Investors see changes to fund offerings
Royal Bank of Canada (RBC) has finalized the acquisition of HSBC Bank Canada, resulting in significant changes within HSBC’s asset management division.
Effective immediately, HSBC Global Asset Management (Canada) will now operate as RBC Indigo Asset Management, becoming a wholly-owned subsidiary of RBC.
All mutual funds and pooled funds previously offered under the HSBC brand will be rebranded as RBC Indigo Mutual Funds and RBC Indigo Pooled Funds, respectively.
According to RBC’s announcement, several fund series are undergoing changes that affect investors:
- RBC Indigo Strategic Funds: Effective April 1, 2024, these funds (formerly HSBC Wealth Compass Funds) will no longer accept new investors. Existing investors will retain the ability to add to their holdings.
- Premium Series: Premium Series and Premium T Series units of RBC Indigo Funds are scheduled to close to new investors on July 31, 2024. Existing investors within these series can continue adding to their holdings.
- Automatic Switch Program Discontinuation: Effective August 1, 2024, the Automatic Switch Program will be discontinued. This program previously reclassified Investor Series and Investor T Series units to their Premium counterparts based on an investor’s monthly holdings.
RBC said it will provide further details regarding these changes, along with related adjustments affecting RBC Indigo. Additionally, updated Fund Facts for the Funds, dated March 31, 2024, will be made accessible on the official websites of RBC Indigo and SEDAR.
Read more: RBC closes HSBC branches after takeover
As of March 29, specific name changes include:
- HSBC Mutual Funds to RBC Indigo Mutual Funds
- HSBC Canadian Money Market Fund to RBC Indigo Canadian Money Market Fund
- HSBC U.S. Dollar Money Market Fund to RBC Indigo U.S. Dollar Money Market Fund
- HSBC Mortgage Fund to RBC Indigo Mortgage Fund
- HSBC Canadian Short/Mid Bond Fund to RBC Indigo Canadian Short/Mid Bond Fund
A detailed list of the specific name changes is available for reference on both companies’ websites (rbcindigo.com and sedarplus.ca).
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