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Asset Allocation Questionnaire

This questionnaire is designed to determine an asset mix that best fits your investment objectives and provide you with an appropriate portfolio recommendation. The questionnaire helps us learn about you, your investment time horizon and risk-tolerance preferences. Please complete every question to the best of your ability. All information in the profile will be kept strictly confidential and will be used only by HSBC Bank (USA), National Association personnel in connection with the management of your HSBC LifeLine Funds.

 Your Investment Preferences and Tolerance for Risk

Risk assessment and investment preferences provide the foundation for determining which asset classes are most appropriate for your portfolio. The following set of questions addresses your attitude toward asset classes, inflation, risk-return tradeoff, and loss aversion.

   
 
  1. Information on your previous investment experience can help us understand your attitude toward investment risk.
    What has been your past experience with the following asset classes?
    		2.  Never Invested Occasionally Invest Invest Often
    U.S. large company stocks
    U.S. small company stocks
    International stocks
    High-quality bonds

    Money market instruments
    (Including CDs and Treasuries)


    The following question addresses inflation and its effect on investments. Inflation, the rise of prices over time, erodes the purchasing power of assets (i.e., a dollar buys less today than it did twenty years ago.) The degree to which you want your investment returns to meet or exceed inflation directly affects the level of risk in your overall portfolio. Typically, investments that closely follow inflation have lower fluctuations and lower returns, while investments which exceed inflation by a substantial amount tend to have more volatility (risk).

  2. Which of the following statements best describes your approach to inflation?

    3. I am satisfied with maintaining the purchasing power of my investments (achieving returns equal to the inflation rate).
    I am willing to accept moderate risk with my investments in an effort to achieve returns moderately higher than the inflation rate.
    I am willing to accept significant risk with my investments in an effort to achieve returns substantially higher than the inflation rate.

  3. The graph below shows the returns of a hypothetical portfolio over time. If you owned this portfolio, given its historical and current returns, what action would you take?

    4. I would immediately pull out of the portfolio and cut my recent losses.
    I would endure the current loss and hope for higher future returns.
    I would invest more in the portfolio now that the price is lower

  4. How often do you evaluate (and consider changing) your investments?
    I evaluate my investments:

    5. Monthly Quarterly Annually Less frequently than annually


    The following question addresses inflation and its effect on investments. Inflation, the rise of prices over time, erodes the purchasing power of assets (i.e., a dollar buys less today than it did twenty years ago.) The degree to which you want your investment returns to meet or exceed inflation directly affects the level of risk in your overall portfolio. Typically, investments that closely follow inflation have lower fluctuations and lower returns, while investments which exceed inflation by a substantial amount tend to have more volatility (risk).

  5. The following graph shows the income return and capital appreciation breakdown of different hypothetical portfolios. Which portfolio would you choose?

    6. Portfolio A Portfolio B Portfolio C Portfolio D


  6. In the event of a financial emergency, which one ot the following would best describe your financial situation?

    7. I have funds outside of this investment that I may access to meet any unexpected needs.
    I do not have funds outside of this investment that I may access to meet any unexpected needs.


  7. The following graphs show the historical returns of three hypothetical investments. This question is designed
    to assess your tolerance for risk (volatility) relative to a given level of return. Given the fluctuations in the
    returns of each investment, if your time horizon was long-term (greater than 8 years), which investment
    would you choose?


    8. Annual Returns for Investment A Average Annual Return of 7.4% 
    Annual Returns for Investment B Average Annual Return of 11.4% 
    Annual Returns for Investment C Average Annual Return of  14.4%  
    Portfolio A
    Portfolio B
    Portfolio C

Distributor: Foreside Distribution Services, LP

HSBC Global Asset Management (USA) Inc. is the investment advisor to the HSBC Investor Funds and receives a fee for its services.

Securities Products are:

  • Not a bank deposit or obligation of the bank or any of its affiliates
  • Not FDIC insured
  • Not insured by any federal government agency
  • Not guaranteed by the bank of any of its affiliates
  • May lose value

These Funds may not be available for sale in all states. Contact your investment advisor concerning if/how you can purchase these Funds.

There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.

During the period shown, portions of the investment advisory and shareholder servicing fees were waived. Had these waivers not been in effect, the performance quoted would have been lower.

An investor should consider the fund's investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the investment company can be found in the fund's prospectus. To obtain a prospectus, please call 1-800-782-8183. Please read the prospectus carefully before investing or sending money.