Fintech

Consolidating and assessing climate and transition risks within operations is growing in importance. To do this effectively, a new infrastructure may be required. Examples include: data sourcing, data management, risk decision, monitoring and reporting.

When sectors of the economy engage in transformation, financing tools must also evolve. Green bonds and loans are examples of such innovation, however alternative offerings tailored to smaller enterprises could be developed to better address their needs.

The effective management and mitigation of climate related risks is growing in importance. The employment of insurance is a significant feature within this discipline. Examples vary from large scale natural disaster insurance to building insurance, especially in geographies vulnerable to the repercussions of climate change.

Accessing financial services is still an issue for many individuals. Fostering financial inclusion and making banking and insurance services available to a greater proportion of the world population, represents an opportunity for fintechs to make a positive impact.

A variation of the financial inclusion theme is the distribution of insurance products through non-traditional channels. Embedded insurance is growing and will allow more people to protect their belongings, assets and even potentially their health.

Services such as wealth management and tailored health insurance are expensive propositions. New technologies will allow more individuals to benefit from these services. Such technologies could prove to be important in the wellbeing of certain individuals.

Regulation & Compliance is an ever evolving field. They are growing in variety and complexity and as a consequence, there is a growing appetite for innovation. fintechs can promote governance by helping businesses understand and effectively address regulations.

Effective client due diligence is significant when onboarding new clients. Innovation in financial crime risk management could grow in importance as decentralised finance and crypto-currencies change the nature of financial crime risks.

With growing global wealth, financial market infrastructure could be stretched in areas such as payments and capital markets. New technologies could be designed to facilitate more sustainable growth.

Investing involves risk and the value of an investment and the income from it may fall as well as rise. You may not get back the full amount invested.

Further information on the potential risks can be found in the Key Investor Information Document (KID) and/or the Prospectus or Offering Memorandum.

• Risk that the Fund may not meet its investment objective and policy: There is no guarantee that the Fund will meet its investment objective. The Fund’s ability to achieve its investment objective will depend in particular on, without limitation, the Fund successfully executing its investment objective and policy and the performance of the Investments. There can be no assurance as to the level of capital return and/or volatility over the Fund’s term
• Market Risk: The value of investments may be affected by political and economic news, government policy, changes in technology and business practices, changes in demographics, cultures and populations, natural or human-caused disasters, pandemics, weather and climate patterns, scientific or investigative discoveries, costs and availability of energy, commodities and natural resources. The effects of market risk can be immediate or gradual, short-term or long-term, narrow or broad
• Venture Capital Risk: Investment in unquoted companies often involves assuming higher levels of risk given their early stage of development and absence of liquidity
• Liquidity Risk: An investment in the Fund must be considered illiquid. The units of the Fund would not have a secondary market and there is generally no right to redeem.  Investors should be prepared to bear the risk of owning their interests in the Fund for an extended period
• Investors in alternatives products should bear in mind that these products can be highly speculative and may not be suitable for all clients. Investors should ensure they understand the features of the products and Fund strategies and the risks involved before deciding whether or not to invest in such products. Such investments are generally intended for investors who are willing to bear the risks associated with such investments, which can include: loss of all or a substantial portion of the investment, lack of liquidity in that there may be no secondary market for the Strategy and none may be expected to develop; volatility of returns; prohibitions and/or material restrictions on transferring interests in the Strategy; absence of information regarding valuations and pricing; delays in tax reporting; key man and adviser risk; limited or no transparency to underlying investments; limited or no regulatory oversight and less regulation and higher fees than mutual strategies
• Please note that alternatives related investments are generally illiquid, long term investments that do not display the liquid or transparency characteristics often found in other investments (e.g. listed securities). It can take time for money to be invested and for investments to produce returns after initial losses. As such alternatives related investments should be considered as a very high risk investment and are only suitable as part of a diversified portfolio. Before making such investments, prospective investors should carefully consider the risks set forth in the relevant investment documents. If you are in any doubt about the contents of the relevant investment documents you should consult your accountant, legal or professional adviser or financial adviser

The presented fund is not authorized for offering according to Art. 120 of the Federal Collective Investment Schemes Act in Switzerland (CISA). This material is exclusively intended towards professional investors within the meaning of Art. 4 para 3 letter a – g of the Swiss Financial Services Act (FinSA). It is not intended towards professional clients who are not institutional clients according to Art. 4 para 4 FinSA and who wish to declare to be treated as retail clients according to Art. 5 para 5 FinSA (opting in), furthermore this product is not intended towards High-net-worth retail clients and private investment structures created for them that may declare that they wish to be treated as professional clients (opting out). There are further possibilities with regards to opting in and opting out according to FinSA, please refer to our website at https://www.assetmanagement.hsbc.ch/ if you wish to change your client categorization, please inform us.

HSBC Global Asset Management (Switzerland) AG having its registered office at Gartenstrasse 26, PO Box, CH-8002 Zurich has a licence as an asset manager of collective investment schemes and as a representative of foreign collective investment schemes. Disputes regarding legal claims between the Client and HSBC Global Asset Management (Switzerland) AG can be settled by an ombudsman in mediation proceedings. HSBC Global Asset Management (Switzerland) AG is affiliated to the ombudsman FINOS having its registered address at Talstrasse 20, 8001 Zurich. There are general risks associated with financial instruments, please refer to the Swiss Banking Association (“SBA”) Brochure “Risks Involved in Trading in Financial Instruments”.