Product Watch: HSBC makes strategy changes

Vancouver-based HSBC Global Asset Management (Canada) Ltd., which manages HSBC Mutual Funds, has changed the investment strategy of HSBC Global Equity Fund. This fund no longer follows an active quantitative strategy; instead, it will invest primarily in equities, including those represented in the HSBC economic scale (world) index. Also, the management and trailer fees for the fund now are lower. The Class A units of the fund now have a management fee of 1.25%, down from 2.25%. The trailer fee for Class A units now is 0.5%, down from 1%. Advisor commissions are 0%-5% for front-end sales. There is no commission for deferred sales or a low-load option at the time of purchase. Minimum investment is $500. HSBC also has proposed to include a mortgage-administration fee in HSBC Mortgage Fund’s operating expenses. If this fee is approved, the fund would pay HSBC Bank Canada a fee equal to 0.1% of the value of the mortgages purchased from HSBC Bank Canada. The fee would be in addition to the fund’s management fees and operating expenses. If approved, the fee will be charged to the fund beginning in July. Advisor commissions are 0%-5% for front-end sales. There is no commission for the deferred sales or low-load option at the time of purchase. Trailing commissions are up to 0.5% for front-end sales. Management fees are 1.35% for A-class units and 0.85% for M-class units. Minimum investment is $500.

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