He continued: “The unique nature of this market is enticing to investors wishing to geographically diversify their risk while also gaining exposure to the world’s second largest economy and its currency. The HSBC RMB Fixed Income Fund brings HSBC Global Asset Management’s experience and expertise in managing Asian fixed income to US investors in a straightforward way.”HSBC Global Asset Management is at the forefront of emerging markets investing, with more than US$140 billion 1 in emerging markets assets under management. The HSBC RMB Fixed Income Fund trades in A shares (HRMBX), I shares (HRMRX) and S shares (HRMSX). For more information, please go to www.emfunds.us.hsbc.com.
|Media inquiries to Neil Brazil at firstname.lastname@example.org or 847-208-4319|
|Note to editors:|
|1Data as of 31 March 2012.|
|2 Data as of 31 March 2012. US dollar figure is calculated at the conversion rate of 1 CNY = 0.157107 USD as of 4 June 2012.|
HSBC Holdings plcHSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 7,200 offices in over 80 countries and territories in Europe, the Asia-Pacific region, North and Latin America, the Middle East and Africa. With assets of US$2,556bn at 31 December 2011, HSBC is one of the world’s largest banking and financial services organizations Investment risks There are risks associated with investing in a fund that invests in securities of foreign countries, such as erratic market conditions, economic and political instabilities and fluctuations in currency exchanges. Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer term issues and in environments of rising interest rates. Investments in the fund are subject to possible loss due to the financial failure of underlying securities and their inability to meet their client obligations. Prices of securities in emerging markets can fluctuate more significantly than the prices of companies in more developed countries. Securities of emerging market issuers generally have more risk than securities issued by issuers in more developed markets. The less developed the country, the greater affect the risks may have in an investment, and as a result, an investment may exhibit a higher degree of volatility than either the general domestic securities market or the securities markets of developed foreign countries. Global economic volatility may impact the RMB fixed income market. However, RMB Fixed Income is not highly correlated to developed markets fixed income and as such can provide added diversification benefits. Investing in RMB-denominated debt instruments that may be issued by issuers located in Hong Kong and China or multi-national issuers with subsidiaries in Hong Kong or China, may involve special risks. In this regard, the Fund may be exposed to risks associated with mainland China, even though Hong Kong has a separate political and legal system. Risk relating to Hong Kong and mainland China include currency risk, political and economic risk. It is difficult for investors located outside of China to directly access debt instruments in mainland China because of investment and trading restrictions. For this reason, the Fund has to obtain exposure to RMB and RMB-denominated debt instruments by making investments outside of China, and generally in Hong Kong. These limitations and restrictions on access to the CNY market may impact the availability, liquidity, and pricing of investments designed to provide investors with exposure to Chinese markets and RMB.
RMB-denominated debt instrument issuance in Hong Kong is subject to Hong Kong laws and regulations. The Chinese government currently views Hong Kong as one of the key offshore RMB-denominated debt instrument centers and has established a cooperative relationship with Hong Kong’s local government to develop the RMB-denominated debt instrument market. There can be no assurance that the Chinese government will continue to encourage issuance of RMB-denominated debt instruments outside of mainland China and any change in the Chinese government’s policy or the regulatory regime governing the issuance of RMB-denominated debt instruments in Hong Kong may adversely affect the Fund. Because the Fund concentrates its investments in China, the Fund’s performance is expected to be closely tied to social, political, and economic conditions within China and to be more volatile than the performance of more geographically diversified funds.The Funds may use derivatives in connection with its investment strategies to hedge and manage risk and to increase its return. Derivatives may be riskier than other types of investments because they may be more sensitive to changes in economic or market conditions than other types of investments and could result in losses that significantly exceed each Fund’s original investment. NOT FDIC INSURED/NO BANK GUARANTEE/MAY LOSE VALUE Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus contains this and other important information about the investment company. For clients of HSBC Securities (USA) Inc., please call 1-888-525-5757 for more information. For other investors and prospective investors, please call the Funds directly at 1-800-782-8183 or visit our website at www.emfunds.us.hsbc.com . Investors should read the prospectus carefully before investing or sending money. Copyright © 2012. HSBC Global Asset Management (USA) Inc.