HSBC AMANAH EUROPE EQUITY FUND

HSBC Amanah Funds SICAV

FUND PROFILE
The sub-fund seeks long term capital growth through the
implementation of an active management strategy. The
investments will consist of a diversified portfolio of European
equity securities that comply with Islamic investment
principles, as expressed in the section "Investment Policy of
the Sub-Funds". The investment universe includes also the
European Emerging Markets. The sub-fund may also invest in
shares or assimilated instruments issued by companies that
comply with the above criteria such as "American Depository
Receipt" and "Global Depository Receipts". On an ancillary
basis, the sub-fund may invest in Shari'a-compliant short
term money market instruments.

................................................................................................................

................................................................................................................

August 31, 2010

TOP 10 HOLDINGS
1. Roche Holding AG Part. Cert.

5.29%

2. Novartis AG

5.09%

3. BP

4.89%

4. Total S.A.

4.74%

5. Sanofi-Aventis S.A.

3.94%

6. AstraZeneca

3.76%

7. BHP Billiton

3.69%

8. Siemens AG

3.67%

9. GlaxoSmithKline

3.57%

10. ENI S.p.A.

3.19%

Total

41.83%

PORTFOLIO COMPOSITION BY INDUSTRY

1. Health Care

28.87%

2. Oil and Gas

19.30%

3. Industrials

16.41%

4. Basic Materials

11.83%

5. Technology

8.92%

6. Consumer Goods

7.80%

7. Consumer Services

2.92%

8. Telecommunications

2.12%

9. Cash and Other

1.83%

Total

100.00%

...................................................................................................................................................................................................................................................................................................................................................................................................................................................

ADVISER'S COMMENTARY
Review
Investors key concern in August was the poor US economic data, especially job figures. In addition to the disappointing economic outlook, oil prices fell 9%. Strong corporate earnings releases led to positive earnings expectation
trends. Given the weak macro economic context, defensives sectors displayed the best performance during the period. Health care was the only sector with positive returns while IT stocks were the worst performers. Oil & gas,
basic materials and industrials all closed down on fears that the economy may slip into a new recession.
Strategy
As equity markets fell, the Funds underexposure at 98% had a positive impact on relative performance. In terms of country allocation, the Fund benefited from its overweight regional allocation in Switzerland. The stock selection
approach was beneficial to the Fund over the month. The best performing holdings came from cyclical sectors: Tomra system, an industrial company in Norway and Elementis, a British chemicals company. The
Funds overweight allocation in the pharmaceuticals sector also bolstered performance.
Outlook
At a company level, the second quarter earnings season came in ahead of analyst expectations and earnings have been revised upwards (excluding Financials) accordingly. Equity markets are undervalued based on our global model
and economic data releases were better-than-expected in Europe. At a macro economic level, the negative sentiment on US growth more than offset these positive figures. We expect valuation data and the micro economic
outlook to lead the equity market over the coming month.

...................................................................................................................................................................................................................................................................................................................................................................................................................................................

FUND DETAILS

Total number of holdings

Fund Manager

Laurence Jobert

Date appointed

13 January 2009

Annual charge

Launch date

77
1.50%

13 January 2009

Subscription Fee

3%

Launch price ($)

70.67

Switching charge

N/A

Fund size ($m)

5.35

Financial year end

Fund currency

USD

Minimum initial investment

31 December
US$5000 or its equivalent

Minimum additional investment

Redemption policy

N/A

Unrestricted. It may take up to10 working

days after fund settlement date for the money to be credited to your account

Regular savings scheme

Domicile
Fund Administrator

N/A
Luxembourg
Allfunds Bank

Unless otherwise stated, all information contained in this document shall not be reproduced, in whole or in part, without the specific written permission of Abu Dhabi Islamic Bank (ADIB). The content of this document is for information purposes only. The information and statistical data contained herein
have been obtained from sources which ADIB believes to be reliable; ADIB makes no guarantee, representation or warranty and accepts no responsibility as to its accuracy or completeness. ADIB does not hold itself out as providing legal, financial or other advice via this document. The fund might get
exposed to foreign currencies and changes in the currency exchange rates may have an adverse effect on the value and price of the units. Investments in the fund are not deposits and are not guaranteed. The fund value is subject to fluctuations and the investor may not receive the full amount that is
originally invested. The funds past performance is not indicative of future performance. The information provided in this document may be changed at any time without prior notice. Investors and potential investors should read and note the risk warnings in the prospectus and simplified prospectus. Fund
financials are available free of charge upon written request at any of our financial centers. Abu Dhabi Islamic bank is authorized and regulated by the Central Bank of United Arab Emirates. Stock market investments should be viewed as a medium to long term investment and should be held for at least
five years. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in established markets. This sub-fund invests predominantly in one geographic area; therefore any decline in the economy of this area may affect the prices and value of the underlying
assets. The securities representing interests in HSBC Amanah Funds SICAV have not been and will not be registered under the US Securities Act of 1933 and will not be offered for sale or sold in the United States of America, its territories or possessions and all areas subject to its jurisdiction or to United
States Persons, except in a transaction which does not violate the Securities Law of the United States of America.
ADIB Shari'a division has reviewed and approved this fund.

AMANAH

HSBC AMANAH EUROPE EQUITY FUND

HSBC Amanah Funds SICAV
August 31, 2010

PERFORMANCE (% CHANGE)
31/07/09 - 31/07/10
HSBC Amanah Europe Equity Fund
Fund

31/07/08 - 31/07/09

4.5%

31/07/07 - 31/07/08

31/07/06 31/07/07

31/07/05 - 31/07/06

Dow Jones Islamic Europe

18.9

18.7

3.0
-12.2

-2.6

-11.6

Calendar YTD 2010

Rolling time period

-2.9

1 month

1 month

3.8

3 month

3 months

Since Launch

6 months

1 year

HSBC Amanah Europe Equity Fund

-2.6

3.0

-6.9

-2.7

Dow Jones Islamic Europe

-2.9

3.8

-6.5

-2.6

Please note that the above figures refer to the past and that past performance is not a reliable indicator of future returns.
Source: Morningstar Workstation, bid-bid gross of purified income reinvested. Performance information is up to 31 August 2010. Fund performance is shown net of expenses and gross income reinvested, benchmark is shown on
a total return basis. Factsheets prior to 01 June 2005 showed the benchmark on a price return basis which ignored the value of dividends reinvested. Benchmark source: Dow Jones. YTD means year to date.

...................................................................................................................................................................................................................................................................................................................................................................................................................................................

DISCLAIMER
Unless otherwise stated, all information contained in this document shall not be reproduced, in whole or in part, without the specific written permission of Abu Dhabi Islamic Bank (ADIB). The content of this document is for information purposes only. The information and statistical data contained herein have been obtained from sources which ADIB believes to be
reliable; ADIB makes no guarantee, representation or warranty and accepts no responsibility as to its accuracy or completeness. ADIB does not hold itself out as providing legal, financial or other advice via this document. The fund might get exposed to foreign currencies and changes in the currency exchange rates may have an adverse effect on the value and price
of the units. Investments in the fund are not deposits and are not guaranteed. The fund value is subject to fluctuations and the investor may not receive the full amount that is originally invested. The funds past performance is not indicative of future performance. The information provided in this document may be changed at any time without prior notice. Investors
and potential investors should read and note the risk warnings in the prospectus and simplified prospectus. Fund financials are available free of charge upon written request at any of our financial centers. Abu Dhabi Islamic bank is authorized and regulated by the Central Bank of United Arab Emirates. Stock market investments should be viewed as a medium to
long term investment and should be held for at least five years. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in established markets. This sub-fund invests predominantly in one geographic area; therefore any decline in the economy of this area may affect the prices and value of the underlying
assets. The securities representing interests in HSBC Amanah Funds SICAV have not been and will not be registered under the US Securities Act of 1933 and will not be offered for sale or sold in the United States of America, its territories or possessions and all areas subject to its jurisdiction or to United States Persons, except in a transaction which does not violate
the Securities Law of the United States of America.
ADIB Shari'a division has reviewed and approved this fund.