SG-SE HSBC Global Investment Funds - European Equity

1 SG-SEShare Class PDPDLU004747372231/08 TimeEUR 1, SizeHSBPEUI LXHSBC Global Investment Funds - European Equity31 Aug 2020 Investment ObjectiveThe fund seeks long-term total return (meaning capital growth and income) by investing primarily in shares (or securities that are similar to shares). These are shares issued by companies that have a registered office and official stock-market listing in StrategyThe fund holds a range of sectors and stocks, providing diversification. The fund can also invest up to 10% of its assets in Real Estate Investment Trusts (shares in property companies) and up to 10% of its assets in collective Investment schemes including other Funds of hsbc Global Investment Funds . There aren t restrictions on the market values (also known as market capitalisation) of the companies held in the fund .

2 Please see the Prospectus for a full description of the Investment objectives and derivative Objective and Strategy1 Result is annualised when calculation period is over one year. 2 Net of relevant prevailing sales charge on a single pricing (NAV) Class DetailsPast performance is not an indicator of future returns. The figures are calculated in the share class base currency, dividend reinvested. Source: hsbc Global Asset Management, data as at 31 August 2020 Risk DisclosureEUR 52,382,50317:00 LuxembourgDistribution TypeDistribution Frequency The fund 's unit value can go up as well as down, and any capital invested in the fund may be at risk. The value of investible securities can change over time due to a wide variety of factors, including but not limited to: political and economic news, government policy, changes in demographics, cultures and populations, natural or human-caused disasters etc.

3 Derivatives may be used by the fund , and these can behave unexpectedly. The pricing and volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of their underlying reference(s), instrument or asset. Investment Leverage occurs when the economic exposure is greater than the amount invested, such as when derivatives are used. A fund that employs leverage may experience greater gains and/or losses due to the amplification effect from a movement in the price of the reference source. Further information on the fund 's potential risks can be found in the Key Investor Information Document and Class Inception Date12 Nov 1993 Performance (%)YTD1M3M1Y3Y 5Y EUR (Net) V CompliantSubscription ModeCash / SRS (Supplementary Retirement Scheme) Since Inception Calendar Year Performance (%)20152016201720182019 Reference Benchmark EURNAV per ShareBloomberg TickerReference BenchmarkMSCI Europe NetManagerSamir Essafri Francois ChacunDealing FrequencyMin.

4 Initial InvestmentMax. Initial ChargeManagement FeeShare Class Base CurrencyReference BenchmarkNumber of Holdings ex Benchmark EUR (Net) Risk MeasuresPDReference Market Cap (EUR mil)41,60564,942 Information Performance CommentaryPerformanceEuropean Equity markets continued to rally in August helped by a flattening of the number of new COVID-19 cases globally. Global equities have now recouped all losses incurred during the virus-induced selloff, and the MSCI World Index reached a new all-time high on August 28th. Vaccine optimism remains healthy, economic data has surprised on the upside, and reported earnings have generally beaten low expectations. In this context, despite a highly volatile backdrop, and despite a challenging month for the Value factor the fund outperformed helped by a good Selection and a relevant Allocation.

5 In August, it was a classic risk-on rotation as cyclical sectors performed best, and the worst performing sectors were defensives, including Utilities, Health Care, and Telecom. In this context, sector allocation is positive, helped by our overweight Industrials which is a strong positive in August, likewise our overweight Financials logically worked very well over the month. Our underweight Consumer Staples and Healthcare also added in August. On the other hand, among detractors, we would mention Consumer Discretionary, we also suffered from our Telecoms stock selection is also positive over the month, driven by our core holdings in Financials and positives came from our exposure to Industrials notably with Deutsch Post which continues to recover sharply from its lows, thanks to structural tailwinds from e-commerce and improving cyclical indicators.

6 Within the space, Saint Gobain also continues to behave positively. We also particularly benefited from our overweight to Financials and especially Prudential which enjoyed a nice rebound in August, the company remains a strong conviction, Prudential s Asia business remaining a key attraction (despite the ongoing headwinds in certain markets). Prudential s profile gives exposure to a secular growth story across South East Asia and Greater China. Within the space, Barclays and ING also behaved well over the month, we continue to believe that the recent upturn in economic activity, plus the TLTRO auction, suggest some upside risks to consensus pre-provision earnings estimates. Valuations for the sector continue to look depressed, (versus history and relative). Within Materials, Heidelberg Cement is a strong positive thanks to solid and reassuring H1 numbers, H1 EBITDA coming in only slightly down despite the pressure on sales in Q2, while the expected landing for net debt for this year is likely to put the balance sheet into healthier territory.

7 Also, the investor day on Sept 16 should be an excellent opportunity to rebuild confidence. On the other hand, we suffered from profit taking on Philips and Fresenius Medical Care (HealthCare Equipment) and on KPN and Orange (Telecoms), we are also penalized by Casino and Heineken in the Consumer adjustments No major adjustments over the month. OutlookWe expect that the performance of European equities through the second half of 2020 will likely be dictated by two key considerations, the pace and shape of the Global macro recovery and the risk of a second wave. Uncertainties will remain about the spread of the virus and its impact on the speed and shape of the recovery, likewise, social distancing and the end of some temporary policy support are likely to hamper growth in the short run after a sharper than expected rebound in Q3.

8 But we remain optimistic in the medium run, as from early 2021, we see reasons to expect a re-acceleration of growth, including the likely distribution of a vaccine and fresh domestic stimulus. We see solid and meaningful pent-up demand in the following years. We believe that a backdrop of improving economic data at the start of a new cycle, continued strong monetary and fiscal policy support, and muted investor participation in the rally to date (cash levels are still high), ultimately implies a positive environment for stocks and especially under-owned European Equities. In this context, we see the fund as ideally positioned given our selective pro-value tilt (again valuation dispersion being near cycle highs). Value has experienced its worst decade ever for value & 2020 is accelerating the drop despite fiscal stimulus & oil rebound.

9 In the last 3 years, Value has given up 20 years of gains. We see room for a massive catch up at the start of a new cycle. We thus remain constructive and definitely stick to our selective pro-value tilt. Sector Allocation (%)Geographical Allocation (%)Top 10 Holdings (%)LocationSectorWeight (%)United KingdomConsumer PLCI ndex DisclaimerSource: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute Investment advice or a recommendation to make (or refrain from making) any kind of Investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction.

10 The MSCI information is provided on an as is basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the MSCI Parties ) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. ( )Source.