Holders of HSBC American Growth Fund will automatically receive new units in the HSBC American Index Fund as a result of a fund merger.
The HSBC American Index Fund is a passive or ‘tracker’ fund, which aims to provide performance in line with the S&P 500 index - as opposed to using a fund manager to try and beat it. Investors in HSBC American Growth Fund will therefore forego active management of their investment as a result of the merger. However, they will benefit from a lower annual charge of 0.25% compared to 1.5% for the HSBC American Growth Fund.
Investors happy with a passive management style need take no action. However, those who bought the HSBC American Growth Fund for actively managed exposure to the American market should consider the North American funds featured on our Wealth 150 as possible alternatives.
The HSBC American Index Fund is a passive or ‘tracker’ fund, which aims to provide performance in line with the S&P 500 index - as opposed to using a fund manager to try and beat it. Investors in HSBC American Growth Fund will therefore forego active management of their investment as a result of the merger. However, they will benefit from a lower annual charge of 0.25% compared to 1.5% for the HSBC American Growth Fund.
Investors happy with a passive management style need take no action. However, those who bought the HSBC American Growth Fund for actively managed exposure to the American market should consider the North American funds featured on our Wealth 150 as possible alternatives.
