1] Change in the type and name of various schemes of HSBC Mutual Fund
We would like to inform you that in order to bring uniformity in the practice across Mutual Funds and to standardize the scheme categories and characteristics of schemes, SEBI vide its circular no. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017 and SEBI circular SEBI/HO/IMD/DF3/CIR/P/2017/126 dated December 04, 2017, has issued guidelines for categorization and rationalization of Mutual Fund schemes. Accordingly, following changes will be carried out in certain schemes of HSBC Mutual Fund ('HMF') to align the same with the requirements specified in the aforesaid circular. The Board of Directors of the HSBC Asset Management (India) Pvt. Ltd. (the AMC) and the Board of Trustees (the Trustees) have approved the following changes which will be effective from March 14, 2018 and will be effected in the Scheme Information Document (SID) and Key Information Memorandum (KIM) of the respective Schemes.
A. Change in name and type of Schemes
B. Change in type of Scheme
In terms of SEBI circular no. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017, the above changes will not be considered as change in fundamental attributes of the above mentioned schemes.
2] Change in the name of benchmark indices
Pursuant to change in the name of certain benchmark indices as communicated by CRISIL Limited (CRISIL), the names of the existing CRISIL benchmark indices of the following schemes have been revised as under:
3] Benchmarking of Scheme's performance to Total Return Index
In accordance with SEBI circular no. SEBI/HO/IMD/DF3/CIR/P/2018/04 dated January 4, 2018 on benchmarking of Scheme's performance to Total Return Index, effective from February 01, 2018, it may be noted that the performance of all the schemes of HSBC Mutual Fund have been benchmarked to the Total Return Index variant (wherever available) of respective benchmark Index, as against the Price Return variant of respective benchmark index.
4] Change under the section on Annual Scheme Recurring Expenses'
Investors are requested to note that SEBI vide its circular no. SEBI/HO/IMD/DF2/CIR/P/2018/15 dated February 02, 2018 has clarified that in respect of all the schemes including close ended schemes, wherein exit load is not levied / not applicable, the Asset Management Company (AMC) shall not be eligible to charge the additional expenses of upto 0.20% of daily net assets of the scheme from the date of this circular. Further, existing schemes including close ended schemes, wherein exit load is not levied/ not applicable from the date of this circular.
Accordingly , the existing paragraph on the additional expenses of 0.20% appearing under sub-section B 'Annual Scheme Recurring Expanses', under section IV 'Fees and Expenses', in the SID of existing open-ended schemes of the Fund, is hereby replaced with the following paragraph:
"Additional recurring expenses of upto 0.20% of daily net assets of the scheme towards the investment and advisory fees or various other permissible expenses. However, in accordance with SEBI circular SEBI/HO/IMD/DF2/CIR/P/2018/15 dated February 02, 2018, AMC shall not charge any additional expense of upto 0.20% as per Regulation 52(6A) (c), if exit load under the Scheme, the additional expenses upto 0.20% under Regulation 52(6A) (c), shall be levied, and upon removal of exit load under the Scheme, additional expense upto 0.20% under Regulation 52 (6A) (c) shall be discontinued in compliance with provisions of SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2018/15 dated February 02, 2018."
5] Disclosure of Total Expense Ratio (TER) on the website of the Fund
In order to bring uniformity in disclosure of actual TER charged to mutual fund schemes and to enable the investor to take informed decision, SEBI vide its circular no. SEBI/HO/IMD/DF2/CIR/P/2018/18 dated February 05, 2018 has issued certain guidelines for changes in TER and disclosure thereof. Accordingly, the AMC would update the current expense ratios on the website at least three working days prior to the effective date of the change. This information is available on the AMC's website at WWW.assetmanagement.hsbc.com/in
This Notice-cum-Addendum forms an integral part of the SID and KIM of the Fund, as amended from time to time. All other terms and conditions except as mentioned above, of the respective Scheme(s) remain unchanged.
Applicants/Unit holders may contact our Investor Service Centers/their distributors, for any additional information/clarifications. Also, please visit our website WWW.assetmanagement.hsbc.com/in for any other related information.
(Mutual Fund investments are subject to market risks, read all scheme related documents carefully.)