Fund Subscription Transactions Executed From Current Account

HSBC Asset Management Funds with Future Settlement Date (HSA, HBU, HVS, HTT, HST, HBF, HOB, HSV): Subscription orders placed between 09:00-13:30 on a trading day (T), will be executed on the following trading day (T+1) with the price announced at the end of the trading day (T). Subscription orders placed between 13:30-24:00 on a trading day (T), will be executed on the following second trading day (T+2) with the price announced on evening of the next trading day (T+1). When you give subscription order for a fund, your amount will be invested to HSBC Asset Management Money Market Fund until the fund shares you requested are transferred to your account. Fund units which will be transferred to your account will be equal to your amount that was invested with HSBC Asset Management Money Market Fund plus accumulated interest divided by number of fund shares.
HSBC Asset Management Multi Asset Cautious (First Variable) Fund (HPO), HSBC Asset Management Multi Asset Balanced (Second Variable) Fund (HPD), HSBC Asset Management Multi Asset Dynamic (Third Variable) Fund (HOA) and HSBC Asset Management Global ETF Fund Basket Fund (HOY): Subscription orders given until 13:30 on the working days (T) will be realized with the share price announced next working day (T+1) at 10:00 and the order will be executed next working day (T+1). Subscription order given between 13:30 and 24:00 will be realized with the share price announced on the following second working day (T+2) at 10:00 and the order will be executed on the following second day (T+2). When you give subscription order for a fund, your amount will be invested to HSBC Asset Management Money Market Fund until the fund shares you requested are transferred to your account. Fund units which will be transferred to your account will be equal to your amount that was invested with HSBC Asset Management Money Market Fund plus accumulated interest divided by number of fund shares.
HSBC Asset Management Money Market Fund and HSBC Asset Management Short Term Fixed Income Fund: Prices of HSBC Asset Management Money Market Fund and HSBC Asset Management Short Term Fixed Income Fund change at 18:00 during working days. Whilst subscription orders given between 24:00 - 18:00 are executed with the price of that day, subscription orders given between 18:00 – 24:00 are executed with the price of the next day. These funds are not traded on TEFAS Platform. Fund transactions can be executed 7/24, however subscription transactions executed between 13:46 and 18:00 on working days are executed within the daily limit TRY100.000 determined by our bank. This daily limit ends at 24:00 on working days and at 24:00 on the last day on weekends/public holidays. HSBC Asset Management Money Market Fund and HSBC Asset Management Short Term Fixed Income Fund subscribed after price change hour can be redeemed only after 24:00.
Non-HSBC Mutual Funds: Subscription orders of mutual funds of other financial institutions will be taken only within platform hours (For mutual funds with today settlement date on workdays 08:45-13:30, on half days 08:45-11:30; for mutual funds with future settlement date on workdays 08:45-17:30, on half days 08:45-12:30) according to trading rules of the financial institution whose fund is being traded.

Fund Subscription Transactions Executed From HSBC Securities Account

HSBC Asset Management Funds with Future Settlement Date (HSA, HBU, HVS, HTT, HST, HBF, HOB, HSV): Subscription orders placed between 09:00-13:30 on a trading day (T), will be executed on the next trading day (T+1) with the price announced at the end of trading day(T+1). When you give subscription order for a fund, your amount will be invested to HSBC Asset Management Money Market Fund until the fund shares you requested are transferred to your account. Fund units which will be transferred to your account will be equal to your amount that was invested with HSBC Asset Management Money Market Fund plus accumulated interest divided by number of fund shares.. Redemption-subscription orders for funds with future settlement date given from investment account cannot be executed after 13:30.
HSBC Asset Management Multi Asset Cautious (First Variable) Fund (HPO), HSBC Asset Management Multi Asset Balanced (Second Variable) Fund (HPD), HSBC Asset Management Multi Asset Dynamic (Third Variable) Fund (HOA) and HSBC Asset Management Global ETF Fund Basket Fund (HOY): Subscription orders given until 13:30 on the working days (T) will be realized with the share price announced next working day (T+1) at 10:00 and the order will be executed next working day (T+1). When you give subscription order for a fund, your amount will be invested to HSBC Asset Management Money Market Fund until the fund shares you requested are transferred to your account. Fund units which will be transferred to your account will be equal to your amount that was invested with HSBC Asset Management Money Market Fund plus accumulated interest divided by number of fund shares. For the multi asset funds, subscription orders given from investment accounts cannot be performed after 13:30.
HSBC Asset Management Money Market Fund and HSBC Asset Management Short Term Fixed Income Fund: Subscription transactions can be executed between 09:00 and 13:45 instantly. The price change time is 18:00 during work days. Subscription orders for HSBC Asset Management Money Market Fund and for HSBC Asset Management Short Term Fixed Income Fund from investment accounts are not accepted after 13:45.
Non HSBC Funds: Subscription orders of mutual funds of other financial institutions will be taken only within platform hours (For mutual funds with today settlement date on workdays 08:45-13:30, on half days 08:45-11:30). For non HSBC mutual funds, subscription orders given from investment accounts cannot be performed after 13:30.

Fundamental Risks for Mutual Funds

Market Risk: Because of the fluctuations in the price of financial assets, the portfolio value may decrease. Because of that reason, there may be loss in capital.
Interest Rate Risk: Fluctuation in interest rate may affect the yield and value of investments in debt instruments. Generally, if interest rates rise, the value of such investments may fall.
Country Risk: The economic, politic and social structure of a country ( where the investment is made) in addition to interest rate and exchange rate policies may have impact on the price of the fund. These could be currency restrictions, transfer risks, moratorium, tax regulations etc. Moreover, there can be fluctuations in the price of the fund because of the global economic and politic effects.
Credit Risk: Investments in the fund are subject to possible loss due to the potential financial failure of underlying securities and the potential inability of issuers to meet their obligations. The possibility of default is higher for corporate bonds than it is for government bonds.
Operational Risk: The risk that can be based on, directly or indirectly, the inadequate internal processes, people, systems and/or external agents. Investment process is being overseen by internal control and risk management. Additionally, this process is being inspected by regulatory authorities.
Exchange Rate Risk: It is defined as the risk of closing out the long or short foreign currency positions due to sudden fluctuations in exchange rates. The funds that invest on foreign currency type of assets have the exchange rate risk.
Derivative Products: Derivatives can be utilized for the management of investment risk; however, derivative instruments may not be suitable for all investors, as there may be contingent liability transactions such as swaps. Fund portfolio can include currency, commodity, interest, financial indicator or financial instrument option, forward and future agreements in order to protect itself from risk or/and increase fund return. Risk to which fund is exposed cannot exceed total fund value. Derivative Products in fund portfolio should be compatible with fund’s investment strategy.
Counterparty Risk: Investors may have total or partial loss of the invested capital in mutual funds due to the bankruptcy or to the weakening financial status of the issuer. Mutual funds involve counterparty risk due to investment products held within the fund’s portfolio.
Liquidity Risk: In secondary markets, there is risk for investors who cash out their investment products. Liquidity risk is the risk that investors may have difficulty finding a buyer when they want to sell and may be forced to sell at a significant discount to market value. Mutual funds involve liquidity risk due to investment products held within the fund’s portfolio.