC Global Investment Funds - Global Asset Backed Bond "ZC" 14,842,747 2.93

1,980,938 HSBC Global Investment Funds - Global Corporate Bond "ZQ" 22,134,989 4.37

1,995,604 HSBC Global Investment Funds - Global Emerging Markets Bond "ZQ" 20,347,180 4.02

3,447,126 HSBC Global Investment Funds - Global Emerging Markets Local Debt "ZQ" 32,358,175 6.39

2,032,663 HSBC Global Investment Funds - Global Government Bond "ZQ" 20,540,063 4.06

4,238,802 HSBC Global Investment Funds - Global High Yield Bond "ZQ" 43,426,528 8.58

2,475,553 HSBC Global Investment Funds - Global Real Estate Equity "ZQ" 25,163,997 4.97

929,413 HSBC Global Investment Funds - Global Short Duration High Yield Bond "ZQ" 9,418,672 1.86

United Kingdom 61,843,179 12.22

34,207,369 FTSE All World Index "Institutional Acc" 61,843,179 12.22

Total Investments 458,845,646 90.64

Other Net Assets 47,365,659 9.36

Net Assets 506,211,305 100.00

41

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 3

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

Transferable Securities Admitted to an Official Stock Exchange Listing 117,766,386 17.44

Bonds 117,766,386 17.44

Australia 2,804,731 0.42

100,000 BHP Billiton Finance 4.3% 25/09/2042 153,342 0.02

100,000 BHP Billiton Finance 6.5% VRN 22/10/2077 141,078 0.02

423,000 Commonwealth Bank of Australia 5.5% 06/08/2019 518,482 0.08

140,000 Macquarie Bank 3.5% 18/12/2020 190,446 0.03

182,000 Scentre Group Trust 2.375% 05/11/2019 182,498 0.03

100,000 Scentre Management 1.375% 22/03/2023 111,060 0.02

564,000 Scentre Management 1.5% 16/07/2020 632,283 0.09

100,000 Scentre Management 3.875% 16/07/2026 141,150 0.02

502,000 Sydney Airport Finance 2.75% 23/04/2024 593,703 0.09

125,000 Transurban Finance 1.875% 16/09/2024 140,689 0.02

Austria 1,366,507 0.20

423,000 OMV 6.75% VRN PERP 487,993 0.07

423,000 Telekom Finanzmanagement 3.125% 03/12/2021 513,606 0.08

300,000 Vienna Insurance 5.5% VRN 09/10/2043 364,908 0.05

Belgium 944,354 0.14

270,000 Anheuser-Busch InBev 4% 26/04/2018 306,364 0.04

319,000 Anheuser-Busch InBev Worldwide 2.5% 15/07/2022 314,257 0.05

300,000 KBC Groep 1.875% VRN 11/03/2027 323,733 0.05

Canada 1,021,185 0.15

1,013,000 Toronto-Dominion Bank 2.25% 25/09/2019 1,021,185 0.15

Cayman Islands 786,099 0.12

244,000 Alibaba Group Holding 3.125% 28/11/2021 245,952 0.04

486,000 Hutchison Whampoa 3.75% VRN PERP 540,147 0.08

Channel Islands 797,694 0.12

300,000 Credit Suisse 1.25% 14/04/2022 325,523 0.05

350,000 Delphi Automotive 1.5% 10/03/2025 370,951 0.06

100,000 Delphi Automotive 1.6% 15/09/2028 101,220 0.01

China 256,161 0.04

250,000 Industrial and Commercial Bank of China 3.231% 13/11/2019 256,161 0.04

Denmark 634,448 0.09

255,000 Danske Bank 3.875% VRN 04/10/2023 291,023 0.04

300,000 ISS Global 2.125% 02/12/2024 343,425 0.05

Finland 131,148 0.02

100,000 Pohjola Bank 2.5% 20/05/2022 131,148 0.02

France 7,755,799 1.15

329,000 AXA 3.941% VRN PERP 367,977 0.05

153,000 AXA VRN PERP 201,740 0.03

300,000 Banque Federative Credit Mutuel 3% 21/05/2024 347,461 0.05

28,000 BNP Paribas 5.75% 24/01/2022 41,095 0.01

200,000 Bouygues 4% 12/02/2018 224,971 0.03

430,000 BPCE 2.5% 15/07/2019 432,634 0.06

200,000 BPCE 3% 19/07/2024 249,959 0.04

100,000 Cap Gemini 1.75% 01/07/2020 112,791 0.02

300,000 Casino Guichard Perrachon 3.157% 06/08/2019 357,442 0.05

100,000 Électricité de France 6% VRN PERP 121,800 0.02

400,000 Essilor International 1.75% 09/04/2021 459,561 0.07

100,000 GDF Suez 4.625% VRN PERP 131,519 0.02

200,000 GDF Suez 4.75% VRN PERP 240,713 0.04

100,000 Gecina 1.5% 20/01/2025 110,489 0.02

42

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 3

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

France (continued)

300,000 Groupe Auchan 3.625% 19/10/2018 344,601 0.05

423,000 Orange 4.25% VRN PERP 484,631 0.07

114,000 Orange 5.75% VRN PERP 151,411 0.02

54,000 Orange 8.125% 20/11/2028 103,745 0.01

300,000 Pernod Ricard 2% 22/06/2020 343,312 0.05

470,000 RCI Banque 2.25% 29/03/2021 540,703 0.08

22,000 RCI Banque 3% 09/05/2019 28,762 -

50,000 RCI Banque 3.25% 25/04/2018 64,555 0.01

100,000 RTE Reseau de Transport 1.625% 27/11/2025 112,434 0.02

392,000 Saint Gobain 4.5% 30/09/2019 473,448 0.07

300,000 Sanofi 1.75% 10/09/2026 340,748 0.05

300,000 Scor 3% VRN 08/06/2046 324,641 0.05

100,000 Scor 3.625% VRN 27/05/2048 110,575 0.02

400,000 Societe Des Autoroutes Paris Rhin Rhône 2.25% 16/01/2020 459,205 0.07

200,000 Total 2.25% VRN PERP 214,174 0.03

100,000 Total 3.875% VRN PERP 114,021 0.02

110,000 Total Capital International 2.25% 09/06/2022 144,681 0.02

Germany 3,010,135 0.45

517,000 Bayer 3% VRN 01/07/2075 568,083 0.08

114,000 BMW Finance 0.875% 16/08/2022 138,255 0.02

130,000 Daimler 1% 20/12/2019 163,438 0.03

15,000 Daimler 1.75% 08/11/2017 19,024 -

470,000 Daimler 2% 25/06/2021 544,876 0.08

120,000 Daimler 2.75% 04/12/2020 159,971 0.02

300,000 Deutsche Bank 1.125% 17/03/2025 303,200 0.05

100,000 Deutsche Boerse 2.7482% VRN 05/02/2041 113,603 0.02

32,000 Henkel Ag 0.875% 13/09/2022 39,337 0.01

450,000 Muench. Rueck. 5.767% VRN PERP 495,458 0.07

100,000 Munich Ruckvers 6.625% VRN 26/05/2042 147,027 0.02

255,000 Vier Gas Transport 3.125% 10/07/2023 317,863 0.05

Ireland 1,866,456 0.28

423,000 Aquarius & Investments Zurich 4.25% VRN 02/10/2043 500,612 0.07

300,000 CRH Finance 3.125% 03/04/2023 367,516 0.06

565,000 GE Capital International Funding 4.418% 15/11/2035 594,722 0.09

120,000 GE Capital UK Funding 5.875% 18/01/2033 217,298 0.03

200,000 Perrigo Finance 4.9% 15/12/2044 186,308 0.03

Israel 461,243 0.07

440,000 Israel Electric 5% 12/11/2024 461,243 0.07

Italy 1,407,637 0.21

500,000 Assicurazioni Generali 7.75% VRN 12/12/2042 637,054 0.10

200,000 Exor 2.5% 08/10/2024 225,039 0.03

486,000 Intesa Sanpaolo 2% 18/06/2021 545,544 0.08

Jersey 963,325 0.14

100,000 CPUK Finance 7.239% 28/02/2024 162,114 0.03

130,000 Gatwick Airport 6.125% 02/03/2026 210,206 0.03

100,000 Heathrow Funding 4.625% 31/10/2046 159,350 0.02

430,000 HSBC Bank Middle East 2.75% 01/10/2019 431,655 0.06

Luxembourg 1,977,546 0.29

789,000 Actavis Funding 2.45% 15/06/2019 794,389 0.12

423,000 Glencore Finance Europe 3.375% 30/09/2020 501,545 0.07

400,000 Hannover Finance 5% VRN 30/06/2043 498,605 0.07

164,000 Holcim Finance 2.25% 26/05/2028 183,007 0.03

Mexico 1,092,818 0.16

287,000 América Móvil 3.125% 16/07/2022 283,473 0.04

100,000 América Móvil 4.375% 07/08/2041 138,575 0.02

600,000 Kimberly-Clark de Mexico 3.8% 08/04/2024 596,898 0.09

50,000 Petróleos Mexicanos 8.25% 02/06/2022 73,872 0.01

43

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 3

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

Netherlands 7,107,152 1.05

223,000 ABN Amro Bank 7.125% 06/07/2022 305,702 0.04

300,000 Allianz Finance 5.75% 08/07/2041 375,095 0.06

250,000 Cooperatieve Rabobank UA 3.75% 21/07/2026 243,970 0.04

200,000 Cooperatieve Rabobank UA 6.625% VRN PERP 232,076 0.03

455,000 Deutsche Telekom International Finance 4.25% 16/03/2020 555,200 0.08

50,000 E.ON International Finance 5.875% 30/10/2037 86,567 0.01

248,000 ELM 4.5% VRN PERP 274,233 0.04

148,000 Enexis Holding 1.5% 20/10/2023 168,238 0.02

420,000 Heineken 1.5% 07/12/2024 470,073 0.07

646,000 ING Bank 2.5% 01/10/2019 650,697 0.10

100,000 ING Bank 5.375% 15/04/2021 147,098 0.02

70,000 Koninklijke KPN 5.75% 17/09/2029 110,670 0.02

547,000 Lyondell Basell Industries 4.625% 26/02/2055 516,497 0.08

100,000 Petrobras International Finance 6.25% 14/12/2026 121,250 0.02

50,000 Rabobank Nederland 2.25% 23/03/2022 65,210 0.01

120,000 Relx Finance 1.375% 12/05/2026 129,853 0.02

400,000 Repsol International Finance 3.625% 07/10/2021 492,432 0.07

78,000 Innogy Finance 6.25% 03/06/2030 130,238 0.02

200,000 Swiss Reinsurance Company 2.6% VRN PERP 208,256 0.03

150,000 Teva Pharmaceuticals 3.15% 01/10/2026 135,738 0.02

400,000 Unilever 1% 03/06/2023 445,860 0.07

120,000 Volkswagen Finance Services 2.75% 02/10/2020 157,339 0.02

500,000 Vonovia SE 3.125% 25/07/2019 579,617 0.09

423,000 Wolters Kluwer 2.5% 13/05/2024 505,243 0.07

Portugal 110,577 0.02

100,000 Brisa Concessao Rodoviaria 2% 22/03/2023 110,577 0.02

Spain 2,453,461 0.36

300,000 BBVA Senior Finance 2.375% 22/01/2019 339,198 0.05

286,000 Ferrovial Emisiones 3.375% 07/06/2021 346,124 0.05

400,000 Gas Natural Capital 6% 27/01/2020 506,753 0.08

400,000 Red Électrica Finance 3.875% 25/01/2022 503,624 0.07

100,000 Santander Issuances 3.25% 04/04/2026 109,329 0.02

400,000 Telefónica Emisiones 3.987% 23/01/2023 502,448 0.07

100,000 Telefónica Emisiones 5.289% 09/12/2022 145,985 0.02

Sweden 2,291,934 0.34

423,000 Nordea Bank 4.625% VRN 15/02/2022 457,849 0.07

455,000 Skandinaviska Enskilda 4% 12/09/2022 502,893 0.07

1,040,000 Svenska Handelsbanken 2.25% 17/06/2019 1,044,992 0.16

300,000 Teliasonera 1.625% 23/02/2035 286,200 0.04

Switzerland 2,551,297 0.38

317,000 Credit Suisse 1.375% 29/11/2019 354,641 0.05

181,000 Credit Suisse 3% 27/05/2022 234,125 0.04

718,000 Credit Suisse 3.625% 09/09/2024 723,001 0.11

423,000 UBS 4.75% VRN 12/02/2026 499,021 0.07

200,000 UBS Group Funding 1.25% 01/09/2026 204,899 0.03

551,000 UBS Group Funding 2.65% 01/02/2022 535,610 0.08

United Kingdom 14,009,381 2.07

150,000 Affinity Water Finance 5.875% 13/07/2026 246,233 0.03

250,000 Astrazeneca 3.375% 16/11/2025 248,739 0.04

100,000 Aviva 6.625% VRN 03/06/2041 140,393 0.02

271,000 Barclays Bank 10% 21/05/2021 435,215 0.06

509,000 Barclays Bank 7.625% 21/11/2022 559,078 0.08

246,000 Barclays PLC 1.5% 01/04/2022 268,529 0.04

254,000 Barclays PLC 2.75% 08/11/2019 254,892 0.04

250,000 Barclays PLC 5.25% 17/08/2045 265,339 0.04

130,000 BG Energy Capital 6.5% VRN 30/11/2072 170,708 0.02

182,000 BP Capital Markets 1.177% 12/08/2023 220,556 0.03

355,000 British Telecommunications 1.125% 10/06/2019 393,056 0.06

44

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 3

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

United Kingdom (continued)

15,000 British Telecommunications 8.625% 26/03/2020 23,231 -

100,000 BUPA Finance 5% 08/12/2026 131,990 0.02

50,000 Circle Anglia Social Hsg 7.25% 12/11/2038 104,550 0.02

455,000 Compass Group 3.125% 13/02/2019 523,044 0.08

100,000 Everything Everywhere Finance 4.375% 28/03/2019 134,759 0.02

300,000 FCE Bank 1.528% 09/11/2020 334,734 0.05

204,000 FCE Bank 1.875% 18/04/2019 229,157 0.03

125,000 Glaxo Smith Kline Capital 6.375% 09/03/2039 247,008 0.04

100,000 Hammerson 7.25% 21/04/2028 175,955 0.03

322,000 HSBC Holdings 0.875% 06/09/2024 337,553 0.05

100,000 HSBC Holdings 1.5% 15/03/2022 111,805 0.02

100,000 HSBC Holdings 2.5% 15/03/2027 116,822 0.02

172,000 HSBC Holdings 2.625% 16/08/2028 204,247 0.03

423,000 HSBC Holdings 3.375% VRN 10/01/2024 479,440 0.07

212,000 HSBC Holdings 6.375% VRN PERP 211,439 0.03

150,000 HSBC Holdings 6.75% 11/09/2028 230,501 0.03

50,000 Imperial Tobacco Finance 8.125% 15/03/2024 86,272 0.01

133,000 Legal & General Group 5.375% VRN 27/10/2045 173,698 0.03

50,000 Legal & General Group 6.385% VRN PERP 63,151 0.01

100,000 Manc Airport Group Funding 4.75% 31/03/2034 157,558 0.02

100,000 Marks And Spencer 3% 08/12/2023 126,308 0.02

423,000 Mondi Finance 3.375% 28/09/2020 505,654 0.07

707,000 National Grid Gas Finance 2.75% 22/09/2046 839,840 0.12

198,000 Nationwide Building Society 2.25% 29/04/2022 257,268 0.04

100,000 NGG Finance 5.625% VRN 18/06/2073 137,753 0.02

100,000 Peabody Capital 5.25% 17/03/2043 173,542 0.03

100,000 Places for People Homes 5.875% 23/05/2031 155,177 0.02

116,000 Places For People Treasury 2.875% 17/08/2026 139,744 0.02

150,000 Prudential Financial 5% VRN 20/07/2055 184,148 0.03

100,000 Prudential Financial 5.7% VRN 19/12/2063 127,030 0.02

100,000 Reed Elsevier Investments 2.75% 01/08/2019 130,562 0.02

569,000 Royal Bank of Scotland 3.875% 12/09/2023 554,064 0.08

600,000 Santander UK Group Holdings 2.35% 10/09/2019 602,253 0.09

108,000 Santander UK Group Holdings 3.625% 14/01/2026 138,428 0.02

100,000 Severn Trent Utilities Finance 6.25% 07/06/2029 175,998 0.03

100,000 Severn Trent Water Utillities 2.75% 05/12/2031 128,504 0.02

100,000 South Eastern Power Networks 6.375% 12/11/2031 181,809 0.03

100,000 SSE 3.875% VRN PERP 126,447 0.02

100,000 Standard Chartered 4.375% 18/01/2038 136,477 0.02

75,000 Tesco 6% 14/12/2029 103,970 0.02

100,000 Thames Water Utilities Finance 1.875% 24/01/2024 124,606 0.02

100,000 Thames Water Utilities Finance 2.625% 24/01/2032 124,361 0.02

140,000 Thames Water Utilities Finance 5.125% 28/09/2037 238,146 0.04

100,000 United Utilities Water 5.625% 20/12/2027 164,660 0.02

150,000 Western Power Distribution 3.875% 17/10/2024 211,541 0.03

831,000 WPP Finance 3.75% 19/09/2024 841,537 0.12

70,000 Zurich Finance 6.625% VRN PERP 99,902 0.01

United States 61,965,298 9.17

573,000 21st Century Fox America 5.4% 01/10/2043 622,822 0.09

99,000 Abbott Laboratories 3.75% 30/11/2026 98,018 0.01

615,000 Air Products And Chemicals 3.35% 31/07/2024 632,589 0.09

410,000 Altria Group 5.375% 31/01/2044 468,538 0.07

472,000 Amazon.com 4.95% 05/12/2044 540,029 0.08

243,000 American Express 1.55% 22/09/2017 243,166 0.04

645,000 American Express 2.25% 15/08/2019 649,796 0.10

33,000 American Express 7% 19/03/2018 34,930 -

45

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 3

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

United States (continued)

100,000 American International Group 5% 26/04/2023 144,024 0.02

452,000 Amgen 3.875% 15/11/2021 474,693 0.07

100,000 Amgen 4% 13/09/2029 139,386 0.02

150,000 Apple 3.6% 31/07/2042 210,561 0.03

330,000 Apple 4.45% 06/05/2044 339,390 0.05

350,000 AT&T 2.6% 17/12/2029 389,299 0.06

37,000 AT&T 2.625% 01/12/2022 35,642 -

100,000 AT&T 5.2% 18/11/2033 149,176 0.02

470,000 AT&T 5.35% 01/09/2040 474,693 0.07

150,000 AT&T 7% 30/04/2040 273,084 0.04

327,000 Bank of America 1.7% 25/08/2017 327,535 0.05

345,000 Bank of America 1.875% 10/01/2019 386,432 0.06

40,000 Bank of America 2.65% 01/04/2019 40,472 0.01

574,000 Bank of America 3.3% 11/01/2023 575,578 0.08

67,000 Bank of America 4.2% 26/08/2024 68,101 0.01

76,000 Bank of America 5.7% 24/01/2022 85,268 0.01

150,000 Bank of America 7% 31/07/2028 259,653 0.04

709,000 Bank of New York Mellon 2.3% 11/09/2019 716,512 0.11

686,000 Branch Banking & Trust 3.8% 30/10/2026 706,762 0.10

210,000 Brandywine Operating Partners 4.1% 01/10/2024 207,187 0.03

300,000 Bristol Myers Squibb 1% 15/05/2025 325,590 0.05

600,000 Burlington Northern Santa 4.55% 01/09/2044 644,772 0.10

1,077,000 Capital One Financial 2.95% 23/07/2021 1,086,580 0.16

308,000 CF Industries 4.5% 01/12/2026 308,390 0.05

430,000 Citigroup 5.5% 13/09/2025 469,700 0.07

84,000 Citigroup 8.125% 15/07/2039 124,950 0.02

535,000 Coca Cola 1.125% 09/03/2027 575,096 0.08

837,000 Comcast 3.375% 15/02/2025 837,423 0.12

167,000 Comcast Corporation 3.4% 15/07/2046 141,350 0.02

500,000 Comerica 3.8% 22/07/2026 493,402 0.07

261,000 Conoco Phillips 2.875% 15/11/2021 263,208 0.04

359,000 Continental Resources 4.9% 01/06/2044 319,061 0.05

573,000 CSX 4.5% 01/08/2054 556,704 0.08

185,000 Devon Energy Corporation 5% 15/06/2045 187,659 0.03

250,000 Discover Bank 2.6% 13/11/2018 252,220 0.04

350,000 Discovery Communications 1.9% 19/03/2027 362,183 0.05

32,000 Dominion Resources 4.45% 15/03/2021 34,196 -

243,000 Dominion Resources 5.75% VRN 01/10/2054 251,743 0.04

740,000 Dow Chemical 3.5% 01/10/2024 745,617 0.11

171,000 Duke Energy Pogress 4.15% 01/12/2044 173,821 0.03

190,000 Eastman Chemical 3.8% 15/03/2025 193,258 0.03

438,000 EMD Finance 3.25% 19/03/2025 429,807 0.06

672,000 Energy Transfer Partners 5.15% 01/02/2043 644,115 0.09

179,000 Energy Transfer Partners LP 5.3% 15/04/2047 178,036 0.03

229,000 Enlink Midstream Partners 5.05% 01/04/2045 213,542 0.03

288,000 EOG Resources 3.15% 01/04/2025 282,473 0.04

717,000 Fifth Third Bancorp 2.3% 01/03/2019 722,238 0.11

304,000 Fifth Third Bank 2.875% 01/10/2021 307,931 0.05

487,000 Ford Motor Credit 5.875% 02/08/2021 542,182 0.08

177,000 General Electric 5.875% 14/01/2038 223,080 0.03

432,000 General Motors 6.75% 01/04/2046 512,713 0.08

120,000 General Motors Financial 4.35% 17/01/2027 119,387 0.02

300,000 Goldman Sachs 2% 27/07/2023 339,816 0.05

104,000 Goldman Sachs 2.35% 15/11/2021 101,342 0.01

486,000 Goldman Sachs 2.5% 18/10/2021 569,081 0.08

201,000 Goldman Sachs 3.85% 08/07/2024 205,281 0.03

46

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 3

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

United States (continued)

100,000 Goldman Sachs 4.25% 29/01/2026 138,516 0.02

297,000 Goldman Sachs 5.75% 24/01/2022 333,154 0.05

738,000 HCP 3.875% 15/08/2024 740,184 0.11

287,000 Johnson Controls 4.625% 02/07/2044 289,118 0.04

806,000 JP Morgan Chase 3.875% 10/09/2024 813,347 0.12

220,000 JP Morgan Chase 4.25% 15/10/2020 234,101 0.03

250,000 Key Bank 2.5% 15/12/2019 252,273 0.04

777,000 Kilroy Realty 4.25% 15/08/2029 774,727 0.11

169,000 Kinder Morgan 5.55% 01/06/45 179,476 0.03

650,000 Kinder Morgan Energy 3.95% 01/09/2022 671,613 0.10

70,000 Kinder Morgan Energy Partners 5.4% 01/09/2044 72,138 0.01

513,000 Kroger 3.3% 15/01/2021 526,456 0.08

83,000 Kroger 3.875% 15/10/2046 74,916 0.01

287,000 Liberty Mutual Group 4.85% 01/08/2044 285,879 0.04

520,000 Lowe's Companies 4.25% 15/09/2044 525,255 0.08

528,000 Marathon Petroleum 3.625% 15/09/2024 518,522 0.08

410,000 Marathon Petroleum 4.75% 15/09/2044 368,588 0.05

322,000 Medtronic 4.625% 15/03/2045 346,520 0.05

312,000 Metropolitan Life Global Funding I 3% 10/01/2023 313,198 0.05

130,000 Metropolitan Life Global Funding I 3.5% 30/09/2026 182,957 0.03

376,000 Microsoft 3.125% 06/12/2028 490,954 0.07

158,000 Microsoft 3.45% 08/08/2036 147,664 0.02

167,000 Microsoft 4.2% 03/11/2035 172,631 0.03

731,000 Monsanto 4.4% 15/07/2044 719,183 0.11

800,000 Morgan Stanley 2.375% 23/07/2019 803,924 0.12

167,000 Morgan Stanley 3.125% 27/07/2026 158,769 0.02

317,000 Morgan Stanley 4.35% 08/09/2026 322,460 0.05

256,000 Morgan Stanley 5.625% 23/09/2019 277,605 0.04

467,000 Motorola Solutions 4% 01/09/2024 469,174 0.07

394,000 New York Life Global Funding 2.15% 18/06/2019 396,384 0.06

174,000 Noble Energy 5.05% 15/11/2044 179,155 0.03

143,000 Oracle 2.8% 08/07/2021 145,977 0.02

681,000 Oracle 4.3% 08/07/2034 702,850 0.10

897,000 Pepsi 3.6% 01/03/2024 939,729 0.14

261,000 Philip Morris International 4.25% 10/11/2044 256,466 0.04

423,000 Prologis 3.375% 20/02/2024 522,210 0.08

35,000 Prudential Financial 5.375% 21/06/2020 38,261 0.01

447,000 Realty Income 4.125% 15/10/2026 463,155 0.07

1,059,000 Roche Holding 2.875% 29/09/2021 1,078,851 0.16

309,000 S&P Global 4.4% 15/02/2026 325,638 0.05

612,000 Simon Property Group 4.25% 01/10/2044 605,467 0.09

400,000 Teachers Insurance & Annuity 6.85% 16/12/2039 522,274 0.08

88,000 TIAA Asset Management Finance 2.95% 01/11/2019 89,539 0.01

645,000 Time Warner Cable 4% 01/09/2021 666,769 0.10

100,000 Time Warner Cable 5.25% 15/07/2042 143,895 0.02

870,000 US Bancorp 3.6% 11/09/2024 890,123 0.13

320,000 US (Govt) 1% 15/03/2019 318,379 0.05

531,000 US (Govt) 0.875% 15/06/2019 525,679 0.08

13,885,200 US (Govt) 0.375% 15/07/2025 14,213,630 2.10

155,000 US (Govt) 3% 15/11/2045 153,384 0.02

153,000 US (Govt) 2.25% 15/08/2046 128,914 0.02

400,000 Verizon Communications 1.625% 01/03/2024 442,326 0.07

55,000 Verizon Communications 2.625% 21/02/2020 55,907 0.01

1,009,000 Verizon Communications 4.272% 15/01/2036 946,326 0.14

100,000 Verizon Communications 4.75% 17/02/2034 146,315 0.02

21,000 Verizon Communications 4.862% 21/08/2046 20,261 -

100,000 Wal-Mart Stores 5.625% 27/03/2034 177,455 0.03

330,000 Wal-Mart Stores 5.625% 15/04/2041 404,572 0.06

528,000 Wells Fargo 3.3% 09/09/2024 524,550 0.08

573,000 Wells Fargo 4.1% 03/06/2026 580,942 0.09

100,000 Wells Fargo 4.875% 29/11/2035 149,243 0.02

947,000 Williams Partners 4.3% 04/03/2024 976,087 0.14

47

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 3

Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

Units of eligible UCITS and UCI's within the meaning of article 41 (1) e

of the Luxembourg Law of 17 December 2010 511,347,123 75.71

Collective Investment Schemes 511,347,123 75.71

Ireland 100,519,464 14.88

4,400,341 HSBC ESI Worldwide Equity ETF 65,939,110 9.76

424,825 HSBC Worldwide Equity ETF 7,002,178 1.04

474,176 Ishares Core MSCI Emerging Markets ETF 11,086,235 1.64

34,403 Ishares Core MSCI Pacific Ex Japan ETF 4,270,444 0.63

1,101,680 Ishares Fallen Angels High Yield Fund ETF 5,728,736 0.85

183,101 SPDR MSCI World Financials UCITS ETF 6,492,761 0.96

Luxembourg 207,359,168 30.70

2,438,633 HSBC Global Investment Funds - Global Corporate Bond "ZQ" 27,254,059 4.04

2,553,072 HSBC Global Investment Funds - Global Emerging Markets Bond "ZQ" 26,031,122 3.85

4,612,270 HSBC Global Investment Funds - Global Emerging Markets Local Debt "ZQ" 43,295,379 6.41

614,998 HSBC Global Investment Funds - Global Government Bond "ZQ" 6,214,551 0.92

5,640,083 HSBC Global Investment Funds - Global High Yield Bond "ZQ" 57,782,654 8.56

3,174,670 HSBC Global Investment Funds - Global Real Estate Equity "ZQ" 33,862,713 5.01

1,274,787 HSBC Global Investment Funds - Global Short Duration High Yield Bond "ZQ" 12,918,690 1.91

United Kingdom 203,468,491 30.13

749,895 FTSE 100 Index "Institutional Acc" 1,991,609 0.29

69,494,738 FTSE All World Index "Institutional Acc" 125,638,880 18.60

7,724,180 HSBC American Index "Institutional Acc" 49,278,942 7.30

1,347,390 HSBC European Index "Institutional Acc" 14,013,827 2.08

718,619 HSBC FTSE All Share Index Acc 4,977,947 0.74

5,185,215 HSBC Japan Index "Institutional Acc" 7,567,286 1.12

Total Investments 629,113,509 93.15

Other Net Assets 46,230,864 6.85

Net Assets 675,344,373 100.00

48

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 4

Quantity Description Market Value Market Value as a Percentage

USD of Net Assets %

Units of eligible UCITS and UCI's within the meaning of article 41 (1) e

of the Luxembourg Law of 17 December 2010 611,752,754 95.11

Collective Investment Schemes 611,752,754 95.11

Ireland 235,227,211 36.57

6,357,400 HSBC ESI Worldwide Equity ETF 95,265,639 14.81

6,588,455 HSBC Worldwide Equity ETF 108,594,210 16.88

585,506 Ishares Core MSCI Emerging Markets ETF 13,689,130 2.13

44,921 Ishares Core MSCI Pacific Ex Japan ETF 5,576,044 0.87

1,069,980 Ishares Fallen Angels High Yield Fund ETF 5,563,896 0.86

184,385 SPDR MSCI World Financials UCITS ETF 6,538,292 1.02

Luxembourg 168,474,633 26.19

587,534 HSBC Global Investment Funds - Global Corporate Bond "ZQ" 6,115,057 0.95

2,473,673 HSBC Global Investment Funds - Global Emerging Markets Bond "ZQ" 25,221,567 3.92

4,296,269 HSBC Global Investment Funds - Global Emerging Markets Local Debt "ZQ" 42,315,479 6.58

5,308,957 HSBC Global Investment Funds - Global High Yield Bond "ZQ" 54,390,260 8.46

3,052,601 HSBC Global Investment Funds - Global Real Estate Equity "ZQ" 31,029,689 4.82

927,825 HSBC Global Investment Funds - Global Short Duration High Yield Bond "ZQ" 9,402,581 1.46

United Kingdom 208,050,910 32.35

1,160,843 FTSE 100 Index "Institutional Acc" 3,083,025 0.48

57,799,773 FTSE All World Index "Institutional Acc" 104,495,664 16.25

10,055,533 HSBC American Index "Institutional Acc" 64,152,571 9.98

1,967,251 HSBC European Index "Institutional Acc" 20,460,819 3.18

855,575 HSBC FTSE All Share Index Acc 5,926,660 0.92

6,805,669 HSBC Japan Index "Institutional Acc" 9,932,171 1.54

Total Investments 611,752,754 95.11

Other Net Assets 31,424,191 4.89

Net Assets 643,176,945 100.00

49

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Schedule of Investments and Other Net Assetsas at 31 January 2017 (continued)

HSBC Portfolios - World Selection 5

Quantity Description Market Value Market Value as a Percentage

USD of Net Assets %

Units of eligible UCITS and UCI's within the meaning of article 41 (1) e

of the Luxembourg Law of 17 December 2010 233,712,645 94.49

Collective Investment Schemes 233,712,645 94.49

Ireland 106,631,271 43.11

3,081,711 HSBC ESI Worldwide Equity ETF 46,179,439 18.67

2,116,592 HSBC Worldwide Equity ETF 34,886,728 14.11

439,459 Ishares Core MSCI Emerging Markets ETF 10,274,551 4.15

31,816 Ishares Core MSCI Pacific Ex Japan ETF 3,949,320 1.60

34,101 Ishares Core S&P 500 ETF 7,330,351 2.96

252,380 Ishares Fallen Angels High Yield Fund ETF 1,312,376 0.53

76,100 SPDR MSCI World Financials UCITS ETF 2,698,506 1.09

Luxembourg 29,192,324 11.80

115,164 HSBC Global Investment Funds - Global Emerging Markets Bond "ZQ" 1,174,212 0.47

1,174,233 HSBC Global Investment Funds - Global Emerging Markets Local Debt "ZQ" 11,022,526 4.46

443,795 HSBC Global Investment Funds - Global High Yield Bond "ZQ" 4,546,679 1.84

1,224,683 HSBC Global Investment Funds - Global Real Estate Equity "ZQ" 12,448,907 5.03

United Kingdom 97,889,050 39.58

383,056 FTSE 100 Index "Institutional Acc" 1,017,340 0.41

14,197,097 FTSE All World Index "Institutional Acc" 25,666,798 10.38

6,712,898 HSBC American Index "Institutional Acc" 42,827,138 17.31

1,494,869 HSBC European Index "Institutional Acc" 15,547,710 6.29

813,378 HSBC FTSE All Share Index Acc 5,634,353 2.28

4,930,607 HSBC Japan Index "Institutional Acc" 7,195,711 2.91

Total Investments 233,712,645 94.49

Other Net Assets 13,618,610 5.51

Net Assets 247,331,255 100.00

50

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51

Appendix I (Unaudited AdditionalDisclosures) – Taxation of the Company (foreigncountries)

The following summary is based on the Company’s understanding of the law and practice currently in force in the in other jurisdictions and is

subject to changes therein.

United Kingdom

On the basis that the Company is not resident in the United Kingdom for tax purposes it should not be subject to United Kingdom corporation

tax on its income and capital gains.

In many markets the Company, as a foreign investment fund, may be subject to non-recoverable tax on income and gains (either by withholding

or direct assessment) in relation to the investment returns it realizes from its holdings of shares and securities in those markets. Where

practicable the Company will make claims under the relevant double tax treaties and domestic law of the countries concerned in order to

minimize the impact of local taxation on the investment return and to obtain the best return for its shareholders. Those claims will be made on

the basis of the Company’s understanding of the validity of such claims given the information available from the Company’s custodians, external

advisers and other sources as` to the interpretation and application of the relevant legal provisions by the tax authorities in the country

concerned.

The Company will seek to provide for tax on capital gains where it considers that it is more likely than not that the tax will be payable, given the

advice and information available to the Company at the date concerned. However, any provision held may be insufficient to cover, or be in

excess of, any final liability.

The Company will seek to claim concessionary tax treatment and account for tax on a best efforts basis, given the tax law and practice at that

date. Any change in tax law or practice in any country where the Company is registered, marketed or invested could affect the value of the

Company’s investments in the affected country.

In particular, where retrospective changes to tax law or practice are applied by the legislature or tax authorities in a particular country these may

result in a loss for current Shareholders in the affected sub fund. The Company does not offer any warranty as to the tax position of returns from

investments held in a particular market nor of the risk of a retrospective assessment to tax in a particular market or country.

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52

Appendix II (Unaudited AdditionalDisclosures) – UK SORP Disclosure

Investment Risk

Information in relation to certain investment risks are disclosed for selected sub-funds as follows:

Market risk

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as

market prices, foreign exchange rates and interest rates. It comprises of three major types of risks i.e. currency risk, interest rate risk and other

price risk.

As invested in securities and collective investment schemes, the Company is exposed to the risk that the equity and fixed income markets

decline.

(i) Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial asset will fluctuate because of changes in foreign exchange rates.

The below table summarises the following sub-funds’ exposure to currency risks.

Sub-fund Currency

Net currency exposure in

Sub-fund currency

HSBC Portfolios - World Selection 1

EUR 283,077,015

GBP 59,409,299

Other 23,189,216

HSBC Portfolios - World Selection 2

EUR 231,394,275

GBP 164,216,540

Other 9,487,305

HSBC Portfolios - World Selection 3

EUR 237,065,074

GBP 337,430,795

Other 17,169,978

HSBC Portfolios - World Selection 4

EUR 375,440,895

GBP 301,623,365

Other 10,955,112

HSBC Portfolios - World Selection 5

EUR 123,759,124

GBP 130,269,435

Other 4,647,496

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial asset will fluctuate because of changes in market interest rates.

The following table details the below sub-funds’ exposure to interest rate risks.

HSBC Portfolios -

World Selection 1

HSBC Portfolios -

World Selection 2

HSBC Portfolios -

World Selection 3

HSBC Portfolios -

World Selection 4

HSBC Portfolios -

World Selection 5

Cash at bank 44,172,552 42,977,543 39,584,737 24,557,937 11,056,324

Bank overdraft 5,168 - 43,718 71,626 98,468

Bonds 171,982,113 175,776,757 117,766,386 - -

Total 216,159,833 218,754,300 157,394,841 24,629,563 11,154,792

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53

Appendix II (Unaudited AdditionalDisclosures) – UK SORP Disclosure(continued)

Investment Risk (continued)

Market risk (continued)

(iii) Credit risk

The Company is subject to credit risk as the sub-fund invests in bonds.

Analysis of direct credit risk

Currency Investment grade

Non-investment

grade Unrated Total

HSBC Portfolios - World Selection 1 USD 164,059,450 5,733,372 219,295,296 389,088,118

HSBC Portfolios - World Selection 2 USD 154,501,827 17,897,459 286,446,360 458,845,646

HSBC Portfolios - World Selection 3 USD 100,607,298 15,090,085 513,416,126 629,113,509

HSBC Portfolios - World Selection 4 USD - - 611,752,754 611,752,754

HSBC Portfolios - World Selection 5 USD - - 233,712,645 233,712,645

Credit risk arising on bonds is mitigated by investing in government bonds where the credit risk is minimal, or corporate bonds which are rated

at least investment grade. The sub-funds also invests in high yield and emerging market bonds which are non-investment grade. The sub-fund

manages the associated risk by diversifying the portfolio to minimise the impact of default by any one issuer.

(iv) Other price risk

Other price risk is the risk that the fair value or future cash flows of a financial asset will fluctuate because of changes in market prices (other

than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial

instrument or its issuer, or factors affecting all similar financial instruments traded in the market.

Other price risk arises principally in relation to the sub-fund’s return seeking portfolio which includes collective investment scheme.

The sub-fund manages this exposure to other price risk by constructing a diverse portfolio of investments across various markets.

At the period end, the sub-fund’s exposure to investments subject to other price risk was:

HSBC Portfolios - World Selection 1

USD

Indirect

Collective Investment Schemes 217,106,005

HSBC Portfolios - World Selection 2

USD

Indirect

Collective Investment Schemes 283,068,889

HSBC Portfolios - World Selection 3

USD

Indirect

Collective Investment Schemes 511,347,123

HSBC Portfolios - World Selection 4

USD

Indirect

Collective Investment Schemes 611,752,754

HSBC Portfolios - World Selection 5

USD

Indirect

Collective Investment Schemes 233,712,645

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54

Appendix II (Unaudited AdditionalDisclosures) – UK SORP Disclosure(continued)

Investment Risk (continued)

Market risk (continued)

Fair value hierarchy

The fair value of financial instruments has been determined using the following fair value hierarchy:

Category (a) The quoted price for an identical asset in an active market.

Category (b) When quoted prices are unavailable, the price of a recent transaction for an identical asset adjusted ifnecessary.

Category (c) Where a quoted price is not available and recent transactions of an identical asset on their own are not a good estimate of fairvalue, the fair value is determined by using a valuation technique which uses:

c (i) observable market data; or

c (ii) non-observable data.

The sub-fund's investment assets and liabilities have been fair valued using the above hierarchy categories as follows:

Sub-fund Currency Category (a) Category (b) Category c (i) Category c (ii) Total

HSBC Portfolios - World Selection 1 USD 389,088,118 5,376,016 - - 394,464,134

HSBC Portfolios - World Selection 2 USD 458,845,646 6,539,818 - - 465,385,464

HSBC Portfolios - World Selection 3 USD 629,113,509 7,788,335 - - 636,901,844

HSBC Portfolios - World Selection 4 USD 611,752,754 9,356,052 - - 621,108,806

HSBC Portfolios - World Selection 5 USD 233,712,645 3,246,197 - - 236,958,842

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55

Appendix III (Unaudited AdditionalDisclosures) – Fund Holiday Calendar for 2017

All HSBC Portfolios sub-funds have holidays on:

all Saturdays and Sundays

and on the following dates :

2-Jan14-Apr17-Apr1-May25-May29-May5-Jun23-Jun15-Aug28-Aug1-Nov22-Dec25-Dec26-Dec29-Dec

UKLuxembourg, UKLuxembourg, UKLuxembourg, UKLuxembourgUKLuxembourgLuxembourgLuxembourgUKLuxembourgUKLuxembourg, UKLuxembourg, UKUK

Shareholders who deal through the Company’s local distributor or representative should note that there will be no dealing for the shares of

the Company in the jurisdiction in which such distributor or representative operates on a day which is not a business day in such jurisdiction.

The Company will determine the fund holiday calendar according to the latest market information obtained by the Company from time to

time. Shareholders can obtain the latest fund holiday calendar of the Company from the registered office of the Company or from the

Company’s local distributor or representative.

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HSBC Global Asset Management, the sponsor of HSBC Portfolios, is the asset management specialist of the HSBC Group and operates through HSBC Bank plc andits subsidiaries.

HSBC Global Asset Management is the trading name of HSBC Global Asset Management Limited. HSBC Global Asset Management is established at 8 CanadaSquare, London E14 5HQ, United Kingdom, which is its registered office.

© Copyright. HSBC Global Asset Management Limited 2017. All Rights Reserved 14846/0608