Changes to the underlying fund of R236 HSBC Global Equity Climate Change (USD) fund

24 Feb 2025

R236 HSBC Global Equity Climate Change (USD) (the “ILP sub-fund”)

We have been notified by HSBC Global Investments Funds (the “Company”) of the upcoming changes to the underlying fund of the ILP sub-fund named above. These changes will take effect from 30 April 2025 (the “Effective Date”).

Background

The Company is changing the investment objective of the underlying fund of the ILP sub-fund to ensure compliance with new guidelines published by the European Securities and Markets Authority (the “ESMA”) on funds' names using environmental, social and governance (“ESG”) or sustainability related terms. The main purpose of the ESMA guidelines is to enhance investor protection regarding funds named in ways suggesting that they meet certain sustainability standards.

The change

In order to comply with these changes, the underlying fund of the ILP sub-fund will increase its minimum proportion of investments aligned with the environmental or social characteristics promoted by the fund from 70% to 80%.

In addition, the underlying fund of the ILP sub-fund will apply Paris-Aligned Benchmarks (“PAB”) exclusions. 

Please refer to the Appendix in the sample client communication opposite for further details on the PAB exclusions and the updated investment objective following the Effective Date.

These changes will take effect automatically and policyholders do not need to take any action. We recommend that policyholders seek the advice of their usual financial adviser before making any investment decisions.  

We have contacted impacted policyholders and their financial advisers to notify them of the changes; primarily by e-shot, with letters sent by post where we do not hold a valid email, and to those who prefer to receive letters by post.

Should you have any questions regarding this notification, please contact the Investment Marketing Team.