hsbc global funds icav prospectus
TRANSCRIPT
PUBLIC
HSBC Global Funds ICAV
Prospectus
An open-ended Irish collective asset management vehicle which is constituted as an umbrella fund with segregated liability between funds and with variable capital
Date: 26 January 2022
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SECTION 10. APPENDICES
10.1. Appendix 1 - UCITS Investment Restrictions
The assets of each Sub-Fund w ill be invested in accordance w ith the investment restrictions contained in the UCITS Regulations w hich are
summarised below and such additional investment restrictions, if any, as may be adopted by the Directors and further de tails in relation to
w hich w ill be set out in the relevant Sub-Fund Supplement.
1 PERMITTED INVESTMENTS
INVESTMENTS OF A SUB-FUND ARE CONFINED TO:
(a) transferable securities and money market instruments w hich are either admitted to off icial listing on a stoc k exchange in a Member
State or non-Member State or w hich are dealt on a market w hich is regulated, operates regularly, is recognised and open to the
public in a Member State or non-Member State;
(b) recently issued transferable securities w hich w ill be admitted to off icial listing on a stock exchange or other market (as described
above) w ithin a year;
(c) money market instruments, as defined in the Central Bank’s UCITS Regulations, other than those dealt on a regulated market;
(d) shares or units of UCITS;
(e) shares or units of AIFs as set out in the Central Bank’s UCITS Regulations;
(f) deposits w ith credit institutions as prescribed in the Central Bank’s UCITS Regulations;
(g) FDI as prescribed in the Central Bank’s UCITS Regulations.
2 INVESTMENT RESTRICTIONS
(a) A Sub-Fund may invest no more than 10% of its net assets in transferable securities and money market instruments other than
those referred to in paragraph 1 above.
(b) Recently Issued Transferable Securities
i) Subject to 2(b) ii) a Sub-Fund shall not invest any more than 10% of assets in securities of the type to w hich Regulation 68(1)(d)
of the UCITS Regulations apply.
ii) 2(b) i) does not apply to an investment by a Sub-Fund in certain US securities know n as “Rule 144A securities” provided that;
- the relevant securities have been issued w ith an undertaking to register the securities w ith the US Securities &
Exchanges Commission w ithin one year of issue; and
- the securities are not illiquid securities i.e. they may be realised by the Sub-Fund w ithin seven days at the price,
or approximately at the price, w hich they are valued by the Sub-Fund.
(c) A Sub-Fund may invest no more than 10% of its net assets in transferable securities or money market instruments issued by the
same body provided that the total value of transferable securities and money market instruments held in the issuing bodies in each
of w hich it invests more than 5% is no more than 40%.
(d) Subject to the prior approval of the Central Bank, the limit of 10% (as described in paragraph (c)) is raised to 25% in the case of
bonds that are issued by a credit institution w hich has its registered off ice in a Member State and is subject by law to spec ial public
supervision designed to protect bond-holders. If a Sub-Fund invests more than 5% of its Net Asset Value in these bonds issued
by one issuer, the total value of these investments may not exceed 80% of the net asset value of the Sub-Fund.
(e) The limit of 10% in paragraph (c) is raised to 35% if the transferable securities or money market instruments are issued or
guaranteed by a Member State or its local authorities or by a non-Member State or public international body of w hich one or more
Member States are members.
(f) The transferable securities and money market instruments referred to in paragraphs (d) and 2 (e) shall not be taken into account
for the purpose of applying the limit of 40% referred to in paragraph (c).
(g) Cash booked in accounts and held as ancillary liquidity shall not exceed:
(a) 10% of the net assets of the Sub-Fund; or
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(b) w here the cash is booked in an account w ith the Depositary, 20% of net assets of the Sub-Fund.
(h) The risk exposure of a Sub-Fund to a counterparty to an OTC derivative may not exceed 5% of net assets.
This limit is raised to 10% in the case of a credit institution authorised in the EEA; a credit institution authorised w ithin a
signatory state (other than an EEA member state) to the Basle Capital Convergence Agreement of July 1988; or a credit
institution authorised in Jersey, Guernsey, the Isle of Man, Australia or New Zealand.
(i) Notw ithstanding paragraphs (c), (g) and (h) above, a combination of tw o or more of the follow ing issued by, or made or undertaken
w ith, the same body may not exceed 20% of net assets:
(i) investments in transferable securities or money market instruments;
(ii) deposits; and/or
(iii) risk exposures arising from OTC derivatives transactions.
(j) The limits referred to in (c), (d), (e), (g), (h) and (i) above may not be combined, so that exposure to a single body shall not exceed
35% of the net assets of the relevant Sub-Fund.
(k) Group companies are regarded as a single issuer for the purposes of paragraphs (c), (d), (e), (g), (h) and (i). How ever, a limit o f
20% of net assets of a Sub-Fund may be applied to investments in transferable securities and money market instruments w ithin
the same group.
(l) Subject to the restrictions and limits set out in the UCITS regulations and to the approval of the Central Bank, a Sub-Fund may
invest up to 100% of its net assets in different transferable securities and money market instruments issued or guaranteed by any
Member State, its local authorities, non-Member States or by one of the follow ing supranational or public international bodies of
w hich one or more Member States are members: OECD Governments (provided the relevant issues are investment gr ade),
Government of the People’s Republic of China, Government of Brazil (provided the issues are of investment grade), Government of India (provided the issues are of investment grade), Government of Singapore, European Investment Bank, European Bank for
Reconstruction and Development, International Finance Corporation, International Monetary Fund, Euratom, The Asian
Development Bank, European Central Bank, Council of Europe, Eurofima, African Development Bank, International Bank for
Reconstruction and Development (The World Bank), The Inter American Development Bank, European Union, Federal National
Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Government National Mortgage
Association (Ginnie Mae), Student Loan Marketing Association (Sallie Mae), Federal Home Loan Bank, Federal Farm Credit Bank,
Tennessee Valley Authority or Straight-A Funding LLC.
A Sub-Fund must hold securities from at least 6 different issues, w ith securities from any one issue not exceeding 30% of its net
assets.
3 INVESTMENT IN COLLECTIVE INVESTMENT SCHEMES (“CIS”)
(a) A Sub-Fund may not invest more than 10% of net assets in total in other CIS. Such CIS must themselves be prohibited from
investing more than 10% of net assets in total in other CIS.
(b) Where a Sub-Fund invests in the units of other CIS that are managed directly or by delegation by a UCITS management company
or by any other company w ith w hich that management company is linked by common management or control, or by a substantial
direct or indirect holding, that management company or other company may not charge subscription, conversion or redemption
fees on account of the ICAV’s investment in the shares of the other CIS.
(c) Where a commission (including a rebated commission) is received by the Investment Manager by virtue of an investment in the
units of another CIS, this commission must be paid into the assets of the relevant Sub-Fund.
4 INDEX TRACKING UCITS
(a) A Sub-Fund may invest up to 20% of its net assets in shares and/or debt securities issued by the same body w here the investment
policy of the relevant Sub-Fund is to replicate an index w hich satisf ies the criteria set out in the UCITS Regulations and is
recognised by the Central Bank.
(b) The limit in paragraph (a) may be raised to 35%, and applied to a single issuer, w here this is justif ied by exceptional market
conditions.
5 GENERAL PROVISIONS
(a) A Sub-Fund, or management company acting in connection w ith all of the CIS w hich it manages, may not acquire any shares
carrying voting rights w hich w ould enable it to exercise signif icant influence over the management of an issuing body.
(b) A Sub-Fund may acquire no more than:
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(i) 10% of the non-voting shares of any single issuer;
(ii) 10% of the debt securities of any single issuer;
(iii) 25% of the shares or units of any single CIS;
(iv) 10% of the money market instruments of any single issuing body.
NOTE: The limits laid dow n in paragraphs (ii), (iii) and (iv) above may be disregarded at the time of acquisition, if at that
time, the gross amount of the debt securities or of the money market instruments, or the net amount of the securities in
issue cannot be calculated.
(c) Paragraphs (a) and (b) shall not be applicable to:
(i) transferable securities and money market instruments issued or guaranteed by a Member State or its local
authorities;
(ii) transferable securities and money market instruments issued or guaranteed by a non-Member State;
(iii) transferable securities and money market instruments issued by public international bodies of w hich one or more
Member States are members;
(iv) shares held by a Sub-Fund in the capital of a company incorporated in a non-Member State w hich invests its
assets mainly in the securities of issuing bodies w ith the registered off ices in that non-Member State, w here
under the legislation of that non-Member State such a holding represents the only w ay in w hich the Sub-Fund
can invest in the securities of issuing bodies of that non-Member State. This w aiver is applicable only if in its
investment policies the company from the non-Member State complies w ith the limits laid dow n in paragraphs
2(c) to 2(i), 3(a), 5(a), 5(b), 5(d), 5(e) and 5(f) and provided that w here these limits are exceeded, paragraphs
5(e) and 5(f) below ;
(v) shares held by the ICAV in the capital of subsidiary companies carrying on only the business of management,
advice or marketing in the country w here the subsidiary is located, in regard to the redemption of units at unit -
holders’ request exclusively on their behalf.
(d) A Sub-Fund need not comply w ith the investment restrictions herein w hen exercising subscription rights attaching to transferable
securities or money market instruments, w hich form part of their assets.
(e) The Central Bank has allow ed each Sub-Fund to derogate from the provisions of paragraphs 2(c) to 2(j), 3(a), 4(a) and 4(b) for a
period of up to six months from the date of authorisation of such Sub-Fund, provided that such Sub-Fund observes the principle of
risk spreading.
(f) If the limits laid dow n herein are exceeded for reasons beyond the control of a Sub-Fund, or as a result of the exercise of
subscription rights, that Sub-Fund must adopt as a priority objective for its sales transactions the remedying of that situation, taking
due account of the interests of its Shareholders.
(g) A Sub-Fund may not carry out uncovered sales of:
(i) transferable securities;
(ii) money market instruments;
(iii) units of collective investment undertakings; or
(iv) f inancial derivative instruments.
(h) A Sub-Fund may hold ancillary liquid assets.
6 FINANCIAL DERIVATIVE INSTRUMENTS (“FDIS”)
(a) A Sub-Fund’s global exposure (as prescribed in the Central Bank’s UCITS Regulations) relating to FDI must not exceed its total
NAV.
(b) Position exposure to the underlying assets of FDI, including embedded FDI in transferable securities or money market instruments ,
w hen combined w here relevant w ith positions resulting from direct investments, may not exceed the investment limits set out in
the Central Bank’s UCITS Regulations. (This provision does not apply in the case of index based FDI provided the underlying index
is one w hich meets w ith the criteria set out in the Central Bank’s UCITS Regulations.)
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(c) A Sub-Fund may invest in FDIs dealt in over-the-counter (OTC) provided that the counterparties to over-the-counter transactions
(OTCs) are institutions subject to prudential supervision and belonging to categories approved by the Central Bank.
(d) Investment in FDIs are subject to the conditions and limits laid dow n by the Central Bank.
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10.2. Appendix 2 – How the Sub-Funds Use Instruments and Techniques
FDI
A derivative is a f inancial contract w hose value depends on the performance of one of more reference assets (such as a securi ty or basket of securities, an Index or an interest rate). Futures are generally exchange-traded. All other types of derivatives are generally OTC. For any
index-linked derivatives, the Index provider determines the rebalancing frequency.
Futures: Futures are contracts to buy or sell a standard quantity of a specif ic asset (or, in some cases, receive or pay cash based
on the performance of an underlying asset, instrument or index) at a pre-determined future date and at a price agreed through a
transaction undertaken on an exchange.
Options: Contracts w hich give one party the right, but not the obligation, to buy or sell to the other party to the contract, a specif ic
quantity of a particular product, such as options on equities, interest rates, indices, bonds, currencies, or commodity indices.
Warrants: A time-limited right to subscribe for shares, debentures, loan stock or government securities, and is exercisable against
the original issuer of the securities.
Foreign Exchange Forw ards: These instruments allow the holder to purchase one currency and sell another currency at a pre -
determined rate of exchange at a pre-determined date in the future. Forw ards are not undertaken on an exchange.
Sw aps: Contracts w here tw o parties exchange the returns from tw o different reference assets. Sw aps in w hich Sub-Funds may
invest may include foreign exchange, interest rate, total return, credit default, commodity index, volatility and variance sw aps.
They may be deliverable or non-deliverable (being a cash-settled contract w hich doesn't involves delivery of the underlying, i.e.
there is no physical exchange).
A foreign exchange sw ap is a contract w hich simultaneously purchases (the “near leg”) and sells (the “far leg”) the
same amount of the same currency. Usually the “near leg” w ill be a spot foreign exchange and the “far leg” w ill
effectively be a forw ard foreign exchange contract.
An interest rate sw ap involves the exchange by a Sub-Fund w ith another party of their respective commitments to pay
or receive cash f low s (e.g., an exchange of f loating rate payments for f ixed-rate payments).
A Total Return Sw ap (as defined above).
A credit default sw ap is a type of credit derivative w hich allow s one party (the protection buyer) to transfer credit risk of
a reference entity (the reference entity) to one or more other parties (the protection seller). The protection buyer pays a periodic fee to the protection seller in return for protection against the occurrence of a number of events experienced by
the reference entity. Protection may also be sold under a credit default sw ap in anticipation of a stable or improving
credit position.
A volatility sw ap is a type of forw ard contract w hose underlying is the volatility of a given product w hich allow s exposure
to be gained solely upon the movement of a stock's volatility w ithout the influence of its price and so a position can be
taken on how volatile the stock w ill be.
A variance sw ap is used to speculate on or hedge risks associated w ith the magnitude of movement of the underlying
asset price i.e. it enables a user to isolate a pure view on future variance.
A commodity index sw ap is a contract w here tw o sides of the deal agree to exchange cash f low s, w hich are dependent
on the price of an underlying commodity index. Any commodity index to w hich exposure is achieved w ill be cleared in
advance by the Central Bank.
TBA Derivatives: Forw ard contracts on a generic pool of mortgages.
Structured f inancial derivatives, such as credit-linked and equity-linked securities.
A credit-linked security is a security that is structured by embedding a credit default sw ap agreement in a funded asset
to form an investment that has credit risk and cash f low characteristics resembling a bond or a loan.
An equity-linked security is an instrument w hose return is determined by the performance of a single, underlying equity
security or a basket of equity securities. The return on investment is dependent on upon the performance of the
underlying equities that are linked to the equity-linked securities.
Contracts for difference. These allow a direct exposure to the market, a sector or an individual security. Contracts for difference are used
to gain exposure to share price movements w ithout buying the shares themselves. A contract for differences on a company’s sha res w ill
specify the price of the shares w hen the contract w as started. The contract is an agreement to pay out cash on the difference between
the starting share price and w hen the contract is closed. A contract for difference may come w ithin the definition of a Total Return Sw ap.
Details of the FDI to be used by any Sub-Fund are disclosed in the Supplement for the relevant Sub-Fund.
What the Sub-Funds May Use Derivatives For
Hedging - Hedging is taking a market position that is in the opposite direction from the position created by other portfolio
investments, for the purpose or reducing or cancelling out exposure to price f luctuations or certain factors that contribute to them.
Currency hedging Typically done using currency forw ards. The goal is to hedge against currency risk. Can be done at the
Sub-Fund level and at the share class level (for share classes that are hedged to a different currency than the Sub-Fund’s
base currency). A Sub-Fund may engage in direct hedging (same currency, opposite position) and in cross-hedging
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(reducing exposure to one currency w hile increasing exposure to another). When a Sub-Fund holds assets denominated
in multiple currencies, there is a greater risk that currency risk w ill not be fully hedged.
Interest rate hedging Typically done using interest rate futures, interest rate sw aps, w riting call options on interest rates
or buying put options on interest rates. The goal is to hedge against interest rate risk.
Credit hedging Typically done using credit default sw aps. The goal is to hedge against credit risk. This includes hedges
against the risks of specif ic assets or issuers as w ell as proxy hedges (hedges against securities to w hich the Sub-Fund
is not directly exposed but w hich are expected to behave similarly to securities to w hich it is directly exposed).
Duration hedging Typically done using futures. The goal is to seek to manage the exposure of bonds to changes in interest
rates. Duration hedging can be done at the Sub-Fund level only.
Investment exposure - A Sub-Fund may use any allow able derivative as a substitute for permissible direct investment.
Leverage - A Sub-Fund may use any allow able derivative to increase its total investment exposure beyond w hat w ould be
possible through direct investment (leverage). A leveraged portfolio is typically more volatile than an unleveraged one. Unless
otherw ise stated in the relevant Sub-Fund Supplement, the Investment Manager w ill not utilise derivatives for leverage purposes.
Details of the reasons for use of FDI w ill be set out in the Supplement for the relevant Sub-Fund.
Counterparties to Derivatives
All counterparties to derivatives must be authorised by the Investment Manager. The authorisation process includes regular credit
assessments that use both external information such as credit rating agency ratings as w ell as internal analysis of audited f inancials for
the past three years. Counterparty creditw orthiness is monitored continually and any adverse information is considered a matter of
urgency.
Counterparties are review ed at least annually to ensure that they remain appropriate for the requirements of the business. An independent
front off ice function monitors counterparty exposures daily (see “Counterparty Risk ” in Section 3.2. of this Prospectus). Exposures may also be managed through a collateral and margining arrangement supported by appropriate, enforceable agreements.
No counterparty to a Sub-Fund derivative can serve as an investment manager of a Sub-Fund or otherw ise have any control over the
management of a Sub-Fund’s investments or transactions or over the assets underlying a derivative. All authorised counterparties w ill be
identif ied in the ICAV’s annual report.
EPM
EPM means the cost-effective use of techniques and instruments to reduce risks or costs or to generate additional capital or income.
The techniques and instruments must relate to transferable securities or money market instruments, and the risks generated must be
consistent w ith the Sub-Fund’s risk profile and be adequately captured by the risk management process.
Collateral policy
Collateral obtained in respect of OTC financial derivative transactions and EPM, such as Securities Financing Transactions, must comply
w ith the follow ing criteria:
Types of Collateral
Non Cash Collateral
Non-cash collateral for Sub-Funds must, at all times, meet w ith the follow ing requirements as applicable:
1. Liquidity: Non-cash collateral should be highly liquid and traded on a regulated market or multilateral trading facility w ith
transparent pricing in order that it can be sold quickly at a price that is close to pre-sale valuation. Collateral received should also comply w ith the provisions of Regulation 74 of the UCITS;
2. Valuation: Collateral must be capable of being valued on at least a daily basis at mark-to-market value and assets that exhibit high price volatility should not be accepted as collateral unless suitably conservative haircuts are in place;
3. Issuer credit quality: Collateral received should be of high quality;
4. Correlation: Collateral received should be issued by an entity that is independent from the counterparty and is not expected to display a high correlation w ith the performance of the counterparty;
5. Diversification (asset concentration): Collateral should be suff iciently diversif ied in terms of country, markets and issuers
w ith a maximum exposure to a given issuer of 20% of the NAV of the relevant Sub-Fund. When a Sub-Fund is exposed to
different counterparties, the different baskets of collateral should be aggregated to calculate the 20% limit of exposure to a
single issuer. By w ay of derogation from this requirement, a Sub-Fund may be fully collateralised in different transferable
securities and money market instruments issued or guaranteed by a Member State, one or more of its local authorities, a
third country, or a public international body to w hich one or more Member States belong, provided that the Sub-Fund must
hold securities from at least 6 different issues, w ith securities from any one issue not exceeding 30% of the NAV of the Sub-
Fund. Please see Appendix 1 – “UCITS Investment Restrictions ” under “Investment Restrictions” at section 2(l) for individual issuers.
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6. Immediately available : Collateral received should be capable of being fully enforced by the ICAV at any time w ithout reference to or approval from the relevant counterparty; and
7. Non-cash collateral received cannot be sold, pledged or reinvested by the Sub-Fund.
Generally, the ICAV w ill accept the follow ing types of non-cash collateral: obligations issued or guaranteed by the U.S., U.K. any other
OECD member states or their local governments, agencies, instrumentalities or authorities, obligations issued by supranationa l entities,
corporate debt securities, including commercial paper and convertible securities, issued by U.S. and non-U.S. corporations, equities from
major indices (including, but not limited to Australia, Canada, Denmark, France, Germany, Hong Kong, Japan, the Netherlands, Norw ay, Sw eden, Sw itzerland, United Kingdom and United States). Maturity is not a feature considered w hen accepting collateral.
Cash Collateral
Reinvestment of cash collateral must be in accordance w ith the follow ing requirements:
1. cash received as collateral may only be invested in the follow ing:
a) deposits w ith a credit institution authorised in the European Economic Area (EEA) (EU Member States, Norw ay,
Iceland, Liechtenstein), a credit institution authorised w ithin a signatory state, other than an EU Member State or a
Member State of EEA, to the Basle Capital Convergence Agreement of July 1988 (Sw itzerland, Canada, Japan, United
States) or a credit institution authorised in Jersey, Guernsey, the Isle of Man, Australia or New Zealand (the Relevant Institutions);
b) high quality government bonds;
c) reverse repurchase agreements provided the transactions are w ith credit institutions referred to in (a) above and the ICAV is able to recall at any time the full amount of cash on an accrued basis;
d) short-term money market funds as defined in the ESMA Guidelines on a Common Definition of European Money Market Funds (ref CESR/10-049);
1. invested cash collateral must be diversif ied in accordance w ith the requirements for diversif ication set out under “Diversif ication (asset concentration)” above;
2. invested cash collateral may not be placed on deposit w ith the counterparty or a related entity.
Investing this cash subjects that investment, as w ell as the securities loaned, to market appreciation or depreciation and the risks associated
w ith such investments, such as failure or default of the issuer of the relevant security.
Level of Collateral Required
Unless otherw ise specif ied in the relevant Supplement for a Sub-Fund, the levels of collateral required are as follow s:
Lending of portfolio securities at least 100% of the exposure to the counterparty.
OTC derivatives Such collateral to ensure, in any event, that counterparty
exposure is managed w ithin the limits set out in UCITS Investment Restrictions in Appendix 1.
Reverse repurchase agreements at least 100% of the exposure to the counterparty.
Haircut Policy
In advance of a Sub-Fund entering into OTC derivative transactions, reverse repurchase agreements and/or stock-lending
transactions, the Investment Manager w ill determine w hat, if any, haircut may be required and acceptable for each class of asset
to be received as collateral, w hich w ill be set out in the agreement w ith the relevant counterparty or otherw ise documented a t the
time of entering into such agreement. Such haircut w ill take into account the characteristics of the asset such as the credit standing
or price volatility of the assets received as collateral and, w here applicable, the outcome of any stress test performed in accordance w ith the Central Bank's requirements.
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10.3. Appendix 3 - List of Recognised Markets
The exchanges/markets are set out below in accordance w ith the regulatory criteria as defined in the Central Bank’s
UCITS Regulations. The Central Bank does not issue a list of approved markets.
With the exception of permitted investment in unlisted securities, investment in securities w ill be limited to the
follow ing stock exchanges and regulated markets:
(i) Any stock exchange or market in any EU Member State or in any of the follow ing member
countries of the OECD: Australia, Canada, Japan, New Zealand, Norw ay, Sw itzerland, the United
Kingdom (in the event that the U.K. is no longer an EU Member State) and the United States of
America.
(ii) Any of the follow ing exchanges or markets:
Argentina Buenos Aires Stock Exchange, Cordoba Stock Exchange, La Plata
Stock Exchange, Mendoza Stock Exchange, Mercado Abierto
Electronico, Rosario Stock Exchange, Mercado a Termino de Buenos
Aires S.A. (MATba)
Bahrain Manama Stock Exchange
Bangladesh Dhaka Stock Exchange, Chittagong Stock Exchange
Bermuda Bermuda Stock Exchange
Botsw ana Botsw ana Stock Exchange
Brazil Bolsa de Valores, Mercadorias & Futuros de São Paulo
Cayman Islands Cayman Islands Stock Exchange
Chile Santiago Stock Exchange, Valparaiso Stock Exchange, La Bolsa
Electronica de Chile
China Shanghai Stock Exchange and Shenzhen Stock Exchange
Colombia Bolsa de Valores de Colombia (BVC)
Croatia Zagreb Stock Exchange
Egypt Egyptian Stock Exchange
Ghana Ghana Stock Exchange
Guernsey The International Stock Exchange
Hong Kong Stock Exchange of Hong Kong
India The National Stock Exchange of India Limited, Madras Stock
Exchange, Delhi Stock Exchange, Ahmedabad Stock Exchange,
Bangalore Stock Exchange, Cochin Stock Exchange, Gauhari Stock
Exchange, Magadh Stock Exchange, The Bombay Stock Exchange,
Pune Stock Exchange, Hyderabad Stock Exchange, Ludhiana Stock
Exchange, Uttar Pradesh Stock Exchange, Calcutta Stock Exchange
Indonesia Indonesia Stock Exchange
Israel Tel Aviv Stock Exchange
Jersey The International Stock Exchange
Jordan Amman Stock Exchange
Kazakhstan Central Asian Stock Exchange, Kazakhstan Stock Exchange
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Kenya Nairobi Stock Exchange
Kuw ait Kuw ait Stock Exchange
Malaysia The Bursa Malaysia Berhad,
Mauritius Stock Exchange of Mauritius
Mexico Mexico Stock Exchange
Morocco Casablanca Stock Exchange
Nigeria Nigeria Stock Exchange
Oman Oman Stock Exchange
Pakistan Karachi Stock Exchange (Guarantee) Ltd,
Lahore Stock Exchange, Islamabad Stock Exchange
Palestine Nablus Stock Exchange
Peru Lima Stock Exchange
Philippines Philippines Stock Exchange Inc.
Qatar Doha Securities Market
Russia RTS Stock Exchange, Moscow Interbank Currency Exchange
Saudi Arabia Saudi Stock Exchange (Tadaw ul)
Serbia Belgrade Stock Exchange
Singapore Singapore Exchange Limited
South Africa Johannesburg Stock Exchange
South Korea Korea Stock Exchange
Sri Lanka Colombo Stock Exchange
Taiw an Taiw an Stock Exchange Corporation, Gretai Securities Market
Thailand Stock Exchange of Thailand, Bangkok
Turkey Istanbul Stock Exchange
Uganda Uganda Securities Exchange
United Arab Abu Dhabi Stock Exchange,
Emirates Dubai Financial Market,
Dubai International Financial Exchange
Vietnam Ho Chi Minh Securities Trading Center, Hanoi Securities Trading
Center
Zambia Lusaka Stock Exchange
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(iii) The follow ing markets:
– the market organised by the International Capital Markets Association;
– the UK market (i) conducted by banks and other institutions regulated by the Financial Conduc t Authority (“FCA”) and subject to the Inter-Professional Conduct provisions of the FSA’s Market
Conduct Sourcebook and (ii) in non-investment products w hich are subject to the guidance contained in the “Non-Investment Product Code” draw n up by the participants in the London
market, including the FSA and the Bank of England (formerly know n as “The Grey Paper”);
– (a) NASDAQ in the United States, (b) the market in the US government securities conducted by the primary dealers regulated by the Federal Reserve Bank of New York; (c) the over -the-
counter market in the United States conducted by primary and secondary dealers regulated by the Securities and Exchange Commission and the National Association of Securities Dealers
and by banking institutions regulated by the US Controller of Currency, the Federal Reserve System or Federal Deposit Insurance Corporation;
– (a) NASDAQ Japan, (b) the over-the-counter market in Japan regulated by the Securities
Dealers Association of Japan, and (c) Market of the High-Grow th and Emerging Stocks (“MOTHERS”)
– the alternative investment markets in the United Kingdom regulated and operated by the
London Stock Exchange;
– the China Interbank Bond Market;
– the Hong Kong Grow th Enterprise Market (“GEM”);
– TAISDAQ
– the Stock Exchange of Singapore Dealing and Automated Quotation (“SESDAQ”)
– the Taiw an Innovative Grow ing Entrepreneurs Exchange (“TIGER”)
– the Korean Securities Dealers Automated Quotation (“KOSDAQ”)
– the French Market for Titres de Créances Négotiables (OTC market in negotiable debt instruments)
– the OTC market in Canadian Government Bonds, regulated by the Investment Dealers
Association of Canada
– EASDAQ (European Association of Securities Dealers Automated Quotation)
Financial Derivative Instruments
NASDAQ, the Chicago Mercantile Exchange American Stock Exchange, Chicago Board of Trade, Chicago Board
of Options Exchange, Coffee, Sugar and Cocoa Exchange, Iow a Electronic Markets, Kansas City Board of Trade,
Mid-American Commodity Exchange, Minneapolis Grain Exchange, New York Cotton Exchange, Tw in Cities
Board of Trade, New York Futures Exchange, New York Board of Trade, New York Mercantile Exchange, Hong
Kong Futures Exchange, Singapore International Monetary Exchange, Singapore Commodity Exchange, Tokyo
International Futures Exchange, New Zealand Futures and Options Exchange and any exchange or market,
including any board of trade or similar entity, or automated quotation system, w hich exchanges and markets are
regulated, operating regularly, recognised and open to the public in a Member State, or the United Kingdom (in
the event that the U.K. is no longer an EU Member State) or a member state of the EEA.
With the exception of permitted investments in unlisted securities, and off -exchange derivative instruments ,
investment in securities or FDI w ill be made only in securities or FDI listed or traded on a Recognised Market
w hich meets the regulatory criteria (regulated, operating regularly, recognised and open to the public) and w hich
is listed in the Prospectus. The Recognised Markets in the Prospectus w ill be draw n from the foregoing list. These exchanges and markets are listed in accordance w ith the requirements of the Central Bank and the Central Bank
does not issue a list of approved markets.
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10.4. Appendix 4 - Sub Delegates of Depositary
Country Sub Delegate
Argentina HSBC Bank Argentina S.A.
Australia HSBC Bank Australia Ltd
Austria HSBC Trinkaus & Burkhardt AG
Bahrain HSBC Bank Middle East Ltd
Bangladesh The Hongkong and Shanghai Banking Corporation Ltd (Bangladesh)
Belgium BNP Paribas Securities Services
Belgium Euroclear Bank S.A./N.V.
Bermuda HSBC Bank Bermuda Ltd
Bosnia-Herzegovina Unicredit Bank DD
Botsw ana Standard Chartered Bank Botsw ana Ltd
Brazil Bradesco-Kirton Corretora de Títulos e Valores Mobiliários S.A.
Bulgaria UniCredit Bulbank AD
Canada Royal Bank of Canada
Chile Banco Santander Chile
China Citibank (China) Co Ltd
China HSBC Bank (China) Ltd
Colombia Itau Securities Services Colombia S.A. Sociedad Fuduciaria
Croatia Privredna Banka Zagreb d.d.
Cyprus HSBC Continental Europe, Greece
Czech Republic Ceskoslovenska obchodni banka, a. s.
Denmark Skandinaviska Enskilda Banken AB
Egypt HSBC Bank Egypt Ltd
Estonia SEB Pank
Finland Skandinaviska Enskilda Banken AB
France BNP Paribas Securities Services (France)
France CACEIS Bank
Germany HSBC Trinkaus & Burkhardt AG
Ghana Standard Chartered Bank Ghana Ltd
Ghana Stanbic Bank Ghana Ltd
Greece HSBC Continental Europe, Greece
Hong Kong The Hongkong & Shanghai Banking Corporation Ltd (CNC) (HK)
Hungary Unicredit Bank Hungary Zrt
India The Hongkong and Shanghai Banking Corporation Ltd (India)
Indonesia PT Bank HSBC Indonesia
Ireland HSBC Bank Plc (Ireland)
Israel Bank Leumi Le-Israel BM
Italy BNP Paribas Securities Services
Japan The Hongkong and Shanghai Banking Corporation Ltd (Japan)
Jordan Bank of Jordan plc
Kazakhstan JSC Citibank Kazakhstan
Kenya Standard Chartered Bank Kenya Ltd
Kenya CFC Stanbic Bank Ltd
Kuw ait HSBC Bank Middle East Ltd (Kuw ait)
Latvia AS SEB Banka
Lebanon Bank Audi s.a.l.
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Lithuania AS SEB bankas
Luxembourg Clearstream Banking SA
Malaysia HSBC Bank Malaysia Berhad
Mauritius The Hongkong and Shanghai Banking Corporation Ltd (Mauritius)
Mexico HSBC Mexico, SA
Morocco Citibank Maghreb
Netherlands BNP Paribas Securities Services (Netherlands)
New Zealand The Hongkong and Shanghai Banking Corporation Ltd (New Zealand)
Nigeria Stanbic IBTC Bank plc
Norw ay Skandinaviska Enskilda Banken AB
Oman HSBC Bank Oman S.A.O.G.
Pakistan Citibank NA
Palestine Bank of Jordan Plc
Peru Citibank del Peru S.A.
Philippines The Hongkong and Shanghai Banking Corporation Ltd (Philippines)
Poland Bank Polska Kasa Opieki SA
Poland Societe General SA, Polish Branch
Portugal BNP Paribas Securities Services
Qatar HSBC Bank Middle East Ltd
Romania Citibank Europe plc, Romania branch
Russia AO Citibank
Saudi Arabia HSBC Saudi Arabia Ltd
Serbia Unicredit Bank Srbija a.d.
Singapore The Hongkong and Shanghai Banking Corporation Ltd (Singapore)
Slovakia Ceskoslovenska obchodni banka, a. s
Slovenia Unicredit Banka Slovenija DD
South Africa Standard Bank of South Africa Ltd
South Korea The Hongkong and Shanghai Banking Corporation Ltd (South Korea)
Spain BNP Paribas Securities Services
Sri Lanka The Hongkong and Shanghai Banking Corporation Ltd (Sri Lanka)
Sw eden Skandinaviska Enskilda Banken AB
Sw itzerland Credit Suisse (Sw itzerland) Ltd
Taiw an HSBC Bank (Taiw an) Ltd
Tanzania Standard Chartered Bank (Mauritius) Ltd
Thailand The Hongkong and Shanghai Banking Corporation Ltd (Thailand)
Tunisia Union Internationale de Banque SA
Turkey HSBC Bank AS
Uganda Standard Chartered (Uganda) Ltd
Uganda Stanbic Bank Uganda Ltd
United Arab Emirates HSBC Bank Middle East Ltd
United Kingdom HSBC Bank Plc (UK)
United States HBSC Bank (USA) NA
Vietnam HSBC Bank (Vietnam) Limited
Zambia Standard Chartered Bank (Zambia) Plc
Zambia Stanbic Bank Zambia Ltd
Zimbabw e Standard Bank of South Africa Limited