August 2009
MENA Wholesale Presentation Dubai structure on Shaikh Zayed Road
Building in Dubai, Shaikh Zayed Road
For investment professionals only
Emirates Tower, Dubai
HSBC Group HSBC Global Asset Management Alternative Investment Capabilities Why HSBC Global Asset Management? Appendix – Internal slides
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Contents
HSBC Group
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HSBC group
1865
The Hong Kong Shanghai Banking Corporation
335,000 employees
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HSBC group
100m
$2,527bn
customers
Assets(1)
2009 Offices in 86 Countries and Territories Worldwide (1) As at 31 December 2008
Aa2 335,000 employees
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HSBC group
100m
AA$2,527bn
customers
Assets(1)
2009 Listedinon Hong New York, Paris Offices 86London, Countries andKong, Territories Worldwide & Bermuda Stock Exchanges (1) As at 31 December 2008
Vancouver Calgary Saskatoon Winnipeg Seattle Chicago Ottawa Prospect Heights Sioux Falls Buffalo Kansas City
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International network
Brussels Luxembourg Leeds Manchester Birmingham Edinburgh Isle of Man Belfast Dublin Cardiff
Moscow Stockholm Amsterdam Dusseldorf Frankfurt Warsaw Prague Bratislava
Almaty
London Québec Channel Islands Montreal St John’s Paris Zurich Geneva Portland Toronto Fredericton Milan Budapest Lugano Yerevan Tigard Boston Dalian Monaco Istanbul Glastonbury San Francisco Seoul Ankara Barcelona New York City Athens Beijing Salinas Baghdad Las Vegas Izmir Daejeon Rome Tehran Bridgewater Tianjin Madrid Washington Beverly Hills Adana Valletta Chandigarh Daegu Lewisville Kuwait Philadelphia Chesapeake Quingdao Los Angeles Valencia Beirut Tokyo Doha Dallas Nicosia New Castle City Chengdu Inchon Atlanta Algiers Osaka Abu Dhabi Suzhou Virginia Beach Alexandria Tel Aviv Dubai Ahmedabad Chongqing San Diego Houston Tripoli Shanghai Pusan Bermuda Cairo Karachi Tijuana Amman Torréon New Delhi DhakaWuhanXiamen Brandon Jacksonville Muscat Ramallah Veracruz Hyderabad Guangzhou Taipei Monterrey Riyadh Miami Nassau Shenzhen Mumbai Guadalajara Macau Dammam Cayman Islands Hong Kong Cook Islands Manama Pune Mexico City Tortola (British Virgin Islands) Kolkota Mérida Hanoi Cancún Bangalore Chittagong Jeddah Puebla Salalah Ho Chi Manila Mysore Tegucigalpa Visakhapatnam Muttrah Acapulco Minh Trivandrum Caracas Chennai Bangkok Cebu City San Salvador City Malé Panama City Kota Kinabalu Managua Penang (Maldives) Labuan Colón Bogotá San José Medan Colombo Bandar Seri Begawan Kuala Lumpur Kuching Manaus Belem Singapore Jakarta Fortaleza Surabaya Recife Bandung Semarang Salvador Brasilia Campo Grande Belo Horizonte Port Louis (Mauritius) Salta Rio de Janeiro Riberão São Paolo Tucumán Preto Johannesburg Curitiba Resistencia Santa Posadas Corrientes Fé Porto Alegre Cape Town San Juan Perth Adelaide Córdoba Punta del Este Mendoza Montevideo Melbourne Santiago Pergamino Paraná Buenos Aires Neuquén La Plata Mar La Plata Bahía Blanca
For illustrative purposes only. As at 8 August 2008.
Brisbane Sydney Auckland Wellington Christchurch
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Structure HSBC Group
Personal Financial Services
Global Banking and Markets
Private Banking
Active, Fundamental Investing with conviction to produce outstanding and consistent performance over the long term Cash Management Offering a wide range of funds matching investment horizon, regulation and currency constraints Multi-Management Selecting the world’s leading managers, irrespective of asset class, geographical focus and management style Active, Quantitative Delivering robust performance in a risk-adjusted environment
Commercial Banking
Overview of HSBC Global Asset Management
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HSBC Global Asset Management Assets Under Management – US$390 billion By Investment Specialist
By Client
Private Clients 4%
HSBC Global Asset Management 56%
Wholesale 32%
By Capability*
Structured & Guaranteed 21%
Cash/Money Market 28%
Halbis 33%
Alternative 2% Other inc. Property 9%
Multimanager 4% SINOPIA 7%
Assets as at 31 June 2009
Multimanager 4%
Fixed Income 16% Institutional 64%
Equity 12%
Balanced 8%
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A truly global presence
Sweden Canada
UK
USA
Jersey Luxembourg France Spain
Mexico El Salvador Costa Rica Panama Columbia
HSBC Global Asset Management
Bermuda
Brazil
Germany Poland2 Czech Republic2 China2 Switzerland Italy Hong Kong Turkey Japan India Malta UAE Saudi Arabia Taiwan Singapore
Halbis SINOPIA
Argentina
Multimanager Global Liquidity1 (1) Liquidity manufacturing capabilities are also present in HSBC Global Asset Management offices in many locations over and above the ones shown here (2) Local presence in Poland from March 2007; HSBC Global Asset Management has a co-operation agreement with HSBC in Prague in the Czech Republic for the development of the asset management business (3) Joint venture between HSBC Global Asset Management and Shanxi Trust and Investment Corporation Limited
Broad Product Range Multispecialist
in 30 countries & territories2
c 2,200 employees2 Sound Investment Solutions
Leader in EM Asset Mgmt
$390bn AUM1
Individual & Institutional
(1) HSBC Global Asset Management as at 31 June 2009. Including Halbis, Liquidity, Multimanager and SINOPIA (2) HSBC Global Asset Management (UK) as at 31 January 2009.
Multispecialist
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What does HSBC Global Asset Management offer?
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Capabilities Emerging Markets
Equity
Distinct Asset Management Capabilities
Alternatives
Socially Responsible Investment
Fixed Income
Climate Change
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Expertise HSBC Amanah
Emerging Markets
(Shariah compliant investments)
Recognised Expertise
Alternatives
Socially Responsible Investment
Fund of Hedge Funds
Climate Change
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HSBC Global Asset Management Middle East & Africa
Investment Capabilities
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Structure HSBC Group
Personal Financial Services
Private Banking
Global Banking and Markets
Active, Fundamental Investing with conviction to produce outstanding and consistent performance over the long term Cash Management Offering a wide range of funds matching investment horizon, regulation and currency constraints Multi-Management Selecting the world’s leading managers, irrespective of asset class, geographical focus and management style Active, Quantitative Delivering robust performance in a risk-adjusted environment
Commercial Banking
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Halbis Capital Management Active, fundamental investment capabilities ` Established in 2005 ` US$140.6 billion under management ` Approximately 200 investment professionals ` Investment teams in Hong Kong, London, New York, Paris, Sao Paulo and Singapore
Assets under management as at 30 June 2009
Investment Philosophy ` Markets are inefficient and can be exploited through active, fundamental management ` Focused on delivering sustainable value-added performance – Small empowered investment teams – Decentralized decision-making structure – Speed of action – High conviction investing – Compensation tied to investment results
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HSBC Liquidity Global liquidity solutions ` Established in 1990
Investment Philosophy
` US$98.7 billion under management ` 50 investment professionals worldwide ` Investment teams in 4 locations – New York, Paris, Hong Kong, Canada and Bermuda ` Full range of investment strategies – AAA-rated – Enhanced yield and short duration – Multiple currencies
` Among the largest US dollar offshore money market fund ranges* Assets under management as at 31 March 2009 * Source: Institutional Money Market Funds Association
` Preservation of capital, competitive yield, and liquidity ` Active risk management ` Extensive credit research
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HSBC Multimanager Global multi-manager research and strategies ` Established in 1999 ` US$60 billion assets under advice and management ` Over 50 investment professionals, employed globally ` Investment teams in 10 locations around the world, including Hong Kong, London, New York, Paris, Tokyo, Taiwan and Sao Paulo ` Single and multi-asset strategies in developed and emerging equity, fixed income and real estate
Assets under advice and management as at 31 December 2008
Investment Philosophy ` Dedicated to delivering performance by finding best-inclass active managers ` High quality research and analysis allied with good judgement is key to long-term performance ` Focus on qualitative research to generate alpha ` Organized into specialist asset class teams, empowered to make decisions at the point of greatest insight ` Compensation tied to investment results
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SINOPIA Asset Management Active, quantitative and structured strategies ` Established in 1989 ` US$24.6 billion under management ` Approximately 100 investment professionals ` Investment teams in Hong Kong, London, New York and Paris ` Active quantitative and structured investment capabilities
Assets under management as at 31 June 2009
Investment Philosophy ` Strategies based on key financial theories and proprietary analysis and models ` Major emphasis on innovation and research ` Strong risk management ` Aim of delivering consistent outperformance ` Low trading costs ` Risk-controlled environment
` Global flagship fund range ` Range of investment styles and geographies ` Over 50 funds, registered in over 30 countries ` Supported by the Global Funds Centre – Easy to access information on all HSBC Global Funds – Information all in one place – Breakdown of portfolio holdings in all our funds
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HSBC Global Investment Funds
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HSBC Amanah ` Shariah compliant products and services ` Capacity to customise product and service solutions tailored to client specific goals and objectives ` Expertise in Islamic structures which complements the technical expertise of specialist and regional teams HSBC Amanah Investment Products Liquidity ` Shariah compliant cash management products ` Islamic liquidity management techniques structured through commodity based Murabaha transaction ` Short-term maturities comparable to conventional money market products
Structured and Alternative ` Alternative investment solutions tailored to enhance returns ` Investor choice – Real Estate – Capital Protected
Equity ` Global coverage and primary research capabilities ` Long only actively managed mandates ` Passively managed trackers ` Multi-manger funds ` Discretionary asset allocation
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HSBC Amanah Assets under management Equity 34.0%
Real estate 52.0%
Money market 13.6% Capital protected 0.4%
As of December 2008, HSBC managed approximately US$3.5 billion of Islamic investments
Source: HSBC Amanah, December 2008
Why HSBC Global Asset Management?
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Client-focused Investment Capabilities Long History of Managing Institutional Accounts Globally
Recognised Leader in Emerging Markets Asset Mgmt Broad, Highly Diversified Range of Products
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Why HSBC Global Asset Management?
Client
HSBC Global Asset Management
Objectives 9 9 9 9 9
Relative performance Absolute performance Investment horizon Risk exposure Liquidity
Analysis and assessment of each investment objective and constraint
Close and unbiased work with its specialist businesses
+ Constraints 9 9 9 9
Legal environment Accounting environment Technical constraints Investment universe
Proposition of the most appropriate investment solution
Client services
Client solution
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Client-focused investment capabilities Research and expertise of specialist businesses
Equity ` ` ` ` ` `
Asia BRIC Emerging Markets Latin America UK and Europe Local
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Global Emerging markets North America Europe Japan Asia ex-Japan
` ` ` ` `
Global Emerging markets Index Enhanced index Thematic – Climate change ` Long/Short
Source: HSBC Global Asset Management
Fixed Income
Multi-Asset & Balanced
Money Market
Structured & Guaranteed
` ` ` ` `
` Global ` Regional ` Local
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` AAA-rated liquidity ` Multiple currencies
` Global ` Emerging markets
` Global ` Regional
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` Active guaranteed ` Protected ` Structured
Asia Emerging markets UK and Europe Global Local
Global Emerging markets Inflation linked Index Enhanced index
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Highlighted investment capabilities
` A longstanding presence in emerging markets – HSBC’s roots were formed in China and India in the 19th century
` Approximately US$52 billion in emerging markets worldwide* ` Over 180 dedicated emerging markets investment professionals working together from 16 key locations ` Highly rated local, regional, and global products accessible through separate accounts and commingled vehicles ` Assets split roughly 50/50 between emerging markets equities and fixed income/liquidity *Assets under management as at 31 December 2008 Source: HSBC Global Asset Management
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A Leading Emerging Markets asset manager
Multi Country Strategies
Single Country Strategies
Asia ex Japan Equity Asia ex Japan Equity Hedged Asia ex Japan Equity High Dividend Asia ex Japan Equity Smaller Companies BRIC Markets Equity Emerging Europe Equity GEM Equity Emerging Wealth New Frontiers
Brazil Equity Chinese Equity Hong Kong Equity Indian Equity Korean Equity Russia Equity Singapore Equity Thai Equity Turkish Convergence
Fixed Income Strategies
Freestyle Strategies
Brazil Bond GEM Bond GEM Local Debt New World Income Inflation Linked Bonds
Asia Freestyle BRIC Freestyle GEM Equity Freestyle Latin American Freestyle
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Emerging Markets Cross Border Strategies
` HSBC wins Euromoney Award for Excellence in 2009 ` HSBC Amanah – Best Islamic Fund Manager for 2009 ` Best Saudi Equity Fund Lipper 2009 Award for HSBC Amanah Saudi Equity Fund 10 years ` Best Islamic Equity Fund Lipper 2009 Award for Amanah Global Equity Index Fund 3 years ` HSBC – Best Sukuk House and Best Takaful House for 2009 ` HSBC Amanah – Best Islamic Fund Manager for 2008 ` Emerging Markets Manager of the Year at the European Pension Awards 2008 ` Professional Pensions Fund of Hedge Fund manager of the year 2007 and 2008 ` Best GCC Equity Fund (HSBC Amanah GCC Equity Fund) 2007
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Awards
Dan Rudd Head of MENA Wholesale E-mail:
[email protected] Mobile: 00 971 501 895 883
Yasmin Khalifa Regional Sales Manager, External Email:
[email protected] Mobile: 00 971 504 570 361
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MENA team Stuart Cameron Regional Sales Manager, Group Distribution Email:
[email protected] Mobile: 00 971 566 032 085
Appendix – Internal slides
Wardley Australia
HSBC acquires M K Wong Canada
James Republic Capel USA Inv. Mgmt UK
HSBC Asset Management
1973
1980
1992 1994
HSBC acquires CSIT Taiwan
India Integration office of Bital’s created Asset Mgmt unit Mexico
1998
2000
Bamerindus Brazil Banco Roberts/Maxima Argentina
Halbis acquires Atlantic Advisors LLC and other fixed income teams Halbis
2001
2002
Asset Management Services
Marinvest Midland USA Montagu James Capel UK
Integration of Bermuda Asset Mgmt
SINOPIA
Wardley Inv. Services Hong Kong
Wardley Japan
CCF France
HSBC Trinkaus Capital Mgmt collaboration
2003
2004
2005
2006
HSBC Investments
2008 HSBC Global Asset Management
Integration of Turkey
China Joint venture Saudi joint venture
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HSBC Global Asset Management’s history of strategic global growth
PFS
Private Bank
Internal CMB IWM
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MENA distribution
Private Banks IFAs
External Third Life/ parties Takaful
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Our Assets under Distribution Private Client
3.86% External
17.42%
US$372bn
Wholesale
31.85%
GPB
7.39%
US$118.6bn
PFS
55.77% CMB
19.42% Institutional
64.29% Source: HSBC Global Asset Management, December 2008
The HSBC Global Investment Fund (‘GIF’) range is a Luxembourg domiciled SICAV and is regulated by the CSSF. The HSBC MultiAlpha funds are sub-funds of the HSBC International Select Fund, a Luxembourg domiciled SICAV regulated by the CSSF. The HSBC Amanah Funds SICAV is a Luxembourg domiciled SICAV and is regulated by the CSSF. The funds mentioned in this document may not be registered for sale or available in all jurisdictions. For available funds please contact your local HSBC office. The HSBC Funds ranges mentioned in this document cannot be sold by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such an offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation. All applications are made on the basis of the current Funds Prospectus, simplified prospectus and most recent annual and semi-annual reports. These can be obtained on request and free of charge from HSBC Global Asset Management (UK) Limited or the local distributors. The securities representing interests in the Funds range have not been and will not be registered under the US Securities Act of 1933 and will not be offered for sale or sold in the United States of America, its territories or possessions and all areas subject to its jurisdiction, or United States person, except in a transaction which does not violate the Securities Law of the United States of America. As with any investment where the underlying investments are stocks and shares, the price of shares in HSBC Funds and any income from it can go down as well as up, is not guaranteed, and you may not get back the amount of your original investment. Where overseas investments are held, the rate of exchange may cause the value of such investments to go down as well as up. Where a sub-fund invests predominately in one geographical area, any decline in economic conditions may affect prices and the value of underlying investments. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in established markets. You should view this investment as medium to long term, and should plan to keep it for at least five years. HSBC Global Asset Management (UK) Limited provides information to professional advisers and their clients on the investment products and services of members of the HSBC Group. The material contained in this document is for information only and does not constitute investment advice or a recommendation to any reader of this material to buy or sell investments. The products outlined in this document are provided by HSBC Global Asset Management (UK) Limited, 8 Canada Square, Canary Wharf, London, E14 5HQ, UK. Authorised and regulated by the Financial Services Authority and registered as number 122335. © Copyright. HSBC Global Asset Management 2009. All Rights Reserved. These products are marketed in a sub-distributing capacity on a principal – to – principal basis by the HSBC Global Asset Management MENA, a unit that is part of HSBC Bank Middle East Limited, PO Box 66, Dubai, UAE, which is incorporated and regulated by the Jersey Financial Services Commission. Services are subject to the Bank’s terms and conditions. HSBC Bank Middle East Limited is a member of the HSBC Group. The information provided has not been prepared taking into account the particular investment objectives, financial situation and needs of any particular investor. As a result, investors using this information should assess whether it is appropriate in the light of their own individual circumstances before acting on it. The information in this document is derived from sources believed to be reliable, but which have not been independently verified. However, HSBC Bank Middle East Limited makes no guarantee of its accuracy and completeness and is not responsible for errors of transmission of factual or analytical data, nor shall HSBC Bank Middle East Limited be liable for damages arising out of any person’s reliance upon this information. All charts and graphs are from publicly available sources or proprietary data. The opinions in this document constitute the present judgment of the issuer, which is subject to change without notice. This document is neither an offer to sell, purchase or subscribe for any investment nor a solicitation of such an offer. This document is intended for the use of institutional and professional customers and is not intended for the use of private customers. This document is intended to be distributed in its entirety. No consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient. Any transaction will be subject to HSBC Bank’s Terms of Business. 15713 – HSB1304e/ME/0509
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Important information
