Sections 1471 through 1474 of the Internal Revenue Code (commonly known as “FATCA”) generally impose withholding of 30% on certain payments to certain foreign entities (including financial intermediaries) unless various U.S. information reporting, diligence requirements and certain other requirements have been satisfied. Payments subject to withholding generally will include interest (including original issue discount), dividends, rents, annuities, and other fixed or determinable annual or periodical gains, profits or income, if such payments are derived from U.S. sources, as well as gross proceeds from dispositions of securities that could produce U.S. source interest or dividends. FATCA withholding generally applies to these payments made after June 30, 2014, or, in the case of payments of gross proceeds described above, after December 31, 2016.
Generally, to avoid withholding, FATCA requires that (i) in the case of a foreign financial entity, the entity identify and provide information in respect of financial accounts with such entity held (directly or indirectly) by United States persons and United States-owned foreign entities, and (ii) in the case of a non-financial foreign entity, the entity identify and provide information in respect of substantial United States owners of such entity. Various requirements and exceptions are provided under FATCA and additional requirements and exceptions may be provided in subsequent guidance. Further, the United States has entered into (and may enter into more) intergovernmental agreements (“IGAs”) with foreign governments relating to the implementation of, and information sharing under, FATCA and such IGAs or the laws effecting them may alter one or more of the FATCA requirements.
Effective July 1, 2014, each Fund will be required to withhold U.S. tax ( at a 30% rate) on payments of dividends and redemption proceeds made to certain non-U.S. entities that fail to comply with extensive new reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned foreign investment accounts. Shareholders may be requested to provide additional information to the Fund(s), they are invested, to enable the respective Fund(s) to determine whether withholding is required. In addition, the respective Fund(s) may disclose tax related information to any local or foreign regulatory or tax authority.
There is no assurance that a portfolio will achieve its investment objective. In addition, there is no guarantee that any investment strategy will work under all market conditions, and each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the portfolio will decline. Accordingly, an investor can lose money investing. Investments in foreign markets entail special risks such as currency, political, economic, and market risks. The risks of investing in emerging-market countries are greater than the risks generally associated with foreign investments. Frontier market countries generally have smaller economies and even less developed capital markets or legal and political systems than traditional emerging market countries. As a result, the risks of investing in emerging market countries are magnified in frontier market countries. Fixed income securities are subject to credit and interest-rate risk. Investing in RMB-denominated debt instruments that may be issued by issuers located in Hong Kong and China or multi-national issuers with subsidiaries in Hong Kong or China, may involve special risks including but not limited to currency risk, political and economic risk. For complete risk considerations, which should be considered carefully along with the portfolio's investment objectives and fees before investing, please refer to the fund's prospectus.
For more information, please call the HSBC Funds at 1-800-782-8183. For institutional clients or advisors, please call 1-888-936-4722. For clients of HSBC Securities (USA) Inc., please call 1-888-525-5757. You can download the fund prospectus from this site. Investors should carefully consider the investment objectives and risks as well as charges and expenses of the mutual fund before investing. The prospectus contains this and other information about the mutual fund.
Investors should read the prospectus carefully before investing or sending money.
The views, opinions and statements of financial market trends herein are based on current market conditions are those of HSBC Global Asset Management and are subject to change without notice. We believe the information provided here is reliable but should not be assumed to be accurate or complete. The views and strategies described may not be suitable for all investors. These views do not necessarily reflect the opinions of our affiliates and may differ by product or strategy.
HSBC Global Asset Management is the marketing name for the asset management businesses of HSBC Holdings Plc. HSBC Global Asset Management (USA) Inc. serves as the investment adviser to the HSBC Funds. Securities are offered through HSBC Securities (USA) Inc. memberFINRA/NYSE/SIPC. Foreside Distribution Services, L.P., memberFINRA, is the distributor of the U.S. mutual funds and is not affiliated with the Adviser. Affiliates of HSBC Global Asset Management (USA) Inc. receive fees for providing various services to the funds.
Investment products are offered by HSBC Securities (USA) Inc. (HSI), member NYSE/FINRA/SIPC. HSI is an affiliate of HSBC Bank USA, N.A. Investment products: Are not a deposit or other obligation of the bank or any of its affiliates; Not FDIC insured or insured by any federal government agency of the United States; Not guaranteed by the bank or any of its affiliates; and are subject to investment risk, including possible loss of principal invested.
|ARE NOT A BANK DEPOSIT OR
OBLIGATION OF THE BANK OR ANY OF ITS
|ARE NOT FDIC
|ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
||ARE NOT GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES
All decisions regarding the tax implications of each investor's investment(s) should be made in connection with each investor's independent tax advisor.