HSBC Global Investment Funds · 2020-07-31 · HSBC Global Asset Management (Malta) Ltd Operations Centre, 80 Mill Street, Qormi, QRM 3101, Malta. HSBC Global Asset Management (Bermuda)

HSBC Global Investment Funds Annual Report 2020

Audited annual report for the year from 1 April 2019 to 31 March 2020

Société d'Investissement à Capital Variable (SICAV), Luxembourg

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Information concerning the distribution of shares of HSBC Global Investment Funds in or from Switzerland. Legal Representative of the Company in Switzerland: HSBC Global Asset Management (Switzerland) Ltd., Gartenstrasse 26, P.O. Box, CH-8002 Zurich. The Prospectus, Key Investor Information Documents (KIIDs), Articles and annual and semi-annual reports of the Company may be obtained free of charge upon request from the Legal Representative in Switzerland. A breakdown of all transactions carried out on behalf of each sub-fund of the Company for the period under review can be obtained, free of charge, from the Legal Representative in Switzerland.

Additional notes for Hong Kong residents in relation to HSBC Global Investment Funds.

The following sub-funds of HSBC Global Investment Funds referred to in this document are not authorised in Hong Kong and not available to Hong Kong residents;

Asia Bond Global Bond Total Return

Asian Currencies Bond Global Corporate Fixed Term Bond 2020

Asia High Yield Bond (launched as at 27 November

2019)

Global Credit Floating Rate Fixed Term Bond 2022 - 1


Brazil Bond

China A-shares Equity (launched as at 16 September

(launched as at 24 June 2019)


2019)

China Multi-Asset Income

(launched as at 19 September 2019)

Global Emerging Markets Local Currency Rates

Economic Scale GEM Equity Global Emerging Markets Local Debt

Euro Convertible Bond Global Inflation Linked Bond

Euro Credit Bond Global Short Duration High Yield Bond

Euro Credit Bond Total Return Indonesia Bond (closed as at 3 July 2019)

Euroland Growth Mexico Equity

Frontier Markets Multi-Asset Style Factors

GEM Debt Total Return Multi-Strategy Target Return

GEM Inflation Linked Bond (closed as at 9 January 2020) RMB Fixed Income

Global Securitised Credit Bond Singapore Dollar Income Bond

Global High Yield Securitised Credit Bond Turkey Equity

Statement of changes in the investment portfolio

A list, specifying for each sub-fund total purchases and sales transacted during the year under review, may be obtained, upon request, at the registered office of the Company.

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.

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Table of Contents Board of Directors 3

Management and Administration 4

Directors’ Report 7

Investment Advisers’ Report 10

Audit Report 15

Statement of Net Assets as at 31 March 2020 18

Key Figures as at 31 March 2020 34

Statement of Operations and Changes in Net Assets for the year ended 31 March 2020 58

Notes to the Financial Statements for the year ended 31 March 2020 75

Publication of performance for sub-funds distributed in Switzerland – Information concerning the Swiss Investors 230

Table of Contents : Portfolio of Investments and Other Net Assets as at 31 March 2020 252

Portfolio of Investments and Other Net Assets as at 31 March 2020 253

Currency Conversion Table 536

Appendix I (Unaudited Additional Disclosures) – Taxation of the Company (foreign countries) 537

Appendix II (Unaudited Additional Disclosures) – UK SORP Disclosure 540

Appendix III (Unaudited Additional Disclosures) – Dealing Days of the Fund 551

Appendix IV (Unaudited Additional Disclosures) – Fund Holiday Calendar for 2020 552

Appendix V (Unaudited Additional Disclosures) – Investment Advisers 575

Appendix Vl (Unaudited Additional Disclosures) – Risk Management 580

Appendix VII (Unaudited Additional Disclosures) – Securities Financing Transactions Regulation (“SFTR”)

591

Board of Directors

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Anthony Jeffs, (Chairman), Head of Product Platforms (Appointed with effect from 8 November 2019. Appointed Chairman 8 January 2020) HSBC Global Asset Management Limited, 8 Canada Square, Canary Wharf, London E14 5HQ, United Kingdom.

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

Jean de Courrèges, Independent Director Resident in Luxembourg.

Eimear Cowhey, Independent DirectorResident in the Republic of Ireland.

John Li, Independent Director The Directors’ Office S.A., 19, Rue de Bitbourg, L-1273 Luxembourg, Grand Duchy of Luxembourg.

Matteo Pardi, Chief Executive Officer HSBC Global Asset Management (France) Immeuble Coeur Défense - Tour A, 110 Esplanade du Général de Gaulle - La Défense 4, 75419 Paris Cedex 08, France.

George Efthimiou (Chairman), Global Chief Operating Officer (Resigned 8 January 2020) HSBC Global Asset Management Limited, 8 Canada Square, Canary Wharf, London E14 5HQ, United Kingdom.

Joanna Munro, Global Head of Fiduciary Governance (Resigned 25 September 2019) HSBC Global Asset Management Limited, 8 Canada Square, Canary Wharf, London E14 5HQ, United Kingdom.

Peter Dew, Independent Director(Resigned 8 January 2020)Resident in the United Kingdom.

Management and Administration

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Registered Office 16, boulevard d’Avranches, L-1160 Luxembourg Grand Duchy of Luxembourg, R.C.S. Luxembourg N° B-25087.

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

Administration Agent, Depositary Bank, Central Paying Agent, Domiciliary Agent, Registrar and Transfer Agent

HSBC France, Luxembourg Branch 16, boulevard d’Avranches, L-1160 Luxembourg, Grand Duchy of Luxembourg.

Investment Advisers HSBC Global Asset Management (France) Immeuble C ur Défense - Tour A, 110 Esplanade du Général de Gaulle - La Défense 4, 75419 Paris Cedex 08, France.

HSBC Global Asset Management (Hong Kong) Limited Level 22, HSBC Main Building, Queen's Road Central, Hong Kong SAR.

HSBC Global Asset Management (Mexico) S.A. de C.V Paseo de la Reforma no. 347, P. 15, Col. Cuauhtémoc, C.P. 06500, México, D.F., México.

HSBC Global Asset Management (UK) Limited 8, Canada Square, London E14 5HQ, United Kingdom.

HSBC Global Asset Management (USA) Inc. 452 Fifth Avenue, 7th Floor, New York, NY 10018, USA.

HSBC Portfoy Yonetimi A.S. Esentepe Mahallesi, Büyükdere Caddesi, No:128, 34394 Sisli, Istanbul, Turkey.

Management and Administration (continued)

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

HSBC Investment Funds (Hong Kong) Limited HSBC Main Building, 1 Queen's Road Central, Hong Kong SAR.

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

HSBC Global Asset Management (France) Immeuble Coeur Défense - Tour A, 110 Esplanade du Général de Gaulle - La Défense 4, 75419 Paris Cedex 08, France.

HSBC Trinkaus & Burkhardt AG Königsallee 21/23, D-40212 Düsseldorf, Germany.

HSBC Global Asset Management (UK) Limited 8 Canada Square, London E14 5HQ, United Kingdom.

HSBC Global Asset Management (Malta) Ltd Operations Centre, 80 Mill Street, Qormi, QRM 3101, Malta.

HSBC Global Asset Management (Bermuda) Limited 6 Front Street, 2nd Floor, Hamilton HM 11, Bermuda.

HSBC Securities (USA) Inc 452 Fifth Avenue, New York, 10018, United States.

HSBC Saudi Arabia 7267 Olaya-AlMurooj, Riyadh 12283-225 Kingdom of Saudi Arabia.

HSBC Bank Australia Level 36, Tower 1, International Towers Sydney, 100 Barangaroo Avenue, Sydney NSW 2000, Australia.

HSBC Global Asset Management (Japan) K. K. HSBC Building 11-1, Nihonbashi 3 –Chome, Chuo-Ku, Tokyo, 103-0027, Japan.

Management and Administration (continued)

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Paying Agent in Switzerland HSBC Private Bank (Suisse) S.A. Quai des Bergues 9-17, Case Postale 2888, CH-1211 Geneva 1, Switzerland.

Paying Agent in Hong Kong The Hong Kong and Shanghai Banking Corporation Limited HSBC Main Building, 1 Queen’s Road Central,

Hong Kong SAR.

Representative and Paying Agent in Poland

HSBC France, Poland Branch (Formerly HSBC Bank Polska S.A.)

Kraków Business Park 200, Ul. Krakowska 280, 32-080 Zabierzów,

Poland.

Auditor PricewaterhouseCoopers, Société coopérative 2, rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg,

Grand Duchy of Luxembourg.

Legal Adviser Elvinger Hoss Prussen société anonyme

2, Place Winston Churchill, L-1340 Luxembourg,

Grand Duchy of Luxembourg.

Directors’ Report

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The Board of Directors presents the Audited Annual Report and Accounts for HSBC Global Investment Funds (the “Company”) for the year ending 31 March 2020.

The Company

The Company is a variable capital investment company, incorporated under the laws of the Grand Duchy of Luxembourg and is organized as an “umbrella” with a number of sub-funds, each of which has their own investment policies and restrictions. At present, the Company has issued shares in 77 sub-funds. During the year, the total net assets of the Company decreased from USD 34.7 billion to USD 30.4 billion at year end.

The Company qualifies as an Undertaking for Collective Investment in Transferable Securities under the amended Directive 2009/65/EC of 13 July 2009 and may therefore be offered for sale in European Union Member States, subject to registration in countries other than the Grand Duchy of Luxembourg. In addition, applications to register the Company and its sub-funds may be made in other non-European countries. The Company and its sub-funds are currently registered for offer and distribution in the Grand Duchy of Luxembourg and in the following jurisdictions: Austria, Bahrain, Belgium, Brunei, Chile, Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Jersey, Korea, Lebanon, Macau, Malaysia, Malta, Netherlands, Norway, Oman, Poland, Portugal, Qatar, Saudi Arabia, Singapore, Spain, Sweden, Switzerland, Taiwan, United Arab Emirates and United Kingdom.

Responsibility of the Directors

The responsibility of the directors of the Company (the “Directors”) is governed exclusively by Luxembourg law. With respect to these financial statements, the duties of the Directors are governed by general corporate law and the law of 19 December 2002 on, inter alia, the accounting and annual accounts of undertakings, as amended, and by the law of 17 December 2010 relating to undertakings for collective investment, as amended (the “2010 Law”). Since 1 July 2011, the Company is governed by Part I of the 2010 Law implementing the Directive 2009/65/EC into Luxembourg Law.

Remuneration Policy

HSBC Investment Funds (Luxembourg) S.A. (“HIFL”) has implemented a remuneration policy pursuant to Directive 2014/91/EU of the European Parliament and of the Council of 23 July 2014 amending Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) as regards to depositary functions, remuneration policies and sanctions (the “UCITS V Directive”), which was transposed into Luxembourg law on 1 June 2016 by way of the Luxembourg law of 10 May 2016.

The remuneration policy, which has been approved by HIFL’s board of directors, includes measures to avoid conflicts of interest and seeks to promote sound and effective risk management and that neither encourage risk taking which is inconsistent with the risk profile and articles of incorporation of the Company nor impair compliance with HIFL’s duty to act in the best interest of the Company.

The remuneration policy, which describes how remuneration and benefits are determined, is available at www.global.assetmanagement.hsbc.com/about-us/governance-structure, or on request from HIFL.

Total amount of remuneration paid by HIFL to all staff and paid by the investment advisers to their identified staff * during the 12 months period ending 31 March 2020 is as follows:

Fixed remuneration USD 6,635,972 Variable remuneration USD 3,015,517 Number of beneficiaries 54

of which, the disclosure of the fixed and variable remuneration of senior management within HIFL and of identified staff * of the investment advisers is:

Fixed remuneration USD 5,446,560 Variable remuneration USD 2,863,513 Number of beneficiaries 38

* identified staff are defined as members of staff whose actions have a material impact on the risk profile of the Company

Directors’ Report (continued)

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Remuneration Policy (continued)

The annual review of the remuneration policy, including a review of the existing remuneration structure as well as implementation of the regulatory requirements and compliance with them, was completed during the year and no irregularities were identified. Furthermore, there were no material changes made to the remuneration policy in the past financial year.

Withdrawal of the UK from the EU

Following the UK Government’s notification to the European Union (EU) of its intention to leave the Union (i.e. “Brexit”), on 23 January 2020, the UK Government enacted the European Union (Withdrawal Agreement) Act 2020 (WAA). The WAA implemented the withdrawal agreement into UK law. The EU also ratified the withdrawal agreement in accordance with its procedures, with the European Parliament consenting to the Withdrawal Agreement on 29 January 2020.

As part of the Withdrawal Agreement, the UK and the EU agreed a Transition Period in order to provide continuity and certainty. During this time, the UK will generally continue to apply EU law as it does now. UK domiciled UCITS will continue to be referred to as UCITS and enjoy the rights conferred by the UCITS Directive during the Transition Period. EU UCITS will continue to use their cross-border passporting rights to passport into the UK.

The Transition Period will run from 12:00 midnight CET on 31 January 2020 until 12:00 midnight CET on 31 December 2020.

Investors should note that during the Transition Period references to the EU in this document shall be taken to include the UK.

Once the Transition period expires, all cross-border passporting rights to the UK for EU UCITS funds will cease; however, the UK’s commitment to a Temporary Permission Regime will mitigate the cliff-edge risks associated with a no-deal end of the Transition Period. The UK Government has also committed to bringing forward domestic legislation to streamline the process to allow overseas (including EU) investment funds to be sold in the UK post-Brexit.

Notwithstanding the above, the UK’s future economic and political relationship with the EU (and with other non-EU countries by agreement) continues to remain uncertain. This uncertainty is likely to generate further global currency and asset price volatility. This may negatively impact the returns of a Fund and its investments resulting in greater costs if a Fund decides to employ currency hedging policies. Ongoing uncertainty could adversely impact the general economic outlook and as such, this may impact negatively on the ability of a Fund and its investments to execute their strategies effectively, and may also result in increased costs to the Company.

It is possible that there will be more divergence between UK and EU regulations post-Brexit, limiting what cross-border activities can take place. However it is unlikely to affect a Fund’s ability to receive portfolio management services. At the date of this report, the Fund continues to be recognised by the FCA and can be marketed to UK investors. The nature and extent of the impact of any Brexit related changes are uncertain, but may be significant.

Impact of the Coronavirus (COVID-19)

The recent outbreak of the coronavirus disease 2019 (abbreviated as “COVID-19”) continues to impact global markets in several ways, including: (i) slowing down or stopping international, national, and local travel; (ii) impeding regular business operations across many different businesses, including manufacturers and service providers; and (iii) adding uncertainty to global markets with regard to how long and how serious COVID-19 may prove over time. All of these factors and more regarding COVID-19’s impact on global markets could materially adversely affect the Fund’s performance, including to the extent that the Fund makes investments in certain businesses or industries suffering downturns or impediments caused or exacerbated by COVID-19.

The Board continues to monitor the situation and receives regular updates from the Management Company. As at 8 July 2020, to our knowledge, the impact of COVID-19 has not affected the Investment Manager’s ability to execute the investment strategy of the fund, nor has there been any significant redemption activity or interruption to key service providers engaged by the Company.

Directors’ Report (continued)

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Corporate Governance Statement

The Board of Directors confirms its adoption of the ALFI (Association of the Luxembourg Fund Industry) Code of Conduct for Luxembourg Investment Funds (the “Code”) and confirms its adherence to the principles of the Code at all times during the period.

Annual General Meeting

The next Annual General Meeting of the Company will be held on 31 July 2020.

Investment Advisers’ Report

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Market overview: 1 April 2019 to 31 March 2020

Global equities

Global equities fell over the year to 31 March 2020. After having achieved positive returns through 2019, global equities peaked in early 2020 before falling dramatically in the final weeks of the period. For much of 2019 and early 2020, stocks followed the pattern set over the past several years – gradually rising and setting new highs, in aggregate. Markets were buoyed by the prevailing easy monetary conditions and the rising optimism regarding a settlement between the US and China on trade, eventually embodied in the ‘phase one’ agreement, signed in January. However, the end of January witnessed a sea change and equities sold off, as the coronavirus emerged in China and gradually spread throughout the world. February and March witnessed a marked sell-off in equities worldwide as the threat of the virus – from both an economic and health perspective – became more apparent and most countries moved into a lockdown period, with most business activity grinding to a halt. Markets recovered somewhat in the final week of the period as measures were implemented by governments to support their respective economies.

Prior to the advent of covid-19, worries about slowing economic trends had been mitigated by the accommodative monetary policy prevailing across the globe. The US Federal Reserve (Fed) cut interest rates further to boost the economy and appease market fears over increasingly sluggish global growth rates. The European Central Bank (ECB) reinstated stimulus measures to help the eurozone’s economy and confirmed that rates would stay low for the foreseeable future, while other major central banks also adopted easy monetary policies.

The US economy continued to be relatively resilient compared to other economies, driven by persistently robust employment that underpinned consumption. However, China, Japan, Europe and the UK experienced a greater downturn in activity. China’s 2019 GDP growth rate settled at 6.1% – the slowest rate in almost 30 years. Germany grew by a disappointing 0.6% in 2019, almost falling into recession as its manufacturing base suffered badly from the effects of slowing global activity and the trade dispute between the US and China. The UK was impacted by the uncertainties surrounding Brexit. The outlook for the global economy was revised downwards at the end of the period as economists began to quantify the negative impact of covid-19 on global growth.

US equities

While the US market did relatively better than most other global equity markets, it was not immune from the sell-off late in the period that ensured the market was lower in absolute terms. For much of the period, US equities moved higher, breaching new all-time highs, driven by decent economic performance, positive earnings growth and the likelihood of a trade deal with China, which materialised with the signing of the ‘phase one’ deal in January. However, the market experienced a dramatic decline from the end of February and into March, due to the covid-19 pandemic. Although the US market rebounded somewhat from late March, as the US government and Fed introduced emergency measures, it could not recover all the decline.

The Fed cut interest rates three times in 2019 to a range of 1.50–1.75% as Chairman Jerome Powell acknowledged the rising risks in the US and global economies from slowing growth and trade issues. However, by the end of the period, and faced with the growing turmoil caused by covid-19, the Fed slashed rates to just 0–0.25%.

In economic news, GDP growth slowed but remained relatively resilient. Fourth quarter of 2019 annualised growth was 2.1%, the same level as the third quarter, albeit down from first-quarter growth of 3.1%. Employment data was more robust, with the US unemployment rate falling to 3.5% in December, the joint-lowest figure for 50 years. However, weekly jobless claims surged and reached a new high of 6.9 million in the final week in March as the huge negative impact of the coronavirus became clearer.

US corporate earnings proved to be relatively resilient during much of the period, with the majority of companies beating consensus expectations. However, profit growth slowed, as companies grappled with the effects of a softer global economy and the US-China trade war. The impact of the coronavirus has yet to be fully quantified but will almost certainly see profits fall.

Investment Advisers’ Report (continued)

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Europe ex-UK equities

European equities followed a similar trend to other global markets, rising gently through much of the period before collapsing in late February and early March. Italy and Spain were at the heart of the covid-19 crisis, suffering the largest number of cases in the region. Both respective government effectively closed their borders and placed their populations in lockdown, with only essential travel permitted. Italian bond and equity markets fell substantially as investors feared for the financial viability of the country – already saddled with one of the largest levels of debt within the eurozone.

European markets were supported in late 2019 and early 2020 by the supportive monetary policy reintroduced by the ECB – including renewed bond purchases and a cut in the bank deposit to -0.5% – and the improved trade relations between the US and China. Christine Lagarde, at her first meeting as the ECB’s president, made it clear that the bank’s low rates would remain in place. Furthermore, a substantial emergency package to support the eurozone economy was expected to be announced in early April.

Economic growth remained sluggish through the period: fourth-quarter GDP grew 1.0% on an annualised basis, the weakest growth rate for over six years, and down from the previous quarter’s 1.3% growth. Meanwhile, Italy and Germany narrowly escaped a technical recession. The eurozone’s manufacturing base, particularly in Germany, continued to hollow out, with the manufacturing purchasing managers’ index receding to an over seven-year low in March. Moreover, industrial production fell over 3.6% in December, the second weakest figure for 10 years.

Negotiations with the UK government regarding the UK’s departure from the EU was another distraction for markets. The UK officially left the EU at the end of January, with an agreed transition period until the end of 2020. Uncertainty surrounding the nature of a future trade deal with the UK was an unsettling factor.

UK equities

UK equities fell over the period, with the FTSE All Share and FTSE 100 both down substantially. The market had been trending higher in the final months of 2019, as the risks of an imminent no-deal Brexit subsided. Brexit was a considerable source of angst for investors, dominating the headlines. Seemingly against the odds, new Prime Minister Boris Johnson secured a new draft deal with the European Union and then won a resounding victory in the general election, delivering a large majority for the Conservative Party. This removed some of the concerns about the Brexit process and timeline, boosting investor sentiment. However, the onset of coronavirus called time on the upward move in UK equities, and they sold off dramatically from late February and into March, before recovering a little in the final weeks of the period.

The UK government introduced measures to support the economy, including a scheme to pay the salaries of ‘furloughed’ employees (80% of income, up to £2500 per month) during the pandemic and until the lockdown was finished. Along with additional fiscal stimulus measures, this led to equities bouncing in late March. Moreover, the Bank of England (BoE) cut interest rates from 0.75% to 0.1%, in two back-to-back cuts.

UK economic growth remained sluggish, undermined by the continuing uncertainty surrounding Brexit for much of the period and by weak economic trends overseas. While the economy achieved a decent level of 0.5% growth in the third quarter, it stalled in the final quarter of 2019, delivering no growth. On the positive side, unemployment remained at generational lows of 3.8–3.9% through 2019, although expectations rose of a huge increase in the rate following the outbreak of covid-19. Wage growth also remained positive in real terms, albeit the nominal growth rate subsided to 2.9% in the final quarter of 2019, down from 3.7% in the third quarter. UK inflation also showed signs of picking up towards the end of the period, growing at an annualised rate of 1.8% in January before dipping slightly to 1.7% in February.


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Japan equities

Japanese equities fell over the period, with all the damage occurring in the final months of the period when the market, in line with other global markets, sold off due to covid-19. Prior to that, Japanese equities had risen steadily, taking their cue from the positive sentiment surrounding accommodative monetary policy overseas and steady policy at home. However, Japanese stocks were intermittently affected by the global trade dispute and relatively sluggish growth at home.

Domestic economic indicators were generally bleak. GDP fell 1.8% over the final quarter of 2019 – the steepest decline for over five years – largely due to the impact of the consumption tax increase implemented at the beginning of October. This was raised from 8% to 10%, in an effort to improve the country’s strained fiscal position; the measure had previously been postponed twice, given concerns about its potential impact on an already fragile economy. The much-followed Tankan survey – a quarterly indicator of business sentiment – deteriorated over the period.

Worries mounted about a Chinese slowdown, with several Japanese companies – particularly exporters of consumer electronics and automobiles – reducing their profit forecasts. Moreover, the Bank of Japan’s (BoJ) ultra-loose monetary policy continued to weigh on the profits of the banking sector, given its effect on net interest margins. The diplomatic dispute with South Korea, deriving from grievances over Japan’s treatment of Korea during WWII, also unsettled investors and caused exports to South Korea to fall.

The BoJ maintained its loose monetary policy, targeting -0.1% short-term interest rates, while stating that the long-term inflation target of 2.0% was unlikely to be met in the near future. The inflation rate was subdued for most of the period, but December’s consumer price index rose 0.8% year on year, before falling back to 0.4% year on year in February.

Asia ex-Japan equities

Asian Pacific markets fell sharply, owing to the outbreak of covid-19 and growing expectations that the virus would have a material impact on both society and economies. Asian equities experienced a similar pattern to other world markets, rising into 2019 year-end – and peaking in mid-January – before selling off markedly in the final week of February and in March. Initially, a de-escalation in the US-China trade war, culminating in the signing of the ‘phase one’ deal with the US, and loose monetary conditions supported Asian markets.

In China, the central bank continued to ease reserve requirements for banks and introduce fresh stimulus measures, such as cutting short- and medium-term loan rates. China’s GDP growth rate continued to slow, falling to a 6.0% annual growth rate for the third and fourth quarters of 2019 – this marked the lowest growth rate since 1992. For 2019, the growth rate was 6.1%, the weakest annual growth rate for nearly 30 years. Hong Kong’s economy slumped into a technical recession for the first time since the global financial crisis as the pro-democracy protests took their toll on business and leisure activity in the region. Tensions continued despite Hong Kong’s leader Carrie Lam withdrawing her contentious extradition bill, while the US provoked the ire of China by passing two pro-democracy bills backing the protesters.

Other central banks in the region, such as the Reserve Bank of India, the Bank of Korea and the Reserve Bank of Australia, cut interest rates in order to ease the pressure on their respective economies. India’s growth rate slowed over the period, growing by just 1.1% on a quarterly basis in the fourth quarter of 2019, the lowest growth rate since 2011. South Korea’s economy remained relatively resilient and produced quarterly growth of 1.3% in the final quarter of 2019, the best figure since 2017.

Emerging market equities

Emerging markets declined over the period. Stocks rose into the beginning of 2020 before collapsing in late February and March as the coronavirus spread globally. However, a marginal recovery was witnessed in the final week of the period. Latin American markets were one the weakest emerging markets (in aggregate), with Argentina, Chile and Brazil all suffering from a mix of worsening economic activity, currency weakness and geopolitical issues.


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Emerging market equities (continued)

The escalating US-China trade war, a stronger US dollar and ongoing concerns about global economic growth – which led to weakening commodity prices – weighed on emerging markets throughout the summer of 2019. Thereafter, they recovered until year-end, buoyed by easier global monetary policy and growing optimism over a settlement of the trade dispute between the US and China.

In Latin America, the Argentinean market collapsed and the peso slumped during August – triggering the imposition of capital controls and the rescheduling of the country’s US dollar debt – as fears of a populist victory in October’s presidential elections, which came true, increased. In contrast, Brazilian equities initially fared well as the pro-growth policies of President Jair Bolsonaro continued to be rolled out. However, stocks sold off markedly in 2020 as the pandemic hit. Mexican equities suffered when President Trump threatened to increase tariffs on Mexican imports (in response to the immigration crisis at the US border) but subsequently stabilised when Trump backtracked. Falling commodity prices, especially the oil-price collapse in 2020, were a further negative factor undermining emerging markets at large.

The Chinese market was one of the best-performing major emerging market over the period. This partly reflected better news over the trade dispute with the US and the signing of the ‘phase one’ agreement, as well as supportive measures from the People’s Bank of China (PBoC). Additionally, the Chinese economy, although slowing, remained relatively robust compared with other countries in the investment category.

UK bonds

This was a unique period for the UK fixed income market. Yields on 10-year government bonds fell to all-time low of just above 0.1% towards the end of the period as investors sought out safe-haven assets, in light of the developing global pandemic. UK bonds produced a positive return during a very volatile period. Bond yields briefly rose back up again in mid-March before settling at around 0.3% at the end of the period.

Early in the period, gilt yields had initially fallen, as concerns about UK growth and Brexit uncertainty affected investor sentiment. However, yields rose in the autumn months and into year-end, as optimism grew around improving US-China trade relations and as the risk of a ‘no deal’ Brexit appeared to diminish.

However, they then fell dramatically, along with other major global bond market yields, as the extent of covid-19, and its social and economic consequences, became clearer. The BoE reacted by implementing an emergency rate cut of 50 basis points, cutting the prime rate from 0.75% to 0.25%, followed quickly by a further cut to 0.1%. The new Conservative government’s first budget saw a raft of measures implemented to try and support the economy during this time of crisis. A further substantial emergency package of support measures was later launched.

Corporate and high-yield bonds underperformed government bonds. They enjoyed strong returns in 2019 but suffered in the virus-driven equity market sell-off, as yield spreads widened with investors becoming more risk averse and as concerns around credit risk abounded.

Global bonds

This was a dramatic period for global bonds, with many government bond yields touching new all-time lows. The US Treasury yield fell below 0.4% in early March as investors sought out safe-haven assets as the global pandemic expanded across the world. Monetary policy became increasingly supportive of global bond markets through the period. Having tried to tighten and abandon quantitative easing in 2018, the Fed cut interest rates three times in 2019 before slashing them to almost zero in March 2020. The ECB’s reversal of quantitative tightening and introduction of a substantial support package also gave bond markets a boost. Other major central banks, such as the BoJ, the BoE and the PBoC, also introduced measures to support economies and loosen monetary conditions.


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Global bonds (continued)

This change in stance caused bond yields in developed markets to drift lower in unison. Swiss and German 10-year bond yields remained in negative territory, touching new all-time lows. In fact, the global universe of negative-yielding bonds – led by instruments in Europe and Japan – touched a record level in September 2019 of around $17 trillion, corresponding to about one fifth of the debt issued by governments and companies. Yields rose in the final weeks of the period as investors reacted positively to the economic support measures introduced by many governments across the world.

With yields near historically low levels, and the prospect of low to zero interest rates predominating across the world, global bond issuance picked up throughout much of the period, although it ground to a halt in the final months as worries over covid-19 gripped the world.

PricewaterhouseCoopers, Société coopérative, 2 rue Gerhard Mercator, B.P. 1443, L-1014 LuxembourgT : +352 494848 1, F : +352 494848 2900, www.pwc.lu Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n°10028256)R.C.S. Luxembourg B 65 477 - TVA LU25482518

Audit report

To the Shareholders ofHSBC Global Investment Funds

Our opinion

In our opinion, the accompanying financial statements give a true and fair view of the financial position of HSBC Global Investment Funds (the “Fund”) and of each of its sub-funds as at 31 March 2020, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements.

What we have audited

The Fund’s financial statements comprise:

• the statement of net assets as at 31 March 2020;• the portfolio of investments and other net assets as at 31 March 2020;• the statement of operations and changes in net assets for the year then ended; and• the notes to the financial statements, which include a summary of significant accounting policies.

Basis for opinion

We conducted our audit in accordance with the Law of 23 July 2016 on the audit profession (Law of 23 July 2016) and with International Standards on Auditing (ISAs) as adopted for Luxembourg by the “Commission de Surveillance du Secteur Financier” (CSSF). Our responsibilities under the Law of 23 July 2016 and ISAs as adopted for Luxembourg by the CSSF are further described in the “Responsibilities of the “Réviseur d’entreprises agréé” for the audit of the financial statements” section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

We are independent of the Fund in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the financial statements. We have fulfilled our other ethical responsibilities under those ethical requirements.

Other information

The Board of Directors of the Fund is responsible for the other information. The other information comprises the information stated in the annual report but does not include the financial statements and our audit report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

16

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors of the Fund for the financial statements

The Board of Directors of the Fund is responsible for the preparation and fair presentation of the financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements, and for such internal control as the Board of Directors of the Fund determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors of the Fund is responsible for assessing the Fund’s and each of its sub-funds' ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors of the Fund either intends to liquidate the Fund or close any of its sub-funds or to cease operations, or has no realistic alternative but to do so.

Responsibilities of the “Réviseur d’entreprises agréé” for the audit of the financial statements

The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control;

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors of the Fund;

17

• conclude on the appropriateness of the Board of Directors of the Fund’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s or any of its sub-funds' ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause the Fund or any of its sub-funds (except for HSBC Global Investment Funds - UK Equity and HSBC Global Investment Funds - Global Corporate Fixed Term Bond 2020 where a decision to liquidate exists, as disclosed in Note 20) to cease to continue as a going concern;

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

PricewaterhouseCoopers, Société coopérativeRepresented by

Christelle Crépin

Luxembourg, 13 July 2020

Statement of Net Assetsas at 31 March 2020

International and Regional Equity

Sub-funds

NotesCOMBINED

USD

Asia ex JapanEquity

USD

Asia ex JapanEquity Smaller

Companies USD

Asia Pacific exJapan Equity High

Dividend USD

ASSETS

Investments in Securities at Cost 32,048,144,662 428,682,958 501,570,712 237,160,874

Unrealised Appreciation/(Depreciation) (2,938,534,016) (45,167,539) (118,796,773) (22,962,123)

Investments in Securities at Market Value 29,109,610,646 383,515,419 382,773,939 214,198,751

Unrealised Gain on Forward Foreign Exchange Contracts 9 565,335,981 100,172 - 218

Unrealised Gain on Futures 10 74,734,666 - - -

Unrealised Gain on Swaps 11 111,147,418 - - -

Cash at Bank 1,607,397,998 8,117,758 7,950,287 2,421,201

Dividend and Interest Receivable, Net 292,362,523 1,149,801 2,034,709 1,557,811

Receivable from Brokers 823,702,103 10,876,110 17,384,933 17,300,371

Receivable from Shareholders 126,108,398 1,128,203 127,419 596,341

Other Assets 6,746,399 - 515 -

Total Assets 32,717,146,132 404,887,463 410,271,802 236,074,693

LIABILITIES

Unrealised Loss on Forward Foreign Exchange Contracts 9 (448,079,213) (1,160) - (613)

Unrealised Loss on Futures 10 (102,270,700) - - -

Unrealised Loss on Swaps 11 (134,682,311) - - -

Bank Overdraft (361,610,821) (90,092) (7,872) (778,816)

Payable to Brokers (736,165,211) (8,055,327) (9,188,375) (15,027,228)

Payable to Shareholders (394,077,739) (322,941) (1,215,621) (742,683)

Dividend Payable (113,976,940) - - (387,215)

Other Liabilities (24,299,477) (646,558) (793,002) (629,114)

Total Liabilities (2,315,162,412) (9,116,078) (11,204,870) (17,565,669)

Total Net Assets 30,401,983,720 395,771,385 399,066,932 218,509,024

TWO YEAR ASSET SUMMARY

31 March 2019 34,736,470,384 545,684,480 877,174,884 323,548,527

31 March 2018 41,374,996,820 546,810,447 1,546,654,361 374,616,976

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


BRIC EquityUSD

BRIC MarketsEquity

USD

China ConsumerOpportunities

USD

Economic ScaleGEM Equity

USD

Economic ScaleGlobal Equity

USDEmerging Wealth

USD

238,440,065 108,150,755 33,823,323 319,115,413 143,118,069 13,076,819

(38,544,037) (16,197,742) (4,528,837) (86,640,633) (24,663,211) (679,811)

199,896,028 91,953,013 29,294,486 232,474,780 118,454,858 12,397,008

- - - - - -

- - - 83,158 155,690 -

- - - - - -

7,475,304 3,523,505 29,901 2,985,656 3,014,946 219,405

290,972 136,281 59,493 825,041 464,473 23,895

10,068,029 7,649,583 25,656 108,911 15,162 20,008

292,087 3,045,885 573,950 640,542 146,549 971

- - 52,798 4,504 146,245 7,522

218,022,420 106,308,267 30,036,284 237,122,592 122,397,923 12,668,809

- - - - - -

- - - - (30,625) -

- - - - - -

- - - - (10,341) (2)

(5,647,994) (6,532,405) (25,932) (102,155) (17,449) (20,104)

(807,796) (3,116,937) (49,744) (2,071,728) (22,614) (45,221)

- - - - - -

(306,685) (160,775) (52,968) (171,645) (115,805) (22,843)

(6,762,475) (9,810,117) (128,644) (2,345,528) (196,834) (88,170)

211,259,945 96,498,150 29,907,640 234,777,064 122,201,089 12,580,639

329,564,532 161,390,675 41,689,937 555,904,401 151,115,299 14,973,571

388,407,588 181,327,582 58,143,078 583,216,929 176,444,531 14,735,663

The accompanying notes form an integral part of these financial statements. 19


NotesEuroland Equity

EUR

Euroland EquitySmaller

CompaniesEUR

Euroland GrowthEUR

European EquityEUR

ASSETS

Investments in Securities at Cost 445,546,174 289,827,706 177,718,252 62,791,024

Unrealised Appreciation/(Depreciation) (110,767,018) (63,314,832) (4,649,889) (17,091,157)

Investments in Securities at Market Value 334,779,156 226,512,874 173,068,363 45,699,867

Unrealised Gain on Forward Foreign Exchange Contracts 9 196 8 - -

Unrealised Gain on Futures 10 114,730 - 44,885 -

Unrealised Gain on Swaps 11 - - - -

Cash at Bank 5,450,032 5,734,788 809,009 1,133,845

Dividend and Interest Receivable, Net 207,923 237,560 - 158,396

Receivable from Brokers 1,180,459 1,951,522 1,042,335 860,698

Receivable from Shareholders 3,825,763 1,068,195 3,738,462 122,406

Other Assets 2,940,236 726,909 441,266 243,138

Total Assets 348,498,495 236,231,856 179,144,320 48,218,350

LIABILITIES

Unrealised Loss on Forward Foreign Exchange Contracts 9 (27,374) (1,095) - -

Unrealised Loss on Futures 10 - - - -

Unrealised Loss on Swaps 11 - - - -

Bank Overdraft (3,116) - - (782,669)

Payable to Brokers (1,341,773) (2,964,380) (2,861,573) (871,100)

Payable to Shareholders (495,525) (3,813,655) (138) (14,919)

Dividend Payable - - - -

Other Liabilities (272,233) (218,801) (52,989) (53,705)

Total Liabilities (2,140,021) (6,997,931) (2,914,700) (1,722,393)

Total Net Assets 346,358,474 229,233,925 176,229,620 46,495,957


31 March 2019 576,983,269 335,589,426 187,067,443 66,984,286

31 March 2018 838,256,710 520,685,613 180,742,373 82,949,041



Frontier MarketsUSD

GEM EquityVolatility Focused

USD

Global EmergingMarkets Equity

USD

Global Equity Climate Change

USD

Global Equity Dividend

USD

Global EquityVolatility Focused

USD

195,042,475 8,007,842 182,516,747 27,246,491 38,155,636 138,685,201

(52,190,513) (1,606,766) (8,511,148) (1,720,362) (4,367,408) (14,418,560)

142,851,962 6,401,076 174,005,599 25,526,129 33,788,228 124,266,641

- - - - - 424,872

- 5,230 500,978 - - 142,380

- - - - - -

13,184,486 411,269 15,208,887 134,659 600,601 3,439,255

1,082,915 40,780 643,908 54,852 66,331 332,583

9,302,792 - 7,652,669 8,445 67,861 944,507

50,864 - 617,774 26,465 60,468 1,605,481

- 120 2,927 6,436 67,883 176,685

166,473,019 6,858,475 198,632,742 25,756,986 34,651,372 131,332,404

- - - - - (15,543)

- - - - - (37,763)

- - - - - -

- - - - - (65,950)

(6,923,034) - (11,242,233) (8,454) (68,035) (946,337)

(3,080,441) - (131,477) (15,167) (25,245) (633,425)

- - - (45,504) (94,958) (286,307)

(230,540) (8,448) (375,597) (32,184) (35,511) (255,866)

(10,234,015) (8,448) (11,749,307) (101,309) (223,749) (2,241,191)

156,239,004 6,850,027 186,883,435 25,655,677 34,427,623 129,091,213

272,023,112 11,359,645 195,323,365 14,941,703 31,758,470 178,615,431

465,884,258 13,371,688 201,433,625 17,406,175 26,361,209 200,416,932



Market SpecificEquity Sub-funds

Notes

Global Lower Carbon Equity

USD

Global Real Estate Equity

USDBrazil Equity

USD

China A-shares Equity (launched as

at 16 September 2019)

USD

ASSETS

Investments in Securities at Cost 55,586,635 1,094,648,225 252,926,852 30,782,320



Unrealised Gain on Forward Foreign Exchange Contracts 9 - 1,805 - -

Unrealised Gain on Futures 10 84,103 - - -


Cash at Bank 1,562,060 17,669,316 3,279,727 1,831,683

Dividend and Interest Receivable, Net 169,361 5,095,854 1,480,115 -

Receivable from Brokers 182,139 - 1,828,137 -

Receivable from Shareholders 579,661 4,945,806 1,297,020 2,634,989

Other Assets 26,692 1,148,278 168,151 -

Total Assets 50,923,236 893,969,986 182,236,406 31,604,960

LIABILITIES

Unrealised Loss on Forward Foreign Exchange Contracts 9 - (3) - -



Bank Overdraft (155,340) - - -

Payable to Brokers (181,851) - (2,584,110) -

Payable to Shareholders (967,875) (1,594,323) (302,847) (4,277,094)

Dividend Payable (94,312) (7,968,158) - -

Other Liabilities (57,618) (1,314,608) (435,441) (23,907)


Total Net Assets 49,466,240 883,092,894 178,914,008 27,303,959


31 March 2019 37,675,891 1,180,354,568 356,933,820 -

31 March 2018 31,930,591 1,117,775,623 413,117,730 -



Chinese EquityUSD

Economic Scale Japan Equity

JPY

Economic ScaleUS Equity

USD

Hong KongEquity

USDIndian Equity

USDMexico Equity

USD

853,484,654 15,058,020,144 855,083,274 98,144,174 893,241,279 40,426,760

98,035,046 (2,266,462,993) (120,701,774) 4,275,061 (143,209,274) (16,826,915)

951,519,700 12,791,557,151 734,381,500 102,419,235 750,032,005 23,599,845

- 44,411 365,681 - - -

- - - - - -

- - - - - -

31,092,069 547,820,281 19,906,027 1,170,567 21,587,359 1,181,318

113,933 194,151,474 1,249,445 57,907 675,168 -

43,911,761 41,193,811 891,603 2,092,187 15,712,545 58,753

2,121,028 23,751,949 8,694,339 366,869 2,058,894 6,701

- 96 - - - -

1,028,758,491 13,598,519,173 765,488,595 106,106,765 790,065,971 24,846,617

- (2,570,338) (7,174) - - -

- (2,751,384) (517,740) - - -

- - - - - -

- - - - - -

(38,776,974) (41,178,516) (626,320) (2,043,714) (10,619,482) (97,407)

(17,818,769) (422,576,039) (8,862,702) (81,553) (3,083,141) (70,611)

- - - - - -

(1,536,233) (36,875,900) (639,184) (106,011) (1,358,477) (29,852)

(58,131,976) (505,952,177) (10,653,120) (2,231,278) (15,061,100) (197,870)

970,626,515 13,092,566,996 754,835,475 103,875,487 775,004,871 24,648,747

1,284,947,554 16,825,792,076 954,199,453 134,358,287 1,451,539,761 51,476,099

1,633,081,397 17,827,617,092 880,547,833 178,149,887 1,684,786,145 92,198,456



NotesRussia Equity

USDThai Equity

USDTurkey Equity

EURUK Equity

GBP

ASSETS

Investments in Securities at Cost 151,814,081 40,908,291 45,544,650 18,932,836



Unrealised Gain on Forward Foreign Exchange Contracts 9 - - - -

Unrealised Gain on Futures 10 - - - -


Cash at Bank - 778,112 412,391 65,883

Dividend and Interest Receivable, Net 83,134 247,319 4,632 133,234

Receivable from Brokers 2,739,991 14,166 223,437 907,501

Receivable from Shareholders 4,012,229 77,353 211,786 195,257

Other Assets - - 1,856 1,081

Total Assets 124,991,625 30,726,541 36,150,497 15,983,233

LIABILITIES

Unrealised Loss on Forward Foreign Exchange Contracts 9 - - - -



Bank Overdraft (22,874) - - -

Payable to Brokers (1,527,924) (14,157) - (94)

Payable to Shareholders (2,698,216) (167,202) (472,077) (32,374)

Dividend Payable - - - -


Total Liabilities (4,462,609) (259,488) (541,410) (55,218)

Total Net Assets 120,529,016 30,467,053 35,609,087 15,928,015


31 March 2019 182,742,997 60,338,452 53,981,621 19,583,303

31 March 2018 269,451,150 102,051,243 57,172,638 23,542,323



Bond Sub-funds

Asia Bond USD

Asian CurrenciesBond USD

Asia High Yield Bond

(launched as at 27 November 2019)

USDBrazil Bond

USDEuro Bond

EUREuro Credit Bond

EUR

134,131,272 39,195,515 157,181,061 38,383,108 133,556,828 399,786,196

(3,048,566) 199,197 (17,592,985) (2,224,672) 12,776,395 (16,761,396)

131,082,706 39,394,712 139,588,076 36,158,436 146,333,223 383,024,800

1,994,035 550,997 4,480,535 172,096 369,767 167,167

- - - - 19,320 -

- - - 43,463 - -

1,281,871 231,916 5,416,725 1,316,894 4,703,248 25,600,553

1,526,943 301,219 2,410,056 451,699 1,280,137 4,027,839

219,267 131,955 1,358,728 313,669 101,850 11,139,777

10,726 3,191 581,007 11,392 428,916 8,308,254

- - - - - -

136,115,548 40,613,990 153,835,127 38,467,649 153,236,461 432,268,390

(535,766) (458,045) (669,972) (602,893) (3,963) (146)

- - - - (31,845) (396,500)

- - - - - -

- (24) - - (19,461) (2,820,596)

(408,763) (114,464) (1,464,184) (160,459) (278,548) (26,056,162)

(6,796) (3,451) (978,171) (399,763) (567,505) (705,863)

(182,683) - (1,161,426) - - -

(53,138) (26,046) (36,687) (40,578) (48,245) (192,467)

(1,187,146) (602,030) (4,310,440) (1,203,693) (949,567) (30,171,734)

134,928,402 40,011,960 149,524,687 37,263,956 152,286,894 402,096,656

93,644,651 38,415,445 38,415,445 92,330,332 142,867,335 538,246,076

85,053,246 42,545,835 42,545,835 163,808,665 140,262,717 888,404,875



Notes

Euro Credit BondTotal Return

EUR

Euro High YieldBondEUR

GEM Debt TotalReturn

USD

Global Investment Grade Securitised

Credit Bond*USD

ASSETS

Investments in Securities at Cost 204,002,891 1,640,596,079 619,574,411 992,884,539


Investments in Securities at Market Value 192,828,567 1,540,875,611 552,514,224 913,290,399

Unrealised Gain on Forward Foreign Exchange Contracts 9 - 476,558 47,640,954 38,007,879

Unrealised Gain on Futures 10 - - - -

Unrealised Gain on Swaps 11 - 2,175,963 17,587,286 -

Cash at Bank 18,195,774 128,792,968 75,079,038 1,687,032

Dividend and Interest Receivable, Net 2,124,849 27,502,813 7,736,739 2,447,170

Receivable from Brokers 15,501,898 31,040,471 11,803,748 17,593,463

Receivable from Shareholders - 4,039,659 9,230,801 895,669

Other Assets - - - 1,648

Total Assets 228,651,088 1,734,904,043 721,592,790 973,923,260

LIABILITIES

Unrealised Loss on Forward Foreign Exchange Contracts 9 - (1,211,772) (59,799,870) (662,212)

Unrealised Loss on Futures 10 (397,520) - (8,672,572) -

Unrealised Loss on Swaps 11 - - (16,119,882) -

Bank Overdraft (1,109,931) (1,984,892) (1,972,289) (14,655,758)

Payable to Brokers (18,645,694) (45,626,490) (30,928,682) (19,246,340)

Payable to Shareholders (62,815) (9,687,516) (9,235,939) (3,129,572)

Dividend Payable - (1,624) - (3,633,169)



Total Net Assets 208,391,406 1,675,445,445 594,434,578 932,447,372


31 March 2019 212,526,969 1,793,457,833 1,461,671,818 542,875,418

31 March 2018 353,111,025 1,539,174,678 2,756,266,678 365,881,927

* Until 23 August 2019, the sub-fund is named Global Asset-Backed Bond.



Global Securitised Credit Bond**

USD

Global High Yield Securitised Credit

Bond***USD

Global BondUSD

Global Bond Total Return

USD

Global CorporateBond USD

Global EmergingMarkets Bond

USD

90,057,931 145,067,457 55,119,144 27,049,848 2,195,042,088 2,452,563,634

(13,149,161) (26,971,320) 1,187,889 (1,567,454) (86,142,855) (434,343,462)

76,908,770 118,096,137 56,307,033 25,482,394 2,108,899,233 2,018,220,172

2,949,989 1,662,095 322,442 618,530 51,106,376 21,002,706

- - 71,580 371,845 1,206,996 6,427,282

- - - 684,320 1,848,960 13,779,447

990,454 390,997 7,203,653 680,933 50,144,111 87,441,335

392,126 909,451 238,664 223,374 20,453,251 31,053,728

7,150,470 1,946,709 1,360,348 428,334 74,309,532 93,369,724

- - 32,843 12,681 8,627,138 5,571,731

- - - - - -

88,391,809 123,005,389 65,536,563 28,502,411 2,316,595,597 2,276,866,125

(77,852) (183,470) (223,387) (28,153) (1,087,779) (313,280)

- - (274,702) (31,588) (2,946,589) (14,858,300)

- - - (39,436) (226,954) (41,871,479)

- - (6,073,878) (594,901) (38,196,584) (49,736,537)

(4,983,168) - (5,581,861) - (37,912,426) (35,441,495)

- - (1,449,549) - (10,078,973) (24,746,111)

(428,562) - (716) - (14,435,231) (19,577,330)

(41,390) (63,784) (22,150) (6,601) (584,938) (926,662)

(5,530,972) (247,254) (13,626,243) (700,679) (105,469,474) (187,471,194)

82,860,837 122,758,135 51,910,320 27,801,732 2,211,126,123 2,089,394,931

35,455,993 210,816,404 45,613,898 26,249,589 2,371,930,132 3,905,557,990

20,602,179 190,087,864 258,629,719 20,918,757 2,882,202,723 4,168,290,944

** Until 23 August 2019, the sub-fund is named Global Asset-Backed Crossover Bond.

*** Until 23 August 2019, the sub-fund is named Global Asset-Backed High Yield Bond.



Notes

Global EmergingMarkets Local

Currency Rates USD

Global EmergingMarkets Local Debt

USD

Global GovernmentBond USD

Global HighIncome Bond

USD

ASSETS

Investments in Securities at Cost 206,159,071 1,823,702,624 1,281,806,323 2,002,606,779

Unrealised Appreciation/(Depreciation) 687,789 3,567,090 67,183,000 (220,717,795)

Investments in Securities at Market Value 206,846,860 1,827,269,714 1,348,989,323 1,781,888,984

Unrealised Gain on Forward Foreign Exchange Contracts 9 25,023,487 122,171,067 35,390,280 17,313,085

Unrealised Gain on Futures 10 - - 759,984 5,913,736

Unrealised Gain on Swaps 11 1,561,310 8,940,911 - 10,845,549

Cash at Bank 14,185,003 111,994,305 2,418,111 81,187,276

Dividend and Interest Receivable, Net 3,771,776 19,808,272