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HSBC Asset Management

157Year History in Asia Pacific USD AUM as at December 2023

◆ Bank founded in 1865 to finance trade between Asia and the West
◆ Today one of the world’s largest banking and financial services ◆ 100% owned by HSBC Group and Dedicated Asset Management arm
organisations
◆ Strong heritage of successfully connecting local clients to global investment
opportunities
More than 40 million
customers bank with us
Locations globally with major regional offices
Today, HSBC has presence in 62
countries and territories worldwide

We employ 233,000 Dedicated investment professionals

people around the world
◆ Growth strategy geared to Asia, Emerging Markets and Singapore
representing our South-East Asia Hub

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Best
Infrastructure
Debt Strategy
2020 2022

Alternatives
Investment
Provider of the
Year

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 Michael Cross

Grade

Samet (US) Dunnett

Jason Moshos (US) Ricky Liu (US) Nick Ventham Jaymeson Kumm Paul Mitchell Joseph Tomic (US)
Viral Desai (US) Hugo Novaro
Scott Goldsmith (US) Justin Lo Amanda LaMarca
Mohamed Siddeeq (UK) Scott Davis
Philippe Igigabel (EU) Cedric Tchaban Julio Obeso Julian Moore
Oliver Boulind (UK)
Sophie Sentilhes (EU) Matthew Kimberly Caroline Kearny Chris Bruederlein
Richard Smith (UK)
Aline Thiel (EU) + 6 dedicated analysts Tadashi Sueyoshi Jai Lakhani
Jean Olivier Neyrat (EU)
Taras Pushak
Karen Benouaich (EU) Max Baumann (EU)
Kerstin Terhardt (EU) Alfred (Asia)
Alfred Mui (Asia) Alex Choi (Asia)
Ming Leap (Asia)

Strategy

Hartpence Garrique (EU)

Head of Fixed Income Quantitative
Research Ernst Osiander (EU)

Leonie Assouline Octavia Lepas (EU)

Marjolaine Combier
Qiao Mu

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 Internal Fundamental ESG Assessment

Bottom up ESG credit analysis Enhanced Due Diligence Proactive engagement Validation of ESG view

Exclusions and screening methods of ESG and lower carbon criteria

Norms-based screening Best in class Momentum

Source: HSBC Asset Management.

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 ◆ Refining the investment universe
▪ Overall Investment Universe

Exclusions and screening methods of ESG

Negative Screening and Best in Class screening
remove the worst ESG offenders
▪ Back-tested to help increase our ability to Negative Screening
outperform the benchmark Exclusion of the issuers involved in Controversial Weapons, Tobacco, proved
alleged breaches of UNGC principles + “Sin Stocks” + companies with part of
revenues coming from Thermal Coal >10%

and lower carbon criteria

◆ Ownership of ESG data
▪ Recognition that 3rd party ESG data may be
backwards looking
▪ Ability to override ESG scores when in
Best in Class (ESG; Carbon)
Favoring issuers with High and/or /improving ESG fundamentals
disagreement*
and low/improving carbon footprints based on industry data
(MSCI, Trucost, etc.).

Internal Fundamental
ESG Assessment
Portfolio Manager and Analyst Validation
• Engagement with issuers
• Approval/disapproval with 3rd party scores
• ESG improvers/contractors
• Inclusion of off-benchmark positons

*Up to 30% of the portfolio in adherence with a specific override process. See Appendix for details.
Source: HSBC Asset Management

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• • •
• Economic/Macro trends • Relative value vs other asset • Fund flows
• Regional outlooks segments • Monetary policy

• • spreads of issue •
• Financial profile • Spread to similar bonds • Liquidity
• ESG practices • Call features
• Sector views

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Dedicated Client Coverage Team
Client Onboarding
◆ Legal Documentation: IMA, POA, Custodian links, PLAs, Investment Guidelines
Senior Client Executive for LPDP ◆ Operations: KYC, Accounts Setups, Guidelines coding setups, List of permissible instruments,
Edith Lin, Head Institutional Sales SEA Fee billing and invoicing process, Systems setups and accesses
(Singapore) ◆ Reporting calibration prior to mandate launch

Senior Client Account Manager Investment review meetings and Access to PMs
◆ Quarterly review meetings focused on portfolio performance, positioning and strategy,
Daphne Cheo, Head of Client Services
investment pipeline, market review & outlook
◆ Bespoke Reporting and adaptation to client requirements
◆ Ad hoc client meetings as required with LPDP’s investment leadership teams

Dedicated Client Servicing Team

Value add support from dedicated key specialist functions:
Evelyn Ng, Client Services Manager
◆ Dedicated and Specialised Legal Team, experienced in structuring private debt and
infradebt documentation
◆ Independent risk & compliance function
◆ Structuring and Client Segment Team with specific insurance, regulatory, capital and
Pauline Chua, Client Services Manager liability management experience
◆ Specialist Infrastructure Forum made up of sector specialists providing market insights and
intelligence and an avenue into HSBC’s unrivalled sector coverage
◆ Dedicated Operations team

Fully Dedicated Servicing Team at every step of the way

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Important information

For institutional investor and financial advisor use only.

Not for further distribution.
Risk Considerations. There is no assurance that a portfolio will achieve its investment objective or will work under all market conditions. The value of investments may go down as well as up and you may
not get back the amount originally invested. Portfolios may be subject to certain additional risks, which should be considered carefully along with their investment objectives and fees.
• ESG Investing Risk: The use of ESG criteria in the Fund’s investment process may cause the Fund to forgo investment opportunities available to other funds that do not use these criteria, or to increase
or decrease its exposure to certain sectors or types of issuers, which may negatively impact the Fund’s relative performance as compared to non-ESG Funds. Investing on the basis of ESG criteria is
qualitative and subjective by nature and there can be no assurances that the process utilized the Adviser will enable the Fund to meet its investment objectives
• Exchange rate risk Changes in currency exchange rates could reduce or increase investment gains or investment losses, in some cases significantly.
• Foreign and emerging markets. Investments in foreign markets involve risks such as currency rate fluctuations, potential differences in accounting and taxation policies, as well as possible political,
economic, and market risks. These risks are heightened for investments in emerging markets which are also subject to greater illiquidity and volatility than developed foreign markets.
• High Yield. Investments in high yield securities (commonly referred to as “junk bonds”) are often considered speculative investments and have significantly higher credit risk than investment grade
securities. The prices of high yield securities, which may be less liquid than higher rated securities, may be more volatile and more vulnerable to adverse market, economic or political conditions.
• Asset-backed securities (ABS) are bonds that are created from various types of consumer debt. They are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse
economic developments.
• Counterparty risk The possibility that the counterparty to a transaction may be unwilling or unable to meet its obligations.
• Liquidity risk is the risk that a Fund may encounter difficulties meeting its obligations in respect of financial liabilities that are settled by delivering cash or other financial assets, thereby compromising
existing or remaining investors.
• Operational risk may subject the Fund to errors affecting transactions, valuation, accounting, and financial reporting, among other things.
• Derivatives risk Derivatives can behave unexpectedly. The pricing and volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of their underlying reference(s),
instrument or asset.
• Interest rate risk When interest rates rise, bond values generally fall. This risk is generally greater the longer the maturity of a bond investment and the higher its credit quality.
• Default risk The issuers of certain bonds could become unwilling or unable to make payments on their bonds.
• Credit risk A bond or money market security could lose value if the issuer’s financial health deteriorates.
• Investment fund risk Investing in other funds involves certain risks an investor would not face if investing in markets directly. Governance of underlying assets can be the responsibility of third-party
managers.
• CoCo bond risk Contingent convertible securities (CoCo bonds) are comparatively untested, their income payments may be cancelled or suspended, and they are more vulnerable to losses than
equities and can be highly volatile.

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