HSBC Global Investment Funds - Economic Scale US Equity AD (E2L0)

Overview

HSBC Global Investment Funds - Economic Scale US Equity AD is an actively managed equity fund operating from Luxembourg under the HSBC Global Investment Funds brand. This fund targets long-term capital growth and income by primarily investing a minimum of 90% of its assets in shares or share-like securities of U.S.-based companies or those conducting a significant portion of their business in the United States. The fund's investment strategy emphasizes economic scale, which is measured by each company's value added—essentially its contribution to the Gross National Product (GNP), determined by assessing the difference between outputs and inputs.

Managed by HSBC's dedicated Index and Systematic Equity Portfolio Management Team, the fund maintains a diverse portfolio exceeding 1,000 stocks, with an average market capitalization of approximately $410 billion. It also adheres to HSBC Asset Management's Responsible Investment Policies that exclude certain sectors and practices. The fund has the flexibility to allocate up to 10% of its assets to Real Estate Investment Trusts (REITs), bank deposits, money market instruments, or other funds, including HSBC products. To optimize portfolio efficiency, it actively employs derivatives. With a base currency in USD, offering daily dealing and annual distributions, this fund is instrumental in providing investors systematic exposure to the U.S. equity market while seeking diversified and value-oriented growth opportunities.

Products and Services

• Actively Managed Equity Fund: An investment vehicle focused on equity securities, managed continuously to adapt to market conditions, aiming for long-term growth and income through strategic asset allocation.
• Investment in U.S. Companies: The fund invests at least 90% of its assets in United States-based companies or those with substantial U.S. business operations, ensuring engagement with key growth sectors in the American economy.
• Economic Scale Investment Process: A unique approach where investments are selected based on their economic contribution measured by value added, aligning investment strategy with broader economic indicators.
• Diverse Portfolio Composition: The fund holds an extensive range of over 1,000 stocks, offering investors diversification and reduced risk while focusing on larger companies with significant market presence.
• Responsible Investment Policies: HSBC's commitment to socially responsible investing includes the exclusion of sectors deemed inconsistent with sustainable economic practices, ensuring ethical investment choices.
• Flexible Asset Allocation: Provision to allocate up to 10% of assets to various instruments like REITs and money market options, enhancing overall investment strategy and liquidity management.
• Use of Derivatives: The use of derivatives aims to ensure efficient portfolio management, allowing the fund to hedge risks and optimize returns in varying market environments.
• Daily Dealing and Currency Management: Investors benefit from the ability to buy or sell shares on a daily basis with transactions conducted in USD, providing convenience and liquidity.
• Annual Distributions: The fund distributes earnings on an annual basis, catering to investors looking for regular income alongside capital appreciation.