Want to know more?

• Read the Investment Strategy for HSBC World Selection here
• Find out what sets HSBC World Selection apart here
• Find out how you can invest here
• Read the terms and conditions here
• Registration of HSBC World Selection Prospectus - click here

Regular Investment option

We have just launched a regular investment option for HSBC World Selection Funds.

This new feature allows investors to set up regular monthly investments into a Fund in which they are invested. For investors with medium to high risk tolerance and long term financial objectives (such as wealth accumulation or children's education), regular investments with the potential benefits of dollar-cost-averaging could be rewarding for long term investors.

(Dollar- cost-averaging involves continuing to buy units so as to potentially reduce the average cost of entry in the long run.)

Investment Strategy

HSBC World Selection is comprised of three separate Funds, which invest primarily in shares of a particular sub-fund of HSBC Portfolios (an investment company incorporated in the Grand Duchy of Luxembourg).

Each Funds investment into a sub-fund provides exposure to an investment portfolio, which aims to select the best-in-class funds and managers. The investment advisers of the sub-funds' may appoint external fund managers to manage part of the money in the portfolio. This is known as a manager of managers approach. These managers are handpicked with the investment objective of delivering capital growth through investment in a broad range of asset classes across diverse global markets.

Investment will be primarily in global equity or bond markets and may also include exposure to hedge fund strategies, private equity, real estate and commodities. The sub-funds will also hold passive instruments such as Exchange Traded Funds (ETFs) when it is considered these present a better risk/reward trade off than actively managed funds.

The sub-funds are managed by HSBC Investment Funds (Luxembourg) S.A., part of HSBC Global Asset Management, which is amongst the largest managers of managed funds worldwide.

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What sets HSBC World Selection apart?

"Don't put all your eggs in one basket," is probably the oldest piece of advice for investors. But identifying the asset classes that are going to outperform and putting them into a right mix can be a very challenging task - especially for private investors.

Diverse asset classes: Asset classes tend to perform differently during market phases and economic cycles. HSBC World Selection gives you access to portfolios that have a wide range of investment types including traditional ones such as bonds and equities, as well as modern ones such as private equity, hedge funds and commodities, many of which would otherwise not be readily accessible to a private investor.

Diverse geographies: HSBC World Selection gives you access to portfolios that invest in more geographic locations than most conventional funds, supplementing investments in developed financial markets with those in potentially exciting emerging economies.

Global expertise with local knowledge: The world consists of many different time zones and with the development of the global financial industry, many capital cities now contain a stock exchange. This means that at any hour of the day, there is an exchange open somewhere in the world. HSBC Global Asset Management's team of investment professionals are situated across the globe and can maintain coverage and react to changing markets to help ensure the portfolios remain consistent with their objectives.

Each HSBC World Selection Fund is a Portfolio Investment Entity (PIE):
The benefit of being a PIE is the tax treatment of the income created by the fund. In a PIE, income is allocated to investors and taxed at the investor's Prescribed Investor Rate (PIR) with a cap of 28%. This is of benefit to those investors on a marginal tax rate of 30% and 33%. For more information about PIEs and PIRs, including a guide to help you work out your PIR, please contact Inland Revenue or or visit www.ird.govt.nz

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How do I invest?

HSBC World Selection Funds are only available to HSBC Premier customers. Eligibility criteria apply to HSBC Premier.

The minimum investment for each fund is NZ$10,000.

To find out more about how you can invest and to request a copy of our current investment statement contact us today.

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Terms and conditions

Units in the HSBC World Selection Funds are distributed by HSBC and are issued by HSBC Investments New Zealand Limited. The terms and conditions set out in the HSBC World Selection Investment Statement and Prospectus apply, which are available free of charge at any HSBC office.

Units in the Funds do not represent bank deposits or other liabilities of HSBC and are subject to investment risk, including possible delays in repayment and loss of principal invested. Where overseas investments are held, the rate of exchange may cause the value of such investments, and the price of the Funds' units, to go down as well as up. The sub-funds in which the Funds invest may invest in emerging markets, which are by their nature higher risk and potentially more volatile than those inherent in established markets. No person guarantees HSBC Investments New Zealand Limited or the capital value or performance of the Funds.

The Funds will be priced in New Zealand dollars and all applications and redemptions will be in New Zealand dollars. The Funds will report net asset values and pay most of its expenses in New Zealand dollars. The purchase and sale of shares in the Sub-Fund, which will be the Fund's primary investment, will be in US dollars. The Funds are not currently hedged for currency fluctuations. Accordingly, foreign exchange rate fluctuations will impact on the daily Unit Price of the Funds and therefore your returns.

Eligibility criteria apply to HSBC Premier and minimum investment criteria apply. Investment Adviser Disclosure Statements are available on request free of charge.

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Registration of HSBC World Selection Prospectus

On 23 December 2011, HSBC Investments New Zealand Limited registered an instrument to amend the prospectus for the offer of units in the HSBC World Selection dated 23 December 2011. You can download a copy of the instrument to amend the prospectus, as well as the amended prospectus, from the Companies Office website at www.business.govt.nz/companies by searching under the documents on HSBC Investments New Zealand Limited's file.

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