hsbc canadian money market pooled fund · the hsbc canadian money market pooled fund rose 1.55% for...

HSBC Canadian Money MarketPooled Fund

Annual Management Report of FundPerformancefor the year ended December 31, 2018

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC CanadianMoney Market Pooled Fund.

We are the manager and primary investment advisor of theFund.

IntroductionThis Annual Management Report of Fund Performance containsfinancial highlights but does not contain either the semi-annualfinancial report or annual financial statements of the investmentfund. You may obtain a copy of the Fund’s semi-annual financialreport or annual financial statements at your request, at no cost,by calling us toll-free at 1-888-390-3333, by visiting our websiteat www.assetmanagement.hsbc.ca, by visiting the SEDARwebsite at www.sedar.com or by writing to us at:

Corporate SecretaryHSBC Global Asset Management (Canada) Limited3rd Floor, 885 West Georgia StreetVancouver, BC V6C 3E8

You may also contact us using one of these methods to request acopy of the Fund’s interim financial report, proxy voting policies andprocedures, proxy voting disclosure record or quarterly statementof investment portfolio.

Investment Objective and StrategiesThe fundamental investment objective of this Fund is to providea high level of monthly interest income while preserving capital.

To achieve its objectives, the Fund invests primarily inhigh-quality, short-term Canadian fixed income securitiesdenominated in Canadian dollars such as treasury bills and otherfixed income securities issued or guaranteed by the Governmentof Canada or a province of Canada, a foreign government orrelated foreign government agency, or a Canadian or foreigncorporation. The Fund may invest up to 33% of its assets inCanadian-dollar-denominated foreign securities. All of theFund’s securities will have a term to maturity of 365 days orless, with an average term to maturity of no more than 60 days.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. During the year, there were no materialchanges to the Fund that affected the overall risk level of theFund.

This Fund is suitable for investors who want to earn interestincome and preserve their capital, have a short-term investmenttime horizon and have a low tolerance for risk.

Results of OperationsAs of December 31, 2018, the Fund’s net assets decreased by3.6% to $224.8 million from $233.3 million at the end of 2017.Net withdrawals, partially offset by positive investmentperformance, resulted in an overall decrease in net asset value.

Investment PerformanceThe HSBC Canadian Money Market Pooled Fund rose 1.55% forthe 12 months ending December 31, 2018, while the benchmarkrose 1.32% over the same period. The benchmark is a weightedcomposite consisting of the FTSE Canada 30 Day T-Bill Index(50%) and FTSE Canada 60 Day T-Bill Index (50%). The Fund’sreturns are after the deduction of fees and expenses, while thebenchmark’s returns do not include any costs of investing.

The marginal improvement in portfolio and market returnscompared to 2017 reflects the slightly higher investable rateenvironment following three Bank of Canada policy rateincreases in 2018.

We took a defensive position to the corporate debt sector in2018, focusing on high-quality issues to minimize credit andliquidity risk. We also increased our holdings in floating ratenotes to take advantage of the rising rate environment.

We also look to add value by adjusting the weighted averagematurity (or duration) of the portfolio holdings relative to theFund’s benchmark. Over the year, the Fund’s duration wastargeted below its blended 45-day benchmark after the January2018 Bank of Canada rate hike and in anticipation of furtherhikes in 2018.

Recent DevelopmentsThe Bank of Canada raised its policy rate three times in 2018,from 1.00% to 1.75%, following strong economic data releasesin the second half of 2017 and the first nine months of 2018.These figures included positive readings from GDP and inflation,as well as growth in jobs and wages. The resolution to the NorthAmerican Free Trade Agreement (NAFTA) also removed some ofthe downside risk to the Bank’s outlook.

Global growth remained above 3% in 2018. The macroenvironment continues to be one of cyclical divergence betweenNorth America and the rest of the world. Growth in the UScontinues to track well above trend rates, while other developedcountries and emerging economies have lost momentum. TheCanadian economy has seen ongoing strong employmentgrowth, partially offset by dislocations in the energy sector.While growth slowed in the last quarter of 2018, the outlook foreconomic growth remains at or slightly ahead of potential.

Looking ahead, we expect one or two rate hikes from the Bankof Canada in 2019.

Related Party TransactionsWe, on behalf of the Fund, or the Fund Manager, may, fromtime to time, enter into transactions or arrangements with orinvolving other members of the HSBC Group or other people orcompanies related or connected to us or the Fund. To proceedwith the transactions, the Fund relies on the positiverecommendation of the Fund’s Independent Review Committee. Acondition of this positive recommendation is that the transactionsare performed in accordance with our policy on Related PartyTransactions. For more general information on persons related tothe Fund and the types of potential transactions, see the Fund’sSimplified Prospectus.

The following is a summary of current transactions andarrangements with entities that are related to us or the Fund.

Manager and Investment AdvisorWe are the manager and primary investment advisor of theFund. As manager, we manage the overall business andoperations of the Fund. As primary investment advisor, weprovide investment advice and portfolio management servicesto the Fund. We receive a fee from the Fund for these services.

Trustee ServicesFor the year ended December 31, 2018, the Fund paid HSBCTrust Company (Canada) (an affiliate) $1,000 (December 31,2017, $2,000) for acting as trustee.

HSBC Canadian Money Market Pooled Fund

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Distribution ServicesThe Fund is distributed through us and HSBC Investment Funds(Canada) Inc. (our wholly owned subsidiary). We may paydistribution and servicing fees to our related party distributorbased on the value of the units held in the investor’s account,and additionally, in some cases, on the amount of theinitial purchase.

Financial HighlightsThe following tables show selected key financial informationabout the Fund and are intended to help you understand theFund’s financial performance for the past five years. Thisinformation is derived from the Fund’s audited annual financialstatements. The information in the following tables is based onprescribed regulations, and, as a result, is not expected to adddown due to the increase/decrease in net assets fromoperations being based on average units outstanding during theyear and all other numbers being based on actual unitsoutstanding at the relevant point in time.

HSBC Canadian Money Market Pooled Fund –Net Assets per Unit(1)Years ended December 31

2018 2017 2016 2015 2014

Net assets per unit, beginning ofyear (2) $10.00 $10.00 $10.00 $10.00 $10.00

Increase (decrease) fromoperations:

Total revenue 0.16 0.09 0.07 0.08 0.09Total expenses (0.01) (0.01) (0.01) – (0.01)Realized gains (losses) – – – – –Unrealized gains (losses) – – – – 0.01

Total increase (decrease) fromoperations (2) $0.15 $0.08 $0.06 $0.08 $0.09

Distributions to unitholders:From net investment income

(excluding dividends) (0.15) (0.08) (0.06) (0.08) (0.09)From dividends – – – – –From capital gains – – – – –Return of capital – – – – –

Total annual distributions (2,3) $(0.15) $(0.08) $– $(0.08) $(0.09)

Net assets per unit at December31 of year shown (2) $10.00 $10.00 $10.00 $10.00 $10.00

Ratios and Supplemental Data2018 2017 2016 2015 2014

Net Asset Value (in000s) (4) $224,832 $233,288 $195,956 $175,524 $170,332Number of unitsoutstanding (in000s) (4) 22,483 23,329 19,596 17,552 17,033Managementexpense ratio("MER") (5) 0.06% 0.06% 0.05% 0.05% 0.10%MER before waiversor absorptions (5) 0.06% 0.06% 0.05% 0.05% 0.10%Trading expenseratio (6) n/a n/a n/a n/a n/aNet Asset Value perunit (4) $10.00 $10.00 $10.00 $10.00 $10.00

(1) This information is derived from the Fund’s audited annual financialstatements. All balances are stated in IFRS. Under IFRS, the netassets per unit presented in the financial statements is the same asthe net asset value calculated for fund pricing purposes.

(2) Net assets per unit and distributions per unit are based on the actualnumber of units outstanding at the relevant time. Theincrease/decrease in net assets from operations per unit is based onthe weighted average number of units outstanding over thefiscal year.

(3) Distributions are automatically reinvested in additional units of theFund, unless the unitholder withdraws from the automaticreinvestment plan by providing written notice to us.

(4) This information is provided as at December 31 of the year shown.(5) MER is based on total expenses (excluding distributions,

commissions and other portfolio transaction costs) for the statedyear and is expressed as an annualized percentage of daily averagenet asset value during the year. The MER may vary from one mutualfund to another.

(6) The trading expense ratio represents total commissions and otherportfolio transaction costs expressed as an annualized percentage ofdaily average net asset value during the year.

Management FeesFor the year ended December 31, 2018, the Fund did not paymanagement fees. You pay us, HSBC Investment Funds(Canada) Inc., HSBC Private Wealth Services (Canada) Inc. oryour approved advisor a management fee that is based on theamount you have invested with us or your approved advisor(which may be subject to certain minimum annual fees). It isnegotiated between you and us, HSBC Investment Funds(Canada) Inc. or your approved advisor. Further details can befound in the Fund’s Simplified Prospectus.

Management fees paid to us were used to pay costs formanaging the investment portfolio, providing investmentanalysis and recommendations, making investment decisions,making brokerage arrangements for the purchase and sale ofthe investment portfolio and providing other services. Themanagement fees also funded commission payments and othercompensation (collectively “distribution costs”) to salesrepresentatives and registered dealers and brokers, includingHSBC Investment Funds (Canada) Inc. and HSBC Bank Canada,for units of the Fund bought and held by unitholders. Finally, weused management fees to pay for additional marketing anddistribution services to the Fund.

For the year ended December 31, 2018, approximately 42% ofthe total management fees paid to us for all HSBC Pooled Fundswere used to fund distribution costs.


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Past PerformanceThe performance information shown assumes that alldistributions made by the Fund in the years shown werereinvested in additional securities of the Fund. The performanceinformation does not take into account management fees, sales,redemption, distribution, optional charges or expenses you maybe charged outside of the Fund or the effect of any income taxyou may have to pay as a result of your investment in the Fundthat would have reduced returns or performance. The Fund’spast performance does not necessarily indicate how it willperform in the future.

Year-by-Year ReturnsYears ended December 31The following bar chart shows the Fund’s annual performancefor each of the years shown, and illustrates how the Fund’sperformance changed from year to year. In percentage terms,the bar chart shows how much an investment made on the firstday of each financial year would have grown or decreased bythe last day of each financial year.

Annual Returns

0.6% 0.5%1.0% 1.0% 1.0% 1.0% 0.7% 0.7% 0.8%

1.5%

0%

5%

10%

Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 312009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Summary of Investment PortfolioAs at December 31, 2018

Asset MixPercentage

of NAV

Corporate Bonds 70.05%Government Bonds 30.03%Cash & Equivalents -0.08%Total 100.00%

Top 25 HoldingsPercentage

of NAV

Canada Housing Trust No. 1, 1.95%, 06/15/2019 6.00%Government of Canada, 1.68%, 01/24/2019 4.53%Royal Bank of Canada, 1.70%, 01/02/2019 4.01%Fédération des caisses Desjardins du Québec, 1.75%,01/02/2019 3.56%Bank of Nova Scotia, 1.70%, 01/02/2019 3.11%Province of Alberta, 1.90%, 01/29/2019 2.22%Ontario Teachers' Finance Trust, 2.03%, 02/15/2019 2.21%JPMorgan Chase & Co., 2.13%, 01/11/2019 2.18%Bank of Nova Scotia, 2.40%, 08/27/2019 2.11%Province of Quebec, 1.81%, 01/03/2019 2.11%MUFG Bank, Ltd., Canada Branch, 2.05%, 01/14/2019 2.10%OMERS Finance Trust, 2.07%, 01/07/2019 2.03%Royal Bank of Canada, 2.37%, 06/19/2019 2.00%BNP Paribas, 2.12%, 02/05/2019 1.99%Bank of China, 2.17%, 01/03/2019 1.89%CAFO Inc., 2.28%, 01/22/2019 1.89%Financement-Quebec, 2.51%, 05/29/2019 1.89%Greater Toronto Airports Authority, 2.18%, 01/14/2019 1.89%Imperial Oil Limited, 2.01%, 01/10/2019 1.89%Mizuho Bank, Ltd., 2.24%, 01/28/2019 1.89%Toronto-Dominion Bank, 2.25%, 07/31/2019 1.89%National Bank of Canada, 2.20%, 03/25/2019 1.88%Sumitomo Mitsui Banking Corporation, 2.19%, 03/07/2019 1.88%Manulife Bank of Canada, 2.28%, 06/19/2019 1.87%Ontario Teachers' Finance Trust, 2.08%, 03/12/2019 1.77%Total of Top 25 Holdings 60.79%

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund, and is available quarterly.


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For more informationYou can find more information about HSBC Pooled Fundsin the Fund’s Simplified Prospectus, Annual InformationForm, Annual and Semi-Annual Report and Fund Facts.You can get a copy of these documents at no cost bycalling us toll-free at 1-888-390-3333, contacting yourauthorized dealer or visiting our websiteat www.assetmanagement.hsbc.ca.

These documents and other information about the Fund,such as information circulars and material contracts, arealso available at www.sedar.com.

Copies of the Annual and Semi-Annual Report, SimplifiedProspectus, Annual Information Form, Annual and InterimManagement Report of Fund Performance and FundFacts are available on our websiteat www.assetmanagement.hsbc.ca.

How to reach usHSBC Global Asset Management (Canada) Limited

Vancouver3rd Floor, 885 West Georgia StreetVancouver, BC V6C 3E8

TorontoSuite 300, 70 York StreetToronto, ON M5J 1S9

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

Website: www.assetmanagement.hsbc.ca

A NOTE ON FORWARD-LOOKING STATEMENTS

This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statementsinclude statements that are predictive in nature that depend upon or refer to future events or conditions, or that include words such as “expects,”“anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be madeconcerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements arebased on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptionsabout the Fund and economic factors.

Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or impliedin any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limited to,general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets,business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events.

We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before makingany investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that theFund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise.

Sources: HSBC Global Asset Management (Canada) Limited, FTSE Global Debt Capital Markets Inc.

Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name ofcertain of the LSE Group companies. “FTSE®” “Russell®”, and “FTSE Russell®” are trademarks of the relevant LSE Group companies and are used by any otherLSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company that owns the index or the data.Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or datacontained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express writtenconsent. The LSE Group does not promote, sponsor or endorse the content of this communication.

Unauthorized reproduction, distribution, transmission or publication without our prior written consent is strictly prohibited.

Issued byHSBC Global Asset Management (Canada) Limited (20

19-0

3)D

FS

HSBC Mortgage Pooled Fund


Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC MortgagePooled Fund.





Investment Objective and StrategiesThe fundamental investment objective of this Fund is to provideinterest income while protecting invested capital.

To achieve its objectives, the Fund invests primarily in units ofthe HSBC Mortgage Fund, a mutual fund trust also managed byus. The HSBC Mortgage Fund purchases uninsuredCanadian-dollar-denominated mortgages from HSBC BankCanada (“the Bank”) or its subsidiaries. If any mortgagepurchased from the Bank or its subsidiaries is in default for 90days or more, the Bank will repurchase those mortgages.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. During the year, there were no materialchanges to the Fund that affected the overall risk level ofthe Fund.

This Fund is suitable for investors who want to earn interestincome and protect their capital, have a short-term investmenttime horizon and have a low tolerance for risk in their returns.

Results of OperationsAs of December 31, 2018, the Fund’s net assets increased by8.8% to $659.5 million from $606.1 million at the end of 2017.Net contributions and positive investment performance resultedin an overall increase in net asset value.

Investment PerformanceThe HSBC Mortgage Pooled Fund rose 1.79% for the 12-monthperiod ending December 31, 2018, while the benchmark rose2.15% over the same period. The benchmark is a weightedcomposite consisting of the FTSE Canada 1-Year MortgageIndex (45%), FTSE Canada 3-Year Mortgage Index (25%), FTSECanada 5-Year Mortgage Index (10%), FTSE Canada Short TermBond Index (10%) and FTSE Canada 91 Day T-Bill Index (10%),with a discount factor applied to mortgage components. TheFund’s returns are after the deduction of fees and expenses,while the benchmark’s returns do not include any costs ofinvesting.

In North American fixed income markets, solid but slowing USeconomic growth drove bond yields sharply lower in Q4, whichhelped push year-to-date returns back into the black. The overallshort-term bond market returned 1.91% in 2018.

Broad posted mortgage rates were higher in 2018, with the yieldon the FTSE Residential Mortgage Index rising to 4.29% from3.74% at the end of 2017. The yield differential betweenfive-year fixed mortgage rates and five-year Government ofCanada bonds widened over the year to 346 basis points from312 basis points at the end of 2017.

Overall, mortgages performed in line with short-termgovernment bonds over the full year, as their higher runningyield offset widening mortgage yield spreads. We believemortgage rates represent attractive value at current levels. Withthe yield spread now wider than its long-term historical average,the incremental yield advantage is considerable given thehistorically low interest rate environment.

The Fund’s relatively high running yield continues to be positivefor returns and will help offset some of the negative impacts ifmortgage rates move higher. Portfolio duration is conservativelypositioned below two years.

Recent DevelopmentsWith longer-term yields expected to rise modestly over the nextyear, we aim to maintain the Fund’s interest rate exposure at orslightly below the benchmark in the near term. The averageterm of the Fund remains conservative at less than two years.

The residential mortgage asset class continues to perform well,with strong asset quality (delinquency rates are near their cyclelows) and attractive valuations. We feel that the corporatesector remains fundamentally sound, with stable to improvingearnings growth and defensively positioned balance sheets.Sector valuations in credit markets have also improved slightlyin recent quarters.

We will look to hold an overweight position in mortgages andcontinue to prefer provincial and corporate bonds overGovernment of Canada bonds. We expect to remain overweightin these positions in the non-mortgage portion of the Fund.


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Mortgage Sale and Administration ServicesThe HSBC Mortgage Pooled Fund invests primarily in units ofthe HSBC Mortgage Fund. The HSBC Mortgage Fund purchasesits mortgages from HSBC Bank Canada (“the Bank”) (of whichwe are a wholly owned subsidiary) and its subsidiary, HSBCMortgage Corporation (Canada) (“Mortgage Corp.”), at anamount that will produce a yield to the HSBC Mortgage Fund ofnot more than 1/4 of 1% less than the interest rate at which theBank or Mortgage Corp. is making a similar commitment at thetime of purchase. The lesser yield of 1/4 of 1% is inconsideration of the agreement by the Bank to repurchase themortgages under certain circumstances. The proportion of thisfee for the HSBC Mortgage Pooled Fund amounted to$1,480,657 for the year ended December 31, 2018(December 31, 2017, $1,427,419).

To proceed with the transactions, the HSBC Mortgage Fundrelied on the approval of the Fund’s Independent ReviewCommittee by way of Standing Instruction. A condition of thisapproval was that the transactions were performed inaccordance with National Policy No. 29 and in accordance withall requirements of various relief orders that have been grantedto us by the regulators in relation to these kinds of transactions.

In addition, pursuant to an agreement between the Bank andthe HSBC Mortgage Fund, the HSBC Mortgage Fund will paythe Bank a fee for the administration of the mortgagespurchased from the Bank, which will be accrued and paid dailyas an expense to the HSBC Mortgage Fund. The administrationfee is equal to 0.10% annually of the value of the mortgagespurchased from the Bank. The proportion of this fee associatedwith the mortgages held by the HSBC Mortgage Pooled Fundamounted to $604,272 on December 31, 2018 (December 31,2017, $599,371).



Fund on Fund InvestingDuring the year, the Fund invested in units of the HSBCMortgage Fund, which is also managed by us.


HSBC Mortgage Pooled Fund – Net Assets perUnit(1)Years ended December 31

2018 2017 2016 2015 2014



Total revenue 0.26 0.25 0.27 0.29 0.28Total expenses – – – – –Realized gains (losses) (0.01) – – – 0.01Unrealized gains (losses) (0.07) (0.14) 0.05 (0.03) (0.02)




Total annual distributions (2,3) $(0.25) $(0.25) $(0.27) $(0.28) $(0.27)



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Net Asset Value (in000s) (4) $659,499 $606,055 $531,649 $477,314 $361,719Number of unitsoutstanding (in000s) (4) 65,157 59,453 51,442 46,402 35,101Managementexpense ratio("MER") (5) 0.13% 0.14% 0.14% 0.10% 0.08%MER before waiversor absorptions (5) 0.13% 0.14% 0.14% 0.10% 0.08%Trading expenseratio (6) n/a n/a n/a n/a n/aPortfolio turnoverrate (7) 5.69% 3.75% 8.82% 8.74% 8.13%Net Asset Value perunit (4) $10.12 $10.19 $10.34 $10.29 $10.31




(4) This information is provided as at December 31 of the year shown.

(5) MER is based on total expenses (including a portion of the operatingexpenses of the underlying funds in proportion to the Fund’sholdings in the other funds and excluding distributions,commissions and other portfolio transaction costs) for the statedyear and is expressed as an annualized percentage of daily averagenet asset value during the year. The MER may vary from one mutualfund to another. Please see the prospectus, Fund Facts and otherdisclosure documents for further details.


(7) The Fund’s portfolio turnover rate indicates how actively the Fund’sportfolio advisor manages its portfolio investments. A portfolioturnover rate of 100% is equivalent to the Fund buying and selling allof the securities in its portfolio once in the course of the year. Thehigher the Fund’s portfolio turnover rate in a year, the greater thetrading costs payable by the Fund in the year, and the greater thechance of an investor receiving taxable capital gains in the year.There is not necessarily a relationship between a high turnover rateand the performance of the Fund. The rate is calculated based onthe lesser of purchases or sales of securities divided by the averageweighted market value of the portfolio securities, excludingshort-term securities.

Management FeesFor the year ended December 31, 2018, the Fund did not paymanagement fees. You pay us, HSBC Investment Funds(Canada) Inc., HSBC Private Wealth Services (Canada) Inc. oryour approved advisor a management fee that is based on theamount you have invested with us or your approved advisor(which may be subject to certain minimum annual fees). It is

negotiated between you and us, HSBC Investment Funds(Canada) Inc. or your approved advisor. Further details can befound in the Fund’s Simplified Prospectus.





Annual Returns

6.2%

3.6%3.1% 2.8% 2.7% 2.6% 2.6%

3.1%

1.0%1.8%

0%

5%

10%



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Annual Compound ReturnsYear ended December 31, 2018The following table shows the Fund’s historical annualcompound total returns for the years indicated, compared withthe following benchmarks:

The new blended benchmark is composed of the FTSE CanadaResidential Mortgage 1-Year Index (45%), FTSE CanadaResidential Mortgage 3-Year Index (25%), FTSE CanadaResidential Mortgage 5-Year Index (10%), FTSE Canada ShortTerm Bond Index (10%), FTSE Canada 91 Day T-Bill Index (10%)and, with mortgage components discounted by an appropriateamount to reflect actual prevailing mortgage rates, over theprior year.

The old blended benchmark is composed of FTSE CanadaResidential Mortgage 1-Year Index (40%), FTSE CanadaResidential Mortgage 3-Year Index (20%), FTSE CanadaResidential Mortgage 5-Year Index (10%), FTSE Canada 91 DayT-Bill Index (10%) and FTSE Canada Short Term Bond Index(20%), with mortgage components discounted by anappropriate amount to reflect actual prevailing mortgage rates,over the prior year.

The change in benchmark better reflects the composition of theFund. There was an increase in residential mortgages andcorresponding reduction in short-term bonds.

The FTSE Canada Short Term Bond Index is a broad measure ofthe total return for the Canadian short-term bond market,covering marketable Canadian bonds with a term to maturitybetween one and five years. The FTSE Canada ConventionalResidential Mortgage Index (1-, 3- and 5-Year) is designed tomeasure total return on a hypothetical residential mortgage witha current mortgage rate. The FTSE Canada 91 Day T-Bill Index isa broad measure of the total return for the Canadian 91-daytreasury bill market, covering marketable Canadian treasury billswith a term-to-maturity of 91 days or less.

1 Year 3 Year 5 Year 10 Year

HSBC Mortgage Pooled Fund 1.79% 1.97% 2.22% 2.94%45% FTSE Canada 1 Yr Mortgage Index,25% FTSE Canada 3 Yr Mortgage Index,10% FTSE Canada 5 Yr Mortgage Index,10% FTSE Canada ST Bond Index, 10%FTSE Canada 91 Day T-Bill Index, with adiscount factor 2.15% 1.95% 2.26% 2.82%40% FTSE Canada 1 Yr Mortgage Index,20% FTSE Canada 3 Yr Mortgage Index,10% FTSE Canada 5 Yr Mortgage Index,20% FTSE Canada ST Bond, 10% FTSECanada 91 Day T-Bill Index, with adiscount factor 1.96% 1.75% 2.04% 2.54%FTSE Canada Short-Term Bond Index 1.91% 1.00% 1.73% 2.51%

(1) Due to the fact that several benchmark indices are only available ona monthly basis, the performance data for the HSBC Funds and thebenchmark indices are calculated using values from the firstmonth-end date each Fund was in operation.

(2) For investment commentary and relative performance of the Fund

compared to its benchmark, please refer to the Results of Operationssection of this report.

Summary of Investment PortfolioAs at December 31, 2018The Fund invests substantially all of its assets in the HSBCMortgage Fund – Institutional Series. The tables below give youa snapshot of the HSBC Mortgage Fund's investments onDecember 31, 2018.

Asset MixPercentage

of NAV

Residential Mortgages 75.20%Corporate Bonds 17.28%Government Bonds 1.97%Cash & Equivalents 5.55%Total 100.00%


of NAV

Residential Mortgages 75.20%Government of Canada, 6.86%, 12/01/2021 1.32%Citigroup Inc., 3.39%, 11/18/2021 0.48%TMX Group Ltd., 4.46%, 10/03/2023 0.45%MCAP RMBS Issuer Corp., 2.17%, 04/15/2019 0.41%Genworth MI Canada Inc., 5.68%, 06/15/2020 0.40%Aviva PLC, 4.50%, 05/10/2021 0.40%Bruce Power LP, 2.84%, 06/23/2021 0.39%Anheuser-Busch InBev Finance Inc., 2.60%, 05/15/2024 0.38%Sun Life Financial Inc., 2.60%, 09/25/2025 0.38%Saputo Inc., 1.94%, 06/13/2022 0.36%Toronto-Dominion Bank, 2.25%, 07/31/2019 0.36%Alimentation Couche-Tard Inc., 3.90%, 11/01/2022 0.35%Brookfield Asset Management Inc., 5.30%, 03/01/2021 0.35%Enbridge Inc., 3.94%, 06/30/2023 0.35%Pembina Pipeline Corp., 4.89%, 03/29/2021 0.35%Empire Life Insurance Co., 3.38%, 12/16/2026 0.32%Bank of America Corp., 3.23%, 06/22/2022 0.29%Canadian Natural Resources Ltd., 3.31%, 02/11/2022 0.29%Canadian Utilities Limited, 2.23%, 01/15/2019 0.29%Canadian Western Bank, 2.27%, 05/13/2019 0.29%Morgan Stanley, 3.13%, 08/05/2021 0.29%National Bank Financial, 1.65%, 01/02/2019 0.29%Bank of China (Canada), 2.25%, 02/04/2019 0.27%Choice Properties Real Estate Investment Trust, 3.01%,03/21/2022 0.27%Total of Top 25 Holdings 84.53%


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The Fund invests in other mutual funds, and the prospectus and other information about the underlying funds are available on SEDARat www.sedar.com.


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19-0

3)D

FS

HSBC Canadian BondPooled Fund


Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC CanadianBond Pooled Fund.





Investment Objective and StrategiesThe fundamental investment objective of this Fund is to provideregular income and long-term capital growth.

To achieve its objectives, the Fund invests primarily ininvestment-grade bonds, debentures, commercial andresidential mortgage-backed securities, asset-backed securitiesand other fixed income securities either issued or guaranteed bythe Government of Canada, a province or municipality ofCanada, Canadian corporations or Canadian master trusts.


This Fund is suitable for investors who want to earn interestincome and grow their capital, have a medium-term investmenttime horizon and have a low tolerance for risk in their returns.

Results of OperationsAs of December 31, 2018, the Fund’s net assets increased by4.5% to $1,022.3 million from $978.0 million at the end of 2017.Net contributions and positive investment performance resultedin an overall increase in net asset value.

Investment PerformanceThe HSBC Canadian Bond Pooled Fund rose 1.10% for the12-month period ending December 31, 2018, while thebenchmark FTSE Canada Universe Bond Index rose 1.41% overthe same period. The Fund’s returns are after the deduction offees and expenses, while the benchmark’s returns do notinclude any costs of investing.

In North American fixed income markets, solid but slowing USeconomic growth drove bond yields sharply lower in Q4, whichpushed year-to-date returns back into the black. The 10-yearGovernment of Canada bond yield, commonly looked at as aproxy for the broad market, finished Q4 at 1.97% compared to2.05% at the end of 2017. Government of Canada bonds werethe best-performing sector (2.39%), followed by corporatebonds (1.10%) and provincial bonds (0.66%).

The shape of the yield curve steepened slightly in Q4 with thedifference between two-year and 30-year Government ofCanada yields ending the year at 32 basis points. The yield curveremains close to its flattest level since the financial crisis.

The Fund’s overweight position in corporate bonds and itssecurity selection within corporate bonds were a drag onperformance, as was the Fund’s small exposure toemerging-market debt. The Fund’s higher running yield had apositive impact on relative returns, but this was offset by theFund’s lower duration, or interest rate risk.

Recent DevelopmentsAlthough Canadian economic growth slowed in the fourthquarter of 2018, the outlook remains at or slightly ahead ofpotential, with consensus forecasts projecting 2.1% and 1.9% in2018 and 2019.

Longer-term yields are expected to rise modestly over the nextyear, and we therefore aim to maintain the Fund’s interest rateexposure at or slightly below the benchmark in the near term.With yields at the short end of the yield curve now discountinglimited further rate hikes, we expect that upward pressure onlonger-term yields could lead to a steepening of the yield curve.

The corporate sector continues to look fundamentally sound,with the earnings and profit cycle remaining strong and creditdefaults remaining low. Further, an environment of reasonableglobal growth with low recession risk, subdued inflationpressures and limited macro volatility remains supportive, andsector valuations in credit markets have also improved in recentquarters. We continue to prefer provincial and corporate bondsover Government of Canada bonds and will maintain anoverweight position in these sectors.

Related Party TransactionsWe, on behalf of the Fund, or the Fund Manager, may, fromtime to time, enter into transactions or arrangements with orinvolving other members of the HSBC Group or other people orcompanies related or connected to us or the Fund. To proceed

HSBC Canadian Bond Pooled Fund

1

with the transactions, the Fund relies on the positiverecommendation of the Fund’s Independent Review Committee. Acondition of this positive recommendation is that the transactionsare performed in accordance with our policy on Related PartyTransactions. For more general information on persons related tothe Fund and the types of potential transactions, see the Fund’sSimplified Prospectus.





Fund on Fund InvestingDuring the year, the Fund invested in units of otherHSBC Mutual Funds, which are also managed by us.

Purchases of Securities Underwritten by a Related PartyDuring the year, the Fund invested in certain securities that wereunderwritten, in whole or in part, by entities that are a relatedparty to us. To proceed with the transactions, the Fund relied onthe approval of the Fund’s Independent Review Committee byway of Standing Instruction. A condition of this approval wasthat the transactions were performed in accordance with ourpolicy on Purchases of Securities Underwritten by aRelated Party.


HSBC Canadian Bond Pooled Fund – Net Assetsper Unit(1)Years ended December 31

2018 2017 2016 2015 2014



Total revenue 0.38 0.40 0.42 0.43 0.43Total expenses – (0.01) – (0.01) (0.01)Realized gains (losses) (0.01) 0.01 0.07 0.03 0.01Unrealized gains (losses) (0.24) 0.01 (0.19) (0.10) 0.51



(excluding dividends) (0.38) (0.38) (0.42) (0.42) (0.41)From dividends – – – – –From capital gains – – (0.09) – –Return of capital – – – – –




Net Asset Value (in000s) (4) $1,022,337 $977,991 $790,135 $762,227 $691,241Number of unitsoutstanding (in000s) (4) 87,221 81,697 66,245 62,820 56,750Managementexpense ratio("MER") (5) 0.05% 0.05% 0.05% 0.06% 0.07%MER beforewaivers orabsorptions (5) 0.05% 0.05% 0.05% 0.06% 0.07%Trading expenseratio (6) n/a n/a n/a n/a n/aPortfolio turnoverrate (7) 43.13% 37.53% 37.19% 21.85% 22.32%Net Asset Valueper unit (4) $11.72 $11.97 $11.93 $12.13 $12.18




(4) This information is provided as at December 31 of the year shown.

(5) MER is based on total expenses (including a portion of the operatingexpenses of the underlying funds in proportion to the Fund’sholdings in the other funds and excluding distributions,commissions and other portfolio transaction costs) for the stated


2

year and is expressed as an annualized percentage of daily averagenet asset value during the year. The MER may vary from one mutualfund to another. Please see the prospectus, Fund Facts and otherdisclosure documents for further details.


(7) The Fund’s portfolio turnover rate indicates how actively the Fund’sportfolio advisor manages its portfolio investments. A portfolioturnover rate of 100% is equivalent to the Fund buying and selling allof the securities in its portfolio once in the course of the year. Thehigher the Fund’s portfolio turnover rate in a year, the greater thetrading costs payable by the Fund in the year, and the greater thechance of an investor receiving taxable capital gains in the year.There is not necessarily a relationship between a high turnover rateand the performance of the Fund. The rate is calculated based onthe lesser of purchases or sales of securities divided by the averageweighted market value of the portfolio securities, excludingshort-term securities.






Annual Returns

7.3% 7.7%8.7%

5.1%

-0.1%

8.4%

3.1% 2.5%3.6%

1.1%

-5%

0%

5%

10%

15%


Annual Compound ReturnsYear ended December 31, 2018The following table shows the Fund’s historical annualcompound total returns for the years indicated, compared withthe benchmark index, the FTSE Canada Universe Bond Index,over the same period. This index is a broad measure of the totalreturn for the Canadian bond market, covering marketableCanadian bonds with a term to maturity of more than one year.


HSBC Canadian Bond Pooled Fund 1.10% 2.41% 3.72% 4.71%FTSE Canada Universe Bond Index 1.41% 1.86% 3.54% 4.16%


(2) For investment commentary and relative performance of the Fundcompared to its benchmark, please refer to the Results of Operationssection of this report.


3


Asset MixPercentage

of NAV

Corporate Bonds 47.26%Government Bonds 42.35%Mutual Funds 9.83%Cash & Equivalents 0.56%Total 100.00%


of NAV

HSBC Mortgage Fund - Institutional Series 7.26%Government of Canada, 4.00%, 06/01/2041 4.66%Government of Canada, 3.91%, 12/01/2036 4.52%Province of Ontario, 2.90%, 06/02/2049 4.44%HSBC Emerging Markets Debt Fund - Institutional Series 2.57%Province of Ontario, 2.85%, 06/02/2023 2.24%Province of Ontario, 5.60%, 06/02/2035 2.18%Province of Saskatchewan, 5.00%, 03/05/2037 2.04%Province of Alberta, 3.50%, 06/01/2031 1.88%Province of British Columbia, 2.80%, 06/18/2048 1.78%Province of Ontario, 1.35%, 03/08/2022 1.71%Province of New Brunswick, 3.55%, 06/03/2043 1.52%Province of Ontario, 2.60%, 06/02/2027 1.43%Peel Regional Municipality, 5.10%, 06/29/2040 1.13%Province of Manitoba, 4.05%, 09/05/2045 1.11%Enbridge Inc., 5.38%, 09/27/2077 1.06%Canadian Imperial Bank of Commerce, 1.64%, 07/12/2021 1.03%Sun Life Financial Inc., 2.60%, 09/25/2025 1.02%TMX Group Ltd., 4.46%, 10/03/2023 1.02%TransCanada Trust, 4.65%, 05/18/2077 1.01%Province of Manitoba, 3.25%, 09/05/2029 1.00%BHP Billiton Finance Ltd., 3.23%, 05/15/2023 0.98%Goldman Sachs Group Inc., 3.55%, 02/12/2021 0.98%Suncor Energy Inc., 3.10%, 11/26/2021 0.96%AT&T Inc., 3.83%, 11/25/2020 0.89%Total of Top 25 Holdings 50.42%


The Fund invests in other mutual funds, and the prospectus and other information about the underlying funds are available on SEDARat www.sedar.com.


4

















19-0

3)D

FS

HSBC Global High Yield BondPooled Fund


Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC Global HighYield Bond Pooled Fund.

We are the manager and primary investment advisor of theFund. We have hired HSBC Global Asset Management(USA) Inc. and HSBC Global Asset Management (France) assub-advisors to provide portfolio management and investmentadvisory services to the Fund. For an explanation of therelationship between us and the sub-advisors, see the sectionSelection of Sub-Advisors in the Fund’s Simplified Prospectus.




Investment Objective and StrategiesThe fundamental investment objective of this Fund is to provideincome and long-term capital growth.

To achieve its objectives, the Fund invests primarily in adiversified portfolio of non-investment-grade-rated fixed incomesecurities and other similar securities from around the world,typically denominated in US dollars or other foreign currency. Aportion of the Fund may be in the form of cash orcash equivalents.


This Fund is suitable for investors who want to earn interestincome and achieve modest long-term capital growth. Investorsin this Fund should have a medium- to long-term investmenttime horizon and a low to medium tolerance for risk intheir returns.

Results of OperationsAs of December 31, 2018, the Fund’s net assets decreased by19.3% to $242.4 million from $300.3 million at the end of 2017.Net withdrawals and negative investment performance resultedin an overall decrease in net asset value.

Investment PerformanceThe HSBC Global High Yield Bond Pooled Fund fell 3.93% forthe 12-month period ending December 31, 2018, while thebenchmark Bank of America Merrill Lynch BB-B Global HighYield Bond Constrained Total Return Index (hedged C$) fell

3.18% over the same period. The Fund’s returns are after thededuction of fees and expenses, while the benchmark’s returnsdo not include any costs of investing.

The Fund’s overweight position in the US component of itsportfolio and underweight position in the euro componentcontributed to negative performance as European bondsoutperformed US bonds over the year. Issue selection also had anegative impact, particularly in the emerging market and UScomponents of the portfolio.

This was a challenging year for global credit markets. While2018 started off strongly, investor concerns over rising rates andtrade issues led to increasing market volatility, culminating inconcerns in the fourth quarter of a global slowdown andincreased chances of a recession. This led to a global sell-off ofrisk assets. However, from an underlying credit fundamentalsperspective, the picture is still attractive. While there has beenleverage increase during this cycle, companies are activelymanaging their balance sheets to reduce their leverage. Defaultsare low and are expected to remain so into and through 2019.

The US Treasury curve flattened over the year, with two-, three-and five-year yields rising 61, 49 and 31 basis pointsrespectively, and 10-year and 30-year yields rising 28 basispoints. The yield on 10-year German bunds decreased 19 basispoints to 0.24%.

Recent DevelopmentsIn 2018, the Fund held overweight positions in US-dollar bondsand underweight positions in emerging market and euro bonds.In credit quality, the Fund is in line with the reference index.Within this rating, the Fund is overweight BBBs and CCCs andunderweight BBs and Bs. The BBB exposure largely reflectscaution in euro and emerging market bonds. This is balancedwith a preference for US-dollar bonds for selective CCC creditscompared to BB rated and B rated bonds. The CCC exposure islargely in more defensive industries.

The Fund holds overweight positions in basic materials andconsumer cyclicals and underweight positions in industrials andcommunications, where merger and acquisition activity andstretched valuations make the sector relatively less attractive.Energy exposure is underweight compared to the benchmark.The focus is primarily on pipelines and refiners, with lesseremphasis on exploration and production and oil field services.



HSBC Global High Yield Bond Pooled Fund

1


We have entered into sub-advisory agreements with HSBCGlobal Asset Management (USA) Inc. and HSBC Global AssetManagement (France), both related sub-advisors, under whichHSBC Global Asset Management (USA) Inc. and HSBC GlobalAsset Management (France) provide investment advice andportfolio management services to the Fund. We pay HSBCGlobal Asset Management (USA) Inc. and HSBC Global AssetManagement (France) fees based on assets undermanagement, calculated daily and paid quarterly. To proceedwith these transactions, the Fund relied on the positiverecommendation of the Fund’s Independent Review Committee.For more information on our ability to hire sub-advisors, see thesection Organization and Management of the HSBC Pooled Fundsin the Fund’s Simplified Prospectus.



Purchases of Securities Underwritten by a Related PartyDuring the year, the Fund invested in certain securities that wereunderwritten, in whole or in part, by entities that are a relatedparty to us. To proceed with the transactions, the Fund relied onthe approval of the Fund’s Independent Review Committee byway of Standing Instruction. A condition of this approval wasthat the transactions were performed in accordance with ourpolicy on Purchases of Securities Underwritten by aRelated Party.


HSBC Global High Yield Bond Pooled Fund –Net Assets per Unit(1)Years ended December 31

2018 2017 2016 2015 2014


Increase (decrease) from operations:Total revenue 0.48 0.47 0.48 0.52 0.57Total expenses (0.01) (0.01) (0.01) (0.01) (0.01)Realized gains (losses) (0.40) 0.34 0.06 (0.61) (0.41)Unrealized gains (losses) (0.39) (0.22) 0.41 (0.17) 0.19

Total increase (decrease) fromoperations (2) $(0.32) $0.58 $0.94 $(0.27) $0.34




Net assets per unit at December 31 ofyear shown (2) $7.55 $8.35 $8.23 $7.79 $8.51


Net Asset Value (in000s) (4) $242,435 $300,257 $271,812 $289,325 $246,359Number of unitsoutstanding (in000s) (4) 32,118 35,972 33,044 37,117 28,951Managementexpense ratio("MER") (5) 0.08% 0.09% 0.07% 0.06% 0.07%MER before waiversor absoptions (5) 0.08% 0.09% 0.07% 0.06% 0.07%Trading expenseratio (6) n/a n/a n/a 0.01% 0.01%Portfolio turnoverrate (7) 47.03% 51.31% 46.13% 89.89% 46.46%Net Asset Value perunit (4) $7.55 $8.35 $8.23 $7.79 $8.51




(4) This information is provided as at December 31 of the year shown.(5) MER is based on total expenses (excluding distributions,

commissions and other portfolio transaction costs) for the statedyear and is expressed as an annualized percentage of daily averagenet asset value during the year. The MER may vary from one mutualfund to another.


(7) The Fund’s portfolio turnover rate indicates how actively the Fund’sportfolio advisor manages its portfolio investments. A portfolio


2

turnover rate of 100% is equivalent to the Fund buying and selling allof the securities in its portfolio once in the course of the year. Thehigher the Fund’s portfolio turnover rate in a year, the greater thetrading costs payable by the Fund in the year, and the greater thechance of an investor receiving taxable capital gains in the year.There is not necessarily a relationship between a high turnover rateand the performance of the Fund. The rate is calculated based onthe lesser of purchases or sales of securities divided by the averageweighted market value of the portfolio securities, excludingshort-term securities.






Annual Returns

30.7%

9.2%6.0%

15.2%

8.1%4.7%

-2.6%

12.1%7.2%

-3.9%-10%

0%

10%

20%

30%

40%


Annual Compound ReturnsYear ended December 31, 2018The following table shows the Fund’s historical annualcompound total returns for the years indicated, compared withthe broad market index, Bank of America Merrill Lynch BB-BGlobal High Yield Bond Constrained Total Return Index (US$),and this same index converted to Canadian dollars, over thesame period. This index contains all securities in the Bank ofAmerica Merrill Lynch Global High Yield Index rated BB1through B3, based on an average of Moody’s, S&P and Fitch,but caps issuer exposure at 2%. The broad market indexconverted to Canadian dollars is used as proxy, as the Fund’sbenchmark, Bank of America Merrill Lynch BB-B Global HighYield Bond Constrained Total Return Index (hedged C$), doesnot have a full 10-year performance history.


HSBC Global High Yield BondPooled Fund -3.93% 4.89% 3.30% 8.29%BofA ML BB-B Global High Yield BondConstrained TR Index (US$) -3.18% 6.34% 3.20% 10.17%BofA ML BB-B Global High Yield BondConstrained TR Index (C$) 5.54% 5.75% 8.52% 11.29%


(2) For investment commentary and relative performance of the Fundcompared to its benchmark, please refer to the Results of Operationssection of this report.


Asset MixPercentage

of NAV

Corporate Bonds 93.93%Government Bonds 4.19%Cash & Equivalents 1.88%Total 100.00%


3

>

Geographic MixPercentage

of NAV

United States 55.07%Luxembourg 6.34%France 4.91%Netherlands 4.58%Canada 4.10%United Kingdom 2.77%Cayman Islands 2.38%Germany 1.84%Ireland 1.64%Switzerland 1.21%Brazil 1.14%Bermuda 1.04%Turkey 1.03%Argentina 0.89%Mexico 0.76%Japan 0.69%Jersey 0.61%Sweden 0.59%Peru 0.55%Bahamas 0.51%Italy 0.49%British Virgin Islands 0.46%Austria 0.43%South Africa 0.40%Sri Lanka 0.37%Finland 0.33%Colombia 0.28%Spain 0.28%Belgium 0.24%Mauritius 0.23%Denmark 0.22%Nigeria 0.22%India 0.21%Singapore 0.21%Costa Rica 0.20%Egypt 0.18%Ukraine 0.17%Mongolia 0.12%China 0.11%Kazakhstan 0.11%

Geographic MixPercentage

of NAV

Russia 0.11%Senegal 0.09%Venezuela 0.01%Cash & Equivalents 1.88%Total 100.00%


of NAV

United States Treasury Floating Rate Note, 2.48%, 10/31/2019 1.97%Golden Nugget Inc., 8.75%, 10/01/2025 1.17%Carlson Travel Inc., 6.75%, 12/15/2023 1.10%Zayo Group LLC / Zayo Capital Inc., 6.00%, 04/01/2023 1.02%Viking Cruises Ltd., 5.88%, 09/15/2027 0.93%Gulfport Energy Corp., 6.00%, 10/15/2024 0.88%Altice USA., 5.88%, 09/15/2022 0.82%Eagle Holding Co. II LLC, 7.63%, 05/15/2022 0.82%Park Aerospace Holdings Ltd., 5.50%, 02/15/2024 0.82%Telenet Finance Luxembourg Notes Sarl, 5.50%, 03/01/2028 0.82%Tenet Healthcare Corp., 8.13%, 04/01/2022 0.81%CenturyLink Inc., 5.75%, 12/01/2022 0.77%Warrior Met Coal Inc., 8.00%, 11/01/2024 0.77%Tempo Acquisition LLC / Tempo Acquisition Finance Corp.,6.75%, 06/01/2025 0.74%DISH DBS Corp., 6.75%, 06/01/2021 0.72%PBF Holding Co. LLC, 7.00%, 11/15/2023 0.71%Clearwater Paper Corp., 5.38%, 02/01/2025 0.70%SoftBank Group Corp., 6.88%, 12/31/2049 0.69%Jacobs Entertainment Inc., 7.88%, 02/01/2024 0.67%Intelsat Jackson Holdings SA, 8.50%, 10/15/2024 0.65%Plains All American Pipeline LP, 6.13%, 12/31/2049 0.64%Calpine Corp., 5.75%, 01/15/2025 0.63%Rose Rock Midstream LP / Rose Rock Finance Corp., 5.63%,11/15/2023 0.62%Select Medical Corp., 6.38%, 06/01/2021 0.62%Enterprise Merger Sub., Inc., 8.75%, 10/15/2026 0.61%Total of Top 25 Holdings 20.70%



4













Sources: HSBC Global Asset Management (Canada) Limited, BofA Merrill Lynch, Bloomberg.BofA Merrill Lynch, used with permission. BofA Merrill Lynch is licensing the BofA Merrill Lynch Indices "as is," makes no warranties regarding same, doesnot guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the BofA Merrill Lynch Indices or any data included in, related to, orderived therefrom, assumes no liability in connection with their use, and does not sponsor, endorse, or recommend HSBC Global Asset Management(Canada) Limited, or any of its products or services.



19-0

3)D

FS

HSBC Global Inflation LinkedBond Pooled Fund


Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of theFund; we, us and our refer to HSBC Global Asset Management(Canada) Limited; and the Fund refers to the HSBC GlobalInflation Linked Bond Pooled Fund.

We are the manager and primary investment advisor of theFund. We have hired HSBC Global Asset Management(UK) Limited as a sub-advisor to provide portfolio managementand investment advisory services to the Fund. For anexplanation of the relationship between us and the sub-advisor,see the section Selection of Sub-Advisors in the Fund’s SimplifiedProspectus.




Investment Objective and StrategiesThe fundamental investment objective of this Fund is togenerate income.

To achieve its objectives, the Fund will invest primarily in realreturn bonds and inflation-linked bonds issued by governmentsand corporations of countries around the world.

RiskThe risks of investi

hsbc canadian money market pooled fund · the hsbc canadian money market pooled fund rose 1.55% for...

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