HSBC, Capital Group make fund changes

HSBC Global Asset Management (Canada) Limited (HSBCGAM) has lowered the management fees for certain series of the HSBC Wealth Compass Funds.

The Vancouver-based manager said in a release on Thursday that the management fee for its Investor Series will be reduced by 0.25%; the management fee for its Manager Series, by 0.15%.

The new fees are listed in the firm’s press release.

“Consistent with our commitment to offer Canadian investors a broad lineup of mutual funds, we are revising our pricing structure to be even more competitive,” said Marc Cevey, CEO at HSBCGAM, in the release.

The changes are effective Friday.

Fund changes from Capital Group

Toronto-based Capital International Asset Management (Canada), Inc. (Capital Group) also announced mutual fund fee changes on Thursday.

Effective June 1, Capital Group will implement new management fee tiers on:

• Capital Group Global Equity Fund (Canada)
• Capital Group Global Balanced Fund (Canada)
• Capital Group World Bond Fund (Canada)

The fee tiers allow Capital Group to pass on economies of scale to investors as fund assets grow, the firm said in a release.

A new lower management fee tier will apply to Global Equity Fund assets in excess of $6.5 billion.

For the Global Balanced Fund, a new lower management fee tier will apply to assets in excess of $1.5 billion. Also, the fund’s administration fee has been decreased by 3 basis points as the portfolio’s assets recently surpassed $1 billion, the release said.

A new lower management fee tier will apply to World Bond Fund assets in excess of $500 million.

For a list of the tiers, read the press release.

The tiers will impact those series with negotiated fees, the release said, since the negotiated management fee for Series I units won’t exceed fees payable for Series F units of the funds, and the negotiated management fee for Series O units won’t exceed fees payable for Series A units. The prospectus offers additional details.

Also effective June 1, the annual management fee for Capital Group Emerging Markets Total Opportunities Fund (Canada) will be reduced by 10 basis points. The new annual management fee rates for various series of the fund are listed in the press release.

The management fee reduction will impact the negotiated management fee for Series I units, the release said, since the negotiated management fee for Series I units won’t exceed fees payable for Series F units.

Finally, the risk rating for the Capital Group Canadian Focused Equity Fund (Canada) was changed from “medium” to “low to medium,” following an annual review and in accordance with required CSA methodology. No changes were made to the fund’s investment objective, strategies or management.

For additional changes to the management teams and subadvisors of certain funds, see the press release.