hsbc pooled funds · 2014-03-27 · we, us and our refer to hsbc global asset management (canada)...

ˆ200G2csw9&b3g60=PŠ200G2csw9&b3g60=P

630082 P1E 1HSBC AR2013HSBC MRFP POOLEDFUND

29-Nov-2013 08:16 ESTCLN PSTRF

RR Donnelley ProFile NCR kumad1an 4*PMT 1C

ACXFBU-MWE-XN0711.3.14

art_01-1.0

HSBC Pooled Funds

Annual Management Report of Fund Performance

for the year ended December 31, 2013

ˆ200G2cswB9eFW@R&DŠ200G2cswB9eFW@R&D


14-Feb-2014 14:21 ESTCLN PSTRF

RR Donnelley ProFile NCR tiwaa0anSTART PAGE

4*PMT 1C

NERFBU-MWE-XN0111.4.11

hsbc-1.0

For more information

You 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 1-800-830-8888 or by contacting yourauthorized dealer.

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 website atwww.hsbc.ca/investment-resources.

How to reach us

Vancouver

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

Website: www.hsbc.caEmail: [email protected]

Toll-free: 1-800-830-8888Fax: 604-669-2756

TorontoSuite 300 – 70 York StreetToronto, ON M5J 1S9

Calgary10th Floor, 407 – 8th Avenue SWCalgary, AB T2P 1E5

Edmonton9th Floor, 10250 – 101 Street NWEdmonton, AB T5J 3P4

MontrealSuite 300 – 2001 McGill College AvenueMontreal, QC H3A 1G1

Victoria869 Douglas StreetVictoria, BC V8W 2B9

A NOTE ON FORWARD-LOOKING STATEMENTS

This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-lookingstatements include 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 thatmay be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-lookingstatements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertaintiesand assumptions about 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 beforemaking any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the factthat the Fund has no specific intention of updating any forward-looking statements, whether as a result of new information, future events or otherwise.

Issued byHSBC Global Asset Management (Canada) Limited

(201

4-03

)RR

D

ˆ200G2csw9$$$vp@=!Š200G2csw9$$$vp@=!



RR Donnelley ProFile NCR kumardapSTART PAGE

2*PMT 1C


(This page has been left blank intentionally.)

ˆ200G2csw9&b48tl&9Š200G2csw9&b48tl&9



RR Donnelley ProFile NCR kumad1an 4*PMT 1C


art_01-1.0

HSBC Canadian MoneyMarket Pooled Fund



ˆ200G2cswBCdBc=L&ÉŠ 200G2cswBCdBc=L&



RR Donnelley ProFile NCR misha1anSTART PAGE

9*PMT 1C

LANFBU-MWE-XN1611.4.11

HSBC Canadian Money Market Pooled Fund

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

We are the manager and primary investment advisor of the Fund.

IntroductionThis Annual Management Report of Fund Performance containsfinancial highlights but does not contain the complete annual or semi-annual financial statements of the investment fund. You may obtain acopy of the Fund’s annual or semi-annual financial statements at yourrequest, at no cost, by calling us toll-free at 1-800-830-8888, byvisiting our website at www.hsbc.ca/investment-resources, byvisiting the SEDAR website 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 proxy voting policies and procedures, proxyvoting disclosure record or quarterly statement of investmentportfolio.

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

To achieve its objectives, the Fund invests primarily in treasurybills, commercial paper, bankers’ acceptances, mortgages andmortgage-backed securities, guaranteed investment certificates,cash and other fixed income securities. All of the Fund’s securitieswill have a term-to-maturity of less than 365 days, with an averageterm-to-maturity of no more than 60 days.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. There was no material change to the risklevel of the Fund during the period. For a full explanation of theserisks, refer to the Simplified Prospectus.

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 in their returns.

Results of OperationsAs of December 31, 2013, the Fund’s net assets decreased by25.7% to $139.7 million from $188.1 million at the end of 2012. Ofthis decrease, a $2.2 million gain was attributable to investmentperformance, which was offset by a $50.6 million decrease due tonet redemptions of Fund units.

Investment PerformanceThe HSBC Canadian Money Market Pooled Fund rose 0.98% forthe year ending December 31, 2013, while the benchmark, theDEX 30-Day Treasury Bill Index (50%) and DEX 60-Day TreasuryBill Index (50%), rose 0.97% for the same period.

A defensive position to the corporate debt sector was taken over2013 with a focus on high-quality issues where credit risk andliquidity risk were minimized, thus protecting the Fund’s primaryobjectives of preserving capital and providing liquidity. The returnfrom the defensive corporate position versus alternativegovernment notes was modest for 2013 but generallycommensurate with the reduced level of risk. An allocation tocorporate notes is usually positive for performance due to thehigher yields they can offer over government-backed alternatives;however, these notes come with additional risks that may beunsuitable for the Fund at any level of compensation.

The Fund looks to add value by adjusting the weighted-average-maturity (or duration) of the portfolio holdings relative to itsbenchmark. For the twelve months of 2013, the Fund’s durationwas targeted close to its blended 45-day benchmark, mitigatingany relative interest rate risk.

Recent DevelopmentsThe Bank of Canada (“BoC”) continued to hold the target for theovernight rate at 1.00% through 2013 – its target level sinceSeptember 2010. While Canada’s inflation rate is expected toslowly pick up, its recent slow pace continues to disappoint theBoC and is causing increasing concern amongst its members.After stating that “downside risks to inflation assume increasingimportance,” the BoC removed its long-held bias towards tighterfuture monetary policy at its October 23rd meeting, although itstopped short of suggesting any chance of a rate cut at this time.For now, the BoC appears to be comfortable keeping monetarypolicy on hold.

Economic growth improved to a 2.7% annualized pace in the thirdquarter, marking the strongest quarter of 2013. Looking forward,growth should continue to improve from a 1.7% average annualpace in 2013 to an average annual pace of 2.3% in 2014. With asmall degree of excess capacity in the economy likely to persistthrough most of 2014 and soft underlying price pressures tocontinue, the BoC is under little pressure to tighten monetarypolicy and we do not expect the BoC to raise the target rate untilthe middle of 2015.

Related Party TransactionsWe, on behalf of the Fund, or the Fund Manager, may, from timeto time, enter into transactions or arrangements with or involvingother members of the HSBC Group or other people or companiesrelated or connected to us or the Fund. To proceed with the

1

ˆ200G2cswBHeo#mz=WŠ200G2cswBHeo#mz=W


12-Mar-2014 01:51 ESTCLN PSTRF

RR Donnelley ProFile NCR kumasaap 14*PMT 1C

RRWIN-XENP14211.4.11


transactions, the Fund relies on the positive recommendation ofthe Fund’s Independent Review Committee. A condition of thispositive recommendation is that the transactions are performed inaccordance with our policy on Related Party Transactions. Formore general information on persons related to the Fund and thetypes of potential transactions, see the Fund’s SimplifiedProspectus.

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 the Fund.As manager, we manage the overall business and operations ofthe Fund. As primary investment advisor, we provide investmentadvice and portfolio management services to the Fund. Wereceive a fee for these services.

Trustee ServicesFor the year, the Fund paid HSBC Trust Company (Canada)(an affiliate) $7,000 (December 31, 2012, $1,000) for acting astrustee.

Distribution ServicesThe Fund is distributed through us, HSBC Investment Funds(Canada) Inc. (our wholly owned subsidiary) and HSBC PrivateWealth Services (a wholly owned subsidiary of HSBC BankCanada). We may pay distribution and servicing fees to theserelated party distributors based on the value of the units held inthe investor’s account, and additionally, in some cases, on theamount of the initial purchase.

Financial HighlightsThe following table shows selected key financial information aboutthe Fund and is intended to help you understand the Fund’sfinancial performance for the years shown. This information isderived from the Fund’s audited annual financial statements. Theinformation in the following table is based on prescribedregulations, and as a result, is not expected to add due to theincrease/decrease in net assets from operations being based onaverage units outstanding during the year and all other numbersbeing based on actual units outstanding at the relevant point intime.

HSBC Canadian Money Market Pooled FundYears ended December 31 Inception: October 1997

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009

Net assets per unit, beginning of

period (1,7) $10.00 $10.00 $10.00 $10.00 $10.00

Increase (decrease) from operations:

Total revenue 0.11 0.11 0.11 0.06 0.07Total expenses (0.01) (0.01) (0.01) (0.01) (0.01)Realized gains (losses) – – – – –Unrealized gains (losses) – – – – –

Total increase (decrease) from

operations (1) $0.10 $0.10 $0.10 $0.05 $0.06

Distributions to unitholders:

From income (excluding dividends) (0.10) (0.10) (0.10) (0.05) (0.06)From dividends – – – – –From net realized gains on investments – – – – –

Total annual distributions (1,2) $(0.10) $(0.10) $(0.10) $(0.05) $(0.06)

Net assets per unit, end of period (1,7) $10.00 $10.00 $10.00 $10.00 $10.00

Ratios and Supplemental DataDec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009

NAV (in 000s) (3,7) $139,662 $188,088 $194,510 $115,521 $144,538Units outstanding (in 000s) (3) 13,966 18,809 19,451 11,552 14,454NAV per unit (3) $10.00 $10.00 $10.00 $10.00 $10.00Management expense ratio (“MER”) (4) 0.10% 0.09% 0.08% 0.12% 0.13%MER before absorbed or waived fees (4) 0.10% 0.09% 0.09% 0.12% 0.14%Portfolio turnover rate (5) n/a n/a n/a n/a n/aTrading expense ratio (6) n/a n/a n/a n/a n/a

(1) Net assets per unit and distributions per unit are based on the actualnumber of units outstanding at the relevant time. The increase/decrease in net assets from operations per unit is based on theweighted average number of units outstanding over the fiscal period.

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

(3) This information is provided as at year-end.

(4) MER includes the total expenses of each Fund, including the Goods andServices Tax and/or Harmonized Sales Tax thereon, other than brokeragecommissions on securities transactions and any foreign withholdingtaxes on income, as an annualized percentage of average net asset value(“NAV”) of the Fund for the period. In the period a Fund is established,the MER is annualized from the date of inception to the end of the period.We may have waived or absorbed certain fees and expenses otherwisepayable by the Fund. The amount of expenses absorbed or waived is atthe discretion of and can be terminated at any time by us.

(5) The Fund’s portfolio turnover rate indicates how actively the Fund’sportfolio advisor manages its portfolio investments. A portfolio turnoverrate of 100% is equivalent to the Fund buying and selling all of thesecurities in its portfolio once in the course of the period. The higher theFund’s portfolio turnover rate in a period, the greater the trading costspayable by the Fund in the period, and the greater the chance of aninvestor receiving taxable capital gains in the year. There is notnecessarily a relationship between a high turnover rate and theperformance of the Fund. The rate is calculated based on the lesser ofpurchases or sales of securities divided by the average weighted marketvalue of the portfolio securities, excluding short-term securities.

2

ˆ200G2cswB9eSYJ%=SŠ200G2cswB9eSYJ%=S



RR Donnelley ProFile NCR tiwaa0an 9*PMT 1C


g99c13-14.0


(6) The trading expense ratio represents commissions and other portfoliotransaction costs expressed as an annualized percentage of dailyaverage net asset value during the year.

(7) Generally accepted accounting principles require that the calculation ofa Fund’s net asset value for financial reporting purposes (“net assets“)be based upon investments valued using closing bid prices. Aspermitted by securities regulations, the value of investments used todetermine the daily prices of the Fund’s units for purchase andredemption by clients (“NAV“) continues to be based upon the lastsale price or the midpoint between closing bid and asked quotations.

Management FeesFor the year ended December 31, 2013, the Fund did not paymanagement fees. You pay us, HSBC Investment Funds (Canada)Inc. or your approved advisor an investment management fee thatis based on the amount you have invested with us or yourapproved advisor (which may be subject to certain minimumannual fees). It is negotiated between you and us, HSBCInvestment Funds (Canada) Inc. or your approved advisor. Furtherdetails can be found in the Fund’s Simplified Prospectus.

Investment management fees paid to us were used to pay costsfor managing the investment portfolio, providing investmentanalysis and recommendations, making investment decisions,making brokerage arrangements for the purchase and sale of theinvestment portfolio and providing other services. The investmentmanagement fees also funded commission payments and othercompensation to sales representatives and registered dealers andbrokers (collectively “distribution costs”), including HSBCInvestment Funds (Canada) Inc., HSBC Bank Canada and HSBCSecurities (Canada) Inc., for units of the Fund bought and held byunitholders. Finally, we used investment management fees to payfor additional marketing and distribution services to the Fund.

For the year ended December 31, 2013, approximately 43% of thetotal investment management fees paid to us for all HSBC PooledFunds were used to fund distribution costs.

Past PerformanceThe performance information shown assumes that all distributionsmade by the Fund in the periods shown were reinvested inadditional securities of the Fund. The performance informationdoes not take into account management fees, sales, redemption,distribution, optional charges or expenses you may be chargedoutside of the Fund or the effect of any income tax you may haveto pay as a result of your investment in the Fund that would havereduced returns or performance. The Fund’s past performancedoes not necessarily indicate how it will perform in the future.

Year-by-Year ReturnsYears ended December 31The following bar chart shows the Fund’s annual performance foreach of the years shown, and illustrates how the Fund’s

performance changed from year to year. In percentage terms, thebar chart shows how much an investment made on the first day ofeach financial year would have grown or decreased by the last dayof each financial year.

Annual Returns10%

5%

0%

2.3%

Dec. 312004

2.7%

Dec. 312005

3.8%

Dec. 312006

4.3%

Dec. 312007

3.2%

Dec. 312008

0.6%

Dec. 312009

0.5%

Dec. 312010

1.0%

Dec. 312011

Dec. 312013

1.0% 1.0%

Dec. 312012

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark indices, the DEX 30-Day T-Bill Index (50%) and DEX60-Day T-Bill Index (50%) over the same period. The DEX 30-DayT-Bill Index is a broad measure of the total return for the Canadian30-day treasury bill market, covering marketable Canadian treasurybills with a term-to-maturity of 30 days or less. The DEX 60-DayT-Bill Index is a broad measure of the total return for the Canadian60-day treasury bill market, covering marketable Canadian treasurybills with a term-to-maturity of 60 days or less.

Inception: October 1997

1 Year 3 Year 5 Year 10 Year

HSBC Canadian Money Market Pooled Fund 0.98% 0.98% 0.82% 2.03%

50% DEX 30-Day T-Bill Index,50% DEX 60-Day T-Bill Index 0.97% 0.94% 0.74% 1.94%

Summary of Investment PortfolioAs at December 31, 2013

Asset MixPercentage of

NAV

Corporate 72.20%Government 27.68%Cash & Equivalents 0.12%Total 100.00%

3

ˆ200G2cswBJua#4i&!Š 200G2cswBJua#4i&!



RR Donnelley ProFile NCR raiam0ap 9*PMT 1C



Top 25 HoldingsPercentage of

NAV

Province of Alberta, 0.99% 03/03/14 4.29%Hydro-Quebec, 1.83% 02/20/14 3.80%Bank of Montreal, 0.85% 01/02/14 3.58%Bank of Nova Scotia, 0.95% 01/02/14 3.58%National Bank Financial, 0.90% 01/02/14 3.58%Government of Canada, 1.09% 03/13/14 3.55%Province of Manitoba, 0.97% 01/29/14 3.22%Bank of Tokyo-Mitsubishi, 1.21% 01/03/14 3.21%Government of Canada, 1.10% 06/05/14 3.19%CPPIB Capital Inc., 1.06% 03/10/14 2.86%Province of Quebec, 1.05% 01/08/14 2.85%Government of Canada, 1.02% 02/27/14 2.77%OMERS Finance Trust, 1.13% 01/22/14 2.14%OMERS Finance Trust, 1.13% 03/12/14 2.14%OMERS Finance Trust, 1.13% 03/17/14 2.14%Province of British Columbia, 1.05% 09/11/14 2.13%Caterpillar Financial Services Ltd., 1.03% 01/06/14 1.79%Imperial Oil Ltd., 1.12% 01/30/14 1.79%Nestle Capital Canada Ltd., 1.07% 03/19/14 1.79%BNP Paribas Canada, 1.16% 01/14/14 1.78%Deutsche Bank AG, 1.14% 03/07/14 1.78%JPMorgan Chase & Co., 1.22% 04/07/14 1.78%Manulife Bank of Canada, 1.29% 04/28/14 1.78%PACCAR Financial Ltd., 1.12% 01/28/14 1.50%Caisse Centrale Desjardins du Québec, 1.80% 02/11/14 1.43%Total of Top 25 Holdings 64.45%

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

4

ˆ200G2csw9&bDw8i=$Š 200G2csw9&bDw8i=$



RR Donnelley ProFile NCR kumad1anSTART PAGE

3*PMT 1C


hsbc-1.0





How to reach us

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


Toll-free: 1-800-830-8888Fax: 604-669-2756











(201

4-03

)RR

D

ˆ200G2csw9&a&J09&+Š200G2csw9&a&J09&+



RR Donnelley ProFile NCR husss0an 4*PMT 1C


art_01-1.0

HSBC Mortgage Pooled Fund



ˆ200G2cswBCd9BRj=ZŠ200G2cswBCd9BRj=Z




14*PMT 1C



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





Investment Objective and StrategiesThe fundamental investment objective of this Fund is to earn ashigh a level of income as possible while protecting investedcapital.

To achieve its objectives, the Fund invests primarily in units of theHSBC Mortgage Fund, a mutual fund trust also managed by us.The HSBC Mortgage Fund purchases uninsured Canadian-dollar-denominated mortgages from HSBC Bank Canada (”the Bank”) orits subsidiaries. If any mortgage purchased from the Bank or itssubsidiaries is in default for 90 days or more, the Bank willrepurchase those mortgages.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. During the period, there was no materialchange to the risk level of the Fund or to the Fund’s sensitivity tointerest rate changes, changes to the shape of the yield curve,credit risk, equity market risk or currency risk. The magnitude ofthe Fund’s active strategy positions remains consistent with itslong-term risk profile.

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

Results of OperationsAs of December 31, 2013, the Fund’s net assets increased by17.5% to $289.4 million from $246.3 million at the end of 2012. Ofthis increase, a $6.9 million gain was attributable to investmentperformance and $36.2 million was attributable to netcontributions to the Fund.

Investment PerformanceThe HSBC Mortgage Pooled Fund rose 2.71% for the year endingDecember 31, 2013, while the benchmark rose 2.19% over thesame period. The benchmark is a weighted composite consistingof the DEX Residential Mortgage 1-Year Index (50%), the DEXResidential Mortgage 3-Year Index (25%), the DEX ResidentialMortgage 5-Year Index (15%) and the DEX 91-Day T-Bill Index(10%), discounted by an appropriate amount to reflect actualprevailing mortgage rates over the same period.

The sentiment pendulum surrounding expectations for when theUS Federal Reserve Bank would begin to taper their assetpurchase program was the main driver of movements in financialmarkets for most of the second half of 2013. In the end, betterthan expected economic growth and a US budget agreementprovided the US Federal Reserve Bank with the environment itneeded to announce at its December meeting that they will beginto wind down their monthly quantitative easing asset purchases.Generally, riskier assets enjoyed strong returns in the third andfourth quarters, while government bond yields were little changedfollowing their sell-off earlier in the year.

The Bank of Canada’s (“BoC”) decision to remove their tighteningbias pushed out investor expectations surrounding the timing ofthe first rate hike – it is now thought that the BoC will be lessaggressive in 2014 and that the first rate hike will not occur untilmid-2015.

Short-term government bond yields fell over the course of thesecond half of the year, falling on average from 1.48% to 1.40%,after having started 2013 at 1.28%. Broad mortgage rates roseduring the third and fourth quarters, with the yield on the DEXResidential Mortgage Index rising from 3.75% to 3.95%, afterhaving started the year at 3.70%. The yield differential between5-year fixed mortgage rates and the 5-year Government of Canadabond appears to have stabilized after having narrowedsubstantially in the first half of the year. During the second half ofthe year, the spread tightened from 319 basis points (bps) to303 bps, after having started 2013 at 363 bps. Overall, mortgagesperformed in line with short-term government bonds in the secondhalf of the year, but outperformed in 2013.

Recent DevelopmentsOur central scenario is that the global economy will continue tomove forward at a moderate pace aided by reasonable growth in

1

ˆ200G2cswBHeqYFj&GŠ200G2cswBHeqYFj&G






emerging economies and accommodative monetary policy in thedeveloped world. Despite the US Federal Reserve Bank reducingthe size of their quantitative easing, we fully expect them to take agradual, measured approach to unwinding monetary stimulus. Attheir current pace, the US Federal Reserve Bank will continue toadd liquidity to the financial system for most of 2014 and is notexpected to tighten policy until late 2015.

For the Canadian economy, growth in the US is expected toimprove in coming quarters. The headwinds from trade maysubside somewhat over 2014. In this environment we expect theBoC to remain on the sidelines for the next few quarters, but theywill gradually move away from emergency-type interest rates inthe middle of 2015.

At this point, with long-term yields expected to rise modestly overthe next year, the objective will be to maintain the Fund’s interestrate exposure below the benchmark in the near term. In the shortterm, we feel that valuations in the mortgage market areattractive, particularly when compared with money marketsecurities, and will continue to invest excess cash in opportunities.

We believe that mortgage rates continue to represent attractivevalue at current levels despite the recent contraction in yieldspread. The relatively high running yield of the Fund continues tobe a positive for returns, and will help to offset some of thenegative impacts if mortgage rates move higher. Portfolio durationis conservatively positioned at slightly below 2 years.

Related Party TransactionsWe, on behalf of the Fund, or the Fund Manager, may, from timeto time, enter into transactions or arrangements with or involvingother members of the HSBC Group or other people or companiesrelated or connected to us or the Fund. To proceed with thetransactions, the Fund relies on the positive recommendation ofthe Fund’s Independent Review Committee. A condition of thispositive recommendation is that the transactions are performed inaccordance with our policy on Related Party Transactions. Formore general information on persons related to the Fund and thetypes of potential transactions, see the Fund’s SimplifiedProspectus.



Mortgage Repurchase AgreementThe HSBC Mortgage Pooled Fund invests primarily in units of theHSBC Mortgage Fund. The HSBC Mortgage Fund purchases itsmortgages from HSBC Bank Canada (“the Bank”) (of which we area wholly owned subsidiary) and its subsidiary, HSBC MortgageCorporation (Canada) (“Mortgage Corp.”), at an amount that willproduce a yield to the HSBC Mortgage Fund of not more than 1/4 of1% less than the interest rate at which the Bank or Mortgage Corp.is making a similar commitment at the time of purchase. The lesseryield of 1/4 of 1% is in consideration of the agreement by the Bankto repurchase the mortgages under certain circumstances. Theproportion of this fee for the HSBC Mortgage Pooled Fundamounted to $966,669 for the year ended December 31, 2013(December 31, 2012 – $825,979).

To proceed with the transactions, the HSBC Mortgage Fund reliedon the approval of the Fund’s Independent Review Committee byway of Standing Instruction. A condition of this approval was thatthe transactions were performed in accordance with NationalPolicy No. 29 and in accordance with all requirements of variousrelief orders that have been granted to us by the regulators inrelation to these kinds of transactions.

Trustee ServicesFor the year, the Fund paid HSBC Trust Company (Canada) (anaffiliate) $7,000 (December 31, 2012, $1,000) for acting as trustee.

Custodial ServicesAs manager of the Fund, we have appointed the Bank as thecustodian of the Fund. For the period, the Fund paid the Bank lessthan $1,000 (December 31, 2012 – less than $1,000) for providingcustodial services to the Fund.


Fund on Fund InvestingDuring the period, the Fund invested in units of the HSBCMortgage Fund, which is also managed by us. To proceed with thetransactions, the Fund relied on the positive recommendation ofthe Fund’s Independent Review Committee by way of StandingInstruction. A condition of this positive recommendation was thatthe transactions were performed in accordance with our policy onFund on Fund Investing.

2

ˆ200G2cswB9hSuX0&=Š200G2cswB9hSuX0&=



RR Donnelley ProFile NCR rafim0ap 11*PMT 1C



Financial HighlightsThe following table shows selected key financial information aboutthe Fund and is intended to help you understand the Fund’s financialperformance for the years shown. This information is derived fromthe Fund’s audited annual financial statements. The information inthe following table is based on prescribed regulations, and as aresult, is not expected to add due to the increase/decrease in netassets from operations being based on average units outstandingduring the year and all other numbers being based on actual unitsoutstanding at the relevant point in time.

HSBC Mortgage Pooled FundYears ended December 31 Inception: November 2004

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


period (1,7) $10.31 $10.30 $10.30 $10.28 $10.09


Total revenue 0.28 0.28 0.31 0.36 0.43Total expenses (0.01) (0.01) (0.01) (0.01) (0.01)Realized gains (losses) 0.03 0.02 0.04 0.05 0.08Unrealized gains (losses) (0.02) (0.01) (0.02) (0.04) 0.13


operations (1) $0.28 $0.28 $0.32 $0.36 $0.63


From income (excluding dividends) (0.27) (0.27) (0.31) (0.35) (0.41)From dividends – – – – –From net realized gains on investments – – – – –




2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009

NAV (in 000s) (3,7) $289,372 $246,268 $225,561 $178,686 $174,545Units outstanding (in 000s) (3) 28,058 23,889 21,895 17,353 16,972NAV per unit (3) $10.31 $10.31 $10.30 $10.30 $10.28Management expense ratio (“MER”) (4) 0.12% 0.13% 0.16% 0.16% 0.17%MER before absorbed or waived fees (4) 0.12% 0.13% 0.16% 0.16% 0.17%Portfolio turnover rate (5) 18.61% 12.20% 20.36% 21.06% 19.94%Trading expense ratio (6) n/a n/a n/a n/a n/a




(4) MER includes the total expenses of each Fund, including the Goods andServices Tax and/or Harmonized Sales Tax thereon, other than brokeragecommissions on securities transactions and any foreign withholdingtaxes on income, as an annualized percentage of average net asset value(“NAV”) of the Fund for the period. In the period a Fund is established,the MER is annualized from the date of inception to the end of the period.

We may have waived or absorbed certain fees and expenses otherwisepayable by the Fund. The amount of expenses absorbed or waived is atthe discretion of and can be terminated at any time by us.

The Fund may invest in units of other mutual funds and pooled funds.You should note that in addition to the fees and expenses paid by theFund, these other funds have their own operating expenses to pay.The Fund will effectively bear the operating expenses of the otherfunds in proportion to its holdings in the other funds. However, theFund will not invest in units of other funds if the Fund would berequired to pay any management fees in respect of such investments.In addition, the Fund will not make investments in other funds if theFund would be required to pay any sales or redemption fees in respectof such investments that duplicate a fee payable by unitholders of theFund. Further, the Fund will not invest in units of other funds if anysales or redemption fees are payable in respect of such investments.




Management FeesFor the year ended December 31, 2013, the Fund did not paymanagement fees. You pay us, HSBC Investment Funds (Canada)Inc. or your approved advisor an investment management fee that isbased on the amount you have invested with us or your approvedadvisor (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 be found in theFund’s Simplified Prospectus.

Investment management fees paid to us were used to pay costsfor managing the investment portfolio, providing investmentanalysis and recommendations, making investment decisions,making brokerage arrangements for the purchase and sale of theinvestment portfolio and providing other services. The investmentmanagement fees also funded commission payments and othercompensation to sales representatives and registered dealers andbrokers (collectively “distribution costs”), including HSBC

3

ˆ200G2cswBCin3B==cŠ200G2cswBCin3B==c



RR Donnelley ProFile NCR uprey0ap 17*PMT 1C


g92n24-14.0


Investment Funds (Canada) Inc., the Bank and HSBC Securities(Canada) Inc., for units of the Fund bought and held by unitholders.Finally, we used investment management fees to pay foradditional marketing and distribution services to the Fund.



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

Annual Returns10%

5%

0%

4.4%

Dec. 312006

3.5%

Dec. 312007

7.6%

Dec. 312008

6.2%

Dec. 312009

3.6%

Dec. 312010

3.1%

Dec. 312011

2.8% 2.7%

Dec. 312012

Dec. 312013

3.4%

Dec. 312005

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark indices, the DEX Short-Term Bond Index and aweighted composite consisting of the DEX Residential Mortgage1-Year Index (50%), the DEX Residential Mortgage 3-Year Index(25%), the DEX Residential Mortgage 5-Year Index (15%) and theDEX 91-Day T-Bill Index (10%), discounted by an appropriate

amount to reflect actual prevailing mortgage rates, over the sameperiod.

The DEX Short-Term Bond Index is a broad measure of the totalreturn for the Canadian short-term bond market, coveringmarketable Canadian bonds with a term-to-maturity between oneand five years. The DEX Conventional Residential Mortgage Index(1-, 3- and 5-Year) is designed to measure total return on ahypothetical residential mortgage with a current mortgage rate.The DEX 91-Day T-Bill Index is a broad measure of the total returnfor the Canadian 91-day treasury bill market, covering marketableCanadian treasury bills with a term-to-maturity of 91 days or less.

Inception: November 2004

1 Year 3 Year 5 Year

Since

Inception*

HSBC Mortgage Pooled Fund 2.71% 2.86% 3.65% 4.15%

DEX Short-Term Bond Index 1.74% 2.79% 3.29% 3.95%

50% DEX 1-Yr Mortgage Index,25% DEX 3-Yr Mortgage Index,15% DEX 5-Yr Mortgage Index,10% DEX 91-Day T-Bill Index with adiscount factor 2.19% 2.91% 3.71% 4.35%

* Due to the fact that several benchmark indices are only available on amonthly basis, the Since Inception performance data for the Fund andthe benchmark indices are calculated using values from the first month-end date the Fund was in operation.


The Fund invests substantially all of its assets in the HSBCMortgage Fund – Institutional Series.


NAV

Residential Mortgages 79.62%Bonds 6.60%Cash & Equivalents 13.78%Total 100.00%

4

ˆ200G2cswB4u%Y#&=5Š200G2cswB4u%Y#&=5


19-Jan-2014 23:04 ESTCLN PSTRF

RR Donnelley ProFile NCR kumardap 8*PMT 1C




NAV

Residential Mortgages 79.62%Canada Housing Trust No. 1, FRN, 09/15/15 1.68%Financement-Quebec, FRN, 06/02/16 0.64%Ford Credit Canada Ltd., 7.50% 08/18/15 0.47%Royal Bank of Canada, 0.95% 01/02/14 0.44%TMX Group Ltd., 3.25% 10/03/18 0.43%Bank of Nova Scotia, 1.12% 02/25/14 0.42%Bell Canada, 1.16% 01/07/14 0.42%Canadian National Railway Co., 1.12% 01/20/14 0.42%Caterpillar Financial Services Ltd., 1.05% 01/06/14 0.42%CDP Financial Inc., 1.09% 02/14/14 0.42%CPPIB Capital Inc., 1.05% 01/28/14 0.42%Government of Canada, 0.90% 01/30/14 0.42%Government of Canada, 0.94% 02/27/14 0.42%Honda Canada Finance Inc., 1.13% 03/05/14 0.42%JPMorgan Chase & Co., 1.21% 06/04/14 0.42%Nestle Capital Canada Ltd., 1.05% 01/24/14 0.42%Shoppers Drug Mart Corp., 1.15% 01/03/14 0.42%TransCanada PipeLines Ltd., 1.17% 03/19/14 0.42%Vancouver City Savings Credit Union, 1.34% 01/09/14 0.42%Banque Nationale de Paris, 1.17% 02/21/14 0.34%Deutsche Bank AG, 1.14% 03/07/14 0.33%Bank of Tokyo-Mitsubishi, 1.30% 06/10/14 0.25%Toyota Credit Canada, 1.14% 02/10/14 0.25%OMERS Finance Trust, 1.13% 02/12/14 0.24%Total of Top 25 Holdings 90.57%


5

ˆ200G2csw9&bC@0X&wŠ 200G2csw9&bC@0X&w



RR Donnelley ProFile NCR husss0anSTART PAGE

3*PMT 1C


hsbc-1.0





How to reach us



Toll-free: 1-800-830-8888Fax: 604-669-2756











(201

4-03

)RR

D

ˆ200G2csw9&gCL!p&DŠ 200G2csw9&gCL!p&D



RR Donnelley ProFile NCR kalim0ap 5*PMT 1C


art_01-1.0

HSBC CanadianBond Pooled Fund



ˆ200G2cswBHet879&HŠ200G2cswBHet879&H



RR Donnelley ProFile NCR kumasaapSTART PAGE

16*PMT 1C


HSBC Canadian Bond Pooled Fund

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


IntroductionThis Annual Management Report of Fund Performance containsfinancial highlights but does not contain the complete annual or semi-annual financial statements of the investment fund. You may obtain acopy of the Fund’s annual or semi-annual financial statements at yourrequest, at no cost, by calling us toll-free at 1-800-830-8888, by visitingour website at www.hsbc.ca/investment-resources, by visiting theSEDAR website at www.sedar.com or by writing to us at:



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 in investment-grade bonds, debentures, commercial and residential mortgage-backed securities, asset-backed securities and other fixed incomesecurities either issued or guaranteed by the Government ofCanada, a province or municipality of Canada, Canadiancorporations or Canadian master trusts.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. During the period, there was no materialchange to the risk level of the Fund or to the Fund’s sensitivity tointerest rate changes, changes to the shape of the yield curve, creditrisk, market risk or currency risk. The magnitude of the Fund’s activestrategy positions remains consistent with its long-term risk profile.

This Fund is suitable for investors who want to earn interestincome and grow their capital. Investors in this Fund should have amedium-term investment time horizon and a low to mediumtolerance for risk in their returns.

Results of OperationsAs of December 31, 2013, the Fund’s net assets increased by45.4% to $507.2 million from $348.8 million at the end of 2012. Of

this increase, a $0.5 million loss was attributable to investmentperformance, which was offset by a $158.9 million increase due tonet contributions to the Fund.

Investment PerformanceThe HSBC Canadian Bond Pooled Fund declined 0.09% for theyear ending December 31, 2013, while the benchmark, the DEXUniverse Bond Index, declined 1.19% over the same period.

The sentiment pendulum surrounding expectations for when theUS Federal Reserve would begin to taper their asset purchaseprogram was the main driver of movements in financial marketsfor most of the second half of 2013. In the end, better thanexpected economic growth and a US budget agreement providedthe US Federal Reserve Bank with the environment it needed toannounce at its December meeting that they will begin to winddown their monthly quantitative easing asset purchases.Generally, riskier assets enjoyed a strong quarter, whilegovernment bond yields were little changed in the third and fourthquarters following their dramatic sell-off in May and June. Sincethe end of the second quarter, the overall yield in the market rosefrom 2.66% to 2.75%, and had started 2013 at 2.30%.

The Bank of Canada’s (“BoC”) decision to remove their tighteningbias pushed out investor expectations surrounding the timing ofthe first rate hike – it is now thought that the BoC will be lessaggressive in 2014 and that the first rate hike will not occur untilmid-2015. The yield curve continued to steepen during the secondhalf of the year, with the difference between 2-year and 30-yearGovernment of Canada yields rising from 168 basis points (bps) to209 bps, as the longer end of the market underperformed.

Recent DevelopmentsOverall, the Canadian bond market returned 0.50% in the secondhalf of the year and was down 1.19% for all of 2013. Therecontinued to be some divergence in the performance of thedifferent sectors of the market during the third and fourthquarters. Corporate bonds (+1.27%) were the best-performingsector, while provincial bonds (+0.17%) also outperformedGovernment of Canada bonds (0.14%) in the second half. Over thepast 12 months federal government, provincial government andcorporate bonds have returned �1.52%, �2.70% and +0.84%,respectively, with provincial debt underperforming due to theirlonger average term to maturity.

The Fund’s overweight position in corporate bonds benefitedperformance. The Fund’s yield curve positioning and short durationposition were also positive. The Fund’s small exposure toemerging market debt had a negative impact on relativeperformance.

On June 14, 2013, the assets of the HSBC MultiAlpha CanadianSmall Cap Equity Pooled Fund were merged into the Fund.

1

ˆ200G2cswBHexem2&xŠ200G2cswBHexem2&x






Related Party TransactionsWe, on behalf of the Fund, or the Fund Manager, may, from time totime, enter into transactions or arrangements with or involving othermembers of the HSBC Group or other people or companies relatedor connected to us or the Fund. To proceed with the transactions,the Fund relies on the positive recommendation of the Fund’sIndependent Review Committee. A condition of this positiverecommendation is that the transactions are performed inaccordance with our policy on Related Party Transactions. For moregeneral information on persons related to the Fund and the types ofpotential transactions, see the Fund’s Simplified Prospectus.


Manager and Investment AdvisorWe are the manager and primary investment advisor of the Fund.As manager, we manage the overall business and operations of theFund. As primary investment advisor, we provide investment adviceand portfolio management services to the Fund. We receive a feefor these services.

Trustee ServicesFor the year, the Fund paid HSBC Trust Company (Canada) (anaffiliate) $13,000 (December 31, 2012, $1,000) for acting astrustee.


Fund on Fund InvestingDuring the period, the Fund invested in units of the HSBC MortgageFund, which is also managed by us. To proceed with thetransactions, the Fund relied on the positive recommendation of theFund’s Independent Review Committee by way of StandingInstruction. A condition of this positive recommendation was thatthe transactions were performed in accordance with our policy onFund on Fund Investing.

Purchases of Securities Underwritten by a Related PartyDuring the period, the Fund invested in certain securities thatwere underwritten, in whole or in part, by entities that are arelated party to us. To proceed with the transactions, the Fundrelied on the approval of the Fund’s Independent ReviewCommittee by way of Standing Instruction. A condition of approval

was that the transactions were performed in accordance with ourpolicy on Purchases of Securities Underwritten by a Related Party.

Inter-Fund MergerOn June 14, 2013, the HSBC MultiAlpha Canadian Bond PooledFund, a pooled fund also managed by us, merged in to the Fundby transferring its portfolio holdings to the Fund. The unitholdersof the HSBC MultiAlpha Canadian Small Cap Equity Pooled Fundreceived units of the Fund in exchange which had an aggregatenet asset value equal to the value of the assets acquired by theFund. Unitholders of this Fund were not required to approve themerger as the Fund’s Independent Review Committee approvedthe transaction and we determined that the merger was notmaterial to this Fund.


HSBC Canadian Bond Pooled FundYears ended December 31 Inception: October 1997

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


period (1,7) $12.05 $11.94 $11.44 $11.18 $11.00


Total revenue 0.41 0.46 0.54 0.54 0.62Total expenses (0.01) (0.01) (0.01) (0.01) (0.01)Realized gains (losses) 0.03 0.20 0.09 0.12 0.10Unrealized gains (losses) (0.44) (0.05) 0.35 0.17 0.07


operations (1) $(0.01) $0.60 $0.97 $0.82 $0.78


From income (excluding dividends) (0.43) (0.44) (0.46) (0.53) (0.60)From dividends – – (0.02) – –From net realized gains on investments – (0.06) – (0.05) –



2

ˆ200G2cswBGBLKma=#Š200G2cswBGBLKma=#



RR Donnelley ProFile NCR chopi0an 11*PMT 1C


g66s10-13.0



2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009





(4) MER includes the total expenses of each Fund, including the Goodsand Services Tax and/or Harmonized Sales Tax thereon, other thanbrokerage commissions on securities transactions and any foreignwithholding taxes on income, as an annualized percentage of averagenet asset value (“NAV”) of the Fund for the period. In the period aFund is established, the MER is annualized from the date of inceptionto the end of the period. We may have waived or absorbed certainfees and expenses otherwise payable by the Fund. The amount ofexpenses absorbed or waived is at the discretion of and can beterminated at any time by us.

(5) 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 period. Thehigher the Fund’s portfolio turnover rate in a period, the greater thetrading costs payable by the Fund in the period, and the greater thechance of an investor receiving taxable capital gains in the year. Thereis not necessarily a relationship between a high turnover rate and theperformance of the Fund. The rate is calculated based on the lesser ofpurchases or sales of securities divided by the average weightedmarket value of the portfolio securities, excluding short-termsecurities.


(7) Generally accepted accounting principles require that the calculation ofa Fund’s net asset value for financial reporting purposes (“net assets”)be based upon investments valued using closing bid prices. Aspermitted by securities regulations, the value of investments used todetermine the daily prices of the Fund’s units for purchase andredemption by clients (“NAV”) continues to be based upon the lastsale price or the midpoint between closing bid and asked quotations.

Management FeesFor the year ended December 31, 2013, the Fund did not paymanagement fees. You pay us, HSBC Investment Funds (Canada)Inc. or your approved advisor an investment management fee thatis based on the amount you have invested with us or yourapproved advisor (which may be subject to certain minimum

annual fees). It is negotiated between you and us, HSBCInvestment Funds (Canada) Inc. or your approved advisor. Furtherdetails can be found in the Fund’s Simplified Prospectus.





Annual Returns10%

5%

-5%

0%

6.7%

Dec. 312004

6.3%

Dec. 312005

4.3%

Dec. 312006

3.5%

Dec. 312007

4.4%

Dec. 312008

7.3%

Dec. 312009

7.7%

Dec. 312010

8.7%

Dec. 312011

Dec. 312013

5.1%

-0.1%

Dec. 312012

3

ˆ200G2cswBGBLMge&QŠ200G2cswBGBLMge&Q






Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark index, the DEX Universe Bond Index, over the sameperiod. This index is a broad measure of the total return for theCanadian bond market, covering marketable Canadian bonds witha term-to-maturity of more than one year.



HSBC Canadian Bond Pooled Fund �0.09% 4.53% 5.71% 5.36%

DEX Universe Bond Index �1.19% 3.93% 4.78% 5.16%



NAV

Corporate 55.08%Government 29.42%Mutual Funds 11.39%Cash & Equivalents 4.11%Total 100.00%


NAV

HSBC Mortgage Fund – Institutional Series 8.36%Province of Ontario, 5.60% 06/02/35 6.83%Canada Housing Trust No. 1, 1.75% 06/15/18 6.32%CDP Financial Inc., 4.60% 07/15/20 3.28%Province of Ontario, 4.00% 06/02/21 2.98%Government of Canada, 5.75% 06/01/33 2.87%Government of Canada, 0.92% 02/27/14 2.72%Province of Ontario Generic Coupon Strip, 12/02/20 2.56%Commonwealth Bank of Australia, 5.15% 04/09/20 2.01%Peel Regional Municipality, 5.10% 06/29/40 1.99%Province of British Columbia, 4.70% 06/18/37 1.84%Viterra Inc., 6.41% 02/16/21 1.80%TMX Group Ltd., 3.25% 10/03/18 1.72%TELUS Corp., 5.05% 07/23/20 1.70%Province of British Columbia, 5.70% 06/18/29 1.66%BAA Funding Ltd., 4.00% 07/03/19 1.59%Province of New Brunswick, 3.55% 06/03/43 1.58%Merrill Lynch & Co., Inc., 5.29% 05/30/22 1.56%Government of Canada, 4.00% 06/01/41 1.52%SPDR Barclays High Yield Bond ETF 1.52%AT&T Inc., 3.83% 11/25/20 1.51%BHP Billiton Finance Ltd., 3.23% 05/15/23 1.51%HSBC Emerging Markets Debt Fund – Institutional Series 1.51%Sydney Airport Finance Co. Pty Ltd., 4.60% 07/27/18 1.51%Morgan Stanley, 4.90% 02/23/17 1.46%Total of Top 25 Holdings 63.91%


4

ˆ200G2csw9&b5Ziw=BŠ200G2csw9&b5Ziw=B



RR Donnelley ProFile NCR nawam0anSTART PAGE

3*PMT 1C

SWRFBU-MWE-XN1011.3.14

hsbc-1.0





How to reach us



Toll-free: 1-800-830-8888Fax: 604-669-2756











(201

4-03

)RR

D

ˆ200G2csw9&gDM0M&WŠ200G2csw9&gDM0M&W



RR Donnelley ProFile NCR kalim0ap 5*PMT 1C


art_01-1.0

HSBC U.S. HighYield Bond Pooled Fund



ˆ200G2cswBCd5YZa&5Š200G2cswBCd5YZa&5




9*PMT 1C


HSBC U.S. High Yield Bond Pooled Fund

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

We are the manager and primary investment advisor of the Fund.We have hired JP Morgan Asset Management (Canada) Inc. as thesub-advisor to provide portfolio management and investmentadvisory services to the Fund. For an explanation of therelationship between us and the sub-advisor, see the sectionSelection of Sub-Advisors for the MultiAlpha Funds and otherFunds 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 a diversifiedportfolio of non-investment-grade-rated fixed income securitiesand other similar securities from around the world, typicallydenominated in US dollars or other foreign currency. A portion ofthe Fund may be in the form of cash or cash equivalents.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. This Fund is suitable for investors whowant to earn interest income and achieve modest long-termcapital growth. Investors in this Fund should have a medium- tolong-term investment time horizon and a medium tolerance for riskin their returns.

Results of OperationsAs of December 31, 2013, the Fund’s net assets increased by27.4% to $171.9 million from $134.9 million at the end of 2012. Ofthis increase, an $11.6 million gain was attributable to investmentperformance and $25.4 million was attributable to netcontributions to the Fund.

Investment PerformanceThe HSBC U.S. High Yield Bond Pooled Fund rose 8.13% for theyear ending December 31, 2013, while the benchmark, theBarclays Capital U.S. High Yield 2% Capped Index (US$), rose7.44% for the same period.

The Fund outperformed the benchmark during the period, drivenprimarily by positive security selection in the capital goods,consumer cyclical, consumer non-cyclical, industrial other,technology, transportation and utilities sectors. On an industrylevel, overweights in the finance and industrial other sectors aswell as an underweight in the utilities sector added to returnsduring the period.

This was partially offset by negative security selection in the basicmaterials, communication, energy and finance sectors. On anindustry level, underweights in the consumer non-cyclical andtechnology sectors hurt returns.

Recent DevelopmentsThroughout December a combination of improving growth and areinforced zero interest rate policy message offset the risingprospect for a tapering of the quantitative easing by the USFederal Reserve Bank. With the decision to taper its assetpurchase program and another meaningful rise in US Treasuryyields month-over-month, leveraged loans and high yield bondsagain managed to outperform its fixed income peers.

For the quarter, high yield bonds returned +3.57% as measured bythe benchmark. Returns within the benchmark were generallyordered by credit quality with BB, B, and CCC componentsreturning +3.16%, +3.57%, and +4.27%, respectively. Leveragedloans as measured by the Credit Suisse Leveraged Loan Indexreturned +1.82% for the fourth quarter.

Moving into 2014, we believe that the US Federal Reserve Bank’spolicy may prove to be a source of volatility for credit markets.While the fundamental landscape generally remains constructive,we have noticed slight signs of credit deterioration on the marginin response to increased demand.

High yield prices have continued to climb, pushing spreads belowtheir historical average. However, solid fundamentals should proveto curb the default rate (Moody’s outlook for a 2.3% default rateover the next twelve months). Yields are currently at the low endof historical norms, but spreads adequately compensate investors

1

ˆ200G2cswBHeyqgX=pŠ200G2cswBHeyqgX=p






given current default expectations. In this type of marketenvironment it is critical to evaluate and distinguish credit risk asthe market could potentially move toward complacency during theinitial stage of credit deterioration. We intend to keep an eyetowards high-quality issuers with strong and improvingfundamentals that are positioned to perform well in a US economywith below trend GDP growth.




Trustee ServicesFor the year, the Fund paid HSBC Trust Company (Canada)(an affiliate) $4,000 (December 31, 2012 – less than $1,000) foracting as trustee.


Purchases of Securities Underwritten by a Related PartyDuring the period, the Fund invested in certain securities thatwere underwritten, in whole or in part, by entities that are arelated party to us. To proceed with the transactions, the Fundrelied on the approval of the Fund’s Independent ReviewCommittee by way of Standing Instruction. A condition of approval

was that the transactions were performed in accordance with ourpolicy on Purchases of Securities Underwritten by a Related Party.


HSBC U.S. High Yield Bond Pooled FundYears ended December 31 Inception: March 2007

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


period (1,7) $8.49 $8.06 $8.24 $8.36 $6.99


Total revenue 0.57 0.59 0.67 0.75 0.80Total expenses (0.01) (0.01) (0.01) (0.01) (0.01)Realized gains (losses) (0.43) 0.39 (0.11) 0.10 0.10Unrealized gains (losses) 0.53 0.20 (0.08) (0.09) 1.10


operations (1) $0.66 $1.17 $0.47 $0.75 $1.99


From income (excluding dividends) (0.55) (0.60) (0.06) (0.72) (0.73)From dividends – – (0.59) – –From net realized gains on investments – (0.17) – (0.16) –




2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009





(4) MER includes the total expenses of each Fund, including the Goodsand Services Tax and/or Harmonized Sales Tax thereon, other thanbrokerage commissions on securities transactions and any foreign

2

ˆ200G2cswBCisZlm&=Š200G2cswBCisZlm&=





g18c58-15.0


withholding taxes on income, as an annualized percentage of averagenet asset value (“NAV”) of the Fund for the period. In the period aFund is established, the MER is annualized from the date of inceptionto the end of the period. We may have waived or absorbed certainfees and expenses otherwise payable by the Fund. The amount ofexpenses absorbed or waived is at the discretion of and can beterminated at any time by us.









Annual Returns40%

30%

20%

10%

0%

-10% -4.1%

30.7%

9.2%6.0% 8.1%

15.2%

Dec. 312008

Dec. 312009

Dec. 312010

Dec. 312011

Dec. 31 Dec. 312012 2013

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark index, the Barclays Capital U.S. High Yield 2% CappedIndex (C$), over the same period. This index is a broad measure ofbelow-investment-grade debt issued by corporations domiciled inthe US or Canada, with a term-to-maturity of more than one year,and a total par amount outstanding for each issuer capped at

3

ˆ200G2cswBGBMVCC=OŠ200G2cswBGBMVCC=O






US$5 billion. This index is tracked in US dollars and was convertedto Canadian dollars.

Inception: March 2007


Since

Inception*

HSBC U.S. High Yield Bond Pooled Fund 8.13% 9.71% 13.51% 6.94%

Barclays Capital U.S. High Yield 2%Capped Index (US$) 7.44% 9.30% 18.96% 7.41%




NAV

Corporate 95.10%US Equities 0.77%International Equities 0.25%Cash & Equivalents 3.88%Total 100.00%


NAV

Cemex Finance LLC, 9.38% 10/12/22 0.77%Ally Financial Inc., 7.50% 09/15/20 0.68%ILFC E-Capital Trust I, 5.90% 12/21/65 0.67%International Lease Finance Corp., 8.25% 12/15/20 0.66%Ally Financial Inc., 8.00% 11/01/31 0.65%Bank of America Corp., 8.00% 10/30/49 0.62%Claire’s Stores Inc., 9.00% 03/15/19 0.59%Level 3 Communications Inc., 11.88% 02/01/19 0.55%Royal Bank of Scotland Group PLC, 6.10% 06/10/23 0.55%WPX Energy Inc., 6.00% 01/15/22 0.55%Access Midstream Partners LP, 6.13% 07/15/22 0.53%Denali Borrower LLC, 5.63% 10/15/20 0.50%Embarq Corp., 8.00% 06/01/36 0.50%American International Group Inc., 8.18% 05/15/58 0.48%Clear Channel Communications Inc., 9.00% 03/01/21 0.48%Sprint Nextel Corp., 7.00% 08/15/20 0.48%ArcelorMittal, 6.25% 02/25/22 0.46%Caesars Entertainment Operating Co., Inc., 11.25% 06/01/17 0.46%Hilcorp Energy I LP, 7.63% 04/15/21 0.46%Energy Future Intermediate Holding Co., LLC, 10.00% 12/01/20 0.45%MetroPCS Wireless Inc., 6.63% 11/15/20 0.45%United Rentals (North America) Inc., 8.38% 09/15/20 0.45%DISH DBS Corp., 6.75% 06/01/21 0.44%Univision Communications Inc., 6.75% 09/15/22 0.44%Chrysler Group LLC, 8.25% 06/15/21 0.42%Total of Top 25 Holdings 13.29%


4

ˆ200G2csw9&bF@Ce&eŠ 200G2csw9&bF@Ce&e



RR Donnelley ProFile NCR kumap4anSTART PAGE

3*PMT 1C


hsbc-1.0





How to reach us



Toll-free: 1-800-830-8888Fax: 604-669-2756











(201

4-03

)RR

D

ˆ200G2csw9&a$%Rc&ÅŠ200G2csw9&a$%Rc&¯



RR Donnelley ProFile NCR vardp0ap 4*PMT 1C


art_01-1.0

HSBC Global InflationLinked Bond Pooled Fund



ˆ200G2cswBBqxxmM=OŠ200G2cswBBqxxmM=O




11*PMT 1C


HSBC Global Inflation Linked Bond Pooled Fund

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

We are the manager and primary investment advisor of the Fund.We have hired HSBC Global Asset Management (France) as thesub-advisor to provide portfolio management and investmentadvisory services to the Fund. For an explanation of therelationship between us and the sub-advisor, see thesection Selection of Sub-Advisors for the MultiAlpha Funds andother Funds in the Fund’s Simplified Prospectus.




Investment Objective and StrategiesThe fundamental investment objective of this Fund is to generateincome.

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 investing in the Fund remain as discussed in theSimplified Prospectus. This Fund is suitable for investors seeking aflow of interest income that is linked to inflation. Investors in thisFund should have a medium-term investment time horizon and alow to medium tolerance for risk in their returns.

Results of OperationsAs of December 31, 2013, the Fund’s net assets decreased by15.8% to $86.5 million from $102.7 million at the end of 2012. Ofthis decrease, a $4.5 million loss was attributable to investment

performance and $11.7 million was attributable to net withdrawalsfrom the Fund.

Investment PerformanceThe HSBC Global Inflation Linked Bond Pooled Fund declined3.91% for the year ending December 31, 2013, while thebenchmark, the Barclays Capital World Government Inflation-Linked Bond Index (hedged in Canadian dollars), declined 4.12%for the same period.

The Fund outperformed the benchmark by +0.21 basis points(bps) for the year. The underweight in duration had a strongcontribution (+17 bps). Country allocation was also positive(+21 bps) as the Fund was underweight on the US and Canada.The positioning and security selection driver were also positive.

Inflation-linked bonds had a good start in the first four months of2013, in a context of disappointing macroeconomic data (except inthe US) and supportive economic policy. Bank of EnglandGovernor Mervyn King signalled that monetary policy wouldremain on hold, stating that other policies would more effectivelypromote economic recovery. The quarterly Bank of Englandinflation report confirmed a change in its reaction mechanismextending the period for above-target inflation of 2% from two tothree years, and changed its communication policy to convey thismore clearly. In Japan, the Bank of Japan raised its 1% inflationgoal to a formal 2% target. The asset purchase program was alsochanged and made open ended.

In the second and third quarters, speculation about the US FederalReserve Bank’s tapering program weighed on the markets,although offset somewhat by signs of a recovery in Europe.Markets stabilized in July, but real yields were again underpressure in August.

Recent DevelopmentsOver the fourth quarter, inflation-linked bonds, especially US TIPS,sold off in the wake of positive news from the US economy andbudget negotiations, which led to anticipations that the US FederalReserve Bank could start to taper bond purchases before the endof the year. Furthermore, weak inflation data and continuedsoftness in oil prices (West Texas Intermediate was down by 3%)have fuelled a degree of concern about global disinflation.Following October’s 16-day US Government shutdown, a fiscaldeal was reached that funds the government until January 15,2014 and lifts the debt ceiling until February 7, 2014. In December,US budget negotiators finally reached a provisional two-year dealthat will avoid another government shutdown in January 2014. Inthis context, the US Federal Reserve Bank announced it wouldtrim its asset purchases by USD 10 billion to USD 75 billion.

In developed markets, our signals appreciated in the wake of therise in real yields. In 2014, we expect growth to continue torecover, imported inflation to stabilize, domestic CPI drivers to pick

1

ˆ200G2cswBHe!yTw=PŠ200G2cswBHe!yTw=P






up, central banks to stay dovish, and spot inflation to havebottomed. Commodities remain a downside risk, and spot inflationis likely to remain relatively low, but with 10-year break-evensbelow central bank ‘targets’, we see the risks for break-evensskewed to the upside in 2014. In this environment real ratesshould continue to rise, which is why the portfolio should maintaina short duration bias compared to the benchmark in the followingmonths. In terms of country allocation, our current long-termforecasts are in the UK, Japan and Sweden, whereas our short-term forecasts stay in the US, Canada and the eurozone. Withinthe eurozone, we remain overweight Italy against France andGermany.



Manager and Investment AdvisorWe are the manager and primary investment advisor of the Fund.As manager, we manage the overall business and operations of theFund. As primary investment advisor, we provide investment adviceand portfolio management services to the Fund. We receive a feefor these services. We have entered into a sub-advisory agreementwith HSBC Global Asset Management (France), a relatedsub-advisor, under which HSBC Global Asset Management (France)provides investment advice and portfolio management services tothe Fund. We pay HSBC Global Asset Management (France) a feebased on assets under management, calculated daily and paidquarterly. For more information on our ability to hire sub-advisors,see the section Organization and Management of the HSBC PooledFunds in the Fund’s Simplified Prospectus.


Distribution ServicesThe Fund is distributed through us, HSBC Investment Funds(Canada) Inc. (our wholly owned subsidiary) and HSBC PrivateWealth Services (a wholly owned subsidiary of HSBC BankCanada). We may pay distribution and servicing fees to these

related party distributors based on the value of the units held inthe investor’s account, and additionally, in some cases, on theamount of the initial purchase.


HSBC Global Inflation Linked Bond Pooled FundYears ended December 31 Inception: February 2010

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Net assets per unit, beginning of period (1,7) $10.88 $10.90 $10.17 $10.00


Total revenue 0.14 0.18 0.20 0.20Total expenses (0.02) (0.02) (0.02) (0.02)Realized gains (losses) (0.42) 0.68 0.11 0.20Unrealized gains (losses) (0.15) (0.05) 0.87 0.20

Total increase (decrease) from operations (1) $(0.45) $0.79 $1.16 $0.58


From income (excluding dividends) (0.37) (0.13) (0.23) (0.22)From dividends – (0.15) (0.20) –From net realized gains on investments – (0.52) – (0.15)

Total annual distributions (1,2) $(0.37) $(0.80) $(0.43) $(0.37)

Net assets per unit, end of period (1,7) $10.09 $10.88 $10.90 $10.17


2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

NAV (in 000s) (3,7) $86,551 $102,816 $87,197 $68,400Units outstanding (in 000s) (3) 8,571 9,442 7,991 6,717NAV per unit (3) $10.10 $10.89 $10.91 $10.18Management expense ratio (“MER”) (4) 0.17% 0.18% 0.20% 0.16%MER before absorbed or waived fees (4) 0.17% 0.18% 0.20% 0.16%Portfolio turnover rate (5) 58.46% 108.41% 105.87% 76.81%Trading expense ratio (6) n/a n/a n/a n/a




(4) MER includes the total expenses of each Fund, including the Goodsand Services Tax and/or Harmonized Sales Tax thereon, other thanbrokerage commissions on securities transactions and any foreignwithholding taxes on income, as an annualized percentage of averagenet asset value (“NAV”) of the Fund for the period. In the period a

2

ˆ200G2cswBGBRr1w&-Š200G2cswBGBRr1w&-





g48q26-13.0


Fund is established, the MER is annualized from the date of inceptionto the end of the period. We may have waived or absorbed certainfees and expenses otherwise payable by the Fund. The amount ofexpenses absorbed or waived is at the discretion of and can beterminated at any time by us.







Past PerformanceThe performance information shown assumes that all distributionsmade by the Fund in the periods shown were reinvested in

additional securities of the Fund. The performance informationdoes not take into account management fees, sales, redemption,distribution, optional charges or expenses you may be chargedoutside of the Fund or the effect of any income tax you may haveto pay as a result of your investment in the Fund that would havereduced returns or performance. The Fund’s past performancedoes not necessarily indicate how it will perform in the future.


Annual Returns15%

0%

-10%

5%

-5%

10%

Dec. 31Dec. 31 Dec. 312011 2012

11.6%

7.3%

-3.9%

2013

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark index, the Barclays Capital World GovernmentInflation-Linked Bond Index (hedged in Canadian dollars), over thesame period. The Barclays Capital World Government Inflation-Linked Bond Index measures the performance of the majorgovernment inflation-linked bond markets. The index is designedto include only those markets in which a global government linkerfund is likely and able to invest.

Inception: February 2010


Since

Inception*

HSBC Global Inflation Linked Bond PooledFund �3.91% 4.78% – 5.16%

Barclays Capital World GovernmentInflation-Linked Bond Index (hedged in C$) �4.12% 4.97% – 5.32%


3

ˆ200G2cswBBq=uv%=^Š200G2cswBBq=uv%=^



RR Donnelley ProFile NCR kumap7an 14*PMT 1C





NAV

Government 94.80%Cash & Equivalents 5.20%Total 100.00%

Geographic MixPercentage of

NAV

United States of America 33.49%United Kingdom 28.60%Germany 11.78%Italy 8.09%France 8.06%Sweden 1.92%Canada 1.47%Australia 0.84%Japan 0.55%Cash & Equivalents 5.20%Total 100.00%


NAV

Bundesrepublik Deutschland Bundesobligation Inflation LinkedBond, 0.75% 04/15/18 9.50%United Kingdom Gilt Index Linked, 2.50% 07/17/24 2.61%Buoni Poliennali Del Tes, 2.60% 09/15/23 2.28%United Kingdom Gilt Inflation Linked, 2.50% 04/16/20 2.23%United Kingdom Gilt, 1.88% 11/22/22 2.08%United States Treasury Inflation Indexed Bond, 0.13% 04/15/17 2.08%United Kingdom Gilt, 1.25% 11/22/55 2.00%United States Treasury Inflation Indexed Bond, 1.13% 01/15/21 1.93%United States Treasury Inflation Indexed Bond, 0.13% 01/15/22 1.71%United States Treasury Inflation Indexed Bond, 6.25% 07/15/21 1.68%United States Treasury Inflation Indexed Bond, 0.13% 07/15/22 1.67%United Kingdom Gilt Index Linked, 2.00% 01/26/35 1.62%Buoni Poliennali Del Tes, 2.10% 09/15/21 1.60%United States Treasury Inflation Indexed Bond, 2.38% 01/15/25 1.58%United Kingdom Gilt, 1.13% 11/22/37 1.57%United Kingdom Gilt, 1.25% 11/22/27 1.53%United States Treasury Inflation Indexed Bond, 0.13% 01/15/23 1.53%United Kingdom Gilt, 0.75% 11/22/47 1.50%United States Treasury Inflation Indexed Bond, 3.88% 04/15/29 1.44%United States Treasury Inflation Indexed Bond, 1.29% 07/15/20 1.41%United States Treasury Inflation Indexed Bond, 5.22% 04/15/28 1.41%French Government Bond OAT, 2.25% 07/25/20 1.40%Buoni Poliennali Del Tes, 2.35% 09/15/19 1.34%Government of United States, 2.13% 02/15/41 1.33%United Kingdom Gilt Inflation Linked, 0.13% 03/22/29 1.29%Total of Top 25 Holdings 50.32%


4

ˆ200G2csw9&bFHmR&ÂŠ 200G2csw9&bFHmR&´



RR Donnelley ProFile NCR vardp0apSTART PAGE

3*PMT 1C


hsbc-1.0





How to reach us



Toll-free: 1-800-830-8888Fax: 604-669-2756











(201

4-03

)RR

D

ˆ200G2csw9&b4ZBx&RŠ200G2csw9&b4ZBx&R



RR Donnelley ProFile NCR raiam0ap 4*PMT 1C


art_01-1.0

HSBC Emerging MarketsDebt Pooled Fund



ˆ200G2cswB9h@H2t&-Š 200G2cswB9h@H2t&-



RR Donnelley ProFile NCR rafim0apSTART PAGE

12*PMT 1C


HSBC Emerging Markets Debt Pooled Fund

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





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

To achieve its objectives, the Fund, directly or indirectly, investsprimarily in a diversified portfolio of investment-grade and non-investment-grade debt instruments issued by governments inemerging market countries and corporations or other issuerseither based in or that have a significant business or investmentlink with emerging market countries. Such debt instruments maybe denominated in US dollars or other foreign currencies, includingthe local currency of emerging market countries. The Fund mayalso use derivatives to gain or reduce exposure to fixed incomesecurities or emerging market currencies, or for hedging purposes.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. This Fund is suitable for investors whowant to earn interest income and achieve modest long-termcapital growth. Investors in this Fund should have a long-terminvestment time horizon and a low to medium tolerance for risk intheir returns.

Results of OperationsAs of December 31, 2013, the Fund’s net assets increased by50.9% to $128.1 million from $84.9 million at the end of 2012. Ofthis increase, a $2.6 million loss was attributable to investment

performance, which was offset by a $45.8 million increase due tonet contributions to the Fund.

Investment PerformanceThe HSBC Emerging Markets Debt Pooled Fund declined 2.59%for the year ending December 31, 2013, while the benchmarkdeclined 2.79% for the same period. The benchmark is a weightedcomposite consisting of the JP Morgan Emerging Markets BondIndex – Global (US$) (50%), the JP Morgan Government BondIndex – Emerging Markets Global Diversified Unhedged (C$)(25%), and the JP Morgan Emerging Local Markets Index Plus(C$) (25%).

From January through April, returns for emerging markets hadbeen in positive territory. Emerging market assets rallied in Aprilfollowing stimulus announcements by the Bank of Japan, whichsparked a rally in US rates and fixed income assets (includingemerging markets).

On the heels of this risk-on rally, the market was taken by surprisein May when the US Federal Reserve Bank began to hint attapering quantitative easing. US Treasury 10-year bond yieldssurged and continued to climb higher in June on the central bank’shawkish comments and heightened tapering concerns. Asmanagers looked to reduce risk and meet outflows amidst lowbroker/dealer liquidity, a sell-off in emerging markets ensued. TheFund’s defensive position contributed to relative performance inMay’s market sell-off.

We began to add risk to the strategy in May and June, takingadvantage of the attractive valuations and cleaner technicalposition that resulted from the market correction. The elevatedrisk position hurt performance in months where emerging marketssuffered (August and November) and contributed to performancein the months that emerging markets were a strong performer,such as in September.

Positive performance was driven largely by our external debtpositioning, in particular the active allocation to Russia, Brazil andMexico. On the local debt and currency side, the positioning inBrazil local bonds detracted from performance.

Recent DevelopmentsWe continue to favour investment-grade hard-currency sovereignwith strong balance sheets and whose spreads wideneddisproportionately during the May to August 2013 period, drivenby technical factors rather than any deterioration in fundamentals.

We are cautious around a number of high yield countries that facea probability of default over the next three years. Should thesecountries default, although we do not expect systemicimplications for emerging markets as a whole, volatility willincrease, which is why we continue to emphasize that investorsshould focus on the investment-grade-rated component of theasset class.

1

ˆ200G2cswBHe#6&9=ÇŠ200G2cswBHe#6&9=˙






Finally, we are positive on select emerging market currencies thatdepreciated substantially from May to August 2013 and offerattractive valuations with improving terms of trade and currentaccount balances.





Custodial ServicesAs manager of the Fund, we have appointed HSBC Bank Canada(the “Bank”) (of which we are a wholly owned subsidiary) as thecustodian of the Fund. For the period, the Fund paid the Bank lessthan $1,000 for providing custodial services to the Fund.

Distribution ServicesThe Fund is distributed through us, HSBC Investment Funds (Canada)Inc. (our wholly owned subsidiary) and HSBC Private Wealth Services(a wholly owned subsidiary of HSBC Bank Canada). We may paydistribution and servicing fees to these related party distributors basedon the value of the units held in the investor’s account, andadditionally, in some cases, on the amount of the initial purchase.

Fund on Fund InvestingDuring the period, the Fund invested in units of the HSBCEmerging Markets Debt Fund, a mutual fund also managed by us.To proceed with the transactions, the Fund relied on the positiverecommendation of the Fund’s Independent Review Committeeby way of Standing Instruction. A condition of this positiverecommendation was that the transactions were performed inaccordance with our policy on Fund on Fund Investing.


HSBC Emerging Markets Debt Pooled FundYears ended December 31 Inception: February 2011

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Net assets per unit, beginning of period (1,7) $10.59 $9.61 $10.00


Total revenue 0.37 0.54 0.54Total expenses (0.01) (0.01) (0.02)Realized gains (losses) – 0.03 0.03Unrealized gains (losses) (0.63) 0.78 (0.12)

Total increase (decrease) from operations (1) $(0.27) $1.34 $0.43


From income (excluding dividends) (0.34) – –From dividends – (0.38) (0.42)From net realized gains on investments – (0.02) (0.06)From return of capital – – (0.37)

Total annual distributions (1,2) $(0.34) $(0.40) $(0.85)

Net assets per unit, end of period (1,7) $9.97 $10.59 $9.61


2013

Dec. 31

2012

Dec. 31

2011

NAV (in 000s) (3,7) $128,065 $84,904 $60,723Units outstanding (in 000s) (3) 12,849 8,018 6,316NAV per unit (3) $9.97 $10.59 $9.61Management expense ratio (“MER”) (4) 0.23% 0.33% 0.22%MER before absorbed or waived fees (4) 0.23% 0.33% 0.22%Portfolio turnover rate (5) 5.23% 7.86% 149.67%Trading expense ratio (6) n/a n/a n/a




(4) MER includes the total expenses of each Fund, including the Goodsand Services Tax and/or Harmonized Sales Tax thereon, other thanbrokerage commissions on securities transactions and any foreignwithholding taxes on income, as an annualized percentage of averagenet asset value (“NAV”) of the Fund for the period. In the period aFund is established, the MER is annualized from the date of inceptionto the end of the period. We may have waived or absorbed certain

2

ˆ200G2cswB9eYGXG=pŠ200G2cswB9eYGXG=p



RR Donnelley ProFile NCR sahas0ap 10*PMT 1C


g23e07-15.0


fees and expenses otherwise payable by the Fund. The amount ofexpenses absorbed or waived is at the discretion of and can beterminated at any time by us.

(5) 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 period. Thehigher the Fund’s portfolio turnover rate in a period, the greater thetrading costs payable by the Fund in the period, 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, excluding short-term securities.









Annual Returns20%

-5%

10%

5%

15%

0%

2012Dec. 31 Dec. 31

14.5%

-2.6%

2013

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark indices, the JP Morgan Emerging Markets BondIndex – Global (US$) (50%), the JP Morgan Government BondIndex – Emerging Markets Global Diversified Unhedged (C$) (25%)and the JP Morgan Emerging Local Markets Index Plus (C$)(25%), over the same period.

The JP Morgan Emerging Markets Bond Index – Global (US$)tracks total returns for traded external debt instruments in theemerging markets. The JP Morgan Government Bond Index –Emerging Markets Global Diversified Unhedged (C$) is acomprehensive global local emerging markets index, and consistsof liquid, fixed rate, domestic currency government bonds. The JPMorgan Emerging Local Markets Index Plus (C$) tracks totalreturns for local-currency-denominated money-market instrumentsin emerging markets.

3

ˆ200G2cswBGBSlrh&.Š200G2cswBGBSlrh&.






Inception: February 2011


Since

Inception*

HSBC Emerging Markets Debt Pooled Fund �2.59% – – 5.94%

50% JPM EM Bond Index – Global (US$),25% JPM GBI – EM Global Div Unhedged (C$),25% JPM Emerging Local Markets IndexPlus (C$) �2.79% – – 5.30%

* Due to the fact that several benchmark indices are only available on amonthly basis, the Since Inception performance data for the Fund andthe benchmark indices are calculated using values from the firstmonth-end date the Fund was in operation.


The Fund invests substantially all of its assets in the HSBCEmerging Markets Debt Fund – Institutional Series.

Sector MixPercentage of

NAV

Government Bonds 68.27%Energy 6.79%Financials 6.36%Industrials 0.99%Utilities 0.70%Materials 0.59%Telecommunication Services 0.15%Consumer Staples 0.06%Cash & Equivalents 16.09%Total 100.00%


NAV

Mexico 12.03%Brazil 11.40%Russia 10.66%Turkey 7.92%Indonesia 7.33%South Africa 5.05%Colombia 4.48%Poland 4.28%Peru 2.56%Malaysia 2.30%Venezuela 1.97%Thailand 1.70%Croatia 1.65%China 1.56%United States of America 1.03%Panama 1.00%Philippines 0.93%Uruguay 0.93%Chile 0.70%Serbia 0.69%Lithuania 0.55%Kazakhstan 0.47%Romania 0.36%Hungary 0.33%Ireland 0.33%El Salvador 0.26%Dominican Republic 0.20%Iraq 0.20%Lebanon 0.20%Nigeria 0.14%Namibia 0.13%Sri Lanka 0.12%Australia 0.11%United Kingdom 0.08%Vietnam 0.08%Paraguay 0.07%Costa Rica 0.06%Cyprus 0.05%Cash & Equivalents 16.09%Total 100.00%

4

ˆ200G2cswB9eZKDl&SŠ200G2cswB9eZKDl&S







NAV

Russia Government International Bond, 7.50% 03/31/30 3.80%Brazil Notas do Tesouro Nacional Serie F, 10.00% 01/01/17 3.56%Mexico Government International Bond, 6.05% 01/11/40 2.00%Brazil Letras do Tesouro Nacional, Zero Coupon, 07/01/14 1.96%Russian Federal Bond, 7.40% 06/14/17 1.94%Indonesia Government International Bond, 5.88% 03/13/20 1.88%Mexican Fixed Rate Bond, 8.00% 12/07/23 1.75%Turkey Government International Bond, 5.63% 03/30/21 1.44%Republic of Indonesia, 4.88% 05/05/21 1.24%Mexico Government International Bond, 4.00% 10/02/23 1.22%Brazil Government International Bond, 7.13% 01/20/37 1.18%South Africa Government International Bond, 5.50% 03/09/21 1.12%Petroleos Mexicanos, 6.00% 03/05/20 1.11%Venezuela Government International Bond, 7.75% 10/13/19 1.10%Turkey Government Bond, 6.30% 02/14/18 1.09%Colombia Government International Bond, 7.38% 01/27/17 1.03%Croatia Government International Bond, 6.75% 11/05/19 1.01%Mexico Government International Bond, 6.75% 09/27/34 1.01%Brazil Government International Bond, 6.00% 01/17/17 0.99%Turkey Government International Bond, 7.38% 02/05/25 0.99%Thailand Government Bond, 3.65% 12/17/21 0.93%Turkey Government International Bond, 5.13% 03/25/22 0.88%Colombia Government International Bond, 2.63% 03/15/23 0.86%Mexican Bonos, 8.00% 12/17/15 0.85%Sberbank of Russia Via SB Capital SA, 5.50% 07/07/15 0.81%Total of Top 25 Holdings 35.75%


5

ˆ200G2csw9&gKb@w&>Š200G2csw9&gKb@w&>



RR Donnelley ProFile NCR pf_rendSTART PAGE

4*PMT 1C

NCRPRFRS1011.3.14

hsbc-1.0





How to reach us



Toll-free: 1-800-830-8888Fax: 604-669-2756











(201

4-03

)RR

D

ˆ200G2cswB9eZt9c=MŠ200G2cswB9eZt9c=M





art_01-1.0

HSBC Canadian DividendPooled Fund(formerly the HSBC Canadian Dividend IncomePooled Fund)



ˆ200G2cswBGBV#Qd=pŠ200G2cswBGBV#Qd=p



RR Donnelley ProFile NCR chopi0anSTART PAGE

12*PMT 1C


HSBC Canadian Dividend Pooled Fund(formerly the HSBC Canadian Dividend Income Pooled Fund)

Management Discussion of Fund Performance

In this document, you and your refer to the unitholder of the Fund;we, us and our refer to HSBC Global Asset Management (Canada)Limited; and the Fund refers to the HSBC Canadian DividendPooled Fund, formerly the HSBC Canadian Dividend IncomePooled Fund.





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

To achieve its objectives, the Fund invests primarily in a diversifiedportfolio of Canadian common equities, preferred equities, incometrust units and fixed income securities. When investing in fixedincome securities, the Fund will invest primarily in investment-grade securities, and when investing in common shares, the Fundwill invest primarily in high-dividend-paying companies listed onthe Toronto Stock Exchange. A portion of the Fund may be in theform of cash or cash equivalents.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. This Fund is suitable for investors who wantto earn income in the form of dividends and grow their capital.Investors in this Fund should have a medium-term investment timehorizon and a medium tolerance for risk in their returns.


Investment PerformanceThe HSBC Canadian Dividend Pooled Fund rose 19.51% for theyear ending December 31, 2013, while the benchmark, the S&P/TSX Composite Index, rose 12.99% for the same period.

The global developed equity market rose 11.6% in the fourthquarter and 36.2% for all of 2013. The Canadian equity marketgained 7.3% during the last quarter, up 13.0% for the year. TheCanadian bond market gained 0.4% in the fourth quarter, down1.2% for 2013. The best performing equity market sectors in 2013were healthcare, consumer discretionary, information technology,industrials and financials, and the weakest were materials andutilities.

The Fund provided strong absolute returns in 2013 as well asexceeding its benchmark due to being underweight commoditysectors and overweight the consumer discretionary, industrialsand financials sectors. The Fund also had positive stock selectionwithin the consumer discretionary, materials and informationtechnology sectors. The portfolio remains well diversified acrosscyclical and defensive sectors.

The S&P/TSX earnings growth was relatively flat in 2012 and 2013,primarily due to weaker commodity prices (negative for the energyand materials spaces) offsetting growth in most other sectors. In2014, we expect a resumption of positive earnings growth in the5-10% range, which would be supportive for the market.

Recent DevelopmentsCentral banks continued deploying extraordinary measures toencourage economic activity throughout 2013. These actionsappear to have had a somewhat positive effect although absolutelevels of growth continue to be muted by historical standards. Abetter outlook for growth in the US and eurozone (albeit tepid)encouraged capital markets, driving positive returns for globalequity markets in each quarter of 2013. Contributing to thepositive sentiment in the latter part of 2013 was a belief that USmarkets could withstand the normalization to higher interest rates(from both the tapering of asset purchases by the US FederalReserve Bank starting in January, and more sustainable economicgrowth) concurrent with incremental improvement in sovereigneurozone financial conditions.

We expect modest positive global growth in 2014 aided bycontinued accommodative monetary policy, less fiscal policy dragand slightly more positive cyclical forces. There is a risk thatgrowth could be slower due to government fiscal policy actionand/or muted willingness for consumer spending and businessinvestment – potentially exacerbated by higher interest rates.Equity markets continue to have more attractive valuations thandebt markets, but there is a risk that if earnings growth does notaccelerate in 2014, markets may be disappointed given valuation

1

ˆ200G2cswBHe&4$Q==Š200G2cswBHe&4$Q==






levels. US political issues, renewed concerns regarding eurozonestability, and the growth and transition for the Chinese economycould also impact markets.

On June 17, 2013 the Fund’s name was changed to HSBCCanadian Dividend Pooled Fund. There were no other changes tothe Fund or the way the Fund was managed, other than thechange in fund name.



Manager and Investment AdvisorWe are the manager and primary investment advisor of the Fund.As manager, we manage the overall business and operations of theFund. As primary investment advisor, we provide investment adviceand portfolio management services to the Fund. We receive a feefor these services.

Trustee ServicesFor the year, the Fund paid HSBC Trust Company (Canada) (anaffiliate) $3,000 (December 31, 2012 – less than $1,000) for actingas trustee.


Fund on Fund InvestingDuring the period, the Fund invested in units of other HSBC MutualFunds that are also managed by us. To proceed with thetransactions, the Fund relied on the positive recommendation of theFund’s Independent Review Committee by way of StandingInstruction. A condition of this positive recommendation was thatthe transactions were performed in accordance with our policy onFund on Fund Investing.


HSBC Canadian Dividend Pooled FundYears ended December 31 Inception: October 1997

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


period (1,7) $19.03 $17.76 $19.22 $17.60 $13.96

Increase (decrease) from operations:Total revenue 0.61 0.56 0.53 0.56 0.60Total expenses (0.02) (0.02) (0.02) (0.03) (0.04)Realized gains (losses) 0.41 (0.11) 0.14 0.33 (1.24)Unrealized gains (losses) 2.72 1.33 (1.88) 1.39 4.74

Total increase (decrease) fromoperations (1) $3.72 $1.76 $(1.23) $2.25 $4.06


From income (excluding dividends) (0.02) (0.01) (0.02) (0.05) (0.03)From dividends (0.53) (0.51) (0.44) (0.46) (0.53)From net realized gains on investments – – – – –




2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009

NAV (in 000s) (3,7) $162,245 $109,380 $84,742 $57,877 $39,934Units outstanding (in 000s) (3) 7,321 5,743 4,767 3,007 2,264NAV per unit (3) $22.16 $19.05 $17.78 $19.25 $17.64Management expense ratio (“MER”) (4) 0.11% 0.12% 0.13% 0.16% 0.23%MER before absorbed or waived fees (4) 0.11% 0.12% 0.13% 0.16% 0.23%Portfolio turnover rate (5) 18.28% 18.72% 13.14% 23.86% 33.64%Trading expense ratio (6) 0.05% 0.05% 0.07% 0.07% 0.11%




(4) MER includes the total expenses of each Fund, including the Goodsand Services Tax and/or Harmonized Sales Tax thereon, other thanbrokerage commissions on securities transactions and anyforeign withholding taxes on income, as an annualized percentage ofaverage net asset value (“NAV”) of the Fund for the period. In theperiod a Fund is established, the MER is annualized from the date of

2

ˆ200G2cswBHe&6xV&+Š 200G2cswBHe&6xV&+





g33x13-12.0


inception to the end of the period. We may have waived or absorbedcertain fees and expenses otherwise payable by the Fund. Theamount of expenses absorbed or waived is at the discretion of and canbe terminated at any time by us.









Annual Returns40%

20%

0%

-20%

-40%Dec. 31

2004

14.7%

Dec. 312005

18.9%

Dec. 312006

12.0%

Dec. 312007

3.0%

Dec. 312008

-28.8%

Dec. 312009

30.5%

Dec. 312010

12.2%

Dec. 312011

-5.3%

Dec. 312013

10.1%19.5%

Dec. 312012

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark index, the S&P/TSX Composite Index, over the sameperiod. This index tracks changes in the share price of the largestcompanies listed on the Toronto Stock Exchange, representing abroad range of industries.



HSBC Canadian Dividend Pooled Fund 19.51% 7.60% 12.78% 7.40%

S&P/TSX Composite Index 12.99% 3.40% 11.92% 7.97%

3

ˆ200G2cswB9ebmBQ&UŠ200G2cswB9ebmBQ&U








NAV

Canadian Equities 92.13%Mutual Funds 3.75%Cash & Equivalents 4.12%Total 100.00%


NAV

Financials 38.23%Energy 18.16%Industrials 9.09%Consumer Discretionary 8.51%Materials 6.61%Telecommunication Services 5.79%Consumer Staples 3.89%Mutual Funds 3.75%Information Technology 1.60%Utilities 0.24%Cash & Equivalents 4.13%Total 100.00%


NAV

Toronto-Dominion Bank 7.29%Royal Bank of Canada 6.62%Bank of Nova Scotia 6.09%Canadian National Railway Co. 4.30%HSBC Mortgage Fund – Institutional Series 3.61%Suncor Energy Inc. 3.59%Canadian Imperial Bank of Commerce 3.57%Canadian Natural Resources Ltd. 3.30%Enbridge Inc. 3.20%TELUS Corp. 2.97%Magna International Inc. 2.87%BCE Inc. 2.82%Bank of Montreal 2.77%Manulife Financial Corp. 2.66%TransCanada Corp. 2.43%Dollarama Inc. 2.14%Finning International Inc. 2.14%Alimentation Couche-Tard Inc., Class B 1.96%Cenovus Energy Inc. 1.74%Government of Canada, 0.92% 02/27/14 1.71%Intact Financial Corp. 1.64%CGI Group Inc. 1.60%Potash Corp. of Saskatchewan Inc. 1.57%Bombardier Inc. 1.51%Canadian Tire Corp. Ltd. 1.40%Total of Top 25 Holdings 75.50%


4

ˆ200G2csw9&bq8uL&uŠ200G2csw9&bq8uL&u



RR Donnelley ProFile NCR husss0anSTART PAGE

3*PMT 1C


hsbc-1.0





How to reach us



Toll-free: 1-800-830-8888Fax: 604-669-2756











(201

4-03

)RR

D

ˆ200G2csw9&bRx5u=.Š 200G2csw9&bRx5u=.



RR Donnelley ProFile NCR nawam0an 4*PMT 1C


art_01-1.0

HSBC CanadianEquity Pooled Fund



ˆ200G2cswBGBWuWV&NŠ200G2cswBGBWuWV&N




10*PMT 1C


HSBC Canadian Equity Pooled Fund

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





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

To achieve its objectives, the Fund invests primarily in publiclytraded common shares, preferred shares, rights, special warrantsand convertible securities. A portion of the Fund may be in theform of cash or cash equivalents. When investing in commonshares, the Fund will invest primarily in large cap companies listedon the Toronto Stock Exchange.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. This Fund is suitable for investors whowant to achieve long-term capital growth and have a long-terminvestment time horizon. Investors in this Fund should have amedium tolerance for risk in their returns.


Investment PerformanceThe HSBC Canadian Equity Pooled Fund rose 17.53% for the yearending December 31, 2013, while the benchmark, the S&P/TSXComposite Index, rose 12.99% for the same period.

The global developed equity market rose 11.6% in the fourthquarter and 36.2% for all of 2013. Emerging market equities(in Canadian dollars) climbed 5.2% in the fourth quarter, up 4.3%for 2013. The Canadian equity market gained 7.3% during the lastquarter, up 13.0% for the year. The Canadian bond market gained0.4% in the fourth quarter, down 1.2% for 2013.

The Fund provided strong absolute returns in 2013 as well asexceeding its benchmark due to being underweight thecommodity sectors and overweight the consumer discretionary,industrials and information technology sectors. The Fund also hadpositive stock selection within the consumer discretionary,materials, information technology and financials sectors. Theportfolio remains well diversified across cyclical and defensivesectors.


Recent DevelopmentsCentral banks continued deploying extraordinary measures toencourage economic activity throughout 2013. These actionsappear to have had a somewhat positive effect although absolutelevels of growth continue to be muted by historical standards. Abetter outlook for growth in the US and eurozone (albeit verytepid) encouraged capital markets, driving positive returns forglobal equity markets in each quarter of 2013. Contributing to thepositive sentiment in the latter part of the year was a belief thatUS markets could withstand the normalization to higher interestrates (from both the reduction in the pace of asset purchases bythe US Federal Reserve Bank starting in January and moresustainable economic growth) concurrent with incrementalimprovement in sovereign eurozone financial conditions.

We expect modest positive global growth in 2014 aided bycontinued accommodative monetary policy, less fiscal policy dragand slightly more positive cyclical forces. There is a risk thatgrowth could be slower due to government fiscal policy actionand/or muted willingness for consumer spending and businessinvestment (potentially exacerbated by higher interest rates).Equity markets continue to have more attractive valuations thandebt markets, but there is a risk that if earnings growth does notaccelerate in 2014, markets may be disappointed given valuationlevels. US political issues, renewed concerns regarding eurozonestability, and the growth and transition for the Chinese economycould also impact markets.

1

ˆ200G2cswBHf04k=&jŠ200G2cswBHf04k=&j









Trustee ServicesFor the year, the Fund paid HSBC Trust Company (Canada)(an affiliate) $7,000 (December 31, 2012, $1,000) for acting astrustee.



HSBC Canadian Equity Pooled FundYears ended December 31 Inception: October 1997

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


period (1,7) $31.65 $29.67 $33.69 $30.21 $24.05


Total revenue 0.92 0.81 0.76 0.72 0.75Total expenses (0.03) (0.03) (0.03) (0.03) (0.03)Realized gains (losses) 0.77 (0.40) 0.71 0.97 (1.14)Unrealized gains (losses) 4.02 2.35 (4.87) 2.56 7.27


operations (1) $5.68 $2.73 $(3.43) $4.22 $6.85


From income (excluding dividends) – – (0.02) – –From dividends (0.79) (0.78) (0.74) (0.63) (0.66)From net realized gains on investments – – – – –




2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


(1) Net assets per unit and distributions per unit are based on the actualnumber of units outstanding at the relevant time. The increase/decreasein net assets from operations per unit is based on the weighted averagenumber of units outstanding over the fiscal period.

(2) Distributions are automatically reinvested in additional units of the Fund,unless the unitholder withdraws from the automatic reinvestment plan byproviding written notice to us.



(5) The Fund’s portfolio turnover rate indicates how actively the Fund’sportfolio advisor manages its portfolio investments. A portfolio turnoverrate of 100% is equivalent to the Fund buying and selling all of thesecurities in its portfolio once in the course of the period. The higher theFund’s portfolio turnover rate in a period, the greater the trading costspayable by the Fund in the period, and the greater the chance of aninvestor receiving taxable capital gains in the year. There is notnecessarily a relationship between a high turnover rate and theperformance of the Fund. The rate is calculated based on the lesser of

2

ˆ200G2cswB9eS78$=_Š 200G2cswB9eS78$=_



RR Donnelley ProFile NCR dubek0an 11*PMT 1C


g24a55-11.0


purchases or sales of securities divided by the average weighted marketvalue of the portfolio securities, excluding short-term securities.








Annual Returns40%

30%

0%

-30%

-40%

-20%

-10%

20%

10%

Dec. 312004

11.1%

Dec. 312005

22.2%

Dec. 312006

17.0% 17.5%

Dec. 312007

7.5%

Dec. 312008

-28.9%

Dec. 312009

28.5%

Dec. 312010

13.5%

Dec. 312011

-9.7%

Dec. 312013

9.3%

Dec. 312012

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark index, the S&P/TSX Composite Index, over the sameperiod. This index tracks changes in the share price of the largestcompanies listed on the Toronto Stock Exchange, representing abroad range of industries.



HSBC Canadian Equity Pooled Fund 17.53% 5.07% 11.09% 7.46%

S&P/TSX Composite Index 12.99% 3.40% 11.92% 7.97%



NAV

Financials 32.77%Energy 19.47%Materials 10.56%Industrials 9.27%Consumer Discretionary 8.64%Telecommunication Services 5.10%Information Technology 5.01%Consumer Staples 4.09%Cash & Equivalents 5.09%Total 100.00%

3

ˆ200G2cswB9eS8kh=[Š200G2cswB9eS8kh=[







NAV

Toronto-Dominion Bank 7.46%Royal Bank of Canada 6.71%Bank of Nova Scotia 6.19%Suncor Energy Inc. 4.41%Canadian National Railway Co. 4.28%Government of Canada, 0.93% 02/27/14 3.65%Canadian Natural Resources Ltd. 3.57%Canadian Imperial Bank of Commerce 3.34%Enbridge Inc. 3.04%TELUS Corp. 3.01%Magna International Inc. 2.98%CGI Group Inc. 2.93%Potash Corp. of Saskatchewan Inc. 2.92%Manulife Financial Corp. 2.53%TransCanada Corp. 2.31%Finning International Inc. 2.25%Dollarama Inc. 2.24%Bank of Montreal 2.18%BCE Inc. 2.09%Alimentation Couche-Tard Inc., Class B 2.08%Open Text Corp. 2.07%Cenovus Energy Inc. 2.00%Cameco Corp. 1.60%Intact Financial Corp. 1.60%Bombardier Inc. 1.55%Total of Top 25 Holdings 78.99%


4

ˆ200G2csw9&bqCxg&YŠ200G2csw9&bqCxg&Y



RR Donnelley ProFile NCR nawam0anSTART PAGE

3*PMT 1C


hsbc-1.0





How to reach us



Toll-free: 1-800-830-8888Fax: 604-669-2756



Edmonton

9th Floor, 10250 – 101 Street NWEdmonton, AB T5J 3P4








(201

4-03

)RR

D

ˆ200G2csw9&bTnof&8Š200G2csw9&bTnof&8





art_01-1.0

HSBC Canadian SmallCap Equity Pooled Fund



ˆ200G2cswBHgv63s=&Š200G2cswBHgv63s=&



RR Donnelley ProFile NCR kumardapSTART PAGE

12*PMT 1C


HSBC Canadian Small Cap Equity Pooled Fund

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

We are the manager and primary investment advisor of the Fund.We have hired Mawer Investment Management Limited andTriasima Portfolio Management Inc. as sub-advisors to provideportfolio management and investment advisory services to theFund. For an explanation of the relationship between us and thesub-advisor, see the section Selection of Sub-Advisors for theMultiAlpha Funds and other Funds in the Fund’s SimplifiedProspectus.





To achieve its objectives, the Fund invests primarily in publiclytraded common shares, preferred shares, rights, special warrantsand convertible securities. A portion of the Fund’s holdings may bein the form of cash or cash equivalents. When investing incommon shares, the Fund will invest primarily in a broad range ofsmaller Canadian companies.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. This Fund is suitable for investors seekinglong-term above-average growth who can tolerate significantvolatility. Although measures are taken to mitigate and managerisk, this Fund should be considered a higher risk due to its focuson a higher-risk asset class.

This Fund is suitable for investors seeking a higher level of long-term capital growth on their investment. Investors in this Fundshould have a long-term investment time horizon and a medium tohigh tolerance for risk in their returns.

Results of OperationsAs of December 31, 2013, the Fund’s net assets increased by58.0% to $48.2 million from $30.5 million at the end of 2012. Ofthis increase, a $23.4 million gain was attributable to investmentperformance, which was offset by a $5.7 million decrease due tonet redemptions of Fund units.

Investment PerformanceThe HSBC Canadian Small Cap Equity Pooled Fund rose 49.37%for the year ending December 31, 2013, while the benchmark, theBMO Blended Small Cap Weighted Index, rose 7.76% for thesame period.

In 2013, security selection was responsible for the majority of theFund’s outperformance with significant value being added in thematerials, energy, financials and healthcare sectors.

Sector allocation contributed to the Fund’s strong outperformancein 2013. Most of the value came from the portfolio’s underweightto the worst-performing sector, materials, which declined 30.6%.Overweights to the industrials, information technology andfinancials sectors helped relative performance.

Recent DevelopmentsOn June 14, 2013, the assets of the HSBC MultiAlpha CanadianSmall Cap Equity Pooled Fund were merged into the Fund.Furthermore, a second sub-advisor, Triasima PortfolioManagement Inc., was added to manage the Fund alongsideMawer Investment Management in July 2013.

Strong performance in the fourth quarter of 2013 helped top off anexcellent year for the Fund. A lot of things went right for theportfolio in 2013, including both top-down events and bottom-upselection. From a top-down perspective, 2013 was a year in whichinvestors became concerned that the era of strong monetarystimulus would end. Primarily, it led to a plunge in the price ofgold, which caused the benchmark’s group of gold stocks toplummet 47.3% on a weighted basis. The Fund is underweight inthis group. From a bottom-up perspective, the Fund benefitedfrom good security selection with four securities that rose over100% in 2013.

Related Party TransactionsWe, on behalf of the Fund, or the Fund Manager, may, from time totime, enter into transactions or arrangements with or involving othermembers of the HSBC Group or other people or companies relatedor connected to us or the Fund. To proceed with the transactions,

1

ˆ200G2cswBHgvFm4=qŠ200G2cswBHgvFm4=q






the Fund relies on the positive recommendation of the Fund’sIndependent Review Committee. A condition of this positiverecommendation is that the transactions are performed inaccordance with our policy on Related Party Transactions. For moregeneral information on persons related to the Fund and the types ofpotential transactions, see the Fund’s Simplified Prospectus.



Trustee ServicesFor the year, the Fund paid HSBC Trust Company (Canada) (anaffiliate) less than $1,000 (December 31, 2012 – less than $1,000)for acting as trustee.


Inter-Fund MergerOn June 14, 2013, the HSBC MultiAlpha Canadian Small CapEquity Pooled Fund, a pooled fund also managed by us, merged into the Fund by transferring its portfolio holdings to the Fund. Theunitholders of the HSBC MultiAlpha Canadian Small Cap EquityPooled Fund received units of the Fund in exchange which had anaggregate net asset value equal to the value of the assetsacquired by the Fund. Unitholders of this Fund were not requiredto approve the merger as the Fund’s Independent ReviewCommittee approved the transaction and we determined that themerger was not material to this Fund.


HSBC Canadian Small Cap Equity Pooled FundYears ended December 31 Inception: October 1997

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


period (1,7) $30.27 $26.08 $26.60 $21.32 $14.32


Total revenue 0.79 0.73 0.73 0.75 0.78Total expenses (0.07) (0.07) (0.08) (0.09) (0.09)Realized gains (losses) 10.95 0.79 2.91 1.06 0.60Unrealized gains (losses) 4.86 3.21 (3.39) 4.79 6.48


operations (1) $16.53 $4.66 $0.17 $6.51 $7.77


From income (excluding dividends) – – (0.02) (0.27) (0.49)From dividends (0.91) (0.52) (0.69) (0.27) (0.25)From net realized gains oninvestments – – – – –


Net assets per unit, end of

period (1,7) $44.35 $30.27 $26.08 $26.60 $21.32


2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009

NAV (in 000s) (3,7) $48,270 $30,643 $23,837 $26,445 $16,185Units outstanding (in 000s) (3) 1,086 1,006 908 994 752NAV per unit (3) $44.45 $30.45 $26.25 $26.62 $21.52Management expense ratio(“MER”) (4) 0.18% 0.26% 0.30% 0.37% 0.50%MER before absorbed or waivedfees (4) 0.18% 0.26% 0.30% 0.37% 0.50%Portfolio turnover rate (5) 39.80% 26.80% 18.79% 20.52% 26.99%Trading expense ratio (6) 0.14% 0.06% 0.07% 0.11% 0.22%





(5) The Fund’s portfolio turnover rate indicates how actively the Fund’sportfolio advisor manages its portfolio investments. A portfolio turnoverrate of 100% is equivalent to the Fund buying and selling all of thesecurities in its portfolio once in the course of the period. The higher theFund’s portfolio turnover rate in a period, the greater the trading costspayable by the Fund in the period, and the greater the chance of an

2

ˆ200G2cswB9eYFlT=;Š200G2cswB9eYFlT=;





g04k69-14.0


investor receiving taxable capital gains in the year. There is notnecessarily a relationship between a high turnover rate and theperformance of the Fund. The rate is calculated based on the lesser ofpurchases or sales of securities divided by the average weighted marketvalue of the portfolio securities, excluding short-term securities.








Annual Returns80%

60%

0%

-40%

-60%

-20%

20%

40%

Dec. 312004

20.1%

Dec. 312005

30.8%

Dec. 312006

8.7%

Dec. 312007

0.7%

Dec. 312008

-37.2%

Dec. 312009

53.6%

Dec. 312010

26.3%

Dec. 312012

18.0%

49.4%

Dec. 312011

1.3%

Dec. 312013

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark index, the BMO Blended Small Cap Weighted Index,over the same period. This index includes common shares of allCanadian companies trading on the Toronto and Montreal stockexchanges with a total capitalization at the beginning of eachmonth that is less than 0.1% of the total capitalization of the S&P/TSX Composite Index.



HSBC Canadian Small Cap Equity Pooled Fund 49.37% 21.33% 28.20% 14.10%

BMO Blended Small Cap Weighted Index 7.76% �1.86% 18.11% 7.15%



NAV

Financials 23.47%Industrials 20.00%Energy 17.76%Materials 12.82%Information Technology 12.39%Consumer Staples 5.67%Consumer Discretionary 2.98%Healthcare 1.06%Utilities 0.01%Cash & Equivalents 3.84%Total 100.00%

3

ˆ200G2cswB4x#ed6=ÈŠ 200G2cswB4x#ed6=¨



RR Donnelley ProFile NCR kumarfap 10*PMT 1C




NAV

Constellation Software Inc. 5.09%Canadian Energy Services & Technology Corp. 5.00%Home Capital Group Inc. 4.75%Stantec Inc. 4.52%Stella-Jones Inc. 4.40%Canadian Western Bank 3.55%Equitable Group Inc. 3.46%The Descartes Systems Group Inc. 3.45%Winpak Ltd. 3.21%High Liner Foods Inc. 3.13%AltaGas Ltd. 2.87%Newalta Corp. 2.46%Richelieu Hardware Ltd. 2.29%New Flyer Industries Inc. 2.26%MTY Food Group Inc. 2.21%Intertape Polymer Group Inc. 2.16%Altus Group Ltd. 2.03%ShawCor Ltd. 2.00%FirstService Corp. 1.92%Enghouse Systems Ltd. 1.79%Government of Canada, 0.94% 02/27/14 1.78%Paramount Resources Ltd. 1.66%Alaris Royalty Corp. 1.62%Contrans Group Inc., Class A 1.45%Element Financial Corp., Unit 1.35%Total of Top 25 Holdings 70.41%


4

ˆ200G2csw9&c33gb&GŠ200G2csw9&c33gb&G




4*PMT 1C


hsbc-1.0





How to reach us



Toll-free: 1-800-830-8888Fax: 604-669-2756











(201

4-03

)RR

D

ˆ200G2csw9&bVY1@&xŠ 200G2csw9&bVY1@&x



RR Donnelley ProFile NCR vardp0ap 4*PMT 1C


art_01-1.0

HSBC U.S. Equity Pooled Fund



ˆ200G2cswBBqbS1i=/Š200G2cswBBqbS1i=/




9*PMT 1C



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

We are the manager and primary investment advisor of the Fund.We have hired Los Angeles Capital Management and EquityResearch, Inc. as the sub-advisor to provide portfolio managementand investment advisory services to the Fund. For an explanationof the relationship between us and the sub-advisor, see thesection Selection of Sub-Advisors for the MultiAlpha Funds andother Funds in the Fund’s Simplified Prospectus.





To achieve its objectives, the Fund invests primarily in well-established US companies diversified across industry sectors. TheFund also invests in companies based outside of the US if theirsecurities are listed on a US exchange (including depositaryreceipts or other equity-linked securities) and they are owned orcontrolled by US interests, or where a significant portion of theearnings, production facilities, turnover, assets or investments ofsuch companies are based in or derived from the US. A portion ofthe Fund may be in the form of cash or cash equivalents.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. This Fund is suitable for investors whoseek long-term capital growth, have a long-term investment timehorizon and have a medium tolerance for risk in their returns.


Investment PerformanceThe HSBC U.S. Equity Pooled Fund rose 47.20% for the yearending December 31, 2013, while the benchmark, the Russell1000 Index (C$), rose 42.30% for the same period.

In another strong year for equity markets, the portfolio’s riskyposture in terms of fundamental factors generally paid off. Theportfolio’s overweights to highly leveraged companies and volatilestocks were among the most significant contributors toperformance for the year along with underweights to price-to-bookratio and yield. Overweight to one-year price momentum was amajor contributor as well for the Fund. Tilts towards companieswith strong earnings yield as well as towards the appraisal factoradded value across the board. Interestingly, investors did notreward all risky characteristics over the period, displaying anaversion towards companies with greater pension risk andfinancial distress in the third and fourth quarters. The portfolio’sexposure to these factors negatively impacted performance.

Timing on the three-year momentum factor detracted from returnfor the year as an overweight in the first quarter and anunderweight in the third quarter notably held performance back.Similarly, market cap detracted from return overall for the year as atilt towards smaller stocks added modest value in the second andthird quarters, but detracted more significantly from performancein the fourth quarter when larger companies rallied.

With the overall equity market rally, the portfolio was wellpositioned in terms of industry tilts, which added to thecontribution from fundamental bets. A significant overweight tothe media industry sector was among the largest contributors.Other positive contributors were tilts towards the capital goodsand insurance sectors. Exposure to the pharmaceuticals andbiotech sectors, which tend to be less sensitive tomacroeconomic events, also added value. The portfolio’sunderweights to the utilities, software and services as well asenergy sectors detracted from return. Underweights in the retailand consumer durables sectors, which performed well in 2013,hurt performance.

Recent DevelopmentsIn terms of shifts in fundamental positioning, the portfoliogenerally moved into a more risky posture throughout 2013. Itshifted out of quality factors such as profit margin and one yearmomentum and yield and overwhelmingly into riskier factors such

1

ˆ200G2cswBHf5HT==<Š 200G2cswBHf5HT==<






as volatility, torpedo, leverage, distress and pension risk. Inaddition, after starting 2013 with an overweight in mega capsecurities, the portfolio shifted away from larger cap securitiesthroughout 2013 and into smaller cap securities. The portfolio alsodisplayed modest shifts into the appraisal factor as well asearnings yield.

The largest sector shifts were out of the financials sector and intogrowth-oriented sectors such as the healthcare and technologysectors. Additionally, it shifted into economically sensitive sectorssuch as energy, capital goods and transportation. At year-end, thelargest positive sector overweights were towards the cyclicals andhealthcare sectors, and the largest underweights were in thefinancials, utilities and retail sectors.






Financial HighlightsThe following table shows selected key financial information aboutthe Fund and is intended to help you understand the Fund’s

financial performance for the years shown. This information isderived from the Fund’s audited annual financial statements. Theinformation in the following table is based on prescribedregulations, and as a result, is not expected to add due to theincrease/decrease in net assets from operations being based onaverage units outstanding during the year and all other numbersbeing based on actual units outstanding at the relevant point intime.

HSBC U.S. Equity Pooled FundYears ended December 31 Inception: October 1997

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


period (1,7) $12.30 $11.49 $11.59 $10.62 $9.69


Total revenue 0.24 0.27 0.15 0.13 0.14Total expenses (0.01) (0.01) (0.01) (0.01) (0.01)Realized gains (losses) 2.05 0.54 0.69 0.01 (2.57)Unrealized gains (losses) 3.57 0.32 (0.68) 1.02 3.59


operations (1) $5.85 $1.12 $0.15 $1.15 $1.15


From income (excluding dividends) – – – (0.10) (0.14)From dividends (0.24) (0.31) (0.17) – –From net realized gains oninvestments – – – – –



period (1,7) $17.85 $12.30 $11.49 $11.59 $10.62


2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009

NAV (in 000s) (3,7) $277,390 $150,451 $139,356 $121,188 $97,168Units outstanding (in 000s) (3) 15,539 12,236 12,128 10,453 9,143NAV per unit (3) $17.85 $12.30 $11.49 $11.59 $10.63Management expense ratio(“MER”) (4) 0.09% 0.11% 0.11% 0.13% 0.14%MER before absorbed or waivedfees (4) 0.09% 0.11% 0.11% 0.13% 0.14%Portfolio turnover rate (5) 71.31% 73.29% 175.77% 87.09% 227.03%Trading expense ratio (6) 0.08% 0.07% 0.15% 0.13% 0.08%




(4) MER includes the total expenses of each Fund, including the Goodsand Services Tax and/or Harmonized Sales Tax thereon, other thanbrokerage commissions on securities transactions and any foreignwithholding taxes on income, as an annualized percentage of averagenet asset value (“NAV”) of the Fund for the period. In the period aFund is established, the MER is annualized from the date of inception

2

ˆ200G2cswB9hdkPD=IŠ200G2cswB9hdkPD=I





g10q32-13.0


to the end of the period. We may have waived or absorbed certainfees and expenses otherwise payable by the Fund. The amount ofexpenses absorbed or waived is at the discretion of and can beterminated at any time by us.









Annual Returns60%

40%

0%

-20%

-40%

-10%

10%

-30%

50%

30%20%

0.1%

Dec. 312004

3.2%

Dec. 312005

13.0%

Dec. 312006

-9.8%

Dec. 312007

-28.6%Dec. 31

2008

10.9%

Dec. 312009

10.0%

Dec. 312010

0.6%

Dec. 312011

9.7%

47.2%

Dec. 312012

Dec. 312013

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark index, the Russell 1000 Index (C$), over the sameperiod. This index measures the performance of large cap stocksof the US equity universe, representing a broad range ofindustries. This index is tracked in US dollars and was converted toCanadian dollars.



HSBC U.S. Equity Pooled Fund 47.20% 17.55% 14.67% 4.07%

Russell 1000 Index (C$) 42.30% 18.93% 15.29% 5.70%

3

ˆ200G2cswB4v0plB=SŠ200G2cswB4v0plB=S








NAV

Consumer Discretionary 17.09%Industrials 15.62%Information Technology 14.94%Healthcare 14.56%Financials 11.93%Energy 9.50%Consumer Staples 7.22%Telecommunication Services 3.58%Materials 3.39%Utilities 1.91%Cash & Equivalents 0.26%Total 100.00%


NAV

Exxon Mobil Corp. 1.90%Apple Inc. 1.68%Devon Energy Corp. 1.67%General Dynamics Corp. 1.64%General Motors Co. 1.53%Hewlett-Packard Co. 1.44%Hologic Inc. 1.30%Time Warner Cable Inc. 1.27%DIRECTV 1.23%Staples Inc. 1.23%CenturyLink Inc. 1.11%SPX Corp. 1.11%Delta Air Lines Inc. 1.05%Johnson & Johnson 1.05%AES Corp. 1.04%Apache Corp. 1.03%FedEx Corp. 0.97%Microsoft Corp. 0.97%Murphy Oil Corp. 0.96%Endo Pharmaceuticals Holdings Inc. 0.92%AT&T Inc. 0.90%Berkshire Hathaway Inc., Class B 0.87%Protective Life Corp. 0.87%Lam Research Corp. 0.84%Procter & Gamble Co. 0.83%Total of Top 25 Holdings 29.41%


4

ˆ200G2csw9&bq4HN&SŠ200G2csw9&bq4HN&S



RR Donnelley ProFile NCR vardp0apSTART PAGE

3*PMT 1C


hsbc-1.0





How to reach us



Toll-free: 1-800-830-8888Fax: 604-669-2756











(201

4-03

)RR

D

ˆ200G2csw9&b!1lG=9Š 200G2csw9&b!1lG=9



RR Donnelley ProFile NCR singk1ap 5*PMT 1C


art_01-1.0

HSBC InternationalEquity Pooled Fund



ˆ200G2cswB9hf5a9&ÆŠ200G2cswB9hf5a9&˘




7*PMT 1C


HSBC International Equity Pooled Fund

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

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




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

To achieve its objectives, the Fund invests primarily in equities andequity-related securities issued by large, established non-NorthAmerican companies. To maintain a diversified portfolio ofholdings, the Fund will invest in companies from a broad range ofindustries. A portion of the Fund may be in the form of cash orcash equivalents.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. This Fund is suitable for investors whowant to achieve long-term capital growth from equity securitiesissued in non-North American markets. Investors should have along-term investment time horizon and a medium tolerance for riskin their returns.


Investment PerformanceThe HSBC International Equity Pooled Fund rose 34.59% for theyear ending December 31, 2013, while the benchmark, the MSCIEAFE Index (in Canadian dollars), rose by 31.81% for the sameperiod.

Equity markets ex-Americas (total return gross) were up 31.57%(in Canadian dollars) for 2013 and it was definitely a vintage yearfor equities. Despite a few jittery weeks at the end of the summerin the midst of the Syrian crisis and early in the fall because of theUS Government partial shutdown, stock markets rallied steadily torecord highs. Indeed, the combination of improvingmacroeconomic conditions and accommodative monetary policiesfuelled investors’ optimism.

Exposure management had no significant impact as the averageexposure of the Fund remained close to 100%. The countryallocation contributed positively to the relative performance,mainly from the eurozone. In Asia, the Fund benefited from theoverweight in Japan and the underweight in Australia, but waspenalized by the overweight in Hong Kong. In Europe ex-euro, theoverall contributions were nearly flat. In the eurozone, theoverweight in Germany and Italy were bright spots. The stockselection strategy also generated value.

Recent DevelopmentsThe Fund’s strategy remains unchanged and relies on three layersaiming at capturing opportunities while diversifying risk: first, adynamic country allocation, second, a stock selection strategybased upon the anticipated risk/return profile of single equitynames and last, a continuous monitoring of the overall equityexposure of the Fund.

Overall, equity markets remain attractive in the context of very lowinterest rates. Analysts expect 13% earnings growth for world ex-Americas’ companies over the next year based on MSCI and IBESconsensuns estimates. The Fund now favours the eurozone to thedetriment of Europe ex-euro and Asia.

Related Party TransactionsWe, on behalf of the Fund, or the Fund Manager, may, from timeto time, enter into transactions or arrangements with or involvingother members of the HSBC Group or other people or companiesrelated or connected to us or the Fund. To proceed with thetransactions, the Fund relies on the positive recommendation ofthe Fund’s Independent Review Committee. A condition of this

1

ˆ200G2cswBHf714y=†Š200G2cswBHf714y=






positive recommendation is that the transactions are performed inaccordance with our policy on Related Party Transactions. Formore general information on persons related to the Fund and thetypes of potential transactions, see the Fund’s SimplifiedProspectus.


Manager and Investment AdvisorWe are the manager and primary investment advisor of the Fund.As manager, we manage the overall business and operations ofthe Fund. As primary investment advisor, we provide investmentadvice and portfolio management services to the Fund. Wereceive a fee for these services. We have entered into a sub-advisory agreement with HSBC Global Asset Management(France), a related sub-advisor, under which HSBC Global AssetManagement (France) provides investment advice and portfoliomanagement services to the Fund. We pay HSBC Global AssetManagement (France) a fee based on assets under management,calculated daily and paid quarterly. For more information on ourability to hire sub-advisors, see the section Organization andManagement of the HSBC Pooled Funds in the Fund’s SimplifiedProspectus.



Investments in Securities of Related PartiesIn accordance with Canadian securities legislation and policies setout by our Independent Review Committee, the Fund may investits assets in the securities of companies related to the Fund’sinvestment advisor or sub-advisor. During the period, the Fundheld, purchased or sold shares in HSBC Holdings PLC (ourultimate parent company), which represented 1.22% of the Fund’sassets as at December 31, 2013.

Financial HighlightsThe following table shows selected key financial information aboutthe Fund and is intended to help you understand the Fund’sfinancial performance for the years shown. This information is

derived from the Fund’s audited annual financial statements. Theinformation in the following table is based on prescribedregulations, and as a result, is not expected to add due to theincrease/decrease in net assets from operations being based onaverage units outstanding during the year and all other numbersbeing based on actual units outstanding at the relevant point intime.

HSBC International Equity Pooled FundYears ended December 31 Inception: October 1997

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


period (1,7) $9.46 $8.27 $9.32 $9.36 $8.81


Total revenue 0.30 0.26 0.27 0.26 0.39Total expenses (0.02) (0.02) (0.02) (0.02) (0.02)Realized gains (losses) 1.41 (0.04) (0.10) (0.07) (0.37)Unrealized gains (losses) 1.60 1.27 (1.02) 0.07 0.97


operations (1) $3.29 $1.47 $(0.87) $0.24 $0.97


From income (excluding dividends) (0.11) (0.01) – (0.33) (0.32)From dividends (0.24) (0.26) (0.20) – –From net realized gains oninvestments – – – – –




2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009





(4) MER includes the total expenses of each Fund, including the Goodsand Services Tax and/or Harmonized Sales Tax thereon, other thanbrokerage commissions on securities transactions and any foreignwithholding taxes on income, as an annualized percentage of averagenet asset value (“NAV“) of the Fund for the period. In the period aFund is established, the MER is annualized from the date of inceptionto the end of the period. We may have waived or absorbed certainfees and expenses otherwise payable by the Fund. The amount of

2

ˆ200G2cswB9eg0od=xŠ200G2cswB9eg0od=x





g07k13-14.0


expenses absorbed or waived is at the discretion of and can beterminated at any time by us.










Annual Returns80%

60%

0%

-40%

-60%

-20%

20%

40%

7.0%

Dec. 312004

18.7%

Dec. 312005

20.7%

Dec. 312006

-2.8%

Dec. 312007

-33.9%

Dec. 312008

9.7%

Dec. 312009

3.0%

Dec. 312010

-9.0%

Dec. 312011

17.5%

34.6%

Dec. 312012

Dec. 312013

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark index, the MSCI EAFE Index (C$), over the sameperiod. This index measures the performance of the stocks tradedon various exchanges across Europe, Australasia and the Far East.This index is tracked in US dollars and was converted to Canadiandollars.



HSBC International Equity Pooled Fund 34.59% 12.91% 10.21% 4.84%

MSCI EAFE Index (C$) 31.81% 11.12% 9.82% 5.32%

3

ˆ200G2cswBBqcia&&8Š200G2cswBBqcia&&8








NAV

Financials 21.36%Industrials 14.29%Consumer Discretionary 12.25%Consumer Staples 9.12%Healthcare 9.10%Materials 8.65%Energy 6.02%Information Technology 5.34%Telecommunication Services 4.57%Utilities 3.40%Cash & Equivalents 5.90%Total 100.00%


NAV

Japan 20.31%United Kingdom 19.26%Germany 10.41%France 8.82%Switzerland 8.69%Australia 6.97%Spain 3.57%Netherlands 2.79%Sweden 2.25%Jersey 1.75%Denmark 1.44%Norway 1.44%Hong Kong 1.34%Belgium 1.32%Singapore 1.12%Finland 1.03%China 0.62%Italy 0.50%Austria 0.47%Cash & Equivalents 5.90%Total 100.00%


NAV

Roche Holding AG 2.68%Toyota Motor Corp. 2.27%Diageo PLC 2.01%SAP AG 2.00%Total SA 1.86%Reckitt Benckiser Group PLC 1.79%BT Group PLC 1.77%Rolls-Royce Group PLC 1.75%Westpac Banking Corp. 1.75%BP PLC 1.72%BASF SE 1.54%Cie Financière Richemont SA 1.46%Novo Nordisk A/S 1.44%Rio Tinto PLC 1.43%Mitsubishi UFJ Financial Group Inc. 1.40%Japan Tobacco Inc. 1.37%Allianz AG 1.36%Central Japan Railway Co. 1.32%Bayerische Motoren Werke AG 1.27%BNP Paribas SA 1.22%HSBC Holdings PLC 1.22%Koninklijke Ahold NV 1.19%Vinci SA 1.19%Red Electrica Corp., SA 1.14%Shire PLC 1.14%Total of Top 25 Holdings 39.29%


4

ˆ200G2csw9&bx@13&oŠ 200G2csw9&bx@13&o



RR Donnelley ProFile NCR singk1apSTART PAGE

3*PMT 1C


hsbc-1.0





How to reach us



Toll-free: 1-800-830-8888Fax: 604-669-2756











(201

4-03

)RR

D

ˆ200G2csw9&bqya3=9Š200G2csw9&bqya3=9



RR Donnelley ProFile NCR behek0an 4*PMT 1C


art_01-1.0

HSBC Emerging Markets Pooled Fund



ˆ200G2cswB9ePbDv&gŠ200G2cswB9ePbDv&g




8*PMT 1C



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

We are the manager and primary investment advisor of the Fund.We have hired Delaware Investment Advisers and Trilogy GlobalAdvisors LLP as sub-advisors to provide portfolio management andinvestment advisory services to the Fund. For an explanation ofthe relationship between us and the sub-advisors, see the sectionSelection of Sub-Advisors for the MultiAlpha Funds and otherFunds in the Fund’s Simplified Prospectus.





To achieve its objectives, the Fund will invest primarily insecurities that provide exposure to equity and equity-relatedsecurities issued by medium to large actively traded companiesregistered, or with an official listing, on a stock exchange inemerging market countries around the world. The portfolio mayalso include securities in appropriate smaller companies. The Fundmay invest in equity-related securities including, but not limited to,warrants, American depositary receipts, global depositary receiptsand participation notes.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. This Fund is suitable for investors seekinglong-term capital growth. Investors in this Fund should have along-term investment time horizon and a high tolerance for risk intheir returns.


Investment PerformanceThe HSBC Emerging Markets Pooled Fund rose 8.30% for theyear ending December 31, 2013, while its benchmark, the MSCIEmerging Markets Index (in Canadian dollars), rose 4.48% for thesame period.

Emerging market equities as an asset class underperformeddeveloped market equities significantly in 2013. This is in starkcontrast to last year’s relative outperformance. In May, marketswere concerned with the possibility that the US Federal Reservewould begin to reduce its bond purchasing program. This triggeredthe selling of emerging market equities, bonds and currencies.Concerns about slowing economic growth were also prevalent,particularly in large economies such as China, Brazil and India. InSeptember, the US Federal Reserve Bank backpedalled from itsquantitative easing stance, which triggered a rally in emergingmarket equities.

From a country perspective, holdings in China and Korea, as wellas several US companies with earnings exposure to emergingmarkets, contributed strongly to performance. The Fund’sinvestment in the Chinese internet space, the consumer staplessector and an underweight to the Chinese financials sectorcontributed positively.

Recent DevelopmentsSeveral factors will likely influence the performance of emergingmarkets in 2014, including the Chinese economy and globalmonetary policy. Substantial reforms are necessary in China tosupport long-term sustainable growth. We expect the process tounfold gradually as the government attempts to balance long-termreform with the need to maintain short-term growth. Growth doesappear to be stabilizing, but volatility is expected to continue, asproposed reforms are likely to entail de-leveraging and capacityrationalization.

US interest rates and monetary policy within emerging marketswill also be important to monitor. To combat inflation, Brazil, India,Indonesia and Turkey have begun to tighten policies and risinginterest rates may impact near-term growth prospects, particularin more levered sectors. Overall, the outlook for the emergingmarkets remains quite variable and the Fund will continue toinvest based on bottom-up stock selection with a long-term timehorizon. The Fund seeks to identify sustainable businesses thatwill benefit from growth opportunities.

1

ˆ200G2cswBHf8$3X&ÆŠ 200G2cswBHf8$3X&˘









Trustee ServicesFor the year, the Fund paid HSBC Trust Company (Canada) (anaffiliate) $2,000 (December 31, 2012 – less than $1,000) for actingas trustee.



HSBC Emerging Markets Pooled FundYears ended December 31 Inception: September 2010

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


period (1,7) $9.25 $8.38 $10.62 $10.00 $10.00


Total revenue 0.20 0.20 0.23 0.09 –Total expenses (0.03) (0.03) (0.03) (0.03) –Realized gains (losses) (0.22) (0.25) (0.11) 0.03 –Unrealized gains (losses) 0.79 1.14 (2.25) 2.16 –


operations (1) $0.74 $1.06 $(2.16) $2.25 $–


From income (excluding dividends) – – – (0.01) –From dividends (0.12) (0.17) (0.14) – –From net realized gains oninvestments – – – (0.01) –

Total annual distributions (1,2) $(0.12) $(0.17) $(0.14) $(0.02) $–


period (1,7) $9.88 $9.25 $8.38 $10.62 $10.00


2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009

NAV (in 000s) (3,7) $81,569 $54,143 $55,451 $48,698 $150Units outstanding (in 000s) (3) 8,198 5,824 6,602 4,565 15NAV per unit (3) $9.95 $9.30 $8.40 $10.67 $10.00Management expense ratio(“MER”) (4) 0.32% 0.33% 0.34% 0.27% n/aMER before absorbed or waivedfees (4) 0.32% 0.33% 0.34% 0.27% n/aPortfolio turnover rate (5) 32.45% 28.09% 24.16% 153.23% n/aTrading expense ratio (6) 0.17% 0.13% 0.20% 0.95% n/a





(5) The Fund’s portfolio turnover rate indicates how actively the Fund’sportfolio advisor manages its portfolio investments. A portfolio turnoverrate of 100% is equivalent to the Fund buying and selling all of thesecurities in its portfolio once in the course of the period. The higher theFund’s portfolio turnover rate in a period, the greater the trading costspayable by the Fund in the period, and the greater the chance of an

2

ˆ200G2cswBGJTR4S&CŠ200G2cswBGJTR4S&C





g25x33-12.0


investor receiving taxable capital gains in the year. There is notnecessarily a relationship between a high turnover rate and theperformance of the Fund. The rate is calculated based on the lesser ofpurchases or sales of securities divided by the average weighted marketvalue of the portfolio securities, excluding short-term securities.








Annual Returns20%

0%

-25%

-5%-10%-15%-20%

5%

15%10%

Dec. 312013

Dec. 312012

12.7%8.30%

Dec. 312011

-19.9%

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark index, the MSCI Emerging Markets Index (C$), overthe same period. This index measures the performance of stockstraded in emerging markets such as Brazil, Mexico, Indonesia andMalaysia. This index is tracked in US dollars and was converted toCanadian dollars.

Inception: September 2010


Since

Inception*

HSBC Emerging Markets Pooled Fund 8.30% �0.76% – 0.80%

MSCI Emerging Markets Index (C$) 4.48% 0.48% – 1.57%


3

ˆ200G2cswB9eQ%kL=yŠ200G2cswB9eQ%kL=y








NAV

Financials 17.25%Information Technology 15.80%Industrials 11.19%Consumer Discretionary 10.64%Materials 9.92%Telecommunication Services 9.85%Consumer Staples 9.60%Energy 9.06%Healthcare 3.77%Utilities 1.29%Cash & Equivalents 1.63%Total 100.00%


NAV

South Korea 17.18%Brazil 13.62%China 12.81%India 10.48%Russia 6.87%South Africa 6.83%Taiwan 6.83%Hong Kong 5.33%Mexico 3.84%Thailand 2.01%Indonesia 1.94%Turkey 1.68%Malaysia 1.31%Israel 1.18%Argentina 1.03%United Kingdom 1.03%Portugal 0.79%Panama 0.75%Poland 0.75%Chile 0.74%Colombia 0.68%Cyprus 0.62%Philippines 0.05%Bahrain 0.02%Cash & Equivalents 1.63%Total 100.00%


NAV

Samsung Electronics Co., Ltd. 4.79%Baidu Inc., ADR 2.85%Taiwan Semiconductor Manufacturing Co., Ltd. 2.40%Reliance Industries Ltd., GDR 1.77%Hyundai Motor Co. 1.68%TIM Participacoes SA, ADR 1.68%Itau Unibanco Banco Multiplo SA 1.58%Hon Hai Precision Industry Co., Ltd. 1.48%Sberbank CLS 1.45%Industrial & Commercial Bank of China Ltd. 1.44%SK Telecom Co., Ltd., ADR 1.38%CNOOC Ltd. 1.22%China Construction Bank Corp. 1.21%Teva Pharmaceutical Industries Ltd., ADR 1.18%Sohu.com Inc. 1.16%SABMiller PLC 1.09%KB Financial Group, Inc., ADR 1.07%BHP Billiton PLC 1.03%Vale SA 1.03%Banco Bradesco SA, Preferred, ADR 1.00%OAO Gazprom 1.00%China Shenhua Energy Co. Ltd. 0.99%SJM Holdings Ltd. 0.98%Petroleo Brasileiro SA, ADR 0.94%Grupo Mexico SAB de CV 0.90%Total of Top 25 Holdings 37.30%


4

ˆ200G2csw9&gTiQe=RŠ200G2csw9&gTiQe=R



RR Donnelley ProFile NCR kalim0apSTART PAGE

4*PMT 1C


hsbc-1.0





How to reach us



Toll-free: 1-800-830-8888Fax: 604-669-2756



Edmonton









(201

4-03

)RR

D

ˆ200G2csw9&br3#Z=pŠ 200G2csw9&br3#Z=p



RR Donnelley ProFile NCR kumadbap 4*PMT 1C


art_01-1.0

HSBC MultiAlpha CanadianEquity Pooled Fund



ˆ200G2cswBCdf@P!=cŠ 200G2cswBCdf@P!=c




12*PMT 1C


HSBC MultiAlpha Canadian Equity Pooled Fund

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

We are the manager and primary investment advisor of the Fund.We have hired Scheer, Rowlett & Associates InvestmentManagement Ltd. and Picton Mahoney Asset Management 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 for the MultiAlpha Funds and otherFunds in the Fund’s Simplified Prospectus.





To achieve its objectives, the Fund invests primarily in publiclytraded common shares, preferred shares, rights, special warrantsand convertible securities. A portion of the Fund may be in theform of cash or cash equivalents. When investing in commonshares, the Fund will invest primarily in large cap companies listedon the Toronto Stock Exchange.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. This Fund is suitable for investors whowant to achieve long-term capital growth. Investors in this Fundshould have a long-term investment time horizon and a mediumtolerance for risk in their returns.

Results of OperationsAs of December 31, 2013, the Fund’s net assets decreased by5.6% to $168.0 million from $178.0 million at the end of 2012. Ofthis decrease, a $26.6 million gain was attributable to investmentperformance, which was offset by a $36.6 million decrease due tonet redemptions of Fund units.

Investment PerformanceThe HSBC MultiAlpha Canadian Equity Pooled Fund rose 16.67%for the year ending December 31, 2013, while the benchmark, theS&P/TSX Composite Index, rose 12.99% for the same period.

The global developed equity market rose 11.6% in the fourthquarter and 36.2% for all of 2013. Emerging market equitiesclimbed 5.2% in the fourth quarter, up 4.3% for 2013 (in Canadiandollars). The Canadian equity market gained 7.3% during the lastquarter, up 13.0% for the year. The Canadian bond market gained0.4% in the fourth quarter, down 1.2% for 2013.

The Fund provided strong absolute returns in 2013 as well asexceeding its benchmark due to being underweight in commoditysectors and overweight in the consumer discretionary, industrialsand information technology sectors. The Fund also had positivestock selection within the consumer discretionary, materials,information technology and financials sectors. The portfolioremains well diversified across cyclical and defensive sectors.


Recent DevelopmentsCentral banks continued deploying extraordinary measures toencourage economic activity throughout 2013. These actionsappear to have had a somewhat positive effect although absolutelevels of growth continue to be muted by historical standards. Abetter outlook for growth in the US and eurozone (albeit verytepid) encouraged capital markets, driving positive returns forglobal equity markets in each quarter of 2013. Contributing to thepositive sentiment in the latter part of the year was a belief thatUS markets could withstand the normalization to higher interestrates (from both the reduction in the pace of asset purchases bythe US Federal Reserve Bank starting in January and moresustainable economic growth) concurrent with incrementalimprovement in sovereign eurozone financial conditions.

We expect modest positive global growth in 2014 aided bycontinued accommodative monetary policy, less fiscal policy dragand slightly more positive cyclical forces. There is a risk thatgrowth could be slower due to government fiscal policy action

1

ˆ200G2cswBHfBr1N&8Š200G2cswBHfBr1N&8






and/or muted willingness for consumer spending and businessinvestment (potentially exacerbated by higher interest rates).Equity markets continue to have more attractive valuations thandebt markets, but there is a risk that if earnings growth does notaccelerate in 2014, markets may be disappointed given valuationlevels. US political issues, renewed concerns regarding eurozonestability, and the growth and transition for the Chinese economycould also impact markets.






Financial HighlightsThe following table shows selected key financial information aboutthe Fund and is intended to help you understand the Fund’s financialperformance for the years shown. This information is derived fromthe Fund’s audited annual financial statements. The information inthe following table is based on prescribed regulations, and as a

result, is not expected to add due to the increase/decrease in netassets from operations being based on average units outstandingduring the year and all other numbers being based on actual unitsoutstanding at the relevant point in time.

HSBC MultiAlpha Canadian Equity Pooled FundYears ended December 31 Inception: June 2003

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


period (1,7) $14.93 $14.08 $15.90 $13.95 $10.27


Total revenue 0.45 0.39 0.37 0.32 0.37Total expenses (0.02) (0.01) (0.02) (0.02) (0.02)Realized gains (losses) 0.61 (0.11) 0.30 0.43 (2.31)Unrealized gains (losses) 1.37 0.96 (2.19) 1.51 5.80


operations (1) $2.41 $1.23 $(1.54) $2.24 $3.84


From income (excluding dividends) – – – (0.01) –From dividends (0.49) (0.41) (0.35) (0.29) (0.16)From net realized gains oninvestments – – – – –




2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009






2

ˆ200G2cswBCiyzbj=rŠ200G2cswBCiyzbj=r





g66w68-14.0








Past PerformanceThe performance information shown assumes that all distributionsmade by the Fund in the periods shown were reinvested inadditional securities of the Fund. The performance informationdoes not take into account management fees, sales, redemption,

distribution, optional charges or expenses you may be chargedoutside of the Fund or the effect of any income tax you may haveto pay as a result of your investment in the Fund that would havereduced returns or performance. The Fund’s past performancedoes not necessarily indicate how it will perform in the future.


Annual Returns60%

-60%

0%

-40%

-20%

20%

40%

Dec. 312005

25.6%

Dec. 312006

19.8%

Dec. 312007

4.5%

Dec. 312008

-38.5%

Dec. 312009

37.3%

Dec. 312010

16.1%

Dec. 312011

-9.2%

Dec. 31

8.9%16.7%

2012Dec. 31

2013Dec. 31

2004

14.5%

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark index, the S&P/TSX Capped Composite Index, over thesame period. This index tracks changes in the share price of thelargest companies listed on the Toronto Stock Exchange,representing a broad range of industries.

Inception: June 2003


HSBC MultiAlpha Canadian EquityPooled Fund 16.67% 4.88% 12.95% 7.36%

S&P/TSX Capped Composite Index 12.99% 3.40% 11.92% 7.97%

3

ˆ200G2cswB5TBQfH&aŠ200G2cswB5TBQfH&a



RR Donnelley ProFile NCR battk0an 13*PMT 1C





NAV

Financials 38.11%Energy 23.10%Materials 13.39%Consumer Discretionary 9.26%Industrials 7.10%Telecommunication Services 2.85%Consumer Staples 1.75%Information Technology 1.58%Healthcare 1.37%Utilities 0.25%Cash & Equivalents 1.24%Total 100.00%


NAV

Toronto-Dominion Bank 7.80%Royal Bank of Canada 7.57%Bank of Nova Scotia 7.22%Suncor Energy Inc. 5.18%Canadian Imperial Bank of Commerce 5.06%Canadian National Railway Co. 4.06%Canadian Natural Resources Ltd. 4.00%Manulife Financial Corp. 2.77%Agrium Inc. 2.61%Magna International Inc. 2.52%TELUS Corp. 2.29%Teck Resources Ltd. 2.24%Cenovus Energy Inc. 2.15%Gildan Activewear Inc. 1.50%Barrick Gold Corp. 1.39%Sun Life Financial Inc. 1.38%IGM Financial Inc. 1.33%Talisman Energy Inc. 1.33%TransCanada Corp. 1.30%Rogers Communications Inc. 1.29%Canadian Tire Corp. Ltd. 1.21%Husky Energy Inc. 1.07%National Bank of Canada 0.96%Potash Corp. of Saskatchewan Inc. 0.96%Valeant Pharmaceuticals International, Inc. 0.91%Total of Top 25 Holdings 70.10%


4

ˆ200G2csw9&bwh5$&&Š200G2csw9&bwh5$&&



RR Donnelley ProFile NCR kumadbapSTART PAGE

3*PMT 1C


hsbc-1.0





How to reach us

Vancouver



Toll-free: 1-800-830-8888Fax: 604-669-2756

Toronto

Suite 300 – 70 York StreetToronto, ON M5J 1S9

Calgary

10th Floor, 407 – 8th Avenue SWCalgary, AB T2P 1E5

Edmonton


Montreal

Suite 300 – 2001 McGill College AvenueMontreal, QC H3A 1G1

Victoria

869 Douglas StreetVictoria, BC V8W 2B9


This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-lookingstatements include 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 statementthat may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement.Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things,risks, uncertainties and assumptions about 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 orimplied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but notlimited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity andcapital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, andcatastrophic 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.


(201

4-03

)RR

D

ˆ200G2csw9&exTQT&oŠ200G2csw9&exTQT&o





art_01-1.0

HSBC MultiAlphaU.S. Equity Pooled Fund



ˆ200G2cswB9i2kp9=LŠ200G2cswB9i2kp9=L




9*PMT 1C


HSBC MultiAlpha U.S. Equity Pooled Fund

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

We are the manager and primary investment advisor of the Fund.We have hired Artisan Partners, Herndon Capital Management,LLC, Los Angeles Capital Management and Equity Research, Inc.,WestEnd Advisors and Winslow Capital Management Inc. 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 for the MultiAlpha Funds and otherFunds in the Fund’s Simplified Prospectus.





To achieve its objectives, the Fund invests primarily in well-established US companies diversified across industry sectors. TheFund also invests in companies based outside of the US if theirsecurities are listed on a US exchange (including depositaryreceipts or other equity-linked securities) and they are owned orcontrolled by US interests, or where a significant portion of theearnings, production facilities, turnover, assets or investments ofsuch companies are based in or derived from the US. A portion ofthe Fund may be in the form of cash or cash equivalents.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. This Fund is suitable for investors who want to

achieve long-term capital growth and have a long-term investmenttime horizon with a medium tolerance for risk in their returns.


Investment PerformanceThe HSBC MultiAlpha U.S. Equity Pooled Fund rose 41.41% forthe year ending December 31, 2013, while the benchmark, theRussell 1000 Index (C$), rose 42.30% for the same period.

2013 was one of the strongest years on record for US equities.Virtually every area of the market netted solid gains. Ample supplyof central bank liquidity has aided in the market’s momentum.Easy monetary policy has not only reduced borrowing costs forbusinesses and consumers, but has lowered the bar for equities,which have had very little competition from low-yielding cash andbonds.

The return of the yield factor closely tracks changes in interestrates. In 2013, high-yielding stocks underperformed as interestrates rose. Net profit margins remain exceptionally high and theirincrease in recent years can be attributed to a decline in interestand tax expense. Separately, high-margin firms underperformed asinvestors reached for riskier assets; highly levered companiesoutperformed due to the US Federal Reserve Bank’s penchant toappease markets via additional stimulus or via the postponementof tapering; share repurchasers comfortably outperformed non-repurchasers.

The underperformance at the Fund level was primarily driven bythe modest cash position that detracted as equities performedstrongly. Cash averaged 2.6% for the year. Stock selection wasslightly positive with strength in the healthcare and financialssectors being offset by weakness in the materials, consumerdiscretionary and information technology sectors.

Recent DevelopmentsDuring 2013, we adjusted the allocations to the five underlyingsub-advisors. Additional exposure was added to the large cap corequantitative manager while the weight to the two value-orientedand two growth-oriented managers were reduced. This was doneto reduce the high volatility of the value sleeve and increase thecore sleeve to achieve more consistent performance.

Over the year, the quality of the Fund has declined as the valuemanagers have moved to more cyclical companies and thevaluation profile has moved from a slight growth bias to slight

1

ˆ200G2cswBHfFBqD=OŠ200G2cswBHfFBqD=O






value. The exposures to the materials, energy and consumerstaples sectors have increased while exposures to the consumerdiscretionary and financials sectors decreased.







HSBC MultiAlpha U.S. Equity Pooled FundYears ended December 31 Inception: June 2003

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


period (1,7) $8.85 $8.13 $8.10 $7.57 $6.97


Total revenue 0.15 0.16 0.12 0.11 0.11Total expenses (0.02) (0.02) (0.02) (0.02) (0.02)Realized gains (losses) 1.47 0.76 0.14 (0.13) (1.47)Unrealized gains (losses) 2.09 0.02 (0.09) 0.66 2.11


operations (1) $3.69 $0.92 $0.15 $0.62 $0.73


From income (excluding dividends) – – – (0.10) (0.05)From dividends (0.15) (0.16) (0.11) – –From net realized gains oninvestments – – – – –



period (1,7) $12.36 $8.85 $8.13 $8.10 $7.57


2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009






(5) 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 period. Thehigher the Fund’s portfolio turnover rate in a period, the greater thetrading costs payable by the Fund in the period, and the greater the

2

ˆ200G2cswBCi!mom=+Š 200G2cswBCi!mom=+





g59h58-14.0


chance of an investor receiving taxable capital gains in the year. Thereis not necessarily a relationship between a high turnover rate and theperformance of the Fund. The rate is calculated based on the lesser ofpurchases or sales of securities divided by the average weightedmarket value of the portfolio securities, excluding short-termsecurities.








Annual Returns50%

-40%

0%

-30%

-10%-20%

10%

30%40%

20%

Dec. 312005

6.3%

Dec. 312006

16.6%

Dec. 312007

-15.7%

Dec. 312008

-25.5%

Dec. 312009

9.2%

Dec. 312010

8.3%

Dec. 312011

1.8%

Dec. 31

10.9%

41.4%

2012Dec. 31

2013Dec. 31

2004

7.4%

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark index, the Russell 1000 Index (C$), over the sameperiod. This index measures the performance of large cap stocksof the US equity universe, representing a broad range ofindustries. This index is tracked in US dollars and was converted toCanadian dollars.



HSBC MultiAlpha U.S. Equity Pooled Fund 41.41% 16.86% 13.55% 4.66%

Russell 1000 Index (C$) 42.30% 18.93% 15.29% 5.70%

3

ˆ200G2cswBBqfQYt&uŠ200G2cswBBqfQYt&u








NAV

Information Technology 19.53%Consumer Discretionary 17.11%Financials 13.45%Healthcare 11.47%Energy 10.78%Consumer Staples 9.08%Industrials 8.32%Materials 4.46%Telecommunication Services 2.15%Utilities 0.62%Cash & Equivalents 3.03%Total 100.00%


NAV

Apple Inc. 2.93%Oracle Corp. 1.93%International Business Machines Corp. 1.47%TJX Cos., Inc. 1.45%Union Pacific Corp. 1.29%Apache Corp. 1.28%Microsoft Corp. 1.27%EMC Corp. 1.26%Walt Disney Co. 1.23%Chevron Corp. 1.22%CVS Corp. 1.20%Coach Inc. 1.16%Celgene Corp. 1.14%eBay Inc. 1.14%Nike Inc. 1.12%Google Inc. 1.10%QUALCOMM Inc. 1.10%Johnson & Johnson 1.09%Western Union Co. 1.05%Estée Lauder Inc. 1.03%Costco Wholesale Corp. 1.00%Exxon Mobil Corp. 1.00%Samsung Electronics Co. Ltd., Preferred 0.98%Amgen Inc. 0.95%Kraft Foods Inc. 0.93%Total of Top 25 Holdings 31.32%


4

ˆ200G2csw9&eyVDs&{Š 200G2csw9&eyVDs&{




4*PMT 1C


hsbc-1.0





How to reach us



Toll-free: 1-800-830-8888Fax: 604-669-2756











(201

4-03

)RR

D

ˆ200G2csw9&eobPx=1Š200G2csw9&eobPx=1



RR Donnelley ProFile NCR singr0an 4*PMT 1C


art_01-1.0

HSBC MultiAlpha U.S.Small/Mid Cap Equity Pooled Fund



ˆ200G2cswB9eZaYH&{Š200G2cswB9eZaYH&{




6*PMT 1C


HSBC MultiAlpha U.S. Small/Mid Cap Equity Pooled Fund

Management Discussion of Fund PerformanceIn this document, you and your refer to the unitholder of the Fund;we, us and our refer to HSBC Global Asset Management (Canada)Limited; and the Fund refers to the HSBC MultiAlpha U.S. Small/Mid Cap Equity Pooled Fund.

We are the manager and primary investment advisor of the Fund.We have hired Westfield Capital Management Company, L.P. andLoomis, Sayles & Company, L.P. as sub-advisors to provideportfolio management and investment advisory services to theFund. For an explanation of the relationship between us and thesub-advisors, see the section Selection of Sub-Advisors for theMultiAlpha Funds and other Funds in the Fund’s SimplifiedProspectus.





To achieve its objectives, the Fund invests primarily in a broadrange of small and mid-sized US companies. The Fund may investin publicly traded common shares, preferred shares, rights, specialwarrants and convertible securities. A portion of the Fund’sholdings may be in the form of cash or cash equivalents.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. This Fund is suitable for investors seeking ahigher level of long-term capital growth on their investment.Investors in this Fund should have a long-term investment timehorizon and a medium to high tolerance for risk in their returns.


Investment PerformanceThe HSBC MultiAlpha U.S. Small/Mid Cap Equity Pooled Fund rose45.63% for the year ending December 31, 2013, while thebenchmark, the Russell 2500 Index (C$), rose 46.13% for thesame period.

2013 was one of the strongest years on record for US equities.Virtually every area of the market netted solid gains. Ample supplyof central bank liquidity has aided in the market’s momentum.Easy monetary policy has not only reduced borrowing costs forbusinesses and consumers, but has lowered the bar for equities,which have had very little competition from low-yielding cash andbonds.

Within this positive overall framework, stock market leadershipwas generally unchanged, with smaller capitalization and growth-oriented stocks providing the best returns, and cyclical sectorssuch as industrials and consumer discretionary outperformingmore defensive sectors and industries such as utilities, consumerstaples and real estate investment trusts.

Sector allocation decisions contributed as the underweightpositions in the utilities and financials sectors and the overweightposition in the consumer discretionary sector offset the cash drag.Stock selection was slightly negative as positive performance inthe consumer discretionary, financials and materials sectors offsetthe weakness in the consumer staples and information technologysectors.

Recent DevelopmentsThere were no changes to the underlying sub-advisors or theindividual allocations. The managers have a flexible process and itis expected that the sector and factor exposures will graduallyshift over time. Relative to the benchmark, the Fund maintains alarge underweight to the financials sector and moderateoverweights to the consumer discretionary and healthcare sectors.

Over the year, the exposures to the industrials, consumerdiscretionary and healthcare sectors have increased whileexposures to the technology and materials sectors decreased. TheFund’s cyclical orientation has decreased. The growth orientationand exposure to mid-cap stocks have increased. There is a qualityorientation reflected by lower earnings variability and pricevolatility.

1

ˆ200G2cswBHfGXrF&5Š200G2cswBHfGXrF&5









Trustee ServicesFor the year, the Fund paid HSBC Trust Company (Canada)(an affiliate) less than $1,000 (December 31, 2012 – less than$1,000) for acting as trustee.



HSBC MultiAlpha U.S. Small/Mid Cap EquityPooled FundYears ended December 31 Inception: June 2003

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


period (1,7) $17.45 $15.09 $14.99 $12.60 $10.22


Total revenue 0.18 0.17 0.12 0.15 0.06Total expenses (0.10) (0.08) (0.08) (0.05) (0.04)Realized gains (losses) 3.85 1.96 0.68 1.09 (0.37)Unrealized gains (losses) 4.00 0.69 (0.62) 1.09 2.72


operations (1) $7.93 $2.74 $0.10 $2.28 $2.37


From income (excluding dividends) – – – (0.09) (0.01)From dividends (0.22) (0.22) (0.06) – –From net realized gains on investments – – – – –




2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009

NAV (in 000s) (3,7) $21,352 $18,719 $22,524 $22,612 $21,781Units outstanding (in 000s) (3) 847 1,072 1,492 1,508 1,727NAV per unit (3) $25.20 $17.46 $15.10 $14.99 $12.61Management expense ratio (“MER”) (4) 0.48% 0.48% 0.53% 0.37% 0.39%MER before absorbed or waived fees (4) 0.48% 0.48% 0.53% 0.37% 0.39%Portfolio turnover rate (5) 44.44% 67.31% 60.06% 69.76% 66.95%Trading expense ratio (6) 0.10% 0.14% 0.14% 0.30% 0.14%




(4) MER includes the total expenses of each Fund, including the Goods andServices Tax and/or Harmonized Sales Tax thereon, other than brokeragecommissions on securities transactions and any foreign withholding taxeson income, as an annualized percentage of average net asset value(“NAV”) of the Fund for the period. In the period a Fund is established,the MER is annualized from the date of inception to the end of the period.We may have waived or absorbed certain fees and expenses otherwisepayable by the Fund. The amount of expenses absorbed or waived is atthe discretion of and can be terminated at any time by us.

(5) 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 period. Thehigher the Fund’s portfolio turnover rate in a period, the greater thetrading costs payable by the Fund in the period, and the greater thechance of an investor receiving taxable capital gains in the year. Thereis not necessarily a relationship between a high turnover rate and theperformance of the Fund. The rate is calculated based on the lesser of

2

ˆ200G2cswBCi@dkN=VŠ200G2cswBCi@dkN=V





g38t68-13.0


purchases or sales of securities divided by the average weightedmarket value of the portfolio securities, excluding short-termsecurities.


(7) Generally accepted accounting principles require that the calculation ofa Fund’s net asset value for financial reporting purposes (“net assets”)be based upon investments valued using closing bid prices. Aspermitted by securities regulations, the value of investments used todetermine the daily prices of the Funds units for purchase andredemption by clients (“NAV”) continues to be based upon the lastsale price or the midpoint between closing bid and asked quotations.






Annual Returns60%

-40%

30%40%50%

Dec. 3120052004

Dec. 312006

Dec. 312007

Dec. 312008

Dec. 312009

Dec. 312010

Dec. 312011

Dec. 312012

Dec. 312013

0%

-30%

-10%-20%

10%20%

8.6%14.5%

6.0%

-26.2%

23.2% 19.6% 17.1%

45.6%

1.1%

Dec. 31

2.6%

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark index, the Russell 2500 Index (C$), over the sameperiod. This index measures the performance of small to mid capstocks of the US equity universe, representing a broad range ofindustries. This index is tracked in US dollars and was converted toCanadian dollars.



HSBC MultiAlpha U.S. Small/Mid Cap EquityPooled Fund 45.63% 19.90% 20.49% 9.74%

Russell 2500 Index (C$) 46.13% 18.89% 18.51% 7.65%

3

ˆ200G2cswB4v2afo=[Š200G2cswB4v2afo=[








NAV

Industrials 19.35%Consumer Discretionary 17.52%Information Technology 14.52%Financials 12.74%Healthcare 12.34%Materials 8.39%Energy 7.44%Consumer Staples 3.02%Utilities 2.24%Cash & Equivalents 2.44%Total 100.00%


NAV

Alliance Data Systems Corp. 2.08%Jarden Corp. 1.98%Raymond James Financial Inc. 1.56%Cytec Industries Inc. 1.47%WESCO International Inc. 1.32%Mettler-Toledo International Inc. 1.29%Tesoro Corp. 1.29%WABCO Holdings Inc. 1.27%American Water Works Co., Inc. 1.21%The NASDAQ OMX Group Inc. 1.18%Informatica Corp. 0.99%ITT Corp. 0.96%Lear Corp. 0.94%Wex Inc. 0.94%WR Grace & Co. 0.94%Wyndham Worldwide Corp. 0.94%Keycorp Ltd. 0.93%Liberty Ventures, Series A 0.92%Alkermes PLC 0.90%Amphenol Corp. 0.88%Cubist Pharmaceuticals Inc. 0.88%Genesee & Wyoming Inc. 0.88%CareFusion Corp. 0.87%Liberty Media Corp. – Interactive 0.87%Prosperity Bancshares Inc. 0.86%Total of Top 25 Holdings 28.35%


4

ˆ200G2csw9&e#qLj=ÂŠ200G2csw9&e#qLj=´



RR Donnelley ProFile NCR singr0anSTART PAGE

4*PMT 1C


hsbc-1.0





How to reach us

Vancouver



Toll-free: 1-800-830-8888Fax: 604-669-2756

Toronto

Suite 300 – 70 York StreetToronto, ON M5J 1S9

Calgary

10th Floor, 407 – 8th Avenue SWCalgary, AB T2P 1E5

Edmonton


Montreal

Suite 300 – 2001 McGill College AvenueMontreal, QC H3A 1G1

Victoria

869 Douglas StreetVictoria, BC V8W 2B9






(201

4-03

)RR

D

ˆ200G2csw9&e!Myy=/Š200G2csw9&e!Myy=/





art_01-1.0

HSBC MultiAlphaInternational Equity Pooled Fund



ˆ200G2cswB9e=f7r&aŠ200G2cswB9e=f7r&a




10*PMT 1C


HSBC MultiAlpha International Equity Pooled Fund

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

We are the manager and primary investment advisor of the Fund.We have hired MFS Investment Management and Martin CurrieInvestment Management Ltd. as sub-advisors to provide portfoliomanagement and investment advisory services to the Fund. For anexplanation of the relationship between us and the sub-advisors,see the section Selection of Sub-Advisors for the MultiAlpha Fundsand other Funds in the Fund’s Simplified Prospectus.





To achieve its objectives, the Fund invests primarily in equities andequity-related securities issued by large companies fromnon-North American countries. To maintain a diversified portfolioof holdings, the Fund will invest in companies from a broad rangeof industries. A portion of the Fund may be in the form of cash orcash equivalents.

RiskThe risks of investing in the Fund remain as discussed in theSimplified Prospectus. This Fund is suitable for investors seekinglong-term growth from equity securities in non-North Americanmarkets. Investors in this Fund should have a long-terminvestment time horizon and a medium tolerance for risk in theirreturns.


Investment PerformanceThe HSBC MultiAlpha International Equity Pooled Fund rose34.04% for the year ending December 31, 2013, while thebenchmark, the MSCI EAFE Index (in Canadian dollars), rose31.81% for the same period.

Over 2013, the benchmark advanced strongly despite a turbulentsecond quarter. European and Japanese stocks did particularlywell in 2013. European equities were helped by gradual economicimprovements and looser monetary policies by the EuropeanCentral Bank while Japanese stocks soared on aggressive actionby policymakers. Even a late-year announcement to taperquantitative easing by the US Federal Reserve Bank failed to rattleinvestors.

Both portfolio sector decisions and stock selection contributed tothe Fund’s outperformance over the benchmark in 2013.Specifically, the Fund’s underweight to the poorly performingmaterials and utilities sectors and overweight to the technologysector helped the most with regards to sector positioning. Interms of stock selection, positions in the financials, materials andtelecommunications sectors helped the most.

Recent DevelopmentsInternational equity markets advanced significantly in 2013, backedby accommodative monetary policies and a gradual improvementin economic growth for most developed economies. Policyboldness in Europe and Japan also diminished macroeconomicrisks for investors. The sharp rally in international markets over2013 was fuelled largely by multiple expansions with only modestgains in company earnings. Current valuations suggest thatinvestors are anticipating higher rates of earnings growth in 2014.

The Fund continues to favour the consumer staples sector,believing that the companies held represent attractive valuerelative to their free cash flow generation ability, their strongbalance sheets and their higher barriers to entry. Positioning iscurrently biased away from the financials and materials sectors.Within the financials sector, the Fund prefers insurers over majorbanks and diversified financials due to better growth prospectsrelative to risks.

Related Party TransactionsWe, on behalf of the Fund, or the Fund Manager, may, from time totime, enter into transactions or arrangements with or involving other

1

ˆ200G2cswBHfJHfw=_Š200G2cswBHfJHfw=_






members of the HSBC Group or other people or companies relatedor connected to us or the Fund. To proceed with the transactions,the Fund relies on the positive recommendation of the Fund’sIndependent Review Committee. A condition of this positiverecommendation is that the transactions are performed inaccordance with our policy on Related Party Transactions. For moregeneral information on persons related to the Fund and the types ofpotential transactions, see the Fund’s Simplified Prospectus.





Investments in Securities of Related PartiesIn accordance with Canadian securities legislation and policies setout by our Independent Review Committee, the Fund may investits assets in the securities of companies related to the Fund’sinvestment advisor or sub-advisor. During the period, the Fundheld, purchased or sold shares in HSBC Holdings PLC (ourultimate parent company), which represented 2.61% of the Fund’sassets, as at December 31, 2013.


HSBC MultiAlpha International Equity Pooled FundYears ended December 31 Inception: November 2003

Dec. 31

2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


period (1,7) $9.10 $8.41 $9.81 $10.24 $8.80


Total revenue 0.29 0.27 0.29 0.24 0.32Total expenses (0.03) (0.02) (0.01) (0.04) (0.04)Realized gains (losses) 0.86 (1.12) (0.33) (0.93) (2.65)Unrealized gains (losses) 2.00 1.83 (1.12) 0.58 3.69


operations (1) $3.12 $0.96 $(1.17) $(0.15) $1.32


From income (excluding dividends) – – – (0.20) (0.15)From dividends (0.28) (0.28) (0.26) – –From net realized gains on investments – – – – –




2013

Dec. 31

2012

Dec. 31

2011

Dec. 31

2010

Dec. 31

2009


(1) Net assets per unit and distributions per unit are based on the actualnumber of units outstanding at the relevant time. The increase/decreasein net assets from operations per unit is based on the weighted averagenumber of units outstanding over the fiscal period.





2

ˆ200G2cswBCno=uy=8Š200G2cswBCno=uy=8



RR Donnelley ProFile NCR kumasfap 17*PMT 1C


g58k29-12.0








Year-by-Year ReturnsYears ended December 31The following bar chart shows the Fund’s annual performance foreach 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 first day ofeach financial year would have grown or decreased by the last dayof each financial year.

Annual Returns60%

-60%

0%

-20%

-40%

20%

40%

Dec. 312005

Dec. 312006

Dec. 312007

Dec. 312008

Dec. 312009

Dec. 312010

Dec. 312011

18.6%

32.6%

-7.9%

-39.4%

18.0%11.4%

-2.3%-11.5%

Dec. 312012

Dec. 312013

34.0%

Dec. 312004

16.5%

Annual Compound ReturnsYears ended December 31, 2013The following table shows the Fund’s historical annual compoundtotal returns for the years indicated, compared with thebenchmark index, the MSCI EAFE Index (C$), over the sameperiod. This index measures the performance of the stocks tradedon various exchanges across Europe, Australasia and the Far East.This index is tracked in US dollars and was converted to Canadiandollars.

Inception: November 2003


HSBC MultiAlpha International EquityPooled Fund 34.04% 9.75% 8.79% 4.54%

MSCI EAFE Index (C$) 31.81% 11.12% 9.82% 5.32%



NAV

Financials 21.13%Industrials 14.71%Consumer Staples 13.87%Consumer Discretionary 12.52%Information Technology 10.51%Healthcare 8.55%Materials 6.32%Telecommunication Services 5.58%Energy 3.80%Cash & Equivalents 3.01%Total 100.00%

3

ˆ200G2cswBCnodJg&,Š200G2cswBCnodJg&,



RR Donnelley ProFile NCR kumasfap 11*PMT 1C




NAV

United Kingdom 22.91%Japan 22.66%Switzerland 11.55%France 9.56%Germany 4.99%Australia 3.46%Hong Kong 2.99%Spain 2.95%Sweden 2.53%Italy 2.40%Netherlands 1.61%Belgium 1.48%Norway 1.47%Taiwan 1.10%South Korea 1.01%Israel 0.89%Finland 0.73%Austria 0.69%South Africa 0.66%Denmark 0.61%Bermuda 0.50%Ireland 0.12%Singapore 0.11%Luxembourg 0.01%Cash & Equivalents 3.01%Total 100.00%


NAV

Roche Holding AG 2.67%HSBC Holdings PLC 2.61%Japan Tobacco Inc. 2.29%British American Tobacco PLC 1.82%Rio Tinto PLC 1.74%Hitachi Ltd. 1.70%KDDI Corp. 1.61%BNP Paribas SA 1.54%Anheuser-Busch InBev NV 1.48%Danone SA 1.48%DNB ASA 1.47%BG Group PLC 1.41%Novartis AG 1.34%Sanofi-Aventis SA 1.34%Mitsubishi UFJ Financial Group Inc. 1.31%Safran SA 1.31%Nestle SA 1.30%Prudential PLC 1.30%GlaxoSmithKline PLC 1.29%Schneider Electric SA 1.29%Macquarie Group Ltd. 1.25%Compass Group PLC 1.24%Credit Suisse Group 1.24%Lawson Inc. 1.17%Daimler AG 1.16%Total of Top 25 Holdings 38.36%


4

ˆ200G2csw9&gY9Vx=OŠ200G2csw9&gY9Vx=O



RR Donnelley ProFile NCR pf_rendSTART PAGE

5*PMT 1C

NCRPRFRS0911.3.14

hsbc-1.0





How to reach us



Toll-free: 1-800-830-8888Fax: 604-669-2756











(201

4-03

)RR

D

hsbc pooled funds · 2014-03-27 · we, us and our refer to hsbc global asset management (canada)...

Documents