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HSBC Corporate Money Funds Limited Announcement to Shareholders of Euro Fund Class A, Class B and Class R (the “Fund”)
Hamilton, Bermuda: 10 July 2012 -
Dear Shareholder,
HSBC Corporate Money Funds Limited – Euro Fund Class A, Class B and Class R (the “Fund”)
Following the announcement on 5 July 2012 by the European Central Bank that the three main eurozone interest rates will be lowered, HSBC Global Liquidity Funds plc in which the Fund is fully invested has decided that in the interests of existing shareholders, no new subscriptions or switches will be accepted after the dealing close on 10 July until further notice.Pursuant to the powers set out in the prospectus of the Fund this letter serves to advise shareholders that with immediate effect and until further notice no new subscriptions or switches into the Fund will be accepted.
During the period of suspension, existing shareholders will be able to redeem and re-subscribe back up to their total number of shares held in the Fund at the point when the subscription restriction is put in place.
No restrictions on redemptions or switches out of the Fund will be placed on existing shareholders, redemptions and switches out can continue in accordance with the provisions set out in the prospectus.
The rate cutting actions of the European Central Banks could see overnight investment rates with high quality banks go into negative territory. The restriction on subscriptions into the Fund has been put in place to protect existing investors from yield dilution. There will be no change to the investment objective or management of the Fund as a result, which continues to be managed for security of capital and daily liquidity.
HSBC Global Liquidity Funds plc will continue to review the situation, and will consider opening to new subscriptions when it deems that this will not disadvantage existing investors. At such time, the Fund will also reopen to new subscriptions.
The Fund’s Net Asset Value per share will continue to be calculated in accordance with the methods set out in the prospectus.
If you have any questions, please contact your local HSBC Relationship Manager.
Yours faithfully,
Ms. Faith A. Outerbridge
Director
For and on behalf of
HSBC Corporate Money Funds Limited