HSBC Portfolios€¦ · HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios World Selection 1 World Selection 2 World Selection 3 World Selection 4 World

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

HSBC Portfolios Unaudited Semi-Annual Report for the period ended 31 January 2015

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.

Unaudited report for the period 1 August 2014 to 31 January 2015

Table of Contents General Information 2

Statement of Net Assets 5

Statement of Operations 6

Statement of Changes in Net Assets 7

Statement of Changes in Shares Issued 8

Statistical Information 10

Notes to the Financial Statements 12

Schedules of Investments and Other Net Assets

HSBC Portfolios – World Selection 1 24





Fund Holiday Calendar for 2015 51

2

General Information

Directors

George Efthimiou (Chairman), Global Chief Operating Officer

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 14 August 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

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

The Directors Office, 19 Rue de Bitbourg, L-1273, Luxembourg

Joanna Munro, Global Head of Fiduciary Governance

(Appointed with effect from 28 November 2014)

HSBC Global Asset Management Limited,

78 St James Street, London SW1A 1HL, United Kingdom

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

General Information (continued)

3

Registered Office

16, boulevard d’Avranches

L-1160 Luxembourg


Administration Agent,

Depositary Bank,

Paying Agent, Corporate and

Domiciliary Agent

HSBC Bank plc, Luxembourg Branch *

(From 15 November 2014)


L-1160 Luxembourg


HSBC Securities Services (Luxembourg) S.A.

(Until 14 November 2014)

Registrar and Transfer Agent HSBC Bank plc, Luxembourg Branch *

(From 15 November 2014)


L-1160 Luxembourg


HSBC Securities Services (Luxembourg) S.A.

(Until 14 November 2014)

Management Company

HSBC Investment Funds (Luxembourg) S.A.


L-1160 Luxembourg


Réviseur d'Entreprises agréé KPMG Luxembourg, Société Coopérative

39, Avenue John F. Kennedy

L-1855 Luxembourg

Legal Advisers

Elvinger, Hoss & Prussen

2, Place Winston Churchill

L-1340 Luxembourg


Investment Adviser

HSBC Global Asset Management (UK) Limited

78 St James’s Street

London SW1A 1EJ

United Kingdom

Distributors Global Distributor

HSBC Investment Funds (Luxembourg) S.A.


L-1160 Luxembourg


* HSBC Securities Services (Luxembourg) S.A. has transferred its activities to HSBC Bank Plc, Luxembourg Branch with effect from the date disclosed in brackets.


4

Distributors (continued)

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

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.


5

For the current sub-fund of 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

Statement of Net Assets as at 31 January 2015

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 2,441,554,386 427,015,508 435,293,309 570,053,623 683,044,476 326,147,470

Unrealised appreciation / (depreciation) 9,043,247 10,933,100 10,511,592 3,218,448 (9,260,020) (6,359,873)

Investments in securities at market value 3 b 2,450,597,633 437,948,608 445,804,901 573,272,071 673,784,456 319,787,597

Unrealised gain on forw ard foreign exchange contracts 3 h, 6 1,537,710 685,501 852,209 - - -

Unrealised appreciation on futures contracts 3 i, 7 2,370,930 143,403 208,275 473,072 928,762 617,418

OTHER ASSETS

Cash at bank 169,084,120 25,302,124 38,499,302 37,127,368 44,817,097 23,338,229

Amounts receivable on sale of Investments 7,898,486 5,552,163 2,346,323 - - -

Amounts receivable on subscriptions 18,410,455 7,010,370 4,712,441 3,758,323 2,044,602 884,719

Accounts receivable and accrued income 9,576,728 2,008,244 2,587,687 2,513,796 1,383,391 1,083,610

OTHER ASSETS 204,969,789 39,872,901 48,145,753 43,399,487 48,245,090 25,306,558

TOTAL ASSETS 2,659,476,062 478,650,413 495,011,138 617,144,630 722,958,308 345,711,573

LIABILITIES

Unrealised loss on forw ard foreign exchange contracts 3 h, 6 9,100,424 - - 988,986 5,928,148 2,183,290

Bank overdraft 1,992,369 1,365,961 285,860 - 303,368 37,180

Amounts payable on purchase of Investments 14,765,841 6,560,972 5,002,969 - 3,201,900 -

Amounts payable on redemptions 13,588,183 3,080,637 1,704,332 5,176,754 2,479,539 1,146,921

Management fees payable 2,449,402 370,358 393,937 600,548 713,840 370,719

Accounts payable and accrued expenses 1,175,219 220,715 210,629 296,305 309,218 138,352

Dividends payable 39,426 21,760 434 8,303 3,471 5,458

TOTAL LIABILITIES 43,110,864 11,620,403 7,598,161 7,070,896 12,939,484 3,881,920

NET ASSETS 2,616,365,198 467,030,010 487,412,977 610,073,734 710,018,824 341,829,653

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

7

Statement of Operations

for the period ended 31 January 2015




INCOME

Income from investments 3 c 15,105,643 2,965,868 3,552,518 3,459,745 3,280,864 1,846,648

Deposit interest 13,311 13,134 151 9 9 8

Other income 976,287 19,182 130,271 283,094 263,015 280,725

TOTAL INCOME 16,095,241 2,998,184 3,682,940 3,742,848 3,543,888 2,127,381

EXPENSES 3 c

Management fees 4 a 15,304,607 2,232,377 2,434,868 3,741,760 4,514,875 2,380,727

Operating, administrative and servicing expenses 4 b 2,765,070 519,111 523,156 661,746 681,617 379,440

Bank interest and charges 5,572 982 1,278 1,802 1,426 84

TOTAL EXPENSES 18,075,249 2,752,470 2,959,302 4,405,308 5,197,918 2,760,251

NET OPERATING (LOSS) / PROFIT FOR THE PERIOD (1,980,008) 245,714 723,638 (662,460) (1,654,030) (632,870)


8

Statement of Changes in Net Assets





Net operating (loss) / profit for the period (1,980,008) 245,714 723,638 (662,460) (1,654,030) (632,870)

Net realised gains / (losses) on:

- Investments in securities 3 b, 3 e 8,654,127 3,229,432 1,812,061 4,477,237 650,932 (1,515,535)

- Forw ard foreign exchange contracts 3 h (248,637,630) (37,336,880) (36,875,636) (51,768,504) (88,611,036) (34,045,574)

- Futures contracts 3 i (2,973,574) (277,817) (309,566) (136,975) (777,059) (1,472,157)

- Foreign exchange transactions 3 d (54,593,418) (22,213,326) (19,313,668) (11,217,767) (1,625,351) (223,306)

NET REALISED LOSS (299,530,503) (56,352,877) (53,963,171) (59,308,469) (92,016,544) (37,889,442)

Net change in unrealised (depreciation) / appreciation on:

- Investments in securities (9,452,354) 8,863,455 6,025,037 (5,365,865) (13,321,401) (5,653,580)

- Forw ard foreign exchange contracts 3 h 1,865,210 1,420,385 2,143,579 1,125,144 (2,162,820) (661,078)

- Futures contracts 3 i 2,370,930 143,403 208,275 473,072 928,762 617,418

DECREASE IN NET ASSETS FROM OPERATIONS (304,746,717) (45,925,634) (45,586,280) (63,076,118) (106,572,003) (43,586,682)

CAPITAL TRANSACTIONS

Received on issue of shares 511,195,130 118,944,841 96,869,824 113,885,626 126,381,224 55,113,615

Paid on redemptions of shares (292,162,190) (49,592,765) (55,467,548) (70,808,457) (61,489,291) (54,804,129)

Dividends paid (235,008) (131,804) (1,433) (48,968) (18,993) (33,810)

TOTAL (DECREASE) / INCREASE IN NET ASSETS FOR THE PERIOD

(85,948,785) 23,294,638 (4,185,437) (20,047,917) (41,699,063) (43,311,006)

NET ASSETS

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

End of period 2,616,365,198 467,030,010 487,412,977 610,073,734 710,018,824 341,829,653


9

Statement of Changes in Shares Issued for the period ended 31 January 2015


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

Class A (C) (USD)

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

Shares issued 2,316,411.66 2,546,956.23 3,723,419.03 3,087,765.62 1,108,500.72

Shares redeemed (1,025,272.99) (1,820,517.02) (2,453,828.36) (2,426,918.58) (2,591,218.02)

Shares outstanding, end of period 7,177,437.13 11,160,130.55 17,044,581.13 12,336,289.35 10,132,620.01

Class A (C) (HAUD)*

Shares outstanding, beginning of period - - 62,829.84 28,499.96 39,886.64

Shares issued - - - 60,265.49 27,860.21

Shares redeemed - - (50,010.71) (7,225.48) (16,168.07)

Shares outstanding, end of period - - 12,819.13 81,539.97 51,578.78

Class A (C) (HEUR)*


Shares issued 4,638,766.62 3,298,972.89 2,219,958.32 4,163,351.70 1,759,094.67

Shares redeemed (1,936,184.49) (1,445,399.24) (1,449,863.76) (892,478.14) (400,470.66)


Class A (C) (HGBP)*


Shares issued 264,553.91 532,046.73 826,200.85 489,207.67 320,539.53

Shares redeemed (184,240.83) (454,937.55) (500,114.85) (615,287.26) (538,750.51)


Class A (C) (HSGD)*

Shares outstanding, beginning of period 100.00 - 100.00 - 100.00

Shares issued - - 3,118.57 - - Shares redeemed - - - - -

Shares outstanding, end of period 100.00 - 3,218.57 - 100.00

Class A (M) (USD)

Shares outstanding, beginning of period 92,271.65 12.88 114,779.68 19,625.68 490.08

Shares issued 558,551.72 1,699.53 73,325.29 138,473.13 23,892.29

Shares redeemed (209,542.86) (0.03) (15,453.25) (124,008.53) (1,798.98)

Shares outstanding, end of period 441,280.51 1,712.38 172,651.72 34,090.28 22,583.39

Class A (M) (HKD)

Shares outstanding, beginning of period 821,278.01 100.00 2,229,017.21 46,816.33 656,616.97

Shares issued 5,531,034.40 28,144.81 783,067.47 469,873.90 134,702.59

Shares redeemed (417,273.83) (0.20) (2,135,002.69) (316,110.31) (95,405.53)

Shares outstanding, end of period 5,935,038.58 28,244.61 877,081.99 200,579.92 695,914.03

Class A (M) (HAUD)*

Shares outstanding, beginning of period 13.61 13.61 13.61 13.61 30,516.83

Shares issued 123,044.36 1,475.64 45,113.74 39,584.79 147,406.58

Shares redeemed (59,207.90) (1,475.44) (12,387.71) (24,339.57) (57,138.08)

Shares outstanding, end of period 63,850.07 13.81 32,739.64 15,258.83 120,785.33

Class A (M) (HEUR)*

Shares outstanding, beginning of period 9.45 1,076.66 9.45 9.45 399.33

Shares issued 13,997.58 14,724.26 3,458.76 0.09 200.81

Shares redeemed (10.05) (10.80) (0.47) (0.02) (0.37)

Shares outstanding, end of period 13,996.98 15,790.12 3,467.74 9.52 599.77

* Hedged Classes

10

Statement of Changes in Shares Issued

(continued)




Class A (M) (HGBP)*

Shares outstanding, beginning of period 7.57 246.01 6,411.71 19,627.62 23,632.32

Shares issued 0.08 66.94 63,911.48 48,333.47 72,859.87

Shares redeemed (0.02) (0.62) (23,220.22) (19,631.54) (81,512.39)

Shares outstanding, end of period 7.63 312.33 47,102.97 48,329.55 14,979.80

Class A (M) (HSGD)*

Shares outstanding, beginning of period 100.00 - 100.00 - 100.00

Shares issued 0.83 - 0.99 - 0.85

Shares redeemed - - - - -

Shares outstanding, end of period 100.83 - 100.99 - 100.85

Class B (C) (USD)

Shares outstanding, beginning of period 500.00 4,422.15 79,637.37 53,446.96 500.00

Shares issued - 12,471.66 35,099.87 34,678.85 9,960.76

Shares redeemed - - - - -

Shares outstanding, end of period 500.00 16,893.81 114,737.24 88,125.81 10,460.76

Class B (C) (HEUR)*

Shares outstanding, beginning of period - 10,000.00 43,963.31 - 23,124.10

Shares issued - - 17,074.72 3,370.73 - Shares redeemed - - - - -

Shares outstanding, end of period - 10,000.00 61,038.03 3,370.73 23,124.10

Class B (C) (HGBP)*

Shares outstanding, beginning of period 68,718.43 490,354.46 620,341.22 238,787.06 141,239.64

Shares issued 63,347.58 92,846.08 421,902.73 106,392.05 52,373.87

Shares redeemed - (4,607.17) (42,453.90) - (4,607.54)

Shares outstanding, end of period 132,066.01 578,593.37 999,790.05 345,179.11 189,005.97

Class Z (C) (USD)

Shares outstanding, beginning of period - - - 52,546.00 - Shares issued - - - - - Shares redeemed - - - (29.26) -

Shares outstanding, end of period - - - 52,516.74 -

Class Z (C) (HEUR)*

Shares outstanding, beginning of period 11,825.00 - 32,958.00 - - Shares issued 1,650.00 - - - - Shares redeemed - - - - -

Shares outstanding, end of period 13,475.00 - 32,958.00 - -

Class S1 (C) (USD)

Shares outstanding, beginning of period 7,676.54 - 7,797.77 - 3,978.16

Shares issued - - - - - Shares redeemed (7,676.54) - (7,797.77) - (3,978.16)

Shares outstanding, end of period - - - - -

* Hedged Classes

11

Statistical Information

HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC Portfolios HSBC PortfoliosWorld Selection 1 World Selection 2 World Selection 3 World Selection 4 World Selection 5

NUMBER OF SHARES OUTSTANDING:

as at 31 January 2015

Class A (C) (USD) 7,177,437.13 11,160,130.55 17,044,581.13 12,336,289.35 10,132,620.01

Class A (C) (HAUD)* - - 12,819.13 81,539.97 51,578.78

Class A (C) (HEUR)* 23,336,593.30 18,944,304.74 19,520,222.54 30,703,937.27 10,519,216.69

Class A (C) (HGBP)* 1,485,667.07 3,013,911.17 3,895,796.22 4,520,034.88 2,461,077.29

Class A (C) (HSGD)* 100.00 - 3,218.57 - 100.00

Class A (M) (USD) 441,280.51 1,712.38 172,651.72 34,090.28 22,583.39

Class A (M) (HKD) 5,935,038.58 28,244.61 877,081.99 200,579.92 695,914.03

Class A (M) (HAUD)* 63,850.07 13.81 32,739.64 15,258.83 120,785.33

Class A (M) (HEUR)* 13,996.98 15,790.12 3,467.74 9.52 599.77

Class A (M) (HGBP)* 7.63 312.33 47,102.97 48,329.55 14,979.80

Class A (M) (HSGD)* 100.83 - 100.99 - 100.85

Class B (C) (USD) 500.00 16,893.81 114,737.24 88,125.81 10,460.76

Class B (C) (HEUR)* - 10,000.00 61,038.03 3,370.73 23,124.10

Class B (C) (HGBP)* 132,066.01 578,593.37 999,790.05 345,179.11 189,005.97

Class Z (C) (USD) - - - 52,516.74 - Class Z (C) (HEUR)* 13,475.00 - 32,958.00 - -

NET ASSET VALUE PER SHARE:

as at 31 January 2015

Class A (C) (USD) USD 12.7329 USD 12.9531 USD 13.1369 USD 13.1361 USD 13.1370

Class A (C) (HAUD)* - - AUD 10.4801 AUD 10.3434 AUD 10.3029

Class A (C) (HEUR)* EUR 12.5977 EUR 12.8013 EUR 12.9533 EUR 12.9565 EUR 12.9564

Class A (C) (HGBP)* GBP 12.7864 GBP 12.9879 GBP 13.1420 GBP 13.1284 GBP 13.1062

Class A (C) (HSGD)* SGD 10.2791 - SGD 9.9382 - SGD 9.5963

Class A (M) (USD) USD 10.1900 USD 10.1097 USD 9.8322 USD 9.6127 USD 9.5125

Class A (M) (HKD) HKD 10.1946 HKD 10.1219 HKD 9.8376 HKD 9.6103 HKD 9.5197

Class A (M) (HAUD)* AUD 10.2085 AUD 10.1440 AUD 9.8704 AUD 13.9361 AUD 9.5249

Class A (M) (HEUR)* EUR 10.1909 EUR 10.0540 EUR 9.8468 EUR 9.6505 EUR 9.5058

Class A (M) (HGBP)* GBP 10.2185 GBP 10.0583 GBP 9.8155 GBP 9.5872 GBP 9.4907

Class A (M) (HSGD)* SGD 10.1749 - SGD 9.8146 - SGD 9.4977

Class B (C) (USD) USD 10.3386 USD 10.7340 USD 10.9263 USD 10.5501 USD 9.7377

Class B (C) (HEUR)* - EUR 10.2423 EUR 10.8824 EUR 9.9124 EUR 10.8624

Class B (C) (HGBP)* GBP 11.0684 GBP 11.3547 GBP 11.6505 GBP 11.8268 GBP 12.2937

Class Z (C) (USD) - - - USD 13.9958 -

Class Z (C) (HEUR)* EUR 12.4040 - EUR 13.8283 - -


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 11,615,337.31

Class A (C) (HAUD)* - - 62,829.84 28,499.96 39,886.64

Class A (C) (HEUR)* 20,634,011.17 17,090,731.09 18,750,127.98 27,433,063.71 9,160,592.68

Class A (C) (HGBP)* 1,405,353.99 2,936,801.99 3,569,710.22 4,646,114.47 2,679,288.27

Class A (C) (HSGD)* 100.00 - 100.00 - 100.00

Class A (M) (USD) 92,271.65 12.88 114,779.68 19,625.68 490.08

Class 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 30,516.83

Class A (M) (HEUR)* 9.45 1,076.66 9.45 9.45 399.33

Class A (M) (HGBP)* 7.57 246.01 6,411.71 19,627.62 23,632.32

Class A (M) (HSGD)* 100.00 - 100.00 - 100.00

Class B (C) (USD) 500.00 4,422.15 79,637.37 53,446.96 500.00

Class B (C) (HEUR)* - 10,000.00 43,963.31 - 23,124.10

Class B (C) (HGBP)* 68,718.43 490,354.46 620,341.22 238,787.06 141,239.64

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

* Hedged Classes

12

Statistical Information (continued)




as at 31 July 2014


Class A (C) (HAUD)* - - AUD 10.3524 AUD 10.4098 AUD 10.4468



Class 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 9.8449

Class 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 9.8669

Class A (M) (HEUR)* EUR 9.9939 EUR 9.9755 EUR 9.9456 EUR 9.8954 EUR 9.8469

Class A (M) (HGBP)* GBP 9.9928 GBP 9.9748 GBP 9.9403 GBP 9.8850 GBP 9.8476

Class 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 9.9458

Class B (C) (HEUR)* - EUR 10.0256 EUR 10.8610 - EUR 11.1019


Class Z (C) (USD) - - - USD 14.1440 -


Class S1 (C) (USD) USD 12.5998 - USD 13.4296 - USD 13.8013


as at 31 July 2013

Class A (C) (USD) 6,803,891.98 9,971,432.84 8,240,555.23 8,304,526.58 8,033,286.71

Class A (C) (HEUR)* 26,822,606.66 16,986,355.87 15,560,696.88 16,589,125.18 5,557,013.61

Class A (C) (HGBP)* 1,642,339.13 3,295,649.29 3,050,208.41 4,786,452.84 2,957,921.73

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


as at 31 July 2013





Class Z (C) (USD) - - - USD 12.6965 -


Class Z (C) (HGBP)* - - GBP 12.6202 - -

Class S1 (C) (USD) USD 11.8692 - USD 12.2754 - USD 12.2425

* Hedged Classes

13

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 with different compartments (hereafter called a “Portfolio”). Within each

Portfolio, various classes of shares may be issued. Each Portfolio consists 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 January 2015, 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 of the Company (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 relating to the execution of the currency hedging policy will be borne by the relevant

currency hedged class.


for the period ended 31 January 2015 (continued)

14

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 a reliable and verifiable manner on a daily basis and verified by a competent professional appointed by the Company.

The Financial Statements are presented on the basis of the net sasset value calculated on 30 January 2015.

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 January 2015 are as follows:

USD/EUR: 1.12845

USD/GBP: 1.50190

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



15

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 period 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:


Class A Shares 1.00%

Class B Shares 0.50%

Class E Shares 1.30%

Class S1 Shares 0.50%

Class Z Shares 0.00%















16

4. Charges and Expenses (continued)

a) Management Fee (continued)













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. There were no rebates for the period ended 31 January 2015 (USD 3,119,622 for year

ended 31 July 2014).

b) Operating, Administrative and Servicing Expenses

There are certain operating, administrative and servicing expenses (‘the expenses’) incurred throughout the lifetime of a Portfolio or share class.

These expenses are associated with services rendered to a relevant Portfolio which are overseen by either the Management Company or the

Company. Many of the services are delegated to other service providers who are paid directly by the Company.

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 Luxembourg asset-based taxe d’abonnement; reasonable out-of-pocket expenses incurred by the Board of Directors; legal expenses for advice on behalf of the Company; audit fees; ongoing

registration and listing fees (if applicable); the costs of preparing, printing, translating and distributing the Company’s Prospectus, financial

reports, statements and other documents made available directly or through intermediaries to its shareholders. These expenses also cover

formation expenses for current and new Portfolios including initial registration fees (these expenses are amortised over a period not exceeding 5

years from the formation date of the Portfolio). 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.

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.



17

b) Operating, Administrative and Servicing Expenses (continued)

The expenses will be accrued daily and will be payable monthly in arrears. The accrual amount will be reviewed each quarter using the previous

12 months’ expenses as an initial basis and amending when necessary.

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 January 2015, EUR 5,000 was payable to the Independent Directors.

d) Other Charges

Other charges are the remaining charges incurred by the Portfolios. They are paid by the Company depending on the services rendered to the

share class. They consist of, but are not limited to, the following:

Duties, taxes and transaction costs associated with buying and selling the underlying assets of the Company;

Brokerage fees and commissions;

Interest on borrowing and bank charges incurred in negotiating borrowing;

Payments incurred for the holding of financial derivative instruments for the purposes of investment, efficient portfolio management

and hedging. Hedging includes currency hedging for the underlying assets of the Company or for the currency hedging of share

classes denominated in a currency other than the base currency.

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.



18

5. Taxation (continued)

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.

6. Forward Foreign Exchange Contracts

As at 31 January 2015, 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:

Currency Bought Currency Sold Unrealised

Maturity Date Bought Amount Sold Amount Gain / (Loss)

USD

HSBC Portfolios - World Selection 1

4 February 2015 AUD 1,243,562 USD (1,008,008) (39,866)

4 February 2015 EUR 292,439,595 USD (333,886,901) (3,870,596)

4 February 2015 GBP 20,320,971 USD (30,663,413) (144,250)

4 February 2015 SGD 2,047 USD (1,533) (21)

4 February 2015 USD 978,286 AUD (1,243,562) 10,144

4 February 2015 USD 331,655,452 EUR (292,439,595) 1,639,148

4 February 2015 USD 30,643,211 GBP (20,320,971) 124,049

4 February 2015 USD 1,515 SGD (2,047) 2

6 February 2015 EUR 925,000 USD (1,095,226) (51,384)

6 February 2015 JPY 145,237,000 USD (1,233,107) 3,355

6 February 2015 USD 13,022,921 AUD (16,082,000) 501,325

6 February 2015 USD 5,973,960 CAD (7,052,000) 412,459

6 February 2015 USD 57,270,301 EUR (48,001,000) 3,102,259

6 February 2015 USD 41,431,742 GBP (27,156,000) 646,887

6 February 2015 USD 5,417,074 JPY (651,767,000) (131,686)

11 February 2015 AUD 653,645 USD (508,870) (200)

11 February 2015 EUR 294,147,937 USD (333,624,943) (1,662,853)

11 February 2015 GBP 20,446,254 USD (30,831,417) (125,389)

11 February 2015 SGD 2,055 USD (1,520) (2)

13 February 2015 USD 5,230,535 EUR (4,610,464) 27,293

13 February 2015 USD 3,787,455 GBP (2,496,013) 39,007

13 February 2015 USD 3,234,265 JPY (380,677,900) (6,920)

12 March 2015 USD 697,140 DKK (4,364,000) 34,876

12 March 2015 USD 4,310,123 SEK (34,173,000) 177,864

685,501


4 February 2015 AUD 140 USD (113) (5)

4 February 2015 EUR 238,729,664 USD (272,644,424) (3,239,450)

4 February 2015 GBP 45,574,824 USD (68,766,439) (319,637)

4 February 2015 USD 109 AUD (140) - 4 February 2015 USD 270,743,073 EUR (238,729,664) 1,338,099

4 February 2015 USD 68,725,011 GBP (45,574,824) 278,210

6 February 2015 AUD 179,000 USD (146,783) (7,412)

6 February 2015 CAD 93,000 USD (77,687) (4,343)

6 February 2015 EUR 808,000 USD (940,856) (29,047)



19

6. Forward Foreign Exchange Contracts (continued)



USD

HSBC Portfolios - World Selection 2 (continued)

6 February 2015 GBP 509,000 USD (769,768) (5,314)

6 February 2015 JPY 58,547,000 USD (496,109) 2,326

6 February 2015 USD 5,721,105 AUD (7,065,000) 220,230

6 February 2015 USD 3,296,182 CAD (3,891,000) 227,578

6 February 2015 USD 65,036,976 EUR (54,505,000) 3,529,316

6 February 2015 USD 30,118,207 GBP (19,739,000) 472,743

6 February 2015 USD 2,458,373 JPY (295,820,000) (60,065)

11 February 2015 AUD 141 USD (110) - 11 February 2015 EUR 242,973,363 USD (275,582,332) (1,373,557)

11 February 2015 GBP 45,751,913 USD (68,990,453) (280,579)

13 February 2015 EUR 316,427 USD (358,984) (1,873)

13 February 2015 JPY 28,789,160 USD (244,595) 523

13 February 2015 USD 5,858,552 EUR (5,164,181) 30,401

13 February 2015 USD 5,576,185 JPY (656,381,652) (12,410)

12 March 2015 USD 387,932 DKK (2,426,000) 19,772

12 March 2015 USD 1,616,799 SEK (12,819,000) 66,703

852,209


4 February 2015 AUD 457,762 USD (371,053) (14,675)

4 February 2015 EUR 253,560,754 USD (289,582,609) (3,440,840)

4 February 2015 GBP 63,143,029 USD (95,274,559) (442,851)

4 February 2015 SGD 32,943 USD (24,682) (338)

4 February 2015 USD 356,521 AUD (457,762) 143

4 February 2015 USD 287,562,998 EUR (253,560,754) 1,421,229

4 February 2015 USD 95,217,162 GBP (63,143,029) 385,454

4 February 2015 USD 24,382 SGD (32,943) 38

6 February 2015 USD 49,554,952 EUR (41,521,000) 2,699,443

6 February 2015 USD 14,304,187 GBP (9,373,000) 227,134

11 February 2015 AUD 460,799 USD (358,737) (141)

11 February 2015 EUR 255,205,271 USD (289,455,859) (1,442,705)

11 February 2015 GBP 63,604,352 USD (95,910,592) (390,061)

11 February 2015 SGD 33,136 USD (24,522) (40)

13 February 2015 EUR 80,911 USD (91,793) (479)

13 February 2015 JPY 16,195,168 USD (137,595) 294

13 February 2015 USD 6,486,223 EUR (5,717,293) 33,845

13 February 2015 USD 11,421,363 JPY (1,344,311,580) (24,436)

(988,986)



20

6. Forward Foreign Exchange Contracts (continued)



USD


4 February 2015 AUD 1,063,398 USD (860,951) (33,071)

4 February 2015 EUR 399,773,522 USD (456,566,948) (5,424,960)

4 February 2015 GBP 64,110,055 USD (96,733,285) (449,243)

4 February 2015 USD 828,212 AUD (1,063,398) 333

4 February 2015 USD 453,382,752 EUR (399,773,522) 2,240,764

4 February 2015 USD 96,675,399 GBP (64,110,055) 391,357

11 February 2015 AUD 1,066,937 USD (830,622) (326)

11 February 2015 EUR 401,702,429 USD (455,614,109) (2,270,871)

11 February 2015 GBP 64,500,015 USD (97,261,185) (395,553)

13 February 2015 EUR 56,899 USD (64,551) (337)

13 February 2015 JPY 11,389,012 USD (96,762) 207

13 February 2015 USD 8,153,290 EUR (7,186,732) 42,543

13 February 2015 USD 13,549,778 JPY (1,594,829,144) (28,991)

(5,928,148)


4 February 2015 AUD 1,696,191 USD (1,368,872) (48,348)

4 February 2015 EUR 137,345,183 USD (156,856,989) (1,863,785)

4 February 2015 GBP 35,433,170 USD (53,464,011) (248,509)

4 February 2015 SGD 1,933 USD (1,448) (20)

4 February 2015 USD 1,321,055 AUD (1,696,191) 531

4 February 2015 USD 155,763,035 EUR (137,345,183) 769,831

4 February 2015 USD 53,431,802 GBP (35,433,170) 216,300

4 February 2015 USD 1,431 SGD (1,933) 2

11 February 2015 AUD 1,705,998 USD (1,328,138) (521)

11 February 2015 EUR 138,185,519 USD (156,731,122) (781,179)

11 February 2015 GBP 35,138,719 USD (52,986,553) (215,492)

11 February 2015 SGD 1,942 USD (1,437) (2)

13 February 2015 USD 5,654,242 JPY (665,512,812) (12,098)

(2,183,290)



21

7. Futures Contracts

As at 31 January 2015, the Company had entered in the following outstanding futures contracts. The margin accounts and the unrealized

gain/(loss) on these futures contracts are recognized under the cash at bank figures in the statement of net assets.

Number of Unrealised

Underlying contracts Currency Commitment Maturity date Gain / (Loss)

USD USD


EUX EURO STOXX ® 14 EUR 2,514,142 06/03/2015 95,896

OSE Topix Index 46 JPY 5,505,981 12/03/2015 (151,994)

CBT US 10Yr Note (68) USD 17,788,376 20/03/2015 (278,315)

LIFFE FTSE 100 Index 75 GBP 7,575,211 20/03/2015 477,816

143,403




CBT US 10Yr Note (125) USD 32,699,220 20/03/2015 (492,346)


208,275




CBT US 10Yr Note (127) USD 33,222,408 20/03/2015 (488,810)

LIFFE FTSE 100 Index 159 GBP 16,059,448 20/03/2015 1,144,534

473,072



LIFFE FTSE 100 Index 199 GBP 20,099,561 20/03/2015 1,318,648

928,762




617,418

The broker linked to all of the above futures contracts is HSBC Bank Plc.



22

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 period.

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 period ended 31 January 2015:

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) 1.30% 1.26% 1.48% 1.46% 1.53%

Class A (C) (HAUD) - - 1.72% 1.66% 1.72%

Class A (C) (HEUR) 1.33% 1.34% 1.56% 1.49% 1.61%

Class A (C) (HGBP) 1.38% 1.34% 1.56% 1.49% 1.61%

Class A (C) (HSGD) 1.53% - 1.69% - 1.87%

Class A (M) (HKD) 1.35% 0.89% 1.60% 1.57% 1.63%

Class A (M) (USD) 1.35% 1.40% 1.58% 1.58% 1.62%

Class A (M) (HAUD) 1.44% 1.51% 1.68% 1.60% 1.71%

Class A (M) (HEUR) 1.43% 1.45% 1.71% 0.66% 1.71%

Class A (M) (HGBP) 0.59% 1.47% 1.67% 1.63% 1.67%

Class A (M) (HSGD) 1.53% - 1.84% - 1.87%

Class B (C) (USD) 0.84% 0.91% 0.93% 0.91% 0.97%

Class B (C) (HEUR) - 0.94% 1.07% 1.09% 0.95%

Class B (C) (HGBP) 0.94% 0.94% 1.07% 1.05% 1.05%

Class Z (C) (USD) - - - 0.26% -

Class Z (C) (HEUR) 0.43% - 0.36% - -

11. Publication of PTR (Portfolio Turnover Ratio)

Portfolio Turnover Ratio (%) for the period ended 31 January 2015:








23

12. Transaction costs

For the period from 01 August 2014 to 31 January 2015, the Fund incurred transaction costs related to purchase or sale of securities and

derivative products as follows:

HSBC Portfolios - World Selection 1 5,183USD





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 period ended

31 January 2015.

14. Pricing adjustment

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 period ended 31 January 2015, no pricing adjustments have been applied.

Schedule of Investments and Other Net Assets as at 31 January 2015


Quantity/ Description Market Value Market Value as a Percentage

Face Value USD of Net Assets %

Transferable Securities Admitted to an Official Stock Exchange Listing 205,635,743 44.03

Bonds 121,284,339 25.97

Australia 16,689,259 3.57

1,760,000 Australia (Govt) 2.75% 21/04/2024 1,413,425 0.30

2,890,000 Australia (Govt) 3.25% 21/10/2018 2,352,562 0.50

3,430,000 Australia (Govt) 3.25% 21/04/2029 3,527,574 0.75

3,435,000 Australia (Govt) 4.75% 15/06/2016 2,772,096 0.59

1,760,000 Australia (Govt) 5.75% 15/05/2021 2,970,144 0.64

1,700,000 Australia (Govt) 5.75% 15/07/2022 1,881,871 0.40

636,000 Australia & New Zealand 2.25% 13/06/2019 650,148 0.14

207,000 Commonwealth Bank of Australia 5.5% 06/08/2019 279,944 0.06

88,000 Scentre Group Trust 2.375% 05/11/2019 89,071 0.02

277,000 Scentre Management 1.5% 16/07/2020 323,001 0.07

246,000 Sydney Airport Finance 2.75% 23/04/2024 311,044 0.07

100,000 Transurban Finance 1.875% 16/09/2024 118,379 0.03

Austria 774,328 0.17

207,000 OMV 6.75% VRN PERP 255,375 0.06

207,000 Telekom Finanzmanagement 3.125% 03/12/2021 267,261 0.06

200,000 Vienna Insurance 5.5% VRN 09/10/2043 251,692 0.05

Belgium 1,806,213 0.39

231,000 Anheuser-Busch InBev 4% 26/04/2018 291,562 0.06

86,000 Anheuser-Busch InBev Finance 2.15% 01/02/2019 87,859 0.02

157,000 Anheuser-Busch InBev Worldwide 2.5% 15/07/2022 157,312 0.03

46,300 Belgium (Govt) 1.25% 22/06/2018 54,531 0.01

332,900 Belgium (Govt) 2.25% 22/06/2023 433,036 0.09

353,200 Belgium (Govt) 3.5% 28/06/2017 432,835 0.10

184,000 Belgium (Govt) 3.75% 22/06/2045 328,578 0.07

10,700 Belgium (Govt) 5% 28/03/2035 20,500 0.01

Canada 7,869,001 1.68

471,000 Bank of Montreal 1.3% 14/07/2017 472,177 0.10

706,000 Bank of Nova Scotia 1.3% 21/07/2017 709,219 0.15

1,900,000 Canada (Govt) 1% 01/05/2016 1,508,109 0.32

106,000 Canada (Govt) 1.25% 01/02/2016 84,216 0.02

2,070,000 Canada (Govt) 1.75% 01/09/2019 1,714,666 0.37

1,090,000 Canada (Govt) 2.5% 01/06/2024 960,261 0.21

1,350,000 Canada (Govt) 3.5% 01/12/2045 1,465,782 0.31

22,000 Canada (Govt) 4% 01/06/2041 24,998 -

10,000 Canada (Govt) 5.75% 01/06/2033 12,864 -

397,000 Royal Bank of Canada 2.2% 23/09/2019 406,673 0.09

497,000 Toronto-Dominion Bank 2.25% 25/09/2019 510,036 0.11

Cayman Islands 277,062 0.06

238,000 Hutchison Whampoa 3.75% VRN PERP 277,062 0.06

Denmark 1,180,653 0.25

192,000 Carlsberg Breweries 3.375% 13/10/2017 232,770 0.05

223,000 Danske Bank 3.875% VRN 04/10/2023 272,745 0.06

3,340,900 Denmark (Govt) 1.5% 15/11/2023 563,796 0.12

600,000 Denmark (Govt) 2.5% 15/11/2016 95,861 0.02

85,000 Denmark (Govt) 4% 15/11/2019 15,481 -

24

Schedule of Investments and Other Net Assets as at 31 January 2015 (continued)




France 6,753,095 1.45

161,000 AXA 3.941% VRN PERP 193,234 0.04

20,000 BNP Paribas 5.75% 24/01/2022 35,313 0.01

200,000 Bouygues 4% 12/02/2018 249,156 0.05

250,000 BPCE 2.5% 15/07/2019 255,826 0.06

200,000 BPCE 3% 19/07/2024 267,925 0.06

200,000 Casino Guichard Perrachon 3.157% 06/08/2019 249,745 0.05

254,000 Crédit Mutuel 4.471% VRN PERP 292,538 0.06

318,000 Électricité de France 5.25% VRN PERP 334,046 0.07

200,000 Essilor International 1.75% 09/04/2021 240,562 0.05

500,000 France (Govt) 0.25% 25/11/2016 567,684 0.12

171,000 France (Govt) 1% 25/05/2019 201,054 0.04

156,800 France (Govt) 2.25% 25/05/2024 924,912 0.20

225,000 France (Govt) 4% 25/10/2038 395,143 0.09

200,000 GDF Suez 4.75% VRN PERP 258,543 0.06

200,000 Gecina 4.75% 11/04/2019 262,864 0.06

200,000 Groupe Auchan 3.625% 19/10/2018 253,276 0.05

207,000 Orange 4.25% VRN PERP 251,620 0.05

200,000 Pernod Ricard 2% 22/06/2020 240,171 0.05

231,000 RCI Banque 2.25% 29/03/2021 280,762 0.06

16,000 RCI Banque 3% 09/05/2019 25,118 0.01

192,000 Saint Gobain 4.5% 30/09/2019 255,002 0.06

200,000 Sanofi 1.75% 10/09/2026 242,590 0.05

200,000 Societe Des Autoroutes Paris Rhin Rhône 2.25% 16/01/2020 242,309 0.05

200,000 Vinci 6.25% VRN PERP 233,702 0.05

Germany 1,145,769 0.25

254,000 Bayer 3% VRN 01/07/2075 301,965 0.07

10,000 Daimler 1.75% 08/11/2017 15,286 -

231,000 Daimler 2% 25/06/2021 282,909 0.06

200,000 Muench. Rueck. 5.767% VRN PERP 249,093 0.06

223,000 Vier Gas Transport 3.125% 10/07/2023 296,516 0.06

Ireland 271,434 0.06

207,000 Aquarius & Investments Zurich 4.25% VRN 02/10/2043 271,434 0.06

Israel 228,345 0.05

225,000 Israel Electric 5% 12/11/2024 228,345 0.05

Italy 13,792,723 2.95

192,000 Atlantia 4.5% 08/02/2019 250,060 0.05

223,000 ENI 3.5% 29/01/2018 274,362 0.06

238,000 Intesa Sanpaolo 2% 18/06/2021 281,229 0.06

59,000 Italy (Govt) 1.15% 15/05/2017 67,646 0.01

1,250,000 Italy (Govt) 2.25% 15/05/2016 1,446,187 0.31

82,000 Italy (Govt) 3% 01/11/2015 94,448 0.02

55,000 Italy (Govt) 3.75% 01/09/2024 73,872 0.02

1,380,000 Italy (Govt) 4.25% 01/02/2019 1,775,652 0.38

1,750,000 Italy (Govt) 4.25% 01/03/2020 2,303,729 0.49

73,000 Italy (Govt) 4.5% 15/07/2015 83,980 0.02

900,000 Italy (Govt) 4.5% 01/05/2023 1,254,110 0.27

102,000 Italy (Govt) 4.5% 01/03/2024 143,866 0.03

25





Italy (continued)

645,000 Italy (Govt) 4.75% 15/09/2016 779,382 0.17

23,000 Italy (Govt) 4.75% 01/06/2017 28,533 0.01

1,753,000 Italy (Govt) 4.75% 01/09/2028 2,607,935 0.56

680,000 Italy (Govt) 5% 01/08/2039 1,100,459 0.24

315,000 Italy (Govt) 5.5% 01/09/2022 461,089 0.10

207,000 SNAM 3.875% 19/03/2018 257,324 0.05

207,000 Terna 2.875% 16/02/2018 250,147 0.05

207,000 Unicredit 3.25% 14/01/2021 258,713 0.05

Japan 1,710,726 0.37

400,000 Bank of Tokyo Mitsubishi 2.85% 08/09/2021 408,828 0.09

59,600,000 Japan (Govt) 0.2% 20/03/2019 - -

182,000,000 Japan (Govt) 0.9% 20/03/2022 - -

317,000 Mizuho Bank 2.65% 25/09/2019 325,816 0.07

317,000 Mizuho Bank 3.6% 25/09/2024 334,424 0.07

635,000 Sumitomo Mitsui Banking 2.25% 11/07/2019 641,658 0.14

Jersey 316,696 0.07

310,000 HSBC Bank Middle East 2.75% 01/10/2019 316,696 0.07

Luxembourg 916,547 0.20

389,000 Actavis Funding 2.45% 15/06/2019 389,245 0.08

207,000 Glencore Finance Europe 3.375% 30/09/2020 256,291 0.06

200,000 Hannover Finance 5% VRN 30/06/2043 271,011 0.06

Mexico 733,440 0.16

200,000 América Móvil 3.125% 16/07/2022 202,766 0.04

169,000 América Móvil 5.125% VRN 06/09/2073 208,087 0.05

300,000 Kimberly-Clark de Mexico 3.8% 08/04/2024 322,587 0.07

Netherlands 5,006,645 1.07

207,000 ABN Amro Bank 7.125% 06/07/2022 314,167 0.07

200,000 Allianz Finance 5.75% 08/07/2041 274,769 0.06

254,000 BMW Finance 1.625% 17/07/2019 302,604 0.06

18,000 BMW Finance 1.75% 20/11/2017 27,695 0.01

200,000 Deutsche Ann Finance 3.125% 25/07/2019 249,095 0.05

223,000 Deutsche Telekom International Finance 4.25% 16/03/2020 299,428 0.06

200,000 ELM 5.252% VRN PERP 237,425 0.05

103,000 ENEL Finance International 3.625% 17/04/2018 128,031 0.03

315,000 ING Bank 2.5% 01/10/2019 323,368 0.07

200,000 ING Bank 4.25% 13/01/2017 243,039 0.05

207,000 KBC Internationale Financieringsmaatschappij 2.125% 10/09/2018 247,406 0.05

200,000 Koninklijke KPN 7.5% 04/02/2019 287,545 0.06

206,000 Nederlandse Waterschapsbank 1.625% 23/08/2019 248,236 0.05

26,400 Netherlands (Govt) 1.25% 15/01/2019 31,301 0.01

110,000 Netherlands (Govt) 2% 15/07/2024 142,620 0.03

261,000 Rabobank 2.5% VRN 26/05/2026 304,626 0.06

131,000 Rabobank 8.375% VRN 31/12/2049 141,071 0.03

100,000 Rabobank Nederland 6.875% 19/03/2020 135,423 0.03

200,000 Repsol International Finance 3.625% 07/10/2021 259,733 0.06

184,000 Siemens Financial Services 5.25% VRN 14/09/2066 221,288 0.05

269,000 Volkswagen Finance Services 3.875% VRN PERP 325,150 0.07

207,000 Wolters Kluwer 2.5% 13/05/2024 262,625 0.06

26





Spain 16,552,950 3.54

200,000 BBVA Senior Finance 2.375% 22/01/2019 240,870 0.05

238,000 Ferrovial Emisiones 3.375% 07/06/2021 306,522 0.06

200,000 Gas Natural Capital 6% 27/01/2020 283,912 0.06

200,000 Red Électrica Finance 3.875% 25/01/2022 271,531 0.06

200,000 Santander International Debt 4% 27/03/2017 242,796 0.05

16,000 Spain (Govt) 1.4% 31/01/2020 18,542 -

2,161,000 Spain (Govt) 2.75% 30/04/2019 2,645,458 0.57

3,500,000 Spain (Govt) 3.3% 30/07/2016 4,128,551 0.88

1,014,000 Spain (Govt) 3.75% 31/10/2018 1,275,935 0.27

2,040,000 Spain (Govt) 4.4% 31/10/2023 2,875,753 0.62

1,378,000 Spain (Govt) 5.15% 31/10/2028 2,156,714 0.46

610,000 Spain (Govt) 5.15% 31/10/2044 1,065,852 0.23

179,000 Spain (Govt) 5.75% 30/07/2032 309,150 0.07

307,000 Spain (Govt) 5.85% 31/01/2022 455,779 0.10

200,000 Telefónica Emisiones 3.987% 23/01/2023 275,585 0.06

Sweden 5,287,824 1.13

207,000 Nordea Bank 4.625% VRN 15/02/2022 251,062 0.05

223,000 Skandinaviska Enskilda 4% 12/09/2022 270,621 0.06

635,000 Svenska Handelsbanken 2.25% 17/06/2019 647,995 0.14

5,155,000 Sweden (Govt) 1.5% 13/11/2023 675,351 0.14

7,700,000 Sweden (Govt) 2.5% 12/05/2025 1,103,538 0.24

15,000,000 Sweden (Govt) 3.75% 12/08/2017 1,991,109 0.43

2,450,000 Sweden (Govt) 4.25% 12/03/2019 348,148 0.07

Switzerland 1,077,473 0.23

254,000 Credit Suisse 1.375% 29/11/2019 295,684 0.06

500,000 Credit Suisse 3.625% 09/09/2024 526,260 0.11

207,000 UBS 4.75% VRN 12/02/2026 255,529 0.06

United Kingdom 5,015,397 1.07

248,000 Abbey National Treasury Services 1.65% 29/09/2017 249,316 0.05


231,000 Anglo American Capital 2.5% 18/09/2018 273,835 0.06

363,000 Barclays Bank 7.625% 21/11/2022 406,235 0.09

93,000 Barclays Bank 10% 21/05/2021 190,951 0.04

120,000 Barclays PLC 1.5% 01/04/2022 138,417 0.03

200,000 Barclays PLC 2.75% 08/11/2019 204,671 0.04

238,000 BP Capital Markets 3.83% 06/10/2017 293,278 0.06

223,000 British Telecommunications 1.125% 10/06/2019 257,345 0.06

11,000 British Telecommunications 8.625% 26/03/2020 21,877 -

223,000 Compass Group 3.125% 13/02/2019 279,348 0.06

100,000 FCE Bank 1.875% 18/04/2019 118,277 0.03

207,000 Heathrow Funding 4.375% 25/01/2017 252,195 0.05

207,000 HSBC Holdings 3.375% VRN 10/01/2024 249,900 0.05

200,000 HSBC Holdings 6.375% VRN PERP 205,625 0.04

207,000 Mondi Finance 3.375% 28/09/2020 260,555 0.06

120,000 Sky 1.5% 15/09/2021 139,082 0.03

200,000 Sky 3.75% 16/09/2024 209,446 0.04

223,000 Standard Chartered 4% VRN 21/10/2025 271,295 0.06

184,000 Vodafone Group 4.65% 20/01/2022 258,813 0.06

407,000 WPP Finance 3.75% 19/09/2024 428,665 0.09

27





United States 33,878,759 7.25

149,000 21st Century Fox America 4.75% 15/09/2044 177,057 0.04



400,000 Air Products And Chemicals 3.35% 31/07/2024 422,676 0.09

39,000 Altria Group 4.75% 05/05/2021 44,012 0.01

202,000 Altria Group 5.375% 31/01/2044 245,322 0.05

325,000 Amazon.com 4.95% 05/12/2044 360,506 0.08

119,000 American Express 1.55% 22/09/2017 119,835 0.03


23,000 American Express 7% 19/03/2018 26,717 0.01

250,000 American Honda Finance 2.25% 15/08/2019 255,598 0.05

310,000 American International Group 2.3% 16/07/2019 315,219 0.07

223,000 Amgen 3.875% 15/11/2021 241,597 0.05

41,000 Apple 1% 03/05/2018 40,843 0.01

212,000 Apple 4.45% 06/05/2044 252,250 0.05

26,000 AT&T 2.625% 01/12/2022 25,747 -

230,000 AT&T 5.35% 01/09/2040 260,270 0.06

160,000 Bank of America 1.7% 25/08/2017 160,711 0.03

169,000 Bank of America 1.875% 10/01/2019 199,356 0.04

29,000 Bank of America 2.65% 01/04/2019 29,638 0.01

283,000 Bank of America 3.3% 11/01/2023 289,631 0.06

33,000 Bank of America 4.2% 26/08/2024 34,288 0.01

54,000 Bank of America 5.7% 24/01/2022 63,481 0.01

348,000 Bank of New York Mellon 2.3% 11/09/2019 356,442 0.08

389,000 Bed Bath & Beyond 5.165% 01/08/2044 435,075 0.09

261,000 Branch Banking & Trust 1.35% 01/10/2017 261,897 0.06


104,000 Brandywine Operating Partners 4.1% 01/10/2024 108,463 0.02

428,000 Burlington Northern Santa 4.55% 01/09/2044 490,764 0.10

250,000 Capital One Bank 3.375% 15/02/2023 254,335 0.05

529,000 Capital One Financial 2.95% 23/07/2021 539,823 0.12

200,000 Cargill 4.875% 29/05/2017 249,840 0.05

25,000 Citigroup 3.375% 01/03/2023 25,855 -

115,000 Citigroup 4.375% 02/11/2018 147,992 0.03

212,000 Citigroup 5.5% 13/09/2025 241,079 0.05

107,000 Citigroup 8.125% 15/07/2039 169,867 0.04

413,000 Comcast 3.375% 15/02/2025 437,443 0.09

556,000 Comerica 3.8% 22/07/2026 578,849 0.12

126,000 Conoco Phillips 2.875% 15/11/2021 129,932 0.03

176,000 Continental Resources 4.9% 01/06/2044 150,829 0.03

141,000 CSX 3.4% 01/08/2024 148,563 0.03

283,000 CSX 4.5% 01/08/2054 323,241 0.07

551,000 Directv Holdings 2.4% 15/03/2017 563,524 0.12

23,000 Dominion Resources 4.45% 15/03/2021 25,630 0.01

119,000 Dominion Resources 5.75% VRN 01/10/2054 124,950 0.03

460,000 Dow Chemical 3.5% 01/10/2024 474,619 0.10

83,000 Duke Energy Pogress 4.15% 01/12/2044 96,695 0.02

424,000 Eastman Chemical 2.4% 01/06/2017 433,038 0.09


635,000 Ebay 2.875% 01/08/2021 635,873 0.14

424,000 Energy Transfer Partners 5.15% 01/02/2043 444,980 0.09

28





United States (continued)

353,000 Fifth Third Bancorp 2.3% 01/03/2019 358,941 0.08

200,000 Fifth Third Bank 2.875% 01/10/2021 205,675 0.04

253,000 Ford Motor 3.664% 08/09/2024 262,584 0.06

240,000 Ford Motor Credit 5.875% 02/08/2021 284,219 0.06

304,000 General Electric 5.875% 14/01/2038 402,557 0.09

149,000 General Electric Capital 2.25% 09/11/2015 151,128 0.03


238,000 Goldman Sachs 2.5% 18/10/2021 290,916 0.06

247,000 Goldman Sachs 3.85% 08/07/2024 261,552 0.06

211,000 Goldman Sachs 5.75% 24/01/2022 250,503 0.05

466,000 HCP 3.875% 15/08/2024 489,356 0.10

388,000 Hewlett-Packard 2.6% 15/09/2017 398,965 0.09

565,000 Home Depot 2% 15/06/2019 577,439 0.12

141,000 Johnson Controls 4.625% 02/07/2044 156,990 0.03

517,000 JP Morgan Chase 3.875% 10/09/2024 534,495 0.11

157,000 JP Morgan Chase 4.25% 15/10/2020 172,259 0.04

50,000 JP Morgan Chase 5.375% 28/09/2016 80,087 0.02

527,000 Kilroy Realty 4.25% 15/08/2029 567,165 0.12

82,000 Kinder Morgan 5.55% 01/06/45 88,974 0.02

320,000 Kinder Morgan Energy 3.95% 01/09/2022 326,997 0.07

34,000 Kinder Morgan Energy Partners 5.4% 01/09/2044 36,003 0.01

253,000 Kroger 3.3% 15/01/2021 265,291 0.06

73,000 Kroger 6.4% 15/08/2017 81,795 0.02

141,000 Liberty Mutual Group 4.85% 01/08/2044 153,000 0.03

405,000 Lowe's Companies 4.25% 15/09/2044 457,310 0.10

260,000 Marathon Petroleum 3.625% 15/09/2024 262,968 0.06


205,000 Medtronic 4.625% 15/03/2045 238,024 0.05

294,000 Metropolitan Life Global Funding I 3% 10/01/2023 302,048 0.06

184,000 Microsoft 3.125% 06/12/2028 260,095 0.06

458,000 Monsanto 4.4% 15/07/2044 509,454 0.11

400,000 Morgan Stanley 2.375% 23/07/2019 403,352 0.09

155,000 Morgan Stanley 4.35% 08/09/2026 162,225 0.03

200,000 Morgan Stanley 5.375% 10/08/2020 277,013 0.06

126,000 Morgan Stanley 5.625% 23/09/2019 144,256 0.03

229,000 Motorola Solutions 4% 01/09/2024 239,183 0.05

281,000 New York Life Global Funding 2.15% 18/06/2019 286,189 0.06

84,000 Noble Energy 5.05% 15/11/2044 84,864 0.02

71,000 Oracle 2.8% 08/07/2021 74,245 0.02

207,000 Oracle 3.125% 10/07/2025 281,614 0.06

459,000 Oracle 4.3% 08/07/2034 520,843 0.11

565,000 Pepsi 3.6% 01/03/2024 612,361 0.13

565,000 Pfizer 3.4% 15/05/2024 610,364 0.13

500,000 Philip Morris International 1.875% 15/01/2019 507,000 0.11


646,000 PNC Bank 1.5% 18/10/2017 649,989 0.14

207,000 Prologis 3.375% 20/02/2024 271,365 0.06

25,000 Prudential Financial 5.375% 21/06/2020 28,977 0.01

268,000 Realty Income 4.125% 15/10/2026 288,988 0.06

597,000 Roche Holding 2.875% 29/09/2021 623,438 0.13

300,000 Simon Property Group 4.25% 01/10/2044 337,604 0.07

159,000 Sysco Corporation 4.5% 02/10/2044 174,578 0.04

29






890,000 Target 2.3% 26/06/2019 917,198 0.20

40,000 Teachers Insurance & Annuity 4.9% 15/09/2044 47,179 0.01


44,000 TIAA Asset Management Finance 2.95% 01/11/2019 45,013 0.01

30,000 Time Warner 3.55% 01/06/2024 31,321 0.01

253,000 Time Warner 4.65% 01/06/2044 281,828 0.06

318,000 Time Warner Cable 4% 01/09/2021 345,466 0.07

504,000 Toyota Motor Credit 2.1% 17/01/2019 515,816 0.11

427,000 US Bancorp 3.6% 11/09/2024 451,488 0.10

39,000 Verizon Communications 2.625% 21/02/2020 39,494 0.01

14,000 Verizon Communications 4.862% 21/08/2046 15,296 -


90,000 Walgreens Boots Alliance 4.8% 18/11/2044 102,072 0.02

94,000 Wal-Mart Stores 1.95% 15/12/2018 96,723 0.02

162,000 Wal-Mart Stores 5.625% 15/04/2041 219,644 0.05

216,000 Wells Fargo 1.4% 08/09/2017 217,095 0.05

260,000 Wells Fargo 3.3% 09/09/2024 271,409 0.06

283,000 Wells Fargo 4.1% 03/06/2026 300,048 0.06

115,000 Wells Fargo 4.65% 04/11/2044 127,178 0.03

565,000 Williams Partners 4.3% 04/03/2024 568,986 0.12

Treasury Bill 84,351,404 18.06


3,290,000 UK (Govt) 1.25% 22/07/2018 5,028,392 1.08

2,185,500 UK (Govt) 2.25% 07/09/2023 3,541,533 0.76

2,733,900 UK (Govt) 3.25% 22/01/2044 5,167,295 1.11

2,410,000 UK (Govt) 3.75% 07/09/2020 4,161,450 0.89

1,600,000 UK (Govt) 4% 07/09/2016 2,541,829 0.54

935,000 UK (Govt) 4% 22/01/2060 2,227,289 0.48

2,854,200 UK (Govt) 4.25% 07/12/2027 5,644,245 1.21

8,700 UK (Govt) 4.25% 07/06/2032 17,844 -

2,338,000 UK (Govt) 4.25% 07/03/2036 4,916,987 1.05

127,700 UK (Govt) 5% 07/03/2025 257,979 0.05


5,050,000 US (Govt) 0.25% 15/05/2016 5,049,112 1.08

9,470,000 US (Govt) 0.875% 15/04/2017 9,539,175 2.04

6,420,000 US (Govt) 1% 31/05/2018 6,438,809 1.38

8,990,000 US (Govt) 1.375% 31/05/2020 9,033,721 1.94

537,800 US (Govt) 2.5% 15/08/2023 575,877 0.12

3,960,000 US (Govt) 2.5% 15/05/2024 4,244,625 0.91

99,800 US (Govt) 2.75% 15/11/2023 108,981 0.02

99,400 US (Govt) 2.875% 15/05/2043 112,157 0.02

3,954,000 US (Govt) 3.375% 15/05/2044 4,906,590 1.05

7,400,000 US (Govt) 3.5% 15/02/2018 7,990,988 1.71

704,500 US (Govt) 3.625% 15/02/2044 911,309 0.20

268,900 US (Govt) 4.25% 15/05/2039 372,600 0.08

850,000 US (Govt) 6.125% 15/11/2027 1,258,448 0.27

215,100 US (Govt) 7.25% 15/08/2022 304,169 0.07

30





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

of the Luxembourg Law of 17 December 2010 232,312,865 49.74

Collective Investment Schemes 232,312,865 49.74

Ireland 23,713,749 5.08

1,652,814 HSBC ESI Worldwide Equity ETF 23,713,749 5.08

Luxembourg 157,393,526 33.70

729,118 HGIF Global Corporate Bond "ZC" 7,715,527 1.65

1,079,713 HGIF Global Emerging Markets Bond "ZD" 22,674,386 4.86

2,186,488 HGIF Global Emerging Markets Local Debt "ZD" 22,987,785 4.92

5,483,244 HGIF Global Government Bond "ZC" 59,356,116 12.71

2,498,401 HGIF Global High Yield Bond "Z" 24,956,528 5.34

281,269 HSBC International Select Fund - Global Real Estate Equity "X" 4,818,307 1.03

1,022,327 HSBC International Select Fund - MultiAlpha Global High Yield Bond "X" 14,884,877 3.19


15,973,965 FTSE All World Index "Institutional Acc" 26,150,526 5.60

3,094,973 HSBC American Index Acc 16,706,141 3.57

1,907,000 HSBC Corporate Bond Fund "Institutional Acc" 8,348,923 1.79

Total Investments 437,948,608 93.77

Other Net Assets 29,081,402 6.23

Net Assets 467,030,010 100.00

31






Bonds 169,457,554 34.75

Australia 10,653,939 2.19

770,000 Australia (Govt) 2.75% 21/04/2024 618,373 0.13

1,650,000 Australia (Govt) 3.25% 21/10/2018 1,343,158 0.28

1,480,000 Australia (Govt) 3.25% 21/04/2029 1,588,245 0.33

878,000 Australia (Govt) 4.75% 15/06/2016 708,559 0.14

970,000 Australia (Govt) 5.75% 15/05/2021 1,282,348 0.26

650,000 Australia (Govt) 5.75% 15/07/2022 868,556 0.18

1,293,000 Australia & New Zealand 2.25% 13/06/2019 1,321,763 0.27

100,000 BHP Billiton Finance 4.3% 25/09/2042 181,920 0.04


140,000 Macquarie Bank 3.5% 18/12/2020 224,341 0.05

95,000 QBE Insurance 6.125% 28/09/2015 147,256 0.03






Austria 1,445,533 0.30

423,000 OMV 6.75% VRN PERP 521,853 0.11



Belgium 1,594,866 0.33




50,800 Belgium (Govt) 1.25% 22/06/2018 59,831 0.01

80,000 Belgium (Govt) 2.25% 22/06/2023 104,064 0.02

180,300 Belgium (Govt) 3.5% 28/06/2017 220,952 0.05

99,400 Belgium (Govt) 3.75% 22/06/2045 177,504 0.04

11,800 Belgium (Govt) 5% 28/03/2035 22,608 -

Canada 7,485,113 1.53

1,081,000 Bank of Montreal 1.3% 14/07/2017 1,083,702 0.22

1,436,000 Bank of Nova Scotia 1.3% 21/07/2017 1,442,548 0.30

1,873,000 Canada (Govt) 1% 01/05/2016 1,486,679 0.30

116,000 Canada (Govt) 1.25% 01/02/2016 92,161 0.02

402,000 Canada (Govt) 1.75% 01/09/2019 332,993 0.07

580,000 Canada (Govt) 2.5% 01/06/2024 510,964 0.10

575,000 Canada (Govt) 3.5% 01/12/2045 624,315 0.13

24,000 Canada (Govt) 4% 01/06/2041 27,270 0.01

11,000 Canada (Govt) 5.75% 01/06/2033 14,150 -


1,013,000 Toronto-Dominion Bank 2.25% 25/09/2019 1,039,571 0.21


244,000 Alibaba Group 3.125% 28/11/2021 246,846 0.05


32





China 256,581 0.05

250,000 Industrial and Commercial Bank of China 3.231% 13/11/2019 256,581 0.05

Denmark 1,405,212 0.29


455,000 Danske Bank 3.875% VRN 04/10/2023 556,497 0.11

1,307,800 Denmark (Govt) 1.5% 15/11/2023 220,699 0.05

850,000 Denmark (Govt) 2.5% 15/11/2016 135,802 0.03

93,200 Denmark (Govt) 4% 15/11/2019 16,975 -

France 12,211,470 2.51

153,000 AXA VRN PERP 239,948 0.05

329,000 AXA 3.941% VRN PERP 394,870 0.08

22,000 BNP Paribas 5.75% 24/01/2022 38,844 0.01

450,000 Bouygues 4% 12/02/2018 560,601 0.11

431,000 BPCE 2.5% 15/07/2019 441,044 0.09

400,000 BPCE 3% 19/07/2024 535,849 0.11




100,000 Électricité de France 6% VRN PERP 171,415 0.03


91,600 France (Govt) 2.25% 25/05/2024 407,757 0.08

663,600 France (Govt) 3.25% 25/04/2016 779,441 0.16

105,000 France (Govt) 4% 25/10/2038 184,400 0.04

100,000 GDF Suez 4.625% VRN PERP 160,735 0.03

400,000 GDF Suez 4.75% VRN PERP 517,085 0.11

400,000 Gecina 4.75% 11/04/2019 525,727 0.11

300,000 Groupe Auchan 3.625% 19/10/2018 379,914 0.08

100,000 Hit Finance 5.75% 09/03/2018 130,765 0.03

423,000 Orange 4.25% VRN PERP 514,180 0.10

114,000 Orange 5.75% VRN PERP 185,129 0.04

104,000 Orange 8.125% 20/11/2028 248,057 0.05

500,000 Pernod Ricard 2% 22/06/2020 600,429 0.12

470,000 RCI Banque 2.25% 29/03/2021 571,247 0.12

17,000 RCI Banque 3% 09/05/2019 26,688 0.01

205,000 RCI Banque 3.25% 25/04/2018 322,858 0.07

392,000 Saint Gobain 4.5% 30/09/2019 520,629 0.11

300,000 Sanofi 1.75% 10/09/2026 363,885 0.07


450,000 Vinci 6.25% VRN PERP 525,830 0.11

Germany 2,912,725 0.59

517,000 Bayer 3% VRN 01/07/2075 614,630 0.13

11,000 Daimler 1.75% 08/11/2017 16,815 -

470,000 Daimler 2% 25/06/2021 575,615 0.12

120,000 Daimler 2.75% 04/12/2020 191,343 0.04


100,000 Munich Ruckvers 6.625% VRN 26/05/2042 183,092 0.04

100,000 RWE AG 7% VRN PERP 165,771 0.03


33





Ireland 1,036,606 0.21


120,000 GE Capital UK Funding 5.875% 14/01/2038 257,728 0.05

200,000 Perrigo Finance 4.9% 15/12/2044 224,208 0.05

Israel 446,541 0.09

440,000 Israel Electric 5% 12/11/2024 446,541 0.09

Italy 8,792,962 1.80

392,000 Atlantia 4.5% 08/02/2019 510,539 0.10

455,000 ENI 3.5% 29/01/2018 559,796 0.11

486,000 Intesa Sanpaolo 2% 18/06/2021 574,274 0.12

65,000 Italy (Govt) 1.15% 15/05/2017 74,526 0.02

200,000 Italy (Govt) 2.25% 15/05/2016 231,390 0.05

90,000 Italy (Govt) 3% 01/11/2015 103,663 0.02

356,000 Italy (Govt) 3.5% 01/06/2018 440,254 0.09

320,000 Italy (Govt) 4.25% 01/02/2019 411,745 0.08

560,000 Italy (Govt) 4.25% 01/03/2020 737,193 0.15

80,000 Italy (Govt) 4.5% 15/07/2015 92,032 0.02

290,000 Italy (Govt) 4.5% 01/05/2023 404,102 0.08

707,000 Italy (Govt) 4.75% 15/09/2016 854,300 0.18

26,000 Italy (Govt) 4.75% 01/06/2017 32,255 0.01

796,000 Italy (Govt) 4.75% 01/09/2028 1,184,208 0.24

146,000 Italy (Govt) 4.75% 01/09/2044 235,423 0.05

170,000 Italy (Govt) 5% 01/08/2039 275,115 0.06

346,000 Italy (Govt) 5.5% 01/09/2022 506,466 0.10

423,000 SNAM 3.875% 19/03/2018 525,837 0.11

423,000 Terna 2.875% 16/02/2018 511,170 0.10

423,000 Unicredit 3.25% 14/01/2021 528,674 0.11

Japan 3,272,438 0.67


31,500,000 Japan (Govt) 0.2% 20/03/2019 - -

76,000,000 Japan (Govt) 0.9% 20/03/2022 - -

646,000 Mizuho Bank 2.65% 25/09/2019 663,965 0.13

646,000 Mizuho Bank 3.6% 25/09/2024 681,507 0.14

1,292,000 Sumitomo Mitsui Banking 2.25% 11/07/2019 1,305,547 0.27

Jersey 1,811,271 0.37

100,000 CPUK Finance 7.239% 28/02/2024 203,974 0.04

130,000 Gatwick Airport 6.125% 02/03/2026 259,517 0.05




Luxembourg 1,985,213 0.41

790,000 Actavis Funding 2.45% 15/06/2019 790,498 0.16



100,000 Petrobras International Finance 6.25% 14/12/2026 128,969 0.03

34





Mexico 1,737,172 0.36

287,000 América Móvil 3.125% 16/07/2022 290,969 0.06

100,000 América Móvil 4.375% 07/08/2041 177,818 0.04



100,000 Petróleos Mexicanos 8.25% 02/06/2022 198,417 0.04


423,000 ABN Amro Bank 7.125% 06/07/2022 641,993 0.13

300,000 Allianz Finance 5.75% 08/07/2041 412,153 0.08

517,000 BMW Finance 1.625% 17/07/2019 615,931 0.13

20,000 BMW Finance 1.75% 20/11/2017 30,772 0.01




200,000 E.ON International Finance 5.875% 30/10/2037 426,363 0.09

400,000 ELM 5.252% VRN PERP 474,850 0.10


646,000 ING Bank 2.5% 01/10/2019 663,161 0.14

408,000 ING Bank 4.25% 13/01/2017 495,799 0.10

100,000 ING Bank 5.375% 15/04/2021 180,655 0.04


70,000 Koninklijke KPN 5.75% 17/09/2029 134,945 0.03

408,000 Koninklijke KPN 7.5% 04/02/2019 586,592 0.12


58,000 Netherlands (Govt) 1.25% 15/01/2019 68,767 0.01

50,000 Netherlands (Govt) 2% 15/07/2024 64,828 0.01

533,000 Rabobank 2.5% VRN 26/05/2026 622,091 0.13

144,000 Rabobank 8.375% VRN 31/12/2049 155,070 0.03



78,000 RWE Finance 6.25% 03/06/2030 160,987 0.03


120,000 Volkswagen Finance Services 2.75% 02/10/2020 192,172 0.04


423,000 Wolters Kluwer 2.5% 13/05/2024 536,670 0.11

Spain 9,983,277 2.04






18,000 Spain (Govt) 1.4% 31/01/2020 20,860 -

358,000 Spain (Govt) 2.75% 30/04/2019 438,257 0.09

1,400,000 Spain (Govt) 3.3% 30/07/2016 1,651,421 0.34

652,000 Spain (Govt) 3.75% 31/10/2018 820,423 0.17

1,160,000 Spain (Govt) 4.4% 31/10/2023 1,635,232 0.33

614,000 Spain (Govt) 5.15% 31/10/2028 960,974 0.20

120,000 Spain (Govt) 5.15% 31/10/2044 209,676 0.04

317,000 Spain (Govt) 5.75% 30/07/2032 547,489 0.11

96,000 Spain (Govt) 5.85% 31/01/2022 142,524 0.03



35





Sweden 3,932,576 0.81

423,000 Nordea Bank 4.625% VRN 15/02/2022 513,039 0.11


1,292,000 Svenska Handelsbanken 2.25% 17/06/2019 1,318,441 0.27

2,725,000 Sweden (Govt) 1.5% 13/11/2023 356,999 0.07

4,080,000 Sweden (Govt) 2.5% 12/05/2025 584,732 0.12

1,700,000 Sweden (Govt) 3.75% 12/08/2017 225,659 0.05

2,685,000 Sweden (Govt) 4.25% 12/03/2019 381,542 0.08


517,000 Credit Suisse 1.375% 29/11/2019 601,845 0.12

968,000 Credit Suisse 3.625% 09/09/2024 1,018,839 0.21

423,000 UBS 4.75% VRN 12/02/2026 522,168 0.11




150,000 Affinity Water Finance 5.875% 13/07/2026 302,525 0.06



100,000 Aviva 6.625% VRN 03/06/2041 174,783 0.04

130,000 B.A.T. International Finance 7.25% 12/03/2024 273,881 0.06

398,000 Barclays Bank 7.625% 21/11/2022 445,404 0.09

243,000 Barclays Bank 10% 21/05/2021 498,937 0.10

246,000 Barclays PLC 1.5% 01/04/2022 283,755 0.06

254,000 Barclays PLC 2.75% 08/11/2019 259,932 0.05




110,000 Circle Anglia Social Hsg 7.25% 12/11/2038 278,861 0.06

455,000 Compass Group 3.125% 13/02/2019 569,970 0.12

100,000 Everything Everywhere Finance 4.375% 28/03/2019 164,652 0.03

204,000 FCE Bank 1.875% 18/04/2019 241,285 0.05

125,000 Glaxo Smith Kline Capital 6.375% 09/03/2039 299,791 0.06

100,000 Hammerson 7.25% 21/04/2028 222,149 0.05



100,000 HSBC Holdings 6.75% 11/09/2028 200,967 0.04

100,000 Imperial Tobacco Finance 8.125% 15/03/2024 213,866 0.04

100,000 Legal & General Group 6.385% VRN PERP 162,178 0.03

100,000 Manc Airport Group Funding 4.75% 31/03/2034 184,282 0.04

423,000 Mondi Finance 3.375% 28/09/2020 532,438 0.11

120,000 National Grid Electricity Transmission 6.5% 27/07/2028 260,141 0.05

100,000 NGG Finance 5.625% VRN 18/06/2073 166,552 0.03

100,000 Peabody Capital 5.25% 17/03/2043 206,892 0.04

100,000 Prudential Financial 5.7% VRN 19/12/2063 185,768 0.04

100,000 Reed Elsevier Investments 2.75% 01/08/2019 156,932 0.03

100,000 Royal Bank of Scotland 7.5% 29/04/2024 213,646 0.04

170,000 Scottish & Southern Energy 5.453% PERP 260,444 0.05

200,000 Severn Trent Utilities Finance 6.25% 07/06/2029 425,211 0.09

246,000 Sky 1.5% 15/09/2021 285,119 0.06

566,000 Sky 3.75% 16/09/2024 592,732 0.12

36





United Kingdom (continued)

100,000 South Eastern Power Networks 6.375% 12/11/2031 216,684 0.04


100,000 Standard Chartered 4.375% 18/01/2038 170,521 0.02

75,000 Tesco 6% 14/12/2029 127,286 0.03

140,000 Thames Water Utilities Finance 5.125% 28/09/2037 277,170 0.06

100,000 United Utilities Water 5.625% 20/12/2027 198,543 0.04

376,000 Vodafone Group 4.65% 20/01/2022 528,878 0.11

250,000 Western Power Distribution 3.875% 17/10/2024 422,404 0.09

831,000 WPP Finance 3.75% 19/09/2024 875,234 0.18

70,000 Zurich Finance 6.625% VRN PERP 123,705 0.03






42,000 Altria Group 4.75% 05/05/2021 47,397 0.01

410,000 Altria Group 5.375% 31/01/2044 497,931 0.10

672,000 Amazon.com 4.95% 05/12/2044 745,416 0.15






100,000 American International Group 5% 26/04/2023 178,589 0.04

452,000 Amgen 3.875% 15/11/2021 489,695 0.10

100,000 Amgen 4% 13/09/2029 170,632 0.03

44,000 Apple 1% 03/05/2018 43,832 0.01

431,000 Apple 4.45% 06/05/2044 512,830 0.11

29,000 AT&T 2.625% 01/12/2022 28,718 0.01

470,000 AT&T 5.35% 01/09/2040 531,857 0.11

150,000 AT&T 7% 30/04/2040 353,976 0.07

327,000 Bank of America 1.7% 25/08/2017 328,454 0.07

345,000 Bank of America 1.875% 10/01/2019 406,969 0.08

32,000 Bank of America 2.65% 01/04/2019 32,704 0.01

575,000 Bank of America 3.3% 11/01/2023 588,472 0.12

67,000 Bank of America 4.2% 26/08/2024 69,614 0.01

59,000 Bank of America 5.7% 24/01/2022 69,358 0.01

150,000 Bank of America 7% 31/07/2028 330,464 0.07


790,000 Bed Bath & Beyond 5.165% 01/08/2044 883,572 0.18


1,018,000 Branch Banking & Trust 3.8% 30/10/2026 1,094,197 0.22



325,000 Capital One Bank 3.375% 15/02/2023 330,635 0.07

1,077,000 Capital One Financial 2.95% 23/07/2021 1,099,035 0.23

400,000 Cargill 4.875% 29/05/2017 499,680 0.10

27,000 Citigroup 3.375% 01/03/2023 27,924 0.01

235,000 Citigroup 4.375% 02/11/2018 302,418 0.06

430,000 Citigroup 5.5% 13/09/2025 488,981 0.10

50,000 Citigroup 5.875% 01/07/2024 92,893 0.02

117,000 Citigroup 8.125% 15/07/2039 185,742 0.04

37






837,000 Comcast 3.375% 15/02/2025 886,538 0.18

1,149,000 Comerica 3.8% 22/07/2026 1,196,218 0.25

261,000 Conoco Phillips 2.875% 15/11/2021 269,145 0.06


287,000 CSX 3.4% 01/08/2024 302,395 0.06

574,000 CSX 4.5% 01/08/2054 655,620 0.13

1,120,000 Directv Holdings 2.4% 15/03/2017 1,145,458 0.23




940,000 Dow Chemical 3.5% 01/10/2024 969,873 0.20




1,293,000 Ebay 2.875% 01/08/2021 1,294,778 0.27



304,000 Fifth Third Bank 2.875% 01/10/2021 312,626 0.06

529,000 Ford Motor 3.664% 08/09/2024 549,039 0.11





486,000 Goldman Sachs 2.5% 18/10/2021 594,056 0.12

502,000 Goldman Sachs 3.85% 08/07/2024 531,575 0.11

100,000 Goldman Sachs 4.25% 29/01/2026 170,721 0.03

232,000 Goldman Sachs 5.75% 24/01/2022 275,435 0.06

946,000 HCP 3.875% 15/08/2024 993,414 0.20

790,000 Hewlett-Packard 2.6% 15/09/2017 812,325 0.17

1,149,000 Home Depot 2% 15/06/2019 1,174,295 0.24


1,056,000 JP Morgan Chase 3.875% 10/09/2024 1,091,735 0.22

172,000 JP Morgan Chase 4.25% 15/10/2020 188,717 0.04

50,000 JP Morgan Chase 5.375% 28/09/2016 80,087 0.02

250,000 Key Bank 2.5% 15/12/2019 256,823 0.05

1,078,000 Kilroy Realty 4.25% 15/08/2029 1,160,160 0.24

169,000 Kinder Morgan 5.55% 01/06/45 183,373 0.04



513,000 Kroger 3.3% 15/01/2021 537,922 0.11

80,000 Kroger 6.4% 15/08/2017 89,638 0.02


820,000 Lowe's Companies 4.25% 15/09/2044 925,911 0.19



422,000 Medtronic 4.625% 15/03/2045 489,982 0.10


130,000 Metropolitan Life Global Funding I 3.5% 30/09/2026 219,595 0.05

376,000 Microsoft 3.125% 06/12/2028 531,498 0.11

933,000 Monsanto 4.4% 15/07/2044 1,037,818 0.21

38






800,000 Morgan Stanley 2.375% 23/07/2019 806,704 0.17

317,000 Morgan Stanley 4.35% 08/09/2026 331,777 0.07

400,000 Morgan Stanley 5.375% 10/08/2020 554,026 0.11

256,000 Morgan Stanley 5.625% 23/09/2019 293,091 0.06



174,000 Noble Energy 5.05% 15/11/2044 175,789 0.04

143,000 Oracle 2.8% 08/07/2021 149,536 0.03

423,000 Oracle 3.125% 10/07/2025 575,472 0.12

933,000 Oracle 4.3% 08/07/2034 1,058,708 0.22

1,149,000 Pepsi 3.6% 01/03/2024 1,245,315 0.26

1,149,000 Pfizer 3.4% 15/05/2024 1,241,253 0.25

1,025,000 Philip Morris International 1.875% 15/01/2019 1,039,350 0.21


1,317,000 PNC Bank 1.5% 18/10/2017 1,325,132 0.27

423,000 Prologis 3.375% 20/02/2024 554,529 0.11


547,000 Realty Income 4.125% 15/10/2026 589,838 0.12

1,309,000 Roche Holding 2.875% 29/09/2021 1,366,969 0.28



2,110,000 Target 2.3% 26/06/2019 2,174,482 0.45




33,000 Time Warner 3.55% 01/06/2024 34,453 0.01

513,000 Time Warner 4.65% 01/06/2044 571,454 0.12


1,025,000 Toyota Motor Credit 2.1% 17/01/2019 1,049,031 0.22

870,000 US Bancorp 3.6% 11/09/2024 919,895 0.19




919,000 Verizon Communications 5.15% 15/09/2023 1,052,163 0.22


103,000 Wal-Mart Stores 1.95% 15/12/2018 105,983 0.02

100,000 Wal-Mart Stores 5.625% 27/03/2034 217,645 0.04

330,000 Wal-Mart Stores 5.625% 15/04/2041 447,424 0.09

442,000 Wells Fargo 1.4% 08/09/2017 444,241 0.09

528,000 Wells Fargo 3.3% 09/09/2024 551,169 0.11

574,000 Wells Fargo 4.1% 03/06/2026 608,578 0.12

236,000 Wells Fargo 4.65% 04/11/2044 260,991 0.05

100,000 Wells Fargo 4.875% 29/11/2035 182,119 0.04

1,149,000 Williams Partners 4.3% 04/03/2024 1,157,106 0.24

39





Treasury Bill 37,837,436 7.76


1,700,000 UK (Govt) 1.25% 22/07/2018 2,598,257 0.53

1,032,200 UK (Govt) 2.25% 07/09/2023 1,672,647 0.34

1,039,600 UK (Govt) 3.25% 22/01/2044 1,964,929 0.40

850,000 UK (Govt) 3.75% 07/09/2020 1,467,731 0.30

810,000 UK (Govt) 4% 07/09/2016 1,286,801 0.26

440,000 UK (Govt) 4% 22/01/2060 1,048,136 0.22

1,324,500 UK (Govt) 4.25% 07/12/2027 2,619,229 0.54

9,500 UK (Govt) 4.25% 07/06/2032 19,485 0.01

1,115,400 UK (Govt) 4.25% 07/03/2036 2,345,769 0.48

140,100 UK (Govt) 5% 07/03/2025 283,030 0.06


950,000 US (Govt) 0.25% 15/05/2016 949,833 0.20

5,100,000 US (Govt) 0.875% 15/04/2017 5,137,254 1.05

3,810,000 US (Govt) 1% 31/05/2018 3,821,162 0.78

4,340,000 US (Govt) 1.375% 31/05/2020 4,361,107 0.89

590,000 US (Govt) 2.5% 15/08/2023 631,773 0.13

1,260,000 US (Govt) 2.5% 15/05/2024 1,350,563 0.28

109,500 US (Govt) 2.75% 15/11/2023 119,573 0.02

109,100 US (Govt) 2.875% 15/05/2043 123,102 0.03

1,165,000 US (Govt) 3.375% 15/05/2044 1,445,669 0.30

2,150,000 US (Govt) 3.5% 15/02/2018 2,321,706 0.48

722,800 US (Govt) 3.625% 15/02/2044 934,981 0.19

295,000 US (Govt) 4.25% 15/05/2039 408,765 0.08

400,000 US (Govt) 6.125% 15/11/2027 592,211 0.12

236,000 US (Govt) 7.25% 15/08/2022 333,723 0.07




Ireland 34,027,593 6.98


Luxembourg 142,827,578 29.30

3,726,993 HGIF Global Corporate Bond "ZC" 39,408,394 8.08




1,277,097 HSBC International Select Fund - Global Real Estate Equity "X" 21,877,440 4.49







Net Assets 487,412,977 99.98

40






Bonds 140,486,430 23.03

Australia 4,244,701 0.70

1,293,000 Australia & New Zealand 2.25% 13/06/2019 1,321,763 0.22

100,000 BHP Billiton Finance 4.3% 25/09/2042 181,920 0.03


140,000 Macquarie Bank 3.5% 18/12/2020 224,341 0.04

95,000 QBE Insurance 6.125% 28/09/2015 147,256 0.02






Austria 1,445,533 0.24

423,000 OMV 6.75% VRN PERP 521,853 0.09



Belgium 1,036,469 0.17




Canada 3,312,879 0.54

1,436,000 Bank of Nova Scotia 1.3% 21/07/2017 1,442,548 0.24


1,013,000 Toronto-Dominion Bank 2.25% 25/09/2019 1,039,571 0.17


244,000 Alibaba Group 3.125% 28/11/2021 246,846 0.04


China 256,581 0.04

250,000 Industrial and Commercial Bank of China 3.231% 13/11/2019 256,581 0.04

Denmark 1,031,737 0.17


455,000 Danske Bank 3.875% VRN 04/10/2023 556,498 0.09

41





France 10,856,242 1.78

153,000 AXA VRN PERP 239,948 0.04

329,000 AXA 3.941% VRN PERP 394,870 0.06

28,000 BNP Paribas 5.75% 24/01/2022 49,438 0.01

450,000 Bouygues 4% 12/02/2018 560,601 0.09

430,000 BPCE 2.5% 15/07/2019 440,021 0.07

400,000 BPCE 3% 19/07/2024 535,849 0.09




100,000 Électricité de France 6% VRN PERP 171,415 0.03


100,000 GDF Suez 4.625% VRN PERP 160,735 0.03

400,000 GDF Suez 4.75% VRN PERP 517,085 0.08

400,000 Gecina 4.75% 11/04/2019 525,727 0.09

300,000 Groupe Auchan 3.625% 19/10/2018 379,914 0.06

100,000 Hit Finance 5.75% 09/03/2018 130,765 0.02

423,000 Orange 4.25% VRN PERP 514,180 0.08

114,000 Orange 5.75% VRN PERP 185,129 0.03

104,000 Orange 8.125% 20/11/2028 248,057 0.04

500,000 Pernod Ricard 2% 22/06/2020 600,429 0.10

470,000 RCI Banque 2.25% 29/03/2021 571,247 0.09

22,000 RCI Banque 3% 09/05/2019 34,537 0.01

205,000 RCI Banque 3.25% 25/04/2018 322,858 0.05

392,000 Saint Gobain 4.5% 30/09/2019 520,629 0.09

300,000 Sanofi 1.75% 10/09/2026 363,885 0.06


450,000 Vinci 6.25% VRN PERP 525,830 0.09

Germany 2,918,840 0.48

517,000 Bayer 3% VRN 01/07/2075 614,630 0.10

15,000 Daimler 1.75% 08/11/2017 22,929 -

470,000 Daimler 2% 25/06/2021 575,615 0.10

120,000 Daimler 2.75% 04/12/2020 191,344 0.03


100,000 Munich Ruckvers 6.625% VRN 26/05/2042 183,092 0.03

100,000 RWE AG 7% VRN PERP 165,771 0.03


Ireland 1,036,606 0.17


120,000 GE Capital UK Funding 5.875% 14/01/2038 257,728 0.04

200,000 Perrigo Finance 4.9% 15/12/2044 224,208 0.04

Israel 446,541 0.07

440,000 Israel Electric 5% 12/11/2024 446,541 0.07

42





Italy 3,210,290 0.53

392,000 Atlantia 4.5% 08/02/2019 510,539 0.08

455,000 ENI 3.5% 29/01/2018 559,796 0.09

486,000 Intesa Sanpaolo 2% 18/06/2021 574,274 0.10

423,000 SNAM 3.875% 19/03/2018 525,837 0.09

423,000 Terna 2.875% 16/02/2018 511,170 0.08

423,000 Unicredit 3.25% 14/01/2021 528,674 0.09

Japan 3,271,439 0.54


646,000 Mizuho Bank 2.65% 25/09/2019 663,965 0.11

646,000 Mizuho Bank 3.6% 25/09/2024 681,507 0.11

1,290,000 Sumitomo Mitsui Banking 2.25% 11/07/2019 1,303,526 0.22

Jersey 1,811,271 0.29

100,000 CPUK Finance 7.239% 28/02/2024 203,974 0.03

130,000 Gatwick Airport 6.125% 02/03/2026 259,517 0.04




Luxembourg 1,984,212 0.33

789,000 Actavis Funding 2.45% 15/06/2019 789,497 0.13



100,000 Petrobras International Finance 6.25% 14/12/2026 128,969 0.02

Mexico 1,737,172 0.28

287,000 América Móvil 3.125% 16/07/2022 290,969 0.05

100,000 América Móvil 4.375% 07/08/2041 177,818 0.03



100,000 Petróleos Mexicanos 8.25% 02/06/2022 198,417 0.03


423,000 ABN Amro Bank 7.125% 06/07/2022 641,993 0.11

300,000 Allianz Finance 5.75% 08/07/2041 412,153 0.07

517,000 BMW Finance 1.625% 17/07/2019 615,931 0.10

25,000 BMW Finance 1.75% 20/11/2017 38,465 0.01




100,000 E.ON International Finance 5.875% 30/10/2037 213,181 0.03

400,000 ELM 5.252% VRN PERP 474,850 0.08


646,000 ING Bank 2.5% 01/10/2019 663,161 0.11

408,000 ING Bank 4.25% 13/01/2017 495,799 0.08

100,000 ING Bank 5.375% 15/04/2021 180,655 0.03


70,000 Koninklijke KPN 5.75% 17/09/2029 134,945 0.02

408,000 Koninklijke KPN 7.5% 04/02/2019 586,592 0.10


533,000 Rabobank 2.5% VRN 26/05/2026 622,091 0.10

184,000 Rabobank 8.375% VRN 31/12/2049 198,145 0.03



78,000 RWE Finance 6.25% 03/06/2030 160,987 0.03


120,000 Volkswagen Finance Services 2.75% 02/10/2020 192,172 0.03


423,000 Wolters Kluwer 2.5% 13/05/2024 536,670 0.09

43





Spain 3,556,421 0.58








Sweden 2,569,613 0.42

423,000 Nordea Bank 4.625% VRN 15/02/2022 513,039 0.08


1,290,000 Svenska Handelsbanken 2.25% 17/06/2019 1,316,400 0.22

113,000 Svenska Handelsbanken 4% 18/01/2019 188,010 0.03


517,000 Credit Suisse 1.375% 29/11/2019 601,845 0.10

968,000 Credit Suisse 3.625% 09/09/2024 1,018,839 0.17

423,000 UBS 4.75% VRN 12/02/2026 522,168 0.08




150,000 Affinity Water Finance 5.875% 13/07/2026 302,525 0.05



100,000 Aviva 6.625% VRN 03/06/2041 174,783 0.03

509,000 Barclays Bank 7.625% 21/11/2022 569,624 0.09

271,000 Barclays Bank 10% 21/05/2021 556,428 0.09

246,000 Barclays PLC 1.5% 01/04/2022 283,755 0.05

254,000 Barclays PLC 2.75% 08/11/2019 259,932 0.04

130,000 B.A.T. International Finance 7.25% 12/03/2024 273,881 0.04



15,000 British Telecommunications 8.625% 26/03/2020 29,832 -

110,000 Circle Anglia Social Hsg 7.25% 12/11/2038 278,861 0.05

455,000 Compass Group 3.125% 13/02/2019 569,970 0.09

100,000 Everything Everywhere Finance 4.375% 28/03/2019 164,652 0.03

204,000 FCE Bank 1.875% 18/04/2019 241,285 0.04

125,000 Glaxo Smith Kline Capital 6.375% 09/03/2039 299,791 0.05

100,000 Hammerson 7.25% 21/04/2028 222,149 0.04



100,000 HSBC Holdings 6.75% 11/09/2028 200,967 0.03

100,000 Imperial Tobacco Finance 8.125% 15/03/2024 213,866 0.04

100,000 Legal & General Group 6.385% VRN PERP 162,178 0.03

100,000 Manc Airport Group Funding 4.75% 31/03/2034 184,282 0.03

423,000 Mondi Finance 3.375% 28/09/2020 532,438 0.09

120,000 National Grid Electricity Transmission 6.5% 27/07/2028 260,141 0.04

100,000 NGG Finance 5.625% VRN 18/06/2073 166,552 0.03

100,000 Peabody Capital 5.25% 17/03/2043 206,892 0.03

100,000 Prudential Financial 5.7% VRN 19/12/2063 185,768 0.03

100,000 Reed Elsevier Investments 2.75% 01/08/2019 156,932 0.03

100,000 Royal Bank of Scotland 7.5% 29/04/2024 213,646 0.03

44





United Kingdom (continued)

170,000 Scottish & Southern Energy 5.453% PERP 260,444 0.04

100,000 Severn Trent Utilities Finance 6.25% 07/06/2029 212,605 0.03

246,000 Sky 1.5% 15/09/2021 285,119 0.05

566,000 Sky 3.75% 16/09/2024 592,732 0.10

100,000 South Eastern Power Networks 6.375% 12/11/2031 216,684 0.04


100,000 Standard Chartered 4.375% 18/01/2038 170,521 0.03

75,000 Tesco 6% 14/12/2029 127,286 0.02

140,000 Thames Water Utilities Finance 5.125% 28/09/2037 277,170 0.05

100,000 United Utilities Water 5.625% 20/12/2027 198,543 0.03

376,000 Vodafone Group 4.65% 20/01/2022 528,878 0.09

250,000 Western Power Distribution 3.875% 17/10/2024 422,404 0.07

831,000 WPP Finance 3.75% 19/09/2024 875,234 0.14

70,000 Zurich Finance 6.625% VRN PERP 123,705 0.02






54,000 Altria Group 4.75% 05/05/2021 60,940 0.01

410,000 Altria Group 5.375% 31/01/2044 497,931 0.08

672,000 Amazon.com 4.95% 05/12/2044 745,416 0.12






100,000 American International Group 5% 26/04/2023 178,589 0.03

452,000 Amgen 3.875% 15/11/2021 489,695 0.08

100,000 Amgen 4% 13/09/2029 170,632 0.03

57,000 Apple 1% 03/05/2018 56,782 0.01

430,000 Apple 4.45% 06/05/2044 511,640 0.08

37,000 AT&T 2.625% 01/12/2022 36,640 0.01

470,000 AT&T 5.35% 01/09/2040 531,857 0.09

150,000 AT&T 7% 30/04/2040 353,976 0.06

327,000 Bank of America 1.7% 25/08/2017 328,454 0.05

345,000 Bank of America 1.875% 10/01/2019 406,969 0.07

40,000 Bank of America 2.65% 01/04/2019 40,880 0.01

574,000 Bank of America 3.3% 11/01/2023 587,449 0.10

67,000 Bank of America 4.2% 26/08/2024 69,614 0.01

76,000 Bank of America 5.7% 24/01/2022 89,343 0.01

150,000 Bank of America 7% 31/07/2028 330,464 0.05


789,000 Bed Bath & Beyond 5.165% 01/08/2044 882,453 0.14


1,018,000 Branch Banking & Trust 3.8% 30/10/2026 1,094,197 0.18



325,000 Capital One Bank 3.375% 15/02/2023 330,635 0.05

1,077,000 Capital One Financial 2.95% 23/07/2021 1,099,035 0.18

45






400,000 Cargill 4.875% 29/05/2017 499,680 0.08

35,000 Citigroup 3.375% 01/03/2023 36,197 0.01

235,000 Citigroup 4.375% 02/11/2018 302,418 0.05

430,000 Citigroup 5.5% 13/09/2025 488,981 0.08

50,000 Citigroup 5.875% 01/07/2024 92,893 0.02

150,000 Citigroup 8.125% 15/07/2039 238,131 0.04

837,000 Comcast 3.375% 15/02/2025 886,538 0.15

1,149,000 Comerica 3.8% 22/07/2026 1,196,218 0.20

261,000 Conoco Phillips 2.875% 15/11/2021 269,145 0.04


287,000 CSX 3.4% 01/08/2024 302,395 0.05

573,000 CSX 4.5% 01/08/2054 654,478 0.11

1,120,000 Directv Holdings 2.4% 15/03/2017 1,145,458 0.19




940,000 Dow Chemical 3.5% 01/10/2024 969,873 0.16




1,290,000 Ebay 2.875% 01/08/2021 1,291,774 0.21



304,000 Fifth Third Bank 2.875% 01/10/2021 312,626 0.05

529,000 Ford Motor 3.664% 08/09/2024 549,039 0.09





486,000 Goldman Sachs 2.5% 18/10/2021 594,056 0.10

501,000 Goldman Sachs 3.85% 08/07/2024 530,516 0.09

100,000 Goldman Sachs 4.25% 29/01/2026 170,721 0.03

297,000 Goldman Sachs 5.75% 24/01/2022 352,604 0.06

946,000 HCP 3.875% 15/08/2024 993,414 0.16

788,000 Hewlett-Packard 2.6% 15/09/2017 810,269 0.13

1,147,000 Home Depot 2% 15/06/2019 1,172,251 0.19


1,056,000 JP Morgan Chase 3.875% 10/09/2024 1,091,735 0.18

220,000 JP Morgan Chase 4.25% 15/10/2020 241,382 0.04

100,000 JP Morgan Chase 5.375% 28/09/2016 160,175 0.03

250,000 Key Bank 2.5% 15/12/2019 256,822 0.04

1,077,000 Kilroy Realty 4.25% 15/08/2029 1,159,084 0.19

169,000 Kinder Morgan 5.55% 01/06/45 183,373 0.03



513,000 Kroger 3.3% 15/01/2021 537,922 0.09

102,000 Kroger 6.4% 15/08/2017 114,289 0.02


820,000 Lowe's Companies 4.25% 15/09/2044 925,911 0.15

46








422,000 Medtronic 4.625% 15/03/2045 489,982 0.08


130,000 Metropolitan Life Global Funding I 3.5% 30/09/2026 219,595 0.04

376,000 Microsoft 3.125% 06/12/2028 531,498 0.09

931,000 Monsanto 4.4% 15/07/2044 1,035,593 0.17

800,000 Morgan Stanley 2.375% 23/07/2019 806,704 0.13

317,000 Morgan Stanley 4.35% 08/09/2026 331,777 0.05

400,000 Morgan Stanley 5.375% 10/08/2020 554,026 0.09

256,000 Morgan Stanley 5.625% 23/09/2019 293,091 0.05



174,000 Noble Energy 5.05% 15/11/2044 175,789 0.03

143,000 Oracle 2.8% 08/07/2021 149,536 0.02

423,000 Oracle 3.125% 10/07/2025 575,472 0.09

931,000 Oracle 4.3% 08/07/2034 1,056,438 0.17

1,147,000 Pepsi 3.6% 01/03/2024 1,243,147 0.20

1,147,000 Pfizer 3.4% 15/05/2024 1,239,093 0.20


1,317,000 PNC Bank 1.5% 18/10/2017 1,325,132 0.22

423,000 Prologis 3.375% 20/02/2024 554,529 0.09


547,000 Realty Income 4.125% 15/10/2026 589,838 0.10

1,309,000 Roche Holding 2.875% 29/09/2021 1,366,969 0.22






42,000 Time Warner 3.55% 01/06/2024 43,849 0.01

513,000 Time Warner 4.65% 01/06/2044 571,454 0.09


1,023,000 Toyota Motor Credit 2.1% 17/01/2019 1,046,984 0.17

870,000 US Bancorp 3.6% 11/09/2024 919,895 0.15




917,000 Verizon Communications 5.15% 15/09/2023 1,049,873 0.17


132,000 Wal-Mart Stores 1.95% 15/12/2018 135,823 0.02

100,000 Wal-Mart Stores 5.625% 27/03/2034 217,645 0.04

330,000 Wal-Mart Stores 5.625% 15/04/2041 447,424 0.07

442,000 Wells Fargo 1.4% 08/09/2017 444,241 0.07

528,000 Wells Fargo 3.3% 09/09/2024 551,169 0.09

573,000 Wells Fargo 4.1% 03/06/2026 607,518 0.10

236,000 Wells Fargo 4.65% 04/11/2044 260,991 0.04

100,000 Wells Fargo 4.875% 29/11/2035 182,119 0.03

1,147,000 Williams Partners 4.3% 04/03/2024 1,155,092 0.19

47








Ireland 112,253,188 18.40


2,213,443 HSBC Worldwide Equity ETF 34,513,110 5.66

Luxembourg 178,573,446 29.27



1,732,614 HGIF Global Government Bond "ZC" 18,755,546 3.07









Net Assets 610,073,734 100.00

48








Ireland 293,945,254 41.40


233,530 HSBC MSCI Emerging Markets ETF 2,240,345 0.32

1,177,776 HSBC MSCI World ETF 19,792,526 2.79


167,384 Vanguard FTSE All-World ETF 11,378,764 1.60

Luxembourg 195,416,166 27.52

1,206,936 HGIF Global Corporate Bond "ZC" 12,771,800 1.80











Net Assets 710,018,824 100.00

49








Ireland 187,016,957 54.71


668,022 HSBC MSCI Emerging Markets ETF 6,408,596 1.87

3,236,006 HSBC MSCI World ETF 54,381,081 15.91


Luxembourg 37,974,361 11.11








Net Assets 341,829,653 100.00

50

51

Fund Holiday Calendar for 2015

All HSBC Portfolios sub-funds have holidays on: all Saturdays and Sundays and on the following dates :

01-Jan Luxembourg 03-Apr Luxembourg 06-Apr Luxembourg 01-May Luxembourg 04-May UK 14-May Luxembourg 25-May Luxembourg 23-Jun Luxembourg 31-Aug UK 25-Dec Luxembourg 28-Dec UK

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 2015. All Rights Reserved 14846/0608

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