HBanc Capital Securities Trust

The Fund’s investment objectives are to (i) provide Unitholders with monthly, tax-advantaged distributions consisting primarily of returns of capital, initially representing a yield on the Unit issue price of 7.0% per annum, and (ii) provide exposure to the Capital Securities.

The Fund was established to provide investors with high levels of stable, tax-advantaged distributions through exposure to securities issued by HSBC Holdings plc, a conservatively positioned and strongly capitalized global bank. Specifically, the Fund will gain exposure to (i) the 8.125% Perpetual Subordinated Capital Securities, Series 1 issued by HSBC and/or (ii) the 8.00% Perpetual Subordinated Capital Securities, Series 2 issued by HSBC.

The Fund will not have a fixed distribution, but intends to make monthly distributions based on the actual and expected distributions on the Capital Securities less the Fund’s estimated expenses.

Performance Update

HBanc Capital Securities Trust — First Quarter 2012
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