HSBC Amanah Funds SICAV
Product range
` hsbcamanah.com
HSBC Amanah
` HSBC Amanah is the Islamic financial services division of the HSBC Group
` Headquartered in Dubai with regional representatives in New York, Riyadh,
London, Jakarta and Kuala Lumpur
` HSBC Amanah is one of the leading global players in the Islamic finance
industry
` HSBC Amanah SICAV is managed by SINOPIA Asset Management, the
specialist quantitative management arm of the HSBC Group
` The HSBC Amanah Funds SICAV has 4 Equity sub-funds:
– HSBC Amanah Global Equity Index Fund
– HSBC Amanah Europe Equity
– HSBC Amanah Asia Pacific ex Japan Equity
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– HSBC Amanah Global Equity
Shariah compliant investments
The concept
` Shariah (Islamic law) is based on the Quran (the sacred text of Islam) and the
example of Prophet Muhammad, Peace Be Upon Him (PBUH)
` The most distinctive element of Islamic finance is the prohibition of interest,
whether “nominal” or “excessive,” simple or compound, fixed or floating
(also known as “Riba”)
` In addition to prohibition of interest, investment is also disallowed in the
following businesses
– Alcohol, pork, weapons, gambling, tobacco, leisure, media, pornography
– And anything else which is deemed “Haraam” (unlawful)
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` Also the contractual terms agreed between the investors and the
investment manager must conform to Islamic principles
Compliance with Shariah
Central Shariah Committee
` All Shariah compliant investments must be certified by experts in Shariah
` Three scholars of international repute serve on the HSBC Amanah Shariah
Committee:
Sheikh
Sheikh
Dr.
Dr. Muhammad
Muhammad Imran
Imran
Ashraf
Usmani
Ashraf Usmani
Dr
Dr Mohamed
Mohamed
Ali
Ali Elgari
Elgari
Sheikh
Sheikh Nizam
Nizam
Yaquby
Yaquby
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` The Shariah board also conducts annual audits of all funds to ensure
adherence to their rulings during the year
Compliance with Shariah
The screening and purification process
` The Central Shariah Committee of HSBC Amanah has determined that Investment
funds will not invest in companies whose primary business activity is as shown in
Figure 1 (sectoral screens), or in companies which exhibit characteristics as shown in
Figure 2 (financial screens):
Figure
Figure 1:
1: Section
Section
Figure
Figure 2:
2: Financial
Financial
Alcohol
Alcohol
Weapons
Weapons
All
All the
the following
following should
should be
be less
less than
than 33%
33%
Tobacco
Tobacco
Pork
Pork
Total
Total Debt/12
Debt/12 months
months trailing
trailing market
market capitalization
capitalization
Financial
Financial services
services
Gambling
Gambling
Cash
Cash &
& Interest
Interest bearing
bearing securities/12
securities/12 month
month trailing
trailing market
market
capitalization
capitalization
Pornography
Pornography
Leisure/Media
Leisure/Media
Accounts
Accounts receivable/12
receivable/12 month
month trailing
trailing market
market capitalisation
capitalisation
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` The Fund receives company dividends generated as part of a company’s normal
business operations. However, a large diversified corporation may be Shariahcompliant but may own a small finance subsidiary deemed non-compliant so any
proportion of income received from non-compliant activities are paid to Charity and
thereby ‘purified’
HSBC Global Asset Management
Active
Active fundamental
fundamental
specialist
specialist investing
investing with
with
conviction
conviction aiming
aiming to
to produce
produce
outstanding
outstanding and
and consistent
consistent
performance
performance over
over the
the long
long
term
term
Cash
Cash management
management
specialist
specialist
offering
offering aa wide
wide range
range of
of funds
funds
matching
investment
horizon,
matching investment horizon,
regulation
regulation and
and currency
currency
constraints
constraints
Multimanagement
Multimanagement specialist
specialist
aiming
aiming to
to select
select the
the world's
world's
leading
leading managers,
managers, irrespective
irrespective
of
of asset
asset class,
class, geographical
geographical
focus
focus &
& management
management style
style
Quantitative
Quantitative
specialist
specialist
seeking
seeking to
to deliver
deliver
performance
performance in
in aa risk-adjusted
risk-adjusted
environment
environment
Data as at 2 June 2008
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HSBC
HSBC Global
Global Asset
Asset Management
Management is
is the
the global
global sales
sales and
and service
service platform
platform for
for all
all
asset
asset management
management capabilities
capabilities within
within the
the HSBC
HSBC Group
Group
SINOPIA Asset Management
Quantitative specialist of HSBC Global Asset Management
` SINOPIA was formed in 1989, as a
subsidiary of HSBC France
Assets under management by investment type*
21.20%
` SINOPIA is headquartered in Paris,
with subsidiaries in Hong-Kong and
London. The company manages
USD 27.3 billion at end of December
2008
36.80%
16.80%
` The investments teams are
supported by a global network of
HSBC Global Asset Management
sales and marketing teams
25.20%
Fixed Income
Guaranteed & Structured Products
Absolute Return
Source: SINOPIA Asset Management at end-December 2008 – * EUR/USD conversion rate of 1.39 based on currency spot rate as of 31 December 2008
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Equities
SINOPIA 's Core Beliefs
Investment philosophy and beliefs
` Markets exhibit mispricings we can exploit
– Markets are rational and efficient on average:
– they fully and correctly reflect all relevant information in determining long-term security
prices
– an asset equilibrium or fair price can be identified at any given moment
– there are times when market risk premiums and fair risk premiums differ but only temporarily
– Those differences represent tactical opportunities to exploit = ACTIVE management
` Risk management is key to steady performance
– We take risks on attractive expected returns while avoiding risk where we do not
have specific views
` Implementation with rigour and discipline is important
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– We minimise costs and ensure consistency across asset classes and products
SINOPIA’s Process Principles
Investment process: discipline and transparency
1.
1. Valuation
Valuation
2.
2. Optimization
Optimization
Synthesize
Synthesize market
market &
& economic
economic data
data
Expected
Expected returns
returns plus
plus risk
risk factors
factors
Build
Build valuation
valuation models
models
Build
Build optimization
optimization and
and risk
risk models
models
GENERATE
GENERATE EXPECTED
EXPECTED RETURNS
RETURNS
GENERATE
GENERATE OPTIMIZED
OPTIMIZED PORTFOLIOS
PORTFOLIOS
` State-of-the-art models and
practical influence of
experienced fund managers
` Our models enable us to
process economic and financial
information objectively and
efficiently
3.
TAA
&
3. Weekly
TAA meeting
3. Weekly
Weekly
TAA meeting
meeting
& action
action & action
Sense
Sense Check
Check (review,
(review, analyse
analyse and
and explain)
explain)
Risk
Risk Management
Management
DETERMINE
DETERMINE TARGET
TARGET PORTFOLIOS
PORTFOLIOS
` Transparency when
communicating on how we
make decisions and their
results. Not a black box
4.
4. Implementation
Implementation
Review
Review trading
trading costs
costs and
and operational
operational risk
risk
IMPLEMENT
IMPLEMENT TRADES
TRADES
Independent
Independent review
review of
of risk
risk parameters
parameters plus
plus performance
performance analysis
analysis
9
` Ability to customize, based on
specific client parameters
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5.
5. Risk
Risk control
control &
& Performance
Performance Attribution
Attribution
Non contractual document
Our quantitative traits
HSBC Amanah Funds SICAV
Product offering
HSBC
HSBC Amanah
Amanah Global
Global Equity
Equity
HSBC
HSBC Amanah
Amanah Global
Global Equity
Equity Index
Index
(Active
(Active Quantitative
Quantitative management)
management)
(Full
(Full Replication
Replication strategy)
strategy)
HSBC
HSBC Amanah
Amanah Europe
Europe Equity
Equity
(Active
(Active Quantitative
Quantitative management)
management)
HSBC
HSBC Amanah
Amanah Asia
Asia Pacific
Pacific ex
ex Japan
Japan Equity
Equity
(Active
(Active Quantitative
Quantitative management)
management)
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Equity Index strategy
A pragmatic full replication strategy for the HSBC
Amanah Global Equity Index fund
` Objective is to replicate the performance of an equity universe which meets
Islamic investment principles
` The strategy tracks a given index under the following constraints:
– Minimise tracking error level
– Neutralisation of the key risk sources
– portfolio weight deviations (vs. index), sector & country bias
` Same number of stocks in portfolio as in the benchmark
– Trading costs are closely monitored and minimised
Indicative index*
Global Equities
Dow Jones Islamic
Market Titans 100
Index
* For indicative purposes only
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Tracking error level Number of stocks
0.50% max.
Around 100
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HSBC Amanah
Global Equity Index
Investment
universe
Indexed investment process
A structured and disciplined process…
Preliminary
Preliminary Index
Index
Analysis
Analysis
Index
Index &
& portfolio
portfolio
constituents
constituents number
number of
of
investible
investible securities,
securities,
liquidity,
liquidity, volume,
volume, index
index
turnover,
turnover, volatility,
volatility,
sector/industry
sector/industry
composition
composition and
and large
large
cap/small
cap/small cap
cap distribution
distribution
Portfolio
Portfolio
Construction
Construction
Trading
Trading Analysis
Analysis
and
Implementation
and Implementation
Risk
Risk factors
factors
management
management ensure
ensure
neutral
neutral position
position relative
relative to
to
risk
risk exposures
exposures implied
implied by
by
the
the index.
index.
Corporate
Corporate actions
actions and
and
Cash
flows
monitoring
Cash flows monitoring
Trading
Trading Costs
Costs control
control
Analysis
Analysis of
of trading
trading costs
costs
and
and individual
individual stock
stock risk,
risk,
as
as well
well as
as the
the costs
costs of
of aa
large
large rebalancing
rebalancing
Trade
Trade
Execution
Execution
Optimise
Optimise instrument
instrument
mix
mix between
between stocks
stocks
and
and ETFs
ETFs
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Indexed investment process – Risk control
Central to SINOPIA’s neutral risk approach to indexation
` Daily performance attribution
– Fund manager
– Daily performance attribution reports
` Daily control of trade implementation
– Trading team & fund manager
– Internal trade reporting system
– Daily check of restrictions
– Daily monitoring of spreads between portfolio & benchmark
– Compliance
` Risk budgeting
– Fund manager
` Monthly Risk Monitoring
– Dedicated HSBC Global Risk team measure & analyse ex-ante risk exposures
– Attributions for ex-post tracking error from Global Performance Measurement team
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– MSCI/Barra Risk Analytics & Northfields Software
Portfolio characteristics
Sector weights
Regional weights
Consumer Goods (8.9%)
Consumer Services (5.57%)
Health Care (22.59%)
Industrials (5.72%)
Oil & Gas (20.45%)
Technology (20.94%)
Telecommunications (9.05%)
Europe ex UK (14.89%)
UK (10.63%)
Japan (5.42%)
Asia Pacific ex Japan (6.02%)
Utilities (1.76%)
Source: HSBC Global Asset Management (UK) Limited, as at 27 February 2009
Non contractual document
North America (63.05%)
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Basic Materials (5.04%)
HSBC Amanah Global Equity Index Fund
Performance
0.00
-5.00
-10.00
-15.00
-20.00
-23.91 -23.28
-25.00
-30.00
-35.00
-31.80
-34.76
-34.68
-40.00
6 Months
-31.64
-37.33 -37.27
12 Months
2 years
Fund
Index
3 years
Performance explained by:
-0.35 Withholding Tax
-0.06 Comm/Charges
0.17 Cash
-0.66 Withholding Tax
-0.09 Comm/Charges
0.22 Cash
-1.10 Withholding Tax
-0.18 Comm/Charges
0.22 Cash
-1.53
-0.30
0.16
Estimated True TE
0.12 Estimated True TE
0.44 Estimated True TE
0.82 Estimated True TE
0.85
Source: HSBC Global Asset Management (UK) Limited as of 31 December 2008
Note: Past performance is not a guide to future performance. All performance is gross of fees. Launch date – April 2004
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Withholding Tax
Comm/Charges
Cash
HSBC Amanah Global Equity Index Fund
Fund terms
Legal structure
Sub-Fund of Luxembourg-based “HSBC Amanah Funds” SICAV
Investment company
HSBC Investment Funds (Luxembourg) SA
Investment advisor
SINOPIA Asset Management
Liquidity
Dealing daily by 3:00pm (CET)
Domicile
Luxembourg
Minimum initial
investment
A Share (available to all investors): USD 5,000 or its equivalent
I Share (only available for investors qualifying as institutional investors): USD
1,000,000 or its equivalent
1 March 2004
Shariah review
HSBC Amanah Global Equity index Fund is reviewed and approved by the HSBC
Amanah Shariah Advisory Board
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Launch date
Active Quant Strategies
Active equity management to outperform different
Islamic equity universes
` Objective is to deliver outperformance over the long term, using four
performance drivers:
– Equity exposure management
– Country allocation
– Sector allocation
– Stock selection
` Average tracking-error: [4%-6%]
` Fund range:
Indicative index*
Number of stocks
HSBC Amanah Global
Equity
Global Equities
Dow Jones Islamic Market
Index
Between 100 and 150
HSBC Amanah Europe
Equity
Eurozone, UK, Norway, Sweden, Denmark,
Switzerland and European emerging countries
Dow Jones Islamic Europe
Index
Between 80 and 120
HSBC Amanah Asia
Pacific ex-Japan Equity
Australia, China, Hong Kong, India, Indonesia,
Malaysia, New Zealand, Pakistan, Philippines,
Singapore, South Korea, Taiwan and Thailand
MSCI AC Asia Pacific ex Japan
Islamic Index
Between 100 and 150
* For indicative purposes only
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Investment universe
Investment process: Overview
Four sources of alpha
Global
Global
US
US
EZ
EZ
HK
HK
…/…
…/…
Health
Health Oil
Oil &
&
care
Gas
care
Gas
Tech
Tech
…/…
…/…
Islamic
Islamic index
index
SINOPIA
SINOPIA quantitative
quantitative equity
equity valuation
valuation model
model
Investable
Investable universe:
universe:
minimum
analysts
coverage
minimum analysts coverage &
& market
market
capitalisation
capitalisation
Islamic
Islamic market
market exposure
exposure relative
relative to
to all
all markets
markets
SINOPIA
SINOPIA quantitative
quantitative stock
stock scoring
scoring model
model
Expected
Expected return
return at
at country
country and
and sector
sector levels
levels
Stock
Stock expected
expected returns
returns
Country
Country allocation
allocation
Sector
Sector allocation
allocation
Shariah
Shariah compliant
compliant portfolio
portfolio
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Stock
Stock selection
selection
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Exposure
Exposure
management
management
Investment process - Valuation
Valuation model
Forecast
Forecast
data
data
Non contractual document
Macro
Macro economic
economic
variables
variables
Earnings
Earnings growth
growth
Market
Market
Market
Market
Market
Market
Consensus
Consensus forecast
forecast
Consensus
Consensus forecast
forecast
(GDP
(GDP growth,
growth, CPI
CPI …)
…)
I/B/E/S
I/B/E/S data
data based
based on
on
10,000
analysts’
estimates
10,000 analysts’ estimates
with
with over
over 1,500
1,500 company
company
visits
visits per
per week
week
Equity
Equity market
market valuation
valuation signal
signal
(for
(for each
each country/sector/stock
country/sector/stock and
and for
for the
the market
market as
as aa whole)
whole)
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Output
Output
Inputs
Inputs
Current
Current
data
data
Short
Short term
term
interest
interest rates
rates
Investment process: Allocation
Active risk management
Equity exposure
Expected
returns
Country exposure
Optimisation:
country &
sector
correlation
Sector exposure
Individual stock
exposure
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Investment process: Implementation
Controlling trading costs is crucial
` Review with trading desk to determine best trading strategy (ex. Basket
trading) to limit implicit costs and turnover:
– Search for lowest brokerage fees per basket
– Quantify and anticipate market impact
– Rely on proprietary historical transaction database and research analysis
– Adapt trading strategy to basket patterns
– Liquidity issues
` Monitor trading process
– Assistant fund manager liaising with traders and middle office
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Risk management and monitoring
An integral part of the investment process
` Performance verification and performance attribution
– Daily controls of main exposure to risk and performance factors
– Daily performance attributions performed by the assistant fund managers
– Weekly review of our valuation and risk models (Tactical Asset Allocation
committee)
` Investment Risk approach
– Beyond the quantitative management framework, additional ex-ante risk indicators
calculated through NorthField to check the risk of equity investments…
– Ex-ante tracking error, beta, etc.
– … taking into account fundamental, macro-economic and statistical risk factors
–
–
–
–
Market/Sector
Interest rates/Oil Price
Size/Growth-Value/Developed Markets
Currency risk
Performance
Performance &
& Risk
Risk Management
Management are
are inseparable
inseparable
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16465 – hsb1595
– The risk parameters (stock betas to each risk factor, variance and covariance matrix
of the risk factors, stocks specific risk) are updated each month
HSBC Amanah Global Equity Fund
Country/sector allocation as of end of February 2009
Top 10 countries
Country
United states
United Kingdom
France
Japan
Switzerland
Australia
Canada
Hong Kong
Italy
Germany
Sectors
Portfolio weight
55.81%
9.88%
4.49%
4.27%
3.03%
2.68%
2.56%
1.53%
1.32%
1.32%
DJIM weight
54.37%
7.65%
3.66%
6.16%
3.29%
2.09%
3.99%
1.43%
0.72%
3.04%
Sector
Portfolio weight
Health Care
20.54%
Oil and gas
18.47%
Technology
14.54%
Industrials
11.85%
Consumer Goods
8.78%
Basic Materials
8.61%
Consumer Services
7.38%
Utilities
4.92%
Telecommunications
4.90%
Financials
-
Active position
1.44%
2.23%
0.83
-1.89
-0.27
0.59
-1.43
0.10
0.60
-1.72
DJIM weight
19.20%
18.61%
16.05%
11.99%
7.61%
9.94%
6.43%
3.26%
6.56%
0.34%
Active position
1.34%
-0.14%
-1.51%
-0.14%
1.17%
-1.33%
0.95%
1.66%
-1.66%
-0.34%
Top 5 individual stocks' overexposures/top 5 underexposures
Country
United States
United States
United States
United States
United States
United States
United States
United Kingdom
United States
United States
Sector
Consumer Discretionary
Health Care
Health Care
Information Technology
Consumer Discretionary
Consumer Staples
Health Care
Energy
Energy
Telecommunication Services
Sources: SINOPIA , Dow Jones
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Funds Weight
1.18
1.50
1.16
0.98
0.94
0.76
0.66
0.42
0.45
0.59
Benchmark Weight
0.06
0.46
0.16
0.04
0.01
1.41
1.64
1.40
1.44
1.65
Bet
1.12
1.04
1.00
0.94
0.93
- 0.65
- 0.97
- 0.99
- 1.00
- 1.06
16465 – hsb1595
Name
AutoZone Inc.
Genentech Inc.
Biogen Idec Inc.
Western Digital Corp.
Guess? Inc.
Wal-Mart Stores Inc.
Johnson & Johnson
BP PLC
Chevron Corp.
AT&T Inc.
HSBC Amanah Global Equity Fund
Performance attribution from 30 November 2007
(inception date) to 27 February 2009
Return
Return in
in USD*
USD*
Fund
Fund
-49.69%
-49.69%
DJIM
DJIM index
index
-47.37%
-47.37%
Alpha
Alpha
-2.32%
-2.32%
Exposure
Exposure management
management
0.86%
0.86%
Country/sector
Country/sector allocation
allocation
0.02%
0.02%
Stock
Stock selection
selection
-3.39%
-3.39%
Dividends
Dividends
1.90%
1.90%
Technical
Technical effects
effects
-1.60%
-1.60%
Transaction
Transaction costs
costs
-0.11%
-0.11%
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* Performance gross of management fees – Past performance is no guarantee of future results. Sources: Dow Jones, SINOPIA
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HSBC Amanah Global Equity Fund
Fund terms
Legal structure
Sub-Fund of Luxembourg-based “HSBC Amanah Funds” SICAV
Investment company
HSBC Investment Funds (Luxembourg) SA
Investment advisor
SINOPIA Asset Management
Liquidity
Daily (orders taken up to 10:00 am CET)
Dealing currencies
USD, GBP, EUR, CHF, SGD*
Minimum initial
investment
A Share (available to all investors): USD 5,000 or its equivalent
I Share (only available for investors qualifying as institutional investors): USD
1,000,000 or its equivalent
30 November 2007
Shariah review
HSBC Amanah Global Equity Fund is reviewed and approved by the HSBC
Amanah Shariah Advisory Board
* And any other currencies as the Board of Directors may decide from time to time
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16465 – hsb1595
Launch date
HSBC Amanah Europe Equity Fund
Country/sector allocation as of end of February 2009
Top 10 countries
Country
United Kingdom
France
Germany
Switzerland
Netherlands
Italy
Denmark
Spain
Finland
Norway
Sectors
Portfolio weight
33.99%
16.48%
13.98%
12.49%
3.72%
3.43%
3.40%
3.31%
2.61%
2.07%
DJIM weight
34.11%
16.31%
13.55%
14.36%
2.94%
3.21%
2.35%
1.98%
3.42%
1.48%
Sector
Portfolio weight
Health Care
25.29%
Oil and gas
20.99%
Basic Materials
11.82%
Industrials
10.90%
Utilities
8.55%
Technology
7.13%
Telecommunications
6.25%
Consumer Goods
4.68%
Consumer Services
4.39%
Financials
/
Active position
-0.12%
0.17%
0.43%
-1.87%
0.77%
0.22%
1.05%
1.33%
-0.81%
0.59%
DJIM weight
24.44%
20.94%
11.86%
11.51%
9.87%
7.00%
5.85%
5.09%
3.39%
0.03%
Active position
0.84%
0.05%
-0.04%
-0.60%
-1.32%
0.13%
0.40%
-0.41%
1.00%
-0.03%
Top 5 individual stocks' overexposures/top 5 underexposures
Country
Spain
Switzerland
Switzerland
Spain
Netherlands
Switzerland
Germany
Switzerland
United Kingdom
United Kingdom
Sector
Industrials
Materials
Health Care
Consumer Discretionary
Consumer Discretionary
Industrials
Industrials
Health Care
Energy
Telecommunication Services
Sources: SINOPIA , Dow Jones
Non contractual document
26
Funds Weight
1.54
2.56
1.76
1.78
1.70
0.55
1.19
3.63
5.07
3.74
Benchmark Weight
0.03
1.07
0.36
0.41
0.34
1.46
2.14
4.59
6.14
4.83
Bet
1.51
1.49
1.41
1.36
1.36
-0.91
-0.95
-0.96
-1.07
-1.09
16465 – hsb1595
Name
Technicas Reunidas S.A.
Syngenta AG
Synthes Inc.
Industria de Diseno Textil S.A.
Reed Elsevier N.V.
ABB Ltd
Siemens AG
Novartis AG
BP PLC
Vodafone Group PLC
HSBC Amanah Europe Equity Fund
Fund terms
Legal structure
Sub-Fund of Luxembourg-based “HSBC Amanah Funds” SICAV
Investment company
HSBC Investment Funds (Luxembourg) SA
Investment advisor
SINOPIA Asset Management
Liquidity
Daily (orders taken up to 1:00 pm CET)
Dealing currencies
USD*
Minimum initial
investment
A Share (available to all investors): USD 5,000 or its equivalent
I Share (only available for investors qualifying as institutional investors): USD
1,000,000 or its equivalent
13 January 2009
Shariah review
HSBC Amanah Global Equity Fund is reviewed and approved by the HSBC
Amanah Shariah Advisory Board
* And any other currencies as the Board of Directors may decide from time to time
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Launch date
HSBC Amanah Asia Pacific ex Japan
Equity Fund
Country/sector allocation as of end – February 2009
Top 10 countries
Sectors
Country
Portfolio weight
DJIM weight
Active position
Australia
21.11%
20.93%
0.18%
China
24.80%
23.38%
1.42%
Hong Kong
7.43%
7.78%
-0.35%
India
5.62%
7.15%
Portfolio
weight
DJIM weight
Active position
Information Technology
19.50%
18.76%
0.75%
Materials
17.46%
18.98%
-1.52%
-1.54%
Telecommunication
Services
17.21%
15.53%
1.68%
Sector
Indonesia
1.18%
1.34%
-0.16%
Energy
16.64%
15.78%
0.86%
Korea
16.50%
15.01%
1.49%
Industrials
9.85%
10.19%
0.33%
Malaysia
2.89%
2.36%
0.26%
Financials (Real estate)
4.82%
5.91%
1.09%
New Zealand
0.31%
0.32%
-0.01%
Utilities
4.76%
4.16%
0.61%
Philippines
0.00%
0.27%
-0.27%
Consumer Discretionary
4.67%
4.44%
0.23%
0.31%
Consumer Staples
2.71%
3.68%
0.98%
Health Care
2.37%
2.58%
0.21%
Singapore
4.16%
3.85%
Top 5 individuel stocks' over exposures/top 5 underexposures
Country
Sector
Funds Weight
Benchmark Weight
Bet
RELIANCE INDS LTD GDR 144A
India
Energy
3.18
0.00
3.18
CSL Limited Ordinary NPV Fully Paid
Australia
Health Care
2.37
0.00
2.37
THAI OIL PCL THB10(ALIEN MKT)
Thailand
Energy
1.05
0.00
1.05
Samsung Electronics Co. Ltd.
Korea
Information Technology
5.99
4.98
1.00
LARSEN AND TOUBRO LTD GDR REG S
India
Industrials
0.97
0.00
0.97
ASUSTeK Computer Inc.
Taiwan
Information Technology
0.31
0.51
-0.21
China Petroleum & Chemical Corp.
China
Energy
1.03
1.27
-0.24
Hang Lung Properties Ltd.
Hong Kong
Financials
0.30
0.58
-0.28
MTR Corp. Ltd.
Hong Kong
Industrials
0.14
0.46
-0.32
Li & Fung Ltd.
Hong Kong
Consumer Discretionary
0.40
0.73
-0.33
Sources: SINOPIA , Dow Jones
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16465 – hsb1595
Name
HSBC Amanah Asia Pacific ex Japan Equity Fund
Fund terms
Legal structure
Sub-Fund of Luxembourg-based “HSBC Amanah Funds” SICAV
Investment company
HSBC Investment Funds (Luxembourg) SA
Investment advisor
SINOPIA Asset Management (Asia Pacific) Limited
Liquidity
Daily (orders taken up to 5:00pm CET)
Dealing currencies
USD*
Minimum initial
investment
A Share (available to all investors): USD 5,000 or its equivalent
I Share (only available for investors qualifying as institutional investors): USD
1,000,000 or its equivalent
9 January 2009
Shariah review
HSBC Amanah Asia Pacific ex Japan Equity Fund is reviewed and approved by
the HSBC Amanah Shariah Advisory Board
* And any other currencies as the Board of Directors may decide from time to time
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Launch date
SINOPIA 's Equity Management
Key strengths
` SINOPIA has over 15 years experience in managing global equities with USD
10bn AUM as of end-December 2008*
` Unique and robust Active Quantitative process:
– research-driven (based on fundamental data)
– structured, disciplined and replicable
– sophisticated risk management
` Transparency:
– total availability of information (daily NAVs, weekly TAA, monthly reports, frequent
contacts with the fund managers and the sales specialists)
– regular performance attributions
– sharing of expertise (management/R&D events, publications, conference calls, etc.)
– ability to fit the clients' constraints: financial aspects (e.g. Shariah guidelines), risk
management, operations (counterparts, custodians, etc.)
Source: SINOPIA Asset Management – * EUR/USD conversion rate of 1.39005 based on currency spot rate as of 31 December 2008
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` Flexible investment solutions
Appendix
Compliance with Shariah
Central Shariah Committee members
Sheikh Nizam Yaquby
He is a Graduate in Economics and Comparative Religion from Mc Gill University and is an
internationally acclaimed scholar in the Islamic banking industry. He has been a teacher of Tafsir
since 1976. He advises a number of banks and financial institutions including Abu Dhabi Islamic Bank,
BNP Paribas, Dow Jones, Lloyds TSB and Standard Chartered on Islamic banking and finance.
Sheikh Dr Mohamed Elgari
He holds a PhD in Economics from the University of California. He is a Professor of Islamic Economics
and the director of the Centre for Research in Islamic Economics at King Abdulaziz University in
Saudi Arabia. He is an expert at the Islamic Jurisprudence Academy (OIC), Jeddah. Dr Elgari is the
editor of the Review of Islamic Economics. He is also an adviser to several Islamic financial
institutions worldwide and the author of many books on Islamic banking.
Dr Mohamed Imran Ashraf Usmani
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He holds a PhD in Islamic Finance. He also obtained degrees of Alimiyyah and Takhassus
(specialisation in Islamic Jurisprudence) from Jamia Darul Uloom, Karachi. His area of expertise is
Islamic Finance in which he has carried out extensive research. Dr. Usmani is a faculty
member/teacher of Jamia Darul Uloom, Karachi and Institute of Business Administration (IBA),
Karachi. He is the author of various books on Shariah (Islamic law).
Purification costs
` The Fund receives company dividends generated as part of a company’s
normal business operations. However, any proportion of income received
from non-compliant activities are paid to HSBC in the Community
foundation and thereby ‘purified’
` Dividend purification cost ratio. This ratio is provided to investors for
purification purpose, it is calculated as:
– Dividend * (Non-permissible revenue/Total revenue)
` Purification costs are calculated on an annual basis. This ratio is then applied
to the dividend income received from the companies to arrive at the impure
income for each company included in the portfolio
` The calculations are reviewed and approved by the Shariah Committee
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` The ratio of impure income varies from company to company and portfolio
to portfolio (depending on the composition of the portfolio). It can range
from 3.0% to 5.0% of the dividend income of a fund's holdings
SINOPIA 's Equity Management Team
Jean-François
Jean-François Schmitt
Schmitt (8/15)
(8/15)
Global
Global Head
Head of
of Equity
Equity –– SINOPIA
SINOPIA Asset
Asset Management
Management
Manager
Manager of
of
the
HSBC
the HSBC
Amanah
Amanah
Global
Global Equity
Equity
and
the
and the
Amanah
Amanah
Europe
Europe Equity
Equity
Funds
Funds
Manager
Manager of
of the
the
HSBC
HSBC Amanah
Amanah
Global
Global Equity
Equity
Index
Index Fund
Fund
`` Paris
Paris
–– François
François Dossou,
Dossou, Deputy
Deputy Head
Head
(10/10)
(10/10)
–– Patrick
Patrick Gautier
Gautier (7/9)
(7/9)
–
Jeanne Follet (1/9)
–
Malika Ouznadji (7/7)
–– Laurence
Laurence Jobert
Jobert (1/9)
(1/9)
66 Equity
Equity traders
traders
`` London
London
–– Nils
Nils Jungbacke,
Jungbacke, CFA
CFA (7/11)
(7/11)
–– Harvey
Harvey Sidhu
Sidhu (8/10)
(8/10)
–
Sunny Wu (4/6)
`` Hong
Hong Kong
Kong
`` Paris
Paris
–– Jérôme
Jérôme Allouche,
Allouche, Deputy
Deputy Head
Head
(1/8)
(1/8)
–– Julien
Julien Tourchon
Tourchon (1/6)
(1/6)
–– Ekaterina
Ekaterina Diatchenko
Diatchenko (2/4)
(2/4)
–– Elena
Ripca
(1/1)
Elena Ripca (1/1)
–– Gabriel
Gabriel Teboul
Teboul (1/1)
(1/1)
–– Bénédicte
Bénédicte Mougeot,
Mougeot, Deputy
Deputy Head
Head
(13/13)
(13/13)
33 assistant
assistant managers
managers
`` Hong
Hong Kong
Kong
`` Paris
Paris
–– Elie
Elie El
El Khoueiri
Khoueiri (3/3)
(3/3)
–– Abderrahman
Abderrahman Belcaïd
Belcaïd (3/3)
(3/3)
–– Sylvain
Sylvain Treilles
Treilles (1/1)
(1/1)
–– Jérémy
Jérémy Pierre
Pierre (1/1)
(1/1)
Non contractual document
Céline
Céline Boué-Deschamps
Boué-Deschamps (9/9)
(9/9)
Head
Head of
of Trading
Trading
34
16465 – hsb1595
Manager
Manager of
of the
the
HSBC
HSBC Amanah
Amanah
Asia
Asia Pacific
Pacific ex
ex
Japan
Equity
Japan Equity
Fund
Fund
10
10 portfolio
portfolio managers
managers
Disclaimer
►
►
►
►
►
►
►
►
►
►
►
►
††Source: Dow Jones and Dow Jones Islamic Market Titans Index SM are service marks of Dow Jones & Company, Inc. and will be licensed for use by HSBC
Investment Funds (Luxembourg) S.A. The HSBC Amanah Global Equity Index Fund is not sponsored, endorsed, sold or promoted by Dow Jones and Dow Jones
makes no representation regarding the advisability of investing in the Fund.
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35
16465 – hsb1595
►
This document is intended for investment professionals only and should not be distributed to retail clients.
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 contents of this presentation are confidential and may not be reproduced or further distributed to any person or entity, whether in whole or
in part, for any purpose. HSBC Global Asset Management (UK) Limited has based this presentation on information obtained from sources it believes to be reliable but
which it has not independently verified. HSBC Global Asset Management (UK) Limited and HSBC Group accept no responsibility as to its accuracy or completeness.
This presentation is intended for discussion only and shall not be capable of creating any contractual or other legal obligations on the part of HSBC Global Asset
Management (UK) Limited or any other HSBC Group company. Care has been taken to ensure the accuracy of this presentation but HSBC Global Asset
Management (UK) Limited accepts no responsibility for any errors or omissions contained therein.
This presentation and any issues or disputes arising out of or in connection with it (whether such disputes are contractual or non-contractual in nature, such as claims
in tort, for breach of statute or regulation or otherwise) shall be governed by and construed in accordance with English law.
HSBC Amanah Funds SICAV is a Luxembourg domiciled SICAV and is regulated by the CSSF. The Financial Services Authority has recognised the Fund in the UK. UK
based investors in HSBC Amanah Funds SICAV are advised that they may not be afforded some of the protections conveyed by the provisions in the Financial
Services and Markets Act 2000 including the UK Financial Services Compensation Scheme.
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. HSBC
Amanah Funds SICAV 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 HSBC Amanah Funds SICAV 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, 8 Canada Square, Canary Wharf, London, E14 8BQ, UK or
the local distributors.
The securities representing interests in HSBC Amanah Funds SICAV 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.
The value of investments may go down as well as up and you may not get back the full amount you invested.
Where overseas investments are held the rate of exchange may cause the value of investments to go down as well as up.
Markets in some countries can be described as ‘emerging markets’. Some of these may involve a higher risk than where an investment is within a more established
market. Where a sub-fund invests predominately in one geographical area, any decline in economic conditions may affect prices and the value of underlying
investments. It is possible that the restrictions placed on investment such as the prohibition on the use of interest bearing investments, the donations to approved
Charities and the limited universe of stocks available to the Investment Adviser may result in the funds performing less well than funds with similar investment
objectives which are not subject to Shariah restrictions. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC
Global Asset Management (UK) Limited accepts no liability for any failure to meet such forecast, projection or target.
This document is issued in the UK by HSBC Global Asset Management (UK) Limited. Authorised and regulated by the Financial Services Authority. © Copyright.
HSBC Global Asset Management 2009. All Rights Reserved.16465/FP09-0366