Investment Performance

Risk Disclosure for LifeInvest Protection Plus/RetireInvest Protection Plus Plan/Saving Protection Plus/Super Life, LifeInvest Protection Plan (10 Years Maximiser) and WealthInvest Insurance Plan/WealthInvest Life Plan:

1. Investment involves risks. Each investment choice is subject to market value fluctuations and to the risks inherent in all investments. The investment choices available under the plan can have very different features and risk profiles. Some may be of high risk. Past performance is no guide to future performance of the investment choices. The price of units in any investment choice or the income from them (if any) may go down as well as up.
2. The underlying investment may involve multiple currencies, the value of investment may be subject to possible exchange rate fluctuations/risks.
3. Investment choices which are invested in certain markets and companies (e.g. emerging markets, commodity markets and smaller companies, etc) may also involve a higher degree of risk and are usually more sensitive to price movements.
4. The underlying funds of the plan may involve derivatives. Do not invest in it unless you fully understand and are willing to assume the risks associated with it. This instrument can be highly volatile and expose you to a high risk of loss. For details of the underlying funds, please refer to the relevant offering document which will be made available by the Company.
5. The potential return on investments under the plan will be subject to the charges of the plan and may be lower than the return of the Investment Choices or the underlying funds. (Applicable to WealthInvest Insurance Plan and WealthInvest Life Plan only)
6. Base currency of the underlying funds is the US dollars/HK dollars, except HSBC Life Fidelity Euro Bond and HSBC Life Fidelity European Growth Fund which are denominated in euro. Since the underlying investment may involve multiple currencies, investment returns not denominated in HKD or USD are exposed to exchange rate fluctuations. Rates of exchange may cause the value of investments to go up or down. (Applicable to LifeInvest Protection Plus/RetireInvest Protection Plus Plan/Saving Protection Plus/Super Life only)
7.  Investment choices that may distribute cash dividend (if any) on a regular basis have "(DistC)" next to their names (hereafter referred to as "Investment Choice(s) (Cash Distribution)"). If you choose to invest in the Investment Choice(s) (Cash Distribution), you will receive cash dividend(s) pursuant to clauses D4(b) and D4(c) of WealthInvest Insurance Plan provisions and clauses C4(b) and C4(c) of WealthInvest Life Plan provisions after we have received cash dividend(s) (if any) from the corresponding underlying fund(s). Important information about the Investment Choices (Cash Distribution) is as follows:
   
   a) The distribution of dividends, the frequency of distribution, and the amount or rate of dividends of the Investment Choice(s) (Cash Distribution) are not guaranteed; b) The underlying fund(s) linked to Investment Choice(s) (Cash Distribution) may at its discretion pay dividends out of capital, i.e. payment out of the original investment or out of any income generated from such investment. Such payment amounts to a return of part of the original investment or a withdrawal from any capital gains attributable to such investment. At the same time, the underlying fund(s) may also charge all or part of its fees/expenses out of capital the same way described above. These may result in an immediate reduction of the net asset value per unit of the corresponding underlying fund(s) after the distribution date, which may have a negative impact on the unit price of the respective Investment Choice(s) (Cash Distribution). Please also note that a positive distribution yield does not imply a positive return;
   c) In comparison to investment choices that distribute dividends by crediting into the Plan in the form of additional notional units of such investment choices and reinvest such dividend, Investment Choice(s) (Cash Distribution) pay out cash dividend (if any) which may reduce the account value and hence the death benefit payable for WealthInvest Insurance Plan and WealthInvest Life Plan. If the account value of WealthInvest Insurance Plan is negative for forty-five consecutive calendar days, or when the Guaranteed Coverage Privilege period (if applicable) is expired, your policy will lapse.  The lapse event (i) in the preceding sentence may not take place if certain conditions are satisfied, please refer to clauses A6 and A7 of the WealthInvest Insurance Plan’s provisions for such conditions, as well as for other terms and conditions relating to lapse triggers. You may also refer to sections "Termination of policy" and "Guaranteed Coverage Privilege" of the WealthInvest Insurance Plan’s product brochure for more information / If the account value of WealthInvest Life Plan is insufficient to cover all relevant charges for forty-five consecutive calendar days while your policy is in force, your policy will lapse. For the relevant terms and conditions, please refer to the clause A6 of the WealthInvest Life Plan’s provisions.You may also refer to section "Termination" of WealthInvest Life Plan’s product brochure for more information;
   d) The amount of dividend paid by the Investment Choice(s) (Cash Distribution) and the corresponding underlying funds’ information such as dividend composition information of the underlying funds for the last 12 months are made available by us upon request without any charges. In addition, such information is available on our website, you can visit our website (please go to www.hsbc.com.hk > Insurance > Investment Performance) to read the section "Cash Dividend Distribution Record";
   e) We may amend the distribution policy of WealthInvest Insurance Plan and WealthInvest Life Plan (including its investment choices), subject to Securities and Futures Commission’s prior approval and by giving not less than one month’s prior notice to investors; and
   f) You should not select the Investment Choice(s) (Cash Distribution) unless you understand the details of its corresponding underlying fund(s) (including, without limitation, the investment objectives and policies, risk factors and charges, which may include but not limited to administrative fee, trustee fee, fund maintenance fee, management fee and custodian fee of the underlying fund(s)).
8. Please refer to the relevant Principal Brochure and policy for details including fees and charges.

Risk Disclosure for HSBC Wealth Select Protection Linked Plan

1. The following investment choices are available for HSBC Wealth Select Protection Linked Plan (the “Plan” or “your Policy” or the “Policy” or the “ILAS Policy”), which is an investment-linked insurance plan issued by HSBC Life (International) Limited (Incorporated in Bermuda with limited liability) (“the Company” or “we” or “us”). Policyholder is referred to as “you” or “your”.
2. HSBC Wealth Select Protection Linked Plan is an insurance policy issued by us, which is not equivalent or similar to any kind of bank deposit. The premium you pay, after deduction of any fees and charges applicable to the Plan, will be invested by the Company in the underlying fund(s) corresponding to your selected investment choices. Your investments are therefore subject to the credit risks of the Company.
3. The premiums you pay towards the insurance policy will become part of the assets of the Company. You do not have any rights or ownership over any of those assets. Your recourse is against the Company only.
4. Your potential return on investments is calculated or determined by the Company with reference to the performance of the underlying funds corresponding to the investment choices you selected. Due to the various fees and charges levied by the Company on the ILAS Policy, the potential return on the Policy as a whole may be lower than the return of the underlying fund corresponding to the investment choices you selected. You are subject to the investment risk.
5. The account value of the ILAS Policy will be calculated by the Company based on the performance of the underlying funds corresponding to the investment choices you selected from time to time and the ongoing fees and charges which will continue to be deducted from the ILAS Policy. The units of each investment choices allocated to the ILAS Policy are notional and solely for determining the account value and benefits under the ILAS Policy.
6. More importantly, you should be aware of the following regarding your death benefit and the insurance charges:
   -    Part of the fees and charges you pay will be deducted from the value of the ILAS Policy and will be used to cover the insurance charges for the life coverage.
   -    The insurance charges will reduce the amount that may be applied towards the account value in the underlying funds of the investment choice(s) selected.
   -    The insurance charges may increase significantly during the term of the ILAS Policy due to factors such as age and investment losses, etc. This may result in significant or even total loss of your premiums paid.
   -    If the value of the ILAS Policy becomes insufficient to cover all the ongoing fees and charges, including the insurance charges, the ILAS Policy may be terminated early and you could lose all your premiums paid and benefits.
   -    You should consult your intermediary for details, such as how the charges may increase and could impact the value of the ILAS Policy.
7. The investment choices available under the Policy can have very different features and risk profiles. Some may be of high risk. Underlying funds available for selection are listed in the Investment Choice Brochure. The Plan is classified under Class C linked long-term business, as defined in the Insurance Ordinance. It is not a fund authorised by the Securities and Futures Commission of Hong Kong (the “SFC”) pursuant to the Code on Unit Trusts and Mutual Funds (“UT Code”). The Company is subject to the prudential regulation of the Insurance Authority and the Plan has been authorised by the SFC. SFC authorisation does not imply official recommendation or endorsement of HSBC Wealth Select Protection Linked Plan nor does it guarantee the commercial merits of the Plan or its performance. It does not mean the Plan is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.
8. Early surrender / partial withdrawal penalty - The ILAS Policy is designed to be held for a long term period. Early surrender or partial withdrawal of the Policy / policy termination may result in a significant loss of principal, bonuses awarded and/or sustainability of the Policy. Poor performance of underlying funds corresponding to the investment choices may further magnify your investment losses, while all fees and charges are still deductible.
9. Investment involves risk.
   -    You should not purchase the ILAS Policy unless you understand it and it has been explained to you how it is suitable for you. You should read the offering documents for the Plan and underlying funds corresponding to the investment choices you selected, which are made available by the Company upon request. The final decision is yours.
   -    Each investment choice is subject to market value fluctuations and to the risks inherent in all investments. The unit price or the income (if any) from each investment choice may go down as well as up. Please read the Principal Brochure and the offering documents for the underlying funds corresponding to the investment choices involved for details. The past performance of each investment choice is not indicative of any future performance. Specific investment-related risk factors include:
   -    Market risks - Return of the ILAS Policy is contingent upon the performance of the underlying funds, which will fluctuate, and therefore there is a risk of capital loss.
   -    Foreign exchange risks - The investment return of the ILAS Policy may be subject to foreign exchange risks as some of the underlying funds or the assets within such funds may be denominated in a currency which is different from that of the ILAS Policy.
   -    Specific risks - Investment choices which are invested in certain markets and companies (eg emerging markets, commodity markets and smaller companies, etc) may also involve a higher degree of risk and are usually more sensitive to price movements.
   -    Risk associated with Risk Matching and De-risking Service – Risk Matching and De-risking Service (“Service”) is an optional service and you are free to opt in (or opt out) the Service at policy inception or at any time after the policy is issued. After opting in the Service, you will only be allowed to invest in one of the designated investment choices available under this Service in accordance with your risk profile. The Service adopts a pre-set de-risking process when you reach Age* 55. You should consider your own personal circumstances (including your risk profile and retirement plan) before opting in for this Service. If you are in doubt as to whether the Service is suitable for you, you should seek financial and/or professional advice.
10. Investment choices with “(DistC)” next to their names are investment choices that may distribute cash dividend (if any) on a regular basis (hereafter referred to as “Investment Choice(s) (Cash Distribution)”). Important information about the Investment Choice(s) (Cash Distribution):
    -    The distribution of dividends, the frequency of distribution, and the amount or rate of dividends of the Investment Choice(s) (Cash Distribution) are not guaranteed;
    -    The underlying fund(s) corresponding to Investment Choice(s) (Cash Distribution) may at its discretion pay dividends out of capital, ie payment out of the original investment or out of any income generated from such investment. Such payment amounts to a return of part of the original investment or a withdrawal from any capital gains attributable to such investment. At the same time, the underlying fund(s) may also charge all or part of its fees/expenses out of capital in the same way as described above. These may result in an immediate reduction of the net asset value per Unit of the corresponding underlying fund(s) after the distribution date, which may have a negative impact on the unit price of the respective Investment Choice(s) (Cash Distribution). Please also note that a positive distribution yield does not imply a positive return;
    -    In comparison to investment choice(s) that do not distribute dividends, Investment Choice(s) (Cash Distribution) pay out cash dividend (if any) which may reduce the account value and hence the death benefit payable for the Plan. Your Policy will lapse if the account value of the Plan remains negative (i) for forty-five consecutive calendar days, and (ii) when the Guaranteed Coverage Privilege period (if applicable) has expired. The lapse event of (i) in the preceding sentence may not take place if conditions applicable to Guaranteed Coverage Privilege are satisfied. Please refer to “Guaranteed Coverage Privilege” under Section A – Plan features of the Product Brochure and policy documents for more information;
    -    The dividend amounts paid by the Investment Choice(s) (Cash Distribution) and the corresponding underlying fund(s)’ information such as dividend composition information of the underlying funds for the last 12 months are made available by the Company upon request without any charges. In addition, from the date of the launch of the Investment Choice(s) (Cash Distribution), such information is available on our website. You can visit our website (please go to www.hsbc.com.hk > Insurance > Investment Performance) to read the section “Cash Dividend Distribution Record”;
    -    We may amend the distribution policy of the Plan (including its investment choices), subject to Securities and Futures Commission’s prior approval and by giving not less than one month’s prior notice to you;
    -    You should not select any Investment Choice(s) (Cash Distribution) based solely on information contained herein. You should read the offering documents of the Plan and the relevant offering documents (including the Product Key Facts Statement) of the corresponding underlying fund(s) of Investment Choice(s) (Cash Distribution) for further details including the risk factors, which will be made available by the Company upon request without any charges; and;
    -    For the operational arrangements for the distribution of cash dividend (if any) for the Investment Choice(s) (Cash Distribution), you can refer to Appendix of the Investment Choice Brochure for details.
11. Please refer to the relevant Principal Brochure and policy for details including fees and charges.
    
    *Age means on policy effective date or on policy anniversary, the Age of the policyholder at the policyholder’s next birthday. The Age will remain the same during the corresponding policy year until next policy anniversary.