Terms and Conditions of Use
| Privacy and Data Protection Statement
HSBC USA Inc., HSBC Bank USA, N.A. and HSBC Securities (USA) Inc. (together, “HSBC”, “we” or “us”), are members of the HSBC Group. Any member of the HSBC Group may from time to time underwrite, make a market or otherwise buy and sell, as principal, structured investments, or together with their directors, officers and employers may have either long or short positions in the structured investments, or stocks, commodities or currencies to which the structured investments are linked, or may perform or seek to perform investment banking services for those linked assets
mentioned herein. These activities may be in conflict with the interests of investors of debt obligations or certificates of deposit issued by members of the HSBC Group.
The Index may be partially uninvested. The strategy tracks the excess return of a notional dynamic basket of exchange-traded funds (“ETFs”) and cash over the Secured Overnight Financing Rate (“SOFR”) accrued daily (a “Cash Investment”). The weight of a Cash Investment (if any) for a 1-month portfolio (a Monthly Reference Portfolio”) at any given time represents the portion of the Monthly Reference Portfolio that is uninvested in the applicable ETF basket at that time. As such, any allocation to a Cash Investment within the Index, which also accrues at SOFR, will not affect the level of the Index. The Index will reflect no return for any uninvested portion (i.e., any portion represented by a Cash Investment). Accordingly, to the extent that the Index is allocated to the Cash Investment, it may not reflect the full increase of any relevant ETF basket. Under certain circumstances, the Index may be 100% allocated to the Cash Investment.
Important Disclaimer Information
HSBC USA Inc. and HSBC Bank USA, N.A. (together, “HSBC”), are members of the HSBC Group. Any member of the HSBC Group may from time to time underwrite, make a market or otherwise buy and sell, as principal, structured investments, or together with their directors, officers and employers may have either long or short positions in the structured investments, or stocks, commodities or currencies to which the structured investments are linked, or may perform or seek to perform investment banking services for those linked assets mentioned herein. These activities may be in conflict with the interests of investors of debt obligations or certificates of deposit issued by members of the HSBC Group.
The AI Powered Multi Asset Index 5 (“AiMAX5”) may be partially uninvested. The strategy tracks the excess return of an underlying notional portfolio of exchange-traded funds and cash (the “Portfolio” and the “ETFs”, respectively) over a change in the SOFR rate plus a spread of 0.24%. The weight of a “Cash Investment” (if any) for the Portfolio at any given time represents the portion of the Portfolio that is uninvested in the ETFs at that time. As such, any allocation to a Cash Investment within the Portfolio, which also accrues at the SOFR rate plus a spread of 0.24%, will not affect the level of AiMAX5. AiMAX5 will reflect no return for any uninvested portion (i.e., any portion represented by a Cash Investment). Accordingly, to the extent that AiMAX5 is allocated to the Cash Investment, it may not reflect the full increase of any relevant equity component. Under certain circumstances, AiMAX5 may be 100% allocated to the Cash Investment.
This website is for informational purposes only and intended to provide a general overview of AiMAX5 and does not provide the terms of any specific issuance of structured investments. The material presented does not constitute and should not be construed as a recommendation to enter into a securities or derivatives transaction. Prior to any decision to invest in a specific structured investment, investors should carefully review the disclosure documents for such issuance which contains a detailed explanation of the terms of the issuance as well as the risks, tax treatment and other relevant information.
Investing in financial instruments linked to AiMAX5 is not equivalent to a direct investment in any part of AiMAX5. Investments linked to AiMAX5 require investors to assess several characteristics and risk factors that may not be present in other types of transactions. In reaching a determination as to the appropriateness of any proposed transaction, clients should undertake a thorough independent review of the legal, regulatory, credit, tax, accounting and economic consequences of such transaction in relation to their particular circumstances. This website contains market data from various sources other than us and our affiliates, and, accordingly, we make no representation or warranty as to the market data’s accuracy or completeness and we are not obligated to update any market data presented in this website. All information is subject to change without notice. We or our affiliated companies may make a market or deal as principal in the investments mentioned in this website or in options, futures or other derivatives based thereon.
Solactive AG is the administrator and calculation agent of AiMAX5. The financial instruments that are based on AiMAX5 are not sponsored, endorsed, promoted or sold by Solactive AG in any way and Solactive AG makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the financial instruments; (b) the quality, accuracy and/or completeness of AiMAX5; and/or (c) the results obtained or to be obtained by any person or entity from the use of AiMAX5. Solactive AG does not guarantee the accuracy and/or the completeness of AiMAX5 and shall not have any liability for any errors or omissions with respect thereto. Solactive AG reserves the right to change the methods of calculation or publication and Solactive AG shall not be liable for any miscalculation of or any incorrect, delayed or interrupted publication with respect to AiMAX5. Solactive AG shall not be liable for any damages, including, without limitation, any loss of profits or business, or any special, incidental, punitive, indirect or consequential damages suffered or incurred as a result of the use (or inability to use) of AiMAX5.
Use of Simulated Returns
Any historical performance information included in this website prior to March 5, 2021 represents only hypothetical historical results. No representation is being made that AiMAX5 will achieve a performance record similar to that shown. In fact, there may often be sharp differences between hypothetical performance and actual performance. Back-testing and other statistical analysis material provided to you in connection with the explanations of the potential returns associated with an investment in a debt obligation or certificate of deposit linked to AiMAX5 use simulated analysis and hypothetical assumptions in order to illustrate the manner in which AiMAX5 may have performed in periods prior to the actual existence of AiMAX5. Alternative modelling techniques or assumptions may produce different hypothetical information that might prove to be more appropriate and that might differ significantly from the hypothetical information set forth above.
The back-tested data was produced by applying AiMAX5’s methodology to historical levels of SOFR and, depending on the extent of the back-tested data, historical prices of the ETFs that comprise the Portfolio, including information and sources available at each specific point of time in history. However, some of the ETFs in the Portfolio commenced after the start of the back-tested data, depending on the extent of the backtesting. In those cases, the historical levels of a the ETF’s respective underlying index were used to create the back-tested data, or historical levels of a proxy index if the respective underlying index of the relevant ETF was not available prior to the back-tested date, in each case adjusted to account for the expense ratio of the relevant ETF. New information and sources were incorporated one timestep at a time and only information with validated time stamps was considered. As noted in the risk factors above, SOFR commenced publication on April 2, 2018. Any back-tested data prior to that time is hypothetical and used the federal funds rate plus a spread as described above.
The results obtained from “back-testing” information should not be considered indicative of actual results that might be obtained from an investment or participation in a financial instrument or transaction referencing AiMAX5. You should not place undue reliance on the “back-testing” information, which is provided for illustrative purposes only. HSBC provides no assurance or guarantee that AiMAX5 will operate or would have operated in the past in a manner consistent with the results presented in these materials. Hypothetical back-tested results are neither an indicator nor a guarantee of future returns. Actual results will vary, perhaps materially, from the analysis implied in the hypothetical information. You should review and consider the hypothetical information only with the full AiMAX5 methodology.
HSBC operates in various jurisdictions through its affiliates, including, but not limited to, HSBC Securities (USA) Inc., member of NYSE, FINRA and SIPC.
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