HSBC writes off its fund with a focus on the Far East

HSBC is writing off its fund with a focus on the Far East as enthusiasm for geographic products wanes. H4ZI It will be HSBC AM’s second geo-closing in three months.

HSBC MSCI EM Far East UCITS ETF (H4ZI) It closes on July 6 after delisting from the exchanges the day before. The company said primary market creation and redemption in HMFE will be possible until July 4, while the last day for the ETF to trade in the secondary market will be June 30.

The HSBC AM Board of Directors is entitled to redeem all shares and close the fund if its net asset value falls below $50 million. At the time of writing, HMFE has assets under management (AUM) of $23 million, according to data from ETFLogic.

The company said in a statement to shareholders: “The fund is less than this limit and therefore the directors decided to forcibly redeem the shares and close the fund as of the closing date.

He added, “In making this decision, the Board of Directors also took into account the low level of investor demand for the fund, and considered that it was unlikely that the fund’s net assets would increase sufficiently in the future to justify the continuation of the fund.”

HSBC AM said investors will receive their funds within 10 working days of the ETF’s redemption. The company will bear the legal and administrative costs involved in closing the product, but the investors will absorb the transaction costs associated with liquidating the assets.

H4ZI It will be the latest victim of lower demand from investors in HSBC AM’s Geographic ETF. In March, HSBC announced the write-down of its fund HSBC MSCI South Africa Capped UCITS ETF (H4ZQ) after he fell “Below its economically viable size” With assets under management of $5.3 million.

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