HSBC Global Asset Management (USA) Inc. will combine its Emerging Markets Local Debt Fund (local currency debt) with the Emerging Markets Debt Fund (hard currency debt) to create a single fund investing across the asset class effective today, April 10, 2017. We made this decision after careful consideration of diversification benefits and client feedback regarding a consolidated option for broader Emerging Markets Debt (EMD) exposure.

The Emerging Markets Debt Fund will now generally invest in U.S. dollar-denominated instruments and emerging markets local currency-denominated instruments including debt and currency.

A combined and therefore broadened exposure to the hard and local currency debt segments brings clear diversification benefits since each has varying reactions to market impacts, different drivers of return, and can capture different phases in the economic and business cycles.

The Fund leverages our long-standing expertise in both segments of EMD seeking to deliver the highest potential risk-adjusted returns afforded by the broadened range of opportunities.
               

Investment Products:

ARE NOT A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES
   

ARE NOT FDIC INSURED
   

ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
   

ARE NOT GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES
   

MAY LOSE VALUE
 

Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus , which contains this and other information about the fund, should be read carefully before investing.

Note to investors :

Hard currency EMD includes emerging markets bonds that have been issued in hard, or external, currencies—e.g., in the US dollar, Euro, British pound, or Japanese yen. About 75% of hard currency bonds are listed in US dollars. Local debt consists of bonds that are issued in the currency of an emerging markets country.

HSBC Global Asset Management (USA) Inc. serves as the investment adviser to the HSBC Funds. Foreside Distribution Services, L.P., member FINRA, is the distributor of the HSBC Funds and is not affiliated with the adviser. HSBC Securities (USA) Inc., member NYSE, FINRA and SIPC, is a sub-distributor of the HSBC Funds. Affiliates of HSBC Global Asset Management (USA) Inc. may receive fees for providing various services to the funds. HSBC Global Asset Management is a leading global asset management firm for institutional and retail investors around the world. As of December 31, 2016 it manages assets totaling over $413 billion.

HSBC Bank USA, National Association (HSBC Bank USA, N.A.), with total assets of US $178.7 billion as of 31 December 2016 (US GAAP), serves 2.4 million customers through retail banking and wealth management, commercial banking, private banking, asset management, and global banking and markets segments. It operates more than 230 bank branches throughout the United States. There are over 145 in New York as well as branches in: California; Connecticut; Delaware; Washington, D.C.; Florida; Maryland; New Jersey; Pennsylvania; Virginia; and Washington. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., an indirect, wholly-owned subsidiary of HSBC North America Holdings Inc. HSBC Bank USA, N.A. is a member of the FDIC.

Investment risks :

There is no assurance that a fund will achieve its investment objective or will work under all market conditions. The value of investments may go down as well as up and you may not get back the amount originally invested. Funds may be subject to certain additional risks, which should be considered carefully along with their investment objectives and fees. Past performance is no guarantee of future results. Fixed income is subject to credit and interest rate risk. Credit risk refers to the ability of an issuer to make timely payments of interest and principal. Interest rate risk refers to fluctuations in the value of a fixed income security that result from changes in the general level of interest rates. In a declining interest rate environment, a portfolio may generate less income. In a rising interest-rate environment, bond prices fall. Foreign and emerging markets: Investments in foreign markets involve risks such as currency rate fluctuations, potential differences in accounting and taxation policies, as well as possible political, economic, and market risks. These risks are heightened for investments in emerging markets which are also subject to greater illiquidity and volatility than developed foreign markets. Derivatives can be illiquid, may disproportionately increase losses and may have a potentially large negative impact on performance.

Copyright © 2017. HSBC Global Asset Management (USA) Inc.

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