SINOPIA Asset Management Guaranteed and Structured Products Conference in Instanbul

1. 26 janvier 200 March 2008 SINOPIAAsset Management Guaranteed and Structured Products Conference in Instanbul François-Xavier Colas, Fund Manager, Guaranteed & Structured Products

2. Assets Under Management by investment type * Assets Under Management by client type ** Guaranteed & structured products 16.1% Fixed Income 14.6% Institutional 51% Intermediaries 49% Absolute Return 27.0% Equities 42.3% SINOPIA Asset Management Company overview • Headquartered in Paris with international subsidiaries in London and Hong Kong • Over EUR 31.5 billion* assets under management at end December 2007 • EUR 5.1 billion* in guaranteed and structured products for intermediaries and institutional investors • Sinopia has over 16 years’ experience in managing capital guaranteed funds * As of 31 December 2007

3. Structured investment strategies: Closed-end structured products Active guaranteed strategies: Immediate protection Forward guarantee Guaranteed and structured products Two management techniques • Designed to generate performance within strict risk limits imposed by the constraints of the funds to honour the guarantees Two management techniques

4. Final payoff of the predefined formula Option At maturity the replication of the zero coupon returns 100% of initial investment Replication of a Zero Coupon Closed-end structured products A formula defined at launch • The product return is the result of a chosen formula at launch: replication of the "ZC+option" structure • fixed investment strategy • fixed investment horizon • the higher the rates, the smaller the value of the zero coupon, allowing to benefit from a larger payoff on the option side • The fund is customised to the client’s market anticipations and constraints with a choice of: • underlying assets (indices, interest rates, currencies, funds, etc) • maturity • level of risk • strategies (long / short / relative value / volatility)

5. Active guaranteed strategies Immediate protection • A traditional active fund with a capital guarantee: • protection on X% of the NAV available immediately for a predetermined period of time • protections of the fund benefit every shareholder regardless of date of entry • unlimited upside potential with an actively managed exposure • The fund can be customised: • choice of the level of protection • choice of underlying assets • Unlimited subscription period, daily liquidity, no penalty charge for subscriptions and redemptions

6. Turkish Equity Protected Strategy Main characteristics of HSBC YATIRIM MENKUL DEGERLER A.S. B TIPI AKTIF YÖNETIMLI KORUMA AMACLI FON • Protections* are issued on 90% of the last NAV of each quarter • Protections are effective immediately and valid for one year • Actively managed fund invested in Turkish equity markets (ISE 30 index) and money market securities • Denominated in Turkish lira • Daily liquidity • No penalty charge for redemptions / subscriptions • Unlimited subscription period * The protections constitute management objectives and, in no event, can be considered as a formal commitment

7. Immediate protection Active strategy with a shock-absorber CLIC ACTION EQUILIBRE: Performance since inception (base 100 on 18/10/99) Index : MSCI EMU in Euro (base 100 on 18/10/99) 150 140 CLIC ACTION EQUILIBRE 130 120 110 100 MSCI EMU in Eur 90 Protection* 80 70 60 50 10/1999 05/2001 01/2003 08/2004 03/2006 10/2007 The net asset values used are given only for illustrative purposes and represent only a simulation of the fund's behaviour. *90% immediate, valid for 1 year, data as of 29 February 2008.

8. Protection available from day one: valid over a 1 year period. The fund's net asset value will remain equal or above the protection level. 110 Fund value Active protection 100 100 Protection 90 90 T T+1 year Protection mechanism Example: HSBC YATIRIM MENKUL DEGERLER A.S. B TIPI AKTIF YÖNETIMLI KORUMA AMACLI FON The net asset values used are given only for illustrative purposes and represent only a simulation of the fund's behaviour

9. Both the new and the existing subscribers benefit from the new protection coming into force. In case of a rise in the fund’s NAV, previous protection levels will be upgraded for existing subscribers. 110 Fund value increase 105 Active protection 100 100 Inactive protection New protection 94.5 90 90 T T+3 months T+12 months T+15 months Protection mechanism Protection upgraded when the net asset value is up The net asset values used are given only for illustrative purposes and represent only a simulation of the fund's behaviour

10. In the case that the fund’s NAV goes down, new and existing subscribers will benefit from the older but higher protection level. 110 105 102 Active protection 100 100 Inactive protection 94.5 91.8 90 90 T T+6 months T+12 months T+18 months T+3 months T+15 months Protection mechanism Protection maintained in case of a net asset value fall The net asset values used are given only for illustrative purposes and represent only a simulation of the fund's behaviour

11. If the fund’s NAV bounces back after a fall, the protection issued on the lower NAV will remain inactive: higher protection will prevail over lower protections. 110 108 105 Active protectionInactive protection 102 100 100 97.2 94.5 91.8 90 90 T+12 months T+18 months T T+6 months T+3 months T+9 months T+15 months T+21 months Protection mechanism The lowest protection levels are not taken into account The net asset values used are given only for illustrative purposes and represent only a simulation of the fund's behaviour

12. Active guaranteed strategies Active management • A dynamic portfolio management to maximise performance while maintaining the guarantees: • total exposure to risky assets is monitored on a daily basis to ensure the guarantees are maintained • Depending on its guarantee features, each product has its own risk budget we actively manage: • the lowest the level of the guarantee, the highest the exposure can be

13. Active guaranteed strategies The variables • Floor value: • minimum value of the portfolio to ensure the guarantee • Risk budget: • portfolio market value minus floor value • Exposure: • amount invested in risky assets • Maximum exposure = multiplier × risk budget • the multiplier depends on the level of risk of the considered market: the greater the risk, the smaller the multiplier

14. T0 T1 Level of the index 100.00 + 10% 110.00 110.00 Fund’s NAV 100.00 104.00 104.00 Market Risky asset 40.00 44.00 56.00 variation Adjustments Monetary asset 60.00 60.00 48.00 Floor 90.00 90.00 Risk budget 10.00 14.00 Maximum exposure 40.00 56.00 Active guaranteed strategies A theoretical example Fixed multiplier = 4

15. Active guaranteed strategies Key features • Active and flexible management depending on market anticipations: no systematic management • Total customization of the funds with a choice of underlying assets: • equity markets: global, regional, emerging, etc. • fixed income • alternative strategies: single or multi-driver • commodities • Enhanced active management strategies with a variable multiplier which depends on: • market expected return • anticipated short term volatility

16. Appendix • Sinopia’s product offering: • examples of closed-end structured products • examples of immediate protection products

17. Guaranteed and structured products Sinopia’s product offering: examples of closed-end structured products • Sinopia manages approximately EUR 2.56 billion in closed-end structured products * Assets under management in EUR millions, as of 14 March 2008. ** Assets under management in USD millions, as of 29 February 2008.

18. Guaranteed and structured products Sinopia’s product offering: examples of immediate protection products • Sinopia manages approximately EUR 0.95 billion in immediate protection products * Assets under management, as of 14 March 2008 ** Best effort protection

19. 19 Disclaimer This presentation is produced and distributed by HSBC Investments (France) and is only intended for professional investors as defined by MiFID. It is incomplete without the oral briefing provided by the representatives of HSBC Investments (France) and/or the management company. The information contained herein is subject to change without notice. All non-authorised reproduction or use of this commentary and analysis will be the responsibility of the user and will be likely to lead to legal proceedings. This document has no contractual value and is not by any means intended as a solicitation, nor a recommendation for the purchase or sale of any financial instrument in any jurisdiction in which such an offer is not lawful. The commentary and analysis presented in this document reflect the opinion of Sinopia Asset Management on the markets, according to the information available to date. They do not constitute any kind of commitment from Sinopia Asset Management. Consequently, neither Sinopia Asset Management nor HSBC Investments (France) will be held responsible for any investment or disinvestment decision taken on the basis of the commentary and/or analysis in this document. All data from Sinopia Asset Management unless otherwise specified. Any third party information has been obtained from sources we believe to be reliable, but which we have not independently verified. The funds presented in this document may not be registered and/or authorised for sale in your country. Past performance is not a guide to future performance. Capital is not guaranteed. Simulated performance is not guide to future performance. Please note that according to article 314-13, performance for periods of less than 12 months cannot be shown to non-professional investors, as defined by MiFID. HSBC Investments represents Sinopia throughout the world; it is responsible for the business relationship and provides client services both in France and abroad, as part of a strategic partnership. This presentation is not intended for general distribution, it is provided on specific request. Transactions in derivatives are likely to make considerable profits, but they also entail substantial risks. An investment in the SINOPIA Alternative Funds (SAF) should be considered in the light of the financial condition of the investor. Since an investment in such a Fund represents an above average risk, the Fund in question is only suitable for those persons who can afford to take such risks; it is advisable for sophisticated investors to invest therein only a part of the sums such investor intends for a long-term investment. The term Sinopia Asset Management ("Sinopia") refers to a business engaged in fund management activities, which are ultimately owned by HSBC Holdings plc. Sinopia's registered office is in Paris, Immeuble Ile de France - 4 place de la Pyramide - La Défense 9 - 92800 Puteaux - France, and has subsidiaries in London and Hong Kong (Sinopia Asset Management UK Limited and Sinopia Asset Management Asia Pacific Limited).Portfolio management company - 379 837 800 RCS Nanterre - AMF authorisation no. GP97142. All subscriptions in any fund presented in this document are accepted only on the basis of the current prospectus, available on request from HSBC Investments (France), the centralisation agent, the financial department or the usual representative. Before subscription, investors should refer to the prospectus for more detailed information on the risks associated with this fund. HSBC Investments (France) - 421 345 489 RCS Nanterre. Portfolio management company authorised by the French regulatory authority AMF (no. GP99026). Postal address: 75419 Paris cedex 08.Offices: Immeuble Ile de France - 4 place de la Pyramide - La Défense 9 - 92800 Puteaux – France. www.hsbcinvestments.fr Non contractual document, updated in March 2008.