Vancouver-based HSBC Global Asset Management (Canada) Ltd. (HSBC GAM) announced Thursday that it intends to merge several funds within the HSBC Pooled Fund range.
It is proposed that the HSBC MultiAlpha Canadian Bond Pooled Fund will merge into the HSBC Canadian Bond Pooled Fund, and that the HSBC MultiAlpha Canadian Small Cap Equity Pooled Fund will merge into the HSBC Canadian Small Cap Equity Pooled Fund.
The funds have the same investment objectives, are substantially similar in their mandates, and share the same investment advisor or sub-advisor as the continuing funds. The mergers are intended to be implemented on a tax-deferred basis.
The anticipated effective date for the proposed mergers is June 14, 2013, subject to the review and approval of the Independent Review Committee (IRC) of the HSBC Pooled Funds.
The proposed merger has potential to benefit unitholders by creating larger pools of assets, HSBC GAM says. This may reduce the administrative and regulatory costs of operating each fund as a separate mutual fund, and may also enhance the portfolio management efficiency of these consolidated funds.
The proposed mergers will have no impact on the other funds in the HSBC Mutual Fund or HSBC Pooled Fund families.
Units of the HSBC MultiAlpha Canadian Bond Pooled Fund and HSBC MultiAlpha Canadian Small Cap Equity Pooled Fund are only available to investors through discretionary accounts managed by HSBC GAM, or an affiliate of HSBC GAM.
Up to the end of the last day before the effective date of the mergers, units of the HSBC MultiAlpha Canadian Bond Pooled Fund and HSBC MultiAlpha Canadian Small Cap Equity Pooled Fund will continue to be available for purchase for these accounts, and clients who hold units of the funds in their accounts will be permitted to redeem their units by contacting their relationship manager at HSBC.