HSBC ISLAMIC GLOBAL EQUITY INDEX FUND

The investment objective of the Fund is to achieve capital growth over the long term. The Fund will track the performance of the Dow Jones Islamic Market Titans 100 Index (the Index), while minimizing as far as possible the tracking error between the Fund's performance and the performance of the Index. In addition, the Fund shall comply with Shariah Principles (as defined below) as interpreted and laid down by the Shariah Committee (as defined below) and provided to the Directors and the Investment Manager. The Fund will seek to achieve its investment objective through investing in a diversified portfolio of equity securities which are Index constituents (as described under the heading entitled Index below). In addition to compliance with the UCITS Regulations and Central Bank requirements in the first instance, the investments of the Fund shall be in accordance with Islamic investment principles (i.e. Divine Islamic ‘law’ as revealed in (i) the Qur’an, which is the holy book of Islam, (ii) the sunna, or binding authority of the dicta and decisions of the Prophet Mohammed (peace be upon him), (iii) ijma, or ‘consensus’ of the community of Islamic scholars, and (iv) the qiyas, or analogical deductions and reasoning of the Islamic scholars) (collectively, Shariah Principles), as interpreted by the Shariah Committee, as defined below under the heading Shariah Compliance. Subject to permitted investments in unlisted securities and the other investments outlined in this policy, the Fund’s investments will be listed or traded on Regulated Markets, as defined in the Prospectus. The Fund may also invest in Shariah compliant ADRs and GDRs, which are certificates typically issued by a bank or trust company representing ownership of an underlying number of shares of a foreign company, as an alternative to directly purchasing the Index constituents in jurisdictions where it would not be possible or practical for the Fund to hold the Index constituents directly and to gain exposure to such Index constituents without directly investing in those securities. The Fund may invest up to 10% of its net assets in units or shares of UCITS and/or other CIS (including funds which are managed by or affiliated with the HSBC Group) whose investment policy is consistent with the investment policy of the Fund, including Shariah compliance, in accordance with the requirements of the Central Bank. There will be no double charging of the fees (i.e management fees of the UCITS and/or other CIS invested in) for such investments. The Fund is not permitted to invest in UCITS and CIS that are themselves tax transparent vehicles, for example common contractual funds in Ireland or their equivalent in other jurisdictions. The Fund may also, for ancillary liquidity purposes, hold cash and Shariah compliant cash equivalents. The Fund may use Shariah compliant foreign exchange forwards for hedging purposes, as set out under the heading Financial Derivative Instruments and Efficient Portfolio Management below. The Fund has been classified as an Article 6 Fund under Regulation (EU) 2019/2088 of the European Parliament (as may be amended from time to time). The manner in which Sustainability Risks are integrated in the investment decision making process is described in the section of the Prospectus entitled Integration of Sustainability Risks into Investment Decisions. The investments underlying this Fund do not take into account the EU criteria for environmentally sustainable economic activities. The Investment Manager will seek to fully replicate the Index. Replication refers to an investment strategy employed by index tracking funds to track an index. The Fund will seek to invest in all of the securities or equivalent instruments (for example ADR and GDRs) of the Index and in the same proportions in which they are included in the Index. However, there may be circumstances when it is not possible or practicable for the Fund to invest in all constituents of the Index. Such circumstances may include (but are not limited to): (i) a limited availability of the Index constituents; (ii) trading suspensions on constituents of the Index; (iii) cost inefficiencies; (iv) if the assets under management of the Fund are considered by the Investment Manager to be too small when measured against the weights and prices of the full Index constituents; or (v) where there are internal or regulatory driven trading restrictions that apply to the Fund or Investment Manager but not the Index.