3
Why HSBC Global Investment Funds – Indian Equity? Important information: • The Fund invests primarily in Indian equities. The Fund is subject to the concentration and emerging market risks of investing in a single emerging market. • The Fund’s investments may involve substantial market, currency, volatility, regulatory and political risks. Investors may suffer substantial loss of their investments in the Fund. • The investment decision is yours but you should not invest unless the intermediary which sells you the Fund has advised you that the Fund is suitable for you and has explained why, including how investing in the Fund would be consistent with your investment objectives. • Investors should not invest in the Fund solely based on the information provided in this document and should read the offering document of the Fund for details. Excellent performance Proven expertise The Fund has been led by the same management team with deep local knowledge since inception. Over the past 13 years, the Fund has grown to become one of the largest Indian equity funds globally 1 Investors can access one of the most dynamic markets with ease via a proven and consistent investment management process Invest with confidence The Fund is managed by an experienced, active fund manager who is well-known for his high-conviction approach and ability to deliver outperformance Investors can ride on his deep market insight and stock picking ability to uncover value and capture short and long-term opportunities in the Indian equity market 14082009_Indian_1Pager_All Investment involves risk. Past performance is not indicative of future performance. Please refer to the offering document for further details including the risk factors. The document has not been reviewed by the Securities and Futures Commission. The document is prepared for general information purposes only. All views expressed cannot be construed as an offer or recommendation by HSBC Global Asset Management (Hong Kong) Limited ("AMHK"). AMHK and HSBC Group shall not be held liable for damages arising out of any person's reliance upon this information. Any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment. Issued by HSBC Global Asset Management (Hong Kong) Limited Source: 1. Morningstar Inc. Data as at 31 July 2009. Calendar year performance of the Fund- 2004: 27.8%; 2005: 34.5%; 2006: 45.9%; 2007: 77.9%; 2008: -70.3%. Bid to bid price with dividend reinvested in USD term. 2. Lipper Fund Awards 2008 - Three-Year Award - Equity India and Lipper Fund Awards 2008 - Five-Year Award - Equity India, fund performance as at 31 December 2007. Fund manager: Sanjiv Duggal The Fund S&P/IFCI India Index 63.6% 45.3% 3 month 104.0% 73.2% 6 month -11.6% -2.7% 1 year 88.5% 67.4% Year to date The HSBC Global Investment Funds – Indian Equity (the “Fund”) has outperformed the benchmark, and it’s the best performing India fund authorised in Hong Kong year-to-date posting a spectacular 88.5% gain 1 The Fund has been awarded the Lipper Fund Awards 2008, Three year award - Equity India and Five year award - Equity India 2

Why HSBC Global Investment Funds – Indian Equity?services.assetmanagement.hsbc.com.hk/site/microsites/BRIC/en/pdf… · Why HSBC Global Investment Funds – Indian Equity? Important

  • Upload
    others

  • View
    14

  • Download
    0

Embed Size (px)

Citation preview

Why HSBC Global Investment Funds – Indian Equity?

Important information:• The Fund invests primarily in Indian equities. The Fund is subject to the concentration and emerging market risks of investing in a single emerging market.• The Fund’s investments may involve substantial market, currency, volatility, regulatory and political risks. Investors may suffer substantial loss of their investments in

the Fund.• The investment decision is yours but you should not invest unless the intermediary which sells you the Fund has advised you that the Fund is suitable for you and has

explained why, including how investing in the Fund would be consistent with your investment objectives.• Investors should not invest in the Fund solely based on the information provided in this document and should read the offering document of the Fund for details.

Excellent performance

Proven expertise

The Fund has been led by the same management team with

deep local knowledge since inception. Over the past 13 years,

the Fund has grown to become one of the largest Indian

equity funds globally1

Investors can access one of the most dynamic markets with

ease via a proven and consistent investment management

process

Invest with confidence

The Fund is managed by an experienced, active

fund manager who is well-known for his

high-conviction approach and ability to deliver

outperformance

Investors can ride on his deep market insight

and stock picking ability to uncover value and

capture short and long-term opportunities in the Indian

equity market

1408

2009

_Ind

ian_

1Pag

er_A

ll

Investment involves risk. Past performance is not indicative of future performance. Please refer to the offering document for further details including the risk factors. The document has not been reviewed by the Securities and Futures Commission.

The document is prepared for general information purposes only. All views expressed cannot be construed as an offer or recommendation by HSBC Global Asset Management (Hong Kong) Limited ("AMHK"). AMHK and HSBC Group shall not be held liable for damages arising out of any person's reliance upon this information. Any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment.

Issued by HSBC Global Asset Management (Hong Kong) Limited

Source: 1. Morningstar Inc. Data as at 31 July 2009. Calendar year performance of the Fund- 2004: 27.8%; 2005: 34.5%; 2006: 45.9%; 2007: 77.9%; 2008: -70.3%. Bid to bid price with dividend reinvested in USD term. 2. Lipper Fund Awards 2008 - Three-Year Award - Equity India and Lipper Fund Awards 2008 - Five-Year Award - Equity India, fund performance as at 31 December 2007.

Fund manager:Sanjiv Duggal

The Fund

S&P/IFCI India Index

63.6%

45.3%

3 month

104.0%

73.2%

6 month

-11.6%

-2.7%

1 year

88.5%

67.4%

Year to date

The HSBC Global Investment Funds – Indian Equity (the “Fund”) has outperformed the benchmark, and it’s the best performing India fund

authorised in Hong Kong year-to-date posting a spectacular 88.5% gain1

The Fund has been awarded the Lipper Fund Awards 2008, Three year award - Equity India and Five year award - Equity India2

Tapping into the promising Indian growththrough a proven strategy

Important information:• The Fund is subject to the concentration and emerging market risks of investing in a single emerging market.• The Fund’s investments may involve substantial market, currency, volatility, regulatory and political risks. Investors may suffer substantial loss of their investments in

the Fund.• The investment decision is yours but you should not invest unless the intermediary which sells you the Fund has advised you that the Fund is suitable for you and has

explained why, including how investing in the Fund would be consistent with your investment objectives.• Investors should not invest in the Fund solely based on the information provided in this document and should read the offering document of the Fund for details.

Currency appreciation potenital

The expected appreciation of the rupee will add to equity returns and strengthen the Indian re-rating story

Reasonable valuations versus history

India has reversed from being one of the worst performing markets last year to one of the best year to date. Despite the strong rally, valuations remain fair

India offers one of the highest GDP growths in the world, supported by a burgeoning domestic market and proactive stimulus

Favourable demographics and easing inflation will also support growth

Equities have recovered significantly, but valuations are still reasonable

Short-term volatility is a risk, therefore an experienced active fund manager with a proven track record is the key for outperformance

MSCI India Trailing PE, 1995-2008

Source: FactSet, MSCI and Morgan Stanley. Data as at 16 June 2009.

Relatively strong and sustainable GDP growth

India is set to remain one of the fastest growing economies in the world over the coming two years. India is following China’s GDP growth curve but with a lag as economic liberalisation began in 1991, 12 years after China’s open-door policy in 1979

Rising income and proactive stimulus measures

India’s growth will also be driven by pent-up domestic demand and favourable demographics. Growth will be supported by proactive government measures (i.e. six interest rate cuts since October 2008 and three stimulus packages) and easing inflation

US EU Japan India

12

10

8

6

4

2

0

-2

-4

-6

-8

Real GDP %y/y

00 01 02 03 04 05 06 07 08 09E 10E

Source: UBS and Halbis. Data as at 17 June 2009. Source: Motilal Oswal. Data as at 16 June 2009.

Property Cost - LHS Affordability -LHSAnnual Income (Rs) - RHS

32

28

24

20

16

12

8

5 Yr Avg10 Yr Avg

54

52

50

48

46

44

42

40

38

Rs/US$

24.9%appreciation

24.4%depreciation

Source: CCSA. Data as at 16 June 2009.

8

6

4

2

0

36

27

18

9

0

%

x

%

15.6

5.9

22.0

11.18.3

6.6 5.3 5.14.3

4.6

5.05.1

5.03.7

4.7

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09E

95 96 97 98 99 00 01 02 03 04 05 06 07 08 01/00 04/01 07/02 10/03 01/05 04/06 07/07 10/08

August 2009

Summary

HSBC Global Investment Funds – Indian Equity

1408

2009

_Ind

ian_

All

Investment involves risk. Past performance is not indicative of future performance. Please refer to the offering document for further details including the risk factors. The document has not been reviewed by the Securities and Futures Commission.

The document is prepared for general information purposes only. All views expressed cannot be construed as an offer or recommendation by HSBC Global Asset Management (Hong Kong) Limited ("AMHK"). AMHK and HSBC Group shall not be held liable for damages arising out of any person's reliance upon this information. Any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment.

Issued by HSBC Global Asset Management (Hong Kong) Limited

Potential risksWhile the risk-reward profile of Indian equities remains favourable, investors should also pay attention to underlying risks of the Indian market. For instance, drastic slowdown in the global economy, liquidity outflows from the Indian equity markets, policy and regulatory changes.

Suitable investors The Fund is suitable for investors who have a medium-to long-term

investment horizon and want exposure to: - full range Indian equities - access to investment specialists - benefit from satisfactory and risk-adjusted return potential

As a single country fund, the Fund may be subject to short-term volatility and is suitable for investors who have a higher risk appetite

Investment objectiveThe Fund seeks long-term capital growth mainly through a diversified portfolio of investments in equity and equity equivalent securities of companies listed on a major stock exchange or other regulated market of India, as well as companies which carry out a preponderant part of their business activities in India.

Asset allocation2

www.assetmanagement.hsbc.com/hk

Frequent volatility best managed through active, disciplined management

As a high growth market, Indian equities can be very volatile. Emphasis the importance to look past short-term volatility and keep long-term investment horizon is particularly important for investing in India

Source: CCAS Asia Pacific Markets. Data as at 16 June 2009

Therefore, an experienced, active fund manager with a proven high-conviction and disciplined investment approach is critical to capture growth in the long term:

- The contrarian approach of HSBC Global Investment Funds - Indian Equity (the “Fund”) enables it to capture short-term trends and take advantage of volatility

- The manager's deep market insight helps the Fund to generate additional alpha- The Fund is one of the largest offshore Indian equity funds in Hong Kong1

- The Fund has delivered outstanding long-term performance through top-down sector/theme selection, coupled with fundamental research and stock picking

Year to date, the Fund has outperformed the industry average and ranked first among the funds within the same category1

Fund

Peers’ average

5.0%

3.8%

1H06

39.0%

35.2%

2H06

14.3%

16.5%

1H07

55.7%

43.6%

2H07

-36.3%

-41.1%

1H08

-53.3%

-36.7%

2H08 YTD2009

88.5%

61.7%

Fund details2

Class

Fund size

Fund price (bid/offer)

Launch date

Initial charge

Management fee

Fund manager

Investment advisor

Class AD

US$4,890.94 million

US$142.500 / US$150.395

1 March 1996

Up to 5.25%

1.5% per annum

Sanjiv Duggal

HSBC Global Asset Management (Singapore) Limited

1,000

3,000

5,000

7,000

9,000

11,000

13,000

15,000

17,000

19,000

21,000

Securities market scam

NDA wins elections,Vajpayee becomes PM

Vajpayeebecomes PM 9/11 attacks

BJP loses elections

GDP growth forecasts top 6%

US rate rise fears

Dr Singh appointed PM

Reliancesettlement

F&O unwinding and interest rate rise fears spark correction

Index

Sub-prime crisis, political tussle on Indo-USNuclear deal impacts market

UPA govt has successfully passed confidence votes

Rise in crude price led spark to macro economic environment

Mumbai Terrorist Attack

Economicreformskicked off

Babri Masjid,Bombay blasts

phase of political instability

Fed reduces growth forcast for US

Global markets correct with fear of US recession

Performance in US$ (%)1

Calendar year performance

04

27.8

05

34.5

06

45.9

07

77.9Fund

2009YTD

88.5

08

-70.3

Cumulative performance

3 mth

63.6

1 yr

-11.6

3 yrs

37.0

5 yrs

165.3Fund

Sources: 1. Morningstar, Inc. Data as at 31 July 2009. Bid to bid price with dividend reinvested. Peers = Hong Kong SFC Authorised universe - Indian equity; 2. HSBC Investment Funds (Hong Kong) Limited. Data as at 31 July 2009.

Stimulus package announced by Indian govt

01/91 12/91 12/92 12/93 12/94 12/95 12/96 12/97 12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08

Technology 12.2%

Industrials 15.0%

Basic materials 17.4%

Oil & gas 9.6%Telecommunications 2.9%

Health care 6.2%

Consumer goods 16.5%

Financials 13.2%

Cash 5.6%Utilities 1.3%

Display until November 2009