HSBC Singapore Dollar Liquidity Fund

The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested.

• Market risk. Investment in securities is subject to general market, political and economic conditions and the value of securities fluctuate in response to the activities and performance results of the issuers of such securities.
• Credit risk. An issuer that the Sub-Fund is exposed to may default and not make payments on all securities potentially leading to the Sub-Fund incurring a loss of principal. An issuer suffering an adverse change in its financial condition could lower the credit quality of a security, leading to greater price volatility of the security. A lowering of the credit rating of a security may also offset the security's liquidity, making it more difficult to sell, which could adversely affect the Sub-Fund’s principal value.
• Liquidity risk. The Sub-Fund is not listed and you can redeem only on Dealing Days. There is no secondary market for the Sub-Fund. All redemption requests should be made to the Company or its authorised distributors.
• Interest rate risk. The Sub-Fund invests in bonds and other fixed income securities that may fall in value if interest rates change. Generally, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise. Longer term debt securities are usually more sensitive to interest rate changes.
• Counterparty and settlement risks. The Sub-Fund is exposed to counterparty risk. Counterparty risk is generally the risk that a counterparty may, for financial or other reasons, be unable to act in accordance with the terms and conditions of the contract and defaults. The result is a financial loss for the other party as it has to enter into substitute transactions at less favourable prices. Settlement risk occurs when a transaction is not completed as duly agreed between the parties. This may be due to an error or omission in the necessary settlement, clearing or registration processes or due to the lack of creditworthiness of one of the parties to the transaction.
• Negative yield risk. Market conditions, including but not limited to a reduction in interest rates may have a material impact on the return of the underlying investment of the Sub- Fund. It is possible that the Sub-Fund will generate an insufficient amount of income to pay its expenses and that it will not be able to pay dividends and may have a negative return. Such market conditions, together with any actions taken by financial institutions in response thereto (such as, for example, by way of reducing interest rates and therefore income payable on investments of the Sub-Fund), are outside the control of the Directors.
• Historical pricing risk. Shares are issued and realised on a historical pricing basis. The subscription and redemption prices of the Sub-Fund may not be reflective of the actual NAV as at the date of issue or realisation.

Refer to paragraph 9 of the Prospectus and paragraph 9 of Appendix 1 of the Prospectus for further information on risks of the product.

This document is provided upon request for information only.

The HSBC Singapore Dollar Liquidity Fund is a sub-fund of HSBC Funds VCC, an umbrella variable capital company incorporated in Singapore (the “Company"). The Manager and Sub-Manager of the Fund are HSBC Global Asset Management (Singapore) Limited and HSBC Global Asset Management (Hong Kong) Limited respectively. One of the Company’s Directors holds a managerial position in other HSBC Group entities which are appointed as the Company’s Fund Distributors. As disclosed in the Prospectus, the person may be put in a position where the duties to act in the best interests of the Company or HSBC Group entities may conflict. In dealing with any potential conflicts of interest, the person is obliged to act in the best interest of the Company and each Sub-Fund as a whole, pursuant to the duties imposed by the Act as well as any other duties mandated by common law. The person will ensure that the performance of the respective duties will not be impaired by any such involvement and that any such activities will be conducted on an arm’s length basis. If a conflict of interest does arise, the Company’s Directors will endeavour to ensure that it is resolved fairly and in the interest of the Shareholders.

The Company sourced the information in this document from the Manager and/or Sub-Manager and the document does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment nor should it be regarded as investment research. This document has not been reviewed by The Monetary Authority of Singapore (the “MAS”).

HSBC Funds VCC. Company Registration No. T24VC0092F

In Singapore, this document is issued by AMSG who is licensed by MAS to conduct Fund Management Regulated Activity in Singapore. AMSG is not licensed to carry out asset or fund management activities outside of Singapore.

HSBC Global Asset Management (Singapore) Limited (“AMSG”) has based this document on information obtained from sources it reasonably believes to be reliable. However, AMSG does not warrant, guarantee or represent, expressly or by implication, the accuracy, validity or completeness of such information. Any views and opinions expressed in this document are subject to change without notice. It does not have regard to the specific investment objectives, financial situation, or needs of any specific person. Investors and potential investors should not make any investment solely based on the information provided in this document and should read the offering documents (including the risk warnings), before investing. Investors should seek advice from an independent financial adviser. Investment involves risk. Past performance and any forecasts on the economy, stock or bond market, or economic trends are not indicative of future performance. The value of investments and income accruing to them, if any, may fall or rise and investor may not get back the original sum invested. Changes in rates of currency exchange may significantly affect the value of the investment.

HSBC Global Asset Management (Singapore) Limited
10 Marina Boulevard, Marina Bay Financial Centre, Tower 2, #48-01, Singapore 018983
Telephone: (65) 6658 2900 Facsimile: (65) 6225 4324
Website: https://www.assetmanagement.hsbc.com.sg/
Company Registration No. 198602036R