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

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 a number of local currency markets, across three groups: Sub-sector 1: Treasuries, Sovereigns and Local Authorities; Sub-sector 2:Corporates, Agencies, Supranational and Covered bonds. The currency of the Index is US Dollar (USD) and returns are hedged to that currency. The Sub-sector 1 bucket includes investment grade, fixed rate, securities issued by treasury, sovereign, and local authority 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 Sub-sector 2 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: tobacco, controversial and conventional weapons, fossil fuels non-compliance with UN Global Compact Principles and MSCI controversies score. The index then applies a screen using MSCI ESG ratings, excluding any constituent with the following: issuers with an MSCI ESG Rating of lower than BB and ESG Pillar Score of less than 2. Please refer the Fund’s Supplement for more details on MSCI ESG ratings, and the Sub-sector buckets.