Publish Date:
HSBC Mutual Fund has launched an open-ended fund of fund scheme - HSBC Global Equity Climate Change Fund of Fund.
The scheme will be investing its assets in an underlying thematic fund which focuses on climate change. The scheme will invest predominantly in the units of HSBC Global Investment Funds - Global Equity Climate Change.
HSBC Global Equity Climate Change Fund of Fund seeks to provide long term capital appreciation by investing predominantly in units of HSBC Global Investment Funds-Global Equity Climate Change. The Scheme may also invest a certain proportion of its corpus in money market instruments and / or units of overnight / liquid mutual fund schemes, in order to meet liquidity requirements from time to time.
However, there is no assurance that the investment objective of the Scheme will be achieved.
HSBC Global Equity Climate Change Fund of Fund is mandated to invest 95% to 100% of its assets in Units issued by HSBC Global Investment Funds - Global Equity Climate Change. 0% to 5% of the net assets can be held in Money Market instruments (including TREPS & reverse repo in government securities) and units of domestic overnight / liquid mutual funds.
Accordingly, HSBC Global Equity Climate Change Fund of Fund will invest predominantly in the units of HSBC Global Investment Funds - Global Equity Climate Change.
In order to meet liquidity requirements from time to time the Scheme may also invest a certain proportion of its corpus in money market instruments and / or units of overnight/liquid mutual fund schemes managed by the AMC or in the schemes of any other mutual fund, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing Regulations.
Money market instruments include commercial papers, commercial bills, treasury bills, Government securities having an unexpired maturity up to one year, call or notice money, certificate of deposit, usance bills, Tri-party REPO (TREPS) and any other like instrument as specified by the Reserve Bank of India from time to time. The Scheme shall not participate in repos in corporate debt securities.
About underlying scheme: HSBC Global Investment Funds - Global Equity Climate Change
HSBC GLOBAL INVESTMENT FUNDS (HGIF) is an investment company incorporated in the Grand Duchy of Luxembourg and qualifies as an Undertaking for Collective Investment in Transferable Securities (UCITS) complying with the provisions of Part I of the 2010 Law.
HSBC Global Investment Funds - Global Equity Climate Change is the sub fund of HGIF where funds collected by HSBC Global Equity Climate Change Fund of Fund will be invested.
HSBC Global Investment Funds - Global Equity Climate Change aims to provide long term total return by investing in companies that may benefit from the transition to a low carbon economy. The Underlying scheme aims to do this with a lower carbon intensity and a higher Environmental, Social and Governance (ESG) rating, calculated respectively as a weighted average of the carbon intensities and ESG ratings given to the issuers of the Underlying schemes investments, than the weighted average of the constituents of the MSCI AC World Net index.
The Underlying scheme invests in normal market conditions a minimum of 70% of its net assets in equities and equity equivalent securities of companies with revenue exposure to Climate Transition Themes which are domiciled in, based in, carry out business activities in, or are listed on a Regulated Market in, any country including both developed markets and Emerging Markets.
The Underlying scheme may invest up to 10% of its net assets in China A-shares through the Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect and up to 10% of its net assets in CAAPs.
The Underlying scheme's maximum exposure to China A-shares (through the Shanghai-Hong Kong Stock Connect, the Shenzhen-Hong Kong Stock Connect or CAAP) and China B-shares is 20% of its net assets. The Underlying scheme will not invest more than 10% of its net assets in CAAPs issued by any single issuer of CAAPs.
The Underlying scheme normally invests across a range of market capitalisations without any capitalization restriction.
The Underlying scheme may invest upto 10% of its net assets in eligible closed-ended Real Estate Investment Trusts (REITs). It may also invest up to 10% of its net assets in units or shares of UCITS and/or other Eligible UCIs (including other Underlying schemes of HSBC Global Investment Funds)
HSBC Global Equity Climate Change Fund of Fund’s performance will be benchmarked against MSCI AC World Index TRI (Total Return Index).
The fund will be managed by Mr Priyankar Sarkar (For Overseas Investments) and Mr Kapil Punjabi (For Fixed Income).
The NFO opens for subscription on March 03, 2021, and closes on March 17, 2021. The scheme will reopen for continuous sale and repurchase on March 30, 2021.
The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).