The Bank of New York is seeking to merge four former HSBC Asset Management money funds with four of its BNY Hamilton funds, a move that will reduce the funds annual operating expenses, according to a company filing with the Securities and Exchange Commission.
Pending shareholder approval, the funds, which include the HSBC Cash Management Fund, Government Money Market Fund and U.S. Treasury Money Fund Market Fund, will be merged with the BNY Hamilton Money Fund, BNY Hamilton Treasury and the BNY Hamilton Treasury Money Fund, respectively. The funds are three of eight funds which HSBC passed over to the Bank of New York in September.
As a result of the merger, each funds current annual operating expenses will be reduced. Annual operating expenses for Class A shares of the Cash Management Fund will drop to .49% from .65%. Annual operating expenses for class B and C shares will drop to .49% from 1.34% and 1.50%, respectively. The Government Money Market Fund and the U.S. Treasury Money Market Fund, which offer A shares only, will drop annual expenses to .50% from .65%, according to the proxy.
HSBC named Bank of New York the manager of the funds after it failed to reach an agreement on how it would incorporate several of the Republic Funds, which it acquired in a 1999 merger with Republic Bank, into its lineup of products. HSBC was in negotiations to shift the management of the funds to Wilmington Trust, but that deal fell through in early September. The funds board of trustees then named Bank of New York manager, believing it "presented the best opportunity to enhance shareholder value," according to the proxy.