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HSBC Global Asset Management

JANUARY 2009

HSBC Multimanager
MultiAlpha Overview

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Contents

Background Appendices Fund Details Fund Performance Targets, Tracking Errors & Fees Fund Performance Statistics

Section 1

Appendix I Appendix II Appendix III

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What is Multimanager?

HSBC Multimanager is a specialist division of HSBC Global Asset Management. HSBC have committed substantial global resources to create a Multimanager capability that allows us to bring together the worlds most skilled investment managers whether they work for major investment groups or small boutiques.

Client

Multimanager

HSBC Investments Select Fund

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Who is Multimanager?

A global powerhouse A dedicated and experienced global team


42 Multimanager investment specialists based in major financial centres (New York, London, Paris, Hong Kong, etc.)

Acknowledged expertise in open architecture


Multimanager portfolios managed since 1994 More than USD 79 billion assets under advice and management at end November 2008

Toronto

London Dusseldorf New York Paris Tokyo Dubai Mumbai Taiwan Hong Kong

Bogot So Paolo

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Why choose a Multimanager fund?

Choosing an investment is more complex than it looks: No single asset manager has a monopoly on talent No fund manager is an expert in all asset classes Even the very best managers may occasionally underperform Using a single manager is inherently risky
Portfolio Management

Risk Control Best of Breed

Asset Allocation

Operations

Alpha / Beta Research

Buy / Sell Discipline

Performance

Rebalancing Diversification

Style allocation

Ongoing monitoring

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What is MultiAlpha?

Alpha vs beta Alpha: An indicator of risk adjusted performance of a fund, ie the performance over (or under) the benchmark index. The objective will be to generate positive alpha, therefore outperforming the index Beta: The tendency of a fund (or portfolio) to move in line with its associated market benchmark (ie the tendency of a US equity fund to move in line with the S&P500 index). A beta of 1 is an exact replication (index funds or ETFs would be very close to 1) MultiAlpha: Combining a range of managers who produce alpha via different methods and blending them together in order to control risk and generate superior fund performance

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The MultiAlpha concept at HSBC Global Asset Management

Why we built MultiAlpha Global reach A need for a truly global multimanager product platform giving access to the best managers in each market and each asset class Efficiency and clarity A pure manifestation of our multimanager expertise MultiAsset building blocks A series of building blocks for the best MultiAsset solutions for clients in both Wholesale and Institutional segments MultiAlpha: The concept A differentiated product offering: Pure best ideas portfolios Bias to boutique investment managers Unconstrained portfolios Product that leverages our global investment strength MultiAlpha a truly global platform with unique access to best in breed managers
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Manager research

Over 40 investment professionals with average experience above 10 years Focused on identifying investment strategies that outperform and blending them effectively

How do we identify outstanding strategies?


We must have an information and an analytical advantage Our information advantage comes from:
Having specialists close to the strategies and markets they follow Who can compare managers objectively to identify best in class Who can discover new managers and new strategies

Our analytical advantage comes from:


A rigorous research process Quantitative and qualitative analysis A globally consistent research process

Our global investment footprint represents a significant competitive advantage


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Portfolio management process

Understanding the alpha driver within a managers process Understanding the area of the market where there focus this Understanding how the manager applies this process Analysing the interaction effect between highly-rated managers Combining them effectively Process

Alpha Focus

Investment Habitat

Combining powerful and different alpha streams


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MultiAlpha funds available

First phase MultiAlpha funds launched successfully during July and August 2008

MultiAlpha Asia Pacific ex Japan Equity MultiAlpha Europe Equity MultiAlpha Global Emerging Markets Equity MultiAlpha Global Equity MultiAlpha Japan Equity MultiAlpha North American Equity

NB. Central Bank approval is pending for these funds.

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Appendix I: Fund Details

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MultiAlpha: Asia Pacific ex Japan Equity Fund

Performance benchmark: Performance targets: Indicative tracking error: Investment vehicle: Key share classes: Minimum initial investment and holding: Proposed capacity: Underlying managers & weighting:

MSCI Asia Pacific ex Japan Equity 300bps per annum net over rolling 3-5 years 5% HISF Luxembourg UCITS platform A class = 1.5% AMC, 2.0% TER; I class = 0.75% AMC, 1.15% TER USD 5,000 USD 1,500m Resolution 40% TT 35% Lindsell Train 25%

Lead Multimanager analyst:

Arts Masuda
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Introduction MultiAlpha Asia Pacific ex Japan


A unique combination of names Lowly-correlated, high-conviction managers Thematic aspect within the structure Resolution 40%
Stable, experienced team of country specialists Proven process Consistent history of out-performance at moderate risk levels Low correlation with Tiburon and TT Experienced, knowledgeable PM Contrarian investor Proven process Low correlation with Resolution and TT Focused team with experience complementary to process Proven process, employed successfully in Europe/EAFE since 1988 Organizational structure promotes alignment of interests Low correlation with Resolution and Tiburon
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Tiburon

25%

TT

35%

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MultiAlpha: Asia Pacific ex Japan

Resolution

40%

Part of Resolution Asset management, the Asian products are managed by a boutique (stable and experienced) team who leverage the resources of the larger organisation The team are motivated to succeed and the compensation structure ensures a team approach each accountable for stock selection buy bonus linked to overall performance Proven process includes a proprietary screening tool and company-specific visits Approach embraces both top-down and bottom-up elements Emphasis on identifying companies delivering superior earnings growth in markets that provide adequate returns for risk Small, privately owned investment management firm with most of its assets in Asia; and in Mark Fleming they have a PM with insight and great market knowledge The strategy has an Absolute Return focus that blends macro themes and business cycle analysis to guide research and stock selection efforts. This helps identify those undervalued stocks and a technical analysis determines a suitable entry and exit point for each position The end result is a portfolio of a well-diversified range of high-conviction ideas Private partnership, many of whom are involved in investment Jeremy Ip, the lead PM is talented and motivated and leads a focused team of experienced stock-pickers Fundamental bottom-up research is employed to exploit market inefficiencies. A global macro framework then facilitates security selection and portfolio construction Hedge Fund mentality ensures that losers are cut and resources redeployed to higher-conviction ideas
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Tiburon

25%

TT

35%

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The best results can be achieved by combining managers with complementary styles, risk exposures and alpha sources
Alpha Focus
Behaviour Technical Predictive Earnings Valuation Top Down Qual

Process
Quant Into adv Proc. adv

Manager 1

Manager 2

Manager 3

Manager 4

Manager 5

Consolidated Position
Source: HSBC Multimanager/Style Research. For indicative purposes only.

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MultiAlpha: Europe Equity Fund

Performance benchmark: Performance targets: Indicative tracking error: Investment vehicle: Key share classes: Minimum initial investment and holding: Proposed capacity: Underlying managers & weighting:

MSCI Europe Equity 150bps per annum net over rolling 3-5 years 2.50% HISF Luxembourg UCITS platform A class = 1.5% AMC, 1.9% TER; I class = 0.75% AMC, 1.0% TER USD 5,000 USD 1,500m JO Hambro Capital Management 50% AGR 50%

Lead Multimanager analyst:

Pascale Huard

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Introduction MultiAlpha Europe


Lowly-correlated, high-conviction managers Well-diversified portfolio Low active risk function of AQR signal/noise optimisation JO Hambro 50%
UK-based boutique manager Strong portfolio manager Rod Marsden Pragmatic investment approach Robust bottom-up-driven process Supported by long-term market cycle analysis Focus on earnings momentum and earnings surprise Quantitative investment boutique Extremely stable team with senior professionals together for 15yrs Dynamic factor process Comprises different alpha streams (stock, country, currency)

AQR

50%

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MultiAlpha: Europe Equity


JO Hambro
50%
Independent UK-based boutique manager, established in 1993, responsible for a number of European strategies The investment process is run by a strong and experienced portfolio manager (27 years experience) Rod Marsden supported by a co-manager The investment process is bottom-up-driven with a strong top-down overlay. This leads to stock picking and may be the key source of outperformance in economic/market inflection points Marsdens stock selection is focused on earnings momentum and specifically picking stocks which are expected to exhibit positive earnings surprise

AQR

50%

AQR is a quantitative investment boutique established in 1998 with a focus primarily on institutional mandates The investment team is both extremely stable and very senior with professionals together for 15 years. There is also a significant human (quant) resource and research effort The quant model is extremely robust with backtested quality data from the late 70s and early 80s for much of the strategy The model combines both value and momentum and accesses different alpha streams (stock, country, currency) Any significant changes to the model are debated at the top level and the team keeps a collegiate approach towards investing

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MultiAlpha: Global Equity Fund

Performance benchmark: Performance targets: Indicative tracking error: Investment vehicle: Key share classes: Minimum initial investment and holding: Proposed capacity: Underlying managers & weighting:

MSCI World Equity 200bps per annum net over rolling 3-5 years 4% HISF Luxembourg UCITS platform A class = 1.5% AMC, 1.9% TER; I class = 0.75% AMC, 1% TER USD 5,000 USD 2,250m Taube Hodson Stonex Partners 40% Longview Capital Management 30% Spencer House 30%

Lead Multimanager analyst:

Ana da Maia
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MultiAlpha Global Equity


Well-diversified structure Different managers have different regional strengths Structure comprises three very aggressive managers Longview Partners 30%
Absolute oriented product Small boutique firm, with very strong team-oriented culture Strong bottom-up research-driven process DCF-based investment approach, focusing on valuation, business fundamentals and quality Small boutique partnership Strong focus on global equities Strong, high calibre, investment team Combination of bottom-up stock-picking and industry thematic drivers Small boutique firm Unconstrained best ideas portfolio Experienced team ex Deutsche/Morgan Grenfell Strong US expertise

Taube, Hodson, Stonex

40%

Spencer House Capital Management

30%

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MultiAlpha: Global Equity Fund


Longview Partners

30%

Small boutique firm, with very strong team-oriented culture 30% owned by Rabobank and 70% by working partners Absolute Return-oriented product Strong bottom-up research-driven process focused on identifying cheap companies with a business model that can deliver recurring earnings Discounted Cash Flow-based investment approach, focusing on valuation, business fundamentals and quality Small boutique partnership of experienced investors (strong, high calibre investment team) who all are equal owners of the business Strong focus on global equities. Mainly value-driven investors who will take contrarian views building positions over a long period Bottom-up stock-picking combined with a well developed research discipline focusing on industry thematic drivers Will invest in the full spectrum, but this portfolio is restricted by liquidity to mid- and large-cap investments Small boutique firm which is owned by the founding partners and senior fund managers The team are well aligned with interests of clients Unconstrained best ideas portfolio, driven primarily by stock selection, framed by a global top-down view Experienced team ex Deutsche/Morgan Grenfell with a strong US expertise
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Taube, Hodson, Stonex

40%

Spencer House Capital Management

30%

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MultiAlpha: Global Emerging Markets Equity Fund

Performance benchmark: Performance targets: Indicative tracking error: Investment vehicle: Key share classes: Minimum initial investment and holding: Proposed capacity: Underlying managers & weighting:

MSCI Emerging Markets Equity 250bps per annum net over rolling 3-5 years 4% HISF Luxembourg UCITS platform A class = 1.5% AMC, 2% TER; I class = 0.75% AMC, 1.15% TER USD 5,000 USD 1,500m Gartmore 50% Panagora 25% Framlington 25%

Lead Multimanager analyst:

Eckhard Weidner
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Introduction MultiAlpha Global Emerging Markets


Lowly-correlated, high conviction managers Very different process types quant/ country, thematic, fundamental bottom-up

Gartmore

50%

Strong and well resourced team lead by Chris Palmer Well-calibrated bottom-up investment process Proprietary fundamental sector research-driven alpha Unrecognised growth focus Differentiated thematic/top-down-oriented process Strong focus on secular economic growth Flexible investment style Quantitative investment process Highly differentiated country allocation focus Value and momentum orientation

Axa Framlington Panagora

25%

25%

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MultiAlpha: Global Emerging Markets Equity


Gartmore
50%

Strong and well-resourced team lead by Chris Palmer. Management buyout in 2006 has closely aligned the interests of clients, shareholders and fund managers Chris Palmer has a strong personal track record (long only and hedge fund) and the team is wellbalanced in terms of experience (markets, industries etc) Stocks are selected for undervalued or undiscovered longer-term growth potential The research team is organised on a global sector basis which improves the understanding of individual companies and supports strong idea generation Owned by Axa Investment Management but remains a specialist fund management company with ability to hire and retain high quality, experienced professionals Fund manager William Calvert has good EM macro experience and has a good understanding of market drivers Idea generation driven by his top-down views and this top-down/macro research drives stock selection Looks for countries with strong economic growth and then identifies industries/companies that are drivers or beneficiaries of that environment A specialist quantitative investment manager that is majority owned by Putnam Investments, themselves owned by Great-West Lifeco (Canadian) David Liddell (GEM strategy) and Mark Barnes (Quant manager) are key individuals. They and their staff are aligned with the success of their funds Pure country allocation approach that is looking to exploit the lower correlation between emerging market countries versus higher correlation of stocks within a market Model is designed to forecast alpha opportunities for each country in the MSCI index, based on the aggregate of stock data, rather than macroeconomic fundamentals
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Axa Framlington

25%

Panagora

30%

Book to Price Dividend Yield Earnings Yield Value Cash Flow Yield Sales to Price EBITDA to Price Return on Equity Earnings Growth Income/ Sales Sales Growth IBES 12-Mth Growth IBES 1-Year Rev Market Beta Market Capital Momentum Short Term Momentum Med Term Debt/ Equity Foreign Sales
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Detailed multi-factor tracking helps to inform our face-to-face research interviews

Source: HSBC Multimanager/Style Research. For indicative purposes only.

Growth Momentum

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MultiAlpha: Japan Equity Fund

Performance benchmark: Performance targets: Indicative tracking error: Investment vehicle: Key share classes: Minimum initial investment and holding: Proposed capacity: Underlying managers & weighting:

Topix 150bps per annum net over rolling 3-5 years 4% HISF Luxembourg UCITS platform A class = 1.5% AMC, 1.9% TER; I class = 0.75% AMC, 1% TER USD 5,000 USD 2,000m Funnex 30% SGAM 25% Lindsell Train 15% T Rowe Price 30% Arts Masuda
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Lead Multimanager analyst:

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MultiAlpha Japan
A blend of established and boutique managers Mix provides a complementary blend of long, medium and short time-horizon managers Of the four managers, SGAM is an important diversifier; Lindsell Train most aggressive T-Rowe Price 30%
Global investment house with Tokyo based analyst team Highly experienced portfolio manager Long term growth orientation, large and mid cap expertise UK based boutique partnership High experienced portfolio manager, Michael Lindsell Leverages on long term investment in concentrated value portfolio Disciplined value manager Large cap product focus Domestic Japanese equity boutique Relatively unique value and momentum process Combine core/satellite portfolio methodology

Lindsell Train

15%

SGAM Funnex

25% 30%

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MultiAlpha: Japan Equity Fund


T Rowe Price 30%
Large global investment house with a stand-alone Tokyo-based Japan strategy Campbell Gunn is a highly experienced portfolio manager, with 23 years experience, supported by a high-calibre team of analysts from diverse backgrounds The process is based on bottom-up stock selection across sectors and the portfolio has a long-term growth orientation, and reflects the large- and mid-cap expertise UK-based boutique partnership with two fund managers. Of those, Michael Lindsell (a highly-experienced portfolio manager) focuses upon Japan Long term investment view taken with low stock turnover (30-40%) and most positions taken for 3-4 years Indifferent to benchmark with a concentrated value portfolio of usually less than 30 stocks Strong emphasis on quality of cash generation, dividend level and growth at stock levels Part of SocGen and managed by Stephen Harker, a disciplined value manager with a value style, large-cap preference and long-term contrarian view Low portfolio turnover at 50%pa, also indifferent to benchmark with a low level of stocks Fund does not hold cyclicals, commodities or small caps, but takes bold positions with top 10 names often accounting for a majority of the fund Domestic Japanese equity boutique established in 2000 Manager employs a high-turnover strategy aimed at catching market trends and with attachment to low PER stocks. Core holdings are stable, but tactical positions could be traded over a week Relatively unique value and momentum process looking at Holt-value to assess trends and the fair value of stocks. Stock selection is the main contributor to performance
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Lindsell Train

15%

SGAM

25%

Funnex

30%

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The best results can be achieved by combining managers with complementary styles, risk exposures and alpha sources
Alpha Focus
Behaviour Technical Predictive Earnings Valuation Top Down Qual

Process
Quant Into adv Proc. adv

Manager 1

Manager 2

Manager 3

Manager 4

Manager 5

Consolidated Position
Source: HSBC Multimanager/Style Research. For indicative purposes only.

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Book to Price Dividend Yield Earnings Yield Value Cash Flow Yield Sales to Price EBITDA to Price Return on Equity Earnings Growth Income/ Sales Sales Growth IBES 12-Mth Growth IBES 1-Year Rev Market Beta Market Capital Momentum Short Term Momentum Med Term Debt/ Equity Foreign Sales
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Detailed multi-factor tracking helps to inform our face-to-face research interviews

Source: HSBC Multimanager/Style Research. For indicative purposes only.

Growth Momentum

30

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MultiAlpha: North America Equity Fund

Performance benchmark: Performance targets: Indicative tracking error: Investment vehicle: Key share classes: Minimum initial investment and holding: Proposed capacity: Underlying managers & weighting:

MSCI US Equity 150bps per annum net over rolling 3-5 years 3.5% HISF Luxembourg UCITS platform A class = 1.5% AMC, 1.9% TER; I class = 0.75% AMC, 1% TER USD 5,000 No initial capacity constraint Winslow Capital 20% LA Capital Management 20% Rainier 20% Aletheia 20% Cohen & Steers 20% Randeep Brar
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Lead Multimanager analyst:

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Introduction MultiAlpha North America


Strongly boutique-oriented product Managers with both focused and flexible investment processes Manager weights reflect contribution to the overall risk budget / alpha LA Capital Cohen & Steers Rainier 20% 20% 20%
LA based boutique, with $6bn aum. Quantitative driven process Adaptive and dynamic process based on factor rotation Dividend growth focused investment philosophy (relative value) Structured and differentiated research process Impressive lead portfolio manager, Rick Helm Seattle-based boutique manager, with $16bn aum Highly seasoned and stable investment team Differentiated sell discipline and execution Bottom up, fundamental approach (growth) Focused team lead by highly skilled PM, Peter Eichler Behavioural value orientation Differentiated thematic, bottom-up, investment approach Focuses on insider activity, corporate buybacks, forensic accounting etc. Minneapolis based boutique, with $3bn aum. Differentiated research process Unique portfolio construction and sell discipline
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Aletheia

20%

Winslow

20%

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MultiAlpha: North America Equity


LA Capital 20%
An independent, LA-based investment boutique that is 100% owned by employees Good at attracting and retaining staff with minimal turnover Quantitative-driven process based on historical analysis and identifying risk factors The process is both dynamic and adaptive based on factor rotation Owned by larger Cohen & Steers company Portfolio manager Rick Helm is the engine behind the process and decision making He has a strong team of 4 analysts with industry specialisations working with him Research based on the belief that dividend growers outperform over the longer term an increase in dividends being a management signal of strong future fundamentals Focusing on dividend growth rather than yield differentiates the strategy from other dividend-focused peers Seattle-based boutique manager which is 100% employee-owned and this team are well aligned to the funds The strategy has been run since 1987 by current co-PM Jim Margard and his investment team is seasoned with a proven track record of stock-picking The team adopts a bottom-up, fundamental approach (growth) to investing Valuation and target price sell and execution discipline has some differentiating elements which act as a risk control tool at the individual stock level
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Cohen & Steers

20%

Rainier

20%

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MultiAlpha: North America Equity (Contd)


Aletheia 20%
Independently-owned boutique that is 85% owned by current employees Focused and strong team lead by highly skilled PM, Peter Eichler who is a co-founder The strategy has an Absolute Return focus, which will have a low adherence to benchmark Highly-differentiated thematic, bottom-up investment approach, focusing on unconventional information This information includes insider activity (key employees buying or selling company stock), corporate buybacks, forensic accounting, etc.

Winslow

20%

A 100% employee-owned investment boutique with Large Cap Growth being its sole offering The investment team, led by 3 co-PMs have a stake (30% each) in the firm and the rest of the team have strong incentives with regards to performance Research process sees an initial quant screen resulting in a more focused universe for thorough fundamental research Highly skilled at selecting growth stocks that are quality but also offer attractive value Their unique portfolio construction (maximising best versus benchmark but also diversifying bets) and strong sell discipline (position and sector limits) offer other key advantages
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The best results can be achieved by combining managers with complementary styles, risk exposures and alpha sources
Alpha Focus
Behaviour Technical Predictive Earnings Valuation Top Down Qual

Process
Quant Into adv Proc. adv

Manager 1

Manager 2

Manager 3

Manager 4

Manager 5

Consolidated Position
Source: HSBC Multimanager/Style Research. For indicative purposes only.

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Book to Price Dividend Yield Earnings Yield Value Cash Flow Yield Sales to Price EBITDA to Price Return on Equity Earnings Growth Income/ Sales Sales Growth IBES 12-Mth Growth IBES 1-Year Rev Market Beta Market Capital Momentum Short Term Momentum Med Term Debt/ Equity Foreign Sales
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Detailed multi-factor tracking helps to inform our face-to-face research interviews

Source: HSBC Multimanager/Style Research. For indicative purposes only.

Growth Momentum

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Appendix II: Fund Performance Targets, Tracking Errors & Fees

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MultiAlpha Funds: Performance Targets, Tracking Errors & Fees


Global Equity Performance benchmark Performance targets (bps per annum net over rolling 3-5 yrs) Indicative tracking errors Investment vehicles AMC 1.50% 1.90% 2.00% 2.40% 0.75% 1.00% 0.75% 0.95% 0.00% 0.20% US$2,250m 1.50% 2.00% 2.00% 2.50% 0.75% 1.15% 0.75% 1.10% 0.00% 0.35% US$1,500m MSCI World Equity 200 Global Emerging Markets Equity MSCI Emerging Markets Equity 260 North America Equity MSCI US Equity 160 Europe Equity MSCI Europe Equity 160 Japan Equity TOPIX (TSE 1st Section) 160 Asia Pacific ex Japan Equity MSCI Asia Pacific ex Japan Equity 300

4.00%

4.00%

3.50% HISF Luxembourg UCITS platform 1.50% 1.90% 2.00% 2.40% 0.75% 1.00% 0.75% 0.95% 0.00% 0.20% No initial capacity constraint (i.e. over US$5,000m) Winslow Capital (20%) LA Capital (20%) Rainier (20%) Aletheia (15%) Cohen & Steers (25%) Randeep Brar Rahul Khasgiwale, North America Investment Director

2.50% (estimate)

4.00%

5.00%

1.50% 1.90% 2.00% 2.40% 0.75% 1.00% 0.75% 0.95% 0.00% 0.20% US$1,500m

1.50% 1.90% 2.00% 2.4.% 0.75% 1.00% 0.75% 0.95% 0.00% 0.20% US$2,000m

1.50% 2.00% 2.00% 2.50% 0.75% 1.15% 0.75% 1.10% 0.00% 0.35% US$1,500m

TER AMC

E
Share classes (and fees) Multimanager contact Client Service

TER AMC

TER AMC

TER AMC

Z
Proposed capacity with initial structure Underlying managers and strategic weight

TER

Taube Hodson Stonex Partners (40%) Longview Capital Management (30%) Spencer House (30%)

Gartmore (50%) Panagora (25%) Framlington (25%)

JOHambro Capital Management (50%) AQR (50%)

Funnex (30%) SGAM (25%) Lindsell Train (15%) TR Price (30%) Arts Masuda Christian Choi, Asia Pacific Investment Director

Resolution (40%) TT (35%) Tiburon (25%)

Lead Multimanager analyst

Ana da Maia Alasdair Prescott, EMEA Investment Director

Cara Macgregor Alasdair Prescott, EMEA Investment Director

Pascale Huard Alasdair Prescott, EMEA Investment Director

Michelle Hilliman Christian Choi, Asia Pacific Investment Director

All significant unit holders (amount to be defined) receive four physical visits per year by regional Investment Director, Multimanager, with video conferences as required on ad-hoc basis plus quarterly reporting alongside monthly reports/factsheets. Acc

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Appendix III: Fund Performance Statistics

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Simulated performance Asia pacific ex Japan


M ultiAlpha Asia relative return and tracking error
10.00 % return 8.00 Cumulative return rolling te (3yr) rolling te (<3yr) 6.00 3.00 3.50 4.00 4.50

% Return

4.00

2.50

2.00

2.00

1.50 0.00 1.00 -2.00 0.50

-4.00 Jan-08 May-00 May-01 May-02 May-03 May-04 May-05 May-06 May-07 May-08 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07

0.00

Da te

Note: Performance data shown is for a simulated portfolio. Performance streams incorporate proxy account data on the underlying managers which may in some instances differ from the precise mandate to be used within the MultiAlpha portfolio. As ever past performance should not be seen as an indication of future performance.

Tracking Error

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Simulated performance Europe


M ultiAlpha Europe relative return and tracking error
12.00 % return 10.00 Cumulative return rolling te (3yr) 8.00 rolling te (<3yr) 2.50 3.00 3.50

% Return

2.00 4.00 1.50 2.00 1.00 0.00

-2.00

0.50

-4.00 May-00 May-01 May-02 May-03 May-04 May-05 May-06 May-07 May-08 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Jan-08

0.00

Da te

Note: Performance data shown is for a simulated portfolio. Performance streams incorporate proxy account data on the underlying managers which may in some instances differ from the precise mandate to be used within the MultiAlpha portfolio. As ever past performance should not be seen as an indication of future performance.

Tracking Error

6.00

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Simulated performance Global Emerging Markets


M ultiAlpha GEM relative return and tracking error
20.00 % return Cumulative return 15.00 rolling te (3yr) rolling te (<3yr) 10.00 8.00 10.00 12.00

5.00

6.00

0.00

4.00

-5.00

2.00

-10.00 May-07 May-06 May-05 May-04 May-03 May-02 May-01 May-00 May-08 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Jan-08

0.00

Da te

Note: Performance data shown is for a simulated portfolio. Performance streams incorporate proxy account data on the underlying managers which may in some instances differ from the precise mandate to be used within the MultiAlpha portfolio. As ever past performance should not be seen as an indication of future performance.

Tracking Error

% Return

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Simulated performance Global


MultiAlpha Global Relative Performance

6 5 4 3 % Return 2 1 0 -1 -2 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Date % return Cumulative return
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Feb-08

Mar-08

Apr-08

May-08

Jun-08

Note: Performance data shown is for a simulated portfolio. Performance streams incorporate proxy account data on the underlying managers which may in some instances differ from the precise mandate to be used within the MultiAlpha portfolio. As ever past performance should not be seen as an indication of future performance.

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Simulated performance Japan


M ultiAlpha Japan relative return and tracking error
5.00 % return 4.00 Cumulative return rolling te (3yr) 3.00 rolling te (<3yr) 2.50 3.00 3.50

% Return

2.00 1.00 1.50 0.00 1.00 -1.00

-2.00

0.50

-3.00 Jan-00 May-00 Jan-01 May-01 Jan-02 May-02 Jan-03 May-03 Jan-04 May-04 Jan-05 May-05 Jan-06 May-06 Jan-07 May-07 Jan-08 May-08 Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07

0.00

Da te

Note: Performance data shown is for a simulated portfolio. Performance streams incorporate proxy account data on the underlying managers which may in some instances differ from the precise mandate to be used within the MultiAlpha portfolio. As ever past performance should not be seen as an indication of future performance.

Tracking Error

2.00

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Simulated performance North America


M ultiAlpha North America relative return and tracking error
12.00 % return 10.00 Cumulative return rolling te (3yr) rolling te (<3yr) 8.00 4.00 5.00 6.00

% Return

6.00 3.00 4.00 2.00 2.00

0.00

1.00

-2.00 May-00 May-01 May-02 May-03 May-04 May-05 May-06 May-07 May-08 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Jan-08

0.00

Da te

Note: Performance data shown is for a simulated portfolio. Performance streams incorporate proxy account data on the underlying managers which may in some instances differ from the precise mandate to be used within the MultiAlpha portfolio. As ever past performance should not be seen as an indication of future performance.

Tracking Error

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Important Information
The HSBC MultiAlpha funds are sub-funds of the HSBC International Select Fund, a Luxembourg domiciled SICAV. The Investment Adviser to the funds is HSBC Asset Management (France) who in turn appoints sub-advisers to manager portion of the fund's portfolio. As with any investment where the underlying investments are stocks and shares, the price of shares in HSBC International Select Fund and any income from it can go down as well as up, is not guaranteed, and you may not get back the amount of your original investment. Where overseas investments are held, the rate of exchange may cause the value of such investments to go down as well as up. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in established markets. You should view this investment as medium to long term, and should plan to keep it for at least five years. Any decision to invest in the HSBC International Select Fund should be based on the content of the Prospectus, simplified prospectus and most recent annual and semi-annual reports, which can be obtained upon request free of charge from HSBC Global Asset Management (UK) Limited or the local distributors. Investors and potential investors should refer to the Prospectus for general risk factors and the Simplified Prospectus for specific risk factors. This document is issued by HSBC Global Asset Management (UK) Limited, 8 Canada Square, Canary Wharf, London, E14 5HQ, UK. Authorised and regulated by the Financial Services Authority and registered as number 122335. Copyright. HSBC Global Asset Management 2009. All Rights Reserved. This product is marketed in a sub-distributing capacity on a principal to principal basis by the HSBC Global Asset Management MENA, a unit that is part of HSBC Bank Middle East Limited, PO Box 66, Dubai, UAE, which is incorporated and regulated by the Jersey Financial Services Commission. Services are subject to the Banks terms and conditions. HSBC Bank Middle East Limited is a member of the HSBC Group. The information provided has not been prepared taking into account the particular investment objectives, financial situation and needs of any particular investor. As a result, investors using this information should assess whether it is appropriate in the light of their own individual circumstances before acting on it. The information in this document is derived from sources believed to be reliable, but which have not been independently verified. However, HSBC Bank Middle East Limited makes no guarantee of its accuracy and completeness and is not responsible for errors of transmission of factual or analytical data, nor shall HSBC Bank Middle East Limited be liable for damages arising out of any persons reliance upon this information. All charts and graphs are from publicly available sources or proprietary data. The opinions in this document constitute the present judgment of the issuer, which is subject to change without notice. This document is neither an offer to sell, purchase or subscribe for any investment nor a solicitation of such an offer. This document is intended for the use of institutional and professional customers and is not intended for the use of private customers. This document is not intended for distribution in the United States of America or to US persons. This document is intended to be distributed in its entirety. No consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient. Any transaction will be subject to HSBC Banks Terms of Business. 16138-HSB1407a/ME/0109

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