HSBC GIF
Euroland Value
A Eurozone large-cap Equity fund with a “Value” approach
The HSBC GIF Euroland Value fund is a “Value” fund. It aims to provide long-term total return by investing in a portfolio of Eurozone equities, while promoting Environmental, Social and Governance (ESG) characteristics within the meaning of Article 8 of SFDR1.
The fund is actively managed to outperform the MSCI EMU (NR EUR ) indicative benchmark over the medium to long term.
Excluded activities / restricted activities : weapons, thermal coal extraction, coal-fired power generation, tobacco, companies which are non-compliant with the UN Global Compact Principles…2
We're pleased to share with you an interview on the attractiveness of value with our experts Pascal Pierre - Head of European Equities and Jeanne Follet - Lead Portfolio Manager of Euroland Value funds at HSBC Asset Management.
Focus on HSBC GIF Euroland Value
Past performance is no guarantee of future returns. The return, the value of money invested in the fund may become negative as a result of price losses and currency fluctuations. There is no guarantee that all of your invested capital can be redeemed. The performances are displayed gross of fees. The application of the fees will have the effect of reducing the performances presented.
1. SFDR = Sustainable Finance Disclosure Regulation. Article 8 Product = A financial product promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices.
2. The sub-fund will not invest in equities issued by companies with specified involvement in specific excluded activities. Excluded Activities and specified involvement are proprietary to HSBC and include, but are not limited to:
- Companies involved in the production of controversial weapons or their key components. Controversial weapons include but are not limited to anti-personnel mines, depleted uranium weapons and white phosphorous when used for military purposes. This exclusion is in addition to the banned weapons policy
- Companies involved in the production of tobacco
- Companies with more than 10 per cent revenue generated from thermal coal extraction and do not have a clearly defined, credible plan to reduce exposure to below 10 per cent
- Companies with more than 10 per cent revenue generated from coal-fired power generation and do not have a clearly defined, credible plan to reduce exposure to below 10 per cent. Please refer to the prospectus for more information
3. Source: MSCI as at end of June 2023
Investment philosophy and approach
 Our team applies relative value analysis to invest in a wide range of listed companies so long as their valuations are low relative to their structural level of profitability. |
 Then we decompose profitability into key components (asset turnover, margins, leverage and earnings quality), and integrate ESG criteria across time and versus peers. |
 The sum of this analysis results in a high conviction portfolio, delivering results consistent with its strategy and goals, namely the capturing of value’s upside while limiting its downside. |
 Because of our bottom-up approach, the strategy’s geographical and sectorial biases mainly result from stock selection. |
 Portfolio construction seeks to maintain adequate diversification and a sufficient level of relative risk (including ESG). Stock selection and weighting in the portfolio are based on conviction in profitability dynamics and the valuation catch-up potential over the medium-term. |
Stable process with an experienced investment team
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20+years industry |
High conviction approach |
Fundamental analysis |
Stable and proven |
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Performance behavior in up and down markets
The track record demonstrates the consistency of our approach
Cumulative performance (gross of fees)
From 30/09/20041 to 30/06/2023 (100 = 30/09/2004)
*Please hover or click the image to view Performance (gross of fees) chart
Main risks : Capital loss risk, Equity risk, Discretionary Management
Past performance is no guarantee of future returns. Future returns will depend inter alia on market developments, the fund manager’s skill, the fund’s level risk and management costs and if applicable subscription and redemption costs.
The return, the value of money invested in the fund may become negative as a result of price losses and currency fluctuations. There is no guarantee that all of your invested capital can be redeemed. Unless stated otherwise, inflation is not taken into account.
The performances are displayed gross of costs. The application of the fees will have the effect of reducing the performances presented.
- Since September 2004, the fund has been following the profitability and valuation investment process
- Index given for comparative and illustrative purposes only. The fund has no official benchmark, its performance may differ materially from that of the benchmark
Source: HSBC Asset Management, MSCI. Performance in EUR, gross of fees. For illustrative purposes only.
Fund details
Legal Form |
Sub-fund of Luxembourg UCITS - HSBC Global Investment Funds |
|---|---|
Recommended investment horizon |
Minimum 5 years |
Launch Date |
04 April 2003 |
Base Currency |
Euro |
ISIN Codes |
AC: LU0165074666 (equivalent to the “retail” share class) |
Ongoing charge (max.) |
Management fees: 1.50% (A Share Class) | 0.75% (I & B Share Class) |
Performance Fees |
None |
Subscription/Redemption Fees |
5.00% max. / None |
Minimum Initial Investment |
A & B: USD 5,000 or EUR equivalent |
Share Type |
Accumulation (C) or Distribution (D) |
Publication of Net Asset Value |
www.assetmanagement.hsbc.fr |
Active fund |
The fund is actively managed |
Swing price and Gates1 |
Yes |
SFDR (Sustainable Finance Disclosure Regulation) |
Article 8: The product promotes environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices even if this is not its central point, or the central point of the investment process. |
Source: HSBC Asset Management. For illustrative purposes only.
- The fund uses the swing principle calculation method which determines the net asset value of the fund. Swing pricing allows investment funds to pay the daily transaction costs arising from subscription and redemptions by incoming and outgoing investors. The aim of swing pricing is to reduce the dilution effect generated when, for example, major redemptions in a fund force its manager to sell the underlying assets of the fund. These sales of assets generate transaction costs and taxes, also significant, which impact the value of the fund and all its investors.
The fund has a redemption threshold (gate), the level at which the manager of an undertaking for collective investment in transferable securities can stagger the redemption of securities instead of proceeding immediately
Characteristics and weightings are for illustrative purposes only, are not guaranteed and are subject to change over time, and without prior notice, taking into account any changes in markets.
The information contained above does not constitute a commitment from HSBC Asset Management and is subject to change without prior notice. For information purposes only. Before subscription, investors should refer to the Key Information Document (KID) of the fund as well as its complete prospectus. For more detailed information on the risks associated with this fund, investors should refer to the prospectus of the fund. Please note that if the base currency of the share class is different from the currency of the Member State where the client is resident, variations in exchange rates between currencies can have a significant impact on the performance of the products presented and the costs. Investments denominated in a currency other than your home currency may increase or decrease in value, solely due to changes in currency exchange rates that apply.
Key risks
- Capital loss risk: It is important to remember that the value of investments and any income from them can go down as well as up and is not guaranteed
- Equity risk: Funds that invest in securities listed on a stock exchange or market could be affected by general changes in the stock market. The value of investments can go down as well as up due to equity markets movements
- Discretionary Management: Discretionary management is based on anticipating the evolution of different markets and securities. There is a risk that the fund will not be invested at any time in the most efficient markets and securities.
SRI = 4/7. SRI (Summary Risk Indicator) is an overall indicator of the product risk level. The scale varies from 1 (least risky) to 7 (most risky). Historical data may not be a reliable indication for the future. The rating is not guaranteed to remain unchanged and the categorisation may shift over time. The lowest rating does not mean a risk-free investment. Do not run any unnecessary risk. Read the Key Information Document
Important information
HSBC GIF Euroland Value is a sub fund of HSBC Global Investment Funds, a Luxemburg domiciled SICAV. Before subscription, investors should refer to Key Information Document (KID) of the fund as well as its complete prospectus. For more detailed information on the risks associated with this fund, investors should refer to the complete prospectus of the fund. The shares of HSBC Portfolios have not been 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 to United States Persons. Shares of the Company may not be offered or sold for sale or sold to any "U.S. Person within the meaning of the Articles of Incorporation, i.e. a citizen or resident of the United States of America (the "United States"), a partnership organized or existing under the laws of any state, territory or possession of the United States, or a corporation organised or existing under the laws of the United States or of any state, territory or possession thereof, or any estate or trust, other than an estate or trust the income of which from sources outside the United States is not includible in gross income for purposes of computing United States income tax payable by it.
The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain for making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided as an "as is" basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively 'the MSCI Parties') expressly disclaims all warranties((including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.mscibarra.com). If you have any doubts about the suitability of this investment, you should contact an independant financial adviser.
If necessary, investors can refer to the complaints handling charter available in the banner of our website. Please note that the distribution of the product can stop at any time by decision of the management company.
Representative overview of the investment process, which may differ by product, client mandate or market conditions.
The commentary and analysis presented in this document reflect the opinion of HSBC Asset Management on the markets, according to the information available to date. They do not constitute any kind of commitment from HSBC Asset Management. Consequently, HSBC Asset Management will not be held responsible for any investment or disinvestment decision taken on the basis of the commentary and/or analysis in this document.
All data from HSBC Asset Management unless otherwise specified. Any third party information has been obtained from sources we believe to be reliable, but which we have not independently verified.
Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Capital is not guaranteed. It is important to remember that the value of investments and any income from them can go down as well as up and is not guaranteed.Tax on Stock Exchange transactions: this tax ("taxe sur les opérations de bourse" or "TOB") is due by Belgian resident taxpayers on redemptions and conversions (i.e. share/unit classes switch) related to capitalisation shares of investment companies (i.e. funds with legal personality such as SICAVs) that are registered with the FSMA. In such cases, the applicable TOB rate is 1,32 per cent (with a maximum amount of EUR 4,000 per transaction). The TOB is also due on secondary market transactions (i.e. purchases and sales) of distributing and capitalising shares and units of ETFs and trackers established as investment companies or on a contractual funds. In these cases, the TOB may be due at the rate of 0.12 per cent (cap: EUR 1,300), 0.35 per cent (cap: EUR 1,600) or 1.32 per cent (cap: EUR 4,000) depending on the features of the Fund. Belgian savings tax: Individual investors will subject to 30 per cent withholding tax on the distribution of dividends (distribution share) and / or the capital gain generated on the sale shares (capitalization share and / or distribution) of the Fund :
- having more than 25 per cent of receivables in the portfolio for the shares acquire before January 1, 2018
- having more than 10 per cent of receivables in the portfolio if the units have been acquired from January 1, 2018
Investment involves risks. Past performance is not indicative of future performance. Future returns will depend inter alia on market developments, the fund manager’s skill, the fund’s level risk and management costs and if applicable subscription and redemption costs. The return, the value of money invested in the fund may become negative as a result of price losses and currency fluctuations. There is no guarantee that all of your invested capital can be redeemed. Unless stated otherwise, inflation is not taken into account.
Pursuant to AMF Doctrine 2020-03 ; communications about this product / strategy aimed at non-professional investors must state the following: “investors should note that, relative to the expectations of the Autorité des Marchés Financiers, this fund presents disproportionate communication on the consideration of non-financial criteria in its investment policy.