Fund Closures - HSBC Legacy Retention fund range
As a result of a review, we will be closing the HSBC Legacy Retention fund range and transferring all holdings into alternative funds on 7 March 2018.
Which funds are closing?
The funds that will be closing on 7 March 2018 and alternative funds selected are as follows:
| Closing Fund | Receiving Fund |
|---|---|
| European Equity EUR - BFHLR | Continental European Equity EUR - SR |
| Global High Yield Bond USD - BFHLR | US Currency Reserve USD - SR |
| World Selection 1 EUR - BFHLR | Cautious Managed EUR - SR |
| World Selection 2 EUR - BFHLR | Cautious Managed EUR - SR |
| World Selection 2 GBP - BFHLR | Cautious Managed GBP - SR |
| World Selection 3 GBP - BFHLR | Cautious Managed GBP - SR |
| World Selection 3 USD - BFHLR | Cautious Managed USD - SR |
| World Selection 4 GBP - BFHLR | Balanced Managed GBP - SR |
| World Selection 5 GBP - BFHLR | Adventurous Managed GBP - SR |
With immediate effect the above funds are closed to new subscriptions/switches in, however policyholders can still sell out of/switch out of the funds ahead of the closure date.
The action we will be taking
On 7 March 2018, we will transfer policyholders from the closing funds into an alternative from the fund range available to their product.
The alternative funds have a broadly similar investment objective and investment risks comparable to those of the closing funds, with the exception of Global High Yield Bond USD - BFHLR, which does not have an equivalent fund into which to switch; in this instance we have selected the US Currency Reserve USD - SR fund, a money market fund, as receiving fund.
Policyholders invested in the closing funds have been written to. Full details, including which default receiving fund we will transfer policy values into can be found in the sample letters opposite.
Alternative fund options
Should policyholders not wish to be switched into the receiving fund they can choose to switch into any of the funds available to their policy by completing and returning the relevant switch instruction form before 3pm UK time on 5 March 2018.
Details of the funds available can be found in the Fund Centre page for each product. A Switch instruction form can be obtained from the Downloads tab.
However, if policyholders are happy to accept the receiving fund then they do not need to do anything.