Portfolio investment funds

¹Restricted to advice on cash funds.

²We only review investments sold by or transferred to HSBC Channel Islands & Isle of Man.

³Investments are done solely on an Execution Only basis with no advice given.

⁴In the Isle of Man, the Report and Implementation Fee is inclusive of VAT.

⁵'Assets implemented' refers to the total value of all investment recommendations which you ask us to implement (including both lump sums and/or the first year of any regular contributions).

⁶Or 1.925% Report and Implementation Fee for any fixed income funds implemented.

⁷Or 1.925% of total contributions to be invested in first 12 months of investment for contributions above £5,000 per month into any fixed income funds.

⁸Applies to lump sum purchases and each monthly contribution when setting up regular savings and/or a new fund purchase involved when selling and repurchasing.

Remember, the value of investments is not guaranteed - you may not get back the amount you invested, and any income received from them can fall as well as rise. This could also result from changes in currency exchange rates, particularly where overseas securities are held or where investments are converted from one currency to another. We always recommend that any investments should be considered as medium to long-term holdings of least 5 years.

The ongoing charge is made up of the annual management charge (AMC) and other expenses. The other expenses include such things as portfolio administration services, accounting and legal fees, and custodian and settlement charges for the investments the World Selection portfolio holds. When you combine these with the AMC, you have the ongoing charge, which is the combined annual operating expense of the portfolio.

The ongoing charge is payable to the fund manager of the World Selection portfolios (HSBC Global Asset Management (UK) Limited). You won't see this charge shown on a statement – instead of being taken from your investment, it's reflected in the price of the shares.

Details of the total ongoing costs associated with each World Selection portfolio are documented in the key investor information documents (KIIDs) and factsheets which are updated from time to time. Please refer to these documents for the latest ongoing charges information before you invest. Find out more about the current price (for indicative purposes).

We also undertake the role of the Jersey sub-distributor of the funds for which we're paid a distribution fee of 50% of the annual management fee. We receive the payment of the annual management fee from the UK distributor, HSBC Global Asset Management (UK) Limited. The payment of the distribution fee is made monthly and is calculated pro rata to the value of the shares. Gross annual management fee rates range from 0.50% to 1.75% per annum as specified in the prospectus of the relevant fund. We're not paid a distribution fee in relation to the B share class.

A higher level of risk could bring the potential for greater growth, but there's also more chance that your investment could go down in value.

When choosing an investment, you should consider the level of risk you're willing to take and your capacity for loss. How comfortable would you feel if your investments fell in value? How would a loss impact your finances in the short term? In the long term? To decide if a certain level of risk might be acceptable for you, have a read through the 5 portfolios' risk descriptions.

If you're not sure about investing or how much risk is appropriate for you, please seek financial advice.

Each portfolio has a designated risk category. To keep within this risk category, the fund manager continuously tracks the performance of individual assets, using his or her understanding of the market to adjust the holdings in the fund.

The fund manager’s goal is always to maximise the return within the portfolio’s designated level of risk.

You can make withdrawals from your investment at any time.

If making a withdrawal, you must retain the investment minimum of £1,000 within your nominee account.

If you hold more than one portfolio or fund in your account, you must also retain the investment minimum of £1,000 within each portfolio or HSBC Global Investment fund.

Taxation – UK resident investors

The commentary below is general in nature and only provides a summary of the principal tax considerations for certain UK resident investors who are individuals and who hold investments in HSBC World Selection portfolios. The actual tax consequences of any investment will depend upon the individual's specific circumstances, therefore we would recommend you seek professional tax advice.

Funds with UK reporting fund status:

Where a share class of an offshore fund has UK reporting fund status, broadly, any gain on the disposal of such a holding is treated as a capital gain and subject to UK capital gains tax rules.

World Selection – UK reporting from 1 August 2015:

Since 1 August 2015, all HSBC World Selection portfolio share classes have UK reporting fund status. This means that from 1 August 2015, for UK resident investors who are individuals who invest in an HSBC World Selection portfolio share class for the first time, any gain on the disposal of such a holding is treated as a capital gain and subject to UK capital gains tax rules. Funds which convert to UK reporting fund status.

When a non-reporting offshore fund/share class converts to having UK reporting fund status, a UK investor will have the option to make an election to treat themselves as disposing of their investment in the fund immediately before it became a reporting fund and then reacquiring it as an investment in a reporting fund. The effect of making such an election results in any gains on this deemed disposal being treated as offshore income gains and subject to income tax. Future gains in respect of the 'reacquired' investment will be subject to capital gains tax treatment. If a UK investor opts not to make such an election, the entire gain will be taxed as offshore income gains and subject to income tax.

Please note that an exchange of shares between different funds of HSBC World Selection portfolios is regarded as a disposal (ie if you sell out of one HSBC World Selection portfolio and invest the proceeds in another World Selection portfolio, that is considered a disposal and any gains will be chargeable to tax).

Regulations on international tax transparency may require us to report certain information about you to the Jersey tax authority, where your account is held. Under international agreements to exchange account information, the Jersey tax authority may transfer this information to the tax authorities of other jurisdictions in which you may be tax resident.

Therefore, before choosing any investment products, it is important that all of your personal details are complete and accurate otherwise we won't be able to process your application.

Please review your existing details on your online banking profile in the 'Update your details' section and give the new information we need:

Country of birth and any multiple citizenships you may hold (both of these fields are located within the 'Update personal details' section).

Give a residential address and indicate how long you've lived at this address (both of these fields are in the 'Change correspondence address' section). If you've lived at your current address for less than 3 years, you must also give details of your previous residential address.

We also need to collect information from you about your tax residencies and relevant tax identification numbers. If we don't have this information, our administration team will need to contact you, which will delay your application.

Depending on the information you provide, we may also need to contact you to obtain further supporting documentation as prescribed by our regulatory requirements.

If you've updated your details recently then these don't need to be supplied again, until any information changes. If your personal information changes in the future, please notify us within 30 days.