Redemption Facility

RNS Number:7059U
HSBC Global Absolute Limited
11 April 2007



HSBC Global Absolute Limited

HSBC Private Bank Building, Rue Du Pre, St Peter Port, Guernsey, GY1 1LU



11 April 2007

Notice to Shareholders in HSBC Global Absolute Limited regarding the optional
bi-annual redemption facility

HSBC Management (Guernsey) Limited (the "Manager") gives the following notice to
shareholders in HSBC Global Absolute Limited (the "Company").



At the Company's board meeting held in March of each year, the Board considers
if it is appropriate to offer shareholders the opportunity to participate in the
bi-annual redemption facility, whereby shareholders may redeem shares at net
asset value as at the last business day of June.  This year, the Directors have
resolved to give shareholders, if they so wish, the opportunity to redeem up to
10% of each share class of the Company in issue on 29 June 2007.



Set out below is a brief summary of the Company's performance history, share
price history and a report from the Company's investment adviser.



Company Performance



The performance of the Company since launch in 2001 through to 28 February 2007
in absolute terms shows a gain of 42.8% in US Dollar terms.  The performance of
the Company over the period from 1 December 2006 to 28 February 2007 has been
positive, up 3.78% in US Dollar terms and up 3.18% in Sterling terms



Share Price Performance



For the 12 month period to 30 March 2007, the average premium of the US Dollar
Share price to the Net Asset Value was 0.49%.  The average premium of the
Sterling Hedged Share price to the Net Asset Value for the same period was
1.45%.



As at 30 March 2007, US Dollar Shares were trading at $1.825 per US Dollar
Share, being a discount of 5.62% to the Net Asset Value and Sterling Hedged
Shares were trading at 101.25 pence per Sterling Hedged Share, being at a
discount of 1.92% to the Net Asset Value.



Investment Adviser's Report



Over the period 1 December 2006 to 28 February 2007 the Company returned 3.78%
in the US Dollar Shares and 3.18% in the Sterling Hedged Shares. The strongest
performing strategy over the period was the dedicated merger arbitrage manager
within the Company's hedge fund portfolio. Although mergers and acquisitions
levels and opportunities in the strategy remained robust over the period, the
strongest driver for the returns was a macro driven hedge book in the portfolio.
To help hedge the risk of a significant economic slowdown in the US hampering
deals the fund is invested in, the fund manager bought a hedge against the
credit quality of sub-prime US mortgages last summer, when premiums for this
protection were low. The turbulence in this market this year drove the fund
manager's out performance. The next best performing strategy allocation was
high-yield/ distressed. This fund manager also made significant gains from these
short US sub-prime positions and also gained from the remainder of their book.
The multi-strategy/ event driven allocation gained as merger arbitrage,
restructured equity, convertible and volatility strategies and other allocations
contributed. The stronger performances were mainly generated by the equity
oriented fund managers and the European allocations. The managed futures
allocation gained as the fund manager derived performance from their directional
and market neutral allocations. The convertible arbitrage fund manager gained
broadly from convertible and quantitative equity strategies. The convertible
book gained from gamma and volatility trading in up and down markets, while new
issuance was also a positive contributor. The macro fund managers gained, with
returns driven by an emerging markets trading fund which was aggressively
positioned for year end rally in emerging equities, fixed income and currencies,
while January and February were volatile so the fund manager focussed on day
trading and limited strategic positioning, and returned positively each month.
Equity long/ short and equity market neutral were the weaker strategies in the
portfolio. A number of long/ short fund managers detracted over the period for
various reasons. The market neutral fund managers produced variable
performances, with the two statistical arbitrage fund managers performing weakly
in February.



Optional Bi-annual Redemption of up to 10% of Shares



The Company's prospectus sets out various mechanisms for keeping any discount or
premium to Net Asset Value to the minimum that is attainable, including the
share buyback and bi-annual redemption facility.



The Directors have determined that, consistent with the way that the redemption
facility has previously operated, it is appropriate to exercise their discretion
in accordance with the provisions in the Company's prospectus and memorandum and
articles of association, to accept requests from shareholders to redeem up to
10% of each share class in issue on 29 June 2007 (the "Redemption Date").



Shares will be redeemed at their Net Asset Value on the Redemption Date, with
proceeds being payable within 2 Business Days after the Net Asset Value of the
Company has been determined.  If the number of redemption requests received
exceeds the 10% limit, each shareholder's redemption request may be reduced pro
rata.



If you are in any doubt as to the action to be taken, you are recommended to
immediately seek your own personal financial advice from an appropriately
authorised independent financial adviser.



Shareholders with certificated shares may make redemption requests on a
redemption notice form, a copy of which is available from the Manager at the
address set out below.  The completed redemption notice form must be delivered
to the Company, at the Manager's address below, no later than 30 April 2007.



Shareholders with uncertificated shares may make redemption requests through
CREST by no later than 30 April 2007 in accordance with CREST procedures.



Redemption requests should be made for a number of shares rather than a Sterling
or US Dollar amount.  Only a whole number of shares may be redeemed, unless the
redemption request would result in a residual holding of less than one share, in
which case the request should include the residual fraction of the share.



A redemption notice, once served on the Company or its agents may not be
withdrawn without the consent of the Company.



For further information regarding the bi-annual redemption facility, please
contact Clive Paine on [phone], [e-mail]



For any operational queries, please contact Martin Wilson on [phone],
[e-mail]



Paul Wrench

Managing Director

HSBC Management (Guernsey) Limited

HSBC Private Bank Building

Rue du Pre, St. Peter Port, Guernsey, Channel Islands, GY1 1LU

This notice to shareholders has been posted to shareholders and submitted to the
UK Listing Authority and will be available shortly for inspection at the UK
Listing Authority's Document Viewing Facility, which is situated at:



Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS
Tel: [phone]



Enquiries: Clive Paine - HSBC Alternative Investments Limited - 020 7860 6525



Certain information contained in this announcement is regulated information for
the purposes of Chapter 6 of the Disclosure and Transparency Rules.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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