HSBC Global Short Duration Bond

The sub-fund aims to provide long term total return by investing in a portfolio of bonds with an average duration expected to be between 6 months and 3 years, while promoting ESG characteristics within the meaning of Article 8 of SFDR.The sub-fund aims to do this with a higher ESG rating than the Bloomberg Global Aggregate 1-3 Years Hedged USD (the “Reference Benchmark”), calculated as a weighted average of the ESG ratings of the issuers of the sub-fund’s investments, versus the weighted average of the ESG ratings of the Reference Benchmark constituents.The weighted averages of the ESG ratings for both the sub-fund and Reference Benchmark will be calculated at sub-fund and asset class level, which enables the sub-fund’s ESG performance to be evaluated at sub-fund or asset class level. Given the sub-fund’s active asset class weightings, it is possible for the sub-fund to have higher ESG ratings in each of its asset classes, while not necessarily having a higher ESG rating than the Reference Benchmark at sub-fund level.Asset classes may include but are not limited to developed markets sovereigns, developed markets investment grade corporate securities, developed markets high yield corporate securities, Emerging Markets sovereigns and Emerging Markets corporate securities.The sub-fund invests in normal market conditions a minimum of 90% of its net assets, and from 14 October 2022 70%, in Investment Grade and Non-Investment Grade fixed income and other similar securities which are either issued or guaranteed by governments, government agencies and supranational bodies of developed markets or Emerging Markets or by companies which are domiciled in, based in, or carry out the larger part of their business in, developed or Emerging Markets.The sub-fund may invest up to 20% of its net assets in Non-Investment Grade rated fixed income securities. The sub-fund will not invest more than 10% of its net assets in securities issued by or guaranteed by any single sovereign issuer with a credit rating below Investment Grade.The sub-fund includes the identification and analysis of an issuer’s ESG credentials (“ESG Credentials”) as an integral part of the investment decision making process to reduce risk and enhance returns.ESG Credentials may include, but are not limited to: environmental and social factors, including but not limited to physical risks of climate change and human capital management, that may have a material impact on a security issuer’s financial performance and valuation corporate governance practices that protect minority investor interests and promote long term sustainable value creation.ESG Credentials are proprietary to HSBC, subject to ongoing research and may change over time as new criteria are identified. Notwithstanding the Excluded Activities as detailed below, the nclusion of an issuer in the sub-fund’s investment universe is at the discretion of the Investment Adviser. Issuers with improving ESG Credentials may be included when their credentials are still limited.From 14 October 2022, the sub-fund will not invest in bonds issued by issuers with specified involvement in specific excluded activities (“Excluded Activities”). Excluded Activities and specified involvement are proprietary to HSBC and include, but are not limited to:  Issuers involved in the production of controversial weapons or their key components. Controversial weapons include but are not limited to anti-personnel mines, depleted uranium weapons and white hosphorous when used for military purposes. This exclusion is in addition to the banned weapons policy as detailed in Appendix 3, sub-section iv, of this prospectus.  Issuers involved in the production of tobacco. Issuers with more than 10% revenue generated from thermal coal extraction and do not have a clearly defined, credible plan to reduce exposure to below 10%.  Issuers with more than 10% revenue generated from coal-fired power generation and do not have a clearly defined, credible plan to reduce exposure to below 10%.The sub-fund conducts enhanced due diligence on bond issuers that are considered to be non-compliant with the UN Global Compact Principles, or are considered to be high risk as determined by the HSBC’s proprietary ESG ratings.ESG Credentials, Excluded Activities and the need for enhanced due diligence may be identified and analysed by using, but not exclusively, HSBC’s proprietary ESG Materiality Framework and ratings, undamental qualitative research and corporate engagement. The Investment Adviser may rely on expertise, research and information provided by well-established financial data providers.More information on HSBC Asset Management’s responsible investing policies is available at www.assetmanagement.hsbc.com/about-us/responsible-investing/policies.Investment in onshore Chinese fixed income securities include, but are not limited to, onshore fixed income securities denominated in RMB, issued within the People’s Republic of China (“PRC”) and traded on the China Interbank Bond Market (“CIBM”). The sub-fund may invest in the CIBM either through Bond Connect and/or the CIBM Initiative. The sub-fund may invest up to 10% of its net assets in onshore Chinese bonds issued by, amongst other, municipal and local governments, companies and policy banks.The sub-fund may invest in fixed income securities issued in Emerging Markets to a level below 30% of its net assets.The sub-fund may invest in Asset Backed Securities (“ABS”) and Mortgage Backed Securities (“MBS”) to a level below 20% of its net assets, and from 14 October 2022, below 30% of its net assets.The sub-fund may invest up to 10% of its net assets in contingent convertible securities, however this is not expected to exceed 5%.The sub-fund may invest up to 10% of its net assets in fixed income and other similar securities which have a maturity longer than five years.The sub-fund may invest up to 10% of its net assets in units or shares of UCITS and/or other Eligible UCIs (including other sub-funds of HSBC Global Investment Funds).The sub-fund may also invest in financial derivative instruments including, but not limited to, futures, options, swaps (such as credit default swaps), and forward currency contracts. These may be exchange-traded or over-the-counter contracts. Financial derivative instruments may also be embedded in other instruments in which the sub-fund may invest (for example ABS). The sub-fund intends to use financial derivative instruments primarily for efficient portfolio management purposes including, but not limited to, hedging. Such instruments may also be used, but not extensively, for investment purposes.The sub-fund can enter into Securities Lending transactions for up to 29% of its net assets, however, it is expected that this will