HSBC MultiAlpha Global Real Estate Equity Fund Fund Information Sheet August 2010 For Professional Advisers only
Why choose HSBC Multimanager? 1. Our local research network. To truly discover the best for our clients, we need to be where the investment talent is to be found on the ground. This is why our extensive research network has its foundations in the four corners of the globe through our local presence around the world. Ultimately this presence encourages understanding, manager discovery and informs our monitoring. 2. Investment rigour. It is the robustness and integrity of our research and portfolio management process that drives how we establish and continuously stress test the construction of our funds and chose managers, ensuring that we maintain a consistency of focus on the achievement of positive risk adjusted results. 3. Transparency and risk management. Our ongoing research gives our analysts day-to-day familiarity with the managers we invest in. The use of both qualitative and quantitative monitoring, both on a formal and informal basis gives us a multiple lens approach to truly understand our managers and their portfolios. Our process is designed to ensure that the managers who are strong enough to be selected continue to invest in a way that remains consistent with their expertise Why consider the HSBC MultiAlpha Real Estate Equity Fund? Multimanager approach adds value. When it comes to investing in global property we believe that no single manager can claim to be an expert in all countries and sectors everywhere in the world. We therefore believe the Multimanager approach offers an attractive solution by providing access to a range of local specialist expertise. Appointment of best in breed on a regional basis. By appointing managers with a strong local presence, strong stock selection capabilities and an established track record on a regional basis we believe the fund is able to deliver superior investment returns over the course of a full real estate cycle. Flexible portfolio through HSBC real estate intelligence. The Multimanager team s real estate market experience and research capability is used for tactical asset allocation where there is clear mispricing between regions. Asset allocation and diversification benefits. The fund can be used as a stand-alone fund or as an actively managed building block in an asset class that offers a diverse and growing range of investment opportunities. The fund allows investors with smaller monetary sums the means to achieve portfolio diversification. Access to both modern and traditional approaches. These managers might normally only be available to institutional investors (due to the size of the investment required) or they are investment boutiques that are off the beaten track. Why focus on Global Real Estate Equity? Large and diversified opportunity set. The continued evolution and expansion of listed real estate markets results in a wide range of investment opportunities across Asia Pacific, North America and Europe. Liquidity and allocation flexibility. Unlike direct real estate there are no lumpy lot sizes and it is easy to amend portfolio weights on a daily basis. Listed real estate a good proxy for direct real estate. Over the long run returns of real estate securities are driven by the underlying direct real estate markets. This characteristic provides attractive diversification benefits to wider equity and bond markets. Cost and tax efficiency. The fund offers diversified exposure across countries and real estate sectors with lower transaction costs and transfer taxes than investment in direct real estate The investment strategy A pragmatic approach. We assume that markets will always be volatile. We focus on qualitative research and achieving long-term investment goals rather than being driven by fashions or fads or chasing short-term performance trends. A blend of the best managers available. A selection of investment firms with a detailed understanding of both direct and listed real estate markets and extensive investment experience. This selected team allows the fund to perform in a wide variety of market conditions. Regional managers unconstrained by a style bias. The Multimanager team believes that the selected investment managers provide high quality, specialist research and analysis which aid their investment decisions. The managers are benchmark aware rather than benchmark constrained and not bound by a particular investment style. Investment opportunity in global listed real estate. The fund aims to achieve a total return by investing predominantly in a well-diversified portfolio of equity and equity equivalent securities issued by companies related to the real estate industry. This includes Real Estate Investment Trusts ( REITs ).
About the specialist managers selected Urdang: The North American portfolio is managed by Urdang Capital Management which is a wholly owned subsidiary of BNY Mellon. Urdang is focused exclusively on investment in public and private real estate and the senior investment team members have been working together since 1997. The strategy is managed by Dean Frankel, an experienced fund manager whose knowledge of US and Canadian companies is extensive. Frankel oversees the research process and analysts take strong ownership for macro/stock research. The proven investment process identifies low-relative price opportunities and recognizes that real estate securities are not simply stocks, or real estate, but hybrid financial investments. Active sector and stock rotation seeks to ensure that the strategy is suited to the different phases of the real estate cycle. European Investors Incorporated: The Asia Pacific portfolio is managed by European Investors (EII). EII was founded in 1983 and is a private partnership of seasoned investors. The co-fund managers, Jim Rehlaender and Suang Eng Tsan, are experienced and have a successful track record of investing in listed real estate across the Asia Pacific region. Stock selection is at the core of the approach and the process incorporates both macro and micro inputs to identify undervalued securities. Both managers display an intimate knowledge of management teams and local real estate market trends. The portfolio exhibits a preference for well-capitalised businesses with strong business models and shareholderfocused management that have proven execution. The end result is a focused portfolio of high conviction ideas. Aviva Investors: The European portfolio is managed by Aviva Investors. Aviva Investors is one of the largest investors in real estate in Europe and the listed team benefits from the expertise of the direct real estate fund management, acquisitions and research teams. We regard Paul van de Vaart, the lead portfolio manager, as a skilled stock picker and he is well-supported by a team of talented analysts. The European strategy seeks superior returns via a disciplined stock driven approach and the explicit cost of equity analysis allows for easy comparison of risk factors and return drivers between companies. A ruthless sell discipline is designed to ensure that stocks are sold that are expensive compared with alternatives or carry unacceptable risks. Underlying Manager Breakdown (as at 30 June 2010) European Investors 41.1% Fund details (as at 30 June 2010) Fund manager ISIN code Base currency *The Benchmark is used for internal performance measurement only. Fund manager Aiko-Malte Sauer Aviva 14.9% Aiko-Malte Sauer LU0487302134 USD Fund size in millions USD 59.1 NAV (distribution shares) USD 9.05 Minimum investment horizon 5 years Launch date 29 April 2010 Benchmark 100% FTSE EPRA/NAREIT Developed Net Total Return Index* Aiko-Malte joined HSBC in September 2006 and is responsible for manager research and portfolio construction within the Real Estate Multimanager team. Aiko-Malte is also the Deputy Fund Manager for the HSBC Open Global Property Fund. Prior to joining HSBC, Aiko-Malte was an analyst at INVESCO Real Estate. His key responsibilities included forecasts and strategic analysis of European real estate markets. He started his career in the Markets Team of Debenham Tie Leung (DTZ) where he was responsible for the delivery of consultancy projects identifying real estate investment opportunities in Germany and Asia Pacific. Aiko-Malte has 7 years relevant real estate experience. Urdang 44% Offshore yachting is recognised as one of the most exciting and challenging sports in the world and the racing calendar includes events that involve traversing the globe and can take up to nine months to complete. Success relies upon the skills and experience of the skipper, but also a well-drilled crew, each of which is highly trained to fulfil a specialist role to ensure the optimal performance can be achieved.
About HSBC Multimanager Our local research network. The value of global research is often underestimated because there are not enough good fund managers around who exhibit a consistently defined skill when making investment decisions. The world s truly outstanding investment managers are to be found in far flung places because technology has improved information flows making it possible to be based anywhere in the world. To truly discover the best for our clients, we believe that we need to be where the investment talent is to be found on the ground. We are committed to research and have invested heavily in our network of 40 investment specialists situated in 12 locations around the globe.ultimately this presence encourages understanding, aids manager discovery and informs our monitoring. Investment rigour. It is the robustness and integrity of our research and portfolio management process that drives how we establish and continuously stress test the construction of our funds and chosen managers, ensuring that we maintain a consistency of focus on the achievement of positive risk adjusted results. Every one of the strong managers we invest in is subject to ongoing assessment to justify their continued inclusion relative to the new and exciting managers and investment opportunities uncovered by our research process. Transparency and risk management. Our ongoing research gives our analysts day-to-day familiarity with the managers we invest in. To know our managers inside out we use both qualitative and quantitative monitoring, both on a formal and informal basis to give us a multiple lens perspective. Our approach fosters a stock level understanding of the dynamics within our portfolios and is designed to ensure that the managers who are strong enough to be selected continue to invest in a way that remains consistent with their expertise. We must not only identify good managers but specifically those whose approaches and sources of skill are differentiated. HSBC Multimanager team Philip Glaze Global Chief Investment Officer and Global Head of Research EMEA Multimanager Raphael Sobotka Chief Investment Officer, Europe Alasdair Prescott: alasdair.prescott@hsbc.com Tel. + 44 (0) 207 024 0682 Asia Multimanager Michelle Hilliman Head of Multimanager, Asia Pacific/ Head of Business Development Emily Ho: emily.p.y.ho@hsbc.com.hk Tel. +852 2284 1165 Americas Multimanager Lane Prenevost Head of Multimanager, Americas Rahul Khasgiwale: rahul_khasgiwale@hsbc.ca Tel. +1 (1) 4416 868 1556 Juan Pablo Scasserra: juan.scasserra@hsbc.com HSBC MultiAlpha range next steps You can contact our Global Funds Help Desk team on +44 (0) 20 7992 4172 or alternatively e-mail us at multialpha.services@hsbc.com Lines are open from 9am-5pm Monday to Friday (excluding public holidays). Contact details for the transfer agency in Luxembourg, who undertake all administration of the HSBC MultiAlpha Fund range are: RBC Dexia Investor Services SA 14, rue Porte de France L-4360 Esch-sur-Alzette Grand Duchy of Luxembourg Telephone Number 00 352 2605 9553 Fax Number 00 352 2460 9500
HSBC International Select Funds (HISF) are sub-funds of HSBC International Select Funds, a Luxembourg based SICAV (Société d Investissement á Capital Variable) regulated by the CSSF. The funds mentioned in this document may not be registered for sale or available in all jurisdictions. For available funds please contact your local HSBC office. HSBC International Select Funds cannot be sold by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such an offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation. All applications are made on the basis of the current HSBC International Select Funds Prospectus, simplified prospectus and most recent annual and semi-annual reports. These can be obtained on request and free of charge from HSBC Global Asset Management (UK) Limited or the local distributors. The value of investments may go down as well as up and you may not get back the full amount you invested. Where overseas investments are held the rate of exchange may cause the value of investments to go down as well as up. Markets in some countries can be described as emerging markets. Some of these may involve a higher risk than where an investment is within a more established market. Where a sub-fund invests predominately in one geographical area, any decline in economic conditions may affect prices and the value of underlying investments. The securities representing interests in the HSBC International Select Funds have not been and will not be registered under the US Securities Act of 1933 and will not be offered for sale or sold in the United States of America, its territories or possessions and all areas subject to its jurisdiction, or United States person, except in a transaction which does not violate the Securities Law of the United States of America. This document was produced by HSBC Global Asset Management (UK) Limited for distribution in the Middle East and North Africa region by HSBC Global Asset Management MENA, who are marketing the product in a sub-distributing capacity on a principal to principal basis. HSBC Global Asset Management MENA, is 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 Bank s terms and conditions. HSBC Bank Middle East Limited is a member of the HSBC Group. HSBC Global Asset Management (UK) Limited, 8 Canada Square, Canary Wharf, London, E14 5HQ, UK, is authorised and regulated in the United Kingdom by the Financial Services Authority and registered as number 122335. Copyright. HSBC Global Asset Management 2010. All Rights Reserved. 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 person s 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 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 Bank s Terms of Business. 18914/ME/0810