HSBC Sterling Liquidity Fund

To provide investors with security of capital and daily liquidity together with an investment return which is comparable to normal Sterling denominated money market interest rates. Investment Policy: To achieve its objective, the HSBC Sterling Liquidity Fund intends to invest in a diversified portfolio of short-term securities, instruments and obligations which are of high quality at the time of purchase and are eligible for investment under the Money Market Fund Regulation and which meet the following criteria: Maturity: The HSBC Sterling Liquidity Fund, which is a Low Volatility NAV Money Market Fund, will invest in fixed rate instruments which have a maximum maturity of 397 days. The HSBC Sterling Liquidity Fund may also invest in floating rate notes and/or variable rate notes which have a maximum maturity of 397 days. The weighted average portfolio maturity of the HSBC Sterling Liquidity Fund will not exceed 60 days. The weighted average portfolio life of the HSBC Sterling Liquidity Fund will not exceed 120 days. For the purposes of calculating the weighted average portfolio maturity, floating rate notes will be deemed to mature on the next coupon fixing date. Credit Quality: The HSBC Sterling Liquidity Fund proposes to invest in short-term securities, instruments and obligations which at the time of purchase are of high quality and have a favorable credit assessment under the Company’s credit rating assessment procedure. Such investments will typically also have a rating of at least A-1 or P-1 (or its equivalent) from a recognized credit rating agency such as Standard & Poor’s or Moody’s. Currency: The HSBC Sterling Liquidity Fund may invest only in securities denominated in Sterling or that are fully hedged back into Sterling. Permitted Investments: The HSBC Sterling Liquidity Fund may invest in short-term securities, instruments and obligations such as, but not limited to, certificates of deposit (CDs), commercial paper, medium term notes (MTNs), variable rate notes (VRNs), floating rate notes (FRNs), bankers acceptances, government bonds, treasury bills, Eurobonds, asset backed securities and corporate bonds which the Investment Manager considers to be of high credit quality at the time of purchase and which are consistent with the investment objective of the HSBC Sterling Liquidity Fund and reverse repurchase agreements. The Investments will be listed or traded on a Recognized Market. The HSBC Sterling Liquidity Fund may also invest in financial derivative instruments for the purposes of hedging interest rate or currency risk. The HSBC Sterling Liquidity Fund may enter into repurchase agreements for liquidity management purposes.