AboutAiPEX6 TheAIPoweredUSEquityIndexesarethefirstandonlyrules-basedequitystrategiestouseIBMWatson’sArtificialIntelligence(“AI”)capabilitiestoturndataintoinvestmentinsight.AiPEX6isariskcontrolled,excessreturnindex,developedbyHSBCandEquBotInc.AiPEX6iscomprisedofpubliclytradedcompanies,selectedusingobjectiveartificialintelligencetechniquestodynamicallycreatetheportfolioonamonthlybasis. IndexReturnSummary:Historical&Simulated* 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1000 1500 2000 2500 IndexOverview Website:aipex6.gbm.hsbc.comBloombergTicker:AIPEX6IndexGeographicalFocus:UnitedStatesLaunchDate:11/19/2019TypeofReturn:ExcessReturnIndexSponsor:EquBot,Inc.IndexCalculationAgent:SolactiveAGIndexFee:0.85%peryear IndexPerformance:Historical&Simulated* 1Month1.02%YTD1.02%1Y-3.34%3Y-1.02%5Y-2.41%10Y52.35%10YAnnualizedVolatility5.95%10YSharpeRatio0.00CumulativeReturn124.15% Top10Holdings:Asof1/31/2023 IndexWeight(%)SectorCONOCOPHILLIPS7.1%EnergyMineralsCATERPILLARINC5.5%ProducerManufacturingMODERNAINC4.1%HealthTechnologySCHWAB(CHARLES)CORP3.3%FinanceILLINOISTOOLWORKS1.7%ProducerManufacturingALLSTATECORP1.6%FinanceMONGODBINC1.5%TechnologyServicesHALLIBURTONCO1.4%IndustrialServicesTRADEDESKINC/THE-CLASSA1.4%TechnologyServicesLAMBWESTONHOLDINGINC1.3%ConsumerNon-DurablesTotal29.0% AnnualIndexPerformance:Historical&Simulated* 200620072008200920102011201220132014201520162017201820192020202120224.5%7.8%-5.6%12.3%8.8%-0.5%4.9%19.3%5.8%-0.5%5.6%17.0%-2.5%5.7%3.3%2.4%-7.6% *Source:Solactive,EquBot,HSBC,Bloomberg,from04/30/2004to1/31/2023.Thegraphandtablesabovesetforththehypotheticalback-testedperformanceoftheIndexfromApril30,2004throughNovember19,2019andactualindexperformancethereafter.Seetheriskfactorsand“UseofSimulatedReturns”herein. ISSUERFREEWRITINGPROSPECTUSFiledPursuanttoRule433RegistrationNo.333-253385February01,2023 MonthlyPerformanceReport-January2023 |
Top10SectorAllocations 1.94% 15.99% 7.02% 3.83% 10.70% 14.88% 4.45% 14.80% 3.79% 5.22% 2.32% 10.15% 2.38% 9.81% 20.15% 12.30% 11.96% 7.14% 6.43% 4.25% 0 5 10 15 20 Transportation Technology Services Retail Trade Producer Manufacturing Health Technology Finance Energy Minerals Electronic Technology Consumer Services Consumer Non-Durables Portfolio SolactiveUSLarge&MidCapIndex ContributionstoReturn 0.14% 1.36% 0.69% 0.26% -0.18% 1.15% 0.1% 1.4% 0.5% -0.07% -0.01% 0.2% -0.02% 0.11% -0.12% 0.23% 0.31% 0.01% 0.32% -0.0% −0.5 0 0.5 1 1.5 Transportation Technology Services Retail Trade Producer Manufacturing Health Technology Finance Energy Minerals Electronic Technology Consumer Services Consumer Non-Durables Portfolio SolactiveUSLarge&MidCapIndex DailyRiskControlAllocation-Historical&Simulated* Asof1/31/20233YAverage5YAverage10YAverageEquityPortfolio25.23%27.05%33.24%41.97%Cash74.77%72.95%66.76%58.03% *Source:Solactive,EquBot,HSBC,Bloomberg,from04/30/2004to1/31/2023.Thegraphandtablesabovesetforththehypotheticalback-testedperformanceoftheIndexfromApril30,2004throughNovember19,2019andactualindexperformancethereafter.Seetheriskfactorsand“UseofSimulatedReturns”herein. RisksRelatingtotheIndex HSBCUSAInc.andHSBCBankUSA,N.A.(together,“HSBC”),aremembersoftheHSBCGroup.AnymemberoftheHSBCGroupmayfromtimeto timeunderwrite,makeamarketorotherwisebuyandsell,asprincipal,structuredinvestments,ortogetherwiththeirdirectors,officersandemployersmayhaveeitherlongorshortpositionsinthestructuredinvestments,orstocks,commoditiesorcurrenciestowhichthestructuredinvestmentsarelinked,ormayperformorseektoperforminvestmentbankingservicesforthoselinkedassetsmentionedherein.TheseactivitiesmaybeinconflictwiththeinterestsofinvestorsofdebtobligationsorcertificatesofdepositissuedbymembersoftheHSBCGroup. TheIndexmaybepartiallyuninvested.ThestrategytrackstheexcessreturnofanotionaldynamicbasketofequitiesandcashoverachangeintheICELIBORUSD3Monthinterestrate.TheweightofaCashInvestment(ifany)foraMonthlyReferencePortfolioatanygiventimerepresentstheportionoftheMonthlyReferencePortfoliothatisuninvestedintheapplicableequitybasketatthattime.Assuch,anyallo cationtoaCashInvestmentwithintheIndex,whichalsoaccruesattheICELIBORUSD3Monthinterestrate,willnotaffecttheleveloftheIndex.TheIndexwillreflectnoreturnforanyuninvestedportion(i.e.,anyportionrepresentedbyaCashInvestment).Accordingly,totheextentthattheIndexisallocatedtotheCashInvestment,itmaynotreflectthefullincreaseofanyrelevantequitycomponent.Undercertaincircumstances,theIndexmaybe100%allocatedtotheCashInvestment. ImportantDisclaimerInformation ThisdocumentisforinformationalpurposesonlyandintendedtoprovideageneraloverviewoftheAIPow-eredUSEquityIndexanddoesnotprovidethetermsofanyspecificissuanceofstructuredinvestments.Thematerialpresenteddoesnotconstituteandshouldnotbeconstruedasarecommendationtoenterintoasecuritiesorderivativestransaction.Priortoanydecisiontoinvestinaspecificstructuredinvestment,investorsshouldcarefullyreviewthedisclosuredocumentsforsuchissuancewhichcontainsadetailedexplanationofthetermsoftheissuanceaswellastherisks,taxtreatmentandotherrelevantinformation. InvestinginfinancialinstrumentslinkedtotheAIPoweredUSEquityIndexisnotequivalenttoadirectin-vestmentinanypartoftheAIPoweredUSEquityIndex.InvestmentslinkedtotheAIPoweredUSEquityIndexrequireinvestorstoassessseveralcharacteristicsandriskfactorsthatmaynotbepresentinothertypesoftransactions.Inreachingadeterminationastotheappropriatenessofanyproposedtransaction,clientsshouldundertakeathoroughindependentreviewofthelegal,regulatory,credit,tax,accountingandeconomicconsequencesofsuchtransactioninrelationtotheirparticularcircumstances.Thisbrochurecontainsmarketdatafromvarioussourcesotherthanusandouraffiliates,and,accordingly,wemakenorepresentationorwarrantyastothemarketdata’saccuracyorcompletenessandwearenotobligatedtoupdateanymarketdatapresentedinthisdocument.Allinformationissubjecttochangewithoutnotice.Weorouraffiliatedcompaniesmaymakeamarketordealasprincipalintheinvestmentsmentionedinthisdocumentorinoptions,futuresorotherderivativesbasedthereon. SolactiveAG SolactiveAGistheadministratorandcalculationagentoftheAIPoweredUSEquityIndex.ThefinancialinstrumentsthatarebasedontheAIPoweredUSEquityIndexarenotsponsored,endorsed,promotedorsoldbySolactiveAGinanywayandSolactiveAGmakesnoexpressorimpliedrepresentation,guaranteeorassurancewithregardto:(a)theadvisabilityininvestinginthefinancialinstruments;(b)thequality,accuracyand/orcompletenessoftheIndex;and/or(c)theresultsobtainedortobeobtainedbyanypersonorentityfromtheuseoftheIndex.SolactiveAGdoesnotguaranteetheaccuracyand/orthecompletenessoftheAIPoweredUSEquityIndexandshallnothaveanyliabilityforanyerrorsoromissionswithrespectthereto. SolactiveAGreservestherighttochangethemethodsofcalculationorpublicationandSolactiveAGshallnotbeliableforanymiscalculationoforanyincorrect,delayedorinterruptedpublicationwithrespecttotheAIPoweredUSEquityIndex.SolactiveAGshallnotbeliableforanydamages,including,withoutlimitation,anylossofprofitsorbusiness,oranyspecial,incidental,punitive,indirectorconsequentialdamagessufferedorincurredasaresultoftheuse(orinabilitytouse)oftheAIPoweredUSEquityIndex. UseofSimulatedReturns AnyhistoricalperformanceinformationincludedinthisdocumentpriortoNovember19,2019representsonlyhypotheticalhistoricalresults.NorepresentationisbeingmadethattheAIPoweredUSEquityIndexwillachieveaperformancerecordsimilartothatshown.Infact,theremayoftenbesharpdifferencesbe-tweenhypotheticalperformanceandactualperformance.Back-testingandotherstatisticalanalysismaterialprovidedtoyouinconnectionwiththeexplanationsofthepotentialreturnsassociatedwithaninvestmentinadebtobligationorcertificateofdepositlinkedtotheAIPoweredUSEquityIndexusesimulatedanalysisandhypotheticalassumptionsinordertoillustratethemannerinwhichtheAIPoweredUSEquityIndexmayhaveperformedinperiodspriortotheactualexistenceoftheAIPoweredUSEquityIndex.Alternativemodellingtechniquesorassumptionsmayproducedifferenthypotheticalinformationthatmightprovetobemoreappropriateandthatmightdiffersignificantlyfromthehypotheticalinformationsetforthabove. Theback-testeddatawasproducedbyapplyingtheAIPoweredUSEquityIndexmethodologytohistoricaldata,includinginformationandsourcesavailableateachspecificpointoftimeinhisto ry.Newinformationandsourceswereincorporatedonetimestepatatimeandonlyinformationwithvalidatedtimestampswasconsidered. Theresultsobtainedfrom“back-testing”informationshouldnotbeconsideredindicativeofactualresultsthatmightbeobtainedfromaninvestmentorparticipationinafinancialinstrumentortransactionreferencingtheAIPoweredUSEquityIndex.Youshouldnotplaceunduerelianceonthe“back-testing”information,whichisprovidedforillustrativepurposesonly.HSBCprovidesnoassuranceorguaranteethattheAIPoweredUSEquityIndexwilloperateorwouldhaveoperatedinthepastinamannerconsistentwiththeresultspresentedinthesematerials. HSBCUSAInc.hasfiledaregistrationstatement(includingaprospectusandprospectussupplement)withtheSecuritiesandExchangeCommissionforanyofferingtowhichthisfreewritingprospectusmayrelate.Beforeyouinvest,youshouldreadtheprospectusandprospectussupplementinthatregistrationstatementandotherdocumentsHSBCUSAInc.hasfiledwiththeSECformorecompleteinformationaboutHSBCUSAInc.andanyrelatedoffering.YoumaygetthesedocumentsforfreebyvisitingEDGARontheSEC’sofferingwillarrangetosendyoutheprospectusandprospectussupplementifyourequestthembycallingtoll-free1-866-811-8049. Hypotheticalback-testedresultsareneitheranindicatornoraguaranteeoffuturereturns.Actualresultswillvary,perhapsmaterially,fromtheanalysisimpliedinthehypotheticalinformation.YoushouldreviewandconsiderthehypotheticalinformationonlywiththefullAIPoweredUSEquityIndexmethodology. HSBCoperatesinvariousjurisdictionsthroughitsaffiliates,including,butnotlimitedto,HSBCSecurities(USA)Inc.,memberofNYSE,FINRA,andSIPC. ©2023HSBCUSAInc.Allrightsreserved. MonthlyPerformanceReport-January2023 |
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