Vancouver-based HSBC Global Asset Management (Canada) Limited, said Friday it intends to terminate two of the HSBC Pooled Funds.
In addition, it proposes to include a new mortgage administration fee in the operating expenses for the HSBC Mortgage Fund.
The firms says it intends to wind up and terminate HSBC MultiAlpha International Equity Pooled Fund and HSBC MultiAlpha U.S. Small/Mid Cap Equity Pooled Fund on March 31.
The two funds are part of the HSBC Pooled Funds family, mutual funds which are available to investors through discretionary management services offered by HSBC Investment Funds (Canada) Inc., HSBC Private Wealth Services (Canada) Inc. and HSBC Global Asset Management (Canada) Limited.
The termination of the two funds will have no impact on the other funds in the HSBC Pooled Fund family, the firm says.
New mortgage administration fee for HSBC Mortgage Fund
The company proposes to include in the operating expenses for HSBC Mortgage Fund (an annual mortgage administration fee. It is proposed that the fund pay to HSBC Bank Canada a mortgage administration fee equal to 0.10% of the value of the mortgages purchased from HSBC Bank Canada.
The fund’s fundamental investment objective is to invest primarily in residential first mortgages purchased from HSBC Bank Canada and the mortgage administration fee is to cover HSBC Bank Canada’s cost of administering the mortgages. The new fee would be charged in addition to the management fees and operating expenses currently charged to the fund and will affect each series of units of the Fund.
The inclusion of the fee in the fund’s operating expenses is subject to unitholder approval. If approved, the fee is expected to be charged to the fund commencing on July 1.