HSBC World Selection Funds · PDF fileHSBC World Selection ... Class A and C Shares Aggressive...

HSBC World Selection™ FundsMarch 31, 2017

Monthly FactsheetsClass A and C Shares

Aggressive Strategy Fund

Balanced Strategy Fund

Moderate Strategy Fund

Conservative Strategy Fund

Income Strategy Fund

Investment products:

ARE NOT A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES

ARE NOT FDIC INSURED

ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

ARE NOT GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES

MAY LOSE VALUE

1

HSBC World Selection™ Funds March 31, 2017

Aggressive Strategy FundPortfolio objective

The investment objective of the Aggressive Strategy Fund is long-term growth of capital.

Fund details

Investment adviser HSBC Global Asset Management (USA) Inc. Launch price $10.00

Inception date A: February 14, 2005 C: June 9, 2005 Total number of holdings† 13

Ticker (by class) A: HAAGX B: HBAGX C: HCAGX Annual management charge 0.25%

CUSIP (by class) A: 40428X750 B: 40428X743 C: 40428X735 Total net assets (all fund classes) $13,690,202

Sales charge (by class)3 A: 5.00% B: 4.00% C: 1.00% Income Dividend (pay date) A: $0.0000 (n/a) C: $0.0000 (n/a)

Expense ratio (gross/net)4 A: 2.00%/1.72% B: 2.75%/2.47% C: 2.75%/2.47% Capital Gain Dividend (pay date) A: $0.0000 (n/a) C: $0.0000 (n/a)

† Represents holdings in affiliated portfolios, affiliated and non-affiliated investment companies and exchange traded funds as of March 31, 2017. Holdings are subject to change without notice.

Past performance is no guarantee of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183, or visit our website at https://investorfunds.us.hsbc.com.

The performance above reflects any fee waivers that have been in effect during the applicable periods as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower.

The indices used for performance comparison are unmanaged. Indexes returns assume reinvestment of all distributions and do not reflect fees or expenses. You cannot invest directly in an index.

Effective January 19, 2010, the range of available asset classes for investment was expanded to include non-HSBC Funds and the Fund’s target allocation was revised. Accordingly, the performance of the Fund prior to January 19, 2010 is not representative of the Funds’ current investment objective and strategy, and all such performance should be considered with this in mind.

Please see page 11 for additional Fund information and index definitions.

Total returns

As of March 31, 2017

Aggressive Strategy Fund1 Aggregate Average annual

Without Sales Charge 3 Month YTD 1 Year 3 Years 5 Years 10 Years Inception

Class A 5.52% 5.52% 13.53% 3.57% 6.97% 3.86% 5.74%

Class C 5.47% 5.47% 12.75% 2.82% 6.18% 3.47% 5.56%

With Sales Charge

Class A (5.00%) 0.24% 0.24% 7.86% 1.81% 5.87% 3.33% 5.29%

Class C (1.00%) 4.47% 4.47% 11.75% 2.82% 6.18% 3.47% 5.56%

MSCI ACWI Index2 7.05% 7.05% 15.69% 5.65% 8.97% 4.56% 6.57%

S&P 500 Index2 6.07% 6.07% 17.17% 10.37% 13.30% 7.51% 7.95%

MSCI EAFE Index2 7.39% 7.39% 12.25% 0.96% 6.32% 1.53% 4.69%

Bloomberg Barclays U.S. Aggregate Bond Index2 0.82% 0.82% 0.44% 2.68% 2.34% 4.27% 4.12%

BofA Merrill Lynch U.S. High Yield Master II Index2 2.71% 2.71% 16.88% 4.62% 6.85% 7.34% 7.39%

Citigroup U.S. Domestic 3-Month T-Bill2 0.12% 0.12% 0.34% 0.15% 0.11% 0.61% 1.23%

2

Portfolio summary as of March 31, 2017

Aggressive Strategy Fund

Global equity % of assets

Passive 54.3%

iShares Core MSCI EAFE 18.2%

iShares Core MSCI Emerging Markets 7.6%

Vanguard 500 Index 28.5%

Alternative Beta 33.1%

PowerShares FTSE RAFI US 13.9%

PowerShares FTSE RAFI DEV 7.2%

iShares Currency Hedged MSCI ETF 12.0%

Fixed incomeCredit 4.0%

Columbia High Yield 3.0%

HSBC Emerging Markets Debt 1.0%

iShares J.P. Morgan Emerging Market Bond <0.1%

Government Bonds 2.6%

HSBC Emerging Markets Local Debt 2.6%

VanEck Vectors J.P. Morgan EM Local Currency Bond ETF <0.1%

AlternativesGlobal property 5.0%

SPDR DJ Global 5.0%

CashCash 1.0%

Portfolio total 100.0%

Portfolio composition by asset allocation

DCB

A

A. Global Equity 87.4%B. Fixed Income 6.6%C. Alternatives 5.0%D. Cash 1.0%

Top 10 Fund holdings % of total

Vanguard 500 Index 28.5%iShares Core MSCI EAFE 18.2%PowerShares FTSE RAFI US 13.9%iShares Currency Hedged MSCI ETF 12.0%iShares Core MSCI Emerging Markets 7.6%PowerShares FTSE RAFI DEV 7.2%SPDR DJ Global 5.0%Columbia High Yield 3.0%HSBC Emerging Markets Local Debt 2.6%HSBC Emerging Markets Debt 1.0%

The portfolio summary information is subject to change without notice. 1 Certain returns shown include monies received by one or more of the Portfolios, in which the Fund invests, in respect of one-time class action settlements.

As a result, the Fund’s total returns for those periods were higher than they would have been had the Portfolio(s) not received the payments.2 Inception performance calculated from February 14, 2005.3 The sales charge for Class A Shares represents the maximum sales charge. Sales charges for Class B and Class C Shares may be assessed on redemptions.

The exact amount of these charges, if any, depends on the amount of time the shares have been held by the investor. See the Prospectus for more information.

4 Reflects the expense ratio as reported in the prospectus dated February 28, 2017. HSBC Global Asset Management (USA) Inc., the Fund’s investment adviser has entered into a contractual expense limitation agreement with the Fund under which it will limit total expenses of the Fund (excluding interest, tax, brokerage commissions, extraordinary expenses and estimated indirect expenses attributable to the Fund’s investments in investment companies other than the HSBC Opportunity Portfolio) to an annual rate of 1.50%, 2.25% and 2.25% for the Class A Shares, Class B Shares and Class C Shares, respectively. The expense limitation agreement is effective until March 1, 2018.

3


Balanced Strategy FundPortfolio objective

The investment objective of the Balanced Strategy Fund is long-term growth of capital.




Effective January 19, 2010, the range of available asset classes for investment was expanded to include non-HSBC Funds and the Fund’s target allocation was revised. Accordingly, the performance of the Fund prior to January 19, 2010 is not representative of the Funds’ current investment objective and strategy, and all such performance should be considered with this in mind.


Fund details


Inception date A: February 8, 2005 C: April 27, 2005 Total number of holdings† 13

Ticker (by class) A: HAGRX B: HSBGX C: HCGRX Annual management charge 0.25%


Sales charge (by class)3 A: 5.00% B: 4.00% C: 1.00% Income Dividend (pay date) A: $0.0000 (n/a) C: $0.0000 (n/a)

Expense ratio (gross)4 A: 1.55% B: 2.30% C: 2.30% Capital Gain Dividend (pay date) A: $0.0000 (n/a) C: $0.0000 (n/a)


Total returns


Balanced Strategy Fund1 Aggregate Average annual


Class A 5.11% 5.11% 12.57% 3.43% 6.13% 3.98% 5.68%

Class C 4.98% 4.98% 11.71% 2.68% 5.33% 3.58% 5.57%

With Sales Charge

Class A (5.00%) -0.17% -0.17% 6.92% 1.68% 5.05% 3.44% 5.23%

Class C (1.00%) 3.98% 3.98% 10.71% 2.68% 5.33% 3.58% 5.57%

MSCI ACWI Index2 7.05% 7.05% 15.69% 5.65% 8.97% 4.56% 6.68%

S&P 500 Index2 6.07% 6.07% 17.17% 10.37% 13.30% 7.51% 7.97%

MSCI EAFE Index2 7.39% 7.39% 12.25% 0.96% 6.32% 1.53% 4.88%




4


Balanced Strategy Fund


DC

B

A



Vanguard 500 Index 24.3%iShares Core MSCI EAFE 15.4%Columbia High Yield 11.5%PowerShares FTSE RAFI US 11.0%iShares Currency Hedged MSCI ETF 10.1%iShares Core MSCI Emerging Markets 6.4%PowerShares FTSE RAFI DEV 5.8%HSBC Emerging Markets Local Debt 5.1%SPDR DJ Global 4.9%HSBC Emerging Markets Debt 4.5%

The portfolio summary information is subject to change without notice.1 Certain returns shown include monies received by one or more of the Portfolios, in which the Fund invests, in respect of one-time class action settlements.



4 Reflects the expense ratio as reported in the prospectus dated February 28, 2017.


Passive 46.1%















AlternativesGlobal property 4.9%

SPDR DJ Global 4.9%

CashCash 1.0%


5


Moderate Strategy FundPortfolio objective

The investment objective of the Moderate Strategy Fund is high total return consisting of long-term growth of capital and current income.




Effective January 19, 2010, the investment objective was revised from seeking a competitive total return consisting of long-term growth of capital and current income. In addition, the range of available asset classes for investment was expanded to include non-HSBC Funds and the Fund’s target allocation was revised. Accordingly, the performance of the Fund prior to January 19, 2010 is not representative of the Funds’ current investment objective and strategy, and all such performance should be considered with this in mind.


Fund details


Inception date A: February 3, 2005 C: June 9, 2005 Total number of holdings† 19

Ticker (by class) A: HSAMX B: HSBMX C: HSCMX Annual management charge 0.25%


Sales charge (by class)3 A: 5.00% B: 4.00% C: 1.00% Income Dividend (pay date) A: $0.0220 (4/3/17) C: $0.0000 (n/a)

Expense ratio (gross)4 A: 1.56% B: 2.31% C: 2.31% Capital Gain Dividend (pay date) A: $0.0000 (n/a) C: $0.0000 (n/a)


Total returns


Moderate Strategy Fund1 Aggregate Average annual


Class A 3.90% 3.90% 8.93% 2.89% 4.93% 3.71% 4.97%

Class C 3.66% 3.66% 8.17% 2.14% 4.15% 3.31% 4.62%

With Sales Charge

Class A (5.00%) -1.27% -1.27% 3.52% 1.16% 3.87% 3.17% 4.53%

Class C (1.00%) 2.66% 2.66% 7.17% 2.14% 4.15% 3.31% 4.62%

MSCI ACWI Index2 7.05% 7.05% 15.69% 5.65% 8.97% 4.56% 6.73%

S&P 500 Index2 6.07% 6.07% 17.17% 10.37% 13.30% 7.51% 8.06%

MSCI EAFE Index2 7.39% 7.39% 12.25% 0.96% 6.32% 1.53% 4.88%




6


Moderate Strategy Fund


Passive 30.4%











iShares Iboxx Investment Grade Bond 12.1%

SPDR Bloomberg Barclays Inter ETF 8.7%




iShares Tips Bond ETF 0.3%

iShares 7-10 Year 0.4%


iShares Barclays 3-7 Year 1.3%


AlternativesGlobal Property 4.9%

SPDR DJ Global 4.9%

CashCash 1.9%



DC

B

A



Vanguard 500 Index 15.8%iShares Iboxx Investment Grade Bond 12.1%Columbia High Yield 11.3%iShares Core MSCI EAFE 10.2%SPDR Bloomberg Barclays Inter ETF 8.7%PowerShares FTSE RAFI US 7.0%iShares Currency Hedged MSCI ETF 7.0%HSBC Emerging Markets Local Debt 5.5%SPDR DJ Global 4.9%HSBC Emerging Markets Debt 4.5%

The portfolio summary information is subject to change without notice.1 Certain returns shown include monies received by one or more of the Portfolios, in which the Fund invests, in respect of one-time class action settlements.



4 Reflects the expense ratio as reported in the prospectus dated February 28, 2017.

7


Conservative Strategy FundPortfolio objective

The investment objective of the Conservative Strategy Fund is high total return consisting of long-term growth of capital and current income.




Effective January 19, 2010, the investment objective was revised from seeking a competitive total return consisting of long-term growth of capital and current income. In addition, the range of available asset classes for investment was expanded to include non-HSBC Funds and the Fund’s target allocation was revised. Accordingly, the performance of the Fund prior to January 19, 2010 is not representative of the Funds’ current investment objective and strategy, and all such performance should be considered with this in mind.


Fund details


Inception date A: February 23, 2005 C: April 19, 2005 Total number of holdings† 20

Ticker (by class) A: HACGX B: HBCGX C: HCCGX Annual management charge 0.25%


Sales charge (by class)4 A: 5.00% B: 4.00% C: 1.00% Income Dividend (pay date) A: $0.0140 (4/3/17) C: $0.0000 (n/a)

Expense ratio (gross/net)5 A: 1.96%/1.80% B: 2.71%/2.55% C: 2.71%/2.55% Capital Gain Dividend (pay date) A: $0.0000 (n/a) C: $0.0000 (n/a)


Total returns

30-Day SEC Yield1: 0.90% As of March 31, 2017

Conservative Strategy Fund2 Aggregate Average annual


Class A 2.39% 2.39% 4.63% 1.88% 3.51% 3.19% 4.10%

Class C 2.22% 2.22% 3.82% 1.11% 2.72% 2.86% 4.02%

With Sales Charge

Class A (5.00%) -2.73% -2.73% -0.57% 0.14% 2.45% 2.66% 3.66%

Class C (1.00%) 1.22% 1.22% 2.82% 1.11% 2.72% 2.86% 4.02%

MSCI ACWI Index3 7.05% 7.05% 15.69% 5.65% 8.97% 4.56% 6.63%

S&P 500 Index3 6.07% 6.07% 17.17% 10.37% 13.30% 7.51% 8.08%

MSCI EAFE Index3 7.39% 7.39% 12.25% 0.96% 6.32% 1.53% 4.69%




8


Conservative Strategy Fund


Passive 13.7%

















iShares 20+ Year Treasury Bond 2.1%






SPDR DJ Global 5.0%

CashCash 2.0%



DC

B

AA. Global Equity 22.4%B. Fixed Income 70.6%C. Alternatives 5.0%D. Cash 2.0%


SPDR Bloomberg Barclays Inter ETF 16.5%iShares Iboxx Investment Grade Bond 15.6%Columbia High Yield 11.4%Vanguard 500 Index 6.9%iShares Barclays 3-7 Year 6.4%HSBC Emerging Markets Local Debt 5.5%iShares 1-3 Year 5.4%SPDR DJ Global 5.0%iShares Core MSCI EAFE 4.5%HSBC Emerging Markets Debt 4.4%

The portfolio summary information is subject to change without notice.1 This yield is based on a 30-day period and is computed by dividing the net investment income per share earned during the period by the maximum offering

price per share on the last day of the period. The SEC 30-Day Yields reflects a reduction in the Fund’s fees. Past performance is no guarantee of future results.

2 Certain returns shown include monies received by one or more of the Portfolios, in which the Fund invests, in respect of one-time class action settlements. As a result, the Fund’s total returns for those periods were higher than they would have been had the Portfolio(s) not received the payments.

3 Inception performance calculated from February 23, 2005.4 The sales charge for Class A Shares represents the maximum sales charge. Sales charges for Class B and Class C Shares may be assessed on redemp-

tions. The exact amount of these charges, if any, depends on the amount of time the shares have been held by the investor. See the Prospectus for more information.

5 Reflects the expense ratio as reported in the prospectus dated February 28, 2017. HSBC Global Asset Management (USA) Inc., the Fund’s investment adviser has entered into a contractual expense limitation agreement with the Fund under which it will limit total expenses of the Fund (excluding interest, tax, brokerage commissions, extraordinary expenses and estimated indirect expenses attributable to the Fund’s investments in investment companies other than the HSBC Opportunity Portfolio) to an annual rate of 1.50%, 2.25% and 2.25% for the Class A Shares, Class B Shares and Class C Shares, respectively. The expense limitation agreement is effective until March 1, 2018.

9


Income Strategy FundPortfolio objective

The investment objective of the Income Strategy Fund is to provide current income. The Fund’s secondary objective is to provide long-term growth of capital.


The performance above reflects any fee waivers that have been in effect during the applicable periods as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2017 through March 1, 2018.



Fund details


Inception date March 20, 2012 Total number of holdings† 20

Ticker (by class) A: HINAX B: HINBX C: HINCX Total net assets (all fund classes) $870,888

CUSIP (by class) A: 44330V753 B: 44330V746 C: 44330V738 Income Dividend (pay date) A: $0.0111 (4/3/17)

C: $0.0047 (4/3/17)Sales charge (by class)1 A: 4.75% B: 4.00% C: 1.00%

Capital Gain Dividend (pay date) A: $0.0000 (n/a)

C: $0.0000 (n/a)Expense ratio (gross/net)2 A: 13.65%/1.77% B: 14.40%/2.52% C: 14.40%/2.52%

Annual management charge 0.25%


Total returns


Income Strategy Fund Aggregate Average annual

Without Sales Charge 3 Month YTD 1 Year 3 Years 5 Years Inception

Class A 2.22% 2.22% 3.58% 1.88% 2.81% 2.90%

Class C 1.94% 1.94% 2.83% 1.09% 2.04% 2.12%

With Sales Charge

Class A (4.75%) -2.64% -2.64% -1.36% 0.24% 1.82% 1.90%

Class C (1.00%) 0.94% 0.94% 1.83% 1.09% 2.04% 2.12%

MSCI ACWI Index 7.05% 7.05% 15.69% 5.65% 8.97% 8.86%

S&P 500 Index 6.07% 6.07% 17.17% 10.37% 13.30% 13.28%

MSCI EAFE Index 7.39% 7.39% 12.25% 0.96% 6.32% 6.14%

Bloomberg Barclays U.S. Aggregate Bond Index 0.82% 0.82% 0.44% 2.68% 2.34% 2.45%

BofA Merrill Lynch U.S. High Yield Master II Index 2.71% 2.71% 16.88% 4.62% 6.85% 6.82%

Citigroup U.S. Domestic 3-Month T-Bill 0.12% 0.12% 0.34% 0.15% 0.11% 0.11%

10


Income Strategy Fund


DC

B

A


iShares Barclays 3-7 Year Treasury 16.9%iShares 1-3 Year 14.2%Columbia High Yield 11.1%SPDR Bloomberg Barclays Inter ETF 7.7%iShares Iboxx Investment Grade Bond 6.6%HSBC Emerging Markets Local Debt 5.5%iShares 20+ Year Treasury Bond 5.5%Vanguard 500 Index 5.4%iShares 7-10 Year 4.9%iShares Core MSCI EAFE 3.7%

The portfolio summary information is subject to change without notice.1 The sales charge for Class A Shares represents the maximum sales charge. Sales charges for Class B and Class C Shares may be assessed on redemptions.

The exact amount of these charges, if any, depends on the amount of time the shares have been held by the investor. See the Prospectus for more information. 2 Reflects the expense ratio as reported in the prospectus dated February 28, 2017. HSBC Global Asset Management (USA) Inc., the Fund’s investment

adviser has entered into a contractual expense limitation agreement with the Fund under which it will limit total expenses of the Fund (excluding interest, tax, brokerage commissions, extraordinary expenses and estimated indirect expenses attributable to the Fund’s investments in investment companies other than the HSBC Opportunity Portfolio) to an annual rate of 1.50%, 2.25% and 2.25% for the Class A Shares, Class B Shares and Class C Shares, respectively. The expense limitation agreement is effective until March 1, 2018.



Passive 11.0%













iShares J.P. Morgan Emerging Market Bond 0.1%




iShares 20+ Year Treasury Bond 5.5%






SPDR DJ Global 2.0%

CashCash 2.3%


11

Important information

This document is for information only and does not constitute investment advice, a solicitation or a recommendation to buy, sell or subscribe to any investment. It is not intended to provide and should not be relied upon for accounting, legal or tax advice. HSBC Global Asset Management has based this material on information obtained from sources it believes to be reliable but which it has not independently verified. HSBC Global Asset Management and HSBC Group accept no responsibility as to its accuracy or completeness. The views expressed were held at the time of preparation and are subject to change without notice. Forecasts, projections or targets are indicative only and are not guaranteed in any way. HSBC Global Asset Management accepts no liability for any failure to meet such forecasts, projections or targets.

Investment risks: There is no assurance that a portfolio will achieve its investment objective or will work under all market conditions. The value of investments may go down as well as up and you may not get back the amount originally invested. Portfolios may be subject to certain additional risks, which should be considered carefully along with their investment objectives and fees. Equity investments fluctuate in value based on changes to an individual company’s financial condition and overall market conditions. Investing in mid and small capitalization stocks involves greater risks than investing in larger companies. Smaller companies may have a limited number of products, be more difficult to buy and sell, subject to greater business and competitive risks and more sensitive to market changes than larger capitalization companies. Fixed income is subject to credit and interest rate risk. Credit risk refers to the ability of an issuer to make timely payments of interest and principal. Interest rate risk refers to fluctuations in the value of a fixed income security that result from changes in the general level of interest rates. In a declining interest rate environment, a portfolio may generate less income. In a rising interest-rate environment, bond prices fall. Investments in high yield securities (commonly referred to as “junk bonds”) are often considered speculative investments and have significantly higher credit risk than investment grade securities. The prices of high yield securities, which may be less liquid than higher rated securities, may be more volatile and more vulnerable to adverse market, economic or political conditions. Investments in foreign markets involve risks such as currency rate fluctuations, potential differences in accounting and taxation policies, as well as possible political, economic, and market risks. These risks are heightened for investments in emerging markets which are also subject to greater illiquidity and volatility than developed foreign markets. Real Estate investments are subject to many of the risks associated with direct real estate ownership, such as changes in economic conditions, credit risk, property taxes, zoning laws, and interest rate fluctuations. Exchange Traded Funds (ETFs) are subject to the risks of the underlying securities that they are designed to track. Low liquidity levels in an ETF can result in higher volatility than its underlying securities. ETFs may also have management fees that increase their costs versus owning its underlying securities directly. Risk is inherent in all investing. You could lose money by investing in the Money Market Fund (‘MM Fund’). Although the MM Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the MM Fund is not a deposit of HSBC Bank USA, N.A. and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The MM Fund’s sponsor has no legal obligation to provide financial support to the MM Fund, and you should not expect that the sponsor will provide financial support to the MM Fund at any time.

HSBC Global Asset Management is the marketing name for the asset management businesses of HSBC Holdings Plc. HSBC Global Asset Management (USA) Inc. is an investment adviser registered with the US Securities and Exchange Commission. HSBC Global Asset Management (USA) Inc. serves as the investment adviser to the HSBC Funds. Foreside Distribution Services, L.P., member FINRA, is the distributor of the HSBC Funds and is not affiliated with the adviser. HSBC Securities (USA) Inc., member NYSE, FINRA and SIPC, is a sub-distributor of the HSBC Funds. Affiliates of HSBC Global Asset Management (USA) Inc. may receive fees for providing various services to the funds.

Investors should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The prospectus contains this and other important information about the investment company. For clients of HSBC Securities (USA) Inc., please call 1-888-525-5757 for more information. For other investors and prospective investors, please call the Funds directly at 1-800-782-8183 or visit our website at https://investorfunds.us.hsbc.com/default.fs Investors should read the prospectus carefully before investing or sending money.

Investment products are offered by HSI, member NYSE/FINRA/SIPC. HSI is an affiliate of HSBC Bank USA NA. Investment products: Are not a deposit or other obligation of the bank or any of its affiliates; not FDIC insured or insured by any federal government agency of the United States; not guaranteed by the bank or any of its affiliates; and are subject to investment risk, including possible loss of principal invested.

US persons (both entities and individuals) are subject to US taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their US and non-US accounts. The Foreign Account Tax Compliance Act (FATCA) is a US law designed to prevent the use of non-US accounts or non-US entities to avoid US taxation of income and assets. To meet this objective, FATCA imposes on US and non-US entities certain documentation, due diligence, withholding and reporting requirements with respect to accounts and certain payments. Investors should consult their independent tax advisors about investment tax implications.

The contents of this document are confidential and may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose without prior written permission.

© Copyright 2017. HSBC Global Asset Management (USA) Inc. All rights reserved.

Index definitions

An index measures the market prices of a specific group of securities in a particular market or market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, the performance would be lower. All Index returns are shown Gross USD.

• MSCI ACWI (All Country World Index) Index is a market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world.

• S&P 500 Index is a widely regarded index used as a gauge of the U.S. equities market. It includes 500 leading companies in leading industries of the U.S. economy.

• Morgan Stanley Capital International Europe Australasia and Far East Index (“MSCI EAFE”) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. The MSCI EAFE Index consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

• Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities. MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS.

• BofA Merrill Lynch U.S. High Yield Master II Index is a broad-based index that measures the performance of the broad high-yield market.

• The Citigroup U.S. Domestic 3-Month T-Bill is an index that is comprised of equal dollar amounts of 3-month treasury bills purchased at the beginning of each of three consecutive months. As each bill matures, all proceeds are rolled over and reinvested in a new 3-month treasury bill. The income used to calculate the monthly return is derived from subtracting the original amount invested from the maturity value. The yield curve average is the basis for calculating the return on the Index. The Index is rebalanced monthly by market capitalization.

FS-WSMTH-0317 04/17 CA# 20170228 - 143728 17-02-76

https://investorfunds.us.hsbc.com/default.fs

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HSBC World Selection Funds · PDF fileHSBC World Selection ... Class A and C Shares Aggressive...

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