HSBC Asset Management announces proposed changes to the HSBC BRIC Equity Fund

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Vancouver, British Columbia–(BUSINESS WIRE)–HSBC Global Asset Management (Canada) Limited (“AMCA”), manager of the HSBC Mutual Funds, announces proposed changes to the HSBC BRIC Equity Fund (the “Fund”).

Subject to unitholder approval, AMCA proposes to amend the investment objectives of the Fund to take effect on or around December 2, 2022. A special meeting of unitholders of the Fund (the “Meeting”) will will be held on or around November 9, 2022 to review the change. If the change in investment objectives is approved, the investment strategies and name of the fund will also change.

In addition, effective on or about September 2, 2022, the Fund will be closed to all purchases by current and new investors, including purchases made through a pre-authorized contribution plan or other investment programs. pre-authorized purchases.

The proposed changes to the Fund are as follows:

Current investment objectives

Proposed investment objectives

The fundamental investment objective of this Fund is to provide long-term capital growth by investing primarily in equity and equity-like securities of companies in certain emerging countries. We can only change the fundamental investment objective of the Fund with the approval of a majority of the votes cast at a meeting of investors of the Fund held to consider the change.

The fundamental investment objective of this Fund is to provide long-term capital growth by investing primarily in equity securities of companies of all sizes in emerging markets worldwide, directly or indirectly. We can only change the fundamental investment objective of the Fund with the approval of a majority of the votes cast at a meeting of investors of the Fund held to consider the change.

Current fund name

Proposed fund name

HSBC BRIC Equity Fund

HSBC Emerging Markets Fund II

The proposed changes address uncertainty surrounding the Fund’s ability to invest in Russia (one of the four emerging countries in which the Fund currently invests) resulting from ongoing sanctions, government restrictions and market liquidity.

The portfolio management team believes that the proposed changes will allow unitholders to benefit from a broader and more diversified emerging markets strategy while maintaining exposure to the markets in which the fund currently invests.

The Fund’s Independent Review Committee has reviewed potential conflict of interest issues related to the proposed changes and provided the 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.

Prior to the Meeting, a notice and access document will be mailed in September to unitholders of record as of September 20, 2022. The notice and access document will describe the various ways in which unitholders can obtain a copy of the management report. information circular containing full details of the proposed changes. The Notice and Access Document and the Management Proxy Circular will also be available on SEDAR at www.sedar.com and at assetmanagement.hsbc.ca.

Additional details regarding the amendments will also be set forth in Amendment No. 1 to the Simplified Prospectus dated June 27, 2022 and in the amended Fund Facts for the fund, which will be available in the “Investor Resources” section of our website at assetmanagement.hsbc address. .ca or SEDAR at www.sedar.com.

Please consult your advisor and read the simplified prospectus or fund facts before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values ​​change frequently and past performance may not be repeated.

Notes to Editors:

  1. HSBC Bank Canada, a subsidiary of HSBC Holdings plc (“HSBC Group”), is the country’s leading international bank. We help businesses and individuals across Canada do business and manage their finances at home and abroad through four business lines: Business Banking, Global Banking, Markets and Securities , and Retail and Retail Banking. The HSBC Group is committed to becoming net zero in its operations and financed emissions and is working with its customers to accelerate the transition to a low carbon economy.

    For more information, visit www.hsbc.ca or follow us on Twitter: @HSBC_CA or Facebook: @HSBCCanada
  2. HSBC Holdings plc, the parent company of HSBC Bank Canada, is headquartered in London. HSBC serves customers worldwide from offices in 63 countries and territories in its geographic regions: Europe, Asia, North America, Latin America, Middle East and North Africa. With assets of US$2.985 billion as of June 30, 2022, HSBC is one of the largest banking and financial services organizations in the world.
  3. HSBC Global Asset Management (Canada) Limited (“AMCA”) is a wholly owned subsidiary of, but separate from, HSBC Bank Canada and is the Canadian business of HSBC Asset Management. HSBC Global Asset Management (Canada) Limited is the manager and principal investment advisor of the HSBC Mutual Funds. HSBC Investment Funds (Canada) Inc. is the principal distributor of HSBC Mutual Funds. HSBC Mutual Funds are also distributed through authorized dealers.
  4. AMCA is the manager and principal investment advisor of the HSBC Mutual Funds and HSBC Pooled Funds (collectively, the “HSBC Funds”). HIFC is the primary distributor of HSBC Mutual Funds, which are also distributed through authorized brokers. HSBC Pooled Funds are sold only to investors as part of a discretionary investment management service, which requires an investor to enter into an investment management agreement with AMCA or HIFC, or another approved adviser or broker. Commissions, trailing commissions, management fees, investment management fees and expenses all may be associated with mutual fund investments. Please read the prospectus, fund facts, applicable account opening materials and other information before investing. HSBC Funds are not guaranteed or covered by the Canada Deposit Insurance Corporation, HSBC Bank Canada or any other government deposit insurer or financial institution, their values ​​change frequently and past performance may not be repeated. For money market funds, there can be no assurance that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you.

  5. HSBC Asset Management, the parent company’s global asset management business, HSBC Holdings plc, which includes HSBC Global Asset Management (Canada) Limited, invests on behalf of HSBC’s global client base of retail and private clients, intermediaries, companies and institutions through separate accounts and pooled accounts and mutual funds. HSBC Asset Management connects HSBC clients with investment opportunities around the world through an international network of offices in over 20 locations, offering global capabilities with local market knowledge. As of June 30, 2022, HSBC Asset Management managed assets totaling US$595 billion on behalf of its clients.

    HSBC Asset Management is the trading name for the asset management business of HSBC Holdings plc. For more information, visit assetmanagement.hsbc.ca
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