HSBC Portfolios · 2015-01-23 · HSBC Investment Funds (Luxembourg) S.A. (the “Management Company”) uses a risk management process that allows monitoring the risk of the portfolio

R.C.S. Luxembourg B 147 223 16, boulevard d’Avranches L-1160 Luxembourg Grand Duchy of Luxembourg

HSBC Portfolios Audited Annual Report for the year ended 31 July 2014

No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current Prospectus

accompanied by the latest annual and the most recent semi-annual report, if published thereafter.

Audited annual report for the year ended 31 July 2014

Table of Contents General Information 2

Directors’ Report 6

Report of the Réviseur d’Entreprises agréé 9

Statement of Net Assets 10

Statement of Operations 11

Statement of Changes in Net Assets 12

Statement of Changes in Shares Issued 13

Statistical Information 15

Notes to the Financial Statements 17

Schedules of Investments and Other Net Assets

HSBC Portfolios – World Selection 1 28





Fund Holiday Calendar for 2014 65

2

General Information

Directors

George Efthimiou (Chairman), Global Chief Operating Officer (Appointed as Chairman with effect from 9 July 2014) HSBC Global Asset Management Limited, 78 St James Street, London SW1A 1HL, United Kingdom

Dr. Michael Boehm, Chief Operating Officer HSBC Global Asset Management (Deutschland) GmbH Königsallee 21/23, 40212 Düsseldorf, Germany

Dean Lam, Managing Director HSBC Bank (Mauritius) Limited, 6th Floor, HSBC Centre, 18 CyberCity, Ebene, Mauritius

Eimear Cowhey, Independent Director (Appointed with effect from 9 July 2014) Resident in the Republic of Ireland

Peter Dew, Independent Director (Appointed with effect from 29 August 2014) Resident in the United Kingdom

Jean de Courrèges, Independent Director (Appointed with effect from 20 September 2013) Carne Global Financial Services Luxembourg S.à r.l., European Banking and Business Centre, 6B route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg

John Li, Independent Director (Appointed with effect from 20 September 2013) The Directors Office S.A., 19 rue de Bitbourg, L-1273 Luxembourg, Grand Duchy of Luxembourg

Didier Deleage, Chief Operating Officer (Resigned 30 May 2014) HSBC Global Asset Management (France), Immeuble Ile de France, 4, Place de la Pyramide, La Défense 9, 92800 Puteaux, France

Thies Clemenz, Chief Executive Officer (Resigned 19 September 2013) HSBC BANK ARMENIA CJSC Main Office, 66 Teryan Street, Yerevan 0009 Republic of Armenia

Edgar Ng, Director, Head of Business Support Asia Pacific (Resigned 19 September 2013) HSBC Global Asset Management (Hong Kong) Limited, HSBC Main Building, 1 Queen's Road Central, Hong Kong

David Silvester, Head of Product Governance and Regulation – Global Funds (Resigned 23 September 2014) HSBC Global Asset Management (UK) Limited, 78 St James Street, London SW1A 1HL, United Kingdom

Sylvie Vigneaux, Head of Regulatory and Wealth Engineering (Resigned 9 July 2014) HSBC Global Asset Management (France), Immeuble Ile de France, 4, Place de la Pyramide, La Défense 9, 92800 Puteaux, France

General Information (continued)

3

Registered Office

16, boulevard d’Avranches L-1160 Luxembourg Grand Duchy of Luxembourg

Administrator, Custodian, Corporate and Domiciliary Agent

HSBC Securities Services (Luxembourg) S.A.** 16, boulevard d’Avranches L-1160 Luxembourg Grand Duchy of Luxembourg

Paying Agent

HSBC Securities Services (Luxembourg) S.A.** 16, boulevard d’Avranches L-1160 Luxembourg Grand Duchy of Luxembourg

Registrar and Transfer Agent RBC Investor Services Bank S.A.* (Until 23 March 2014) 14, Porte de France L-4360 Esch-sur-Alzette Grand Duchy of Luxembourg

HSBC Securities Services (Luxembourg) S.A.** (Appointed with effect from 24 March 2014) 16, boulevard d’Avranches L-1160 Luxembourg Grand Duchy of Luxembourg

Management Company

HSBC Investment Funds (Luxembourg) S.A. 16, boulevard d'Avranches L-1160 Luxembourg Grand Duchy of Luxembourg

Réviseur d'Entreprises agréé KPMG Luxembourg S.à r.l. 9, Allée Scheffer L-2520 Luxembourg Grand Duchy of Luxembourg

Legal Advisers

Elvinger, Hoss & Prussen 2, Place Winston Churchill L-1340 Luxembourg Grand Duchy of Luxembourg

Investment Adviser

HSBC Global Asset Management (UK) Limited 78 St James's Street London SW1A 1EJ United Kingdom

*RBC Investor Services Limited, the holding company of RBC Investor Services Bank S.A., was put into liquidation on 5 September 2013. As a result of this liquidation and the transfer of the participation, RBC Investor Services Bank S.A. became 100% owned by Royal Bank Holding Inc., a 100% owned subsidiary of Royal Bank of Canada. There was no impact on the main operating entities, their subsidiaries or branches. ** With effect from close of business on 14th November 2014, these activities have been transferred to HSBC Bank plc, Luxembourg branch.


4

Distributors Global Distributor HSBC Investment Funds (Luxembourg) S.A. 16, boulevard d'Avranches L-1160 Luxembourg Grand Duchy of Luxembourg Austria and Eastern Europe Distributor HSBC Trinkaus & Burkhardt AG Königsallee 21/23 D-40212 Düsseldorf Germany

Continental Europe Distributor HSBC Global Asset Management (France) Immeuble Ile de France, 4, Place de la Pyramide, La Défense 9 92800 Puteaux France

Hong Kong Representative and Distributor HSBC Investment Funds (Hong Kong) Limited HSBC Main Building, 1 Queen's Road Central Hong Kong

Jersey Representative and Distributor HSBC Global Asset Management (International) Limited HSBC House, Esplanade, St Helier Jersey JE4 8WP Channel Islands

Middle East Distributor HSBC Bank Middle East Limited HSBC House, Esplanade, St Helier Jersey JE4 8UB Channel Islands

Singapore Representative and Distributor HSBC Global Asset Management (Singapore) Limited 21 Collyer Quay, #06-01 HSBC Building Singapore 049320 Singapore

United Kingdom Representative and Distributor HSBC Global Asset Management (UK) Limited 8 Canada Square London E14 5HQ United Kingdom


5

Note on the risk management

HSBC Investment Funds (Luxembourg) S.A. (the “Management Company”) uses a risk management process that allows monitoring the risk of

the portfolio positions and their share of the overall risk profile of the portfolios on the managed funds at any time. In accordance with the Law of

17 December 2010 and the applicable regulatory requirements of the Commission de Surveillance du Secteur Financier ("CSSF") the

Management Company reports to the CSSF on a regular basis on the risk management process. The Management Company assures, at the

basis of appropriate and reasonable methods, that the overall risk, associated with derivatives, does not exceed the net asset value of the

portfolio.

For HSBC Portfolios, the Management Company uses the "commitment approach" for the calculation of the global exposure. The "commitment

approach" is based on the positions of derivative financial instruments, converted into their corresponding underlying equivalents using the delta

approach. Netting and Hedging might be considered for derivative financial instruments and their underlying assets. The sum of these

underlying equivalents must not exceed the net asset value of the portfolio.

6

Directors’ Report

Directors’ Comments The Board of Directors present the Audited Annual Report for HSBC Portfolios (the “Company”) for the year ending 31 July 2014. The Fund The Company is a variable capital investment company, incorporated under the laws of the Grand Duchy of Luxembourg and is organized as an “umbrella” with a number of sub-funds, each of which has their own investment policies and restrictions. At present, the Company has issued shares in 5 sub-funds. During the financial year, total net assets of the Company increased from USD 2,063.95 million to USD 2,702.31 million at year end. The Company qualifies as an Undertaking for Collective Investments in Transferable Securities under Directive 2009/65/EC of 13 July 2009, as amended, and may therefore be offered for sale in European Union Member States, subject to registration in countries other than the Grand Duchy of Luxembourg. In addition, applications to register the Company and its sub-funds may be made in other countries. The Company and its sub funds are currently registered for offer and distribution in the Grand Duchy of Luxembourg and in the following jurisdictions: Bahrain, Brunei, France, Germany, Greece, Guernsey, Hong Kong, Isle of Man, Japan, Jersey, Jordan, Lebanon, Macau, Malta, Oman, Poland, Qatar, Singapore, United Arab Emirates, United Kingdom and Vietnam. Responsibility of the Directors The responsibility of the Directors of the Company is governed exclusively by Luxembourg law. With respect to these financial statements, the duties of the Directors are governed by general corporate law and the law of 19 December 2002 on, inter alia, the accounting and annual accounts of undertakings, as amended, and by the law of 17 December 2010 relating to undertakings for collective investments. Annual General Meeting The next Annual General Meeting of the Company will be held on 28 November 2014.

Market review Overview After months of keeping the market in thrall, in Q4 2013 the Federal Reserve (Fed) finally decided that the US economy had enough momentum to warrant a measured reduction in its asset purchase programme. Surprisingly, developed equity markets held up well, reacting with relative calm to the announcement and belying the market turmoil that had accompanied the first mention of ‘tapering’ back in May. The modest size of the proposed reduction, some stronger interest rate forward guidance and a strengthening economy – something that was notably absent back in May – all helped to underpin investor sentiment. Core government bonds – anticipating the start of a normalisation process for US monetary policy – declined in value, with the 10 year Treasury yield rising over 40 basis points in Q4 to reach the 3% mark by year-end. After what was an exceptionally strong year for risk assets in 2013, global equity markets made a rather inauspicious start into the New-Year, with a sharp sell-off in emerging market assets leaving sentiment badly shaken. The prospect of declining global liquidity as the Fed moved to begin tapering its asset purchases set a difficult backdrop as a number of idiosyncratic emerging market issues came to the fore; chiefly amongst these were softening growth in China and instability in South Africa, Argentina and Turkey. This led to a sharp depreciation in emerging market currencies which in turn prompted action from several emerging market central banks. In unexpected moves, the central banks of Turkey, India and South Africa all increased policy rates, whilst China, Russia and Argentina also took steps to address the alarming depreciation of their currencies. Emerging market equities finished the month of January firmly down, therefore, with events also weighing heavily on developed stock markets. Markets staged a sharp rebound in February, with most stock markets rallying strongly, before trading effectively sideways in March. In the end, however, Q1 represented something of a soft start to the year for equity markets, with developed markets up modestly – with the glaring exception of Japan – and emerging markets, in the aggregate, down. Core government bond yields declined over the quarter, reversing the trend higher that took place in the closing months of 2013. Despite the Fed beginning to taper its monthly asset purchases, government bonds benefitted from the heightened risk aversion of January’s sell-off and some soft, weather-affected US economic data. 10 year US Treasury yields fell away from the 3% level, therefore, declining 30 basis points in Q1.

7

Directors’ Report (continued) Market review (continued) Overview (continued) Global equities resumed their ascent higher in Q2 in the face of a number of notable headwinds, including a hugely disappointing final Q1 US GDP print (albeit caused by unseasonally poor weather), genuinely slower economic momentum in Europe and flashpoints of geopolitical risk in Iraq and Ukraine. The ongoing support of highly accommodative global monetary conditions was a clear factor in fuelling this risk appetite, further tapering from the Fed notwithstanding. Indeed, US policy makers remained resolutely dovish throughout Q2, despite an uptick in inflation and further improvement in the labour market; whilst the European Central Bank took steps to arrest persistent disinflation, including cutting its deposit rate to negative for the first time. The reporting period ended with most developed equity markets trending lower in July, due largely to weakness late in the month.

Funds

World Selection Portfolios 1-5 In August 2013, the first month of the reporting period, increasingly positive economic newsflow from the developed world was offset by concerns around an anticipated reduction in Federal Reserve bond purchases and the prospect of military intervention in Syria. As a result, all World Selection Portfolios declined in value over the month. Conversely, all World Selection portfolios posted strong returns in September. Investor sentiment improved considerably over the month with risk appetite benefitting from the US Federal Reserve’s surprise decision not to reduce the size of its asset purchase programme yet. Core government bond markets also benefitted, with the surprise decision not to ‘taper’ seeing yields fall back from recent highs. Prior to the decision, yields had been rising steadily. This healthy risk appetite continued into the month of October and was spurred on by a resolution of the US partial government shutdown and an end to the debt ceiling stalemate. At the close of the month, the Federal Reserve again opted to leave its asset purchase programme unchanged and further postpone the start of tapering, lifting sentiment even higher. As a result, the World Selection portfolios enjoyed another month of strong returns. World Selection performance was more mixed in November, however, with the lower risk portfolios posting marginally negative returns and the more adventurous portfolios flat to slightly positive. Developments in US monetary policy continued to hold sway over market sentiment. Core government bond yields rose, meaning prices fell. Emerging market assets struggled. Most developed equity markets did rise over the course of the month, however, helping to smooth performance and benefitting the higher risk, more adventurous World Selection portfolios in particular. In December the US Federal Reserve finally made the long awaited decision to start reducing its monthly asset purchases. Markets reacted calmly to the news, with most equity markets actually rising over the course of the month. Unsurprisingly, core government bonds yields moved higher. The World Selection portfolios posted positive returns for the month, closing out what was an exceptionally strong performance year for the higher risk portfolios in the range. All five World Selection portfolios registered a negative return for the first month of 2014. Following impressive risk asset performance in 2013, markets made a rather poor start to the year with an aggressive sell-off in emerging market assets and currencies leaving investor sentiment badly shaken. The US Federal Reserve decided to reduce its monthly asset purchase programme further. February was a very good month for World Selection. Developed market equities rebounded well after January’s acute sell-off, with emerging market assets and currencies – one of the main drivers of January’s weakness – also stabilising. Core government bonds posted modest positive returns for the month, with yields largely range bound. World Selection performance varied across the different risk profiles in March. Whilst portfolio 1 posted a marginally positive return and portfolio 2 was effectively flat, portfolios 3-5 registered negative returns. Developed stocks had a lacklustre month and were comfortably outperformed by emerging markets. The portfolios’ tactical preference for developed over emerging markets did not help performance, therefore. Core government bonds were effectively flat for the month, with 10 year US Treasury yields up slightly. All portfolios posted a positive return in April. Developed stocks rose modestly, outperforming emerging markets. 10 year US Treasury yields were again little changed, with core government bonds up marginally for the month. Riskier assets, such as equities, performed well over the course of May, with investor risk appetite gaining on generally positive macroeconomic data and an easing of geopolitical tension in Ukraine. Equities, emerging market assets and corporate bonds all posted good returns over the month, outperforming global developed market government bonds. This benefitted the portfolios’ performance given an ongoing preference for risk assets over bonds. Again, all five World Selection portfolios gained over the month.

8

Directors’ Report (continued) Funds (continued)

World Selection Portfolios 1-5 (continued) Global equities rose further in June, outperforming core government bonds. Japan led the performance of major equity markets whilst European equities underperformed, posting a negative return. In the aggregate, developed stock markets lagged emerging markets. Emerging market fixed income also had a good month, with emerging market bonds – both local and hard currency denominated – registering positive returns. For the third consecutive month, all World Selection portfolios posted positive returns. After a run of good performance, most major developed equity markets saw negative returns in July, due largely to weakness late in the month. A strengthening US economy, underscored by an impressive Q2 GDP data release, brought the timing of interest rate hikes back into question, whilst rising geopolitical tension also weighed on sentiment. Emerging markets, by contrast, continued to perform well, again outperforming developed stock markets in the aggregate. 10 year US Treasury yields were little changed. Global high yield bonds – a standout performer of the last two years – posted a negative return for the month. Over the reporting period as a whole, World Selection performance was strong, with the lowest risk portfolio – portfolio 1 – returning in excess of 5.5% (net of fees in USD) and the highest risk portfolio – portfolio 5 – returning over 12% (net of fees in USD).

10

Statement of Net Assets as at 31 July 2014

HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios

Notes Combined World Selection 1 World Selection 2 World Selection 3 World Selection 4 World Selection 5

USD USD USD USD USD USD

ASSETS

Investments in securities at cost 2,171,648,815 403,878,526 426,830,571 520,100,047 550,388,805 270,450,866

Unrealised appreciation / (depreciation) 18,495,601 2,069,645 4,486,555 8,584,313 4,061,381 (706,293)

Investments in securities at market value 3 b 2,190,144,416 405,948,171 431,317,126 528,684,360 554,450,186 269,744,573

OTHER ASSETS

Cash at bank 579,938,755 33,910,121 115,111,722 106,608,661 205,440,288 118,867,963

Amounts receivable on sale of Investments 52,449,057 2,921,437 25,910,487 17,965,436 5,644,742 6,955

Amounts receivable on subscriptions 16,317,848 2,754,039 4,237,025 4,428,071 3,662,601 1,236,112

Accounts receivable and accrued income 19,694,689 5,084,178 4,278,771 4,469,556 3,988,410 1,873,774

OTHER ASSETS 668,400,349 44,669,775 149,538,005 133,471,724 218,736,041 121,984,804

TOTAL ASSETS 2,858,544,765 450,617,946 580,855,131 662,156,084 773,186,227 391,729,377

LIABILITIES

Unrealised loss on forward foreign exchange contracts 3 h, 6 9,427,924 734,884 1,291,370 2,114,130 3,765,328 1,522,212

Bank overdraft 96,830,318 921,060 59,478,631 20,105,809 13,949,386 2,375,432

Amounts payable on purchase of Investments 36,040,494 2,371,404 25,650,070 6,301,271 1,717,749 -

Amounts payable on redemptions 9,219,911 2,129,769 1,951,542 2,428,728 733,054 1,976,818

Management fees payable 2,631,452 379,007 412,675 637,187 764,920 437,663

Accounts payable and accrued expenses 2,080,683 346,450 472,429 447,308 537,903 276,593

TOTAL LIABILITIES 156,230,782 6,882,574 89,256,717 32,034,433 21,468,340 6,588,718

NET ASSETS 2,702,313,983 443,735,372 491,598,414 630,121,651 751,717,887 385,140,659

The accompanying notes form an integral part of these financial statements.

11

Statement of Operations

for the year ended 31 July 2014




INCOME

Income from investments 3 c 11,873,466 2,197,984 2,195,788 2,924,029 2,882,769 1,672,896

Deposit interest 3,208 11 1,589 197 1,197 214

Management fees rebate 4 a 3,119,622 374,884 488,204 720,401 923,103 613,030

Other income 24,137 314 8,959 1,543 8,905 4,416

TOTAL INCOME 15,020,433 2,573,193 2,694,540 3,646,170 3,815,974 2,290,556

EXPENSES 3 c

Management fees 4 a 27,548,123 4,731,534 4,566,449 6,221,435 7,350,074 4,678,631

Operating, administrative and servicing expenses 4 b 7,655,421 1,448,626 1,389,105 1,658,254 2,010,613 1,148,823

Bank interest and charges 13,050 817 2,670 1,834 4,202 3,527

TOTAL EXPENSES 35,216,594 6,180,977 5,958,224 7,881,523 9,364,889 5,830,981

NET OPERATING LOSS FOR THE YEAR (20,196,161) (3,607,784) (3,263,684) (4,235,353) (5,548,915) (3,540,425)


12

Statement of Changes in Net Assets





Net operating loss for the year (20,196,161) (3,607,784) (3,263,684) (4,235,353) (5,548,915) (3,540,425)

Net realised gains / (losses) on:

- Investments in securities 3 b, 3 e 380,393,020 56,353,786 64,405,430 78,679,381 110,000,303 70,954,120

- Forward foreign exchange contracts 3 h 42,086,714 9,199,195 9,207,905 7,485,257 10,860,687 5,333,670

- Futures contracts 3 i 3,535,611 308,584 173,330 241,480 1,382,287 1,429,930

- Foreign exchange transactions 3 d (5,513,513) (342,150) (468,515) (389,949) (2,850,137) (1,462,762)

NET REALISED GAIN 400,305,671 61,911,631 70,054,466 81,780,816 113,844,225 72,714,533

Net change in unrealised (depreciation) / appreciation on:

- Investments in securities (156,838,047) (27,787,446) (28,781,779) (28,410,710) (44,617,753) (27,240,359)

- Forward foreign exchange contracts 3 h (11,084,958) (1,751,856) (1,600,003) (2,434,116) (3,905,731) (1,393,252)

- Futures contracts 3 i (1,922,938) (111,439) (111,985) (325,479) (1,014,379) (359,656)

INCREASE IN NET ASSETS FROM OPERATIONS 230,459,728 32,260,890 39,560,699 50,610,511 64,306,362 43,721,266

CAPITAL TRANSACTIONS

Received on issue of shares 1,249,055,166 79,135,752 151,136,774 313,091,180 355,161,598 350,529,862

Paid on redemptions of shares (841,153,743) (190,744,664) (140,954,794) (139,521,589) (122,046,599) (247,886,097)

TOTAL INCREASE / (DECREASE) IN NET ASSETS FOR THE YEAR 638,361,151 (79,348,022) 49,742,679 224,180,102 297,421,361 146,365,031

NET ASSETS

Beginning of year 2,063,952,832 523,083,394 441,855,735 405,941,549 454,296,526 238,775,628

End of year 2,702,313,983 443,735,372 491,598,414 630,121,651 751,717,887 385,140,659


13

Statement of Changes in Shares Issued for the year ended 31 July 2014


World Selection 1 World Selection 2 World Selection 3 World Selection 4 World Selection 5

Class A (C) (USD)

Shares outstanding, beginning of year 6,803,891.98 9,971,432.84 8,240,555.23 8,304,526.58 8,033,286.71

Shares issued 2,466,251.92 4,095,402.43 12,899,777.63 9,285,930.46 20,082,043.62

Shares redeemed (3,383,845.44) (3,633,143.93) (5,365,342.40) (5,915,014.73) (16,499,993.02)

Shares outstanding, end of year 5,886,298.46 10,433,691.34 15,774,990.46 11,675,442.31 11,615,337.31

Class A (C) (HAUD)*

Shares outstanding, beginning of year - - - - -

Shares issued - - 62,848.72 180,412.18 39,904.66

Shares redeemed - - (18.88) (151,912.22) (18.02)

Shares outstanding, end of year - - 62,829.84 28,499.96 39,886.64

Class A (C) (HGBP)*


Shares issued 351,644.30 806,977.93 1,494,435.31 897,486.41 467,164.44

Shares redeemed (588,629.44) (1,165,825.23) (974,933.50) (1,037,824.78) (745,797.90)


Class A (C) (HEUR)*


Shares issued 2,412,937.56 4,537,394.56 6,119,433.40 12,159,975.38 4,580,341.15

Shares redeemed (8,601,533.05) (4,433,019.34) (2,930,002.30) (1,316,036.85) (976,762.08)


Class A (C) (HSGD)*


Shares issued 100.00 - 100.00 - 100.00

Shares redeemed - - - - -

Shares outstanding, end of year 100.00 - 100.00 - 100.00

Class A (M) (USD)


Shares issued 92,271.68 12.88 114,779.71 19,625.68 490.11

Shares redeemed (0.03) - (0.03) - (0.03)

Shares outstanding, end of year 92,271.65 12.88 114,779.68 19,625.68 490.08

Class A (M) (HKD)


Shares issued 821,278.17 100.00 2,229,017.21 46,818.82 656,616.97

Shares redeemed (0.16) - - (2.49) -

Shares outstanding, end of year 821,278.01 100.00 2,229,017.21 46,816.33 656,616.97

Class A (M) (HAUD)*


Shares issued 13.61 13.61 13.61 13.61 30,516.83


Shares outstanding, end of year 13.61 13.61 13.61 13.61 30,516.83

Class A (M) (HGBP)*


Shares issued 7.57 246.01 6,411.71 19,627.62 23,632.32


Shares outstanding, end of year 7.57 246.01 6,411.71 19,627.62 23,632.32

* Hedged Classes

14

Statement of Changes in Shares Issued

(continued)




Class A (M) (HEUR)*


Shares issued 9.45 1,076.66 9.45 9.45 399.33


Shares outstanding, end of year 9.45 1,076.66 9.45 9.45 399.33

Class A (M) (HSGD)*


Shares issued 100.00 - 100.00 - 100.00


Shares outstanding, end of year 100.00 - 100.00 - 100.00

Class B (C) (USD)


Shares issued 500.00 4,422.15 79,637.37 53,446.96 500.00


Shares outstanding, end of year 500.00 4,422.15 79,637.37 53,446.96 500.00

Class B (C) (HGBP)*

Shares outstanding, beginning of year 7,191.75 4,155.81 11,414.48 6,153.09 33,960.01

Shares issued 68,668.43 486,498.65 610,086.30 232,933.97 122,309.49

Shares redeemed (7,141.75) (300.00) (1,159.56) (300.00) (15,029.86)

Shares outstanding, end of year 68,718.43 490,354.46 620,341.22 238,787.06 141,239.64

Class B (C) (HEUR)*


Shares issued - 10,000.00 43,963.31 - 23,124.10


Shares outstanding, end of year - 10,000.00 43,963.31 - 23,124.10

Class Z (C) (USD)

Shares outstanding, beginning of year - - - 53,030.00 -

Shares issued - - - - -

Shares redeemed - - - (484.00) -

Shares outstanding, end of year - - - 52,546.00 -

Class Z (C) (HGBP)*

Shares outstanding, beginning of year - - 131,240.00 - -


Shares redeemed - - (131,240.00) - -

Shares outstanding, end of year - - - - -

Class Z (C) (HEUR)*

Shares outstanding, beginning of year 10,085.00 - 33,700.00 - -

Shares issued 1,740.00 - - - -

Shares redeemed - - (742.00) - -

Shares outstanding, end of year 11,825.00 - 32,958.00 - -

Class S1 (C) (USD)

Shares outstanding, beginning of year 19,154.28 - 44,871.44 - 12,954.18


Shares redeemed (11,477.74) - (37,073.67) - (8,976.02)

Shares outstanding, end of year 7,676.54 - 7,797.77 - 3,978.16

* Hedged Classes

15

Statistical Information



NUMBER OF SHARES OUTSTANDING:as at 31 July 2014

Class A (C) (USD) 5,886,298.46 10,433,691.34 15,774,990.46 11,675,442.31 11,615,337.31Class A (C) (HAUD)* - - 62,829.84 28,499.96 39,886.64Class A (C) (HGBP)* 1,405,353.99 2,936,801.99 3,569,710.22 4,646,114.47 2,679,288.27Class A (C) (HEUR)* 20,634,011.17 17,090,731.09 18,750,127.98 27,433,063.71 9,160,592.68Class A (C) (HSGD)* 100.00 - 100.00 - 100.00

Class A (M) (USD) 92,271.65 12.88 114,779.68 19,625.68 490.08Class A (M) (HKD) 821,278.01 100.00 2,229,017.21 46,816.33 656,616.97

Class A (M) (HAUD)* 13.61 13.61 13.61 13.61 30,516.83Class A (M) (HGBP)* 7.57 246.01 6,411.71 19,627.62 23,632.32Class A (M) (HEUR)* 9.45 1,076.66 9.45 9.45 399.33Class A (M) (HSGD)* 100.00 - 100.00 - 100.00

Class B (C) (USD) 500.00 4,422.15 79,637.37 53,446.96 500.00Class B (C) (HGBP)* 68,718.43 490,354.46 620,341.22 238,787.06 141,239.64Class B (C) (HEUR)* - 10,000.00 43,963.31 - 23,124.10

Class Z (C) (USD) - - - 52,546.00 - Class Z (C) (HEUR)* 11,825.00 - 32,958.00 - - Class S1 (C) (USD) 7,676.54 - 7,797.77 - 3,978.16

NET ASSET VALUE PER SHARE:

as at 31 July 2014

Class A (C) (USD) USD 12.3542 USD 12.6742 USD 13.1157 USD 13.3554 USD 13.4553Class A (C) (HAUD)* - - AUD 10.3524 AUD 10.4098 AUD 10.4468Class A (C) (HGBP)* GBP 12.4012 GBP 12.7020 GBP 13.1202 GBP 13.3444 GBP 13.4271Class A (C) (HEUR)* EUR 12.2454 EUR 12.5508 EUR 12.9572 EUR 13.1889 EUR 13.2833Class A (C) (HSGD)* SGD 9.9853 - SGD 9.9337 - SGD 9.8411

Class A (M) (USD) USD 9.9868 USD 9.9743 USD 9.9371 USD 9.8941 USD 9.8449Class A (M) (HKD) HKD 9.9872 HKD 9.9742 HKD 9.9382 HKD 9.8873 HKD 9.8484

Class A (M) (HAUD)* AUD 10.0130 AUD 9.9952 AUD 9.9655 AUD 9.9150 AUD 9.8669Class A (M) (HGBP)* GBP 9.9928 GBP 9.9748 GBP 9.9403 GBP 9.8850 GBP 9.8476Class A (M) (HEUR)* EUR 9.9939 EUR 9.9755 EUR 9.9456 EUR 9.8954 EUR 9.8469Class A (M) (HSGD)* SGD 9.9853 - SGD 9.9337 - SGD 9.8411

Class B (C) (USD) USD 10.0080 USD 10.4872 USD 10.8786 USD 10.6965 USD 9.9458Class B (C) (HGBP)* GBP 10.7123 GBP 11.0856 GBP 11.6036 GBP 12.0002 GBP 12.5593Class B (C) (HEUR)* - EUR 10.0256 EUR 10.8610 - EUR 11.1019

Class Z (C) (USD) - - - USD 14.1440 -Class Z (C) (HEUR)* EUR 12.0063 - EUR 13.7499 - -Class S1 (C) (USD) USD 12.5998 - USD 13.4296 - USD 13.8013


Class A (C) (USD) 6,803,891.98 9,971,432.84 8,240,555.23 8,304,526.58 8,033,286.71Class A (C) (HGBP)* 1,642,339.13 3,295,649.29 3,050,208.41 4,786,452.84 2,957,921.73Class A (C) (HEUR)* 26,822,606.66 16,986,355.87 15,560,696.88 16,589,125.18 5,557,013.61Class B (C) (HGBP)* 7,191.75 4,155.81 11,414.48 6,153.09 33,960.01

Class Z (C) (USD) - - - 53,030.00 - Class Z (C) (HGBP)* - - 131,240.00 - - Class Z (C) (HEUR)* 10,085.00 - 33,700.00 - - Class S1 (C) (USD) 19,154.28 - 44,871.44 - 12,954.18

NET ASSET VALUE PER SHARE:as at 31 July 2013

Class A (C) (USD) USD 11.6954 USD 11.8210 USD 12.0583 USD 12.1331 USD 12.0099Class A (C) (HGBP)* GBP 11.7349 GBP 11.8408 GBP 12.0627 GBP 12.1210 GBP 11.9914Class A (C) (HEUR)* EUR 11.6183 EUR 11.7380 EUR 11.9535 EUR 12.0213 EUR 11.8974Class B (C) (HGBP)* GBP 10.0863 GBP 10.2939 GBP 10.6078 GBP 10.8406 GBP 11.1496

Class Z (C) (USD) - - - USD 12.6965 -Class Z (C) (HGBP)* - - GBP 12.6202 - -Class Z (C) (HEUR)* EUR 11.2820 - EUR 12.5305 - -Class S1 (C) (USD) USD 11.8692 - USD 12.2754 - USD 12.2425

* Hedged Classes

16

Statistical Information (continued)




Class A (C) (USD) 4,448,253.33 9,748,113.75 6,393,072.57 8,878,033.18 7,550,202.91Class A (C) (HGBP)* 1,332,537.94 3,167,694.50 2,539,855.30 4,857,311.40 2,851,564.86Class A (C) (HEUR)* 19,826,386.25 13,061,180.25 11,789,714.90 13,650,314.53 3,713,311.05

Class Z (C) (USD) 45,326.00 - 67,490.00 96,030.00 - Class Z (C) (HGBP)* - - 289,574.00 - - Class Z (C) (HEUR)* - - 36,550.00 65,435.00 42,070.00Class S1 (C) (USD) 24,738.88 - 48,828.35 - 14,508.57

NET ASSET VALUE PER SHARE:as at 31 July 2012

Class A (C) (USD) USD 11.3241 USD 11.1353 USD 10.9428 USD 10.7118 USD 10.2749Class A (C) (HGBP)* GBP 11.3674 GBP 11.1536 GBP 10.9467 GBP 10.7030 GBP 10.2634Class A (C) (HEUR)* EUR 11.3143 EUR 11.1228 EUR 10.9158 EUR 10.6850 EUR 10.2506

Class Z (C) (USD) USD 10.6481 - USD 11.3117 USD 11.0758 -Class Z (C) (HGBP)* - - GBP 11.3183 - -Class Z (C) (HEUR)* - - EUR 11.3030 EUR 11.0434 EUR 10.6442Class S1 (C) (USD) USD 11.4356 - USD 11.0736 - USD 10.4065

* Hedged Classes

17

Notes to the Financial Statements


1. General Information

HSBC Portfolios (the “Company”) was incorporated under the laws of the Grand Duchy of Luxembourg as an investment company (Société d'Investissement à Capital Variable or "SICAV") on 21 July 2009. The capital comprises various classes of shares each relating to a separate sub-fund (hereafter called a "Portfolio") consisting of securities, cash and other sundry assets and liabilities. The accompanying Financial Statements present the assets and liabilities of the individual Portfolios and of the Company taken as a whole. The Financial Statements of each individual Portfolio are expressed in the currency designated in the prospectus for that particular Portfolio and the Financial Statements of the Company are expressed in US Dollar (“USD”). The financial statements have been prepared in accordance with the format prescribed by the Luxembourg authorities for Luxembourg investment companies.

The Company is an officially registered investment fund under part I of the Luxembourg law of 17 December 2010 on undertakings for collective investment (the “2010 Law”) and qualifies as a UCITS fund under the European directive 2009/65/EC.

The Company seeks to provide a comprehensive range of Portfolios with the purpose of spreading investment risk and satisfying the requirements of investors seeking to emphasise income, capital conservation and/or capital growth.

The Company offers investors, within the same vehicle, a choice of investments in one or more Portfolios. The Company may issue different classes of shares in one or several Portfolios. Details of the characteristics of such share classes, if and when offered, by one or several Portfolios will be determined by the directors of the Company (the “Directors” and each a “Director”).

As at 31 July 2014, the Company was comprised of the following Portfolios:

HSBC Portfolios – World Selection 1





2. Share Capital

The Company currently offers the following Classes of Shares:

Class Description

Class A A Shares are available to all investors.

Class B B Shares are available in the United Kingdom and Jersey through specific distributors selected by the Distributor. B Shares may be available in other countries through specific distributors selected by the Distributor on application to the Company.

Class E E Shares will be available in certain countries, subject to the relevant regulatory approval, through specific distributors selected by the Distributor on application to the Company.

Class S* S Shares are available in certain jurisdictions or through certain distributors selected by the Distributor provided that the investors qualify as institutional investors within the meaning of article 174 of 2010 Law.

Class Z Z Shares are available to investors having entered into a discretionary management agreement with an HSBC Group entity and to investors subscribing via distributors selected by the Distributor provided that such investors qualify as institutional investors within the meaning of article 174 of 2010 Law.

* Successive issue of Classes S Shares are numbered 1, 2, 3, etc. and respectively referred to as S1, S2, S3, etc. A series of Class S Shares may be issued in one or more Portfolios and each series may or may not be available in all Portfolios.

Within each share class of a Portfolio, the Company is entitled to create different sub-classes, distinguished by their class name, by their distribution policy (Capital-Accumulation (“C”), Distribution (“D”), Quarterly Distribution (“Q”) and Monthly Distribution (“M”) shares), their reference currency, their hedging activity (“H”) and/or by any other criterion to be stipulated by the Board of Directors.

Within each share class of a Portfolio, separate currency hedged classes may be issued (suffixed by "H" and the currency into which the Base Currency is hedged e.g. "HEUR" or "HGBP"). Any fees of the Administration Agent relating to the execution of the currency hedging policy will be borne by the relevant currency hedged class.


for the year ended 31 July 2014 (continued)

18

2. Share Capital (continued)

Investment Minima:

3. Accounting Policies

The following accounting policies have been used consistently in dealing with items which are considered material in relation to the Company’s financial statements.

a) Accounting convention

The financial statements have been prepared under the historical cost convention modified by the revaluation of investments.

b) Assets and portfolio securities valuation

Securities are initially recognised at cost, being the fair value of the consideration given.

All purchases and sales of securities are recognised on the trade date, i.e. the date the Company commits to purchase or sell the security.

Portfolio securities and/or financial derivative instruments which are listed on an official stock exchange are valued at the last available price on the principal market on which such securities are traded. Securities traded on other organised markets are valued at the last available price or yield equivalents obtained from one or more dealers in such organised markets at the time of valuation. If such prices are not representative of their fair value, all such securities and all other permitted assets shall be valued at their fair value at which it is expected they may be resold as determined in good faith by or under the direction of the Directors.

Shares or units in open-ended undertakings for collective investment, which do not have a price quotation on a regulated market, will be valued at the actual net asset value for such shares or units as of the relevant dealing day, failing which they shall be valued at the last available net asset value which is calculated prior to such dealing day. In the case where events have occurred which have resulted in a material change in the net asset value of such shares or units since the last net asset value was calculated, the value of such shares or units may be adjusted at their fair value in order to reflect, in the reasonable opinion of the Board of Directors, such change.

The financial derivative instruments which are not listed on any official stock exchange or traded on any other organised market are valued in accordance with market practice.

c) Income and Expenses

Interest is accrued on a day-to-day basis. Dividends are accounted for on an ex-dividend basis.

Expenses are recognised on an accrual basis.

d) Foreign Exchange

The cost of investments, income and expenses in currencies other than the Company relevant reporting currency have been recorded at the rate of exchange ruling at the time of the transaction. The market value of the investments and other assets and liabilities in currencies other than the relevant reporting currency has been converted at the rates of exchange ruling at the date of these financial statements. The exchange rates used as at 31 July 2014 are as follows:

USD/EUR: 1.33800 USD/GBP: 1.68830

e) Realised Profit/(Loss) on Sale of Investments

Realised profit/(loss) on sale of investments is the difference between the historical average cost of the investment and the sale proceeds.

Class of Shares A, B and E S and Z

Dealing Currency USD EUR GBP USD EUR GBP

Minimum initial investment and minimum holding 5,000 5,000 5,000 1,000,000 1,000,000 1,000,000

Minimum subsequent investment 1,000 1,000 1,000 100,000 100,000 100,000



19

3. Accounting Policies (continued)

f) Segregated Liability

The Company has segregated liability between its Portfolios; meaning, the assets of a Portfolio are exclusively available to satisfy the rights of shareholders in relation to that Portfolio and the rights of creditors whose claims have arisen in connection with the creation, operation and liquidation of that Portfolio.

g) Dividends payable

Dividends payable by the Company are recorded on the ex-date.

h) Forward Foreign Exchange Contracts

Outstanding forward currency contracts are valued at the closing date by reference to the forward rate of exchange applicable to the outstanding life of the contract. The unrealised gain or loss is shown in the Statement of Net Assets. Realised gains or losses and change in unrealised appreciation or depreciation are disclosed in the Statement of Changes in Net Assets.

i) Futures contracts

Futures contracts, which are carried at market value, provide for the delayed delivery of the underlying instrument at a fixed price or for a cash amount based on the change in the value of the underlying instrument at a specific date in the future. The unrealised gain or loss on futures contracts is disclosed in the Statement of Net Assets. Changes in the market value of open futures contracts and realised gains or losses are reported in the Statement of Changes in Net Assets.

j) Net Asset Value per Share

The net asset value per share of the Company (the “Net Asset Value per Share”) is calculated by dividing the net assets of the relevant Class of Shares in a Portfolio included in the Statement of Net Assets by the number of Shares of the relevant class in that Portfolio in issue at the year end.

4. Charges and Expenses

a) Management Fee

The Company pays to the Management Company an annual management fee calculated as a percentage of the net asset value of each Portfolio or Share Class (“Management Fee”). The Management Fee is accrued daily and payable monthly in arrears. The fee rate per annum actually charged and applicable to each Class of Shares is set below:

HSBC Portfolios – World Selection 1 Until 9 June 2014 From 10 June 2014 Class A Shares 1.00% 1.00% Class B Shares 0.50% 0.50% Class E Shares 0.00% 1.30% Class S1 Shares 0.50% 0.50% Class Z Shares 0.00% 0.00%





20

4. Charges and Expenses (continued)

a) Management Fee (continued)

HSBC Portfolios – World Selection 4 Until 9 June 2014 From 10 June 2014 Class A Shares 1.20% 1.20% Class B Shares 0.60% 0.60% Class E Shares 0.00% 1.30% Class S1 Shares 0.60% 0.60%

Class Z Shares 0.00% 0.00%


The Management Fee covers management and distribution services provided in relation to the relevant Portfolio of the Company by the Management Company, the Investment Advisers and the Share Distributors. The Management Company is responsible for discharging, out of such fee, the fees of the Investment Advisers and the Share Distributors and may pay part of such fee to recognised intermediaries or such other person as the Management Company may determine, at its discretion.

The Management Company may instruct the Company to pay a portion of the Management Fee directly out of the assets of the Company to any of such service providers. In such case the Management Fee due to Management Company is reduced accordingly.

The Management Company is also acting as a management company for other investment funds, namely HSBC Global Investment Funds, HSBC International Select Fund and HSBC Amanah Funds.

Management Fees Rebate

The Directors endeavour to reduce duplication of management charges by negotiating rebates where applicable in favour of the Company with the collective investment schemes or their managers. These rebates amount to USD 3,119,622 for the year ended 31 July 2014 (USD 2,737,628 for year ended 31 July 2013).

b) Operating, Administrative and Servicing Expenses

Operating, Administrative and Servicing Expenses cover the ongoing custody fees and safekeeping charges payable to the Custodian and its correspondent banks, fees for fund accounting and administration services (including domiciliary services) payable to the Administrative Agent and transfer agency fees for registrar and transfer agency services payable to the Transfer Agent.

Operating, Administrative and Servicing Expenses also cover expenses relating to the creation of new Portfolio; the Luxembourg asset-based taxe d’abonnement; reasonable out-of-pocket expenses incurred by the Board of Directors; legal, auditing fees and expenses; ongoing registration and listing fees, including translation expenses; the costs and expenses of preparing, printing, and distributing the Company’s Prospectus, financial reports, statements and other documents made available directly or through intermediaries to its shareholders. The only operating expenses which are not covered by the fee rate paid to the management company and which are included under this caption are ' hedging fees' incurred by the respective portfolios for hedging the different share classes.

Until 9 June 2014

The Company pays to the Management Company a fee to cover certain Operating, Administrative and Servicing Expenses. The Management Company is responsible for discharging out of this fee, the expenses described below, inter alia, payable to the Custodian, the Administration Agent and the Transfer Agent.

This fee is set, for each Portfolio or Share Class, at a fixed percentage of the Net Asset Value of the relevant Portfolio or Share Class specified in the Company’s prospectus. Such fee is accrued daily and payable monthly in arrears.

The rate for class A, B, Z, S1 and S2 Shares is 0.25%. However, the Board of Directors reserves the right to amend the fixed level of the Operating, Administrative and Servicing Expenses applicable to each Portfolio or Class of Shares.



21

b) Operating, Administrative and Servicing Expenses (continued)

From 10 June 2014

The Company pays the expenses directly to the service providers and as such the ongoing charge for each Share Class will vary. The expenses paid by the Company will not exceed 0.25% of the net assets per annum on a rolling basis of each Share Class. Where actual expenses exceed 0.25% per annum, the excess will be borne directly by the Management Company or by HSBC Asset Management distributors.

c) Directors’ Fees, Expenses and Interests

A Director may be a party to, or otherwise interested in, any transaction or arrangement with the Company or in which the Company is interested, provided that he has disclosed to the other Directors, prior to the conclusion of any such transaction or arrangement, the nature and extent of any interest of his therein. A Director may vote in respect of any contract or arrangement or any proposal whatsoever in which he has an interest, having first disclosed such interest. He shall not be disqualified by his office from contracting with the Company. If a Director declares his interest in any contract which the Company is considering entering into, he may be counted in the quorum of any meeting to consider the contract and may vote on any resolution to enter into such contract.

The Company pays an annual fee to each of the independent directors amounting to EUR 10,000. The amount is accrued with every NAV calculation and paid quarterly in arrears. As at 31 July 2014, EUR 5,000 was payable to the Independent Directors.

5. Taxation

The Company is liable in Luxembourg to a tax (taxe d’abonnement) of 0.05% per annum of its net assets, such tax being payable quarterly and calculated on the Net Asset Value of the Company at the end of the relevant calendar quarter. The taxe d’abonnement is levied at a rate of 0.01% per annum on Portfolios or Classes reserved to Institutional Investors. This tax is not due on that portion of the Company’s assets invested in other Luxembourg UCIs. In addition, the issue of Shares in the Company is not subject to any registration duties or other taxes in Luxembourg.

Under current law and practice, the Company is not liable to Luxembourg taxes on income or capital gains, nor the dividends paid by the Company, are liable to any Luxembourg withholding tax.

Interest, dividends and capital gains on securities may be subject to withholding or capital gains taxes in certain countries.

The taxe d’abonnement is paid out of the operating, administrative and servicing expenses fees.

Worldwide

In many markets the Company, as a foreign investment fund, may be subject to non-recoverable tax on income and gains (either by withholding or direct assessment) in relation to the investment returns it realizes from its holdings of shares and securities in those markets. Where practicable the Company will make claims under the relevant double tax treaties and domestic law of the countries concerned in order to minimize the impact of local taxation on the investment return and to obtain the best return for its shareholders. Those claims will be made on the basis of the Company’s understanding of the validity of such claims given the information available from the Company’s custodians, external advisers and other sources as` to the interpretation and application of the relevant legal provisions by the tax authorities in the country concerned.

The Company will seek to provide for tax on capital gains where it considers that it is more likely than not that the tax will be payable, given the advice and information available to the Company at the date concerned. However, any provision held may be insufficient to cover, or be in excess of, any final liability.

The Company will seek to claim concessionary tax treatment and account for tax on a best efforts basis, given the tax law and practice at that date. Any change in tax law or practice in any country where the Company is registered, marketed or invested could affect the value of the Company’s investments in the affected country. In particular, where retrospective changes to tax law or practice are applied by the legislature or tax authorities in a particular country these may result in a loss for current Shareholders in the affected sub fund. The Company does not offer any warranty as to the tax position of returns from investments held in a particular market nor of the risk of a retrospective assessment to tax in a particular market or country.



22

6. Forward Foreign Exchange Contracts

As at 31 July 2014, the Company had entered into various forward foreign currency contracts, for the purpose of portfolio and share class hedging, which obliges the Company to deliver currencies at specified dates. The counterparty for all the below forward foreign exchange contracts is HSBC Bank Plc. Open contracts are as follows:

Maturity Date Currency

BoughtBought

AmountCurrency

SoldSold

AmountUnrealised

(Loss) / GainUSD

HSBC Portfolios - World Selection 1

6 August 2014 AUD 137 USD 129 (2)6 August 2014 EUR 253,542,021 USD 341,594,883 (2,349,628)6 August 2014 GBP 18,041,033 USD 30,626,981 (169,733)6 August 2014 SGD 2,004 USD 1,616 (9)7 August 2014 AUD 812,000 USD 760,113 (5,353)7 August 2014 CHF 35,000 USD 38,809 (317)7 August 2014 EUR 2,969,000 USD 4,008,899 (36,340)7 August 2014 JPY 415,221,000 USD 4,094,175 (56,365)7 August 2014 MXN 12,720,000 USD 980,509 (19,492)7 August 2014 NOK 2,495,400 USD 403,506 (7,329)7 August 2014 PLN 855,000 USD 278,820 (5,080)7 August 2014 USD 14,883,410 AUD 15,834,200 165,398 7 August 2014 USD 9,411,449 CAD 10,053,600 176,971 7 August 2014 USD 90,077 CHF 80,400 1,656 7 August 2014 USD 926,072 DKK 5,082,100 13,943 7 August 2014 USD 72,593,106 EUR 53,585,000 895,711 7 August 2014 USD 31,936,447 GBP 18,686,200 389,304 7 August 2014 USD 11,458,602 JPY 1,162,259,700 156,228 7 August 2014 USD 976,471 MXN 12,720,000 15,454 7 August 2014 USD 404,467 NOK 2,495,400 8,291 7 August 2014 USD 280,160 PLN 854,600 6,548 7 August 2014 USD 6,357,426 SEK 43,270,800 91,780 7 August 2014 USD 345,563 ZAR 3,713,700 (807)7 August 2014 ZAR 3,713,700 USD 352,083 (5,713)

(734,884)


6 August 2014 AUD 137 USD 129 (2)6 August 2014 EUR 214,360,244 USD 288,805,582 (1,986,477)6 August 2014 GBP 42,767,836 USD 72,603,910 (402,357)7 August 2014 AUD 987,000 USD 923,931 (6,507)7 August 2014 CHF 38,000 USD 42,135 (344)7 August 2014 EUR 3,651,000 USD 4,928,188 (43,104)7 August 2014 JPY 429,865,000 USD 4,238,735 (58,520)7 August 2014 MXN 13,960,000 USD 1,076,093 (21,392)7 August 2014 NOK 2,736,200 USD 442,443 (8,037)7 August 2014 PLN 937,000 USD 305,560 (5,567)



23

6. Forward Foreign Exchange Contracts (continued)


BoughtBought

AmountCurrency

SoldSold

AmountUnrealised

(Loss) / GainUSD

HSBC Portfolios - World Selection 2 (continued)

7 August 2014 USD 8,522,599 AUD 9,052,400 108,322 7 August 2014 USD 5,151,562 CAD 5,521,200 80,205 7 August 2014 USD 99,040 CHF 88,400 1,821 7 August 2014 USD 603,195 DKK 3,342,000 3,377 7 August 2014 USD 83,472,623 EUR 61,950,800 581,684 7 August 2014 USD 26,514,665 GBP 15,542,700 274,564 7 August 2014 USD 8,451,017 JPY 856,258,100 124,350 7 August 2014 USD 1,071,662 MXN 13,960,000 16,961 7 August 2014 USD 443,497 NOK 2,736,200 9,091 7 August 2014 USD 307,337 PLN 937,500 7,183 7 August 2014 USD 3,210,350 SEK 21,890,900 40,531 7 August 2014 USD 379,099 ZAR 4,074,100 (885)7 August 2014 ZAR 4,074,100 USD 386,251 (6,267)

(1,291,370)


6 August 2014 AUD 655,698 USD 617,551 (8,193)6 August 2014 EUR 245,814,981 USD 331,184,312 (2,278,020)6 August 2014 GBP 54,688,513 USD 92,839,810 (513,522)6 August 2014 SGD 2,003 USD 1,614 (10)7 August 2014 AUD 2,968,800 USD 2,792,522 (32,999)7 August 2014 CAD 3,269,500 USD 3,047,843 (44,727)7 August 2014 CHF 113,800 USD 126,183 (1,030)7 August 2014 DKK 288,900 USD 52,166 (315)7 August 2014 EUR 13,600,000 USD 18,302,780 (105,811)7 August 2014 JPY 1,011,151,600 USD 9,971,482 (138,555)7 August 2014 MXN 17,820,000 USD 1,373,637 (27,307)7 August 2014 NOK 3,497,600 USD 565,561 (10,273)7 August 2014 PLN 1,197,000 USD 390,347 (7,111)7 August 2014 SEK 4,192,500 USD 613,485 (6,408)7 August 2014 USD 2,781,617 AUD 2,968,800 22,094 7 August 2014 USD 3,063,409 CAD 3,269,500 60,293 7 August 2014 USD 127,497 CHF 113,800 2,344 7 August 2014 USD 52,710 DKK 288,900 859 7 August 2014 USD 74,990,463 EUR 55,547,800 666,818 7 August 2014 USD 9,737,842 GBP 5,701,100 112,909 7 August 2014 USD 9,983,872 JPY 1,011,151,600 150,946 7 August 2014 USD 1,367,981 MXN 17,820,000 21,650 7 August 2014 USD 566,909 NOK 3,497,600 11,620 7 August 2014 USD 392,440 PLN 1,197,100 9,172 7 August 2014 USD 618,171 SEK 4,192,500 11,094 7 August 2014 USD 484,293 ZAR 5,204,600 (1,130)7 August 2014 ZAR 5,204,600 USD 493,942 (8,518)

(2,114,130)



24

6. Forward Foreign Exchange Contracts (continued)


BoughtBought

AmountCurrency

SoldSold

AmountUnrealised

(Loss) / GainUSD


6 August 2014 AUD 300,963 USD 283,508 (3,815)6 August 2014 EUR 364,573,693 USD 491,186,856 (3,378,583)6 August 2014 GBP 66,043,292 USD 112,117,008 (621,345)7 August 2014 AUD 1,143,700 USD 1,075,646 (12,567)7 August 2014 CAD 1,299,100 USD 1,211,027 (17,772)7 August 2014 CHF 43,500 USD 48,233 (394)7 August 2014 DKK 115,300 USD 20,819 (126)7 August 2014 EUR 5,198,000 USD 6,995,223 (40,235)7 August 2014 JPY 388,879,800 USD 3,835,010 (53,355)7 August 2014 MXN 7,110,000 USD 548,067 (10,895)7 August 2014 NOK 1,397,700 USD 226,008 (4,105)7 August 2014 PLN 478,000 USD 155,878 (2,840)7 August 2014 SEK 1,674,600 USD 245,043 (2,560)7 August 2014 USD 1,071,590 AUD 1,143,700 8,512 7 August 2014 USD 1,217,212 CAD 1,299,100 23,957 7 August 2014 USD 48,736 CHF 43,500 896 7 August 2014 USD 21,037 DKK 115,300 343 7 August 2014 USD 22,894,449 EUR 16,939,600 229,054 7 August 2014 USD 3,937,215 GBP 2,305,500 44,934 7 August 2014 USD 3,839,707 JPY 388,879,800 58,052 7 August 2014 USD 545,810 MXN 7,110,000 8,638 7 August 2014 USD 226,546 NOK 1,397,700 4,644 7 August 2014 USD 156,668 PLN 477,900 3,662 7 August 2014 USD 246,915 SEK 1,674,600 4,431 7 August 2014 USD 193,695 ZAR 2,081,600 (452)7 August 2014 ZAR 2,081,600 USD 197,554 (3,407)

(3,765,328)


6 August 2014 AUD 727,488 USD 685,296 (9,222)6 August 2014 EUR 123,887,690 USD 166,912,769 (1,148,094)6 August 2014 GBP 38,784,190 USD 65,841,165 (364,887)6 August 2014 SGD 2,009 USD 1,619 (9)

(1,522,212)



25

7. Futures Contracts

As at 31 July 2014, the Company had entered in the following outstanding futures contracts. The margin accounts and the unrealized gains/(loss) on these futures contracts are recognized under the cash at bank figures in the statement of net assets.

UnderlyingNumber of

contracts Currency Commitment Maturity dateUnrealised Gain /

(Loss) USD USD


OSE Topix Index 27 JPY 3,362,693 11/09/2014 47,917 CBT US 10Yr Note 93 USD 11,587,219 19/09/2014 28,563 CME S&P 500 E-Mini Index 22 USD 2,130,838 19/09/2014 (16,803)EUX EURO STOXX 81 EUR 3,373,266 19/09/2014 (129,512)LIFFE FTSE 100 Index 30 GBP 3,379,427 19/09/2014 (19,626)NYF Mini MSCI Emerging Market 13 USD 686,790 19/09/2014 10,335

(79,126)


OSE Topix Index 33 JPY 4,109,958 11/09/2014 58,565 CBT US 10Yr Note 99 USD 12,334,781 19/09/2014 32,203 EUX EURO STOXX 90 EUR 3,748,073 19/09/2014 (143,902)LIFFE FTSE 100 Index 35 GBP 3,942,665 19/09/2014 (22,898)

(76,032)


OSE Topix Index 66 JPY 8,219,915 11/09/2014 117,810 CBT US 10Yr Note 139 USD 17,318,531 19/09/2014 40,891 CME S&P 500 E-Mini Index 130 USD 12,591,313 19/09/2014 (99,288)EUX EURO STOXX 218 EUR 9,078,666 19/09/2014 (348,562)LIFFE FTSE 100 Index 78 GBP 8,786,509 19/09/2014 (51,029)NYF Mini MSCI Emerging Market 77 USD 4,067,910 19/09/2014 61,215

(278,963)


OSE Topix Index 149 JPY 18,557,082 11/09/2014 264,428 CBT US 10Yr Note 84 USD 10,465,875 19/09/2014 12,016 CME S&P 500 E-Mini Index 705 USD 68,283,656 19/09/2014 (538,444)EUX EURO STOXX 590 EUR 24,570,703 19/09/2014 (943,357)LIFFE FTSE 100 Index 191 GBP 21,515,683 19/09/2014 (124,955)NYF Mini MSCI Emerging Market 419 USD 22,135,770 19/09/2014 333,105

(997,207)


OSE Topix Index 106 JPY 13,201,682 11/09/2014 307,242 CME S&P 500 E-Mini Index 540 USD 52,302,375 19/09/2014 90,436 EUX EURO STOXX 360 EUR 14,992,293 19/09/2014 (799,254)LIFFE FTSE 100 Index 142 GBP 15,995,953 19/09/2014 (173,345)NYF Mini MSCI Emerging Market 339 USD 17,909,370 19/09/2014 215,265

(359,656) The broker linked to all of the above futures contracts is HSBC Bank Plc.



26

8. Soft Commission Arrangements

The Investment Adviser of the Portfolios may from time to time receive goods and services which are paid for out of broker commissions provided that they relate to execution and research services which meet the criteria laid down by United Kingdom’s Financial Conduct Authority Rules.

There were no soft commissions paid or accrued during the year.

9. Transactions with connected persons

Transaction costs such as brokerage fees have no impact on the Company as these fees are paid out of Operating, Administrative and Servicing Expenses, which is set, for each Portfolio or Share Class, at a fixed percentage of the Net Asset Value of the relevant Portfolio or Share Class. No additional transaction costs have been paid out of the assets of the Company.

10. Publication of TER (Total Expense Ratio)

Total Expense Ratio (%) for the active Portfolios and share classes for the year ended 31 July 2014:

HSBC Portfolios

World Selection 1

HSBC Portfolios

World Selection 2

HSBC Portfolios

World Selection 3

HSBC Portfolios

World Selection 4

HSBC Portfolios

World Selection 5

Class A (C) (USD) 1.86 1.89 2.15 2.13 2.25 Class A (C) (HAUD) - - 2.21 2.32 2.29 Class A (C) (HGBP) 1.92 1.95 2.18 2.16 2.30 Class A (C) (HEUR) 1.90 1.95 2.17 2.19 2.34 Class A (C) (HSGD) 1.86 - 2.15 - 2.28 Class A (M) (USD) 1.85 1.65 2.14 2.15 2.27 Class A (M) (HKD) 1.85 1.65 2.14 2.15 2.27 Class A (M) (HAUD) 1.60 1.65 1.89 1.90 2.27 Class A (M) (HGBP) 1.60 1.91 2.15 2.16 2.28 Class A (M) (HEUR) 1.60 1.91 1.89 1.90 2.28 Class A (M) (HSGD) 1.86 - 2.15 - 2.28 Class B (C) (USD) 1.35 1.21 1.76 1.53 1.62 Class B (C) (HGBP) 1.64 1.82 1.92 1.88 1.81 Class B (C) (HEUR) - 1.42 1.62 - 1.92 Class Z (C) (USD) - - - 0.91 - Class Z (C) (HEUR) 0.94 - 0.96 - - Class S1 (C) (USD) 1.34 - 1.36 - 1.47

TER is calculated using the guidance as per CSSF Circular 2003/122.

11. Publication of PTR (Portfolio Turnover Ratio)

Portfolio Turnover Ratio (%) for the year ended 31 July 2014:






229

PTR is calculated using the formulae as per CSSF Circular 2003/122.



27

12. Transaction costs

For the year from 01 August 2013 to 31 July 2014, the Fund incurred transaction costs related to purchase or sale of securities and derivative products as follows:

HSBC Portfolios - World Selection 1 74,039USD





The above transaction costs include costs directly linked to the acquisition or sale of investments, to the extent that such costs are shown separately on transaction confirmations.

Transaction costs are incorporated directly in dealing prices of assets and are not reported as a separate line in the statement of operations.

13. Global Exposure

The global risk on derivatives has been determined according to the commitment approach during the financial year ended 31 July 2014.

14. Swing Pricing

When investors buy or sell shares in a Portfolio, the Investment Adviser may need to buy or sell the underlying investments within the Portfolio. Without an adjustment in the Net Asset Value per Shares of the Portfolio to take account of these transactions, all shareholders in the Portfolio would pay the associated costs of buying and selling these underlying investments. These costs can include, but are not limited to, bid-offer spreads, brokerage and taxes on transactions.

The pricing adjustment aims to protect shareholders in a Portfolio. The pricing adjustment aims to mitigate the effect of transactions costs on the Net Asset Value per Shares of a Portfolio incurred by subscriptions or redemptions.

If it is in the interests of shareholders, the Net Asset Value per Share may be adjusted up or down by a maximum of 2% when the net capital inflows or outflows in a Portfolio exceeds a predefined threshold agreed from time to time by the Board of Directors.

The pricing adjustment mechanism has 3 main components: - A threshold rate - A buy adjustment rate - A sell adjustment rate

These may be different for each Portfolio.

The pricing adjustment is triggered when the difference between subscriptions and redemptions, as a percentage of the Portfolio's Net Asset Value, exceeds the threshold on any particular valuation day. The Net Asset Value of the Portfolio will be adjusted up or down using the adjustment rates (buy adjustment rate for net subscriptions or sell adjustment rate for net redemptions).

The adjustment of the Net Asset Value per Share will apply equally to each Class of Share in a specific Portfolio on any particular valuation. During the year ended 31 July 2014, no pricing adjustments have been applied.

15. Other Information

Prior to May 2014, the Company was invested in other investment funds which met the criteria of article 41 (1) e of the law of 17 December 2010, in line with the investment policy of the prospectus of the Company dated September 2012. In May 2014, a new prospectus was issued modifying the investment policy of the Company, such that its sub-funds are now also invested in equity and bond products.

Schedule of Investments and Other Net Assets


Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

Transferable Securities Admitted to an Official Stock Exchange Listing 190,282,010 42.88

Shares 34,334 0.01

Japan 24,267 0.01

700 Fuso Chemical 24,267 0.01

United States 10,067 -

214 Liberty Media 10,067 -

Bonds 112,303,970 25.31

Australia 14,871,165 3.35

1,250,000 Australia (Govt) 2.75% 21/04/2024 1,089,794 0.25

3,400,000 Australia (Govt) 3.25% 21/10/2018 3,200,618 0.72

2,470,000 Australia (Govt) 3.25% 21/04/2029 2,135,877 0.48

3,435,000 Australia (Govt) 4.75% 15/06/2016 3,316,645 0.75

2,050,000 Australia (Govt) 5.75% 15/05/2021 2,196,456 0.49

1,700,000 Australia (Govt) 5.75% 15/07/2022 1,840,986 0.42

207,000 Commonwealth Bank of Australia 5.5% 06/08/2019 329,083 0.07

37,000 Incitec Pivot 4% 07/12/2015 38,329 0.01

277,000 Scentre Management 1.5% 16/07/2020 375,639 0.08

246,000 Sydney Airport Finance 2.75% 23/04/2024 347,738 0.08

Austria 913,909 0.21

207,000 OMV 6.75% VRN PERP 314,322 0.07

207,000 Telekom Finanzmanagement 3.125% 03/12/2021 302,509 0.07

200,000 Vienna Insurance 5.5% VRN 09/10/2043 297,078 0.07

Belgium 2,803,245 0.64

231,000 Anheuser-Busch InBev 4% 26/04/2018 346,467 0.08

86,000 Anheuser-Busch InBev Finance 2.15% 01/02/2019 86,407 0.02

25,000 Anheuser-Busch InBev Worldwide 2.5% 15/07/2022 24,057 0.01

46,300 Belgium (Govt) 1.25% 22/06/2018 64,250 0.01

752,900 Belgium (Govt) 2.25% 22/06/2023 1,082,858 0.24

3,600 Belgium (Govt) 2.6% 22/06/2024 5,275 -

353,200 Belgium (Govt) 3.5% 28/06/2017 518,408 0.12

184,000 Belgium (Govt) 3.75% 22/06/2045 306,206 0.07

210,400 Belgium (Govt) 4.25% 28/09/2022 348,871 0.08

10,700 Belgium (Govt) 5% 28/03/2035 20,446 0.01

Brazil 29,513 0.01

30,000 Vale 5.625% 11/09/2042 29,513 0.01

as at 31 July 2014

28

43520990

Typewritten Text

43520990

Typewritten Text

43392200

Stamp

43392200

Stamp





Canada 9,859,598 2.22

471,000 Bank of Montreal 1.3% 14/07/2017 470,656 0.11

70,000 Bank of Nova Scotia 1.45% 25/04/2018 69,119 0.02

55,000 Bombardier 4.75% 15/04/2019 53,591 0.01

3,400,000 Canada (Govt) 1% 01/05/2016 3,117,762 0.70

106,000 Canada (Govt) 1.25% 01/02/2016 97,623 0.02

62,000 Canada (Govt) 1.25% 01/03/2018 56,748 0.01

235,000 Canada (Govt) 1.75% 01/03/2019 217,879 0.05

2,070,000 Canada (Govt) 1.75% 01/09/2019 1,912,951 0.43

2,060,000 Canada (Govt) 2.5% 01/06/2024 1,945,206 0.44

511,000 Canada (Govt) 2.75% 01/06/2022 496,325 0.11

1,120,000 Canada (Govt) 3.5% 01/12/2045 1,197,988 0.27

137,000 Canada (Govt) 3.75% 01/06/2019 138,664 0.03

22,000 Canada (Govt) 4% 01/06/2041 25,076 0.01

10,000 Canada (Govt) 5.75% 01/06/2033 13,460 -

20,000 TransCanada Pipelines 2.5% 01/08/2022 19,179 -

27,000 Videotron 5.375% 15/06/2024 27,371 0.01

China 324,286 0.07

238,000 Hutchison Whampoa 3.75% VRN PERP 324,286 0.07

Denmark 1,501,885 0.34

192,000 Carlsberg Breweries 3.375% 13/10/2017 277,866 0.06

223,000 Danske Bank 3.875% VRN 04/10/2023 319,841 0.07

4,170,900 Denmark (Govt) 1.5% 15/11/2023 767,228 0.17

600,000 Denmark (Govt) 2.5% 15/11/2016 113,595 0.03

85,000 Denmark (Govt) 4% 15/11/2019 18,064 0.01

20,100 Denmark (Govt) 4.5% 15/11/2039 5,291 -

France 11,173,719 2.52

161,000 Axa 5.777% VRN PERP 227,328 0.05

20,000 BNP Paribas 5.75% 24/01/2022 37,473 0.01

200,000 Bouygues 4% 12/02/2018 296,217 0.07

200,000 BPCE 3% 19/07/2024 291,747 0.07

110,000 Caisse Francaise de Financement 5.25% 16/02/2017 120,918 0.03

200,000 Casino Guichard Perracho 3.157% 06/08/2019 292,225 0.07

19,000 Cie Financement Foncier 2.375% 21/11/2022 27,668 0.01

118,000 Credit Agricole 6.5% VRN PERP 165,043 0.04

254,000 Credit Mutuel 4.471% VRN PERP 350,379 0.08

46,000 Electricite de France 1.15% 20/01/2017 45,982 0.01


200,000 Essilor International 1.75% 09/04/2021 275,985 0.06

500,000 France (Govt) 0.25% 25/11/2016 671,496 0.15

1,471,000 France (Govt) 1% 25/05/2019 2,020,031 0.45

1,251,800 France (Govt) 2.25% 25/05/2024 1,797,361 0.40

as at 31 July 2014 (continued)

29






France (continued)

28,500 France (Govt) 2.5% 25/05/2030 40,052 0.01

226,500 France (Govt) 3% 25/04/2022 347,322 0.08

480,000 France (Govt) 3.25% 25/04/2016 677,586 0.15

28,900 France (Govt) 3.25% 25/05/2045 44,483 0.01

390,000 France (Govt) 4% 25/10/2038 674,304 0.15

200,000 GDF Suez 4.75% VRN PERP 294,423 0.07

200,000 Gecina 4.75% 11/04/2019 308,924 0.07

200,000 Groupe Auchan 3.625% 19/10/2018 298,357 0.07

207,000 Orange 4.25% VRN PERP 286,654 0.06

200,000 Pernod Ricard 2% 22/06/2020 276,032 0.06

231,000 RCI Banque 2.25% 29/03/2021 321,634 0.07

16,000 RCI Banque 3% 09/05/2019 27,168 0.01

40,000 RCI Banque 4.375% 27/01/2015 54,479 0.01

192,000 Saint Gobain 4.5% 30/09/2019 299,940 0.07

200,000 Societe Des Autoroutes Paris Rhin Rhone 2.25% 16/01/2020 281,234 0.06

200,000 Vinci 6.25% VRN PERP 283,086 0.06

Germany 2,610,700 0.59

200,000 Allianz Finance 5.75% 08/07/2041 313,508 0.07

254,000 Bayer 3% VRN 01/07/2075 343,686 0.08

10,000 Daimler 1.75% 08/11/2017 16,755 -

231,000 Daimler 2% 25/06/2021 323,028 0.07

12,000 Daimler 2.25% 24/01/2022 16,980 -

200,000 Deutsche Ann Finance 3.125% 25/07/2019 289,649 0.07

200,000 Hannover Finance 5% VRN 30/06/2043 304,520 0.07

200,000 Muench. Rueck. 5.767% VRN PERP 292,321 0.07

223,000 Vier Gas Transport 3.125% 10/07/2023 330,208 0.07

269,000 Volkswagen Finance Services 3.875% VRN PERP 380,045 0.09

Ireland 300,985 0.07

207,000 Aquarius & Investments Zurich 4.25% VRN 02/10/2043 300,985 0.07

Italy 14,778,098 3.33

192,000 Atlantia 4.5% 08/02/2019 294,932 0.07

223,000 ENI 3.5% 29/01/2018 326,748 0.07

238,000 Intesa Sanpaolo 2% 18/06/2021 319,985 0.07

59,000 Italy (Govt) 1.15% 15/05/2017 79,836 0.02

1,250,000 Italy (Govt) 2.25% 15/05/2016 1,725,192 0.39

82,000 Italy (Govt) 3% 01/11/2015 113,293 0.02

627,000 Italy (Govt) 3.5% 01/06/2018 916,875 0.21

55,000 Italy (Govt) 3.75% 01/09/2024 80,519 0.02

900,000 Italy (Govt) 4.25% 01/02/2019 1,367,255 0.31

1,000,000 Italy (Govt) 4.25% 01/03/2020 1,536,934 0.34

73,000 Italy (Govt) 4.5% 15/07/2015 101,475 0.02

930,000 Italy (Govt) 4.5% 01/05/2023 1,444,088 0.32

102,000 Italy (Govt) 4.5% 01/03/2024 158,705 0.03

30






Italy (continued)

645,000 Italy (Govt) 4.75% 15/09/2016 938,709 0.21

23,000 Italy (Govt) 4.75% 01/06/2017 34,195 0.01

1,583,000 Italy (Govt) 4.75% 01/09/2028 2,487,295 0.56

304,000 Italy (Govt) 4.75% 01/09/2044 472,819 0.11

125,000 Italy (Govt) 5% 01/03/2022 200,902 0.05

470,000 Italy (Govt) 5% 01/08/2039 757,660 0.17

315,000 Italy (Govt) 5.5% 01/09/2022 521,628 0.12

207,000 SNAM 3.875% 19/03/2018 305,735 0.07

207,000 Terna 2.875% 16/02/2018 296,095 0.07

207,000 Unicredit 3.25% 14/01/2021 297,223 0.07

Japan 7,058,633 1.59

145,000,000 Japan (Govt) 0.1% 15/06/2016 1,411,020 0.32

120,000,000 Japan (Govt) 0.2% 20/03/2019 1,170,191 0.26

11,900,000 Japan (Govt) 0.3% 20/03/2017 116,392 0.03

106,000,000 Japan (Govt) 0.9% 20/03/2022 1,074,529 0.24

68,050,000 Japan (Govt) 1.3% 20/03/2019 697,113 0.16

50,000,000 Japan (Govt) 1.7% 20/03/2044 489,361 0.11

141,950,000 Japan (Govt) 1.9% 20/09/2030 1,550,552 0.35

49,100,000 Japan (Govt) 2.1% 20/12/2030 549,475 0.12

Luxembourg 329,117 0.07

22,000 Arcelormittal 5.5% 01/03/2021 23,072 -

207,000 Glencore Finance Europe 3.375% 30/09/2020 306,045 0.07

Mexico 296,616 0.07

169,000 America Movil 5.125% VRN 06/09/2073 245,366 0.06

50,000 Petroleos Mexicanos 4.875% 15/03/2015 51,250 0.01

Netherlands 7,175,121 1.62

207,000 ABN Amro Bank 7.125% 06/07/2022 357,823 0.08

131,000 Bank Nederlandse Germenteen 1.875% 06/06/2019 186,438 0.04

106,000 Bank Nederlandse Germeenten 1.875% 14/01/2021 150,475 0.03

254,000 BMW Finance 1.625% 17/07/2019 353,276 0.08

18,000 BMW Finance 1.75% 20/11/2017 30,185 0.01

223,000 Deutsche Telekom International Finance 4.25% 16/03/2020 348,863 0.08

200,000 ELM 5.252% VRN PERP 281,244 0.06

223,000 ENEL Finance International 3.625% 17/04/2018 327,218 0.07

200,000 Hit Finance 5.75% 09/03/2018 311,745 0.07

200,000 Iberdrola International 4.5% 21/09/2017 298,346 0.07

31






Netherlands (continued)

200,000 ING Bank 4.25% 13/01/2017 290,915 0.07

207,000 KBC Internationale Financieringsmaatschappij 2.125% 10/09/2018 291,390 0.07

78,000 Koninklijke KPN 4% 22/06/2015 107,611 0.02

200,000 Koninklijke KPN 7.5% 04/02/2019 342,029 0.08

206,000 Nederlandse Waterschapsbank 1.625% 23/08/2019 289,550 0.07

466,400 Netherlands (Govt) 1.25% 15/01/2019 649,018 0.15

450,000 Netherlands (Govt) 2% 15/07/2024 637,910 0.14



261,000 Rabobank 2.5% VRN 26/05/2026 348,546 0.08

100,000 Rabobank Nederland 6.875% 19/03/2020 160,042 0.04

131,000 Rabobank 8.375% VRN 31/12/2049 143,339 0.03

52,000 Shell International Finance 2.25% 06/01/2023 49,022 0.01


184,000 Siemens Financial Services 5.25% VRN 14/09/2066 265,842 0.06

207,000 Wolters Kluwer 2.5% 13/05/2024 286,406 0.06

Russian Federation 355,292 0.08

118,000 Gazprom 9.25% 23/04/2019 137,945 0.03

175,000 Sberbank 3.3524% 15/11/2019 217,347 0.05

Spain 17,900,325 4.03

200,000 BBVA Senior Finance 2.375% 22/01/2019 280,960 0.06

238,000 Ferrovial Emisiones 3.375% 07/06/2021 350,417 0.08

200,000 Gas Natural Capital 6% 27/01/2020 331,803 0.07

200,000 Red Electrica Finance 3.875% 25/01/2022 307,700 0.07

200,000 Repsol International Finance 3.625% 07/10/2021 299,843 0.07

200,000 Santander International Debt 4% 27/03/2017 289,274 0.07

16,000 Spain (Govt) 1.4% 31/01/2020 21,431 -

27,000 Spain (Govt) 2.1% 30/04/2017 37,577 0.01

2,921,000 Spain (Govt) 2.75% 30/04/2019 4,201,656 0.95

9,000 Spain (Govt) 2.75% 31/10/2024 12,186 -

2,700,000 Spain (Govt) 3.3% 30/07/2016 3,820,127 0.86

1,014,000 Spain (Govt) 3.75% 31/10/2018 1,513,286 0.34

140,000 Spain (Govt) 3.8% 30/04/2024 208,036 0.05

9,000 Spain (Govt) 4.2% 31/01/2037 13,196 -

1,100,000 Spain (Govt) 4.4% 31/10/2023 1,712,749 0.39

112,000 Spain (Govt) 4.5% 31/01/2018 168,777 0.04

12,000 Spain (Govt) 4.7% 30/07/2041 18,560 -

1,318,000 Spain (Govt) 5.15% 31/10/2028 2,153,364 0.49

480,000 Spain (Govt) 5.15% 31/10/2044 787,370 0.18

10,000 Spain (Govt) 5.4% 31/01/2023 16,617 -

289,000 Spain (Govt) 5.75% 30/07/2032 510,596 0.11

307,000 Spain (Govt) 5.85% 31/01/2022 521,340 0.12

200,000 Telefonica Emisiones 3.987% 23/01/2023 304,378 0.07

15,000 Telefonica Emisones 7.045% 20/06/2036 19,082 -

32






Sweden 6,783,611 1.53

207,000 Nordea Bank 4.625% VRN 15/02/2022 299,238 0.07

223,000 Skandinaviska Enskilda 4% 12/09/2022 320,919 0.07

12,025,000 Sweden (Govt) 1.5% 13/11/2023 1,730,814 0.39

10,500,000 Sweden (Govt) 2.5% 12/05/2025 1,638,223 0.37

15,000,000 Sweden (Govt) 3.75% 12/08/2017 2,384,259 0.54

2,450,000 Sweden (Govt) 4.25% 12/03/2019 410,158 0.09

Switzerland 689,762 0.16

254,000 Credit Suisse 1.375% 29/11/2019 344,472 0.08

18,000 Switzerland (Govt) 3% 08/01/2018 21,823 0.01

16,000 Switzerland (Govt) 3% 12/05/2019 20,040 -

5,000 Switzerland (Govt) 3.5% 08/04/2033 7,690 -

207,000 UBS 4.75% VRN 12/02/2026 295,737 0.07

United Kingdom 3,880,392 0.87

231,000 Anglo American Capital 2.5% 18/09/2018 324,915 0.07

363,000 Barclays Bank 7.625% 21/11/2022 407,511 0.09

93,000 Barclays Bank 10% 21/05/2021 206,411 0.05

46,000 BP Capital Markets 3.125% 01/10/2015 47,354 0.01


223,000 British Telecommunications 1.125% 10/06/2019 300,042 0.07

11,000 British Telecommunications 8.625% 26/03/2020 23,909 -

223,000 Compass Group 3.125% 13/02/2019 326,949 0.07

100,000 FCE Bank 1.875% 18/04/2019 137,589 0.03

207,000 Heathrow Funding 4.375% 25/01/2017 301,674 0.07

81,000 HSBC Capital Funding 10.176% VRN PERP 121,910 0.03

207,000 HSBC Holdings 3.375% VRN 10/01/2024 293,138 0.06

70,000 HSBC Holdings 4% 30/03/2022 74,310 0.02

207,000 Mondi Finance 3.375% 28/09/2020 300,805 0.07

30,000 Royal Bank of Scotland 6.125% 15/12/2022 32,475 0.01

223,000 Standard Chartered 4% VRN 21/10/2025 318,158 0.07

10,000 Standard Life 5.314% VRN 31/12/2199 13,581 -

184,000 Vodafone Group 4.65% 20/01/2022 299,565 0.07

United States 8,525,315 1.91

73,000 21st Century Fox America 6.4% 15/12/2035 89,424 0.02

52,000 Altria Group 4% 31/01/2024 53,084 0.01

16,000 Altria Group 4.25% 09/08/2042 14,617 -

39,000 Altria Group 4.75% 05/05/2021 42,983 0.01

23,000 American Express 7% 19/03/2018 27,129 0.01

183,000 American International Group 2.3% 16/07/2019 182,158 0.04

93,000 Amgen 3.875% 15/11/2021 98,096 0.02

25,000 Anadarko Petroleum 6.375% 15/09/2017 28,552 0.01

41,000 Apple 1% 03/05/2018 39,987 0.01

147,000 Apple 2.4% 03/05/2023 138,813 0.03

26,000 AT&T 2.625% 01/12/2022 24,850 0.01

33






United States (continued)

38,000 Ball 4% 15/11/2023 35,221 0.01

169,000 Bank of America 1.875% 10/01/2019 233,864 0.05

29,000 Bank of America 2.65% 01/04/2019 29,186 0.01

54,000 Bank of America 5.7% 24/01/2022 62,192 0.01

134,000 Bank of America 6.875% 25/04/2018 156,526 0.03

41,000 Bristol Myers Squibb 2% 01/08/2022 38,160 0.01

200,000 Cargill 4.875% 29/05/2017 299,539 0.07

110,000 Central American Bank of Economic Integration 3.875% 02/09/2017 115,128 0.03

26,000 Chevron 1.718% 24/06/2018 26,133 0.01

51,000 Chevron 2.355% 05/12/2022 48,868 0.01

61,000 Cisco Systems 2.125% 01/03/2019 61,250 0.01

18,000 CIT Group 4.25% 15/08/2017 18,551 -

54,000 Citigroup 1.7% 25/07/2016 54,613 0.01

25,000 Citigroup 3.375% 01/03/2023 24,747 0.01

115,000 Citigroup 4.375% 02/11/2018 175,600 0.04

107,000 Citigroup 8.125% 15/07/2039 160,869 0.04

73,000 Comcast 6.3% 15/11/2017 84,348 0.02

74,000 CVS Caremark 1.2% 05/12/2016 74,344 0.02

16,000 CVS Caremark 5.75% 01/06/2017 17,942 -

23,000 Dominion Resources 4.45% 15/03/2021 25,118 0.01

30,000 DR Horton 3.75% 01/03/2019 30,000 0.01

32,000 ERAC USA Finance 2.8% 01/11/2018 32,865 0.01

149,000 General Electric Capital 2.25% 09/11/2015 152,193 0.03


83,000 General Motors 3.5% 02/10/2018 84,193 0.02

20,000 General Motors Financial 4.75% 15/08/2017 21,013 -

238,000 Goldman Sachs 2.5% 18/10/2021 333,628 0.07

211,000 Goldman Sachs 5.75% 24/01/2022 242,037 0.05

25,000 HCA 6.375% 15/01/2015 25,531 0.01

77,000 Hyundai Capital America 2.55% 06/02/2019 77,658 0.02

23,000 International Lease Finance 3.875% 15/04/2018 23,058 -


44,000 Johnson & Johnson 4.375% 05/12/2033 47,757 0.01

94,000 JP Morgan Chase 3.25% 23/09/2022 93,852 0.02

157,000 JP Morgan Chase 4.25% 15/10/2020 168,905 0.04

21,000 JP Morgan Chase 4.4% 22/07/2020 22,806 -

50,000 JP Morgan Chase 5.375% 28/09/2016 90,428 0.02

21,000 KB Home 4.75% 15/05/2019 21,039 -

255,000 Kilroy Realty 4.25% 15/08/2029 253,044 0.06

30,000 Kroger 2.3% 15/01/2019 30,146 0.01

73,000 Kroger 6.4% 15/08/2017 83,246 0.02

8,000 Ladder Capital Finance Holdings 7.375% 01/10/2017 8,570 -

294,000 Metropolitan Life Global Funding I 3% 10/01/2023 289,602 0.06

34







184,000 Microsoft 3.125% 06/12/2028 272,687 0.06

13,000 Morgan Stanley 3.75% 25/02/2023 13,175 -

200,000 Morgan Stanley 5.375% 10/08/2020 326,566 0.07

8,000 Motiva Enterprises 5.75% 15/01/2020 3,399 -

281,000 New York Life Global Funding 2.15% 18/06/2019 281,393 0.06

45,000 Newfield Exploration 5.625% 01/07/2024 49,078 0.01

37,000 Noble Energy 5.25% 15/11/2043 40,233 0.01

207,000 Oracle 3.125% 10/07/2025 309,838 0.07

52,000 Penske Truck Leasing 2.5% 15/03/2016 53,254 0.01

500,000 Philip Morris International 1.875% 15/01/2019 496,103 0.11


27,000 PNC Funding 3.3% 08/03/2022 27,476 0.01

207,000 Prologis 3.375% 20/02/2024 299,477 0.07

83,000 Prudential Financial 4.75% 17/09/2015 86,758 0.02


25,000 Republic Services 3.55% 01/06/2022 25,764 0.01


55,000 Reynolds America 1.05% 30/10/2015 55,013 0.01

18,000 SLM 6% 25/01/2017 19,305 -

890,000 Target 2.3% 26/06/2019 893,961 0.20

30,000 Time Warner 3.55% 01/06/2024 29,563 0.01

1,684 US (Govt) 2.5% 20/05/2043 1,559 -

1,730 US (Govt) 3% 20/10/2043 1,670 -

1,684 US (Govt) 3.5% 20/10/2043 1,676 -

37,000 Verizon Communications 3.65% 14/09/2018 39,495 0.01





16,000 Viacom 3.875% 01/04/2024 16,082 -

94,000 Wal-Mart Stores 1.95% 15/12/2018 94,449 0.02

25,000 Wells Fargo 3.5% 08/03/2022 25,788 0.01

53,000 WM Wrigley 2% 20/10/2017 53,673 0.01

Venezuela 142,683 0.03

134,000 Corp Andina de Fomento 4.375% 15/06/2022 142,683 0.03

Treasury Bill 77,943,706 17.56

Japan 194,486 0.04

20,000,000 Japan (Govt) 0% 04/08/2014 194,486 0.04


2,100,000 UK (Govt) 1.25% 22/07/2018 3,474,591 0.78

46,900 UK (Govt) 1.75% 22/07/2019 78,212 0.02

67,200 UK (Govt) 2% 22/01/2016 115,377 0.03

1,615,500 UK (Govt) 2.25% 07/09/2023 2,644,929 0.60

35






United Kingdom (continued)

1,893,900 UK (Govt) 3.25% 22/01/2044 3,164,184 0.71

1,770,000 UK (Govt) 3.75% 07/09/2020 3,256,056 0.73

1,600,000 UK (Govt) 4% 07/09/2016 2,868,259 0.65

820,000 UK (Govt) 4% 22/01/2060 1,632,975 0.37

1,784,200 UK (Govt) 4.25% 07/12/2027 3,451,166 0.78

8,700 UK (Govt) 4.25% 07/06/2032 16,953 -

1,978,000 UK (Govt) 4.25% 07/03/2036 3,871,949 0.87

127,700 UK (Govt) 5% 07/03/2025 260,336 0.06


229,900 US (Govt) 0.25% 30/09/2014 229,981 0.05

672,200 US (Govt) 0.25% 15/01/2015 672,791 0.15

1,800,000 US (Govt) 0.25% 31/05/2015 1,802,320 0.41

2,800,000 US (Govt) 0.25% 15/05/2016 2,789,773 0.63

2,800,000 US (Govt) 0.875% 15/04/2017 2,797,539 0.63

4,070,000 US (Govt) 0.875% 15/06/2017 4,056,645 0.91

4,000,000 US (Govt) 0.875% 15/07/2017 3,983,984 0.90

3,150,000 US (Govt) 1% 31/05/2018 3,097,582 0.70

183,800 US (Govt) 1.25% 30/11/2018 180,982 0.04

4,680,000 US (Govt) 1.375% 31/05/2020 4,520,222 1.02

407,400 US (Govt) 1.5% 31/12/2018 404,862 0.09

8,280,000 US (Govt) 1.625% 30/06/2019 8,227,118 1.85

672,200 US (Govt) 2.375% 31/08/2014 673,474 0.15

537,800 US (Govt) 2.5% 15/08/2023 538,430 0.12

7,720,000 US (Govt) 2.5% 15/05/2024 7,678,384 1.73

99,800 US (Govt) 2.75% 15/11/2023 101,817 0.02

99,400 US (Govt) 2.875% 15/05/2043 91,186 0.02

4,710,000 US (Govt) 3.375% 15/05/2044 4,759,676 1.07

3,300,000 US (Govt) 3.5% 15/02/2018 3,549,047 0.80

704,500 US (Govt) 3.625% 15/02/2044 746,055 0.17

268,900 US (Govt) 4.25% 15/05/2039 316,404 0.07

672,200 US (Govt) 4.625% 15/11/2016 732,344 0.17

490,000 US (Govt) 6.125% 15/11/2027 670,295 0.15

215,100 US (Govt) 7.25% 15/08/2022 293,322 0.07

Transferable Securities Traded on Another Regulated Market 300 -

Treasury Bill 300 -

United States 300 -

200 US (Govt) 0% 21/08/2014 200 -

100 US (Govt) 0% 02/01/2015 100 -

36






Units of eligible UCITS and UCI's within the meaning of article 41 (1) e

of the Luxembourg Law of 17 December 2010 215,658,513 48.60

Collective Investment Schemes 215,658,513 48.60

Ireland 33,633,443 7.58

1,652,814 HSBC ESI Worldwide Equity ETF 24,688,909 5.56

127,524 Vanguard FTSE All-World ETF 8,944,534 2.02

Luxembourg 139,849,230 31.52

982,662 HGIF Global Emerging Markets Bond Fund 21,447,575 4.83

1,837,580 HGIF Global Emerging Markets Local Debt 21,545,630 4.86

7,400,000 HGIF Global Government Bond "ZC" 74,399,600 16.77

580,971 HSBC International Select Fund - Global Real Estate Equity "X" 9,159,647 2.06

913,981 HSBC International Select Fund - MultiAlpha Global High Yield Bond "X" 13,296,778 3.00


21,409,499 FTSE All World Index "Institutional Acc" 35,997,448 8.11

1,382,000 HSBC Corporate Bond Fund "Institutional Acc" 6,178,392 1.39

Other Transferable Securities 7,348 -

Shares 7,348 -

Italy 177 -

241 Banca Popolare Dell'Emilia Romagna Rights 177 -

Portugal 946 -

11,225 Banco Comercial Portugues Rights 946 -

South Africa 94 -

703 Steinhoff International Holdings Rights 94 -

Spain 6,131 -

1,068 ACS Actividades De Construction Y Servicios Rights 933 -

2,271 Banco Popular Espanol Rights 30 -

16,196 Banco Santander Rights 3,402 -

1,237 Ferrovial Rights 457 -

8,733 Iberdrola Rights 1,309 -

Total Investments 405,948,171 91.48

Other Net Assets 37,787,201 8.52

Net Assets 443,735,372 100.00

37






Shares 41,954 0.01

Japan 24,267 0.01




Bonds 110,098,638 22.40

Australia 9,755,620 1.98

710,000 Australia (Govt) 2.75% 21/04/2024 619,003 0.12

1,810,000 Australia (Govt) 3.25% 21/10/2018 1,703,858 0.35

1,350,000 Australia (Govt) 3.25% 21/04/2029 1,167,382 0.24

1,838,000 Australia (Govt) 4.75% 15/06/2016 1,774,671 0.36

1,090,000 Australia (Govt) 5.75% 15/05/2021 1,167,872 0.24

890,000 Australia (Govt) 5.75% 15/07/2022 963,810 0.20


40,000 Incitec Pivot 4% 07/12/2015 41,437 0.01




Austria 1,706,097 0.35

423,000 OMV 6.75% VRN PERP 642,310 0.13



Belgium 2,363,838 0.48



27,000 Anheuser-Busch InBev Worldwide 2.5% 15/07/2022 25,982 -

50,800 Belgium (Govt) 1.25% 22/06/2018 70,495 0.02

180,000 Belgium (Govt) 2.25% 22/06/2023 258,885 0.05

4,000 Belgium (Govt) 2.6% 22/06/2024 5,861 -

430,300 Belgium (Govt) 3.5% 28/06/2017 631,571 0.13

99,400 Belgium (Govt) 3.75% 22/06/2045 165,418 0.03

230,800 Belgium (Govt) 4.25% 28/09/2022 382,696 0.08

11,800 Belgium (Govt) 5% 28/03/2035 22,548 0.01

Brazil 32,464 0.01

33,000 Vale 5.625% 11/09/2042 32,464 0.01


38






Canada 6,299,962 1.28

1,081,000 Bank of Montreal 1.3% 14/07/2017 1,080,211 0.22


60,000 Bombardier 4.75% 15/04/2019 58,463 0.01

1,873,000 Canada (Govt) 1% 01/05/2016 1,717,572 0.35

116,000 Canada (Govt) 1.25% 01/02/2016 106,833 0.02

68,000 Canada (Govt) 1.25% 01/03/2018 62,239 0.01

258,000 Canada (Govt) 1.75% 01/03/2019 239,203 0.05

922,000 Canada (Govt) 1.75% 01/09/2019 852,049 0.17

760,000 Canada (Govt) 2.5% 01/06/2024 717,649 0.15

560,000 Canada (Govt) 2.75% 01/06/2022 543,917 0.11

580,000 Canada (Govt) 3.5% 01/12/2045 620,387 0.13

151,000 Canada (Govt) 3.75% 01/06/2019 152,834 0.03

24,000 Canada (Govt) 4% 01/06/2041 27,355 0.01

11,000 Canada (Govt) 5.75% 01/06/2033 14,806 -

30,000 Videotron 5.375% 15/06/2024 30,413 0.01

China 662,197 0.13


Denmark 1,812,571 0.37


455,000 Danske Bank 3.875% VRN 04/10/2023 652,589 0.13

2,207,800 Denmark (Govt) 1.5% 15/11/2023 406,120 0.08

850,000 Denmark (Govt) 2.5% 15/11/2016 160,927 0.03

93,200 Denmark (Govt) 4% 15/11/2019 19,806 0.01

22,100 Denmark (Govt) 4.5% 15/11/2039 5,818 -

France 13,500,369 2.75

329,000 Axa 5.777% VRN PERP 464,539 0.09

22,000 BNP Paribas 5.75% 24/01/2022 41,220 0.01

450,000 Bouygues 4% 12/02/2018 666,489 0.14

400,000 BPCE 3% 19/07/2024 583,494 0.12









752,700 France (Govt) 1% 25/05/2019 1,033,635 0.21

576,600 France (Govt) 2.25% 25/05/2024 827,895 0.17

31,300 France (Govt) 2.5% 25/05/2030 43,987 0.01

248,500 France (Govt) 3% 25/04/2022 381,057 0.08

39






France (continued)

663,600 France (Govt) 3.25% 25/04/2016 936,762 0.19

31,700 France (Govt) 3.25% 25/05/2045 48,793 0.01

180,000 France (Govt) 4% 25/10/2038 311,217 0.06

400,000 GDF Suez 4.75% VRN PERP 588,846 0.12

400,000 Gecina 4.75% 11/04/2019 617,848 0.13

300,000 Groupe Auchan 3.625% 19/10/2018 447,535 0.09

423,000 Orange 4.25% VRN PERP 585,772 0.12

104,000 Orange 8.125% 20/11/2028 243,774 0.05

500,000 Pernod Ricard 2% 22/06/2020 690,080 0.14

470,000 RCI Banque 2.25% 29/03/2021 654,408 0.13

17,000 RCI Banque 3% 09/05/2019 28,866 0.01

44,000 RCI Banque 4.375% 27/01/2015 59,927 0.01

392,000 Saint Gobain 4.5% 30/09/2019 612,378 0.12


450,000 Vinci 6.25% VRN PERP 636,944 0.13

Germany 5,304,138 1.08

300,000 Allianz Finance 5.75% 08/07/2041 470,262 0.10

517,000 Bayer 3% VRN 01/07/2075 699,549 0.14

11,000 Daimler 1.75% 08/11/2017 18,431 -

470,000 Daimler 2% 25/06/2021 657,244 0.13

13,000 Daimler 2.25% 24/01/2022 18,395 -






Ireland 615,055 0.13


Italy 11,027,765 2.24

392,000 Atlantia 4.5% 08/02/2019 602,153 0.12

455,000 ENI 3.5% 29/01/2018 666,683 0.14

486,000 Intesa Sanpaolo 2% 18/06/2021 653,415 0.13

65,000 Italy (Govt) 1.15% 15/05/2017 87,955 0.02

200,000 Italy (Govt) 2.25% 15/05/2016 276,031 0.06

90,000 Italy (Govt) 3% 01/11/2015 124,346 0.02

736,000 Italy (Govt) 3.5% 01/06/2018 1,076,268 0.22

61,000 Italy (Govt) 3.75% 01/09/2024 89,303 0.02

190,000 Italy (Govt) 4.25% 01/02/2019 288,643 0.06

600,000 Italy (Govt) 4.25% 01/03/2020 922,160 0.19

80,000 Italy (Govt) 4.5% 15/07/2015 111,206 0.02

250,000 Italy (Govt) 4.5% 01/05/2023 388,196 0.08

111,000 Italy (Govt) 4.5% 01/03/2024 172,708 0.03

40






Italy (continued)

707,000 Italy (Govt) 4.75% 15/09/2016 1,028,942 0.21

26,000 Italy (Govt) 4.75% 01/06/2017 38,655 0.01

806,000 Italy (Govt) 4.75% 01/09/2028 1,266,430 0.26

316,000 Italy (Govt) 4.75% 01/09/2044 491,483 0.10

137,000 Italy (Govt) 5% 01/03/2022 220,188 0.04

70,000 Italy (Govt) 5% 01/08/2039 112,843 0.02

346,000 Italy (Govt) 5.5% 01/09/2022 572,963 0.12

423,000 SNAM 3.875% 19/03/2018 624,762 0.13

423,000 Terna 2.875% 16/02/2018 605,063 0.12

423,000 Unicredit 3.25% 14/01/2021 607,369 0.12

Japan 3,943,569 0.80

72,000,000 Japan (Govt) 0.1% 15/06/2016 700,645 0.14

22,000,000 Japan (Govt) 0.2% 20/03/2019 214,535 0.04

13,050,000 Japan (Govt) 0.3% 20/03/2017 127,640 0.03

60,000,000 Japan (Govt) 0.9% 20/03/2022 608,224 0.12

81,450,000 Japan (Govt) 1.3% 20/03/2019 834,384 0.17

20,500,000 Japan (Govt) 1.7% 20/03/2044 200,638 0.04

51,500,000 Japan (Govt) 1.9% 20/09/2030 562,546 0.12

62,100,000 Japan (Govt) 2.1% 20/12/2030 694,957 0.14

Jersey 210,945 0.04

100,000 CPUK Finance 7.239% 28/02/2024 210,945 0.04


24,000 Arcelormittal 5.5% 01/03/2021 25,170 -


Mexico 557,271 0.12




423,000 ABN Amro Bank 7.125% 06/07/2022 731,205 0.15



517,000 BMW Finance 1.625% 17/07/2019 719,070 0.15

20,000 BMW Finance 1.75% 20/11/2017 33,539 0.01


100,000 E.ON International Finance 5.875% 30/10/2037 200,158 0.04

400,000 ELM 5.252% VRN PERP 562,487 0.11

41






Netherlands (continued)


500,000 Hit Finance 5.75% 09/03/2018 779,362 0.16


408,000 ING Bank 4.25% 13/01/2017 593,466 0.12


86,000 Koninklijke KPN 4% 22/06/2015 118,648 0.02

408,000 Koninklijke KPN 7.5% 04/02/2019 697,739 0.14



130,000 Netherlands (Govt) 2% 15/07/2024 184,285 0.04



533,000 Rabobank 2.5% VRN 26/05/2026 711,781 0.15


144,000 Rabobank 8.375% VRN 31/12/2049 157,563 0.03




423,000 Wolters Kluwer 2.5% 13/05/2024 585,265 0.12


130,000 Gazprom 9.25% 23/04/2019 151,974 0.03

192,000 Sberbank 3.3524% 15/11/2019 238,461 0.05

Spain 12,893,039 2.62







18,000 Spain (Govt) 1.4% 31/01/2020 24,111 0.01

29,000 Spain (Govt) 2.1% 30/04/2017 40,361 0.01

528,000 Spain (Govt) 2.75% 30/04/2019 759,491 0.15

10,000 Spain (Govt) 2.75% 31/10/2024 13,540 -

1,400,000 Spain (Govt) 3.3% 30/07/2016 1,980,807 0.40

1,112,000 Spain (Govt) 3.75% 31/10/2018 1,659,540 0.34

154,000 Spain (Govt) 3.8% 30/04/2024 228,839 0.05

10,000 Spain (Govt) 4.2% 31/01/2037 14,663 -

590,000 Spain (Govt) 4.4% 31/10/2023 918,656 0.19

123,000 Spain (Govt) 4.5% 31/01/2018 185,353 0.04

13,000 Spain (Govt) 4.7% 30/07/2041 20,106 -

744,000 Spain (Govt) 5.15% 31/10/2028 1,215,556 0.25

110,000 Spain (Govt) 5.15% 31/10/2044 180,439 0.04

10,000 Spain (Govt) 5.4% 31/01/2023 16,617 -

317,000 Spain (Govt) 5.75% 30/07/2032 560,066 0.11

336,000 Spain (Govt) 5.85% 31/01/2022 570,587 0.12



42






Sweden 4,380,348 0.89

423,000 Nordea Bank 4.625% VRN 15/02/2022 611,487 0.13


6,535,000 Sweden (Govt) 1.5% 13/11/2023 940,613 0.19

5,300,000 Sweden (Govt) 3.75% 12/08/2017 842,438 0.17

2,685,000 Sweden (Govt) 4.25% 12/03/2019 449,500 0.09

5,650,000 Sweden (Govt) 2.5% 12/05/2025 881,520 0.18

Switzerland 1,359,966 0.28

517,000 Credit Suisse 1.375% 29/11/2019 701,150 0.14



5,000 Switzerland (Govt) 3.5% 08/04/2033 7,690 -

423,000 UBS 4.75% VRN 12/02/2026 604,333 0.12



398,000 Barclays Bank 7.625% 21/11/2022 446,803 0.09

103,000 Barclays Bank 10% 21/05/2021 228,606 0.05





455,000 Compass Group 3.125% 13/02/2019 667,094 0.14

204,000 FCE Bank 1.875% 18/04/2019 280,682 0.06




77,000 HSBC Holdings 4% 30/03/2022 81,741 0.02

423,000 Mondi Finance 3.375% 28/09/2020 614,687 0.12

100,000 Peabody Capital 5.25% 17/03/2043 196,909 0.04

100,000 Reed Elsevier Investments 2.75% 01/08/2019 168,463 0.03


100,000 Severn Trent Utilities Finance 6.25% 07/06/2029 207,083 0.04



376,000 Vodafone Group 4.65% 20/01/2022 612,155 0.12



57,000 Altria Group 4% 31/01/2024 58,188 0.01

18,000 Altria Group 4.25% 09/08/2042 16,445 -

42,000 Altria Group 4.75% 05/05/2021 46,289 0.01


427,000 American International Group 2.3% 16/07/2019 425,036 0.09

43







103,000 Amgen 3.875% 15/11/2021 108,644 0.02


44,000 Apple 1% 03/05/2018 42,913 0.01

162,000 Apple 2.4% 03/05/2023 152,977 0.03

29,000 AT&T 2.625% 01/12/2022 27,717 0.01

42,000 Ball 4% 15/11/2023 38,929 0.01

345,000 Bank of America 1.875% 10/01/2019 477,416 0.10

32,000 Bank of America 2.65% 01/04/2019 32,205 0.01

59,000 Bank of America 5.7% 24/01/2022 67,950 0.01

147,000 Bank of America 6.875% 25/04/2018 171,711 0.03


400,000 Cargill 4.875% 29/05/2017 599,079 0.12


29,000 Chevron 1.718% 24/06/2018 29,148 0.01

56,000 Chevron 2.355% 05/12/2022 53,660 0.01

67,000 Cisco Systems 2.125% 01/03/2019 67,274 0.01

20,000 CIT Group 4.25% 15/08/2017 20,613 -

60,000 Citigroup 1.7% 25/07/2016 60,681 0.01

27,000 Citigroup 3.375% 01/03/2023 26,727 0.01

235,000 Citigroup 4.375% 02/11/2018 358,835 0.07

117,000 Citigroup 8.125% 15/07/2039 175,903 0.04

80,000 Comcast 6.3% 15/11/2017 92,436 0.02

81,000 CVS Caremark 1.2% 05/12/2016 81,376 0.02

18,000 CVS Caremark 5.75% 01/06/2017 20,185 -

100,000 Directv Holdings 5.2% 18/11/2033 181,094 0.04


33,000 DR Horton 3.75% 01/03/2019 33,000 0.01

35,000 ERAC USA Finance 2.8% 01/11/2018 35,946 0.01



91,000 General Motors 3.5% 02/10/2018 92,308 0.02


486,000 Goldman Sachs 2.5% 18/10/2021 681,273 0.14

232,000 Goldman Sachs 5.75% 24/01/2022 266,126 0.05

27,000 HCA 6.375% 15/01/2015 27,574 0.01




48,000 Johnson & Johnson 4.375% 05/12/2033 52,099 0.01

103,000 JP Morgan Chase 3.25% 23/09/2022 102,838 0.02

172,000 JP Morgan Chase 4.25% 15/10/2020 185,043 0.04

23,000 JP Morgan Chase 4.4% 22/07/2020 24,978 -

50,000 JP Morgan Chase 5.375% 28/09/2016 90,428 0.02

23,000 KB Home 4.75% 15/05/2019 23,043 -

44







525,000 Kilroy Realty 4.25% 15/08/2029 520,973 0.11

33,000 Kroger 2.3% 15/01/2019 33,161 0.01

80,000 Kroger 6.4% 15/08/2017 91,229 0.02



376,000 Microsoft 3.125% 06/12/2028 557,230 0.11

14,000 Morgan Stanley 3.75% 25/02/2023 14,188 -

400,000 Morgan Stanley 5.375% 10/08/2020 653,131 0.13




41,000 Noble Energy 5.25% 15/11/2043 44,583 0.01

423,000 Oracle 3.125% 10/07/2025 633,147 0.13


1,025,000 Philip Morris International 1.875% 15/01/2019 1,017,010 0.21


30,000 PNC Funding 3.3% 08/03/2022 30,528 0.01

423,000 Prologis 3.375% 20/02/2024 611,974 0.12






20,000 SLM 6% 25/01/2017 21,450 -

2,110,000 Target 2.3% 26/06/2019 2,119,390 0.43

33,000 Time Warner 3.55% 01/06/2024 32,519 0.01

1,847 US (Govt) 2.5% 20/05/2043 1,710 -

1,898 US (Govt) 3% 20/10/2043 1,832 -

1,847 US (Govt) 3.5% 20/10/2043 1,838 -




23,000 Verizon Communications 5.15% 15/09/2023 25,589 -


18,000 Viacom 3.875% 01/04/2024 18,092 -

103,000 Wal-Mart Stores 1.95% 15/12/2018 103,492 0.02

28,000 Wells Fargo 3.5% 08/03/2022 28,883 0.01

59,000 WM Wrigley 2% 20/10/2017 59,749 0.01



Treasury Bill 100,219,977 20.39

Japan 194,486 0.04

20,000,000 Japan (Govt) 0% 04/08/2014 194,486 0.04

45







1,070,000 UK (Govt) 1.25% 22/07/2018 1,770,387 0.36

2,581,500 UK (Govt) 1.75% 22/07/2019 4,304,977 0.88

73,700 UK (Govt) 2% 22/01/2016 126,537 0.03

3,157,200 UK (Govt) 2.25% 07/09/2023 5,169,031 1.05

2,879,600 UK (Govt) 3.25% 22/01/2044 4,811,017 0.98

970,000 UK (Govt) 3.75% 07/09/2020 1,784,392 0.36

810,000 UK (Govt) 4% 07/09/2016 1,452,056 0.30

450,000 UK (Govt) 4% 22/01/2060 896,145 0.18

904,500 UK (Govt) 4.25% 07/12/2027 1,749,568 0.36

9,500 UK (Govt) 4.25% 07/06/2032 18,512 -

1,065,400 UK (Govt) 4.25% 07/03/2036 2,085,528 0.42

140,100 UK (Govt) 5% 07/03/2025 285,616 0.06


2,300,000 US (Govt) 0.25% 15/05/2016 2,291,600 0.47

2,700,000 US (Govt) 0.875% 15/04/2017 2,697,627 0.55

9,690,000 US (Govt) 0.875% 15/06/2017 9,658,205 1.96

9,480,000 US (Govt) 0.875% 15/07/2017 9,442,043 1.92

1,970,000 US (Govt) 1% 31/05/2018 1,937,218 0.39

201,700 US (Govt) 1.25% 30/11/2018 198,607 0.04

2,520,000 US (Govt) 1.375% 31/05/2020 2,433,966 0.49

446,900 US (Govt) 1.5% 31/12/2018 444,116 0.09

19,820,000 US (Govt) 1.625% 30/06/2019 19,693,415 4.01

590,000 US (Govt) 2.5% 15/08/2023 590,691 0.12

14,670,000 US (Govt) 2.5% 15/05/2024 14,590,920 2.97

109,500 US (Govt) 2.75% 15/11/2023 111,713 0.02

109,100 US (Govt) 2.875% 15/05/2043 100,084 0.02

7,420,000 US (Govt) 3.375% 15/05/2044 7,498,258 1.53

1,150,000 US (Govt) 3.5% 15/02/2018 1,236,789 0.25

772,800 US (Govt) 3.625% 15/02/2044 818,383 0.17

295,000 US (Govt) 4.25% 15/05/2039 347,115 0.07

737,500 US (Govt) 4.625% 15/11/2016 803,486 0.16

260,000 US (Govt) 6.125% 15/11/2027 355,667 0.07

236,000 US (Govt) 7.25% 15/08/2022 321,822 0.07


Treasury Bill 300 -

United States 300 -

200 US (Govt) 0% 21/08/2014 200 -

100 US (Govt) 0% 02/01/2015 100 -

46









Ireland 44,457,756 9.05



Luxembourg 113,586,140 23.10

1,450,000 HGIF Global Corporate Bond "ZC" 14,539,150 2.96

1,082,241 HGIF Global Emerging Markets Bond Fund 23,620,999 4.80



1,231,075 HSBC International Select Fund - Global Real Estate Equity "X" 19,409,253 3.95

1,195,277 HSBC International Select Fund - MultiAlpha Global High Yield Bond "X" 17,389,123 3.53




Shares 11,609 -

Italy 255 -


Portugal 1,357 -

16,102 Banco Comercial Portugues Rights 1,357 -

South Africa 156 -

1,172 Steinhoff International Holdings Rights 156 -

Spain 9,841 -

1,609 ACS Actividades De Construction Y Servicios Rights 1,406 -



1,939 Ferrovial Rights 716 -




Net Assets 491,598,414 100.00

47

Schedule of Investments and Other Net Assetsas at 31 July 2014 (continued)





Shares 54,829 -

Japan 27,734 -

800 Fuso Chemical 27,734 -



Bonds 66,894,272 10.62

Australia 2,200,792 0.35


52,000 Incitec Pivot 4% 07/12/2015 53,868 0.01



Austria 1,706,097 0.27

423,000 OMV 6.75% VRN PERP 642,310 0.10



Belgium 860,185 0.13




Brazil 41,318 0.01

42,000 Vale 5.625% 11/09/2042 41,318 0.01

Canada 237,167 0.04


77,000 Bombardier 4.75% 15/04/2019 75,027 0.01


38,000 Videotron 5.375% 15/06/2024 38,522 0.01

China 662,197 0.11


Denmark 1,219,900 0.19


455,000 Danske Bank 3.875% VRN 04/10/2023 652,589 0.10

48





France 10,185,533 1.62

329,000 Axa 5.777% VRN PERP 464,539 0.07

28,000 BNP Paribas 5.75% 24/01/2022 52,461 0.01

450,000 Bouygues 4% 12/02/2018 666,489 0.10

400,000 BPCE 3% 19/07/2024 583,494 0.09








114,000 Electricite de France 5.25% VRN PERP 116,160 0.02


400,000 GDF Suez 4.75% VRN PERP 588,846 0.09

400,000 Gecina 4.75% 11/04/2019 617,848 0.10

300,000 Groupe Auchan 3.625% 19/10/2018 447,535 0.07

423,000 Orange 4.25% VRN PERP 585,772 0.09

104,000 Orange 8.125% 20/11/2028 243,774 0.04

500,000 Pernod Ricard 2% 22/06/2020 690,080.00 0.11

470,000 RCI Banque 2.25% 29/03/2021 654,408 0.10

22,000 RCI Banque 3% 09/05/2019 37,356 0.01

56,000 RCI Banque 4.375% 27/01/2015 76,271 0.01

392,000 Saint Gobain 4.5% 30/09/2019 612,378 0.10


450,000 Vinci 6.25% VRN PERP 636,944 0.10

Germany 5,315,085 0.84

300,000 Allianz Finance 5.75% 08/07/2041 470,262 0.08

517,000 Bayer 3% VRN 01/07/2075 699,549 0.11

15,000 Daimler 1.75% 08/11/2017 25,133 -

470,000 Daimler 2% 25/06/2021 657,244 0.10

16,000 Daimler 2.25% 24/01/2022 22,640 -






Ireland 615,055 0.10


49





Italy 3,759,446 0.60

392,000 Atlantia 4.5% 08/02/2019 602,153 0.09

455,000 ENI 3.5% 29/01/2018 666,683 0.11

486,000 Intesa Sanpaolo 2% 18/06/2021 653,415 0.10

423,000 SNAM 3.875% 19/03/2018 624,762 0.10

423,000 Terna 2.875% 16/02/2018 605,063 0.10

423,000 Unicredit 3.25% 14/01/2021 607,370 0.10

Jersey 210,945 0.03

100,000 CPUK Finance 7.239% 28/02/2024 210,945 0.03


31,000 Arcelormittal 5.5% 01/03/2021 32,511 -


Mexico 572,645 0.09




423,000 ABN Amro Bank 7.125% 06/07/2022 731,205 0.12



517,000 BMW Finance 1.625% 17/07/2019 719,070 0.11

25,000 BMW Finance 1.75% 20/11/2017 41,924 0.01


400,000 ELM 5.252% VRN PERP 562,487 0.09


500,000 Hit Finance 5.75% 09/03/2018 779,362 0.12


408,000 ING Bank 4.25% 13/01/2017 593,466 0.09


110,000 Koninklijke KPN 4% 22/06/2015 151,759 0.02

408,000 Koninklijke KPN 7.5% 04/02/2019 697,739 0.11


533,000 Rabobank 2.5% VRN 26/05/2026 711,781 0.11


184,000 Rabobank 8.375% VRN 31/12/2049 201,331 0.03




423,000 Wolters Kluwer 2.5% 13/05/2024 585,265 0.09

50





Qatar 229,391 0.04

219,000 Ooredoo International Finance 3.375% 14/10/2016 229,391 0.04


166,000 Gazprom 9.25% 23/04/2019 194,058 0.03

245,000 Sberbank 3.3524% 15/11/2019 304,287 0.05

Spain 5,226,210 0.83







405,000 Spain (Govt) 5.75% 30/07/2032 715,542 0.11



Sweden 1,469,271 0.23

423,000 Nordea Bank 4.625% VRN 15/02/2022 611,487 0.10


113,000 Svenska Handelsbanken 4% 18/01/2019 202,994 0.03

Switzerland 1,305,483 0.21

517,000 Credit Suisse 1.375% 29/11/2019 701,150 0.11

423,000 UBS 4.75% VRN 12/02/2026 604,333 0.10



509,000 Barclays Bank 7.625% 21/11/2022 571,414 0.09

131,000 Barclays Bank 10% 21/05/2021 290,751 0.05






455,000 Compass Group 3.125% 13/02/2019 667,094 0.11

204,000 FCE Bank 1.875% 18/04/2019 280,682 0.04




98,000 HSBC Holdings 4% 30/03/2022 104,034 0.02

423,000 Mondi Finance 3.375% 28/09/2020 614,688 0.10

100,000 Peabody Capital 5.25% 17/03/2043 196,909 0.03

100,000 Reed Elsevier Investments 2.75% 01/08/2019 168,463 0.03

51





United Kingdom (continued)




376,000 Vodafone Group 4.65% 20/01/2022 612,155 0.10



73,000 Altria Group 4% 31/01/2024 74,522 0.01

23,000 Altria Group 4.25% 09/08/2042 21,012 -

54,000 Altria Group 4.75% 05/05/2021 59,514 0.01


131,000 Amgen 3.875% 15/11/2021 138,179 0.02


57,000 Apple 1% 03/05/2018 55,592 0.01

207,000 Apple 2.4% 03/05/2023 195,471 0.03

37,000 AT&T 2.625% 01/12/2022 35,363 0.01

54,000 Ball 4% 15/11/2023 50,051 0.01

345,000 Bank of America 1.875% 10/01/2019 477,416 0.08

40,000 Bank of America 2.65% 01/04/2019 40,256 0.01

76,000 Bank of America 5.7% 24/01/2022 87,529 0.01

187,000 Bank of America 6.875% 25/04/2018 218,436 0.03


400,000 Cargill 4.875% 29/05/2017 599,079 0.09


37,000 Chevron 1.718% 24/06/2018 37,189 0.01

71,000 Chevron 2.355% 05/12/2022 68,033 0.01

86,000 Cisco Systems 2.125% 01/03/2019 86,352 0.01

25,000 CIT Group 4.25% 15/08/2017 25,766 -

76,000 Citigroup 1.7% 25/07/2016 76,863 0.01

35,000 Citigroup 3.375% 01/03/2023 34,646 0.01

235,000 Citigroup 4.375% 02/11/2018 358,835 0.06

150,000 Citigroup 8.125% 15/07/2039 225,517 0.04

103,000 Comcast 6.3% 15/11/2017 119,012 0.02

104,000 CVS Caremark 1.2% 05/12/2016 104,483 0.02

23,000 CVS Caremark 5.75% 01/06/2017 25,792 -

100,000 Directv Holdings 5.2% 18/11/2033 181,094 0.03


43,000 DR Horton 3.75% 01/03/2019 43,000 0.01

45,000 ERAC USA Finance 2.8% 01/11/2018 46,216 0.01



117,000 General Motors 3.5% 02/10/2018 118,682 0.02


52






486,000 Goldman Sachs 2.5% 18/10/2021 681,273 0.11

297,000 Goldman Sachs 5.75% 24/01/2022 340,687 0.05

35,000 HCA 6.375% 15/01/2015 35,744 0.01




62,000 Johnson & Johnson 4.375% 05/12/2033 67,294 0.01

132,000 JP Morgan Chase 3.25% 23/09/2022 131,793 0.02

220,000 JP Morgan Chase 4.25% 15/10/2020 236,683 0.04

30,000 JP Morgan Chase 4.4% 22/07/2020 32,580 -

100,000 JP Morgan Chase 5.375% 28/09/2016 180,856 0.03

29,000 KB Home 4.75% 15/05/2019 29,054 -

525,000 Kilroy Realty 4.25% 15/08/2029 520,973 0.08

43,000 Kroger 2.3% 15/01/2019 43,209 0.01

102,000 Kroger 6.4% 15/08/2017 116,317 0.02



376,000 Microsoft 3.125% 06/12/2028 557,230 0.09

18,000 Morgan Stanley 3.75% 25/02/2023 18,242 -

400,000 Morgan Stanley 5.375% 10/08/2020 653,131 0.10

103,000 Morgan Stanley 5.625% 23/09/2019 117,366 0.02




52,000 Noble Energy 5.25% 15/11/2043 56,544 0.01

423,000 Oracle 3.125% 10/07/2025 633,147 0.10



38,000 PNC Funding 3.3% 08/03/2022 38,669 0.01

423,000 Prologis 3.375% 20/02/2024 611,974 0.10






26,000 SLM 6% 25/01/2017 27,885 -

42,000 Time Warner 3.55% 01/06/2024 41,388 0.01

2,360 US (Govt) 2.5% 20/05/2043 2,185 -

2,425 US (Govt) 3% 20/10/2043 2,340 -

2,360 US (Govt) 3.5% 20/10/2043 2,349 -


53











23,000 Viacom 3.875% 01/04/2024 23,117 -

132,000 Wal-Mart Stores 1.95% 15/12/2018 132,631 0.02

35,000 Wells Fargo 3.5% 08/03/2022 36,104 0.01

75,000 WM Wrigley 2% 20/10/2017 75,953 0.01





65,800 UK (Govt) 1.75% 22/07/2019 109,730 0.02

1,586,100 UK (Govt) 2.25% 07/09/2023 2,596,795 0.41

341,900 UK (Govt) 3.25% 22/01/2044 571,221 0.09

1,912,200 UK (Govt) 4.25% 07/06/2032 3,726,116 0.59

76,000 UK (Govt) 4.25% 07/12/2027 147,006 0.02

179,000 UK (Govt) 5% 07/03/2025 364,919 0.06


322,200 US (Govt) 0.25% 30/09/2014 322,313 0.05

942,100 US (Govt) 0.25% 15/01/2015 942,928 0.15

27,900 US (Govt) 0.375% 15/07/2023 28,975 0.01

257,600 US (Govt) 1.25% 30/11/2018 253,651 0.04

570,900 US (Govt) 1.5% 31/12/2018 567,343 0.09

942,100 US (Govt) 2.375% 31/08/2014 943,885 0.15

753,700 US (Govt) 2.5% 15/08/2023 754,583 0.12

3,774,600 US (Govt) 2.75% 15/11/2023 3,850,903 0.61

4,839,400 US (Govt) 2.875% 15/05/2043 4,439,488 0.70

987,300 US (Govt) 3.625% 15/02/2044 1,045,535 0.17

376,800 US (Govt) 4.25% 15/05/2039 443,366 0.07

942,100 US (Govt) 4.625% 15/11/2016 1,026,392 0.16

301,400 US (Govt) 7.25% 15/08/2022 411,005 0.07


Treasury Bill 400 -

United States 400 -

300 US (Govt) 0% 21/08/2014 300 -

100 US (Govt) 0% 02/01/2015 100 -

54








Ireland 132,328,780 21.00


2,507,285 HSBC Worldwide Equity ETF 40,285,802 6.39


Luxembourg 210,948,997 33.48










Shares 26,374 -

Italy 578 -


Portugal 6,286 -


South Africa 265 -


Spain 19,245 -




4,355 Ferrovial Rights 1,608 -




Net Assets 630,121,651 100.00

55






Shares 55,747 0.01

Japan 24,267 0.01


Thailand 23,295 -

44,000 Bangkok Dusit Medical Services 23,295 -



Bonds 19,392,651 2.58

Australia 650,531 0.09


20,000 Incitec Pivot 4% 07/12/2015 20,718 -



56,000 Telstra 4.8% 12/10/2021 62,825 0.01

Austria 506,122 0.07

120,000 OMV 6.75% VRN PERP 182,215 0.03



Belgium 253,681 0.03




Brazil 16,724 -

17,000 Vale 5.625% 11/09/2042 16,724 -

Canada 134,797 0.02


31,000 Bombardier 4.75% 15/04/2019 30,206 0.01

18,000 Canadian Pacific Railway 4.45% 15/03/2023 19,648 -

19,000 Talisman Energy 5.5% 15/05/2042 20,679 -


15,000 Videotron 5.375% 15/06/2024 15,206 -

China 185,306 0.03



56






Denmark 357,252 0.05


128,000 Danske Bank 3.875% VRN 04/10/2023 183,586 0.03

France 2,797,323 0.37

96,000 Axa 5.777% VRN PERP 135,549 0.02

11,000 BNP Paribas 5.75% 24/01/2022 20,610 -

150,000 Bouygues 4% 12/02/2018 222,163 0.03

100,000 BPCE 3% 19/07/2024 145,874 0.02



10,000 Cie Financement Foncier 2.375% 21/11/2022 14,562 -


25,000 Electricite de France 1.15% 20/01/2017 24,990 -

20,000 Electricite de France 4.875% 22/01/2044 21,215 -


100,000 GDF Suez 4.75% VRN PERP 147,211 0.02

100,000 Gecina 4.75% 11/04/2019 154,462 0.02

100,000 Groupe Auchan 3.625% 19/10/2018 149,178 0.02

120,000 Orange 4.25% VRN PERP 166,176 0.02

100,000 Pernod Ricard 2% 22/06/2020 138,016 0.02

136,000 RCI Banque 2.25% 29/03/2021 189,361 0.03

9,000 RCI Banque 3% 09/05/2019 15,282 -

22,000 RCI Banque 4.375% 27/01/2015 29,964.00 -

112,000 Saint Gobain 4.5% 30/09/2019 174,965 0.02


150,000 Vinci 6.25% VRN PERP 212,315 0.03

Germany 1,554,012 0.21

100,000 Allianz Finance 5.75% 08/07/2041 156,754 0.02

144,000 Bayer 3% VRN 01/07/2075 194,845 0.03

6,000 Daimler 1.75% 08/11/2017 10,053 -

136,000 Daimler 2% 25/06/2021 190,181 0.03

6,000 Daimler 2.25% 24/01/2022 8,490 -






Ireland 313,076 0.04


113,000 RZD Capital 3.3744% 20/05/2021 138,592 0.02

57






Italy 1,075,922 0.14

120,000 Atlantia 4.5% 08/02/2019 184,333 0.03

128,000 ENI 3.5% 29/01/2018 187,550 0.03

136,000 Intesa Sanpaolo 2% 18/06/2021 182,849 0.02

120,000 SNAM 3.875% 19/03/2018 177,238 0.02

120,000 Terna 2.875% 16/02/2018 171,649 0.02

120,000 Unicredit 3.25% 14/01/2021 172,303 0.02


12,000 Arcelormittal 5.5% 01/03/2021 12,585 -

120,000 Glencore Finance Europe 3.375% 30/09/2020 177,417.00 0.02

Mexico 173,887 0.02


28,000 Petroleos Mexicanos 4.875% 15/03/2015 28,700 -


112,000 ABN Amro Bank 7.125% 06/07/2022 193,605 0.03



136,000 BMW Finance 1.625% 17/07/2019 189,156 0.03

10,000 BMW Finance 1.75% 20/11/2017 16,770 -

63,000 Deutsche Annington Finance 3.2% 02/10/2017 65,098 0.01


150,000 ELM 5.252% VRN PERP 210,933 0.03


100,000 Hit Finance 5.75% 09/03/2018 155,872 0.02


112,000 ING Bank 4.25% 13/01/2017 162,912 0.02


44,000 Koninklijke KPN 4% 22/06/2015 60,704 0.01

120,000 Koninklijke KPN 7.5% 04/02/2019 205,217 0.03


144,000 Rabobank 2.5% VRN 26/05/2026 192,301 0.03


29,000 Shell International Finance 2.25% 06/01/2023 27,339 -

21,000 Shell International Finance 5.2% 22/03/2017 23,245 -


17,000 Volkswagen Finance Services 2% 23/10/2015 28,953 0.01

120,000 Wolters Kluwer 2.5% 13/05/2024 166,033 0.02

58






Spain 1,391,832 0.18







162,000 Spain (Govt) 5.75% 30/07/2032 286,217 0.04



Sweden 357,676 0.05

120,000 Nordea Bank 4.625% VRN 15/02/2022 173,471 0.02


Switzerland 366,733 0.05

144,000 Credit Suisse 1.375% 29/11/2019 195,291 0.03

120,000 UBS 4.75% VRN 12/02/2026 171,442 0.02



203,000 Barclays Bank 7.625% 21/11/2022 227,892 0.03

52,000 Barclays Bank 10% 21/05/2021 115,413 0.02

26,000 BP Capital Markets 3.125% 01/10/2015 26,765 -




128,000 Compass Group 3.125% 13/02/2019 187,666 0.03




39,000 HSBC Holdings 4% 30/03/2022 41,401 0.01

120,000 Mondi Finance 3.375% 28/09/2020 174,379 0.02

16,000 Royal Bank of Scotland 6.125% 15/12/2022 17,320 -


104,000 Vodafone Group 4.65% 20/01/2022 169,319 0.02


6,000 21st Century Fox America 4.5% 15/02/2021 6,503 -


29,000 Altria Group 4% 31/01/2024 29,605 0.01

9,000 Altria Group 4.25% 09/08/2042 8,222 -

21,000 Altria Group 4.75% 05/05/2021 23,144 -

59







13,000 American Express 7% 19/03/2018 15,334 -

52,000 Amgen 3.875% 15/11/2021 54,850 0.01

14,000 Anadarko Petroleum 6.375% 15/09/2017 15,989 -

22,000 Apple 1% 03/05/2018 21,456 -

82,000 Apple 2.4% 03/05/2023 77,433 0.01

15,000 AT&T 2.625% 01/12/2022 14,337 -

10,000 AT&T 3% 15/02/2022 9,936 -

21,000 Ball 4% 15/11/2023 19,464 -

100,000 Bank of America 1.875% 10/01/2019 138,381 0.02

16,000 Bank of America 2.65% 01/04/2019 16,102 -

30,000 Bank of America 5.7% 24/01/2022 34,551 0.01

74,000 Bank of America 6.875% 25/04/2018 86,440 0.01

22,000 Bristol Myers Squibb 2% 01/08/2022 20,476 -

150,000 Cargill 4.875% 29/05/2017 224,655 0.03


15,000 Chevron 1.718% 24/06/2018 15,077 -

28,000 Chevron 2.355% 05/12/2022 26,830 0.01

34,000 Cisco Systems 2.125% 01/03/2019 34,139 0.01

10,000 CIT Group 4.25% 15/08/2017 10,306 -

30,000 Citigroup 1.7% 25/07/2016 30,341 0.01

14,000 Citigroup 3.375% 01/03/2023 13,858 -

64,000 Citigroup 4.375% 02/11/2018 97,725 0.01

60,000 Citigroup 8.125% 15/07/2039 90,207 0.01

41,000 Comcast 6.3% 15/11/2017 47,374 0.01

41,000 CVS Caremark 1.2% 05/12/2016 41,190 0.01

9,000 CVS Caremark 5.75% 01/06/2017 10,092 -

13,000 Dominion Resources 4.45% 15/03/2021 14,197 -

17,000 DR Horton 3.75% 01/03/2019 17,000 -

18,000 ERAC USA Finance 2.8% 01/11/2018 18,486 -



46,000 General Motors 3.5% 02/10/2018 46,980 0.01


136,000 Goldman Sachs 2.5% 18/10/2021 190,644 0.03

118,000 Goldman Sachs 5.75% 24/01/2022 135,357 0.02

14,000 HCA 6.375% 15/01/2015 14,298 -




24,000 Johnson & Johnson 4.375% 05/12/2033 26,049 0.01

53,000 JP Morgan Chase 3.25% 23/09/2022 52,917 0.01

88,000 JP Morgan Chase 4.25% 15/10/2020 94,673 0.01

12,000 JP Morgan Chase 4.4% 22/07/2020 13,032 -

60







11,000 KB Home 4.75% 15/05/2019 11,021 -

12,000 Kroger 1.2% 17/10/2016 12,006 -

17,000 Kroger 2.3% 15/01/2019 17,083 -

40,000 Kroger 6.4% 15/08/2017 45,614 0.01


13,000 Marsh & Mclennan 2.55% 15/10/2018 13,208 -


104,000 Microsoft 3.125% 06/12/2028 154,128 0.02

7,000 Morgan Stanley 3.75% 25/02/2023 7,094 -

150,000 Morgan Stanley 5.375% 10/08/2020 244,924 0.03




21,000 Noble Energy 5.25% 15/11/2043 22,835 -

120,000 Oracle 3.125% 10/07/2025 179,616 0.03


16,000 Philip Morris International 2.9% 15/11/2021 16,029 -

8,000 PNC Financial Services Group 3.9% 29/04/2024 8,109 -

15,000 PNC Funding 3.3% 08/03/2022 15,264 -

120,000 Prologis 3.375% 20/02/2024 173,610 0.02


14,000 Prudential Financial 5.375% 21/06/2020 15,961 -

8,000 Prudential Financial 5.625% VRN 15/06/2043 8,599 -

14,000 Republic Services 3.55% 01/06/2022 14,428 -

12,000 Republic Services 4.75% 15/05/2023 13,357 -


10,000 SLM 6% 25/01/2017 10,725 -

16,000 Time Warner 3.55% 01/06/2024 15,767 -







9,000 Viacom 3.875% 01/04/2024 9,046 -

52,000 Wal-Mart Stores 1.95% 15/12/2018 52,249 0.01

14,000 Wells Fargo 3.5% 08/03/2022 14,441 -

30,000 WM Wrigley 2% 20/10/2017 30,381 0.01

13,000 WM Wrigley 2.9% 21/10/2019 13,266 -



61








26,300 UK (Govt) 1.75% 22/07/2019 43,859 -

154,400 UK (Govt) 2.25% 07/09/2023 252,787 0.03

136,700 UK (Govt) 3.25% 22/01/2044 228,388 0.03

941,400 UK (Govt) 4.25% 07/12/2027 1,820,943 0.24

336,800 UK (Govt) 4.25% 07/06/2032 656,289 0.09

71,700 UK (Govt) 4.25% 07/03/2036 140,353 0.02

71,500 UK (Govt) 5% 07/03/2025 145,764 0.02


128,800 US (Govt) 0.25% 30/09/2014 128,845 0.02

376,800 US (Govt) 0.25% 15/01/2015 377,131 0.05

11,100 US (Govt) 0.375% 15/07/2023 11,528 -

1,503,000 US (Govt) 1.25% 30/11/2018 1,479,956 0.20

228,300 US (Govt) 1.5% 31/12/2018 226,878 0.03

376,800 US (Govt) 2.375% 31/08/2014 377,514 0.05

301,400 US (Govt) 2.5% 15/08/2023 301,753 0.04

2,282,500 US (Govt) 2.75% 15/11/2023 2,328,641 0.31

1,955,700 US (Govt) 2.875% 15/05/2043 1,794,087 0.24

394,800 US (Govt) 3.625% 15/02/2044 418,087 0.06

150,700 US (Govt) 4.25% 15/05/2039 177,323 0.02

376,800 US (Govt) 4.625% 15/11/2016 410,513 0.05

120,500 US (Govt) 7.25% 15/08/2022 164,320 0.02


Treasury Bill 100 -

United States 100 -

100 US (Govt) 0% 21/08/2014 100 -




Ireland 314,448,854 41.83


200,290 HSBC MSCI Emerging Markets ETF 2,159,930 0.29

993,269 HSBC MSCI World ETF 17,118,991 2.28



62






Luxembourg 180,038,674 23.95








Other Transferable Securities 40,833 0.01

Shares 40,833 0.01

Italy 998 -

1,357 Banca Popolare Dell'Emilia Romagna Rights 998 -

Portugal 16,481 -


South Africa 190 -


Spain 23,164 0.01



40,288 Banco Santander Rights 8,463 0.01





Net Assets 751,717,887 100.00

63



Quantity Description Market Value Market Value as a Percentage

USD of Net Assets %

Transferable Securities Admitted to an Official Stock Exchange Listing 24,267 0.01

Shares 24,267 0.01

Japan 24,267 0.01





Ireland 228,285,549 59.28


695,758 HSBC MSCI Emerging Markets ETF 7,503,063 1.95

273,316 HSBC MSCI Europe ETF 4,251,586 1.10

3,806,774 HSBC MSCI World ETF 65,609,750 17.04


Luxembourg 41,415,057 10.75




Shares 19,700 -

Italy 578 -


Portugal 9,559 -


South Africa 77 -

577 Steinhoff International Holdings Rights 77 -

Spain 9,486 -







Net Assets 385,140,659 100.00


64

65

Fund Holiday Calendar for 2014

All HSBC Portfolios sub-funds will have holidays on: all Saturdays and Sundays and on the following dates :

1 January Luxembourg

18 April Luxembourg 21 April Luxembourg 1 May Luxembourg 5 May UK

26 May UK 29 May Luxembourg 9 June Luxembourg

23 June Luxembourg 15 August Luxembourg 25 August UK 25 December Luxembourg 26 December Luxembourg

Shareholders who deal through the Company's local distributor or representative should note that there will be no dealing for the Shares of the Company in the jurisdiction in which such distributor or representative operates on a day which is not a business day in such jurisdiction.

The Company will determine the fund holiday calendar according to the latest market information obtained by the Company from time to time. Shareholders can obtain the latest fund holiday calendar of the Company from the registered office of the Company or from the Company's local distributor or representative.

HSBC Global Asset Management, the sponsor of HSBC Portfolios, is the asset management specialist of the HSBC Group and operates through HSBC Bank plc and its subsidiaries. HSBC Global Asset Management is the trading name of HSBC Global Asset Management Limited. HSBC Global Asset Management is established at 8 Canada Square, London E14 5HQ, United Kingdom, which is its registered office.

© Copyright. HSBC Global Asset Management Limited 2014. All Rights Reserved 14846/0608

Documents

HSBC Portfolios · 2015-01-23 · HSBC Investment Funds (Luxembourg) S.A. (the “Management Company”) uses a risk management process that allows monitoring the risk of the portfolio