HSBC Global Funds ICAV - Global Aggregate Bond ESG UCITS ETF CH

The Fund aims to provide regular income and capital growth. Investment Policy: The Fund tracks as closely as possible the performance of the Bloomberg MSCI Global Aggregate SRI Carbon ESG-Weighted Select Index (the Index), while minimising the tracking error between the Fund’s performance and that of the Index, while promoting environmental, social and governance (ESG) characteristics within the meaning of Article 8 of SFDR. The Index has been designated as the Fund’s reference benchmark under Article 8 of SFDR . The Index measures the performance of global investment grade debt from twentyeight local currency markets, across three groups of bonds; which are government bonds, credit and securitised. The currency of the Index is US Dollar (USD) and returns are hedged to that currency. The Index seeks to achieve a reduction in carbon emissions and an improvement of the MSCI ESG rating against that of the Bloomberg Global Aggregate Index (the Parent Index) through the government and credit buckets of the index. The Government bucket includes investment grade, fixed rate, taxable securities issued by treasury issuers from both developed and emerging markets issuers and uses a ‘market size aware’ ESG tilting approach to tilt country allocations above or below their market value weights on a monthly basis. The credit bucket of the Index removes securities based on sustainability exclusionary criteria on a monthly basis, applying the following business involvement screens, which includes but is not limited to: non-compliance with UN Global Compact Principles and a red MSCI ESG controversies score. The index applies a screen using MSCI ESG ratings, excluding any constituent with the following: issuers with an MSCI ESG Rating of lower than BB, ESG Pillar Score of less than 2 and unrated issuers from sectors with ratings. Please refer the Fund’s Supplement for more details on MSCI ESG ratings, and the credit and Government buckets. The Fund will invest in government, government-related entities and supranational bonds (developed and emerging markets); corporate investment grade bonds, corporate emerging market bonds, asset backed securities (ABS), mortgage-backed securities (MBS), commercial mortgage backed securities (CMBS) and covered bonds all of which are Index constituents. The Fund is passively managed and utilises an investment technique called optimisation, which seeks to minimise the difference in return between the Fund and the Index by taking into account tracking error and trading costs when constructing a portfolio. The Fund will not necessarily invest in every constituent of the Index. The credit ratings of the Fund’s underlying investments may vary from time to time. However, their average credit rating is expected to be in-line with that of the Index. The Fund will not invest more than 10% of its assets in other funds, including HSBC funds. The Fund may also invest in derivatives for hedging and efficient portfolio management purposes (such as to manage risk and costs, or to generate additional capital or income). The Fund may enter into securities lending transactions for up to 30% of its assets. However, this is not expected to exceed 25%. The reference currency of the Fund is USD. The reference currency of this share class is USD. Income is reinvested. Authorised Participants only may deal in the Fund’s ETF Shares directly with the UCITS. The Fund’s ETF Shares are listed on one or more stock exchange(s). You may sell your investment on most working days. Recommendation: this Fund may not be appropriate for investors who plan to withdraw their money within a period of 3 years. This product is based overseas and is not subject to UK sustainable investment labelling and disclosure requirements.