Trust

Trust Services

HSBC offers personalized trust administration services for your beneficiaries. Achieve the financial goals you've set for them through various investment alternatives. With HSBC's Trust Services, you can take control. If you have intended beneficiaries for your choice of investments, we provide the following trust services:

Retail/Individuals

• Retail Directed Trust
Through Retail Directed Trust, HSBC Trust will act as Trustee for the client. Through this arrangement, clients will be able to create a trust in favor of their assigned a beneficiary/ies while managing their investments. Click here for the documents.

• Directional Long-Term Living Trust (DLTA)
For the investor with a long-term investment horizon. Clients will be able to take advantage of Tax exemption benefits as long as they hold their investment/s in the Living Trust Arrangement for at least 5 years. Similar to Directed Trust, clients/trustors will delegate a beneficiary for the assets within the trust account. Click here for the documents.

• Directional Investment Management Agreement (IMA)
Through an Investment Management Agreement, HSBC will act as an agent for the client in buying and selling Peso securities for the benefit of the investor. Click here for the documents.

• Long-term Directional Investment Management Agreement (LT IMA)
Similar to a Directional Living Trust, clients will be able to take advantage of Tax exemption benefits as long as they hold their Peso investments in the LT IMA for at least 5 years. HSBC will act as an Agent for the client in buying and selling Peso securities. Click here for the documents.

Corporate

• Corporate Directed Trust
Through Corporate Directed Trust, HSBC offers flexible options with services such as Custodianship or Safekeeping, Mortgage Trust Indenture, Escrow Agency Service, Registrar and Paying Agency Service, Customized Trust and Fiduciary Services. Click here for more information

Investment Guide


	Government Securities Make our treasury capabilities work for you when you choose from a range of Domestic Instruments that are offered daily.
	• Treasury Bills (T-Bills) Peso-denominated short-term government securities issued by the Bureau of Treasury that are sold at a discount and redeemed at the face value of the security. The difference represents the interest earned which is paid on maturity date. From their date of issue, T-bills usually have tenors of 3 months, 6 months and 1 year. • Fixed Rate Treasury Notes (FXTNs) FXTNs are medium to long-term peso-denominated securities that are issued by the Bureau of Treasury. FXTNs pay out coupons (interest payments) semi-annually and may be traded in the secondary market before maturity. • Retail Treasury Bonds (RTBs) RTBs are medium to long-term peso-denominated securities that are issued by the Bureau of Treasury. RTBs are usually issued for tenors up to five years. These pay out coupons quarterly and may be traded in the secondary market before maturity. • Philippine government-issued eurobonds Eurobonds are US dollar or Euro-denominated debt obligations issued by the Republic of the Philippines. These are usually referred to as ROPs. The US-dollar denominated eurobonds pay out coupons (or interest) semi-annually, while Euro-denominated eurobonds pay out coupons annually. Both are traded in the secondary market before maturity.

	Structured Deposits This is a deposit that allows potentially higher returns vs traditional deposits given a specific payoff profile. The deposit has an embedded option designed to provide a yield enhancement derived from the performance of an underlying asset or benchmark. The product allows one to participate in the performance of various assets with the benefit of principal protection. HSBC distributes this product when they are available. Compare a regular time deposit vs a structured deposit.

	Corporate Debt Securities These debt obligations include, but are not limited to, senior unsecured bonds and corporate notes, promissory notes, subordinated notes and asset participation certificates issued by corporations or their trustees.

	Investment Funds Make our treasury capabilities work for you when you choose from a range of Domestic Instruments that are offered daily:
	• Money Market Funds These funds are invested in money market instruments and short-term fixed income investments. Money Market Funds are generally conservative. Its objective is to achieve preservation of capital and to generate income over a short to medium-term horizon. • Bond Funds (Fixed Income Fund) A bond fund is invested in fixed income instruments or bonds. These bonds, which are issued by governments and corporations, pay fixed coupons. Since these instruments generally pay fixed coupons, they are less risky compared to stocks or equity funds. The objective of Bond Funds is to preserve capital while producing a moderate income over the medium to long-term. The interest payments of these bonds are reinvested into the fund, allowing a compounding effect on the performance and allowing your money to work for you. • Equity Funds These funds are invested in stocks or the equities market. They have a tendency to be more volatile, with valuations changing in line with company developments and market events and expectations. Equity funds aim to achieve capital growth over a long period of time. • Balanced Funds Balanced funds are invested in a combination of equities and bonds. These are usually referred to as asset allocation funds given that the fund can invest in both stocks and bonds while employing active management between asset classes to achieve the objective of the fund. The risk-return characteristics of this type of fund, fall between Equity Funds and Fixed-Income Funds.