HSBC Mutual Funds · HSBC Mutual Funds Simplified ... Securities and Exchange Commission and are sold in the United States only in reliance on exemptions from ... Introduction and

HSBC Mutual FundsSimplified Prospectus

June 20, 2017Offering Investor Series, Advisor Series, Premium Series, Manager Series and Institutional Series units of the following Funds:

Cash and Money Market Funds

HSBC Canadian Money Market FundHSBC U.S. Dollar Money Market Fund

Income Funds

HSBC Mortgage FundHSBC Canadian Bond FundHSBC Global Corporate Bond FundHSBC Emerging Markets Debt FundHSBC Monthly Income FundHSBC U.S. Dollar Monthly Income Fund

Domestic Equity Funds

HSBC Canadian Balanced FundHSBC Dividend FundHSBC Equity FundHSBC Small Cap Growth Fund

Foreign Equity Funds

HSBC Global Equity FundHSBC Global Equity Volatility Focused FundHSBC U.S. Equity FundHSBC European FundHSBC AsiaPacific FundHSBC Chinese Equity FundHSBC Indian Equity FundHSBC Emerging Markets FundHSBC BRIC Equity Fund

Offering Investor Series, Advisor Series, Manager Series and Institutional Series units of the following Funds:

HSBC World Selection® Diversified Funds

HSBC World Selection Diversified Conservative FundHSBC World Selection Diversified Moderate Conservative FundHSBC World Selection Diversified Balanced FundHSBC World Selection Diversified Growth FundHSBC World Selection Diversified Aggressive Growth Fund

No securities regulatory authority has expressed an opinion about the units described in this Simplified Prospectus, and it is an offence toclaim otherwise. The Funds and the units of the Funds offered under this Simplified Prospectus are not registered with the United StatesSecurities and Exchange Commission and are sold in the United States only in reliance on exemptions from registration.

® World Selection is a registered trademark of HSBC Bank Canada.

◆

Table of contents

Introduction and key terms . . . . . . . . . . . . . . . . . . . . . . . 2

General information about mutual funds and the

HSBC Mutual Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

What is a mutual fund and what are the risks of investingin a mutual fund? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Organization and management of the HSBCMutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Purchases, switches and redemptions . . . . . . . . . . . . . . . 9

Optional services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Impact of sales charges . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Dealer compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Dealer compensation from management fees . . . . . . . . . 19

Income tax considerations for investors . . . . . . . . . . . . . . 19

What are your legal rights? . . . . . . . . . . . . . . . . . . . . . . . . 20

Information regarding transactions with members of theHSBC Group or other related parties . . . . . . . . . . . . . . . . . 20

Specific information about each of the HSBC Mutual

Funds described in this document . . . . . . . . . . . . . . . . . 23

Fund-specific information:

Cash and money market funds

HSBC Canadian Money Market Fund. . . . . . . . . . . . . . . . . 26

HSBC U.S. Dollar Money Market Fund. . . . . . . . . . . . . . . . 28

Income funds

HSBC Mortgage Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

HSBC Canadian Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . 32

HSBC Global Corporate Bond Fund . . . . . . . . . . . . . . . . . . 35

HSBC Emerging Markets Debt Fund . . . . . . . . . . . . . . . . . 37

HSBC Monthly Income Fund . . . . . . . . . . . . . . . . . . . . . . . 40

HSBC U.S. Dollar Monthly Income Fund . . . . . . . . . . . . . . 43

Domestic equity funds

HSBC Canadian Balanced Fund . . . . . . . . . . . . . . . . . . . . . 46

HSBC Dividend Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

HSBC Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

HSBC Small Cap Growth Fund. . . . . . . . . . . . . . . . . . . . . . 54

Foreign equity funds

HSBC Global Equity Fund. . . . . . . . . . . . . . . . . . . . . . . . . . 56

HSBC Global Equity Volatility Focused Fund . . . . . . . . . . . 59

HSBC U.S. Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

HSBC European Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

HSBC AsiaPacific Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

HSBC Chinese Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . 67

HSBC Indian Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . 70

HSBC Emerging Markets Fund . . . . . . . . . . . . . . . . . . . . . 73

HSBC BRIC Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . 76

HSBCWorld Selection Diversified funds

HSBC World Selection Diversified Conservative Fund . . . . 79

HSBC World Selection Diversified ModerateConservative Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

HSBC World Selection Diversified Balanced Fund . . . . . . . 83

HSBC World Selection Diversified Growth Fund . . . . . . . . 85

HSBC World Selection Diversified AggressiveGrowth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

How to reach us . . . . . . . . . . . . . . . . . . . . . . . . . . back cover

1

THIS SIMPLIFIED PROSPECTUS contains selected important information to help you

make an informed investment decision and to help you understand your rights as an

investor. In this document we use the following key terms:

� you and your refer to you the investor� the Fund or Funds refers to one or more of the HSBC Mutual Funds offered under this Simpli-

fied Prospectus� we, us and our refer to HSBC Global Asset Management (Canada) Limited, the manager, trustee,

registrar and primary investment advisor of the Funds� the Principal Distributor refers to HSBC Investment Funds (Canada) Inc., our wholly owned sub-

sidiary that is principally responsible for marketing and distributing units of the Funds� dealer and dealers refer to the dealers authorized to sell units of the Funds, including the Prin-

cipal Distributor� HSBC World Selection® Diversified Funds refers to the HSBC World Selection Diversified Con-

servative Fund, HSBC World Selection Diversified Moderate Conservative Fund, HSBC WorldSelection Diversified Balanced Fund, HSBC World Selection Diversified Growth Fund and HSBCWorld Selection Diversified Aggressive Growth Fund

This document is divided into two parts. The first part,from page 2 to page 22, contains general informationapplicable to all of the HSBC Mutual Funds. The secondpart, from page 23 to page 88, contains specific infor-mation about each of the HSBC Mutual Funds offeredunder this Simplified Prospectus.You can find more information about each Fund in thefollowing documents:� the Annual Information Form� the most recently filed Fund Facts� the most recently filed annual financial statements� any interim financial report filed after the most recently

filed annual financial statements� the most recently filed annual Management Report

of Fund Performance� any interim Management Report of Fund Perfor-

mance filed after the most recently filed annual Man-agement Report of Fund Performance

These documents are incorporated by reference into thisSimplified Prospectus, which means that they legally formpart of this document just as if they were printed as partof this document. You can get a copy of these docu-ments at your request, and at no cost, by calling us toll-free at 1-888-390-3333 or by contacting your dealer.

Copies of this Simplified Prospectus, and the Funds’AnnualInformation Form, Fund Facts, Semi-Annual Report, AnnualReport and annual and interim Management Report ofFund Performance, are available on our website atwww.hsbc.ca/investment-resources.

These documents and other information about the Funds,such as information circulars and material contracts, areavailable at www.sedar.com.

Introduction and key terms

2

What is a mutual fund and what are therisks of investing in a mutual fund?

What is a mutual fund?A mutual fund is a pool of money that is professionally man-aged on behalf of a group of investors with similar investmentobjectives.The investors then share in any gains or losses gen-erated by the mutual fund. When you invest in a mutual fundyou do so by buying units of the mutual fund.The mutual fund’sinvestment advisor then uses the money invested to buy a vari-ety of securities and other investments depending on the invest-ment objectives of the mutual fund.These can include stocks,bonds, foreign currencies, derivatives, income trust units, short-term fixed income securities, exchange-traded funds or othermutual funds. When you buy units of a mutual fund you areindirectly buying these underlying investments, and the valueof your investment is determined by the performance of theseunderlying investments. Generally, you can at any time switchbetween mutual funds or sell your units back to the mutualfund in order to take your money out of a mutual fund. Whenyou sell your units back to the mutual fund, the value of yourinvestment may have increasedor decreased.

Each of the HSBC Mutual Funds (otherthan the HSBC World Selection Diversi-fied Funds) currently offers five series ofunits: Investor Series, Advisor Series, Pre-mium Series, Manager Series and Insti-tutional Series. Each of the HSBC WorldSelection Diversified Funds currently offersfour series of units: Investor Series, Advi-sor Series, Manager Series and Institu-tional Series. A description of these dif-ferent series is found in the section calledPurchases, switches and redemptions.

What are the risks of investing inmutual funds?As with any investment, there are risks associated with invest-ing in mutual funds. The value of a mutual fund’s underlyinginvestments changes from day to day, which in turn affects thevalue of the mutual fund. Some of the factors that can affectthe value of a mutual fund’s underlying investments include:� changes in interest rates;� current economic conditions;� events in financial markets;� fluctuating currency values; and� news about individual companies that the mutual fund has

invested in.The value of a mutual fund’s units can go up or down over timeas a result of the changing value of the underlying investmentsand the value of your investment in a mutual fund may be moreor less when you sell it than when you purchased it.Unlike Guaranteed Investment Certificates, also known as GICs,or money you have deposited in a bank account, mutual fund

units are not covered by the Canada Deposit Insurance Corpo-ration or any other government insurer or financial institution.None of your investment in a Fund is guaranteed.

Under exceptional circumstances, we may suspend your rightto sell your units of a Fund. See the section called Purchases,switches and redemptions for more details.

Below we explain the specific risks that can apply to the Funds.Not all risks apply to each Fund.The risks and the extent of therisks that an individual Fund is exposed to will depend on thatFund’s strategies and underlying investments.The section calledWhat are the risks of investing in the Fund? for each Fund willtell you which risks are the principal risks that apply to that Fund.

Asset allocation riskFunds that invest across different asset classes, such as domes-tic fixed income, foreign fixed income, Canadian equities and/orforeign equities, will assign a strategic weight to each of theasset classes that is consistent with the intended investmentobjective and risk profile of the Fund.This is called “asset allo-cation”. In certain cases, the Fund’s investment advisor may

also utilize tactical asset allocation strategies in an attempt toadd value to the Fund and to provide more stable returns bytaking advantage of current and expected future market con-ditions. This is done by actively adjusting the Fund’s exposureto the different asset classes by increasing or decreasing itsweight to a particular asset class or asset classes, while remain-ing within an acceptable range. Asset allocation risk is the riskthat one or more of the asset classes for which the Fund’s expo-sure was tactically increased may underperform relative to otherasset classes; or conversely, that one or more of the asset classesfor which the Fund’s exposure was tactically decreased mayoutperform relative to other asset classes.

Concentration riskConcentration risk is the risk associated with investments thatare concentrated in a particular issuer, group of issuers or sec-tor, or in a single country or region of the world. Concentrationof investments allows a Fund to focus on the potential of a par-ticular issuer, sector or region. However, concentration also meansthat the value of the Fund tends to be more volatile than thevalue of a more diversified Fund because the Fund’s value is

How risk is related to return

Generally, there is a strong relationship between the amount of risk associated with aparticular investment and that investment’s long-term potential to increase in value.Investments that have a lower risk also tend to have lower returns because factors that canaffect the value of the investment, the risks, are well known or are well controlled and havealready been worked into the price of the investment. On the other hand, investments thatcould have potentially higher returns when conditions are favourable also risk generatinghigh losses if conditions become unfavourable. This is because the factors affecting thevalue of such investments are less certain or difficult to control.

General information about mutual fundsand the HSBC Mutual Funds

3

affected more by the performance of that particular issuer, groupof issuers, sector, country or region.

Credit riskWhen you invest in fixed income securities, such as bonds,you are making a loan to the company or the government issu-ing the security. Credit risk is the risk that they may not be ableto pay back this loan when it comes due. Fixed income secu-rities are also rated by organizations such as Standard & Poor’s.If a security’s rating is downgraded because the rating organi-zation feels the issuer may not be able to pay investors back,the value of the investment may fall.

Currency riskFunds that hold investments in foreign securities are subjectto currency risk, to the extent that this exposure is not directlyhedged by foreign exchange contracts. This risk applies to anyFund that has foreign investments in its portfolio. Changes inthe currency exchange rates between Canada and the countrywhere a Fund holds an investment affect the Canadian dollarvalue of that investment because it must be bought and soldwith a foreign currency. When the value of the Canadian dollarfalls in relation to foreign currencies, the Canadian dollar valueof foreign securities will rise because selling them will bringinvestors a higher amount in Canadian dollars. Conversely, whenthe value of the Canadian dollar rises, the Canadian dollar valueof foreign securities falls because their sale would earn fewerCanadian dollars.

Cyber security riskThe Funds and their service providers’ use of Internet, technol-ogy and information systems may expose a Fund to potentialrisks linked to cyber security breaches of those technologicalor information systems. Cyber security breaches, amongst otherthings, could allow an unauthorized party to gain access to pro-prietary information, customer data or Fund assets, or causethe Fund and/or its service providers to suffer data corruptionor lose operational functionality.

Derivative riskA derivative is usually a contract between two parties to buyor sell an asset at a future date. The value of the contract isderived from the market price or value of the underlying asset,such as currency or stocks, or an economic indicator, such asstock market indices or interest rates. Derivatives may be usedfor hedging and non-hedging purposes.

To hedge is to reduce the risk of an existing investment by fix-ing some or all aspects of the price of that investment at somepoint in the future. Hedging through the use of derivatives mayhelp reduce the risks associated with other investments, includ-ing currency value fluctuations, stock market risks and interestrate changes. However, there can be no assurance that a Fund’shedging strategies will be effective. Hedging against changesin currencies, stock markets or interest rates does not neces-

sarily eliminate all fluctuations in the price of portfolio securi-ties or prevent losses if the price of those securities declines.Hedging may also reduce the opportunity for gain if the valuein the Fund’s reporting currency of the hedged currency or stockmarket should rise or if the hedged interest rate should fall. Itmay not be possible for a Fund to protect its investments againstgenerally anticipated changes in currencies, stock markets orinterest rates through the use of derivatives.The use of derivatives for hedging or non-hedging purposes issubject to risks, including:� the other party to a derivative contract may not meet its obli-

gations;� a Fund may not be able to buy or sell a derivative to make

a profit or cover a loss; and� derivatives traded on foreign markets may be less liquid

than derivatives traded on North American markets.Derivatives will be used in a way that is consistent with eachFund’s investment objectives and as permitted by the Cana-dian securities regulatory authorities.

Foreign market riskInvesting in foreign markets can present additional risk becauseforeign countries often have different accounting and financialreporting standards, political and legal systems, securities andstock exchange practices, and cultures and customs from thosein Canada. Investments in a foreign market may also be sub-ject to exchange control requirements, imposition of varioustaxes, withholding taxes prior to payment of dividends or otherdistributions, and expropriation of assets. The ability of a Fundto make distributions to unitholders assumes the continuingfree exchange of the currencies in which the Fund is invested.As a result, the value of securities that are issued by a com-pany in a foreign market may be lower, as they may be lessliquid and more volatile than those issued by similar compa-nies in North America. In general, investments in more devel-oped markets, such as the U.S. andWestern Europe, have lowerforeign market risk, while investments in emerging markets,such as Southeast Asia or Latin America, have higher foreignmarket risk.

Fund of funds riskCertain of the Funds invest directly in, or obtain exposure to,other mutual funds as part of their investment strategy.TheseFunds will be subject to the risks of the underlying funds. Inaddition, if a Fund holds units of an underlying fund, and theunderlying fund suspends redemptions, the Fund will be unableto value part of its portfolio and may be unable to redeem unitsin the underlying fund.These Funds may have more than 10%of their net assets invested in an underlying fund or they mayown more than 10% of the units of an underlying fund at anytime. Therefore, if the Funds redeem a large number of unitsof the underlying funds, it may cause the underlying fund tohave to change the composition of its portfolio significantly orsell its investments at unfavourable prices, which could impactthe overall performance of the underlying fund, and conse-quently the Funds’ remaining investment, if any, in the under-lying fund.

General information about mutual fundsand the HSBC Mutual Funds (continued)

4

Income trust riskIncome trusts commonly hold debt or equity securities in, orare entitled to receive royalties from, an underlying active busi-ness. Income trusts generally fall into four sectors: businesstrusts, utility trusts, resource trusts and real estate investmenttrusts. Income trusts face similar risks to those set out in theSecurity risk section on the next page.Investments in income trusts have varying degrees of risk, depend-ing on the sector and the underlying assets. Such investmentsare also subject to general risks associated with business cycles,commodity prices, interest rates and other economic factors.Returns on income trusts are neither fixed nor guaranteed. Incometrusts and other securities that are expected to distribute incomeare more volatile than fixed income securities.The value of incometrust units may decline significantly if they are unable to meettheir distribution targets. To the extent that claims against anincome trust are not satisfied by the trust, investors in the incometrust (including a mutual fund that invests in the income trust) couldbe held responsible for such obligations. Some, but not all, juris-dictions in Canada have enacted legislation to protect inves-tors from some of this liability.

Interest rate riskFunds that invest in debt instruments – including, but not lim-ited to, bonds, mortgages and debentures – are subject to inter-est rate risk. Debt instruments earn a fixed rate of interest,which is paid to investors on a regular basis, often semi-annually or annually. When interest rates rise, existing invest-ments in debt instruments become less valuable because newdebt instruments will pay the current, higher rate of interest.Therefore, as interest rates rise the price that investors are will-ing to pay for the existing investments in debt instruments willfall. Conversely, if interest rates fall, the value of existing invest-ments in debt instruments with a higher rate of interest willrise. Longer-term debt instruments are generally more sensi-tive to changes in interest rates than other securities.

Large redemption riskAn investor, group of investors or another mutual fund mayhold a large portion of the outstanding units of a Fund. If aninvestor, group of investors or another mutual fund redeemsunits representing a large portion of the outstanding units of aFund, generally representing 10% or more of the net assetvalue of the Fund, the Fund may be required to change thecomposition of the portfolio significantly or sell a significantportion of its investments at unfavourable prices, which couldaffect the overall performance of the Fund.

Liquidity riskLiquidity risk is the risk that a significant portion of invest-ments within a Fund’s portfolio cannot be readily convertedinto cash when required.While each Fund has guidelines intendedto limit the amount of illiquid securities that it may hold at anygiven time, the Funds are exposed to varying degrees of liquid-ity risk depending on market conditions.

Market riskFunds that invest in securities listed on a stock exchange willbe affected by general changes in the stock market.This is referredto as market risk. Stock market changes can be caused by anumber of factors, including interest-rate fluctuations, changesin market outlook and changes in the economic, social or politi-cal climate of the region. For example, if a recession is fore-casted, the stock market may fall as investors fear poor eco-nomic performance and falling stock prices. As investors selltheir securities in an effort to minimize their losses, securitiesof a company listed on an exchange may be negatively affectedby the overall downward movement of the market, even if thecompany that issued the securities is still strong.

Multiple series unit riskThe Funds have authorized multiple series of units. Each seriesof units will be charged any expenses that are specifically attrib-utable to that series. The expenses will be deducted in calcu-lating the unit price only for that series of units, and will reducethe value of a Fund’s assets that are attributable to that series.However, the expenses will continue to be liabilities of the Fundas a whole and if there are insufficient assets attributable tothe series to pay the expenses, the remaining assets of a Fundwould be used to pay the excess expenses. In these circum-stances, the unit prices of the other series would decline bytheir proportionate share of the excess expenses. Please referto the sections called Purchases, switches and redemptionsand Fees and expenses for a further explanation of each seriesand the fees applicable to them.

Return of capital riskSome mutual funds aim to provide a reasonably consistent levelof monthly income to investors. In certain situations, such asperiods of declining markets or changes in interest rates, theFund may earn less income than the amount of its regular dis-tributions.To help maintain a consistent payout rate each month,a return of capital is added to make up the remainder of thepayment. A distribution that is in excess of a Fund’s net incomeor net realized capital gains represents a return of some or allof the investor’s original investment back to the investor. Returnsof capital may reduce the net asset value of the Fund and couldimpact the Fund’s ability to generate future income.

Securities lending, repurchase and reverserepurchase transaction riskThere are risks associated with securities lending, repurchaseand reverse repurchase transactions because the value of secu-rities loaned under a securities lending transaction or sold undera repurchase transaction may exceed the value of the collat-eral held by the Fund. If there is a default on an obligation toreturn or resell the securities to the Fund, the collateral maybe insufficient to enable the Fund to purchase replacement secu-rities and the Fund may suffer a loss for the difference. Simi-larly, the value of securities purchased by a Fund under a reverse


5

repurchase transaction may decline below the amount of cashpaid by the Fund. If there is a default on an obligation to repur-chase the securities from the Fund, the Fund may need to sellthe securities for a lower price and suffer a loss for the differ-ence.For more information about how the Funds engage in thesetypes of transactions, please see the section in the introduc-tion to the second part of this Simplified Prospectus called Secu-rities lending transactions, repurchase transactions and reverserepurchase transactions.

Security riskWhen a Fund invests in a company, factors specifically regard-ing that company may affect the value of the Fund’s invest-ment.This is referred to as security risk. Company-specific fac-tors include how it is managed, the products it sells and itsfinancial health. If the company performs poorly in one or moreof these areas, the value of its shares should decrease. Secu-rity risk is one reason that the value of a company’s sharesmay fall despite a rising market.

Short sale riskThe Funds’ short sales, if any, are subject to special risks. Ashort sale involves the sale by a Fund of a security that hasbeen loaned to it with the hope of purchasing the same secu-rity at a later date at a lower price. The Funds may also enterinto a short derivative position through a futures contract orswap agreement. If the price of the security or derivative hasincreased during this time, then the Fund will incur a loss equalto the increase in price from the time that the short sale wasentered into plus any premiums and interest paid to the thirdparty. Therefore, short sales involve the risk that losses maybe exaggerated, potentially losing more money than the actualcost of the investment. Also, there is the risk that the thirdparty to the short sale may fail to honour its contract terms,causing a loss to the Fund. A Fund may also experience diffi-culties in repurchasing the borrowed securities if a liquid mar-ket for the securities does not exist. See the section in the

introduction to the second part of this Simplified Prospectuscalled Short selling for additional details regarding short salesthat may be conducted by the Funds.

Small capitalization riskSecurities of small companies are usually traded less fre-quently and in smaller volumes than those of larger compa-nies. Funds that invest a significant portion of their assets insmall companies are subject to small capitalization risk and mayfind it more difficult to buy and sell securities and tend to bemore volatile than Funds that focus on larger capitaliza-tion companies.

Tax loss restriction event riskIf a Fund experiences a “loss restriction event”: (i) the Fundwill be deemed to have a year-end for tax purposes, and (ii) theFund will become subject to the loss restriction rules gener-ally applicable to corporations that experience an acquisition ofcontrol, including a deemed realization of any unrealized capi-tal losses and restrictions on their ability to carry forward losses.A Fund will be subject to a loss restriction event when a per-son becomes a “majority-interest beneficiary” of the Fund, ora group of persons becomes a “majority-interest group of ben-eficiaries” of the Fund, as those terms are defined in the affili-ated persons rules contained in the Income Tax Act (Canada),with appropriate modifications. Generally, a majority-interestbeneficiary of a Fund will be a beneficiary who, together withthe beneficial interests of persons and partnerships with whomthe beneficiary is affiliated, has a beneficial interest in the Fundthat has a fair market value that is greater than 50% of the fairmarket value of all the interests in the income or capital, respec-tively, in the Fund. Generally, a person is deemed not to becomea majority-interest beneficiary, and a group of persons is deemednot to become a majority-interest group of beneficiaries, of aFund if the Fund meets certain investment requirements andqualifies as an “investment fund” as defined in the IncomeTaxAct (Canada). The Funds are expected to meet these require-ments and qualify as investment funds pursuant to these rules.


6

Organization and management of the HSBC Mutual FundsThe following table explains the management structure of the HSBC Mutual Funds:

ManagerHSBC Global Asset Management (Canada) Limited3rd Floor, 885 West Georgia StreetVancouver, British Columbia V6C 3E8

As manager of the Funds, we manage the overall business and affairs of the Funds andadminister or arrange for the administration of the day-to-day operations of the Funds.* Forfurther information on the services we provide to the Funds as manager, see the sectionbelow called Fees and expenses – Fees and expenses paid by the Funds.

TrusteeHSBC Global Asset Management (Canada) LimitedVancouver, British Columbia

As trustee of the Funds, we hold legal title to the property of each Fund – its portfolio ofcash and securities – on your behalf.

Investment AdvisorHSBC Global Asset Management (Canada) LimitedVancouver, British Columbia

As the primary investment advisor for all Funds, we are responsible for providing investmentadvice and portfolio management services to the Funds. We may hire sub-advisors,including sub-advisors that are affiliated with us, to provide investment advice and portfoliomanagement services to the Funds. We may hire or replace sub-advisors at any time.Thesub-advisors will be paid by us, from the management fee that we receive.The sub-advisors(if any) for the Funds as at the date of this Simplified Prospectus are described in the sectioncalled Fund details.

Where we hire non-related sub-advisors to provide investment advice and portfoliomanagement services to the Funds, we make such appointments based primarily onrecommendations provided by our Wealth Portfolio Management business unit. SeeSelection of sub-advisors.

Although we will be responsible for the investment advice or portfolio managementservices provided by the appointed sub-advisors, we are required to advise you that it maybe difficult for you to enforce any legal rights you may have against sub-advisors that areresident outside Canada or that have all or a substantial portion of their assets locatedoutside Canada.

Principal DistributorHSBC Investment Funds (Canada) Inc.**Vancouver, British Columbia

As principal distributor of units of the Funds, HSBC Investment Funds (Canada) Inc. marketsand distributes units of the Funds.

CustodiansHSBC Bank Canada**Vancouver, British Columbia

The NorthernTrust Company, Canada BranchToronto, Ontario

HSBC Bank Canada is custodian for all HSBC World Selection Diversified Funds.TheNorthernTrust Company, Canada Branch is custodian for all other Funds.The custodian isresponsible for the safekeeping of a Fund’s securities and other investments. In accordancewith applicable securities laws, the custodian may appoint a sub-custodian in each of thecountries in which the Funds trade securities.

RegistrarHSBC Global Asset Management (Canada) LimitedVancouver, British Columbia

As registrar of the Funds, we keep track of who owns units of the Funds, and process thebuying, switching and selling of units of the Funds.

AuditorKPMG LLP, Chartered Professional AccountantsVancouver, British Columbia

KPMG LLP examines the financial statements of the Funds annually to ensure that they arepresented fairly, in all material respects, in accordance with International Financial ReportingStandards. KPMG LLP is independent of us.

Independent Review Committee In accordance with National Instrument 81-107 Independent Review Committee forInvestment Funds (“NI 81-107”), we have established an independent review committee(“IRC”) for the Funds. We refer conflict of interest matters within the scope of NI 81-107 inrespect of the Funds to the IRC for their review and approval.

The IRC is composed of three members, each of whom is independent within the meaningof NI 81-107.

The IRC prepares, at least annually, a report of its activities to unitholders.This report isavailable at no cost on our website at www.hsbc.ca/investment-resources or at your requestby contacting us at the address set out on the back of this Simplified Prospectus. Additionalinformation about the IRC, including the names of the members, is available in the AnnualInformation Form for the Funds.

Under applicable securities laws, we may not require your approval to effect a fund mergeror to change the auditor of a Fund. In these circumstances, the IRC must approve theproposal and we will provide you with at least 60 days’ written notice before the changetakes effect.

* The Funds may invest in units of other mutual funds and exchange-traded funds managed by us or other members of the HSBC Group (“Affili-ated Funds”). We will not vote units of Affiliated Funds held by the Funds. Unitholders of the Funds have no voting rights or ownership in the


7

securities of other mutual funds or exchange-traded funds held by the Funds. However, we may pass on the right to vote units of AffiliatedFunds to unitholders of the Funds that hold those units.

** These companies are related to us because they are our affiliates. However, each company is a separate legal entity.


8

Purchases, switches and redemptionsAvailable series of unitsEach Fund is permitted to have an unlimited number of seriesof units and may issue an unlimited number of units of eachseries. Although the money that you and other investors payto purchase units is tracked on a series by series basis in theFund’s administration records, the assets of all series of theFund are combined into a single pool to create one portfoliofor investment purposes.

Each of the HSBC Mutual Funds (other than the HSBC WorldSelection Diversified Funds) currently offers five series ofunits: Investor Series, Advisor Series, Premium Series, Man-ager Series and Institutional Series. Each of the HSBC WorldSelection Diversified Funds currently offers four series ofunits: Investor Series, Advisor Series, Manager Series and Insti-tutional Series. A brief description of each series follows:

Series Description

Investor Series units Investor Series units are for retail investors.There is no sales charge or redemption charge associated with InvestorSeries units.You can purchase, switch or redeem Investor Series units through the Principal Distributor orother dealers.

Advisor Series units Advisor Series units are for retail investors. Advisor Series units are subject to a sales charge. See the section calledFees and expenses for more details.You can purchase, switch or redeem Advisor Series units through dealers otherthan the Principal Distributor.

Premium Series units Premium Series units are for retail investors investing a minimum amount as determined by us from time to time.See the section called Minimum investment requirements for more details.The management fee for the PremiumSeries units is lower than the fee for Investor Series and Advisor Series units.There is no sales charge or redemptioncharge associated with Premium Series units.You can purchase, switch or redeem Premium Series units through thePrincipal Distributor or other dealers.

Manager Series units Manager Series units are generally for investors who are enrolled in a dealer-sponsored “fee-for-service” or “wrap”program and who are subject to an annual asset-based fee rather than commissions on each transaction, or for anyother investors for whom we do not incur distribution costs.The management fee for Manager Series units is lowerthan the fee for Investor Series and Advisor Series units.There is no sales charge or redemption charge associatedwith Manager Series units.You can purchase, switch or redeem Manager Series units through the PrincipalDistributor or other dealers.

Institutional Series units Institutional Series units are for retail or institutional investors investing a minimum amount (as determined by usfrom time to time) in a Fund, who have entered into an agreement with us or a participating dealer permitting themto purchase Institutional Series units, and/or who meet certain other conditions.The management fees for theInstitutional Series units are negotiated by investors and are payable directly to us (as opposed to indirectly throughthe Funds).The management fee for the Institutional Series units will not exceed the fee for Investor Series units.There is no sales charge or redemption charge associated with Institutional Series units.You can only purchase,switch or redeem Institutional Series units through us or a participating dealer.

Minimum investment requirementsYou must meet the minimum investment requirements for theinitial investment, subsequent investment and ongoing bal-ance to be eligible to purchase or continue to hold a series ofa Fund.The following table sets out the minimum initial invest-ment, minimum subsequent investment and minimum bal-ance requirement for each series of the Funds:

Series

Minimuminitial

investment

Minimumsubsequent

investment*Minimum

balance

Investor Series $ 500 $50 $ 500

Advisor Series $ 500 $50 $ 500

Premium Series $ 100,000 $50 $ 100,000

Manager Series $ 500 $50 $ 500

Institutional Series $1,000,000 $1,000,000

* Minimum investment requirements may differ under the regularinvestment plan, monthly withdrawal plan or the mutual fund allo-cation service offered by the Principal Distributor. See the sectioncalled Optional services for more details.

The minimum investment requirements are per Fund held inone account, and cannot be spread across multiple Funds inthe same account or across multiple accounts. The minimumbalance is the market value of your units at any point in time.

If you are investing in the HSBC U.S. Dollar Money Market Fund,HSBC Global Corporate Bond Fund, HSBC U.S. Dollar MonthlyIncome Fund, HSBC Global Equity Volatility Focused Fund orusing the U.S. dollar purchase service, the minimum invest-ment amounts and all fees are in U.S. dollars. For more infor-mation on the U.S. dollar purchase service, see Optional ser-vices – U.S. dollar purchase service.If you invested in Investor Series or Advisor Series units of aFund in an account and you subsequently meet the minimuminvestment amount to qualify for the Premium Series units ofthe same Fund as a result of additional purchases (includingthose under a regular investment plan), dividend reinvest-ments or as a result of an increased value of the investments,we will not automatically switch your units to the Premium Series.It is your sole responsibility to instruct your dealer to switchyour units of a Fund in the account to the Premium Series unitsof the same Fund to be held in the same account. If the mar-ket value of the Premium Series units of a Fund in your accountfalls below the specified minimum balance requirement becauseyou redeemed or switched out units, we reserve the right toautomatically change your Premium Series units into InvestorSeries units or another series of units of the same Fund in thesame account without your consent. We reserve the right torestrict the availability of the Premium Series units. We may


9

change the minimum initial investment, minimum balance require-ment or other conditions for the Premium Series and Institu-tional Series units from time to time.An investment in the Manager Series units is generally onlyavailable with confirmation from you or your dealer that youare enrolled in an eligible “fee-for-service” or “wrap” programas described in the table above.We are able to reduce our man-agement fee rate on the Manager Series units because ourcosts associated with this series are lower than with other series.If we become aware that you are no longer eligible to holdManager Series units, we reserve the right to change your Man-ager Series units into Investor Series units or another series ofunits of the same Fund.To qualify to purchase and continue to hold Institutional Seriesunits, you must meet the minimum investment requirementsand enter into an agreement with us or a participating dealerpermitting you to purchase Institutional Series units. If the mar-ket value of your investment in Institutional Series units of aFund falls below the specified minimum investment require-ment because you redeemed or switched out units, we reservethe right to automatically change your Institutional Series unitsinto Premium Series or Investor Series units or another seriesof units of the same Fund in the same account without your con-sent.

General informationWe or our authorized agents calculate a separate net asset valuefor each series of unit. The net asset value per unit of eachseries is calculated on each valuation day by taking the propor-tionate share of the net assets of the Fund allocated to theseries of unit as determined on the previous valuation day, andadding or subtracting, as appropriate, the series’ proportionateshare of net income, net realized capital gains (losses) and theunrealized change in value of the Fund’s investment portfoliosince the previous valuation day of the series. From this amount,we or our authorized agents then subtract the series’ directexpensesand theseries’proportionateshareofcommonexpensesof the Fund since the previous valuation day. This amount isthen divided by the number of units outstanding of the seriesof unit on that valuation day to produce the daily net asset valuefor units of the series.A valuation day is any day that the Toronto Stock Exchange isopen for business or such other day as we may determine fromtime to time.Before you can request a transaction to buy units of a Fund,you must first open an account with us, the Principal Distribu-tor or a participating dealer.When you submit a request to buy, switch or sell units of aFund, the amount you pay or receive for each unit will dependon when we receive your request.Generally, trades must be received by us before 1:00 p.m. PacificTime on a valuation day to receive the Fund’s unit value for thatday. If we receive trade requests after 1:00 p.m. Pacific Timeon a valuation day, those requests will be processed using theFund’s unit value on the next valuation day.The Principal Distributor and other dealers will have their owntime requirements for receiving a trade request in order to meetour cut-off time. Please consult with your dealer for informa-tion about their cut-off times for processing orders.

How to buy units of the FundsInvestor Series, Premium Series and Manager Series units ofthe Funds may be bought through any dealer including the Prin-cipal Distributor. Advisor Series units can only be bought throughdealers other than the Principal Distributor. Institutional Seriesunits can only be bought through us or a participating dealer.You must meet the minimum initial and subsequent invest-ment amounts, minimum balance requirement and any othereligibility requirements applicable to each series of our Funds.See the section called Minimum investment requirements formore details.

If you wish to buy Investor Series, Premium Series or ManagerSeries units of the Funds through your account with the Prin-cipal Distributor, you can submit your request along with pay-ment to the Principal Distributor at any branch of HSBC BankCanada, by callingTeleFund at 1-800-830-8888, online, or throughany electronic or other means that may be accepted by thePrincipal Distributor from time to time.

Institutional Series units of our Funds can only be purchasedthrough us or a participating dealer after you have entered intoan agreement with us or a participating dealer permitting youto purchase Institutional Series units.

If you are using a dealer other than the Principal Distributor,please consult with them for details on applicable fees andexpenses you may be required to pay in connection with thepurchase of units of the Funds.

You will not be charged a fee by us or by the Principal Distribu-tor to buy Investor Series, Premium Series, Manager Series orInstitutional Series units of the Funds. If you buy Advisor Seriesunits you will pay your dealer a sales charge. Your choice ofseries of units to buy affects the charge you, or we, will pay toyour dealer and the amount of other compensation paid to yourdealer. See the sections called Fees and expenses and Dealercompensation for more information.

The number of units of any series that you receive is based onthe net asset value per unit of that series on the valuation daythat we process your request. In order to fully invest the moneyyou send us, we take the amount you are investing less anyapplicable sales charges payable, divided by the net asset valueper unit of that series, and issue the appropriate number ofunits (including partial units of a Fund if necessary). For example,if you invest $500, assuming there is no sales charge, and unitsof the Fund you are investing in have a net asset value of $11.75each, you will receive 42.553 units of the Fund.

Units are not transferable or assignable but may be redeemedby you. When you buy units of a Fund, we do not issue you acertificate representing these units. However, your dealer willsend you a confirmation of your purchase.

We have the right to refuse any request to buy units of the

Funds within one business day of receiving your request.

If your request is refused, we will return your money to youin full.

If you pay for your units by cheque and it is returned becauseof insufficient funds or any other reason after the units havebeen issued to you, we will immediately redeem all of the units


10

that you bought with the cheque. We will use the proceedsfrom the redemption to pay for the units based on the unitvalue at which you bought them. If the units are worth morethan when you bought them, the applicable Fund or Funds willkeep the difference. If the units are worth less than when youbought them, the applicable Fund or Funds will absorb the dif-ference. We may collect the difference on behalf of the Fund,plus any costs and interest, from you or your dealer, who maythen collect it from you.

How to sell units of the FundsInvestor Series, Premium Series and Manager Series units ofour Funds may be sold through any dealer, including the Prin-cipal Distributor. Advisor Series units can be sold only throughdealers other than the Principal Distributor. Institutional Seriesunits can only be sold through us or a participating dealer.

If you have an account with the Principal Distributor and youwish to sell all or part of your Investor Series, Premium Seriesor Manager Series units in a Fund, you must submit your requestto the Principal Distributor at any branch of HSBC Bank Canada,by calling TeleFund at 1-800-830-8888, online, or through anyelectronic or other means that may be accepted by the Princi-pal Distributor from time to time.

The money you receive when you sell your units of any serieswill be based on the net asset value per unit of the Fund forthat series on the valuation day the request is processed, lessany applicable charges.We will send you the proceeds as soonas possible, and no later than three business days after thevaluation day on which your units were sold.

With your approval, a Fund may pay the amount owing to you,for units of the Fund redeemed by you, with securities held bythe Fund. If we do this, the securities you receive will be equalin value to the money that you would have received on theapplicable redemption date.

A short-term trading fee may apply if you sell your units within30 days of the date of your most recent purchase of those units,with the exception of the HSBC Canadian Money Market Fundand the HSBC U.S. Dollar Money Market Fund. See the sec-tion called Short-term trading below for more information.

Under extraordinary circumstances, we reserve the right to sus-pend the sale of units of a Fund or to delay payment of theproceeds from the sale of any units.These circumstances include:

� when normal trading has been suspended on an exchangeon which more than 50% of the value of a Fund’s underly-ing investments is traded, and those securities are not tradedon any other exchange that represents a reasonably prac-tical alternative; or

� when we determine that the buying and selling of units isnot reasonably practical (with the consent of the applicablesecurities regulators).

How to switch units of the FundsYou may switch your investment among different Funds.To switchinvestments among the Funds, after you have provided yourinstructions to your dealer, we redeem units from the Fund

that you are switching out of and use the proceeds to buy unitsof the Fund you are switching into. You may also switch yourinvestment among different series of units of the same Fund,provided you meet the minimum investment requirements andany other eligibility requirements applicable to the series thatyou are switching to. When you switch investments amongdifferent series of the same Fund, after you have provided yourinstructions to your dealer, we redeem units from the seriesthat you are switching out of and use the proceeds to buy unitsof the series of the same Fund you are switching into. Unlessapproved by us, you can only switch units of one Fund for thesame series of units of another Fund.

The number of units of any series that are bought and sold isbased on the net asset value per unit of the Fund for the serieson the valuation day the request is processed, less any appli-cable charges. Following the switch, you must meet the mini-mum investment requirements for the applicable series of theFund that you are switching to. See the section called Mini-mum investment requirements for more details.

If you have an account with the Principal Distributor and youwish to switch your investments from Investor Series, Pre-mium Series or Manager Series units of one Fund to InvestorSeries, Premium Series or Manager Series units of another Fund,it is your sole responsibility to submit your request to the Prin-cipal Distributor at any branch of HSBC Bank Canada, by call-ing TeleFund at 1-800-830-8888, online, or through any elec-tronic or other means that may be accepted by the PrincipalDistributor from time to time. We will not automatically switchyour units even if you meet the minimum investment require-ments and qualify to hold the series.

If you are using a dealer other than the Principal Distributor,your Investor Series, Advisor Series, Premium Series and Man-ager Series units of our Funds may be switched through them.Please consult with them about how to switch units of theFunds and any applicable fees they may charge for switchingunits. If you are switching Advisor Series units of one Fund forAdvisor Series units of another Fund, no additional sales chargeswill be payable by you on the switch.

A short-term trading fee may apply if you switch your units within30 days of the date of your most recent purchase of those units,with the exception of the HSBC Canadian Money Market Fundand the HSBC U.S. Dollar Money Market Fund. See the sec-tion called Short-term trading below for more information.

If you are no longer eligible to hold a series of units, we havethe authority to automatically switch you out of that series toanother series of units of the same Fund without your con-sent.You can only switch between Funds purchased in the samecurrency. You cannot switch units purchased in Canadian dol-lars into units purchased in U.S. dollars and vice versa.

For tax purposes, switching your investment among differentFunds is treated the same as selling your units of a Fund andwill result in a capital gain or loss. Changing units of one seriesof a Fund into units of another series of the same Fund will notresult in a capital gain or loss. Please refer to the section calledIncome tax considerations for investors for more details.


11

The following table explains how you may switch units within your account and whether or not sales or redemption charges will apply:

Switching to InvestorSeries or PremiumSeries units

Switching toAdvisor Series units(sales charge option)

Switching to ManagerSeries units

Switching toInstitutionalSeries units

Switchingfrom Investor Seriesor PremiumSeries units

No sales orredemption charge.

Your dealer may requireyou to pay a salescharge.1

No sales or redemptioncharge.You may onlyswitch to Manager Seriesunits if you meet therequirements forpurchasing ManagerSeries units.1

No sales or redemptioncharge.You may onlyswitch to InstitutionalSeries units if you meetthe requirements forpurchasing InstitutionalSeries units.

Switchingfrom Advisor Seriesunits(sales charge option)



No sales or redemptioncharge.You may onlyswitch to Manager Seriesunits if you meet therequirements forpurchasing ManagerSeries units.


Switching fromManagerSeries units





SwitchingfromInstitutionalSeries units



No sales or redemptioncharge.You may onlyswitch to Manager Seriesunits if you meet therequirements forpurchasing ManagerSeries units.1


1 You cannot switch Investor Series, Premium Series, Manager Series or Institutional Series units to Advisor Series units if your account is withthe Principal Distributor because the Principal Distributor does not offer Advisor Series units.

Short-term tradingMutual funds are typically considered long-term investments,so we discourage investors from switching or selling units fre-quently. Short-term trading can increase administrative coststo all investors and can negatively impact the overall perfor-mance of a Fund because the Fund may be forced to hold addi-tional cash or to sell portfolio holdings to pay redemption pro-ceeds, thereby incurring additional trading costs.We reserve the right to charge a short-term trading fee of upto 2% of the value of the units if you switch or sell your unitswithin 30 calendar days of the date of your most recent pur-chase of those units, with the exception of the HSBC Cana-dian Money Market Fund and the HSBC U.S. Dollar Money Mar-ket Fund. This fee will be paid to the applicable Fund. We willcharge you a short-term trading fee whether or not you use theproceeds of your switch or sale to buy other units of the Funds.See the section called Fees and expenses – Fees and expensespaid directly by you.If you do not pay the short-term trading fee in full immediatelyafter it is due, you are deemed to pledge units of any HSBCMutual Funds you may own as security for the outstanding feeand hereby give us a power of attorney, including the right toexecute and deliver all necessary documents, in order to col-lect this fee by redeeming such other units of any Funds thatyou may own without notice to you, and you shall be respon-

sible for any tax consequences or other related costs. We mayin our sole discretion decide which units are to be redeemedand any such redemptions may be made without prior noticeto you in such manner as we may decide is advisable.You mustalso pay all costs and expenses (including legal fees) plus rea-sonable administration charges incurred for the collection of allor any of your indebtedness.We retain the right to reject your request to switch or purchaseunits of the Funds if you are, in our opinion, engaging in short-term trading. If we reject your request, we will return the origi-nal amount of money we have received from you in full.

Mandatory redemptionWe reserve the right to require any unitholder of a Fund toredeem such unitholder’s entire holding or a portion of units ofthe Fund at our sole discretion, including without limitation wherea unitholder is or becomes a U.S. citizen or resident of theUnited States or a resident of another foreign country if weconclude that their participation has the potential to cause adverseregulatory or tax consequences for the Fund or other unitholdersof the Fund.

Restrictions on sales and offers toU.S. personsUnits of the Funds may not be offered or sold to any “U.S. per-son” except as permitted by us and except as permitted by


12

U.S. law from time to time, including as permitted under exemp-tions from fund registration requirements. For these pur-poses, the term “U.S. person” means the following:1. An individual who is deemed a resident of the U.S. under

any U.S. law or regulation.2. An entity:

(a) that is a corporation, partnership, limited liability com-pany or other business entity:i. that was created or organized under U.S. fed-

eral or state law including any non-U.S. agencyor branch of such entity; or

ii. which, regardless of place of formation or orga-nization, was organized principally for passiveinvestment (such as an investment company orfund or similar entity other than an employeebenefit plan or employee pension scheme forthe employees, officers or principals of a non-U.S. entity having its principal place of busi-ness outside the U.S.) and� owned directly or indirectly by one or more

U.S. persons, with respect to which such U.S.persons (unless defined as a “qualified eli-gible person” under U.S. Commodity FuturesTrading Commission Regulation 4.7 (a)) directlyor indirectly hold in the aggregate 10% orgreater beneficial interest; or

� where a U.S. person is the general partner,managing member, managing director or otherposition with authority for directing the enti-ty’s activities; or

� was formed by or for a U.S. person princi-pally for the purpose of investing in securi-ties not registered with the U.S. Securitiesand Exchange Commission; or

� where more than 50% of its voting owner-ship interests or non-voting ownership inter-ests are directly or indirectly owned by U.S.persons; or

iii. that is any agency or branch of a non-U.S. entitylocated in the U.S.; or

iv. has its principal place of business in the U.S.; or(b) that is a trust created or organized under U.S. fed-

eral or state law or regardless of the place of cre-ation or organization:i. where one or more U.S. persons has the author-

ity to control all substantial decisions of the trust; orii. where the administration of the trust or its for-

mation documents are subject to the supervi-sion of one or more U.S. courts; or

iii. where any settlor, founder, trustee or other per-son responsible for decisions related to the trustis a U.S. person; or

(c) that is an estate of a deceased person regardless ofwhere the person resided while alive where an execu-tor or administrator is a U.S. person.

3. An employee benefit plan established and administeredin accordance with the laws of the U.S.

4. A discretionary or non-discretionary investment accountor similar account (other than an estate or trust) held by adealer or other fiduciary for the benefit or account of aU.S. person (as defined above).

For the purpose of the above definition, “U.S.” means theUnited States of America (including the States and the Districtof Columbia), its territories, possessions and other areas sub-ject to its jurisdiction.

If, subsequent to a unitholder’s investment in the Funds, theunitholder becomes a U.S. person, the unitholder (i) may berestricted from making any additional investments in the Fundsand (ii) as soon as practicable may have its units compulsorilyredeemed by the Funds (subject to the requirements of appli-cable law).

We may, from time to time, waive or modify the above restric-tions.

Optional services

Regular investment plansIf you open an account with the Principal Distributor, a regularinvestment plan is available for Investor Series, Premium Seriesand Manager Series units through the Principal Distributor.Thisoptional plan is for investors who want to make regular invest-ments through the Principal Distributor. The minimum regularinvestment is $25 and the minimum initial investment is waivedfor Investor Series and Manager Series units. The minimumregular investment is $25 for Premium Series units. However,you will still be required to make the minimum initial invest-ment applicable to the Premium Series units before your regu-lar investment plan can begin. Investments under the regularinvestment plan may be made weekly, bi-weekly, semi-monthly,monthly or quarterly. When you sign up for the regular invest-ment plan we will withdraw the amount of your investmentfrom your bank account with HSBC Bank Canada or with anotherfinancial institution, and invest it in Investor Series, PremiumSeries or Manager Series units of the Funds you have chosenon the first valuation day after we receive your money.

There is no fee for participating in the regular investment plan.You can start or end your participation in the plan at any timewithout charge by telling the Principal Distributor in writing orany other method of communication that may be accepted bythe Principal Distributor from time to time. Your instructionsmust be received at least five business days before the dateof the next regular investment. The regular investment plan isnot available for the HSBC U.S. Dollar Money Market Fund,HSBC Global Corporate Bond Fund, HSBC U.S. Dollar MonthlyIncome Fund, HSBC Global Equity Volatility Focused Fund orfor Funds purchased using the U.S. dollar purchase service.

You may not receive the most recently filed Fund Facts docu-ment in connection with a subsequent purchase of units of aFund made pursuant to a regular investment plan unless youspecifically request to receive the document. However, you can


13

obtain a copy of the most recently filed Fund Facts documentfor a Fund at your request, and at no cost, by calling 1-888-390-3333or by contacting your dealer. Fund Facts documents may alsobe found on our website at www.hsbc.ca/investment-resourcesand on the SEDAR website at www.sedar.com. You may nothave a statutory right to withdraw from a purchase of units ofa Fund made pursuant to a regular investment plan. However,you will continue to have all other statutory rights under secu-rities law, including a misrepresentation right (see the sectioncalled What are your legal rights?). As stated above, you havethe right to terminate your participation in a regular investmentplan at any time.

Monthly withdrawal plansIf you have an account with the Principal Distributor and youwant to make regular withdrawals from a Fund in your account,you can set up a monthly withdrawal plan through the Princi-pal Distributor.You must have at least $10,000 invested in Inves-tor Series or Manager Series units of a Fund, or $110,000 investedin Premium Series units of a Fund in your account before set-ting up a monthly withdrawal plan.The minimum regular with-drawal is $50 per Fund, and withdrawals are made from yourInvestor Series, Premium Series or Manager Series units ofthe applicable Fund on the 15th of each month. Further, to con-tinue to hold Premium Series units of a Fund, you must main-tain the minimum balance applicable to the Premium Seriesunits, even if you have a monthly withdrawal plan. If the amountof your withdrawals over time is higher than the growth of yourinvestments and any income they are earning, your invest-ment in the Funds will eventually be exhausted.There is no fee for participating in the monthly withdrawal plan.You can end your participation in the plan at any time by tellingthe Principal Distributor in writing or any other method of com-munication that may be accepted by the Principal Distributorfrom time to time, which must be received at least five busi-ness days before the date of the next regular withdrawal. Monthlywithdrawal plans are not available for the HSBC U.S. Dollar MoneyMarket Fund, HSBC Global Corporate Bond Fund, HSBC U.S. Dol-lar Monthly Income Fund, HSBC Global EquityVolatility FocusedFund or for Funds purchased using the U.S. dollar purchase ser-vice.

Automatic reinvestment of distributionsUnless otherwise instructed by you in writing, we will auto-matically reinvest your Fund distributions to purchase addi-tional units of the same series in that Fund. You pay no salescharge when these units are bought.If you would prefer to receive your Fund distributions in cashand you provide us, the Principal Distributor or your dealer withinstructions in writing or any other method of communicationthat may be accepted by us, the Principal Distributor or yourdealer from time to time, we will electronically deposit the amountof your monthly distributions into your bank account with HSBCBank Canada or with another financial institution. Cash distri-butions are not available for HSBC registered plans, the HSBCU.S. Dollar Money Market Fund, HSBC Global Corporate BondFund, HSBC U.S. Dollar Monthly Income Fund, HSBC GlobalEquity Volatility Focused Fund or for Funds purchased underthe U.S. dollar purchase service.

U.S. dollar purchase serviceThe U.S. dollar purchase service is a currency exchange ser-vice and is offered solely as a convenience for investors hold-ing U.S. dollars who wish to invest in certain of our Funds (aslisted below). We reserve the right to restrict through whomand for which Funds the service is available.The U.S. dollar pur-chase service may not be available if you buy units through ourPrincipal Distributor. Contact your dealer or advisor to confirmwhether this service is available to you.

The Investor Series, Advisor Series and Premium Series unitsof the following Funds are available for purchase using the U.S.dollar purchase service:

� HSBC Global Equity Fund

� HSBC U.S. Equity Fund

� HSBC European Fund

� HSBC AsiaPacific Fund

� HSBC Chinese Equity Fund

� HSBC Indian Equity Fund

� HSBC Emerging Markets Fund

� HSBC BRIC Equity Fund

The U.S. dollar purchase service is not available for units pur-chased through registered retirement income funds, regularinvestment plans or the mutual fund allocation service. If youchoose to use the U.S. dollar purchase service, you will receiveU.S. dollars when you sell units from your account. If you switchunits purchased in U.S. dollars, the units you acquire will beconsidered to have been purchased using the U.S. dollar pur-chase service, except for units of the HSBC U.S. Dollar MoneyMarket Fund, HSBC Global Corporate Bond Fund, HSBC U.S. Dol-lar Monthly Income Fund or HSBC Global EquityVolatility FocusedFund, which are denominated in U.S. dollars. See the sectioncalled How to switch units of the Funds.

When purchasing units of a Fund using the U.S. dollar pur-chase service, upon receipt, your U.S. dollars are converted toCanadian dollars by applying the Canadian-to-U.S.-dollar exchangerate on the valuation day your purchase is processed and yourunits of the Fund are then purchased in Canadian dollars.There-fore, upon redemption, the amount you receive in U.S. dollarswill be impacted by the currency movements of the Canadiandollar versus the U.S. dollar during the period you held the invest-ment. The U.S. dollar purchase service is not a hedge againstcurrency fluctuations between the Canadian dollar and the U.S. dol-lar.

You should be aware that short-term variability in exchange ratemovements can have a significant impact on your investmentreturns and you may find your returns expressed in U.S. dol-lars more volatile when the U.S. dollar purchase service is used.Fund returns expressed in U.S. dollars reflect the return of theFund as well as the effect of exchange rate movements betweenthe U.S. dollar and the Canadian dollar. Because currencies changein value against each other, it is possible that an unfavourablemovement in the exchange rate may reduce, or even elimi-nate, any increase in the value of an investment made in a dif-ferent currency. For example, if you purchase units of a Fund


14

using the U.S. dollar purchase service and then the Canadiandollar weakens against the U.S. dollar, the returns of that Fundexpressed in U.S. dollars will be lower than the equivalent Cana-dian dollar returns.

Mutual fund allocation serviceIf you open an account with the Principal Distributor, you mayparticipate in the mutual fund allocation service for InvestorSeries, Premium Series and Manager Series units, which pro-vides you with a steady, disciplined way of diversifying yourinvestments. Based on your investment goals and risk toler-ance, the Principal Distributor’s mutual fund representative willhelp you choose how much to transfer and which Funds to investin. The minimum regular transfer amount is $25 from units ofone Fund to units of other Fund(s).Transfers may be made weekly,bi-weekly, semi-monthly, monthly or quarterly. At regular inter-vals we will then transfer your investments from one Fund inyour account, called the foundation Fund, to one or more otherFunds in your account. For Premium Series units, you are stillrequired to meet the minimum investment requirements forthe foundation Fund and other Funds under the mutual fundallocation service.There is no fee for participating in the mutual fund allocationservice. You can end your participation in the service at anytime by telling the Principal Distributor in writing, or any othermethod of communication that may be accepted by the Prin-cipal Distributor from time to time. Your instructions must bereceived at least five business days before the date of the nextregular transfer.

Registered plansThe following types of registered plans are offered for inves-tors purchasing Investor Series, Premium Series or ManagerSeries units through the Principal Distributor:

� HSBC Mutual Funds Retirement Savings Plan (“RRSP”)

� HSBC Mutual Funds Retirement Income Fund (“RRIF”)

� HSBC Mutual Funds Education Savings (Family) Plan (“RESP”)

� HSBC Mutual Funds Tax-Free Savings Account (“TFSA”)

You may set up one of these plans through the Principal Dis-tributor’s mutual fund representative at HSBC Bank Canada.Once you have opened a registered plan with the Principal Dis-tributor, we will invest the money you send us based on yourinstructions. A RRIF set up through the Principal Distributorcannot hold the HSBC U.S. Dollar Money Market Fund, HSBCGlobal Corporate Bond Fund, HSBC U.S. Dollar Monthly IncomeFund, HSBC Global EquityVolatility Focused Fund or Funds pur-chased under the U.S. dollar purchase service. The PrincipalDistributor may charge a small administration fee for each reg-istered plan established with them. See the section calledFees and expenses for more information.

Please consult your dealer for the types of registered plansavailable through them.

For information on how investments in the Funds by regis-tered plans are treated under the IncomeTax Act (Canada), seethe section called Income tax considerations for investors.

Fees and expensesThe following table explains the fees and expenses that youwill pay when you invest in the Funds. Some of these fees andexpenses are paid directly by you and some are paid by theFunds. Investors should be aware that to the extent fees andexpenses are not offset by investment income and net real-ized gains, the payment of fees and expenses by the Fundswill reduce the value of your investment in the Funds.

Fees and expenses paid by the Funds1

Managementfees2

Each Fund pays a management fee to us for our services as manager.The management fee for each series of units of eachFund is set out below.

As manager of the Funds, we manage the overall business and affairs of the Funds and administer or arrange for theadministration of the day-to-day operations of the Funds. In this role, we provide or arrange to provide management andadministrative services for the Funds including: (i) investment management, including portfolio security selection andinvestment, negotiation and use of derivative instruments, execution of portfolio transactions including selection of market,dealer, broker or counterparty, negotiation of brokerage commissions and appointment of investment advisors;(ii) determination of Fund investment programs, restrictions and policies and statistical and research services related to theFund portfolios; (iii) investment management oversight; (iv) proxy voting in respect of Fund portfolio securities; (v) alladministrative and other service and facilities required by the Funds in relation to its unitholders, including the preparation andholding of Fund meetings, the determination of net income and net capital gains of the Funds to facilitate distributions andother services for the provision of information to unitholders; (vi) office accommodation, facilities and personnel, telephone andother communication services, office supplies, banking, and internal accounting and audit services; (vii) co-ordination andsupervision of Fund service providers; and (viii) approval of Fund expenses and monitoring of Fund agreements.The costs ofproviding certain of these services are regarded as operating expenses of the Funds and are paid by the Funds in addition to themanagement fee paid by the Funds to us. For further information, see below under Operating expenses. The remainingexpenses relating to management services provided by us to the Funds are paid by us from the management fee we receivefrom the Funds.

InvestorSeries

AdvisorSeries

ManagerSeries4

PremiumSeries

HSBC Canadian Money Market Fund 0.85% 0.85% 0.60% 0.35%

HSBC U.S. Dollar Money Market Fund3 1.00% 1.00% 0.75% 0.40%


15

Fees and expenses paid by the Funds1 (continued)

InvestorSeries

AdvisorSeries

ManagerSeries4

PremiumSeries

HSBC Mortgage Fund 1.35% 1.35% 0.85% 0.85%

HSBC Canadian Bond Fund1 1.00% 1.00% 0.50% 0.75%

HSBC Global Corporate Bond Fund3 1.50% 1.50% 1.00% 1.20%

HSBC Emerging Markets Debt Fund 1.50% 1.50% 1.00% 1.20%

HSBC Monthly Income Fund1 1.25% 1.25% 0.75% 0.75%

HSBC U.S. Dollar Monthly Income Fund3 1.55% 1.55% 1.05% 1.25%

HSBC Canadian Balanced Fund1 1.75% 1.75% 0.75% 1.25%

HSBC Dividend Fund1 1.75% 1.75% 0.75% 1.25%

HSBC Equity Fund 1.75% 1.75% 0.75% 1.25%

HSBC Small Cap Growth Fund 2.00% 2.00% 1.00% 1.50%

HSBC Global Equity Fund 1.25% 1.25% 0.75% 0.95%

HSBC Global Equity Volatility Focused Fund3 2.00% 2.00% 1.00% 1.50%

HSBC U.S. Equity Fund 2.00% 2.00% 1.00% 1.50%

HSBC European Fund 2.00% 2.00% 1.00% 1.50%

HSBC AsiaPacific Fund 2.00% 2.00% 1.00% 1.50%

HSBC Chinese Equity Fund 2.25% 2.25% 1.25% 1.75%

HSBC Indian Equity Fund 2.25% 2.25% 1.25% 1.75%

HSBC Emerging Markets Fund 2.25% 2.25% 1.25% 1.75%

HSBC BRIC Equity Fund 2.25% 2.25% 1.25% 1.75%

HSBC World Selection Diversified Conservative Fund1 1.40% 1.40% 0.50% —

HSBC World Selection Diversified Moderate Conservative Fund1 1.40% 1.40% 0.50% —

HSBC World Selection Diversified Balanced Fund1 1.55% 1.55% 0.75% —

HSBC World Selection Diversified Growth Fund1 1.75% 1.75% 1.00% —

HSBC World Selection Diversified Aggressive Growth Fund1 1.75% 1.75% 1.00% —

In some cases, we may waive our right to receive a portion of the management fees payable by a Fund. For example, we may waive certain fees payable by a new Funduntil it has accumulated sufficient assets to fully implement its investment strategies, but we are not obligated to do so.The amount of any fees waived is at our discretionand notice will not be provided to unitholders if any fees are waived.We may effectively reduce the management fees borne by investors who have invested large amounts in the Funds.The availability and amount of the reduction will benegotiated between the investor and the Principal Distributor, and will be based on such factors as the total size of the investment, our overall relationship with theinvestor and the total package of services provided to the investor by the HSBC Group. For further details, see the section called Fees and expenses in the Funds’ AnnualInformation Form.Management fees are subject to applicable taxes.5Unitholders will be provided with written notice of any increase to these fees at least 60 days before the increase becomes effective.

Operatingexpenses

The Funds are responsible for all costs and expenses related to their operation and administration, which include:� fees payable to provincial securities commissions in connection with the operation of the Funds;� Independent Review Committee compensation and expenses;� audit and legal fees;� brokerage fees on transactions for the Funds’ portfolios;


16

Fees and expenses paid by the Funds1 (continued)

� costs of entering into forward agreements and other derivatives transactions;� costs for the preparation, production and distribution of financial and other reports, including semi-annual and annual

reports, statements, communications to unitholders and other regularly required documents;� costs for the preparation, production and distribution of this Simplified Prospectus, the Annual Information Form, the Fund

Facts and other regulatory documents;� expenditures related to technology required to operate the Funds;� custody, investor servicing, record keeping, accounting/trustee fees and bank charges;� costs of compliance with applicable securities legislation in connection with the operation of the Funds; and� applicable taxes.5

Common operating expenses of a Fund will be allocated among each series on a pro rata basis relative to the net asset value ofthe series. Where an operating expense is specifically attributable to a particular series, the expense will be charged to thatseries. However, if the assets attributable to a particular series are insufficient to pay an expense, the expense will be chargedto the remaining series of the Fund. Please refer to the section called Multiple series unit risk.

These costs and expenses are paid either directly by the Funds or by us, as manager of the Funds. We are reimbursed by theFunds for all reasonable operation and administration costs and expenses paid by us.

We may absorb certain operating expenses of the Funds from time to time in our discretion. However, we are under noobligation to do so.

The HSBC Mortgage Fund is charged an annual mortgage administration fee (the “Mortgage Administration Fee”) payable toHSBC Bank Canada for the administration of the mortgages purchased by the HSBC Mortgage Fund.The MortgageAdministration Fee is equal to 0.10% of the value of the mortgages purchased by the HSBC Mortgage Fund from HSBC BankCanada.The Mortgage Administration Fee will be allocated among each series of the HSBC Mortgage Fund on a pro rata basisrelative to the net asset value of the series.The Mortgage Administration Fee will be paid either directly by the HSBC MortgageFund or by us, as manager of the HSBC Mortgage Fund. We are reimbursed by the HSBC Mortgage Fund for any portion of theMortgage Administration Fee paid by us.

As noted above, the operating expenses of the Funds include the compensation and expenses payable to members of theIndependent Review Committee.The fees and expenses payable in connection with the Independent Review Committee, andcharged to the Funds and the HSBC Pooled Funds, include compensation paid to members of the Independent ReviewCommittee in the form of an annual retainer for each member, a separate annual retainer for the Chair, travel expenses,insurance premiums and fees associated with their continuing education, and other costs and expenses reasonably associatedwith the Independent Review Committee. During the financial year ended December 31, 2016, the aggregate compensationpaid to members of the Independent Review Committee was $138,354.67.The Chair of the IRC was paid $47,668.00 and eachof the other three members were paid $17,238.87, $32,810.30 and $39,000.00 respectively. Each member of the IndependentReview Committee was also reimbursed for expenses in connection with performing his or her duties in this regard.

We will provide unitholders with at least 60 days’ prior written notice if the basis of calculation of a fee or expense imposed by aperson or company at arm’s length to the investment fund, charged to a Fund or directly to unitholders by a Fund or us inconnection with the holding of units of the Fund is changed in a way that could result in an increase in charges to the Fund or tounitholders. In addition, we will provide you with this prior written notice before we introduce a fee or expense imposed by aperson or company at arm’s length to the investment fund, to be charged to a Fund or directly to unitholders by a Fund or us inconnection with the holding of units of the Fund, if it could result in an increase in charges to the Fund or to unitholders.However, we will not provide you with this prior written notice if we have obtained unitholder approval for the proposed new orchanged fee or expense.

Fees and expenses paid directly by you

Sales charges For Advisor Series units purchased under the sales charge option, there is a sales charge of up to 5% of the purchase price asnegotiated between you and your dealer.There are no sales charges payable on the purchase of Investor Series, PremiumSeries, Manager Series and Institutional Series units. However, for the Manager Series units, investors will be required to paytheir dealer an advisory or asset-based fee, which may be negotiable with your dealer, in addition to the Manager Seriesmanagement fee.

Redemptionfees

There are no redemption fees payable in connection with the redemption of units of the Funds. We may charge a short-termtrading fee in certain circumstances. See the section called Short-term trading.

Switch fees Except as noted below under Short-term trading fees, no fees are payable to us when you switch units of one series of a Fundfor units of the same series of another Fund or between different series of the same Fund. However, you may have to pay yourdealer a switch fee of up to 2% of the value of the units you purchase when you switch units between different Funds, or if youswitch units between different series of the same Fund, with the exception of the HSBC World Selection Diversified Funds.Thisfee is negotiated between you and your dealer and is paid directly by you to your dealer. See the sections called How to switchunits of the Funds and Short-term trading.

Short-termtrading fees

We reserve the right to charge a short-term trading fee of up to 2% of the value of the units if you switch or sell your unitswithin 30 days of the date of your most recent purchase of those units, with the exception of the HSBC Canadian MoneyMarket Fund and the HSBC U.S. Dollar Money Market Fund.This fee is retained by the applicable Fund. See the section calledShort-term trading.


17

Fees and expenses paid directly by you (continued)

Registered taxplan fees

The Principal Distributor may charge you $15, plus applicable taxes5, per year to cover the annual administration costs for eachRRSP, RRIF, RESP andTFSA established with them.This will be charged each year in two instalments on the last business daysof June and December, with each payment in the amount of $7.50 plus applicable taxes.The Principal Distributor collects thesepayments by redeeming sufficient units of the Fund with the highest market value in your registered plan.A fee of $40, plus applicable taxes5, is charged by the Principal Distributor if you transfer your RRSP that was opened with themafter November 1, 1997, to another financial institution.A fee of $25, plus applicable taxes5, is charged by the Principal Distributor if you transfer your RRIF orTFSA to another financialinstitution.The Principal Distributor collects these fees and expenses from you by subtracting the amount of the fee or expense from thetotal proceeds from the redemption of your units.These fees are charged for each registered plan, not for each Fund, and maybe waived by the Principal Distributor.If you have a registered plan with another authorized dealer, please consult with them for any registered tax plan fees.

1 The Funds may invest in units of other mutual funds and exchange-traded funds including Affiliated Funds. You should note that in addition tothe fees and expenses paid by the Funds, these other funds have their own operating expenses to pay. The Funds will effectively bear the oper-ating expenses of the other funds in proportion to their holdings in the other funds. However, the Funds will not invest in units of other funds ifthe Funds would be required to pay any management fees in respect of such investments that to a reasonable person, would duplicate a feepayable to us by the Funds for the same service. In addition, the Funds will not make investments in other funds if the Funds would be requiredto pay any sales or redemption fees in respect of such investments that a reasonable person would find to duplicate a fee payable byunitholders of the Funds. Further, the Funds will not invest in units of Affiliated Funds if any sales or redemption fees are payable in respect ofsuch investments.

2 Calculated as an annual percentage of the Fund’s average daily net asset value. If you qualify to purchase Institutional Series units, the manage-ment fee for the Institutional Series units is negotiable between either us or the Principal Distributor and you. However, this fee will not exceedthe fee for Investor Series units.

3 Some fees, expenses or charges payable in relation to the HSBC U.S. Dollar Money Market Fund, HSBC Global Corporate Bond Fund, HSBCU.S. Dollar Monthly Income Fund, HSBC Global Equity Volatility Focused Fund or units purchased under the U.S. dollar purchase service may bein U.S. dollars. For information on the U.S. dollar purchase service, see the section called Optional services – U.S. dollar purchase service.

4 We are able to reduce our management fee rate on the Manager Series units because our costs associated with this series are lower than withother series, as we pay no distribution or trailing commissions in respect of sales of Manager Series units.

5 Goods and Services Tax, Harmonized Sales Tax, Quebec Sales Tax or similar value-added or sales tax. These taxes are not included in thefees disclosed.

Impact of sales chargesThe following table shows the fees that you would have to payyour dealer if you made an investment of $1,000 in AdvisorSeries units of a Fund, and if you held that investment for one,three, five or ten calendar years, and redeemed it immediatelybefore the end of that calendar year. We assumed that youpaid the maximum sales charge of 5%, although you may nego-tiate a lower charge with your dealer.

Advisor Seriesunits

At time ofpurchase 1 year 3 years 5 years 10 years

Sales charge option $50.00 $0 $0 $0 $0

You pay no sales charges or commissions when you buy orredeem Investor Series, Premium Series, Manager Series orInstitutional Series units of a Fund.

Dealer compensationWe pay the Principal Distributor a fee in connection with thesale of units of the Funds, as set between us and the PrincipalDistributor from time to time. This fee is paid by us out of themanagement fee we receive from the Funds.

The Principal Distributor pays HSBC Bank Canada a monthlyservice fee in exchange for allowing the Principal Distributor’ssales representatives to sell the Funds in its branches, and for

providing certain administrative services. These service feesare not paid by you or the Funds.We pay fees to other dealers who sell units of the Funds. Thefees, also called trailer fees, are generally calculated as a per-centage of net asset value of the number of units held by adealer’s clients, or by a dealer on behalf of their clients. Themaximum fees for the different Funds are listed under the head-ing Trailer fees.

Sales commissionsThere are no sales commissions paid by us or you in connec-tion with the purchase of Investor Series, Premium Series, Man-ager Series or Institutional Series units.If you buy Advisor Series units under the sales charge option,you pay your dealer a sales commission at the time of pur-chase. The maximum amount of the commission is 5% of theamount you invest. The sales commission is negotiable withyour dealer.

Trailer feesIf you purchase units through a dealer (other than the PrincipalDistributor), we pay trailer fees to your dealer for providing youwith ongoing service. We also pay trailer fees to discount bro-kers where you purchase units of the Funds through a dis-count brokerage account. The trailer fees are generally calcu-


18

lated as a percentage of net asset value each day for the numberof Investor Series, Premium Series or Advisor Series units heldby a dealer’s clients, or by a dealer on behalf of their clients.No trailer fees are payable with regard to Manager Series orInstitutional Series units.The maximum trailer fees up to whichwe may pay for the different Funds are listed below.These trailerfees are paid by us out of the management fee we receivefrom the Funds.

Maximum trailer fee

Investor Series &Advisor Series

PremiumSeries

HSBC Canadian Money Market Fund 0.25% 0.15%

HSBC U.S. Dollar Money Market Fund 0.25% 0.15%

HSBC Mortgage Fund 0.50% 0.25%

HSBC Canadian Bond Fund 0.50% 0.25%

HSBC Global Corporate Bond Fund 0.50% 0.25%

HSBC Emerging Markets Debt Fund 0.50% 0.25%

HSBC Monthly Income Fund 0.50% 0.25%

HSBC U.S. Dollar Monthly Income Fund 0.50% 0.25%

HSBC Canadian Balanced Fund 0.85% 0.50%

HSBC Dividend Fund 0.85% 0.50%

HSBC Equity Fund 0.85% 0.50%

HSBC Small Cap Growth Fund 1.00% 0.75%

HSBC Global Equity Fund 0.50% 0.25%

HSBC Global Equity Volatility Focused Fund 1.00% 0.75%

HSBC U.S. Equity Fund 1.00% 0.75%

HSBC European Fund 1.00% 0.75%

HSBC AsiaPacific Fund 1.00% 0.75%

HSBC Chinese Equity Fund 1.00% 0.75%

HSBC Indian Equity Fund 1.00% 0.75%

HSBC Emerging Markets Fund 1.00% 0.75%

HSBC BRIC Equity Fund 1.00% 0.75%

HSBC World Selection DiversifiedConservative Fund 0.70% —

HSBC World Selection Diversified ModerateConservative Fund 0.70% —

HSBC World Selection DiversifiedBalanced Fund 0.75% —

HSBC World Selection DiversifiedGrowth Fund 0.85% —

HSBC World Selection Diversified AggressiveGrowth Fund 0.85% —

Other forms of dealer supportWe pay for marketing materials such as reports and commen-taries on the markets, the Funds and the services we offerinvestors. We may also share with dealers up to 50% of theircosts in marketing the Funds, such as advertising the availabil-ity of the Funds through their financial advisors. We may alsopay a portion of the costs of a dealer hosting a seminar to informyou about the Funds or about the overall benefits of investingin mutual funds.We may also pay up to 10% of the costs of dealers holdingeducational seminars or conferences for their financial advi-sors.We arrange seminars for financial advisors where we informthem about new developments in the Funds, our products and

services, and mutual fund industry matters. We invite dealersto send their financial advisors to our seminars and we do notdecide who attends.The financial advisors must pay their owntravel, accommodation and personal expenses associated withattending our seminars.

Dealer compensation frommanagement feesDuring 2016, 46.40% of the management fees collected fromthe Funds were used to fund commissions, trailer fees andother promotional activities.

Income tax considerations for investorsThe summary below is general in nature and only applies if youare an individual resident in Canada (other than a trust) dealingwith the Funds at arm’s length and holding your units in theFunds as capital property or through a registered plan.We encour-age you to consult with a qualified tax advisor before investingas each individual tax situation is different. Further informationon income tax considerations can be found in the Annual Infor-mation Form for the Funds.Each of the Funds will generally distribute enough net incomeand net realized capital gains to its unitholders each year toensure that the Fund itself does not pay any Canadian income tax.As an investor in the Funds, you should understand the pos-sible income tax consequences of:� income and capital gains distributions paid to you in cash

or additional Fund units;� capital gains or losses that occur when you switch or sell

units of the Funds; and� distributions out of capital, also called return of capital.These items are explained below. The income tax conse-quences will differ depending on whether your units are heldin a registered or non-registered plan.

Funds held in a registered planIf you are holding units of the Funds in a registered plan, suchas an RRSP, RRIF, RESP, registered disability savings plan (“RDSP”)orTFSA, generally, you will not have to pay taxes on the incomeand capital gain distributions from the Funds, or the capital gainsrealized from switching or selling units of the Funds. Generally,you will pay income tax at your marginal tax rate on the fullamount of your withdrawal from RRSPs or RRIFs. Withdraw-als from TFSAs are not subject to tax. Withdrawals and pay-ments from RESPs and RDSPs are subject to special rules.You should consult with your own tax advisor as to whetherunits would be a prohibited investment if held in your RRSP,RRIF, TFSA, RDSP or RESP. See the Annual Information Formfor the Funds for further information.

Funds held outside a registered planIncome and capital gain distributions (including managementfee distributions), whether you receive them in cash or as addi-tional Fund units, and capital gains realized from selling unitsor switching units between Funds, are taxable if your units areheld outside a registered plan.


19

If you buy units of a Fund just before the Fund’s distributiondate, you will have to pay tax on all income and capital gainsdistributions you receive in cash or as additional units even thoughthe Fund earned the money before you owned the units. Forinvestments in some of the Funds, this may have a significantimpact if units are purchased late in the year.If your distributions exceed your share of a Fund’s income andcapital gains, the amount of the excess will be treated as areturn of capital. Returns of capital are not taxable to the unitholder,but will reduce the adjusted cost base of your units. To theextent that the adjusted cost base of your units is negative,you will be deemed to realize a capital gain and your adjustedcost base will be increased by the amount of the deemed gainto nil.Distributions reinvested in additional units will affect the adjustedcost base of your units in that Fund, which is used to deter-mine whether you have realized a capital gain or loss on thesale or switch of units between Funds.The aggregate adjusted cost base of your units of a Fund atany point in time is calculated as:� the total amount you have paid for your units of the Fund, plus� any distributions you have received in the form of addi-

tional units of the Fund, minus� any return of capital received from the Fund, minus� the adjusted cost base of any units of the Fund you have

sold or switched to another Fund in the past.Your adjusted cost base per unit of a Fund is determined asthe aggregate adjusted cost base of your units of the Funddivided by the number of units of the Fund that you own.If the money you receive when you switch or sell your units inthe Fund (less any costs associated with the sale) is greaterthan the adjusted cost base for those units, the difference is acapital gain. If the money you receive (less any costs associ-ated with the sale) is less than the adjusted cost base, the dif-ference is a capital loss.Capital gains and losses must be computed in Canadian dol-lars. Generally, you will have to include one-half of your capitalgains in computing taxable income. One-half of your capitallosses are allowable capital losses that may be used to offsetyour taxable gains, subject to additional rules.When you sell units of the HSBC U.S. Dollar Money MarketFund, HSBC Global Corporate Bond Fund, HSBC U.S. DollarMonthly Income Fund, HSBC Global Equity Volatility FocusedFund, or units of Funds purchased under the U.S. dollar pur-chase service, you may realize a foreign exchange gain or lossfor tax purposes as a result of a change in the value of the U.S.dollar during the period you held the units.Switching units of one series of a Fund into units of anotherseries of the same Fund will not result in a capital gain or loss.We will send you an information slip each year reporting thedistributions paid to you from each Fund.This will include inter-est income and dividends from taxable Canadian corporations,foreign income, capital gains and returns of capital distributedto you in that year, if any, which will help you complete yourincome tax return.

You should keep your own records of the costs of your invest-ments so that any gains or losses generated when you switchor sell your units can be accurately calculated.

Other considerationsPortfolio turnover rate can have an effect on the income taxyou pay. A high portfolio turnover rate means the investmentadvisor frequently buys and sells the Fund’s underlying invest-ments. Because capital gains or losses are generated when aninvestment is sold, an increased level of buying and selling couldlead to increased capital gains distributions for investors in the Fund.

Tax information reportingPursuant to the Intergovernmental Agreement for the EnhancedExchange of Tax Information under the Canada-United StatesTax Convention entered into between Canada and the U.S. onFebruary 5, 2014 (the “IGA”), and related Canadian legislation,the Funds and/or we may be required to report to the CanadaRevenue Agency (“CRA”) certain information with respect tounitholders who are U.S. residents or U.S. citizens. Under theIGA, Canada and the U.S. have agreed to exchange reportableaccount information on an annual basis. Furthermore, the OECDCommon Reporting Standard (“CRS”) will be implemented start-ing July 1, 2017, under Canadian legislation. The CRS legisla-tion requires financial institutions in Canada to report accountinformation to the CRA relating to reportable accounts held bytax residents of countries outside Canada and the U.S.

Tax information for citizens and residentsof countries outside of CanadaIf you are also a citizen or resident of a country other than Canada,we strongly advise you to contact your tax advisor before invest-ing in the Funds, including within a Canadian registered plan,and on a regular basis thereafter. It is important that you areaware of the foreign tax consequences, including foreign taxreporting and filing requirements, that may be associated withbeing an owner of units of the Funds held in or outside of aCanadian registered plan. Failure to comply with any such require-ments can result in significant penalties.

What are your legal rights?Securities legislation in some provinces gives you the right towithdraw from an agreement to buy units of the Funds withintwo business days of receiving this Simplified Prospectus orthe Fund Facts, or to cancel your purchase within 48 hours ofreceiving confirmation of your order.This may not apply to youif you purchase the Funds through a discretionary service.Securities legislation in some provinces also allows you to can-cel an agreement to buy units of a Fund and get your moneyback, or to make a claim for damages, if this Simplified Pro-spectus, the Annual Information Form, the Fund Facts or thefinancial statements for the Fund misrepresent facts about theFund. These rights must usually be exercised within certaintime limits.For more information, refer to the securities legislation of yourprovince or consult your lawyer.

Information regarding transactions withmembers of the HSBC Group or otherrelated partiesIn the course of providing services to you, there will be situa-tions where a conflict arises between our interests and yours.


20

We believe it is important that you are fully informed regardingthese conflicts. Canadian securities laws require us to take rea-sonable steps to identify and respond to existing and potentialmaterial conflicts of interest, and in certain circumstances, toprovide you with certain information regarding these conflictsand also to obtain your prior consent before we engage in cer-tain types of transactions.The following section contains impor-tant information regarding certain of the conflicts of interestthat we have identified. Please read it carefully.

Transactions or arrangements with certainrelated partiesWe are a member of a group of related companies known asthe HSBC Group. In the course of providing services to you,we may from time to time advise you or exercise discretion onyour behalf with respect to the purchase or sale of securitiesfrom or to, or issued by, other members of the HSBC Group orother persons or companies that are related or connected tous. In addition, in the course of providing services to you or inour role as manager and trustee of mutual funds managed oradministered by us that you hold an investment in, we mayalso enter into transactions or arrangements with or involving,and perform services for or accept services from, other mem-bers of the HSBC Group or other persons or companies thatare related or connected to us. Further, in our role as portfolioadvisor of mutual funds managed by us that you hold an invest-ment in, we may, in certain circumstances, purchase securi-ties offered in a distribution in respect of which a member ofthe HSBC Group acts as an underwriter. These transactionsand arrangements are described in further detail below.Thesetransactions and arrangements will give rise to conflicts of inter-est, and we have adopted policies and procedures to identifyand respond to these conflicts. We will only enter into thesetransactions or arrangements where they are permitted underapplicable securities laws or pursuant to exemptive relief grantedby securities regulators, and where we believe they are in your(or the Funds’) best interests in the applicable circumstances.

The following is a list of the types of these transactions andarrangements and our relationship to the parties involved:

� The purchase or sale of securities, derivative instrumentsor other instruments issued or guaranteed by HSBC Hold-ings plc, HSBC Bank plc, Hang Seng Bank Limited, HSBCBank Canada, HSBC Canada Asset Trust, HSBC FinancialCorporation Limited and other members of the HSBC Groupwhose securities are traded on recognized stock exchangesor other public markets or other securities of these or otherrelated entities that are not traded on an exchange or otherpublic market.These entities are related to us because theyare members of the HSBC Group. For example, these trans-actions may include the purchase or sale of ordinary sharesof HSBC Holdings plc, preferred shares of HSBC Bank Canadaor other securities of these or other related entities thatare traded on a stock exchange or other public market, andalso the purchase and sale of principal protected notes orcertain debt securities issued by HSBC Bank Canada.

� The purchase, sale or redemption of securities issued by

any of the HSBC Mutual Funds, the HSBC Pooled Fundsand any other mutual fund, unit trust, exchange-traded fundor investment fund managed, administered or promotedby us or other members of the HSBC Group, or for whichwe or other members of the HSBC Group act as portfolioadvisor, including funds managed, advised or promoted byour affiliates. In most cases, our connection to these fundswill be obvious to you because the names of the funds willbe sufficiently similar to our name. For example, in mostcases the names of the funds will include the word “HSBC”as part of their name. If we believe that the name of anyfund is not similar enough to convey the fund’s relationshipto us, we will provide you with specific disclosure regard-ing that relationship at the appropriate time.

� The purchase or sale of securities, derivative instruments,foreign exchange contracts or other instruments to or fromHSBC Securities (Canada) Inc., HSBC Bank Canada, HSBCBank plc, HSBC Securities (USA) Inc., HSBC Securities(Asia) Limited, The Hongkong and Shanghai Banking Cor-poration Limited, HSBC Broking Services (Asia) Limited andother members of the HSBC Group for their own respec-tive accounts, or through these entities acting as a broker,dealer, executing and/or clearing broker, or distributor or ina similar capacity, provided that such transactions are madeon terms and conditions comparable to those offered by orto unrelated parties. Where we or one of our sub-advisorspurchase or sell securities, derivative instruments, foreignexchange contracts or other instruments, or conduct spotforeign exchange or other portfolio transactions, throughthese entities in their capacity as broker, dealer, executingand/or clearing broker, or distributor or in a similar capacity,they may receive a fee for their services in that capacity.Fees paid to related parties will be paid pursuant to a con-tract between the applicable parties. HSBC Securities(Canada) Inc. is an investment dealer. HSBC Bank Canadais a Schedule II chartered Canadian bank. HSBC Bank plc isa clearing bank based in the United Kingdom. HSBC Secu-rities (USA) Inc. is a broker dealer based in NewYork. HSBCSecurities (Asia) Limited is a broker based in Hong Kong.The Hongkong and Shanghai Banking Corporation Limitedis a licensed bank incorporated in Hong Kong. HSBC BrokingServices (Asia) Limited is a broker dealer based in HongKong.We and HSBC Securities (Canada) Inc. are wholly ownedsubsidiaries of HSBC Bank Canada.We and all of the HSBCentities listed in this paragraph are (direct or indirect) sub-sidiaries of HSBC Holdings plc and members of theHSBC Group.

� The purchase, on behalf of a Fund, of a class of securitiesduring, or for the 60-day period following, a distribution ofthe class of securities in respect of which HSBC Bank Canada,HSBC Securities (Canada) Inc., HSBC Securities (USA) Inc.or another member of the HSBC Group acts as an under-writer. Such investments will only be made where permit-ted by applicable securities laws or exemptive relief grantedby securities regulators.

� Transactions or arrangements with members of the HSBCGroup that involve the other members of the HSBC Group


21

providing services to you or to us on your behalf or to fundsmanaged or administered by us or to us on behalf of suchfunds, and/or receiving a fee. For example, we may retainother members of the HSBC Group to act as our sub-advisor with respect to the Funds or discretionary accountsmanaged by us, including our affiliates, or to act as custo-dian or trustee to the HSBC Mutual Funds, HSBC PooledFunds or any other mutual fund, unit trust or investment

fund managed, administered or promoted by us or othermembers of the HSBC Group. Fees paid to related partieswill be paid pursuant to a contract between the appli-cable parties.

The information disclosed in this section may change from timeto time.


22

THIS PART of the Simplified Prospectus gives you detailed information about each of our

Funds. It explains the features of each Fund, such as its investment objectives and

strategies. Some information is common to all Funds and we have provided this

information below, rather than repeat it in each Fund description.

Selection of underlying funds for the

HSBC World Selection Diversified FundsEach HSBC World Selection Diversified Fund invests primarilyin other mutual funds managed by us. We have the discretionto allocate assets among the underlying funds within the stra-tegic asset mix of the applicable HSBC World Selection Diver-sified Fund. We will monitor and assess the performance ofthe underlying funds on an ongoing basis.We may add, removeor vary an investment in any underlying fund at our discretion,at any time.

Selection of sub-advisorsAs the primary investment advisor for the Funds, we are respon-sible for providing investment advice and portfolio manage-ment services to the Funds. We may hire sub-advisors, includ-ing sub-advisors that are affiliated with us, to provide investmentadvice and portfolio management services to the Funds. Eachselected sub-advisor will have the discretion to purchase andsell portfolio securities for the Fund or the portion of the Fundthey manage. Each sub-advisor will also operate within eachFund’s investment objectives, restrictions and policies, and anyother constraints we may impose. We or our sub-advisors act-ing on our behalf, will have the discretion to allocate assetsbetween sub-advisors within a given Fund.We will monitor andassess the performance of sub-advisors on an ongoing basis,and we may hire or replace sub-advisors at any time.

The sub-advisors for the Funds as of the date of this SimplifiedProspectus are described in the section for each Fund calledFund details. If you would like a list of current sub-advisors, call1-888-390-3333, or email us [email protected].

Securities lending transactions,

repurchase transactions and reverse

repurchase transactionsA securities lending transaction involves a Fund lending port-folio securities that it owns to a creditworthy institutional bor-rower. The borrower promises to return to the Fund, at a laterdate, an equal quantity of the same securities and to pay a feeto the Fund for borrowing the securities. The Fund may recallthe securities at any time.The borrower provides the Fund with

collateral consisting of cash and/or securities or other non-cash collateral equal to no less than 102% of the market valueof the loaned securities, measured each business day. As aresult, the Fund retains income from and exposure to changesin the value of the securities loaned while earning addi-tional income.

A repurchase transaction involves a Fund selling portfolio secu-rities that it owns to a creditworthy institution for cash and simul-taneously agreeing to buy back the same securities at a higherprice, at a later date, not to exceed 30 days. The differencebetween the higher price and the original price is like the inter-est payment on a loan. The amount of cash received by theFund for the transaction is at least 102% of the market valueof the sold securities, measured each business day. The Fundretains its income from and exposure to changes in the valueof the sold securities.The basic purpose of a repurchase trans-action is to provide a Fund with short-term cash that it can useto generate additional income for the Fund.

Insecurities lendingand repurchase transactions, theFund receivesany interest or dividends paid by the issuer of the securitieswhile those securities are held by the other party to the trans-action.

A reverse repurchase transaction involves a Fund purchasingportfolio securities from a creditworthy institution and simul-taneously agreeing to sell the same securities back to the insti-tution, at a higher price, at a later date, not to exceed 30 days.The difference between the Fund’s purchase price for the secu-rities and the resale price provides the Fund with additionalincome.The basic purpose of a reverse repurchase transactionis to provide a Fund with a short-term investment for cash heldby the Fund.

A Fund will not enter into a securities lending transaction or arepurchase transaction if, immediately thereafter, the aggre-gate market value of all securities loaned by the Fund and notyet returned to it or sold by the Fund in repurchase transac-tions and not yet repurchased would exceed 50% of the netasset value of the Fund (exclusive of collateral held by the Fundfor securities lending transactions and cash held by the Fundfor repurchase transactions) or such other limit as may be imposedunder applicable securities legislation.

Repurchase and reverse repurchase transactions are con-ducted through creditworthy institutions acting as agent, andsecurities lending transactions are conducted through an orga-

Specific information about each of theHSBC Mutual Funds described in this document

23

nized market for such transactions that has mandatory con-trols in place to minimize the risks of default. However, thereare still certain risks associated with these types of transac-tions as described in Securities lending, repurchase and reverserepurchase transaction risk in the section called What are therisks of investing in mutual funds?

Derivatives transactionsCertain of the Funds may use derivatives such as, but not lim-ited to:

� futures or forward contracts – these are agreements madetoday to buy or sell a particular currency, security or marketindex on a specific day in the future at a specified price;

� option contracts – these are agreements that give the buyerthe right, but not the obligation, to buy or sell certain secu-rities within a certain time period, at a specified price; and

� covered calls – a strategy where an investor sells or writescall options against securities it already owns.

See the section called What are the risks of investing in mutualfunds? for a description of the risks associated with deriva-tives.

The use of derivatives transactions is described for each Fundin Investment strategies in the section called What does theFund invest in? We have obtained exemptive relief that per-mits each of the Funds to engage in the derivatives transac-tions outlined below. Under the terms of this relief, the Fundsare permitted to engage in the following derivatives transac-tions on certain conditions:

1. To use as cover when a Fund has a long position in a debt-like security that has a component that is a long positionin a forward contract, or in a standardized future or for-ward contract:

(a) cash cover in an amount that, together with marginon account for the specified derivative and the mar-ket value of the specified derivative, is not less than,on a daily mark-to-market basis, the underlying mar-ket exposure of the specified derivative;

(b) a right or obligation to sell an equivalent quantity ofthe underlying interest of the future or forward con-tract, and cash cover that together with margin onaccount for the position, is not less than the amount,if any, by which the strike price of the future or for-ward contract exceeds the strike price of the rightor obligation to sell the underlying interest; or

(c) a combination of the positions referred to in para-graphs (a) and (b) immediately above that is suffi-cient, without recourse to other assets of the Fund,to enable a Fund to acquire the underlying interestof the future or forward contract.

2. To use as cover, when a Fund has a right to receive pay-ments under a swap:

(a) cash cover, in an amount that, together with marginon account for the swap and the market value of theswap, is not less than, on a daily mark-to-market basis,the underlying market exposure of the swap;

(b) a right or obligation to enter into an offsetting swapon an equivalent quantity and with an equivalent termand cash cover that, together with margin on accountfor the position, is not less than the aggregate amount,if any, of the obligations of the Fund under the swapless the obligations of the Fund under such offset-ting swap; or

(c) a combination of the positions referred to in para-graphs (a) and (b) immediately above that is suffi-cient, without recourse to other assets of the Fund,to enable the Fund to satisfy its obligations underthe swap.

The exemptions described in 1 and 2 above are subject to thecondition that a Fund will not (i) purchase a debt-like securitythat has an option component or an option, or (ii) purchase orwrite an option to cover any positions under section 2.8(1)(b),(c), (d), (e) and (f) of National Instrument 81-102 InvestmentFunds (“NI 81-102”), if immediately after the purchase or writ-ing of such option, more than 10% of the net assets of theFund, taken at market value at the time of the transaction, wouldbe in the form of (1) purchased debt-like securities that havean option component or purchased options, in each case, heldby the Fund for purposes other than hedging, or (2) optionsused to cover any positions under section 2.8(1)(b), (c), (d), (e) and(f) of NI 81-102.

Short selling

A short sale involves borrowing securities from a lender thatare then sold in the open market (or “sold short”). At a laterdate, the same number of securities are repurchased by a fundand returned to the lender. In the interim, the proceeds fromthe first sale are deposited with the lender (or its agent) andinterest is paid to the lender. If the value of the securities declinesbetween the time that the securities are borrowed and the timeit repurchases and returns the securities, a profit will be madeequal to the difference (less any interest cost). In this way, thereare more opportunities for gains when markets are generallyvolatile or declining.

The Funds are permitted to sell securities short and to providea security interest over Fund assets with dealers as security inconnection with such transactions, subject to compliance withNI 81-102. See the section called What are the risks of invest-ing in mutual funds? for a description of the risks associatedwith short selling.

Specific information about each of theHSBC Mutual Funds described in this document (continued)

24

Purchase of private placement securitiesIn addition, we have received exemptive relief from certain secu-rities regulators to permit us to purchase, on a private place-ment basis, securities of an issuer during the period of the secu-rities’ distribution or for the 60-day period following the distributionof securities notwithstanding that we or one of our affiliates orassociates has acted as underwriter in connection with the offer-ing of the same securities.

Investment risk classificationand methodologyWe assign risk ratings to each of the Funds as an additionalguide to help you decide whether a Fund is right for you. Ourdetermination of the risk rating for each Fund is guided by themethodology recommended by the Investment Funds Insti-tute of Canada (“IFIC”). IFIC recommends that the most eas-ily understood form of risk in the context of a mutual fund ishistorical volatility risk as measured by the standard deviationof fund performance. However, IFIC recognizes and you shouldbe aware that other types of risk, both measurable and non-measurable, also exist. Additionally, just as historical perfor-mance may not be indicative of future returns, a mutual fund’shistorical volatility may not be indicative of its future volatility.

Where sufficient historical data does not exist for a Fund, wemay use a benchmark index or group of indices that is repre-sentative of the Fund’s investment mandate or strategy as apoint of reference. Consistent with IFIC’s guidelines, qualita-tive factors are also considered before making a final determi-nation of the appropriate risk ratings.

In accordance with the requirements of Canadian securitiesregulatory authorities, we assign a risk rating to each of theFunds as either low, low to medium, medium, medium to highor high risk. In certain instances, we may classify a Fund eitherhigher or lower than the corresponding risk rating indicated byIFIC’s methodology where we feel that quantitative methodsalone do not appropriately reflect the Fund’s level of risk. Wemay do so by considering qualitative factors, such as style andsector concentration, that we believe may contribute to theoverall risk of investing in the Fund. We review the risk ratingfor each Fund on at least an annual basis.

The methodology that we use to identify the investment risklevel of the Funds is available on request and at no cost, bycalling 1-888-390-3333, by [email protected], or by writing to us at theaddress of our head office in Vancouver, British Columbia, onthe back cover of this document.

Specific information about each of theHSBC Mutual Funds described in this document (continued)

25

Fund details

Type of fund

Canadian Money Market

When the Fund was started

January 6, 1989

Type of securities offered

Investor Series, Advisor Series, Premium Series, ManagerSeries and Institutional Series mutual fund trust units

Start date

Investor Series: January 6, 1989Advisor Series: December 17, 2001Premium Series: January 14, 2008Manager Series: December 17, 2001Institutional Series: July 15, 2003

Eligibility for investment in registered plans

The Fund is a qualified investment for RRSPs, RRIFs andother registered plans.*

* Annuitants of RRSPs and RRIFs, holders of TFSAs and RDSPs, andsubscribers of RESPs, should consult with their own tax advisorsas to whether units of the Fund would be a prohibited investmentin their particular circumstances.

What does the Fund invest in?

Investment objectivesThe fundamental investment objective of this Fund is to pro-vide a high level of monthly interest income while preservingcapital by investing primarily in high-quality, short-term Cana-dian fixed income securities. We may only change the Fund’sfundamental investment objective with the approval of a major-ity of the votes cast at a meeting of the unitholders of the Fundheld to consider the change.

Investment strategiesThe Fund invests in treasury bills and other short-term fixedincome securities denominated in Canadian dollars, primarilyissued or guaranteed by the Government of Canada or a prov-ince of Canada, a foreign government or related foreign gov-ernment agency, or a Canadian or foreign corporation.The Fundmay invest up to 33% of its assets in Canadian-dollar-denominatedforeign securities. All of the Fund’s securities will have a matu-rity of 365 days or less.

Fixed income securities held in the Fund will generally be rated“A” or better by Standard & Poor’s or “A” or better by DBRSLimited or an equivalent rating by another designated ratingorganization. Money market securities will generally be rated

“A-1 (Low)” or better by Standard & Poor’s, “R-1 (low)” or bet-ter by DBRS Limited or an equivalent rating by another desig-nated rating organization.

The Fund’s investment advisor typically attempts to add valueto the Fund’s investments by buying longer-term securities whenit expects yields to decline. This has the effect of “locking-in”higher yields. Shorter-term securities are bought when the Fund’sinvestment advisor expects yields to rise so that as the secu-rities mature, the proceeds can be reinvested at higher rates.Securities issued by corporations are selected with a focus onhigher-quality issues where credit risk and liquidity risk are mini-mized and appropriate compensation is provided and consis-tent with the Fund’s primary objectives. Corporate notes canadd value due to the higher yields they offer over government-backed alternatives.

The Fund may enter into securities lending transactions, repur-chase transactions and reverse repurchase transactions, as per-mitted by the Canadian securities regulatory authorities, to earnadditional income for the Fund. For more information on howthe Fund engages in these types of transactions, see the sec-tion in the introduction to this part of the Simplified Prospec-tus called Securities lending transactions, repurchase transac-tions and reverse repurchase transactions.

We may change the Fund’s investment strategies at our dis-cretion, at any time.

What are the risks of investing in

the Fund?

The following are the principal risks associated with investingin the HSBC Canadian Money Market Fund:

� Credit risk

� Interest rate risk

� Large redemption risk

� Liquidity risk

� Multiple series unit risk

� Securities lending, repurchase and reverse repurchase trans-action risk

� Tax loss restriction event risk

For a full explanation of these risks, see the section calledWhat are the risks of investing in mutual funds?

In addition, as at May 31, 2017, one unitholder held units ofthe Fund representing approximately 17.01% of the net assetvalue of the Fund. These units could be sold by the unitholderat any time. If all or a substantial portion of these units aresold, there is a risk that the Fund may have to alter its portfo-lio significantly to accommodate such a large redemption.

Also, while the Fund intends to maintain a constant price forits units, there is no guarantee that they will not go up or downin value.

HSBC Canadian Money Market Fund

26

Who should invest in this Fund?

This Fund is suitable for investors who have a short-term invest-ment time horizon, want to earn interest income and preservetheir capital, and have a low tolerance for risk in their returns.

Distribution policy

The net investment income of this Fund, if any, is credited tounitholders on each valuation day and is distributed at the endof each month. The net realized capital gains of this Fund, ifany, are distributed annually in December. We automaticallyreinvest distributions from the Fund in additional units of theFund unless you tell us in advance that you want to receivedistributions in cash. Cash distributions are not available forHSBC Mutual Funds registered plans.

Fund expenses indirectly borne

by investors

The following information shows the Fund expenses indirectlyborne by investors investing in each series of the Fund for whichthis information is available. It will help you to compare thecost of investing in this Fund with the cost of investing in othermutual funds. For more information about the fees you pay,see the section called Fees and expenses, and in particular,the subsection Fees and expenses paid directly by you.

Investor SeriesThe following table shows the indirect cost of investing in theInvestor Series units. It is based on an initial investment of $1,000,a constant total annual return for the Fund of 5% and a man-agement expense ratio of 0.56%* deducted at the end of the year.

1Year 3Year 5Year 10Year

$5.88 $18.43 $32.11 $71.96

Advisor SeriesThe following table shows the indirect cost of investing in theAdvisor Series units. It is based on an initial investment of $1,000,a constant total annual return for the Fund of 5% and a man-agement expense ratio of 0.56%* deducted at the end of the year.


$5.88 $18.43 $32.11 $71.96

Premium SeriesThe following table shows the indirect cost of investing in thePremium Series units. It is based on an initial investment of$1,000, a constant total annual return for the Fund of 5% anda management expense ratio of 0.43% deducted at the end ofthe year.


$4.52 $14.17 $24.72 $55.61

Manager SeriesThe following table shows the indirect cost of investing in theManager Series units. It is based on an initial investment of$1,000, a constant total annual return for the Fund of 5% anda management expense ratio of 0.51%* deducted at the endof the year.


$5.36 $16.79 $29.27 $65.69

Institutional SeriesThe following table shows the indirect cost of investing in theInstitutional Series units. It is based on an initial investment of$1,000, a constant total annual return for the Fund of 5% anda management expense ratio of 0.04% deducted at the end ofthe year.


$0.42 $1.32 $2.32 $5.27

* These management expense ratios do not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 0.98% for the Investor Series, 1.81% forthe Advisor Series and 0.78% for the Manager Series without anywaiver or absorption of fees or expenses. The amount of expensesabsorbed or fees waived is at our discretion and can be terminatedby us at any time.

HSBC Canadian Money Market Fund (continued)

27

Fund detailsType of fund

U.S. Money Market


January 29, 1998



Start date

Investor Series: January 29, 1998Advisor Series: May 4, 2005Premium Series: January 14, 2008Manager Series: June 25, 2005Institutional Series: April 30, 2004




What does the Fund invest in?Investment objectivesThe fundamental investment objective of this Fund is to earna high level of monthly interest income while preserving capi-tal by investing primarily in high-quality, short-term fixed incomesecurities denominated in U.S. dollars. We may only changethe Fund’s fundamental investment objective with the approvalof a majority of the votes cast at a meeting of the unitholdersof the Fund held to consider the change.

Investment strategiesThe Fund will invest in treasury bills and other short-term fixedincome securities denominated in U.S. dollars, primarily issuedor guaranteed by the Government of Canada or a province ofCanada, a foreign government or related foreign governmentagency, or a Canadian or foreign corporation. The Fund mayinvest up to 100% of its assets in U.S.-dollar-denominated for-eign securities. All of the Fund’s securities will have a maturityof 365 days or less.Fixed income securities held in the Fund will generally be rated“A” or better by Standard & Poor’s or “A” or better by DBRSLimited or an equivalent rating by another designated ratingorganization. Money market securities will generally be rated“A-1 (Low)” or better by Standard & Poor’s, “R-1 (low)” or bet-ter by DBRS Limited or an equivalent rating by another desig-nated rating organization.The Fund’s investment advisor typically attempts to add valueto the Fund’s investments by buying longer-term securities whenit expects yields to decline. This has the effect of “locking-in”

higher yields. Shorter-term securities are bought when the Fund’sinvestment advisor expects yields to rise so that as the secu-rities mature, the proceeds can be reinvested at higher rates.Securities issued by corporations are selected with a focus onhigher-quality issues where credit risk and liquidity risk are mini-mized and appropriate compensation is provided and consis-tent with the Fund’s primary objectives. Corporate notes canadd value due to the higher yields they offer over government-backed alternatives.



What are the risks of investing inthe Fund?The following are the principal risks associated with investingin the HSBC U.S. Dollar Money Market Fund:

� Credit risk



� Liquidity risk





Also, while the Fund intends to maintain a constant price forits units, there is no guarantee that they will not go up or downin value.

Who should invest in this Fund?This Fund is suitable for investors with U.S. dollars to investand who want to earn interest income in U.S. dollars and pre-serve their U.S. dollar capital. Investors in this Fund should havea short-term investment time horizon and a low tolerance forrisk in their returns.

Distribution policyThe net investment income of this Fund, if any, is credited tounitholders on each valuation day and is distributed at the endof each month. The net realized capital gains of this Fund, ifany, are distributed annually in December. We automaticallyreinvest distributions from the Fund in additional units of theFund. Cash distributions are not available for this Fund.

HSBC U.S. Dollar Money Market Fund

28


by investorsThe following information shows the Fund expenses indirectlyborne by investors investing in each series of the Fund for whichthis information is available. It will help you to compare thecost of investing in this Fund with the cost of investing in othermutual funds.The information below is in U.S. dollars.The costsof investing in Advisor Series and Manager Series units of theFund are not shown because no Advisor Series or ManagerSeries units of the Fund were outstanding during the last com-pleted financial year of the Fund and there are no actual man-agement expense ratios on which to base these calculations.For more information about the fees you pay, see the sectioncalled Fees and expenses, and in particular, the subsectionFees and expenses paid directly by you.



$4.31 $13.51 $23.58 $53.07

Premium SeriesThe following table shows the indirect cost of investing in thePremium Series units. It is based on an initial investment of$1,000, a constant total annual return for the Fund of 5% anda management expense ratio of 0.38%* deducted at the endof the year.


$3.99 $12.53 $21.87 $49.26

Institutional SeriesThe following table shows the indirect cost of investing in theInstitutional Series units. It is based on an initial investment of$1,000, a constant total annual return for the Fund of 5% anda management expense ratio of 0.22%* deducted at the endof the year.


$2.31 $7.27 $12.71 $28.74

* These management expense ratios do not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 1.18% for the Investor Series, 0.56% forthe Premium Series, and 0.29% for the Institutional Series withoutany waiver or absorption of fees or expenses. The amount ofexpenses absorbed or fees waived is at our discretion and can beterminated by us at any time.

HSBC U.S. Dollar Money Market Fund (continued)

29

Fund details

Type of fund

Canadian Short-Term Fixed Income


December 9, 1992



Start date

Investor Series: December 9, 1992Advisor Series: March 21, 2002Premium Series: April 25, 2008Manager Series: May 22, 2002Institutional Series: July 31, 2002


The Fund is a qualified investment for RRSPs, RRIFs and otherregistered plans.*



Investment objectivesThe fundamental investment objective of this Fund is to earnas high a level of income as possible that is consistent withthe Fund’s eligible investments while aiming to protect investedcapital by investing primarily in residential first mortgages onproperty in Canada and other debt obligations. We may onlychange the Fund’s fundamental investment objective with theapproval of a majority of the votes cast at a meeting of theunitholders of the Fund held to consider the change.

Investment strategiesSubject to the availability of suitable mortgages, the Fund willinvest primarily in uninsured Canadian-dollar-denominated mort-gages.The Fund may also invest a portion of its assets in otherdebt obligations such as government bonds, corporate bonds,mortgage-backed securities, debentures and other fixedincome securities.

The Fund intends to purchase and sell, as principal, mortgagesfrom and to HSBC Bank Canada or our other affiliates. If anymortgage purchased from HSBC Bank Canada or any of ouraffiliates is in default for 90 days or more, HSBC Bank Canadawill repurchase those mortgages from the Fund. For detailedinformation regarding these mortgage transactions, please referto the Fund’s Annual Information Form.

Debt obligations will generally be rated “A” or better by Stan-dard & Poor’s or DBRS Limited or an equivalent rating by anotherrecognized rating agency.

A portion of the Fund’s holdings may be in the form of cash orcash equivalents. Money market securities will generally berated “A-1 (Low)” or better by Standard & Poor’s, “R-1 (low)”or better by DBRS Limited or an equivalent rating by anotherrecognized rating agency.

The Fund may invest up to 30% of its assets in foreign secu-rities. While the Fund intends to invest primarily in Canadianassets, the Fund may invest in foreign securities where theFund’s investment advisor believes that they might add valueto the Fund.

The Fund may use derivatives consistent with its investmentobjectives and as permitted by the Canadian securities regula-tory authorities.The Fund may use derivatives such as options,futures, covered calls, forward contracts and other similar instru-ments for hedging and non-hedging purposes. The Fund mayuse these instruments to provide exposure to securities, indi-ces or currencies without investing in them directly. Deriva-tives may be used to manage the risks to which the invest-ment portfolio is exposed. The Fund may also use derivativesas described in the introduction to this part of the SimplifiedProspectus in the section called Derivatives transactions.

As a temporary defensive tactic, the Fund may maintain a sig-nificant portion of its assets in Canadian and U.S. short-termfixed income securities during periods of high market volatil-ity, in order to provide capital protection while awaiting morefavourable market conditions.

The Fund may invest, directly or indirectly through the use ofderivatives, a significant portion or even all of its net assets inunits of other mutual funds or exchange-traded funds, includ-ing funds managed by us or other members of the HSBC Group.The Fund’s investment advisor will only invest in units of otherfunds where such investment is compatible with the invest-ment objectives and strategies of the Fund. These invest-ments will be selected on the same basis as other invest-ments of the Fund. As at the date of this Simplified Prospectus,there is no immediate intention of investing a significant por-tion of the Fund’s net assets in other funds. However, the Fund’sinvestment advisor may do so in the future.



What are the risks of investing inthe Fund?

The following are the principal risks associated with investingin the HSBC Mortgage Fund:

� Credit risk

HSBC Mortgage Fund

30



� Liquidity risk





In addition, as at May 31, 2017, two unitholders held units ofthe Fund representing approximately 22.79% and 10.55% ofthe net asset value of the Fund, respectively.These units couldbe sold by the unitholders at any time. If all or a substantialportion of these units are sold, there is a risk that the Fundmay have to alter its portfolio significantly to accommodate sucha large redemption.


This Fund is suitable for investors who want to earn interestincome and protect their capital. Investors in this Fund shouldhave a short-term investment time horizon and a low tolerancefor risk in their returns.

Distribution policy

The net investment income of this Fund, if any, is distributedmonthly to those who hold units in the Fund on the last busi-ness day prior to the date of distribution.The net realized capi-tal gains of this Fund, if any, are distributed annually in Decem-ber to those who hold units on the last business day prior tothe date of distribution. We automatically reinvest distribu-tions from the Fund in additional units of the Fund unless youtell us in advance that you want to receive distributions in cash.Cash distributions are not available for HSBC Mutual Funds reg-istered plans.


by investors


Investor SeriesThe following table shows the indirect cost of investing in theInvestor Series units. It is based on an initial investment of $1,000,

a constant total annual return for the Fund of 5% and a man-agement expense ratio of 1.57% deducted at the end of the year.


$16.49 $51.13 $88.14 $192.07

Advisor SeriesThe following table shows the indirect cost of investing in theAdvisor Series units. It is based on an initial investment of $1,000,a constant total annual return for the Fund of 5% and a man-agement expense ratio of 1.59% deducted at the end of the year.


$16.70 $51.77 $89.22 $194.33



$10.71 $33.41 $57.93 $128.16

Manager SeriesThe following table shows the indirect cost of investing in theManager Series units. It is based on an initial investment of$1,000, a constant total annual return for the Fund of 5% anda management expense ratio of 1.06% deducted at the end ofthe year.


$11.13 $34.70 $60.15 $132.93



$1.05 $3.31 $5.79 $13.14

HSBC Mortgage Fund (continued)

31


Canadian Fixed Income


January 16, 1995



Start date

Investor Series: January 16, 1995Advisor Series: January 28, 2002Premium Series: April 28, 2008Manager Series: November 11, 2003Institutional Series: January 5, 2004




What does the Fund invest in?Investment objectivesThe fundamental investment objective of this Fund is to pro-vide regular income and long-term capital growth by investingprimarily in high-quality Canadian fixed income securities, includ-ing bonds, mortgage-backed securities, debentures and otherfixed income securities either issued or guaranteed by the Gov-ernment of Canada, a province or municipality of Canada orCanadian corporations. We may only change the Fund’s funda-mental investment objective with the approval of a majority ofthe votes cast at a meeting of the unitholders of the Fund heldto consider the change.

Investment strategiesWhen investing in fixed income securities, the Fund investsprimarily in government bonds, corporate bonds, mortgage-backed securities, debentures and other fixed income securi-ties either issued or guaranteed by the Government of Canada,a province or municipality of Canada, Canadian corporations orCanadian trusts that issue asset-backed securities. Fixed incomesecurities will generally be rated “A” or better by Standard &Poor’s or DBRS Limited or an equivalent rating by another rec-ognized rating agency. Money market securities will generallybe rated “A-1 (Low)” or better by Standard & Poor’s, “R-1 (low)”or better by DBRS Limited or an equivalent rating by anotherrecognized rating agency.

The Fund’s investment advisor attempts to add value to theFund’s investments by buying longer-term securities when itexpects yields to decline. This has the effect of “locking in”

higher yields. Shorter-term securities are purchased when theFund’s investment advisor expects yields to rise, so that as thesecurities mature they can be reinvested at higher rates. Pro-vincial and corporate bonds are purchased when the potentialgains offered by these securities are expected to outweigh theircredit and liquidity risk.

A portion of the Fund’s holdings may be in the form of cash orcash equivalents.






The Fund’s investment strategy may involve the Fund’s invest-ment advisor actively and frequently buying and selling the Fund’sunderlying investments. As a result, the Fund may have a highportfolio turnover rate. The higher a Fund’s portfolio turnoverrate in a year, the greater the trading costs payable by the Fund

HSBC Canadian Bond Fund

32

and, assuming the Fund is realizing capital gains from its saleof securities, the greater the chance of an investor receivingtaxable capital gains in that year from the Fund. A high portfo-lio turnover rate should not be taken as a reflection of the Fund’s per-formance.We may change the Fund’s investment strategies at our dis-cretion, at any time.

What are the risks of investing inthe Fund?The following are the principal risks associated with investingin the HSBC Canadian Bond Fund:� Credit risk� Fund of funds risk� Interest rate risk� Large redemption risk� Multiple series unit risk� Securities lending, repurchase and reverse repurchase trans-

action risk� Tax loss restriction event riskFor a full explanation of these risks, see the section calledWhat are the risks of investing in mutual funds?In addition, as at May 31, 2017, three unitholders held units oftheFund representingapproximately15.42%,12.15%and10.32%of the net asset value of the Fund, respectively. These unitscould be sold by the unitholders at any time. If all or a substan-tial portion of these units are sold, there is a risk that the Fundmay have to alter its portfolio significantly to accommodate sucha large redemption.

Who should invest in this Fund?This Fund is suitable for investors who want to earn interestincome and grow their capital. Investors in this Fund shouldhave a medium-term investment time horizon and a low to mediumtolerance for risk in their returns. This Fund is not suitable forthose with a low tolerance for risk in their returns or for thosewho have a short time horizon for their investment.

Distribution policyThe net investment income of this Fund, if any, is distributedmonthly to those who hold units in the Fund on the last busi-ness day prior to the date of distribution.The net realized capi-tal gains of this Fund, if any, are distributed annually in Decem-ber to those who hold units on the last business day prior tothe date of distribution. We automatically reinvest distribu-tions from the Fund in additional units of the Fund unless youtell us in advance that you want to receive distributions in cash.Cash distributions are not available for HSBC Mutual Funds reg-istered plans.

Fund expenses indirectly borneby investorsThe following information shows the Fund expenses indirectlyborne by investors investing in each series of the Fund for which

this information is available. It will help you to compare thecost of investing in this Fund with the cost of investing in othermutual funds. For more information about the fees you pay,see the section called Fees and expenses, and in particular,the subsection Fees and expenses paid directly by you.

Investor SeriesThe following table shows the indirect cost of investing in theInvestor Series units. It is based on an initial investment of $1,000,a constant total annual return for the Fund of 5% and a man-agement expense ratio of 1.13% deducted at the end of the year.


$11.87 $36.97 $64.03 $141.23



$17.43 $54.01 $93.01 $202.20



$9.03 $28.22 $49.00 $108.90



$9.77 $30.49 $52.92 $117.37



$0.42 $1.32 $2.32 $5.27

* This management expense ratio does not include certain fees orexpenses that we have waived or absorbed, which would other-

HSBC Canadian Bond Fund (continued)

33

wise have been payable by the Fund. The management expenseratio would have been 1.73% for the Advisor Series without anywaiver or absorption of fees or expenses. The amount of expensesabsorbed or fees waived is at our discretion and can be terminatedby us at any time.

HSBC Canadian Bond Fund (continued)

34

Fund details

Type of fund

Global Fixed Income


June 8, 2015


Investor Series, Advisor Series, Premium Series, ManagerSeries and Institutional Series mutual fund trust units.Units of the Fund are only available in U.S. dollars.

Start date

Investor Series: October 20, 2015Advisor Series: October 22, 2015Premium Series: October 20, 2015Manager Series: October 22, 2015Institutional Series: October 19, 2015



Sub-advisors**

HSBC Global Asset Management (USA) Inc.New York City, New York, USAHSBC Global Asset Management (France)Paris, France


** We may hire or replace sub-advisors, or change the allocation ofassets among sub-advisors, at any time. See the section calledSelection of sub-advisors on page 23. HSBC Global Asset Man-agement (USA) Inc. and HSBC Global Asset Management(France) are related to us because they are our affiliates.


Investment objectivesThe fundamental investment objective of this Fund is to earnincome while providing the potential for long-term capital growthby investing primarily in a broad range of corporate fixed incomesecurities from issuers around the world. We may only changethe Fund’s fundamental investment objective with the approvalof a majority of the votes cast at a meeting of the unitholdersof the Fund held to consider the change.

Investment strategiesTo achieve the Fund’s fundamental investment objective, theFund intends to invest primarily in a portfolio of investment-grade corporate bonds, debentures and other fixed income secu-rities from issuers around the world, including emerging mar-kets.The Fund may also invest a portion of its assets in mortgage-

backed securities, asset-backed securities and investment-grade and non-investment-grade corporate and government fixedincome securities. Investment-grade securities will have a rat-ing of BBB- or higher, while non-investment-grade securitieswill have a rating of BB+ or lower, as rated by Standard & Poor’s,or will have equivalent ratings by other rating organizations.Financial derivative instruments may be used for hedging pur-poses and cash flow management, as well as for efficient port-folio management. Fixed income securities that the Fund investsin may be denominated in U.S. dollars and in other foreign cur-rencies.


The Fund may invest up to 100% of its assets in foreign secu-rities.

The Fund may use derivatives consistent with its investmentobjectives and as permitted by the Canadian securities regula-tory authorities.The Fund may use derivatives such as options,swaps, futures, covered calls, forward contracts and other simi-lar instruments for hedging and non-hedging purposes.The Fundmay use these instruments to provide exposure to securities,indices or currencies without investing in them directly. Deriva-tives may be used to manage the risks to which the invest-ment portfolio is exposed. The Fund may also use derivativesas described in the introduction to this part of the SimplifiedProspectus in the section called Derivatives transactions.

As a temporary defensive tactic, the Fund’s investment advi-sor may maintain a significant portion of the Fund’s assets inCanadian and U.S. short-term fixed income securities duringperiods of high market volatility, in order to provide capital pro-tection while awaiting more favourable market conditions.


The Fund may engage in short selling. We believe that a shortselling strategy may complement the Fund’s current primarydiscipline of buying securities with the expectation that theywill appreciate in market value. For more information on howthe Fund engages in these types of transactions, see the sec-tion in the introduction to this part of the Simplified Prospec-tus called Short selling.

The Fund may enter into securities lending transactions, repur-chase transactions and reverse repurchase transactions, as per-mitted by the Canadian securities regulatory authorities, to earnadditional income for the Fund. For more information on how

HSBC Global Corporate Bond Fund

35

the Fund engages in these types of transactions, see the sec-tion in the introduction to this part of the Simplified Prospec-tus called Securities lending transactions, repurchase transac-tions and reverse repurchase transactions.



the Fund?

The following are the principal risks associated with investingin the HSBC Global Corporate Bond Fund:

� Credit risk

� Currency risk

� Derivative risk

� Foreign market risk



� Liquidity risk



� Short sale risk





This Fund is suitable for investors who want to earn interestincome and achieve modest long-term growth. Investors in thisFund should have a medium-term investment time horizon anda low to medium tolerance for risk.This Fund is not suitable forthose with a low tolerance for risk, or for those who have ashort time horizon for their investment.

Distribution policy

The net investment income of this Fund, if any, is distributedmonthly to those who hold units in the Fund on the last busi-ness day prior to the date of distribution.The net realized capi-tal gains of this Fund, if any, are distributed annually in Decem-ber to those who hold units on the last business day prior to

the date of distribution. We automatically reinvest distribu-tions from the Fund in additional units of the Fund. Cash distri-butions are not available for this Fund.

Fund expenses indirectly borneby investorsThe following information shows the Fund expenses indirectlyborne by investors investing in each series of the Fund for whichthis information is available. It will help you to compare thecost of investing in this Fund with the cost of investing in othermutual funds.The costs of investing in Advisor Series and Man-ager Series units are not shown because as of the date of thisSimplified Prospectus, no Advisor Series or Manager Seriesunits of the Fund have been issued and there are no actualmanagement expense ratios on which to base the calcula-tions. For more information about the fees you pay, see thesection called Fees and expenses, and in particular, the sub-section Fees and expenses paid directly by you.



$18.90 $58.48 $100.56 $217.77



$15.33 $47.60 $82.15 $179.57



$2.00 $6.28 $10.98 $24.86

* These management expense ratios do not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 1.85% for the Investor Series, 1.50% forthe Premium Series and 0.22% for the Institutional Series withoutany waiver or absorption of fees or expenses. The amount ofexpenses absorbed or fees waived is at our discretion and can beterminated by us at any time.

HSBC Global Corporate Bond Fund (continued)

36

Fund details

Type of fund

Foreign Bond


September 26, 2011



Start date

Investor Series: October 24, 2011Advisor Series: November 18, 2011Premium Series: November 18, 2011Manager Series: November 18, 2011Institutional Series: October 20, 2011



Sub-advisor**

HSBC Global Asset Management (USA) Inc.New York City, New York, USA


** We may hire or replace sub-advisors, or change the allocation ofassets among sub-advisors, at any time. See the section calledSelection of sub-advisors on page 23. HSBC Global Asset Man-agement (USA) Inc. is related to us because it is our affiliate.


Investment objectivesThe fundamental investment objective of this Fund is to maxi-mize return, which consists of both income and long-term capi-tal growth, by investing primarily in fixed income securities issuedby governments or corporations that provide exposure to emerg-ing markets.We may only change the Fund’s fundamental invest-ment objective with the approval of a majority of the votes castat a meeting of the unitholders of the Fund held to considerthe change.

Investment strategiesThe Fund invests primarily in a diversified portfolio of fixed incomesecurities issued by governments in emerging market coun-tries and corporations or other issuers either based in or thathave a significant business or investment link with emergingmarket countries, and currencies of emerging market coun-tries.These emerging markets may include Latin American coun-tries such as Brazil and Mexico, European countries such asRussia and Kazakhstan, African countries such as South Africa,

Middle Eastern countries such as the UAE and Asian nationssuch as Indonesia and the Philippines. The Fund may invest ina range of emerging markets, from more developed emergingmarkets such as Mexico, Brazil and Korea to emerging econo-mies such as Vietnam, Sri Lanka and Ghana that continue todevelop. Fixed income securities may be denominated in U.S.dollars and in other foreign currencies that may include the localcurrency of emerging market countries.The Fund may use deriva-tives to gain or reduce its exposure to fixed income securitiesas well as local currencies of emerging markets.The Fund mayalso use derivatives to hedge against the risks inherent in fixedincome securities or in currency exchange rates.

Fixed income securities held in the Fund will be comprised ofinvestment-gradeandnon-investment-gradesecurities, andaccord-ingly, they will have a rating across a wide range of credit quali-ties as rated by Standard & Poor’s, DBRS Limited, Moody’sInvestors Service or an equivalent rating source. Money mar-ket securities may generally be rated “A-1 (Low)” or better byStandard & Poor’s, “R-1 (low)” or better by DBRS Limited, “P-1”or better by Moody’s Investors Service or an equivalent ratingfrom a similar ratings source in their jurisdiction.

The Fund has obtained exemptive relief to permit it to (a) investup to 20% of its net assets in fixed income securities of anyone issuer that are issued or guaranteed by supranational agen-cies or governments (other than the Government of Canada, aprovince of Canada or the United States of America, whereinvestment is unrestricted) and are rated “AA” or better by Stan-dard & Poor’s or an equivalent rating by one or more other approveddesignated rating organizations, and (b) invest up to 35% of itsnet assets in fixed income securities of any one issuer that areissued or guaranteed by supranational agencies or govern-ments (other than the Government of Canada, a province ofCanada or the United States of America, where investment isunrestricted) and are rated “AAA” by Standard & Poor’s, or havean equivalent rating by one or more other approved desig-nated rating organizations.The terms of the relief provide that:

(i) (a) and (b) above may not be combined for one issuer;

(ii) the securities that are purchased must be traded on a matureand liquid market; and

(iii) the acquisition of the securities purchased must be con-sistent with the fundamental investment objectives ofthe Fund.



The Fund may use derivatives consistent with its investmentobjectives and as permitted by the Canadian securities regula-tory authorities.The Fund may use derivatives such as options,futures, covered calls, forward contracts, swaps and other simi-lar instruments for hedging and non-hedging purposes.The Fundmay use these instruments to provide exposure to securities,indices or currencies without investing in them directly. Deriva-tives may be used to manage the risks to which the invest-

HSBC Emerging Markets Debt Fund

37

ment portfolio is exposed. The Fund may also use derivativesas described in the introduction to this part of the SimplifiedProspectus in the section called Derivatives transactions.

As a temporary defensive tactic, the Fund’s investment advi-sor may maintain a significant portion of its assets in Canadianand U.S. short-term fixed income securities during periods ofhigh market volatility, in order to provide capital protection whileawaiting more favourable market conditions.

The Fund may invest, directly or indirectly through the use ofderivatives, a significant portion or even all of its net assets inunits of other mutual funds or exchange-traded funds, includ-ing funds managed by us or other members of the HSBC Group.The Fund’s investment advisor will only invest in units of otherfunds where such investment is compatible with the invest-ment objectives and strategies of the Fund. These invest-ments will be selected on the same basis as other invest-ments of the Fund.

The Fund may engage in short selling. We believe that a shortselling strategy may complement the Fund’s current primarydiscipline of buying securities with the expectation that theywill appreciate in market value. For more information on howthe Fund engages in these types of transactions, see the sec-tion in the introduction to this part of the Simplified Prospec-tus called Short selling.


The Fund’s investment strategy may involve the Fund’s invest-ment advisor actively and frequently buying and selling the Fund’sunderlying investments. As a result, the Fund may have a highportfolio turnover rate. The higher a Fund’s portfolio turnoverrate in a year, the greater the trading costs payable by the Fundand, assuming the Fund is realizing capital gains from its saleof securities, the greater the chance of an investor receivingtaxable capital gains in that year from the Fund. A high portfo-lio turnover rate should not be taken as a reflection of the Fund’s per-formance.



the Fund?The following are the principal risks associated with investingin the HSBC Emerging Markets Debt Fund:

� Concentration risk

� Credit risk

� Currency risk

� Derivative risk




� Liquidity risk



� Short sale risk


In the 12 months immediately preceding May 21, 2017, theFund invested up to 10.94% of its net asset value in shares ofFederative Republic of Brazil. See the section called What arethe risks of investing in mutual funds? for a description of con-centration risk.




This Fund is suitable for investors who want to earn interestincome and achieve modest long-term capital growth. Inves-tors in this Fund should have a long-term investment time hori-zon and a low to medium tolerance for risk. This Fund is notsuitable for those with a low tolerance for risk in their returns,or for those who have a short or medium time horizon fortheir investments.

Distribution policy

The net investment income of this Fund, if any, is distributedmonthly to those who hold units in the Fund on the last busi-ness day prior to the date of distribution.The net realized capi-tal gains, if any, are distributed annually in December to thosewho hold units on the last business day prior to the date ofdistribution. We automatically reinvest distributions from theFund in additional units of the Fund unless you tell us in advancethat you want to receive distributions in cash. Cash distribu-tions are not available for HSBC Mutual Funds registered plans.


by investors

The following information shows the Fund expenses indirectlyborne by investors investing in each series of the Fund for whichthis information is available. It will help you to compare thecost of investing in this Fund with the cost of investing in othermutual funds. For more information about the fees you pay,

HSBC Emerging Markets Debt Fund (continued)

38

see the section called Fees and expenses, and in particular,the subsection Fees and expenses paid directly by you.



$18.69 $57.84 $99.49 $215.56



$25.73 $79.06 $135.02 $287.25



$15.02 $46.64 $80.52 $176.13



$19.74 $61.03 $104.86 $226.57



$1.47 $4.63 $8.10 $18.36

* These management expense ratios do not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 8.11% for the Advisor Series and 27.06%for the Manager Series without any waiver or absorption of fees orexpenses. The amount of expenses absorbed or fees waived is atour discretion and can be terminated by us at any time.

HSBC Emerging Markets Debt Fund (continued)

39

Fund details

Type of fund

Canadian Fixed Income Balanced


December 16, 2004



Start date

Investor Series: December 29, 2004Advisor Series: January 26, 2005Premium Series: April 25, 2008Manager Series: September 24, 2012Institutional Series: December 17, 2004




What does the Fund invest in?Investment objectivesThe fundamental investment objective of this Fund is to pro-vide a reasonably consistent level of monthly income while aim-ing to preserve capital over the medium to long term.The Fundwill invest primarily in a diversified portfolio of debt and equityinstruments.We may only change the Fund’s fundamental invest-ment objective with the approval of a majority of the votes castat a meeting of the unitholders of the Fund held to considerthe change.

Investment strategiesThe investment strategy is to position the Fund to maximizeincome and to preserve capital while providing potential forlong-term capital appreciation.

The Fund’s investment advisor selects a diversified portfolio ofmoney market instruments, government and corporate bonds,mortgages, high-dividend-paying common and preferred shares,income trust units and other high-yielding securities.

When investing in common equities and income trusts, theFund’s investment advisor focuses on quality, stability and theability to grow dividends or distributable income over time.Thesesecurities and income trusts will generally have a higher yieldthan the overall market.A portion of the Fund may also be investedin high-quality preferred shares that pay dividend income.

When investing in fixed income securities, the Fund investsprimarily in government bonds, corporate bonds, mortgage-backed securities, debentures and other fixed income securi-

ties either issued or guaranteed by the Government of Canada,a province or municipality of Canada, Canadian corporations orCanadian trusts that issue asset-backed securities. Fixed incomesecurities will generally be rated “A” or better by Standard &Poor’s or DBRS Limited or an equivalent rating by another rec-ognized rating agency. Money market securities will generallybe rated “A-1 (Low)” or better by Standard & Poor’s, “R-1 (low)”or better by DBRS Limited or an equivalent rating by anotherrecognized rating agency.

The Fund’s investment advisor attempts to add value to theFund’s fixed income investments by buying longer-term secu-rities when it expects yields to decline. This has the effect of“locking in” higher yields. Shorter-term securities are pur-chased when the Fund’s investment advisor expects yields torise so that as the securities mature they can be reinvested athigher rates. Provincial and corporate bonds are purchased whenthe potential gains offered by these securities are expected tooutweigh their credit and liquidity risk.


The Fund may also invest in comparable foreign securities.TheFund may invest up to 30% of its assets in foreign securities.While the Fund intends to invest primarily in Canadian assets,the Fund may invest in foreign securities where the Fund’s invest-ment advisor believes that they might add value to the Fund.



The Fund may invest, directly or indirectly through the use ofderivatives, a significant portion or even all of its net assets inunits of other mutual funds or exchange-traded funds, includ-ing funds managed by us or other members of the HSBC Group.The Fund’s investment advisor will only invest in units of otherfunds where such investment is compatible with the invest-ment objectives and strategies of the Fund. These invest-ments will be selected on the same basis as other invest-ments of the Fund. As at the date of this Simplified Prospectus,the Fund currently invests in units of the HSBC Mortgage Fund;while there is no immediate intention to increase its invest-ment significantly in this Fund or in other Funds, the Fund’sinvestment advisor may do so in the future.

HSBC Monthly Income Fund

40




the Fund?The following are the principal risks associated with investingin the HSBC Monthly Income Fund:

� Asset allocation risk


� Credit risk

� Fund of funds risk


� Liquidity risk

� Market risk


� Return of capital risk


� Security risk


In the 12 months immediately preceding May 21, 2017, theFund invested up to 28.82% of its net asset value in the HSBCMortgage Fund. See the section called What are the risks ofinvesting in mutual funds? for a description of concentra-tion risk.


The Fund intends to maintain a reasonably consistent level ofmonthly distributions of income. However, there is no guaran-tee that there will not be fluctuations in distributions depend-ing on the income generated by the Fund in any particu-lar month.

In situations where the Fund has earned less income than theamount of its regular distribution, a return of capital may beincluded in the payment to help maintain a consistent distribu-tion rate. A return of capital represents a return of some or allof the investor’s original investment back to the investor. Thepart of the distribution that is a return of capital will reduce theadjusted cost base per unit of your units, may reduce the netasset value of the Fund and could impact the Fund’s ability togenerate future income. See the section below called Distri-bution policy for more information on the Fund’s distribu-tion policy.

Who should invest in this Fund?This Fund is suitable for investors who want to earn reason-ably consistent levels of monthly income and who are seekinghigher total returns while seeking to preserve the value of theircapital over the medium to long term. Investors in this Fundshould have a medium investment time horizon and a low tomedium tolerance for risk in their returns.This Fund is not suit-able for those with a low tolerance for risk in their returns orfor those who have a short time horizon for their investment.

Distribution policyThe Fund aims to distribute a reasonably consistent amount ofinvestment income monthly to those who hold units in the Fundon the last business day prior to the date of distribution. Thenet realized capital gains of this Fund, if any, are distributedannually in December to those who hold units on the last busi-ness day prior to the date of distribution. If the regular monthlydistributions are less than the Fund’s net income and net capi-tal gains for the year, we will make an additional distribution ofnet income in December. If the amount distributed exceedsthe Fund’s income and net realized capital gains, such excesswill constitute a return of capital. See the section above calledWhat are the risks of investing in the Fund? for the risks relat-ing to return of capital and the section called Income tax con-siderations for investors for tax considerations related to returnof capital.The amount of the distributions is not guaranteed and may changefrom time to time without notice to unitholders. We automati-cally reinvest distributions from the Fund in additional units ofthe Fund unless you tell us in advance that you want to receivedistributions in cash. Cash distributions are not available forHSBC Mutual Funds registered plans.

Fund expenses indirectly borneby investorsThe following information shows the Fund expenses indirectlyborne by investors investing in each series of the Fund for whichthis information is available. It will help you to compare thecost of investing in this Fund with the cost of investing in othermutual funds. For more information about the fees you pay,see the section called Fees and expenses, and in particular,the subsection Fees and expenses paid directly by you.



$15.02 $46.64 $80.52 $176.13

Advisor SeriesThe following table shows the indirect cost of investing in theAdvisor Series units. It is based on an initial investment of $1,000,

HSBC Monthly Income Fund (continued)

41

a constant total annual return for the Fund of 5% and a man-agement expense ratio of 1.82%* deducted at the end of the year.


$19.11 $59.12 $101.64 $219.97



$9.24 $28.87 $50.12 $111.33



$13.44 $41.81 $72.30 $158.81



$2.21 $6.94 $12.13 $27.45

* This management expense ratio does not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 3.15% for the Advisor Series without anywaiver or absorption of fees or expenses. The amount of expensesabsorbed or fees waived is at our discretion and can be terminatedby us at any time.

HSBC Monthly Income Fund (continued)

42


Global Fixed Income Balanced


December 16, 2010



Start date

Investor Series: January 7, 2011Advisor Series: February 10, 2012Premium Series: January 5, 2011Manager Series: March 1, 2012Institutional Series: February 7, 2011



Sub-advisors**

HSBC Global Asset Management (USA) Inc.New York City, New York, USAFederated Investment Counseling Inc.Pittsburgh, Pennsylvania, USA


** We may hire or replace sub-advisors, or change the allocation ofassets among sub-advisors, at any time. See the section calledSelection of sub-advisors on page 23. HSBC Global Asset Man-agement (USA) Inc. is related to us because it is our affiliate.

What does the Fund invest in?Investment objectivesThe fundamental investment objective of this Fund is to pro-vide a reasonably consistent level of monthly income while aim-ing to preserve capital over the medium to long term.The Fundwill invest primarily in a diversified portfolio of debt and equityinstruments denominated in U.S. dollars. We may only changethe Fund’s fundamental investment objective with the approvalof a majority of the votes cast at a meeting of the unitholdersof the Fund held to consider the change.

Investment strategiesThe investment strategy is to position the Fund to maximizeincome and to preserve capital while providing potential forlong-term capital appreciation.The Fund’s investment advisor selects a diversified portfolio ofmoney market instruments, government and corporate bonds,mortgages, high-dividend-paying common and preferred shares,income trust units and other high-yielding securities denomi-nated in U.S. dollars.

When investing in common equities and income trusts, theFund’s investment advisor focuses on quality, stability and theability to grow dividends or distributable income over time.Thesesecurities and income trusts will generally have a higher yieldthan the overall market.A portion of the Fund may also be investedin high-quality preferred shares that pay dividend income.When investing in fixed income securities, the Fund investsprimarily in government bonds, corporate bonds, mortgage-backed securities, debentures and other fixed income securi-ties either issued or guaranteed by the U.S. government or relatedgovernment agencies, a state or municipality of the United States,U.S. corporations or U.S. trusts that issue asset-backed secu-rities. Fixed income securities will generally be rated “BBB”or better by Standard & Poor’s or an equivalent rating by anotherrecognized rating agency. Money market securities will gener-ally be rated “A-1 (Low)” or better by Standard & Poor’s, “R-1(low)” or better by DBRS Limited or an equivalent rating byanother recognized rating agency.The Fund’s investment advisor attempts to add value to theFund’s fixed income investments by buying longer-term secu-rities when it expects yields to decline. This has the effect of“locking in” higher yields. Shorter-term securities are pur-chased when the Fund’s investment advisor expects yields torise so that as the securities mature they can be reinvested athigher rates. State and corporate bonds are purchased whenthe potential gains offered by these securities are expected tooutweigh their credit and liquidity risk.A portion of the Fund’s holdings may be in the form of cash orcash equivalents.The Fund may invest up to 100% of its assets in foreign secu-rities. While the Fund intends to invest primarily in U.S. secu-rities, the Fund may invest in comparable Canadian and non-North American securities where the Fund’s investment advisorbelieves that they might add value to the Fund.The Fund may use derivatives consistent with its investmentobjectives and as permitted by the Canadian securities regula-tory authorities.The Fund may use derivatives such as options,futures, covered calls, forward contracts and other similar instru-ments for hedging and non-hedging purposes. The Fund mayuse these instruments to provide exposure to securities, indi-ces or currencies without investing in them directly. Deriva-tives may be used to manage the risks to which the invest-ment portfolio is exposed. The Fund may also use derivativesas described in the introduction to this part of the SimplifiedProspectus in the section called Derivatives transactions.As a temporary defensive tactic, the Fund may maintain a por-tion of its assets in Canadian and U.S. short-term fixed incomesecurities during periods of high market volatility, in order toprovide capital protection while awaiting more favourable mar-ket conditions.The Fund may invest, directly or indirectly through the use ofderivatives, a significant portion or even all of its net assets inunits of other mutual funds or exchange-traded funds, includ-ing funds managed by us or other members of the HSBC Group.The Fund’s investment advisor will only invest in units of otherfunds where such investment is compatible with the invest-ment objectives and strategies of the Fund. The investmentswill be selected on the same basis as other investments ofthe Fund.

HSBC U.S. Dollar Monthly Income Fund

43




the Fund?The following are the principal risks associated with investingin the HSBC U.S. Dollar Monthly Income Fund:


� Credit risk



� Liquidity risk

� Market risk


� Return of capital risk


� Security risk



The Fund intends to maintain a reasonably consistent level ofmonthly income. However, there is no guarantee that therewill not be fluctuations in distributions depending on the incomegenerated by the Fund in any particular month.

In situations where the Fund has earned less income than theamount of its regular distribution, a return of capital may beincluded in the payment to help maintain a consistent distribu-tion rate. A return of capital represents a return of some or allof the investor’s original investment back to the investor. Thepart of the distribution that is a return of capital will reduce theadjusted cost base per unit of your units, may reduce the netasset value of the Fund and could impact the Fund’s ability togenerate future income. See the section below called Distri-bution policy for more information on the Fund’s distribu-tion policy.

Who should invest in this Fund?This Fund is suitable for investors with U.S. dollars to investwho want to earn reasonably consistent levels of monthly incomein U.S. dollars and who are seeking higher total returns whileseeking to preserve the value of their U.S. dollar capital overthe medium to long term. Investors in this Fund should have a

medium-term investment time horizon and a low to mediumtolerance for risk in their returns. This Fund is not suitable forthose with a low tolerance for risk in their returns, or for thosewho have a short time horizon for their investment.

Distribution policyThe Fund aims to distribute a reasonably consistent amount ofinvestment income monthly to those who hold units in the Fundon the last business day prior to the date of distribution. Thenet realized capital gains of this Fund, if any, are distributedannually in December to those who hold units on the last busi-ness day prior to the date of distribution. If regular monthlydistributions are less than the Fund’s net income and net capi-tal gains for the year, we will make an additional distribution ofnet income in December. If the amount distributed exceedsthe Fund’s income and net realized capital gains, such excesswill constitute a return of capital. See the section above calledWhat are the risks of investing in the Fund? for the risks relat-ing to return of capital and the section called Income tax con-siderations for investors for tax considerations related to returnof capital.The amount of the distributions is not guaranteed and may changefrom time to time without notice to unitholders. We automati-cally reinvest distributions from the Fund in additional units ofthe Fund. Cash distributions are not available for this Fund.




$18.06 $55.93 $96.26 $208.90



$21.32 $65.80 $112.87 $242.88

Premium SeriesThe following table shows the indirect cost of investing in thePremium Series units. It is based on an initial investment of

HSBC U.S. Dollar Monthly Income Fund (continued)

44

$1,000, a constant total annual return for the Fund of 5% anda management expense ratio of 1.39% deducted at the end ofthe year.


$14.60 $45.35 $78.33 $171.54



$18.48 $57.21 $98.41 $213.34

Institutional SeriesThe following table shows the indirect cost of investing in theInstitutional Series units. It is based on an initial investment of



$0.53 $1.65 $2.90 $6.59

* This management expense ratio does not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 2.73% for the Manager Series without anywaiver or absorption of fees or expenses. The amount of expensesabsorbed or fees waived is at our discretion and can be terminatedby us at any time.

HSBC U.S. Dollar Monthly Income Fund (continued)

45

Fund details

Type of fund

Canadian Neutral Balanced


January 6, 1989



Start date

Investor Series: January 6, 1989Advisor Series: February 6, 2002Premium Series: May 31, 2010Manager Series: May 22, 2002Institutional Series: January 5, 2004





Investment objectivesThe fundamental investment objective of this Fund is to pro-vide a balance between income and long-term capital growthby primarily investing in Canadian equities, bonds and moneymarket securities. The Fund will invest primarily in companieswith a large market capitalization.We may only change the Fund’sfundamental investment objective with the approval of a major-ity of the votes cast at a meeting of the unitholders of the Fundheld to consider the change.

Investment strategiesThe Fund’s portfolio will be invested in Canadian equities, bondsand money market securities.The Fund may also invest in incometrust units, exchange-traded funds and foreign equities.The pro-portion of the portfolio invested in these different asset classeswill depend on the outlook for the economy and the finan-cial markets.

The Fund’s investment advisor will seek to add value by activemanagement both across and within asset classes.The Fund’sinvestment advisor will use tactical and strategic asset alloca-tion as well as active equity and fixed income management.

When investing in fixed income securities, the Fund investsprimarily in government bonds, corporate bonds, mortgage-backed securities, debentures and other fixed income securi-ties either issued or guaranteed by the Government of Canada,

a province or municipality of Canada, Canadian corporations orCanadian trusts that issue asset-backed securities. Fixed incomesecurities will generally be rated “A” or better by Standard &Poor’s or DBRS Limited. Money market securities will gener-ally be rated “A-1 (Low)” or better by Standard & Poor’s or “R-1(low)” or better by DBRS Limited.


With respect to investments in Canadian equities, this Fundwill invest in stocks representing a broad cross-section of indus-tries.





The Fund may invest, directly or indirectly through the use ofderivatives, a significant portion or even all of its net assets inunits of other mutual funds or exchange-traded funds, includ-ing funds managed by us or other members of the HSBC Group.The Fund’s investment advisor will only invest in units of otherfunds where such investment is compatible with the invest-ment objectives and strategies of the Fund. These invest-ments will be selected on the same basis as other invest-ments of the Fund. As at the date of this Simplified Prospectus,the Fund currently invests in units of the HSBC Global EquityFund; while there is no immediate intention to increase its invest-ment significantly in this Fund or in other Funds, the Fund’sinvestment advisor may do so in the future.

HSBC Canadian Balanced Fund

46





the Fund?The following are the principal risks associated with investingin the HSBC Canadian Balanced Fund:



� Credit risk

� Currency risk

� Derivative risk





� Market risk



� Security risk


In the 12 months immediately preceding May 21, 2017, theFund invested up to 26.64% of its net asset value in the HSBCGlobal Equity Fund. See the section called What are the risksof investing in mutual funds? for a description of concentra-tion risk.



Who should invest in this Fund?This Fund is suitable for investors who want to earn incomeand grow their capital. Investors in this Fund should have amedium-term investment time horizon and a low to mediumtolerance for risk in their returns. This Fund is not suitable forthose with a low tolerance for risk in their returns or for thosewho have a short time horizon for their investment.

Distribution policyThe net investment income of this Fund, if any, is distributedquarterly to those who hold units in the Fund on the last busi-ness day prior to the date of distribution.The net realized capi-tal gains of this Fund, if any, are distributed annually in Decem-ber to those who hold units on the last business day prior tothe date of distribution. We automatically reinvest distribu-tions from the Fund in additional units of the Fund unless youtell us in advance that you want to receive distributions in cash.Cash distributions are not available for HSBC Mutual Funds reg-istered plans.




$20.58 $63.57 $109.14 $235.30



$24.57 $75.60 $129.26 $275.81

Premium SeriesThe following table shows the indirect cost of investing in thePremium Series units. It is based on an initial investment of

HSBC Canadian Balanced Fund (continued)

47



$14.91 $46.32 $79.97 $174.99



$13.34 $41.49 $71.75 $157.65




$0.63 $1.98 $3.48 $7.90

* This management expense ratio does not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 12.42% for the Advisor Series and 3.74%for the Manager Series without any waiver or absorption of fees orexpenses. The amount of expenses absorbed or fees waived is atour discretion and can be terminated by us at any time.

HSBC Canadian Balanced Fund (continued)

48

Fund details

Type of fund

Canadian Dividend and Income Equity


January 16, 1995



Start date

Investor Series: January 16, 1995Advisor Series: February 18, 2002Premium Series: May 25, 2010Manager Series: January 21, 2002Institutional Series: August 29, 2005





Investment objectivesThe fundamental investment objective of this Fund is to pro-vide dividend income and medium- to long-term capital growthby investing primarily in high-yielding Canadian equities and fixedincome securities. We may only change the Fund’s fundamen-tal investment objective with the approval of a majority of thevotes cast at a meeting of the unitholders of the Fund held toconsider the change.

Investment strategiesThe Fund will be managed to allow Canadian residents to takeadvantage of the Canadian dividend tax credit or other tax-advantaged programs. The Fund’s investment advisor selectsa diversified portfolio of primarily Canadian common equities,preferred equities, income trust units and fixed income secu-rities. When investing in common equities and income trusts,the Fund’s investment advisor focuses on quality, stability andthe ability to grow dividends or distributable income over time.These stocks generally have a higher yield than the overall mar-ket. A portion of the Fund may also be invested in high-qualitypreferred shares that pay dividend income. Although there arefewer tax advantages, the Fund may invest in high-quality fixedincome securities to provide higher yields and steady income.

When investing in fixed income securities, the Fund investsprimarily in government bonds, corporate bonds, mortgage-backed securities, debentures and other fixed income securi-ties either issued or guaranteed by the Government of Canada,a province or municipality of Canada, Canadian corporations orCanadian trusts that issue asset-backed securities. Fixed incomesecurities will generally be rated “A” or better by Standard &Poor’s or DBRS Limited or an equivalent rating by another rec-ognized rating agency. Money market securities will generallybe rated “R-1 (low)” or better by DBRS Limited, “A-1 (Low)” orbetter by Standard & Poor’s or an equivalent rating by anotherrecognized rating agency.






The Fund may invest, directly or indirectly through the use ofderivatives, a significant portion or even all of its net assets inunits of other mutual funds or exchange-traded funds, includ-ing funds managed by us or other members of the HSBC Group.The Fund’s investment advisor will only invest in units of otherfunds where such investment is compatible with the invest-

HSBC Dividend Fund

49

ment objectives and strategies of the Fund. These invest-ments will be selected on the same basis as other invest-ments of the Fund. As at the date of this Simplified Prospectus,there is no immediate intention of investing a significant por-tion of the Fund’s net assets in other funds. However, the Fund’sinvestment advisor may do so in the future.




the Fund?

The following are the principal risks associated with investingin the HSBC Dividend Fund:


� Credit risk



� Market risk



� Security risk




This Fund is suitable for investors who want to earn income inthe form of dividends and grow their capital. Investors in thisFund should have a medium-term investment time horizon anda medium tolerance for risk in their returns. This Fund is notsuitable for those with a low or low-to-medium tolerance forrisk in their returns or for those who have a short time horizonfor their investment.

Distribution policy

The net investment income of this Fund, if any, is distributedquarterly to those who hold units in the Fund on the last busi-ness day prior to the date of distribution.The net realized capi-

tal gains of this Fund, if any, are distributed annually in Decem-ber to those who hold units on the last business day prior tothe date of distribution. We automatically reinvest distribu-tions from the Fund in additional units of the Fund unless youtell us in advance that you want to receive distributions in cash.Cash distributions are not available for HSBC Mutual Funds reg-istered plans.


by investors




$20.48 $63.26 $108.60 $234.21



$23.73 $73.08 $125.05 $267.41



$14.70 $45.68 $78.88 $172.69

Manager SeriesThe following table shows the indirect cost of investing in theManager Series units. It is based on an initial investment of$1,000, a constant total annual return for the Fund of 5% and

HSBC Dividend Fund (continued)

50

a management expense ratio of 1.21% deducted at the end ofthe year.


$12.71 $39.55 $68.44 $150.64




$0.42 $1.32 $2.32 $5.27

HSBC Dividend Fund (continued)

51


Canadian Equity


January 6, 1989



Start date

Investor Series: January 6, 1989Advisor Series: February 28, 2002Premium Series: June 2, 2010Manager Series: February 11, 2002Institutional Series: January 5, 2004




What does the Fund invest in?Investment objectivesThe fundamental investment objective of this Fund is to achievelong-term capital growth by investing in a broad range of pri-marily Canadian and some foreign equities from companies ina wide range of industries. The Canadian component will pri-marily be invested in companies included in the S&P/TSX Com-posite Index.We may only change the Fund’s fundamental invest-ment objective with the approval of a majority of the votes castat a meeting of the unitholders of the Fund held to considerthe change.

Investment strategiesThe Fund invests in a diversified portfolio of publicly traded com-mon shares, preferred shares, rights, special warrants, incometrust units and convertible securities.The Fund’s investment advisor splits the Canadian market-place into broad market sectors and attempts to add value throughsector selection depending on business-cycle considerations;however, security-specific analysis will ultimately determine theportfolio allocation to specific sectors.The selection criteria forstocks within each segment focuses on companies with theability to generate returns on investment exceeding their costof capital. This analysis is combined with an evaluation of themanagement team’s ability to efficiently redeploy capital intothe business and/or distribute excess capital to shareholders.A portion of the Fund’s holdings may be in the form of cash orcash equivalents.The Fund may invest up to 30% of its assets in foreign secu-rities. While the Fund intends to invest primarily in Canadianassets, the Fund may invest in foreign securities where theFund’s investment advisor believes that they might add valueto the Fund.

The Fund may use derivatives consistent with its investmentobjectives and as permitted by the Canadian securities regula-tory authorities.The Fund may use derivatives such as options,futures, covered calls, forward contracts and other similar instru-ments for hedging and non-hedging purposes. The Fund mayuse these instruments to provide exposure to securities, indi-ces or currencies without investing in them directly. Deriva-tives may be used to manage the risks to which the invest-ment portfolio is exposed. The Fund may also use derivativesas described in the introduction to this part of the SimplifiedProspectus in the section called Derivatives transactions.As a temporary defensive tactic, the Fund may maintain a sig-nificant portion of its assets in Canadian and U.S. short-termfixed income securities during periods of high market volatil-ity, in order to provide capital protection while awaiting morefavourable market conditions.The Fund may invest, directly or indirectly through the use ofderivatives, a significant portion or even all of its net assets inunits of other mutual funds or exchange-traded funds, includ-ing funds managed by us or other members of the HSBC Group.The Fund’s investment advisor will only invest in units of otherfunds where such investment is compatible with the invest-ment objectives and strategies of the Fund. These invest-ments will be selected on the same basis as other invest-ments of the Fund. As at the date of this Simplified Prospectus,there is no immediate intention of investing a significant por-tion of the Fund’s net assets in other funds. However, the Fund’sinvestment advisor may do so in the future.The Fund may enter into securities lending transactions, repur-chase transactions and reverse repurchase transactions, as per-mitted by the Canadian securities regulatory authorities, to earnadditional income for the Fund. For more information on howthe Fund engages in these types of transactions, see the sec-tion in the introduction to this part of the Simplified Prospec-tus called Securities lending transactions, repurchase transac-tions and reverse repurchase transactions.We may change the Fund’s investment strategies at our dis-cretion, at any time.

What are the risks of investing inthe Fund?The following are the principal risks associated with investingin the HSBC Equity Fund:� Large redemption risk� Market risk� Multiple series unit risk� Securities lending, repurchase and reverse repurchase trans-

action risk� Security risk� Tax loss restriction event riskFor a full explanation of these risks, see the section calledWhat are the risks of investing in mutual funds?In addition, as at May 31, 2017, two unitholders held units ofthe Fund representing approximately 26.44% and 18.28% ofthe net asset value of the Fund, respectively.These units could

HSBC Equity Fund

52

be sold by the unitholders at any time. If all or a substantialportion of these units are sold, there is a risk that the Fundmay have to alter its portfolio significantly to accommodate sucha large redemption.

Who should invest in this Fund?This Fund is suitable for investors who want to achieve long-term capital growth and have a long-term investment time hori-zon. Investors in this Fund should have a medium tolerance forrisk in their returns. This Fund is not suitable for those with alow or low-to-medium tolerance for risk in their returns or forthose who have a short or medium time horizon for their invest-ment.

Distribution policyThe net investment income of this Fund, if any, is distributedquarterly to those who hold units in the Fund on the last busi-ness day prior to the date of distribution.The net realized capi-tal gains of this Fund, if any, are distributed annually in Decem-ber to those who hold units on the last business day prior tothe date of distribution. We automatically reinvest distribu-tions from the Fund in additional units of the Fund unless youtell us in advance that you want to receive distributions in cash.Cash distributions are not available for HSBC Mutual Funds reg-istered plans.




$20.48 $63.26 $108.60 $234.21



$7.46 $23.33 $40.58 $90.57



$14.70 $45.68 $78.88 $172.69



$13.76 $42.78 $73.94 $162.30



$0.53 $1.65 $2.90 $6.59

* These management expense ratios do not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 4.87% for the Advisor Series and 1.38% forthe Manager Series without any waiver or absorption of fees orexpenses. The amount of expenses absorbed or fees waived is atour discretion and can be terminated by us at any time.

HSBC Equity Fund (continued)

53

Fund detailsType of fundCanadian Small/Mid Cap Equity

When the Fund was startedJanuary 16, 1995

Type of securities offeredInvestor Series, Advisor Series, Premium Series, ManagerSeries and Institutional Series mutual fund trust units

Start dateInvestor Series: January 16, 1995Advisor Series: August 12, 2005Premium Series: June 23, 2010Manager Series: May 17, 2006Institutional Series: August 29, 2005

Eligibility for investment in registered plansThe Fund is a qualified investment for RRSPs, RRIFs andother registered plans.*

Sub-advisors**Mawer Investment Management Ltd.Calgary, Alberta, CanadaTriasima Portfolio Management Inc.Montreal, Quebec, Canada


** We may hire or replace sub-advisors, or change the allocation ofassets among sub-advisors, at any time. See the section calledSelection of sub-advisors on page 23.

What does the Fund invest in?Investment objectivesThe fundamental investment objective of this Fund is to achievelong-term capital growth by investing primarily in a broad rangeof smaller Canadian companies.We may only change the Fund’sfundamental investment objective with the approval of a major-ity of the votes cast at a meeting of the unitholders of the Fundheld to consider the change.

Investment strategiesThe Fund will principally invest in equity securities of smallerand medium-sized Canadian companies from across a broadrange of industry groups. Investments include common shares,preferred shares, rights and special warrants, income trust unitsand convertible securities.A portion of the Fund’s holdings may be in the form of cash orcash equivalents.The Fund may invest up to 30% of its assets in foreign secu-rities. While the Fund intends to invest primarily in Canadianassets, the Fund may invest in foreign securities where theFund’s investment advisor believes that they might add valueto the Fund.The Fund may use derivatives consistent with its investmentobjectives and as permitted by the Canadian securities regula-tory authorities.The Fund may use derivatives such as options,

futures, covered calls, forward contracts and other similar instru-ments for hedging and non-hedging purposes. The Fund mayuse these instruments to provide exposure to securities, indi-ces or currencies without investing in them directly. Deriva-tives may be used to manage the risks to which the invest-ment portfolio is exposed. The Fund may also use derivativesas described in the introduction to this part of the SimplifiedProspectus in the section called Derivatives transactions.As a temporary defensive tactic, the Fund may maintain a sig-nificant portion of its assets in Canadian and U.S. short-termfixed income securities during periods of high market volatil-ity, in order to provide capital protection while awaiting morefavourable market conditions.The Fund may invest, directly or indirectly through the use ofderivatives, a significant portion or even all of its net assets inunits of other mutual funds or exchange-traded funds, includ-ing funds managed by us or other members of the HSBC Group.The Fund’s investment advisor will only invest in units of otherfunds where such investment is compatible with the invest-ment objectives and strategies of the Fund. These invest-ments will be selected on the same basis as other invest-ments of the Fund. As at the date of this Simplified Prospectus,there is no immediate intention of investing a significant por-tion of the Fund’s net assets in other funds. However, the Fund’sinvestment advisor may do so in the future.The Fund may enter into securities lending transactions, repur-chase transactions and reverse repurchase transactions, as per-mitted by the Canadian securities regulatory authorities, to earnadditional income for the Fund. For more information on howthe Fund engages in these types of transactions, see the sec-tion in the introduction to this part of the Simplified Prospec-tus called Securities lending transactions, repurchase transac-tions and reverse repurchase transactions.We may change the Fund’s investment strategies at our dis-cretion, at any time.

What are the risks of investing inthe Fund?The following are the principal risks associated with investingin the HSBC Small Cap Growth Fund:� Income trust risk� Liquidity risk� Market risk� Multiple series unit risk� Securities lending, repurchase and reverse repurchase trans-

action risk� Security risk� Small capitalization risk� Tax loss restriction event riskFor a full explanation of these risks, see the section calledWhat are the risks of investing in mutual funds?

Who should invest in this Fund?This Fund is suitable for investors seeking a higher level of long-term capital growth on their investment. Investors in this Fundshould have a long-term investment time horizon and a medium

HSBC Small Cap Growth Fund

54

to high tolerance for risk in their returns. This Fund is not suit-able for those with a low, low-to-medium or medium tolerancefor risk in their returns or for those who have a short or mediumtime horizon for their investment.

Distribution policyThe net investment income and net realized capital gains ofthis Fund, if any, are distributed annually in December to thosewho hold units in the Fund on the last business day prior tothe date of distribution. We automatically reinvest distribu-tions from the Fund in additional units of the Fund unless youtell us in advance that you want to receive distributions in cash.Cash distributions are not available for HSBC Mutual Funds reg-istered plans.




$23.52 $72.44 $124.00 $265.30



$28.46 $87.22 $148.54 $313.78



$17.75 $54.97 $94.64 $205.55



$12.18 $37.94 $65.68 $144.76



$0.63 $1.98 $3.48 $7.90


HSBC Small Cap Growth Fund (continued)

55

Fund details

Type of fund

Global Equity


January 9, 1998



Start date

Investor Series: January 9, 1998Advisor Series: March 10, 2006Premium Series: July 28, 2010Manager Series: December 12, 2005Institutional Series: January 5, 2004



Sub-advisor**

HSBC Global Asset Management (UK) LimitedLondon, UK


** We may hire or replace sub-advisors, or change the allocation ofassets among sub-advisors, at any time. See the section calledSelection of sub-advisors on page 23. HSBC Global Asset Man-agement (UK) Limited is related to us because it is our affiliate.


Investment objectivesThe fundamental investment objective of this Fund is to pro-vide long-term capital growth by investing primarily in a diver-sified portfolio of equity and equity-related securities of pub-licly traded companies located around the world. We may onlychange the Fund’s fundamental investment objective with theapproval of a majority of the votes cast at a meeting of theunitholders of the Fund held to consider the change.

Investment strategiesThe Fund will principally invest in equity and equity-related secu-rities of companies around the world and across a broad rangeof industry groups and diversified by country and currency.TheFund seeks to achieve its objective by investing primarily inequity securities of companies in developed markets and imple-menting a rule-based strategy that aims to generate better risk-adjusted returns compared to a traditional market-cap-weightedindex in the long term. The Fund will invest primarily in securi-ties included in the HSBC Economic Scale Index – World (the

“Index”), a fundamentally weighted index that covers developed-market companies where securities are selected and weightedaccording to the economic scale or “footprint” of companiesand countries using the notion of “Value Added” rather thantheir respective market capitalization.








HSBC Global Equity Fund

56


What are the risks of investing inthe Fund?The following are the principal risks associated with investingin the HSBC Global Equity Fund:� Currency risk� Derivative risk� Foreign market risk� Large redemption risk� Market risk� Multiple series unit risk� Securities lending, repurchase and reverse repurchase trans-

action risk� Security risk� Tax loss restriction event riskFor a full explanation of these risks, see the section calledWhat are the risks of investing in mutual funds?In addition, as at May 31, 2017, three unitholders held units oftheFund representingapproximately27.43%,22.17%and21.52%of the net asset value of the Fund, respectively. These unitscould be sold by the unitholders at any time. If all or a substan-tial portion of these units are sold, there is a risk that the Fundmay have to alter its portfolio significantly to accommodate sucha large redemption.If you are using the U.S. dollar purchase service, please referto the section called Optional services – U.S. dollar purchaseservice for a full explanation of this service.

Who should invest in this Fund?This Fund is suitable for investors seeking long-term capitalgrowth from equity securities issued in markets around theworld. Investors in this Fund should have a long-term invest-ment time horizon and a medium tolerance for risk in their returns.This Fund is not suitable for those with a low or low-to-medium tolerance for risk in their returns or for those who havea short or medium time horizon for their investment.

Distribution policyThe net investment income and net realized capital gains ofthis Fund, if any, are distributed annually in December to thosewho hold units in the Fund on the last business day prior tothe date of distribution. We automatically reinvest distribu-tions from the Fund in additional units of the Fund unless youtell us in advance that you want to receive distributions in cash.Cash distributions are not available for HSBC Mutual Funds reg-istered plans or units purchased under the U.S. dollar pur-chase service.

Fund expenses indirectly borneby investorsThe following information shows the Fund expenses indirectlyborne by investors investing in each series of the Fund for which

this information is available. It will help you to compare thecost of investing in this Fund with the cost of investing in othermutual funds. For more information about the fees you pay,see the section called Fees and expenses, and in particular,the subsection Fees and expenses paid directly by you.



$15.12 $46.96 $81.06 $177.28



$9.98 $31.14 $54.03 $119.77



$11.76 $36.65 $63.47 $140.04



$15.75 $48.89 $84.33 $184.13



$0.74 $2.32 $4.06 $9.21

* These management expense ratios do not include certain fees orexpenses that we have waived or absorbed, which would other-

HSBC Global Equity Fund (continued)

57

wise have been payable by the Fund. The management expenseratio would have been 6.63% for the Advisor Series and 3.67% forthe Manager Series without any waiver or absorption of fees or

expenses. The amount of expenses absorbed or fees waived is atour discretion and can be terminated by us at any time.

HSBC Global Equity Fund (continued)

58

Fund details

Type of fund

Global Equity


June 8, 2015


Investor Series, Advisor Series, Premium Series, ManagerSeries and Institutional Series mutual fund trust units.Units of the Fund are only available in U.S. dollars.

Start date

Investor Series: October 19, 2015Advisor Series: October 22, 2015Premium Series: October 20, 2015Manager Series: October 22, 2015Institutional Series: October 19, 2015



Sub-advisor**





Investment objectivesThe fundamental investment objective of this Fund is to pro-vide long-term capital growth by investing primarily in equityand equity-related securities of companies located around theworld. The Fund seeks to achieve lower volatility compared tothe broader global equity market.We may only change the Fund’sfundamental investment objective with the approval of a major-ity of the votes cast at a meeting of the unitholders of the Fundheld to consider the change.

Investment strategiesThe Fund principally invests in equity and equity-related secu-rities of companies around the world. Through portfolio con-struction, the Fund aims for lower volatility relative to the broaderglobal equity market, as represented by its benchmark index.As of the date of this Simplified Prospectus, the Fund’s bench-mark index is the MSCI All CountryWorld Index.The Fund usesportfolio optimization to lower overall portfolio volatility by select-

ing a combination of lower-volatility stocks, as well as higher-volatility stocks that are less correlated and thereby diversify-ing the portfolio. The Fund may rely on market research andquantitative analysis to estimate individual stock volatility andintra-stock correlation as part of its portfolio optimization pro-cess. It normally invests across a range of market capitaliza-tions without any capitalization restriction.




As a temporary defensive tactic, the Fund’s investment advi-sor may maintain a significant portion of the Fund’s assets inCanadian and U.S. short-term fixed income securities duringperiods of high market volatility, in order to provide capital pro-tection while awaiting more favourable market conditions.



The Fund’s investment strategy may involve the Fund’s invest-ment advisor actively and frequently buying and selling the Fund’sunderlying investments. As a result, the Fund may have a highportfolio turnover rate. The higher a Fund’s portfolio turnoverrate in a year, the greater the trading costs payable by the Fundand, assuming the Fund is realizing capital gains from its saleof securities, the greater the chance of an investor receiving

HSBC Global Equity Volatility Focused Fund

59

taxable capital gains in that year from the Fund. A high portfo-lio turnover rate should not be taken as a reflection of the Fund’s per-formance.



the Fund?

The following are the principal risks associated with investingin the HSBC Global Equity Volatility Focused Fund:

� Currency risk

� Derivative risk



� Market risk



� Security risk





This Fund is suitable for investors with U.S. dollars to investwho are seeking long-term capital growth from equity securi-ties issued in markets around the world. Investors in this Fundshould have a long-term investment time horizon and a mediumtolerance for risk in their returns. This Fund is not suitable forthose with a low or low-to-medium tolerance for risk, or forthose who have a short or medium time horizon for their invest-ment.

Distribution policy

The net investment income and net realized capital gains ofthis Fund, if any, are distributed annually in December to thosewho hold units in the Fund on the last business day prior tothe date of distribution. We automatically reinvest distribu-tions from the Fund in additional units of the Fund. Cash distri-butions are not available for this Fund.

Fund expenses indirectly borneby investorsThe following information shows the Fund expenses indirectlyborne by investors investing in each series of the Fund for whichthis information is available. It will help you to compare thecost of investing in this Fund with the cost of investing in othermutual funds.The costs of investing in Advisor Series and Man-ager Series units are not shown because as of the date of thisSimplified Prospectus, no Advisor Series or Manager Seriesunits of the Fund have been issued and there are no actualmanagement expense ratios on which to base the calcula-tions. For more information about the fees you pay, see thesection called Fees and expenses, and in particular, the sub-section Fees and expenses paid directly by you.



$24.89 $76.55 $130.83 $278.94



$18.90 $58.48 $100.56 $217.77



$2.31 $7.27 $12.71 $28.74

* These management expense ratios do not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 2.60% for the Investor Series, 2.01% forthe Premium Series and 0.42% for the Institutional Series withoutany waiver or absorption of fees or expenses. The amount ofexpenses absorbed or fees waived is at our discretion and can beterminated by us at any time.

HSBC Global Equity Volatility Focused Fund (continued)

60

Fund details

Type of fund

U.S. Equity


November 9, 1994



Start date

Investor Series: November 9, 1994Advisor Series: February 28, 2002Premium Series: September 28, 2010Manager Series: December 12, 2005Institutional Series: August 29, 2005



Sub-advisor**

Los Angeles Capital Management and Equity Research, Inc.Los Angeles, California, USA


** We may hire or replace sub-advisors, or change the allocation ofassets among sub-advisors, at any time. See the section calledSelection of sub-advisors on page 23.

What does the Fund invest in?Investment objectivesThe fundamental investment objective of this Fund is to achievelong-term capital growth by investing primarily in a broad rangeof U.S. companies. We may only change the Fund’s fundamen-tal investment objective with the approval of a majority of thevotes cast at a meeting of the unitholders of the Fund held toconsider the change.

Investment strategiesThe Fund will principally invest in equity securities of large capi-talization U.S. companies from across a broad range of indus-try groups. Investments may include common shares, pre-ferred shares, rights and special warrants, andconvertible securities.The Fund may also invest in securities of companies based out-side the U.S.While the Fund intends to invest primarily in secu-rities of U.S. companies, it may invest in securities of non-U.S.companies where the Fund’s investment advisor believes theymay add value to the Fund.

A portion of the Fund’s holdings may be in the form of cash orcash equivalents.The Fund may invest up to 100% of its assets in foreign secu-rities.The Fund may use derivatives consistent with its investmentobjectives and as permitted by the Canadian securities regula-tory authorities.The Fund may use derivatives such as options,futures, covered calls, forward contracts and other similar instru-ments for hedging and non-hedging purposes. The Fund mayuse these instruments to provide exposure to securities, indi-ces or currencies without investing in them directly. Deriva-tives may be used to manage the risks to which the invest-ment portfolio is exposed. The Fund may also use derivativesas described in the introduction to this part of the SimplifiedProspectus in the section called Derivatives transactions.As a temporary defensive tactic, the Fund may maintain a sig-nificant portion of its assets in Canadian and U.S. short-termfixed income securities during periods of high market volatil-ity, in order to provide capital protection while awaiting morefavourable market conditions.The Fund may invest, directly or indirectly through the use ofderivatives, a significant portion or even all of its net assets inunits of other mutual funds or exchange-traded funds, includ-ing funds managed by us or other members of the HSBC Group.The Fund’s investment advisor will only invest in units of otherfunds where such investment is compatible with the invest-ment objectives and strategies of the Fund. These invest-ments will be selected on the same basis as other invest-ments of the Fund. As at the date of this Simplified Prospectus,there is no immediate intention of investing a significant por-tion of the Fund’s net assets in other funds. However, the Fund’sinvestment advisor may do so in the future.The Fund may enter into securities lending transactions, repur-chase transactions and reverse repurchase transactions, as per-mitted by the Canadian securities regulatory authorities, to earnadditional income for the Fund. For more information on howthe Fund engages in these types of transactions, see the sec-tion in the introduction to this part of the Simplified Prospec-tus called Securities lending transactions, repurchase transac-tions and reverse repurchase transactions.The Fund’s investment strategy may involve the Fund’s invest-ment advisor actively and frequently buying and selling the Fund’sunderlying investments. As a result, the Fund may have a highportfolio turnover rate. The higher a Fund’s portfolio turnoverrate in a year, the greater the trading costs payable by the Fundand, assuming the Fund is realizing capital gains from its saleof securities, the greater the chance of an investor receivingtaxable capital gains in that year from the Fund. A high portfo-lio turnover rate should not be taken as a reflection of the Fund’s per-formance.We may change the Fund’s investment strategies at our dis-cretion, at any time.

What are the risks of investing inthe Fund?The following are the principal risks associated with investingin the HSBC U.S. Equity Fund:� Currency risk

HSBC U.S. Equity Fund

61

� Derivative risk


� Market risk



� Security risk



If you are using the U.S. dollar purchase service, please referto the section called Optional services – U.S. dollar purchaseservice for a full explanation of this service.


This Fund is suitable for investors seeking long-term capitalappreciation. Investors in this Fund should have a long-terminvestment time horizon and a medium tolerance for risk intheir returns. This Fund is not suitable for those with a low orlow-to-medium tolerance for risk in their returns or for thosewho have a short or medium time horizon for their investment.

Distribution policy

The net investment income of this Fund, if any, is distributedquarterly to those who hold units in the Fund on the last busi-ness day prior to the date of distribution.The net realized capi-tal gains of this Fund, if any, are distributed annually in Decem-ber to those who hold units on the last business day prior tothe date of distribution. We automatically reinvest distribu-tions from the Fund in additional units of the Fund unless youtell us in advance that you want to receive distributions in cash.Cash distributions are not available for HSBC Mutual Funds reg-istered plans or units purchased under the U.S. dollar pur-chase service.


by investors





$23.63 $72.76 $124.52 $266.36



$28.88 $88.47 $150.61 $317.80



$17.75 $54.97 $94.64 $205.55



$16.70 $51.77 $89.22 $194.33



$1.37 $4.30 $7.52 $17.06


HSBC U.S. Equity Fund (continued)

62

Fund details

Type of fund

European Equity


November 9, 1994



Start date

Investor Series: November 9, 1994Advisor Series: February 18, 2002Premium Series: June 22, 2010Manager Series: January 21, 2002Institutional Series: August 29, 2005



Sub-advisor**

HSBC Global Asset Management (France)Paris, France


** We may hire or replace sub-advisors, or change the allocation ofassets among sub-advisors, at any time. See the section calledSelection of sub-advisors on page 23. HSBC Global Asset Man-agement (France) is related to us because it is our affiliate.

What does the Fund invest in?Investment objectivesThe fundamental investment objective of this Fund is to achievelong-term capital growth by investing in a broad range of largeEuropean-based companies.These companies are primarily fromthe United Kingdom, France, Germany, Italy and other Euro-pean Union member nations. The Fund is broadly diversifiedacross industries and countries in the region.We may only changethe Fund’s fundamental investment objective with the approvalof a majority of the votes cast at a meeting of the unitholdersof the Fund held to consider the change.

Investment strategiesThe Fund follows a core style, bottom-up approach and investsprimarily in equity and equity-related securities of large, estab-lished companies located in Europe.

The Fund may also invest in large, well-established companiesin emerging markets.

The Fund’s investment advisor seeks to add value through stockselection by selecting those companies that exhibit good growthpotential and that trade at attractive valuations.




As a temporary defensive tactic, the Fund may maintain a sig-nificant portion of its assets in Canadian, U.S. and Europeanshort-term fixed income securities during periods of high mar-ket volatility, in order to provide capital protection while await-ing more favourable market conditions.





HSBC European Fund

63

What are the risks of investing inthe Fund?The following are the principal risks associated with investingin the HSBC European Fund:� Currency risk� Foreign market risk� Market risk� Multiple series unit risk� Securities lending, repurchase and reverse repurchase trans-

action risk� Security risk� Tax loss restriction event riskFor a full explanation of these risks, see the section calledWhat are the risks of investing in mutual funds?If you are using the U.S. dollar purchase service, please referto the section called Optional services – U.S. dollar purchaseservice for a full explanation of this service.

Who should invest in this Fund?This Fund is suitable for investors seeking long-term capitalappreciation from equity securities issued in markets outsideof North America. Investors in this Fund should have a long-term investment time horizon and a medium tolerance for riskin their returns. This Fund is not suitable for those with a lowor low-to-medium tolerance for risk in their returns or for thosewho have a short or medium time horizon for their investment.






$25.31 $77.81 $132.93 $283.11



$3.15 $9.90 $17.30 $39.04



$19.53 $60.39 $103.78 $224.37



$17.01 $52.73 $90.85 $197.71



$4.10 $12.86 $22.44 $50.53


HSBC European Fund (continued)

64


Asia Pacific ex-Japan Equity


November 22, 1993



Start date

Investor Series: November 22, 1993Advisor Series: June 10, 2004Premium Series: June 22, 2010Manager Series: December 28, 2001Institutional Series: December 15, 2003



Sub-advisor**

HSBC Global Asset Management (Hong Kong) LimitedHong Kong SAR


** We may hire or replace sub-advisors, or change the allocation ofassets among sub-advisors, at any time. See the section calledSelection of sub-advisors on page 23. HSBC Global Asset Man-agement (Hong Kong) Limited is related to us because it isour affiliate.

What does the Fund invest in?Investment objectivesThe fundamental investment objective of this Fund is to pro-vide long-term capital growth by investing primarily in equitysecurities listed on recognized stock exchanges of countries inAsia and the Pacific Rim, including Hong Kong SAR, Taiwan,South Korea, Singapore, China, Malaysia, Thailand, Indonesia,the Philippines and Australia, but excluding Japan.We may onlychange the Fund’s fundamental investment objective with theapproval of a majority of the votes cast at a meeting of theunitholders of the Fund held to consider the change.

Investment strategiesThe Fund invests in a diversified portfolio of foreign securities,including rights, warrants and options. When investing in equi-ties, the Fund’s investment advisor chooses quality compa-nies that may offer superior growth prospects but are tradingat attractive valuations.The Fund’s investment advisor will alsoevaluate the quality of management at these companies, whichis particularly important in the Asia Pacific region.A portion of the Fund’s holdings may be in the form of cash orcash equivalents, including money market funds.

The Fund may invest up to 100% of its assets in foreign secu-rities.The Fund may use derivatives consistent with its investmentobjectives and as permitted by the Canadian securities regula-tory authorities.The Fund may use derivatives such as options,futures, covered calls, forward contracts and other similar instru-ments for hedging and non-hedging purposes. The Fund mayuse these instruments to provide exposure to securities, indi-ces or currencies without investing in them directly. Deriva-tives may be used to manage the risks to which the invest-ment portfolio is exposed. The Fund may also use derivativesas described in the introduction to this part of the SimplifiedProspectus in the section called Derivatives transactions.As a temporary defensive tactic, the Fund may maintain a sig-nificant portion of its assets in Canadian and U.S. short-termfixed income securities during periods of high market volatil-ity, in order to provide capital protection while awaiting morefavourable market conditions.The Fund may invest, directly or indirectly through the use ofderivatives, a significant portion or even all of its net assets inunits of other mutual funds or exchange-traded funds, includ-ing funds managed by us or other members of the HSBC Group.The Fund’s investment advisor will only invest in units of otherfunds where such investment is compatible with the invest-ment objectives and strategies of the Fund. These invest-ments will be selected on the same basis as other invest-ments of the Fund. As at the date of this Simplified Prospectus,there is no immediate intention of investing a significant por-tion of the Fund’s net assets in other funds. However, the Fund’sinvestment advisor may do so in the future.The Fund may enter into securities lending transactions, repur-chase transactions and reverse repurchase transactions, as per-mitted by the Canadian securities regulatory authorities, to earnadditional income for the Fund. For more information on howthe Fund engages in these types of transactions, see the sec-tion in the introduction to this part of the Simplified Prospec-tus called Securities lending transactions, repurchase transac-tions and reverse repurchase transactions.The Fund’s investment strategy may involve the Fund’s invest-ment advisor actively and frequently buying and selling the Fund’sunderlying investments. As a result, the Fund may have a highportfolio turnover rate. The higher a Fund’s portfolio turnoverrate in a year, the greater the trading costs payable by the Fundand, assuming the Fund is realizing capital gains from its saleof securities, the greater the chance of an investor receivingtaxable capital gains in that year from the Fund. A high portfo-lio turnover rate should not be taken as a reflection of the Fund’s per-formance.This Fund may experience a high degree of volatility.We may change the Fund’s investment strategies at our dis-cretion, at any time.

What are the risks of investing inthe Fund?The following are the principal risks associated with investingin the HSBC AsiaPacific Fund:� Currency risk

HSBC AsiaPacific Fund

65

� Foreign market risk� Liquidity risk� Market risk� Multiple series unit risk� Securities lending, repurchase and reverse repurchase trans-

action risk� Security risk� Tax loss restriction event riskFor a full explanation of these risks, see the section calledWhat are the risks of investing in mutual funds?If you are using the U.S. dollar purchase service, please referto the section called Optional services – U.S. dollar purchaseservice for a full explanation of this service.

Who should invest in this Fund?This Fund is suitable for investors seeking long-term capitalappreciation from equity securities issued in markets outsideof North America. Investors in this Fund should have a long-term investment time horizon and a medium to high tolerancefor risk in their returns.This Fund is not suitable for those witha low, low-to-medium or medium tolerance for risk in their returnsor for those who have a short or medium time horizon fortheir investment.






$26.15 $80.32 $137.11 $291.38



$29.40 $90.03 $153.18 $322.81



$19.95 $61.67 $105.93 $228.76



$2.21 $6.94 $12.13 $27.45



$3.78 $11.87 $20.73 $46.71

* These management expense ratios do not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 8.86% for the Advisor Series, 1.99% for thePremium Series and 3.97% for the Manager Series without anywaiver or absorption of fees or expenses. The amount of expensesabsorbed or fees waived is at our discretion and can be terminatedby us at any time.

HSBC AsiaPacific Fund (continued)

66

Fund details

Type of fund

Emerging Markets Equity


December 16, 2003



Start date

Investor Series: May 31, 2004Advisor Series: June 24, 2004Premium Series: May 27, 2010Manager Series: June 24, 2004Institutional Series: May 31, 2004



Sub-advisor**





Investment objectivesThe fundamental investment objective of this Fund is to pro-vide long-term capital growth by investing primarily in a diver-sified portfolio of equity and equity-related securities of pub-licly traded companies registered, or with an official listing, ona stock exchange in the People’s Republic of China, as well asinvesting in securities of public companies that have a signifi-cant business or investment link with China.We may only changethe Fund’s fundamental investment objective with the approvalof a majority of the votes cast at a meeting of the unitholdersof the Fund held to consider the change.

Investment strategiesThe Fund will invest primarily in equity and equity-related secu-rities issued by large, actively traded companies. The portfolio

may also include securities in appropriate smaller companies.The Fund may also invest in Chinese warrants and simi-lar securities.

The Fund will invest directly in securities listed on stock exchangesin China (including Hong Kong SAR) that have been estab-lished and approved by applicable regulatory authorities, andalso in securities of companies listed on other stock exchangesoutside of China that have a significant business or investmentlink with China. For this purpose, the Fund will generally onlyinvest in companies listed outside China where those compa-nies are owned or controlled by Chinese interests, or where asignificant portion of the earnings, production facilities, turn-over, assets or investments of such companies are based in orderived from China.

The Fund’s portfolio will be developed using a combination of“top-down” and “bottom-up” approaches. The Fund’s invest-ment advisor uses sector research to focus on economic fun-damentals to determine how they affect the domestic busi-ness cycle.The Fund’s investment advisor then evaluates earningsgrowth, interest-rate sensitivity, management quality and liquid-ity to select stocks best placed to benefit from the prevail-ing conditions.




As a temporary defensive tactic, the Fund may maintain a por-tion of its assets in Canadian and U.S. short-term fixed incomesecurities during periods of high market volatility, in order toprovide capital protection while awaiting more favourable mar-ket conditions.

The Fund may invest, directly or indirectly through the use ofderivatives, a significant portion or even all of its net assets inunits of other mutual funds or exchange-traded funds, includ-ing funds managed by us or other members of the HSBC Group.The Fund’s investment advisor will only invest in units of otherfunds where such investment is compatible with the invest-ment objectives and strategies of the Fund. These invest-ments will be selected on the same basis as other invest-

HSBC Chinese Equity Fund

67

ments of the Fund. As at the date of this Simplified Prospectus,there is no immediate intention of investing a significant por-tion of the Fund’s net assets in other funds. However, the Fund’sinvestment advisor may do so in the future.


This Fund may experience a high degree of volatility.



the Fund?

The following are the principal risks associated with investingin the HSBC Chinese Equity Fund:


� Currency risk


� Liquidity risk

� Market risk



� Security risk


In the 12 months immediately preceding May 21, 2017, theFund invested up to 10.52% of its net asset value in shares ofAlibaba Group Holding Ltd., 10.20% of its net asset value inshares of Tencent Holdings Ltd. and 10.15% of its net assetvalue in shares of China Construction Bank. See the sectioncalled What are the risks of investing in mutual funds? for adescription of concentration risk.




This Fund is suitable for investors seeking long-term capitalgrowth and who have a long-term investment time horizon.Investors in this Fund should have a high tolerance for risk in

their returns. This Fund is not suitable for those with a low,low-to-medium, medium or medium-to-high tolerance for riskin their returns or for those who have a short or medium timehorizon for their investment.

Distribution policy

The net investment income and net realized capital gains ofthis Fund, if any, are distributed annually in December to thosewho hold units in the Fund on the last business day prior tothe date of distribution. We automatically reinvest distribu-tions from the Fund in additional units of the Fund unless youtell us in advance that you want to receive distributions in cash.Cash distributions are not available for HSBC Mutual Funds reg-istered plans or units purchased under the U.S. dollar pur-chase service.


by investors




$27.20 $83.46 $142.32 $301.63



$28.67 $87.84 $149.57 $315.80

Premium SeriesThe following table shows the indirect cost of investing in thePremium Series units. It is based on an initial investment of$1,000, a constant total annual return for the Fund of 5% and

HSBC Chinese Equity Fund (continued)

68

a management expense ratio of 2.02% deducted at the end ofthe year.


$21.21 $65.48 $112.33 $241.80



$21.00 $64.84 $111.27 $239.64




$1.79 $5.62 $9.83 $22.27

* This management expense ratio does not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 2.09% for the Manager Series without anywaiver or absorption of fees or expenses. The amount of expensesabsorbed or fees waived is at our discretion and can be terminatedby us at any time.

HSBC Chinese Equity Fund (continued)

69

Fund details

Type of fund



December 16, 2008



Start date

Investor Series: October 26, 2009Advisor Series: November 2, 2009Premium Series: July 14, 2010Manager Series: October 29, 2009Institutional Series: October 26, 2009



Sub-advisor**





Investment objectivesThe fundamental investment objective of this Fund is to pro-vide long-term capital growth by investing primarily in a diver-sified portfolio of equity and equity-related securities of pub-licly traded companies registered, or with an official listing, ona stock exchange in India, as well as investing in securities ofpublic companies based outside of India that have a significantbusiness or investment link with India. We may only changethe Fund’s fundamental investment objective with the approvalof a majority of the votes cast at a meeting of the unitholdersof the Fund held to consider the change.

Investment strategiesThe Fund will invest primarily in equity and equity-related secu-rities issued by medium to large actively traded companies.The portfolio may also include securities in appropriate smaller

companies. The Fund may invest in equity-related securitiesincluding, but not limited to, warrants, American depositaryreceipts, global depositary receipts and participation notes.

The Fund will invest directly in securities listed on stock exchangesin India that have been established and approved by applicableregulatory authorities, and also in securities of companies listedon other stock exchanges outside of India that have a signifi-cant business or investment link with India.The Fund will gen-erally only invest in companies listed outside India where thosecompanies are owned or controlled by Indian interests, or wherea significant portion of the earnings, production facilities, assetsor investments of such companies are based in or derived fromIndia. In addition, the Fund may invest all or substantially all ofthe Fund’s assets in securities of exchange-traded funds or otherspecial-purpose investment vehicles that provide the Fund withexposure to these types of investments, where such invest-ment is permitted by applicable securities laws.

The Fund’s portfolio will be developed using a combination of“top-down” and “bottom-up” approaches. The Fund’s invest-ment advisor uses sector research to focus on economic fun-damentals to determine how they affect the domestic busi-ness cycle.The Fund’s investment advisor then evaluates earningsgrowth, interest-rate sensitivity, management quality and liquid-ity to select stocks best placed to benefit from the prevail-ing conditions.





The Fund may invest, directly or indirectly through the use ofderivatives, a significant portion or even all of its net assets inunits of other mutual funds or exchange-traded funds, includ-ing funds managed by us or other members of the HSBC Group.The Fund’s investment advisor will only invest in units of other

HSBC Indian Equity Fund

70

funds where such investment is compatible with the invest-ment objectives and strategies of the Fund. The investmentswill be selected on the same basis as other investments ofthe Fund.






the Fund?

The following are the principal risks associated with investingin the HSBC Indian Equity Fund:

� Currency risk


� Liquidity risk

� Market risk



� Security risk





This Fund is suitable for investors seeking long-term capitalgrowth and who have a long-term investment time horizon.Investors in this Fund should have a high tolerance for risk in

their returns. This Fund is not suitable for those with a low,low-to-medium, medium or medium-to-high tolerance for riskin their returns or for those who have a short or medium timehorizon for their investment.

Distribution policy



by investors




$34.23 $104.32 $176.63 $367.64



$34.86 $106.17 $179.66 $373.33

Premium SeriesThe following table shows the indirect cost of investing in thePremium Series units. It is based on an initial investment of$1,000, a constant total annual return for the Fund of 5% and

HSBC Indian Equity Fund (continued)

71

a management expense ratio of 2.57%* deducted at the endof the year.


$26.99 $82.83 $141.28 $299.58



$23.63 $72.76 $124.52 $266.36


$1,000, a constant total annual return for the Fund of 5% anda management expense ratio of 0.85%* deducted at the endof the year.


$8.93 $27.89 $48.44 $107.69

* These management expense ratios do not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 3.43% for the Investor Series, 3.75% forthe Advisor Series, 2.93% for the Premium Series, 3.46% for theManager Series and 3.18% for the Institutional Series without anywaiver or absorption of fees or expenses. The amount of expensesabsorbed or fees waived is at our discretion and can be terminatedby us at any time.

HSBC Indian Equity Fund (continued)

72

Fund details

Type of fund



November 1, 1994



Start date

Investor Series: November 1, 1994Advisor Series: June 15, 2004Premium Series: October 14, 2010Manager Series: September 27, 2007Institutional Series: May 27, 2004



Sub-advisor**





Investment objectivesThe fundamental investment objective of this Fund is to pro-vide long-term capital growth by investing primarily in equitiesof companies of all sizes in emerging markets around the world,including Latin American nations such as Brazil and Mexico,European nations such as Russia and Turkey, Middle Easternand African nations such as Israel and South Africa, and Asiannations such as Indonesia and Malaysia. We may only changethe Fund’s fundamental investment objective with the approvalof a majority of the votes cast at a meeting of the unitholdersof the Fund held to consider the change.

Investment strategiesThis Fund will invest primarily in the stocks of publicly tradedcompanies whose main operations are located in the emerg-ing markets and economies of the world. This includes securi-

ties of companies domiciled or listed on stock exchanges indeveloped countries, but which have a significant business orinvestment link with an emerging country. For this purpose,the Fund will generally only invest in companies domiciled orlisted in developed markets where those companies are ownedor controlled by emerging market entities, or where a signifi-cant portion of the earnings, production facilities, turnover, assetsor investments of such companies are based in or derived fromemerging market countries.

This Fund is managed using a combination “top-down” and“bottom-up” approach. The top-down decisions are based pri-marily on politics, fiscal picture, inflation and monetary policy,as well as company forecasts and valuation levels.When choos-ing individual stocks, the team considers the fundamentals ofthe company, the main drivers of growth and rates of growthexpected in the future, shareholder structure, corporate gover-nance issues and management strength and ability.






The Fund may enter into securities lending transactions, repur-chase transactions and reverse repurchase transactions, as per-mitted by the Canadian securities regulatory authorities, to earn

HSBC Emerging Markets Fund

73

additional income for the Fund. For more information on howthe Fund engages in these types of transactions, see the sec-tion in the introduction to this part of the Simplified Prospec-tus called Securities lending transactions, repurchase transac-tions and reverse repurchase transactions.





the Fund?

The following are the principal risks associated with investingin the HSBC Emerging Markets Fund:

� Currency risk



� Liquidity risk

� Market risk



� Security risk



In addition, as at May 31, 2017, three unitholders held units oftheFund representingapproximately31.58%,24.57%and11.76%of the net asset value of the Fund, respectively. These unitscould be sold by the unitholders at any time. If all or a substan-tial portion of these units are sold, there is a risk that the Fundmay have to alter its portfolio significantly to accommodate sucha large redemption.



This Fund is suitable for investors seeking long-term capitalappreciation from equity securities issued in non-North Ameri-can markets. Investors in this Fund should have a long-term

investment time horizon and a high tolerance for risk in theirreturns. This Fund is not suitable for those with a low, low-to-medium, medium or medium-to-high tolerance for risk in theirreturns or for those who have a short or medium time horizonfor their investment.

Distribution policy



by investors

The following information shows the Fund expenses indirectlyborne by investors investing in each series of the Fund for whichthis information is available. It will help you to compare thecost of investing in this Fund with the cost of investing in othermutual funds.The costs of investing in Advisor Series and Man-ager Series units are not shown because no Advisor Series orManager Series units of the Fund were outstanding during thelast completed financial year and there are no actual manage-ment expense ratios on which to base the calculations. Formore information about the fees you pay, see the section calledFees and expenses, and in particular, the subsection Fees andexpenses paid directly by you.



$29.09 $89.09 $151.64 $319.81



$25.52 $78.43 $133.98 $285.18

HSBC Emerging Markets Fund (continued)

74



$3.15 $9.90 $17.30 $39.04

HSBC Emerging Markets Fund (continued)

75

Fund details

Type of fund



December 16, 2006



Start date

Investor Series: April 13, 2007Advisor Series: April 12, 2007Premium Series: June 15, 2010Manager Series: April 17, 2007Institutional Series: April 9, 2007



Sub-advisor**





Investment objectivesThe fundamental investment objective of this Fund is to pro-vide long-term capital growth by investing primarily in equitiesand equity-related securities of companies in selected emerg-ing market countries. We may only change the Fund’s funda-mental investment objective with the approval of a majority ofthe votes cast at a meeting of the unitholders of the Fund heldto consider the change.

Investment strategiesThe Fund will invest primarily in equity and equity-related secu-rities issued by large, actively traded companies located in“Emerg-ing Giant” countries. The portfolio may also include securitiesin appropriate smaller companies.The Fund may also invest inwarrants and similar securities.

The list of Emerging Giant countries changes from time to time,and the Fund’s investment advisor will add or remove coun-tries from the list of Emerging Giant countries from time totime and at its sole discretion. The Fund’s investment advisorconsiders factors such as gross domestic product, demograph-ics, economic data and policies to assess whether a countryis considered to be an Emerging Giant.The Fund’s investmentadvisor currently considers Brazil, Russia, India and China tobe Emerging Giant countries.

The Fund will invest directly in securities listed on a major stockexchange or other registered market in the Emerging Giant coun-tries that have been established and approved by applicableregulatory authorities. The Fund may also invest in securitiesof companies listed on stock exchanges outside of EmergingGiant countries that have a significant business or investmentlink with Emerging Giant countries. For this purpose, the Fundwill generally only invest in companies listed outside Emerg-ing Giant countries where a significant proportion of those com-panies’ earnings, production facilities, turnover, assets or invest-ments are based in or derived from Emerging Giant countries.

The Fund’s investment advisor seeks to add value through stockselection by selecting those companies that exhibit good growthpotential and that trade at attractive valuations.The Fund’s invest-ment advisor may tactically allocate between the Emerging Giantcountries and may over- or under-allocate between the Emerg-ing Giant countries as considered appropriate.





The Fund may invest, directly or indirectly through the use ofderivatives, a significant portion or even all of its net assets inunits of other mutual funds or exchange-traded funds, includ-ing funds managed by us or other members of the HSBC Group.

HSBC BRIC Equity Fund

76

The Fund’s investment advisor will only invest in units of otherfunds where such investment is compatible with the invest-ment objectives and strategies of the Fund. These invest-ments will be selected on the same basis as other invest-ments of the Fund. As at the date of this Simplified Prospectus,there is no immediate intention of investing a significant por-tion of the Fund’s net assets in other funds. However, the Fund’sinvestment advisor may do so in the future.





the Fund?

The following are the principal risks associated with investingin the HSBC BRIC Equity Fund:

� Currency risk

� Derivative risk


� Liquidity risk

� Market risk



� Security risk





This Fund is suitable for investors seeking long-term capitalgrowth and who have a long-term investment time horizon.Investors in this Fund should have a high tolerance for risk intheir returns. This Fund is not suitable for those with a low,low-to-medium, medium or medium-to-high tolerance for riskin their returns or for those who have a short or medium timehorizon for their investment.

Distribution policy



by investors




$30.56 $93.46 $158.83 $333.72



$33.81 $103.08 $174.61 $363.83



$25.83 $79.38 $135.55 $288.28

Manager SeriesThe following table shows the indirect cost of investing in theManager Series units. It is based on an initial investment of

HSBC BRIC Equity Fund (continued)

77

$1,000, a constant total annual return for the Fund of 5% anda management expense ratio of 2.26%* deducted at the endof the year.


$23.73 $73.08 $125.05 $267.41



$4.94 $15.48 $27.00 $60.66

* These management expense ratios do not include certain fees orexpenses that we have waived or absorbed, which would other-

wise have been payable by the Fund. The management expenseratio would have been 3.43% for the Advisor Series, 2.53% for thePremium Series and 3.30% for the Manager Series without anywaiver or absorption of fees or expenses. The amount of expensesabsorbed or fees waived is at our discretion and can be terminatedby us at any time.

HSBC BRIC Equity Fund (continued)

78

Fund details

Type of fund



December 16, 2004


Investor Series, Advisor Series, Manager Series andInstitutional Series mutual fund trust units

Start date

Investor Series: August 29, 2005Advisor Series: January 23, 2007Manager Series: December 16, 2005Institutional Series: December 1, 2013





Investment objectivesThe fundamental investment objective of this Fund is to pro-vide investors with a diversified portfolio of investments acrossseveral asset classes, providing primarily capital preservationand interest income with some potential for low to moderatelong-term capital growth, by investing primarily in units of otherFunds. We may only change the Fund’s fundamental invest-ment objective with the approval of a majority of the votes castat a meeting of the unitholders of the Fund held to considerthe change.

Investment strategiesThe Fund’s investment advisor uses strategic asset allocationas the principal investment strategy. The investment advisormay also, at its discretion, use a tactical asset allocation over-lay strategy.

The Fund generally seeks to achieve a strategic asset mix ofcash and money market instruments (0-17%), fixed income (55-75%), Canadian equities (6-26%) and foreign equities (2-22%).The Fund’s investment advisor may actively manage the Fund’sassets within the stated strategic asset mix ranges. In addi-tion, we may change the Fund’s strategic asset mix ranges fromtime to time at our discretion.

The Fund invests primarily in units of other Funds, but mayalso invest in mutual funds managed by third-party manage-ment companies and units of exchange-traded funds.The Fund’sinvestment advisor, in its sole discretion, allocates assets amongthe underlying funds within the optimal asset mix of the Fund.

The Fund’s investment advisor may, in its sole discretion, changethe percentage holding of any underlying fund and remove oradd any underlying fund.


The Fund may directly invest up to 40% of its net assets in for-eign securities; however, as the Fund intends to invest primar-ily in securities of other mutual funds that may themselves investin foreign securities, the actual exposure of the Fund to invest-ments in foreign securities may exceed this amount.





the Fund?

The following are the principal risks associated with investingin the HSBC World Selection Diversified Conservative Fund:



� Credit risk

� Currency risk




HSBC World Selection Diversified Conservative Fund

79

� Market risk



� Security risk


In the 12 months immediately preceding May 21, 2017, theFund invested up to 16.96% of its net asset value in the HSBCMortgage Fund, 11.26% of its net asset value in the HSBCDividend Fund, 43.86% of its net asset value in the HSBC Cana-dian Bond Fund and 11.31% of its net asset value in the HSBCGlobal Equity Fund. See the section called What are the risksof investing in mutual funds? for a description of concentra-tion risk.



This Fund is suitable for investors who want interest incomeand some potential for low to moderate long-term growth oftheir capital. Investors in this Fund should have a medium-term investment time horizon and a low to medium tolerancefor investment risk. This Fund is not suitable for those with alow tolerance for risk in their returns or for those who have ashort time horizon for their investment.

Distribution policy

The net investment income and net realized capital gains ofthis Fund, if any, are distributed annually in December to thosewho hold units in the Fund on the last business day prior tothe date of distribution. We automatically reinvest distribu-tions from the Fund in additional units of the Fund unless youtell us in advance that you want to receive distributions in cash.Cash distributions are not available for HSBC Mutual Funds reg-istered plans.


by investors

The following information shows the Fund expenses indirectlyborne by investors investing in each series of the Fund for whichthis information is available. It will help you to compare the

cost of investing in this Fund with the cost of investing in othermutual funds.The cost of investing in the Manager Series unitsis not shown because as of the date of this Simplified Prospec-tus no Manager Series units of the Fund have been issued andthere is no actual management expense ratio on which to basethe calculations. For more information about the fees you pay,see the section called Fees and expenses, and in particular,the subsection Fees and expenses paid directly by you.



$18.38 $56.89 $97.87 $212.23



$25.20 $77.49 $132.41 $282.07



$5.46 $17.12 $29.84 $66.95

* These management expense ratios do not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 2.86% for the Advisor Series and 0.81% forthe Institutional Series without any waiver or absorption of fees orexpenses. The amount of expenses absorbed or fees waived is atour discretion and can be terminated by us at any time.

HSBC World Selection Diversified Conservative Fund (continued)

80

Fund details

Type of fund



December 16, 2004



Start date

Investor Series: August 29, 2005Advisor Series: December 9, 2010Manager Series: December 16, 2005Institutional Series: December 16, 2005





Investment objectivesThe fundamental investment objective of this Fund is to pro-vide investors with a diversified portfolio of investments acrossseveral asset classes, providing moderate capital preservationwith interest income and potential for moderate long-term capi-tal growth, by investing primarily in units of other Funds. Wemay only change the Fund’s fundamental investment objectivewith the approval of a majority of the votes cast at a meetingof the unitholders of the Fund held to consider the change.


The Fund generally seeks to achieve a strategic asset mix ofcash and money market instruments (0-15%), fixed income (42-62%), Canadian equities (12.5-32.5%) and foreign equities (10.5-30.5%). The Fund’s investment advisor may actively managethe Fund’s assets within the stated strategic asset mix ranges.In addition, we may change the Fund’s strategic asset mix rangesfrom time to time at our discretion.

The Fund invests primarily in other funds, but may also investin mutual funds managed by third-party management compa-

nies and units of exchange-traded funds. The Fund’s invest-ment advisor, in its sole discretion, allocates assets among theunderlying funds within the optimal asset mix of the Fund.








the Fund?

The following are the principal risks associated with investingin the HSBC World Selection Diversified Moderate Conserva-tive Fund:



� Credit risk

� Currency risk




� Market risk

HSBC World Selection Diversified Moderate Conservative Fund

81



� Security risk


In the 12 months immediately preceding May 21, 2017, theFund invested up to 11.63% of its net asset value in the HSBCEquity Fund, 14.31% of its net asset value in the HSBC Mort-gage Fund, 11.73% of its net asset value in the HSBC Divi-dend Fund, 33.85% of its net asset value in the HSBC Cana-dian Bond Fund and 19.61% of its net asset value in the HSBCGlobal Equity Fund. See the section called What are the risksof investing in mutual funds? for a description of concentra-tion risk.



This Fund is suitable for investors who want interest incomeand the potential for moderate long-term growth of their capi-tal. Investors in this Fund should have a medium-term invest-ment time horizon and a low to medium tolerance for invest-ment risk.This Fund is not suitable for those with a low tolerancefor risk in their returns or for those who have a short time hori-zon for their investment.

Distribution policy



by investors

The following information shows the Fund expenses indirectlyborne by investors investing in each series of the Fund for whichthis information is available. It will help you to compare thecost of investing in this Fund with the cost of investing in othermutual funds. The costs of investing in the Advisor Series andManager Series units are not shown because as of the date ofthis Simplified Prospectus no Advisor Series or Manager Seriesunits of the Fund have been issued and there are no actualmanagement expense ratios on which to base these calcula-tions. For more information about the fees you pay, see thesection called Fees and expenses, and in particular, the sub-section Fees and expenses paid directly by you.



$18.17 $56.25 $96.79 $210.01



$3.36 $10.56 $18.44 $41.60

HSBCWorld Selection Diversified Moderate Conservative Fund (continued)

82


Global Neutral Balanced


December 16, 2004



Start date

Investor Series: August 29, 2005Advisor Series: December 10, 2010Manager Series: December 16, 2005Institutional Series: December 24, 2013




What does the Fund invest in?Investment objectivesThe fundamental investment objective of this Fund is to pro-vide investors with a diversified portfolio of investments acrossseveral asset classes, providing a balance of income and poten-tial for long-term capital growth, by investing primarily in unitsof other Funds. We may only change the Fund’s fundamentalinvestment objective with the approval of a majority of the votescast at a meeting of the unitholders of the Fund held to con-sider the change.

Investment strategiesThe Fund’s investment advisor uses strategic asset allocationas the principal investment strategy. The investment advisormay also, at its discretion, use a tactical asset allocation over-lay strategy.The Fund generally seeks to achieve a strategic asset mix ofcash and money market instruments (0-15%), fixed income (23-43%), Canadian equities (20-40%) and foreign equities (22-42%).The Fund’s investment advisor may actively manage theFund’s assets within the stated strategic asset mix ranges. Inaddition, we may change the Fund’s strategic asset mix rangesfrom time to time at our discretion.The Fund invests primarily in other Funds, but may also investin mutual funds managed by third-party management compa-nies and units of exchange-traded funds. The Fund’s invest-ment advisor, in its sole discretion, allocates assets among theunderlying funds within the optimal asset mix of the Fund.The Fund’s investment advisor may, in its sole discretion, changethe percentage holding of any underlying fund and remove oradd any underlying fund.

A portion of the Fund’s holdings may be in the form of cash orcash equivalents.The Fund may directly invest up to 60% of its net assets in for-eign securities; however, as the Fund intends to invest primar-ily in securities of other mutual funds that may themselves investin foreign securities, the actual exposure of the Fund to invest-ments in foreign securities may exceed this amount.The Fund may use derivatives consistent with its investmentobjectives and as permitted by the Canadian securities regula-tory authorities.The Fund may use derivatives such as options,futures, covered calls, forward contracts and other similar instru-ments for hedging and non-hedging purposes. The Fund mayuse these instruments to provide exposure to securities, indi-ces or currencies without investing in them directly. Deriva-tives may be used to manage the risks to which the invest-ment portfolio is exposed. The Fund may also use derivativesas described in the introduction to this part of the SimplifiedProspectus in the section called Derivatives transactions.The Fund may enter into securities lending transactions, repur-chase transactions and reverse repurchase transactions, as per-mitted by the Canadian securities regulatory authorities, to earnadditional income for the Fund. For more information on howthe Fund engages in these types of transactions, see the sec-tion in the introduction to this part of the Simplified Prospec-tus called Securities lending transactions, repurchase transac-tions and reverse repurchase transactions.We may change the Fund’s investment strategies at our dis-cretion, at any time.

What are the risks of investing inthe Fund?The following are the principal risks associated with investingin the HSBC World Selection Diversified Balanced Fund:� Asset allocation risk� Concentration risk� Credit risk� Currency risk� Foreign market risk� Fund of funds risk� Interest rate risk� Market risk� Multiple series unit risk� Securities lending, repurchase and reverse repurchase trans-

action risk� Security risk� Tax loss restriction event riskIn the 12 months immediately preceding May 21, 2017, theFund invested up to 22.48% of its net asset value in the HSBCEquity Fund, 22.08% of its net asset value in the HSBC Cana-dian Bond Fund and 30.65% of its net asset value in the HSBCGlobal Equity Fund. See the section called What are the risksof investing in mutual funds? for a description of concentra-tion risk.

HSBC World Selection Diversified Balanced Fund

83


Who should invest in this Fund?This Fund is suitable for investors who want to earn a balanceof interest income and long-term growth of their capital. Inves-tors in this Fund should have a medium-term investment timehorizon and a low to medium tolerance for investment risk.This Fund is not suitable for those with a low tolerance for riskin their returns or for those who have a short time horizon fortheir investment.

Distribution policyThe net investment income and net realized capital gains ofthis Fund, if any, are distributed annually in December to thosewho hold units in the Fund on the last business day prior tothe date of distribution. We automatically reinvest distribu-tions from the Fund in additional units of the Fund unless youtell us in advance that you want to receive distributions in cash.Cash distributions are not available for HSBC Mutual Funds reg-istered plans.




$20.90 $64.53 $110.74 $238.55



$23.84 $73.39 $125.58 $268.46



$10.92 $34.06 $59.04 $130.55



$4.73 $14.83 $25.86 $58.14

* This management expense ratio does not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 1.33% for the Institutional Series withoutany waiver or absorption of fees or expenses. The amount ofexpenses absorbed or fees waived is at our discretion and can beterminated by us at any time.

HSBC World Selection Diversified Balanced Fund (continued)

84

Fund details

Type of fund

Global Equity Balanced


December 16, 2004



Start date

Investor Series: August 29, 2005Advisor Series: January 5, 2007Manager Series: March 5, 2009Institutional Series: March 28, 2014





Investment objectivesThe fundamental investment objective of this Fund is to pro-vide investors with a diversified portfolio of investments acrossseveral asset classes, providing potential for long-term capitalgrowth with low to moderate income, by investing primarily inunits of other Funds. We may only change the Fund’s funda-mental investment objective with the approval of a majority ofthe votes cast at a meeting of the unitholders of the Fund heldto consider the change.


The Fund generally seeks to achieve a strategic asset mix ofcash and money market instruments (0-10%), fixed income (13-33%), Canadian equities (21-41%) and foreign equities (36-56%).The Fund’s investment advisor may actively manage theFund’s assets within the stated strategic asset mix ranges. Inaddition, we may change the Fund’s strategic asset mix rangesfrom time to time at our discretion.

The Fund invests primarily in other Funds, but may also investin mutual funds managed by third-party management compa-

nies and units of exchange-traded funds. The Fund’s invest-ment advisor, in its sole discretion, allocates assets among theunderlying funds within the optimal asset mix of the Fund.








the Fund?

The following are the principal risks associated with investingin the HSBC World Selection Diversified Growth Fund:



� Credit risk

� Currency risk




� Market risk


HSBC World Selection Diversified Growth Fund

85


� Security risk


In the 12 months immediately preceding May 21, 2017, theFund invested up to 28.65% of its net asset value in the HSBCEquity Fund, 13.28% of its net asset value in the HSBC Cana-dian Bond Fund and 42.92% of its net asset value in the HSBCGlobal Equity Fund. See the section called What are the risksof investing in mutual funds? for a description of concentra-tion risk.



This Fund is suitable for investors who want long-term growthof their capital and low to moderate interest income. Investorsin this Fund should have a long-term investment time horizonand a medium tolerance for investment risk. This Fund is notsuitable for those with a low or low-to-medium tolerance forrisk in their returns or for those who have a short or mediumtime horizon for their investment.

Distribution policy



by investors




$23.94 $73.71 $126.10 $269.52



$29.72 $90.97 $154.73 $325.80



$21.00 $64.84 $111.27 $239.64



$3.99 $12.53 $21.87 $49.26


HSBC World Selection Diversified Growth Fund (continued)

86

Fund details

Type of fund

Global Equity


December 16, 2004



Start date

Investor Series: August 29, 2005Advisor Series: December 10, 2010Manager Series: December 16, 2005Institutional Series: September 16, 2011





Investment objectivesThe fundamental investment objective of this Fund is to pro-vide investors with a diversified portfolio of investments acrossseveral asset classes, providing potential for long-term capitalgrowth, by investing primarily in units of other Funds. We mayonly change the Fund’s fundamental investment objective withthe approval of a majority of the votes cast at a meeting of theunitholders of the Fund held to consider the change.


The Fund generally seeks to achieve a strategic asset mix ofcash and money market instruments (0-10%), fixed income(0-20%), Canadian equities (17.5-37.5%) and foreign equities(52.5-72.5%).The Fund’s investment advisor may actively man-age the Fund’s assets within the stated strategic asset mixranges. In addition, we may change the Fund’s strategic assetmix ranges from time to time at our discretion.

The Fund invests primarily in other Funds, but may also investin mutual funds managed by third-party management compa-nies and units of exchange-traded funds. The Fund’s invest-ment advisor, in its sole discretion, allocates assets among theunderlying funds within the optimal asset mix of the Fund.








the Fund?

The following are the principal risks associated with investingin the HSBCWorld Selection DiversifiedAggressive Growth Fund:



� Credit risk

� Currency risk



� Market risk



� Security risk

HSBC World Selection Diversified Aggressive Growth Fund

87

� Small capitalization risk


In the 12 months immediately preceding May 21, 2017, theFund invested up to 24.92% of its net asset value in the HSBCEquity Fund and 56.78% of its net asset value in the HSBCGlobal Equity Fund. See the section called What are the risksof investing in mutual funds? for a description of concentra-tion risk.



This Fund is suitable for investors who want to maximize thelong-term potential growth of their capital. Investors in this Fundshould have a long-term investment time horizon and a mediumtolerance for investment risk.This Fund is not suitable for thosewith a low or low-to-medium tolerance for risk in their returnsor for those who have a short or medium time horizon fortheir investment.

Distribution policy



by investors

The following information shows the Fund expenses indirectlyborne by investors investing in each series of the Fund for whichthis information is available. It will help you to compare thecost of investing in this Fund with the cost of investing in othermutual funds.The cost of investing in the Manager Series unitsis not shown because as of the date of this Simplified Prospec-

tus no Manager Series units of the Fund have been issued andthere is no actual management expense ratio on which to basethe calculations. For more information about the fees you pay,see the section called Fees and expenses, and in particular,the subsection Fees and expenses paid directly by you.



$24.57 $75.60 $129.26 $275.81



$30.14 $92.21 $156.78 $329.77



$81.38 $236.55 $382.13 $707.96

* These management expense ratios do not include certain fees orexpenses that we have waived or absorbed, which would other-wise have been payable by the Fund. The management expenseratio would have been 6.32% for the Advisor Series and 7.76% forthe Institutional Series without any waiver or absorption of fees orexpenses. The amount of expenses absorbed or fees waived is atour discretion and can be terminated by us at any time.

HSBC World Selection Diversified Aggressive Growth Fund (continued)

88

HSBC Mutual Funds

HSBC Canadian Money Market FundHSBC U.S. Dollar Money Market FundHSBC Mortgage FundHSBC Canadian Bond FundHSBC Global Corporate Bond FundHSBC Emerging Markets Debt FundHSBC Monthly Income FundHSBC U.S. Dollar Monthly Income FundHSBC Canadian Balanced FundHSBC Dividend FundHSBC Equity FundHSBC Small Cap Growth FundHSBC Global Equity FundHSBC Global Equity Volatility Focused FundHSBC U.S. Equity FundHSBC European FundHSBC AsiaPacific FundHSBC Chinese Equity FundHSBC Indian Equity FundHSBC Emerging Markets FundHSBC BRIC Equity Fund

HSBC World Selection Diversified Conservative FundHSBC World Selection Diversified Moderate

Conservative FundHSBC World Selection Diversified Balanced FundHSBC World Selection Diversified Growth FundHSBC World Selection Diversified Aggressive

Growth Fund

You can find more information about the Funds inthe Funds’ Annual Information Form, Fund Facts,Management Reports of Fund Performance andfinancial statements. These documents are referredto in this Simplified Prospectus and are consideredto form part of this Simplified Prospectus as thoughthey were printed within this document. You can geta copy of these documents at no cost by callingtoll-free 1-888-390-3333 or from your dealer.Copies of the Annual Report, the Annual InformationForm, the Semi-Annual Report, the Annual andInterim Management Report of Fund Performanceand the Fund Facts are available on our website atwww.hsbc.ca/investment-resources.

These documents and other information about theFunds, such as information circulars and materialcontracts, are available at www.sedar.com.

How to reach us

HSBC Global Asset Management (Canada) Limited

Vancouver

3rd Floor, 885 West Georgia StreetVancouver, BC V6C 3E8

Toronto

Suite 300, 70 York StreetToronto, ON M5J 1S9

Toll-free: 1-888-390-3333Fax: 604-669-2756Email: [email protected]

Website: www.hsbc.ca/investment-resources

Issued byHSBC Global Asset Management (Canada) Limited 15

0016

6E(2

017-

06)D

FS

Documents

HSBC Mutual Funds · HSBC Mutual Funds Simplified ... Securities and Exchange Commission and are sold in the United States only in reliance on exemptions from ... Introduction and