HSBC Global Asset Management Hong Kong Limited

Item 5: Fees and Compensation
A. ADVISORY FEES AND COMPENSATION

AMHK typically charges an asset-based fee for our advisory services, meaning a fee based on the
percentage of the value of assets under management. Fees for segregated and advisory mandates
are negotiable and a minimum fee may apply subject to various factors including assets under
management and type(s) of investments and client services required. All fee arrangements for
segregated and advisory mandates are discussed and agreed with the client as part of the
Investment Management Agreement.

B. BILLING METHOD AND FREQUENCY

For US clients, fees are calculated based on the account’s average market value for the quarter.
Generally, the market value for the period is based on an average of the account’s assets on the
last business day of each month in the quarter, as stated on the client’s custodian statements. US
clients are billed quarterly and pay the management fees in arrears.

C. OTHER FEES AND EXPENSES

US clients can also incur the following fees and charges in connection with the portfolio
management and advisory services that we offer:

   •       Brokerage fees
   •       Custodian fees
   •       Foreign exchange spreads
   •       Stamp duty
   •       Levy
   •       Regarding ETF investments, underlying investment adviser, custodian and
           administrator fees

These other fees and expenses are paid by the client to others, including other service providers.
For example, AMHK does not charge commissions nor spreads, which are charged by broker-
dealers, on transactions undertaken for US clients’ portfolios under management or advice. Clients
are responsible for paying brokerage and other transaction costs and fees. Please refer to Item 12
of this Brochure for details.

HSBC Global Asset Management (Hong Kong) Limited
Firm Brochure - Form ADV Part 2A
                                                                                                     |PUBLIC|
                                            PUBLIC

Item 7: Types of Clients
AHMK offers investment advisory/sub-advisory services to varying types of clients that can
include:

   •      Government and government agencies
   •      Pensions/retirement funds
   •      Corporations
   •      Insurance companies
   •      Financial institutions
   •      Investment funds or companies
   •      Charities
   •      Other investment advisers

AMHK will consider new segregated accounts with a minimum client revenue of USD 150,000
per annum.

HSBC Global Asset Management (Hong Kong) Limited
Firm Brochure - Form ADV Part 2A
                                                                                                 |PUBLIC|
                                           PUBLIC