HSBC Global Asset Management Limited manager of the HSBC Mutual Funds, announces proposed changes to the HSBC BRIC Equity Fund (the “Fund”).
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Subject to unitholder approval, AMCA proposes to change the investment objectives of the Fund to take effect on or around 2 December 2022. A special meeting of unitholders of the Fund (the “Meeting”) will be held on or about 9 November 2022 to consider the change. If the change in investment objectives is approved, the investment strategies and fund name will also change.
In addition, effective on or about 2 September 2022, the Fund will be closed to all purchases by both current and new investors, including purchases made through a pre-authorized contribution plan or other pre-authorized purchase programs.
The proposed changes are in response to the uncertainty surrounding the Fund’s ability to invest in Russia (one of the four emerging market countries the Fund currently invests in) resulting from the ongoing sanctions, governmental restrictions and market liquidity.
The portfolio management team believes the proposed changes will allow unitholders to benefit from a broader, more diversified emerging markets strategy while maintaining exposure to the markets the fund currently invests in.
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The Independent Review Committee of the Fund has reviewed the potential conflict of interest matters related to the proposed changes and has provided AMCA with a positive recommendation to proceed with the changes after determining that the changes, if implemented, would achieve a fair and reasonable result for the Fund.
In advance of the Meeting, a notice-and-access document will be mailed in September to unitholders of record as at 20 September 2022. The notice-and-access document will describe the various ways in which unitholders can obtain a copy of a management information circular that contains full details of the proposed changes.
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