HSBC RadiantESG U.S. Smaller Companies Fund - Class A (HSOAX)

Overview

The fund operates with a clear mission to fulfill its investment objective by channeling all of its resources into the Portfolio, which shares the same investment goals. It is designed primarily to invest minimally 80% of its net assets into U.S. equity securities of small and mid-cap companies. These companies are carefully chosen based on the Subadviser's strict fundamental and ESG (Environmental, Social, and Governance) criteria. In terms of market capitalization, small- and mid-cap companies are those that fall within the range covered by the Bloomberg US Growth Total Return Index, ensuring a specific focus on growth potentials within the United States market.

Products and Services

The fund emphasizes two main areas of investment, each defined by specific criteria and goals:

• U.S. Equity Securities of Small and Mid-Cap Companies: The fund primarily targets investments in the equity securities of small and mid-cap American companies. These companies are selected based on their market capitalizations, which must align with the range represented by the Bloomberg US Growth Total Return Index. This strategic focus is intended to capture the growth and innovation within this segment of the market, potentially offering higher returns due to their growth prospects compared to larger, more established companies.
• ESG Compliance: In addition to fundamental financial criteria, the fund places a strong emphasis on ESG criteria. This means investments are screened not only for their financial potential but also for their practices in environmental sustainability, social responsibility, and governance. This dual-focus approach allows the fund to invest in companies that are not just financially viable but also responsible citizens in the global community, aligning financial goals with ethical considerations and sustainability.