World Selection PortfolioTM Conservative Portfolio

							World Selection Portfolio                                    TM

                                                                                                                        December 31, 2010



Conservative Portfolio
Multimanager program

 Portfolio objective
 Income preservation. The Conservative Portfolio is for investors whose primary investment focus is current income, seeks capital
 preservation and who have a low tolerance for risk. Investors are also comfortable with the fact that this portfolio contains some modest
 exposure to equities, which can be more volatile, but which over the long term, will potentially provide some modest growth to offset the
 effects of inflation.

                                                                                           3        1            3           5           Since
 Multimanager portfolio returns                                               YTD
                                                                                         months    year        year1       year1      inception1,2

 HSBC World Selection Conservative Portfolio                                8.43%        1.97%    8.43%       5.06%       5.53%          6.20%

 Performance is gross of fees.                                                                            Annualized 2Inception: December 31, 2003
                                                                                                          1




 Multimanager current asset allocation                                        Underlying investment managers
 Cash                                                              9.4%
 HSBC Canadian Money Market Pooled Fund                            9.4%       HSBC Global Asset Management (Canada) Limited
 Fixed income                                                     64.6%
 HSBC Global Inflation Linked Bond Pooled Fund                     3.9%       HSBC Global Asset Management (France)
 HSBC US High Yield Bond Pooled Fund                               7.1%          .
                                                                              J.P Morgan
 HSBC MultiAlpha Canadian Bond Pooled Fund                        53.6%       HSBC Global Asset Management (Canada) Limited
 Domestic equity                                                  16.2%
 HSBC MultiAlpha Canadian Equity Pooled Fund                      16.2%       Scheer Rowlett & Assoc. | Picton Mahoney Asset Management
 HSBC MultiAlpha Canadian Small Cap Equity Pooled Fund             0.0%       Mawer Investment Management
 Foreign equity                                                    9.8%
 HSBC MultiAlpha US Equity Pooled Fund                             5.0%       Rainier | Cohen & Steers | LA Capital | Eaton Vance | Winslow
                                                                              Jennison Associates | Loomis Sayles & Company |
 HSBC MultiAlpha US Small/Mid Cap Pooled Fund                      0.0%
                                                                              Westfield Capital Management
 HSBC MultiAlpha International Equity Pooled Fund                  3.4%       AllianceBernstein | Martin Currie
 HSBC Emerging Markets Pooled Fund                                 1.4%       Trilogy Advisors, LLC | Delaware Investment Advisers


 Asset allocation discretionary ranges                                         Growth of $100,000 since inception
                                     Min       Benchmark        Max
                                                                              $180,000
 Cash                                5%          12.5%          25%           $160,000
 Fixed income                       52.5%        62.5%         72.5%          $140,000
                                                                              $120,000
 Domestic equity                     5%           15%           25%           $100,000
 Foreign equity                      0%           10%           20%            $80,000
                                                                               $60,000
                                                                               $40,000
 Portfolio risk: Low to medium                                                 $20,000
                                                                                    $0
 Low                                                         High                   Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09         Dec-10
Fund and contact details
Total portfolio assets:               $24.0 million
RRSP eligible:                        Yes
Management fee:                       first $250,000: 2.00% | next $250,000: 1.75% | next $500,000: 1.50% | minimum annual fee: $1,000
Portfolio manager:                    HSBC Global Asset Management (Canada) Limited
For more information:                 Your investment representative
Website:                              hsbc.ca/world-selection


Portfolio update

The fourth quarter of 2010 finished on a high note as markets around the world rallied on an improving global economic picture. The Standard
& Poor’s (S&P)/Toronto Stock Exchange Index Composite Index was 9.5% higher. The S&P 500 Index was 7% higher. The MSCI World Index
rose 5.2%, while the MSCI Emerging Markets Index gained 3.6%. The MSCI Europe Index was 1% higher. (All returns are for the fourth
quarter and in Canadian dollars.)
While the global economic recovery is continuing, challenges and uncertainties persist. In developed markets, we continue to anticipate
positive, albeit moderately sub-trend economic growth. Key risks on the economic horizon comprise declining government spending and
weak consumer spending. Unemployment rates are still elevated and consumers are trying to reduce debt, particularly in the US and the
UK. Concerns that peripheral eurozone countries like Portugal and Ireland could face further debt crises could inhibit growth in the wider
European economy.
In emerging markets, the overall outlook remains robust, but there are concerns over the possibility of higher interest rates stifling domestic
growth. Higher rates in emerging markets could also hurt the global economy as these markets have been a key driver of global growth.
In fixed income, with inflation under control in developed markets, other than the UK we believe central banks are likely to keep interest rates
low, which is broadly supportive for fixed income markets. The broader Canadian bond market was up 6.6% in 2010.

                                                                                                                                                   CA#M1101027




HSBC World Selection Portfolio™ is a discretionary portfolio management service offered by HSBC Global Asset Management (Canada) Limited (“                AMCA”),
and through authorized agents. Under this discretionary service, assets of participating clients are invested in HSBC Pooled Funds, which are mutual
funds managed by AMCA and distributed by HSBC Investment Funds (Canada) Inc. Commissions, trailing commissions, management fees, investment
management fees and expenses may be associated with investments in the HSBC Pooled Funds and the HSBC World Selection Portfolio™ service.
Please read the applicable account opening documentation and prospectus before applying for the HSBC World Selection Portfolio™ service. Neither
the HSBC World Selection Portfolio™ service nor the HSBC Pooled Funds are guaranteed or covered by the Canada Deposit Insurance Corporation,
HSBC Bank Canada, or any other deposit insurer. The value of mutual fund investments changes frequently and past performance may not be repeated.
The unit value of money market funds may not remain constant. HSBC Global Asset Management is a wholly owned subsidiary of, but separate entity
from, HSBC Bank Canada. The performance of HSBC World Selection Portfolio™ service model portfolios ( “Portfolios”) is for information purposes only.
Performance information is based on the performance of our standard Portfolios and not on a composite of actual client accounts. Past performance of
the Portfolios is not indicative of future returns for the Portfolios or for actual client accounts. For periods greater than one year, the Portfolios performance
indicated is the historical annual compounded total return using a time-weighted analysis as of the date indicated. The Portfolios performance assumes
the reinvestment of all distributions and periodic rebalancing and does not take into account any income taxes payable or investment management
fees. Although HSBC Global Asset Management endeavours to maintain the accuracy of the Portfolios, we cannot be held responsible for any errors
or omissions. The fund commentary contained in this document has been prepared by HSBC Global Asset Management (Canada) Limited. Opinions
expressed in the document are subject to change without notice and this information is not intended to provide professional advice and should not be
relied upon in that regard. You are advised to obtain appropriate professional advice where necessary and should consult your investment representative
before considering a specific transaction. We, our affiliates and our officers, directors and employees may hold a position in any securities mentioned in
this document (or in any related investment) and may from time to time add to or sell any such securities or investment. As well, we and our affiliates
may act as market maker or have assumed an underwriting commitment in the securities of companies discussed in this document (or in related
investments), may sell them to or buy them from customers on a principal basis and may also perform or seek to perform investment banking or
underwriting services for or relating to those companies. CA#M1101033 (01/11).