Information on how HSBC Global Asset Management (Canada) Limited is complying with the Canadian Securities Administrators’ prohibition on the payment of trailing commissions to order-execution-only dealers
As of June 1, 2022, regulatory changes will prevent investment fund managers – including HSBC Global Asset Management (Canada) Limited – from paying trailing commissions to order-execution-only (OEO) dealers who do not make a suitability determination, including self-directed brokerages.
To comply with the regulatory changes, we launched a D series of the HSBC Mutual Funds and a DT series of the HSBC Monthly Income Fund and the HSBC U.S. Dollar Monthly Income Fund. The D and DT series do not pay any sales charge or trailing commission to dealers.
On April 22, 2022, all existing unitholders of HSBC Mutual Funds holding Investor, Investor T, Premium or Premium T series units in OEO accounts will be automatically switched to the equivalent D or DT series of the same fund, as applicable. There is no cost associated with this switch.
The attached chart shows the HSBC Mutual Funds and the equivalent D or DT series impacted unitholders will be switched into. You can find information about the D or DT series of the HSBC Mutual Funds in the Fund Facts and Simplified Prospectus, available on SEDAR or on the Fund information and regulatory reports section of our designated website.
If you are an individual investor holding HSBC Mutual Funds in your self-directed account, you should direct your questions to your self-directed brokerage firm.
If you have any questions, please contact us at toll-free: 1-888-390-3333 or by email: email@example.com.
Fund Facts for HSBC Mutual Funds
Fund Facts for HSBC World Selection® Diversified Funds
Fund Facts for HSBC Wealth Compass™ Funds
Fund Facts for HSBC Pooled Funds
Regulatory Reports & Investor Information
Commissions, trailing commissions, management fees, investment management fees and expenses all may be associated with mutual fund investments. Please read the prospectus and Fund Facts before investing. Mutual funds are not guaranteed or covered by the Canada Deposit Insurance Corporation, HSBC Bank Canada, or any other government deposit insurer or financial institution. The net asset values of all mutual funds, including the Funds, change frequently and any past performance may not be repeated. For money market funds, there can be no assurances that such funds 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. Read more