# Objectives and Investment Policy
## Investment Objective:
The Fund aims to provide long term capital growth by investing in a portfolio of smaller company shares of Asian (excluding Japan) shares, while promoting environmental, social and governance (ESG) characteristics.
The Fund promotes ESG characteristics within the meaning of Article 8 of SFDR. More information on HSBC Global Asset Management’s responsible investing policies is available at www.assetmanagement. hsbc.com/about-us/responsible-investing/policies.

## Investment Policy:
In normal market conditions, the Fund will invest at least 90% of its assets in shares or similar securities of companies that are based in Asia (excluding Japan), including both developed markets and emerging markets.

## The Fund will invest at least 70% of its assets in smaller sized companies. These companies are defined as being in the bottom 25% by market value in the Asia ex Japan universe.
The Fund includes the identification and analysis of a company’s ESG Credentials as an integral part of the investment decision making process to reduce risk and enhance returns. The Fund will not invest in companies with involvement in specific excluded activities, such as, companies involved in the production of controversial weapons and tobacco; companies with more than 10% revenue generated from thermal coal extraction; and companies with more than 10% revenue generated from coal-fired power generation. The Fund conducts enhanced due diligence on companies that are considered to be non- compliant with the UN Global Compact Principles. Please refer to the Prospectus for more details on ESG Credentials and Excluded Activities.

## The Fund may invest up to 50% in China A and China B-shares. For China A-shares, up to 50% through the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect, up to 30% in

## China A-shares Access Products (CAAPs) and up to 10% in CAAPs issued by any single issuer.

## The Fund may invest up to 10%of its assets in other funds and may invest up to 15% of its assets in Real Estate Investment Trusts (REITs).
The Fund may also invest in derivatives and use them for efficient portfolio management purposes, hedging and cashflow management purposes. Derivatives will not be used extensively for investment purposes. Derivatives may also be embedded in other instruments used by the Fund.


## The Fund may enter into securities lending transactions for up to 29% of its assets. However, this is not expected to exceed 25%.


## The reference currency of the Fund is USD. The reference currency of this share class is USD.


## The Fund is actively managed and does not track a benchmark. The Fund has an internal or external target to a reference

## benchmark, MSCI AC Asia ex Japan Small Cap Net.

The Investment Advisor will use its discretion to invest in securities not included in the reference benchmark based on active investment management strategies and specific investment opportunities. It is foreseen that a significant percentage of the Fund's investments will be components of the reference benchmark. However, their weightings may deviate materially from those of the reference benchmark.


## Any deviations with respect to the benchmark are monitored within a comprehensive risk framework, which includes monitoring at sector & country level.


## The deviation of the Fund’s performance relative to the benchmark is also monitored, but not constrained, to a defined range.


## Income is reinvested.


## You may sell your investment on most working days.


## Recommendation: this Fund may not be appropriate for investors who plan to withdraw their money within a period of 5 years.

Translation (ENES, 2022-10-10):
# Objetivos y Política de inversión
### Objetivo de inversión:
El Fondo tiene como objetivo proporcionar un crecimiento del capital a largo plazo invirtiendo en una cartera de acciones de sociedades asiáticas de menor tamaño (excepto Japón), al tiempo que promueve características ambientales, sociales y de gobernanza (ESG).
El Fondo promueve las características ESG, según el significado que se atribuye a este término en el artículo 8 del SFDR. Consulte las políticas de inversión responsable de HSBC Global Asset Management en www.assetmanagement.hsbc.com/about-us/ responsible-investing/policies.

### Política de inversión:
En condiciones normales de mercado, el Fondo invertirá al menos un 90 % en acciones o valores similares de sociedades con sede en Asia (excepto Japón), tanto de mercados desarrollados como emergentes.
El Fondo invertirá al menos el 70 % de sus activos en sociedades de menor tamaño. Según su definición, estas sociedades se corresponden con el 25 % con menor valor de mercado del universo de Asia (excepto Japón).
El Fondo incluye la identificación y el análisis de las Credenciales ESG de una sociedad como parte del proceso de toma de decisiones de inversión para reducir el riesgo y mejorar la rentabilidad. El Fondo no invertirá en sociedades que participen en actividades excluidas específicas, como aquellas dedicadas a la producción de armas controvertidas y tabaco, y aquellas con más del 10 % de ingresos generados a partir de la extracción de carbón térmico o con más del 10 % de ingresos procedentes de la generación de electricidad a partir de carbón. El Fondo lleva a cabo una diligencia debida mejorada en sociedades que se considere que infringen los Principios del Pacto Mundial de las Naciones Unidas. Consulte el Folleto informativo para obtener más información sobre las Credenciales ESG y las Actividades excluidas.
El Fondo puede invertir hasta el 50 % en acciones A de China y acciones B de China. Con respecto a las acciones A de China, puede invertir hasta el 50 % a través del Shanghai-Hong Kong Stock Connect y el Shenzhen-Hong Kong Stock Connect, hasta