REG - HSBC Global Funds - Notice to Shareholders

HSBC HoldingsAnnouncement

07/02/2025 18:30

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RNS Number : 4156W  HSBC Global Funds ICAV  07 February 2025

 

07 February 2025

 

 

HSBC Global Funds ICAV

 

Shareholder Notice

 

 

This announcement is important and requires your immediate attention. If you
are in doubt as to the action you should take you should seek advice from your
stockbroker, bank manager, solicitor, accountant or other independent
financial adviser. If you have sold or transferred all of your shares in the
Fund referred to below, please pass this announcement at once to the purchaser
or transferee or to the stockbroker, bank or other agent through whom the sale
or transfer was effected for transmission to the purchaser or transferee as
soon as possible.

 

This announcement has not been reviewed by the Central Bank of Ireland (the
"Central Bank") and it is possible that changes may be necessary to meet the
Central Bank's requirements. The board of directors of the Company (the
"Directors") accepts responsibility for the information contained in this
announcement.

 

Capitalised terms used in this announcement and not defined shall having the
meaning given to those terms in the Prospectus.

 

Dear Shareholder,

 

We refer to HSBC Global Funds ICAV - Global Aggregate Bond UCITS ETF (the
"Sub-Fund") of which you are a Shareholder. Please see the Appendix for a list
of share classes and their ISINs.

 

The purpose of this announcement is to notify you of our proposal to increase
the proportion of the Sub-Fund that may be subject to securities lending
arrangements, as detailed below, which will take effect on or around 7 March
2025 (the "Effective Date").

 

No action is required by you as a Shareholder in relation to this change.

 

Increase in proportion of the Sub-Fund subject to securities lending

Securities lending involves lending securities held in the portfolio of a
sub-fund for a set period of time to willing, qualified borrowers who have
posted collateral. A sub-fund receives a fee from the borrower that is treated
as income and can enhance a sub-fund's performance.

The supplement for the Sub-Fund currently permits up to 30% of the Sub-Fund's
assets to be subject to securities lending. It is proposed to increase this
proportion to a maximum of 50% from the Effective Date.

 

Rationale for the increase in securities lending

Shareholders are expected to benefit from enhanced performance due to the
expected increased income generated through the fee paid by the borrowers to
the Sub-Fund for lending additional securities. Securities lending is standard
market practice for collective investment schemes and many of HSBC's peers
permit their sub-funds the flexibility to subject up to 50% of their assets to
securities lending arrangements.

 

Risks and mitigation associated with securities lending

In lending its securities, the Sub-Fund is subject to the risk that a borrower
may not fulfil its obligations or go bankrupt leaving the Sub-Fund holding
collateral worth less than the securities it has lent, resulting in a loss to
the Sub-Fund.

 

As with any extensions of credit, there are risks of delay and recovery.
Should the borrower of securities fail financially or default in any of its
obligations under any securities lending transaction, the collateral provided
in connection with such transaction will be called upon. However, the Sub-Fund
could experience delays and costs in recovering the securities loaned or in
gaining access to the collateral.  The collateral will typically be
maintained at a value of at least equal to the market value of any securities
loaned. However, in the event of a sudden market movement there is a risk that
the value of the collateral may fall below the value of the securities
transferred.

 

Impact

The investment objective, policy, strategy and risk profile of the Sub-Fund
are not materially impacted by the proposed increase. The increase will not
have an impact on the fees payable by Shareholders.

 

As stated above, no action is required by you as a Shareholder in relation to
this change. You do not need to take any action on receipt of this
announcement. However, if the change described in this announcement does not
suit your investment requirement, you may switch your shareholding to any
other Sub-Fund within the ICAV range or redeem your investment free of charge.

 

Should you have any questions relating to the content of this announcement,
you should contact the Company or the Administrator or, alternatively, you
should contact your investment consultant, tax adviser and/or legal adviser,
as appropriate.

 

Additional information relating to the Sub-Fund are available by choosing your
local website at www.global.assetmanagement.hsbc.com
(http://www.global.assetmanagement.hsbc.com) or from the registered office.

 

Copy of the notice issued to the Registered Shareholders has been submitted to
the National Storage Mechanism and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .

 

Yours sincerely,

 

 

Director

For and on behalf of

the ICAV

 

Appendix

 

 Share Class   ISIN
 ACH           IE00BF0Q3D68
 BCH           IE00BF5DZ143
 BDHGBP        IE00BF5DZ697
 ETFCH         IE0007SZHO07
 ETFCHCHF      IE000AE3TNP7
 ETFCHEUR      IE0006CHRED6
 ETFSHCHF      IE000MOQIQ25
 ETFSHGBP      IE0009RYSBF2
 HCHKD (HUSD)  IE00BJXS6M75
 S2CHGBP       IE00BGWL6D79
 S2QHGBP       IE00BGWL6F93
 S5CH          IE00BF5DZ259
 S5CHCHF       IE000OOKK075
 S5CHEUR       IE00BF5DZ473
 S5DH          IE00BD720769
 S5DHEUR       IE00BD720876
 S5DHGBP       IE00BF5DZ580
 S5SHEUR       IE000052HRW4
 S6CHCHF       IE000KK4WM10
 SCH           IE00BFMN8F25
 SCHEUR        IE00BFMN8H49
 SDH           IE00BFMN8G32
 SDHEUR        IE00BFMN8J62
 XCH           IE00BF5DZ366
 XCHEUR        IE000G7EB0X5
 XCHGBP        IE000LD0VIX1
 ZQH           IE0000PWZZR8

 

 

 

Further Information

 

 HSBC Global Funds ICAV  3 Dublin Landings, North Wall Quay, Dublin 1 Ireland  +353 1 635 6000*
 J&E Davy (Sponsor)                                                            +353 1 679 6363*

 Brian Garrahy

 

 

* Calls may be recorded

 

 

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