KEY FEATURES DOCUMENT (For Resident Indian and NRI customers of the Hongkong and Shanghai Banking Corporation Limited, India (HSBC India)) Product - Fidelity Global Real Assets Fund (FGRAF) from FIL Fund Management Private Limited (FILFMPL) General Information Full name of the investment product Name of the issuing Group Company. Contact address and phone number, and details of its regulatory status and licences of the company Aim and nature of the product Fidelity Global Real Assets Fund (FGRAF) The above will be referred to as scheme FIL Fund Management Private Limited (FILFMPL or AMC) 56, 5 th Floor, Maker Chambers VI, 220, Nariman Point Mumbai 400 021 www.fidelity.co.in SEBI vide Registration No. MF/050/05/01 FGRAF is an open-ended, fund of funds scheme which will be primarily invested in Fidelity Funds Global Real Assets Securities Fund (FF-GRASF), an offshore fund. FGRAF portfolio would have the following broad asset allocation characteristics; Asset Category Shares/units of the underlying scheme/foreign securities* Money market instruments and/or liquid/cash schemes of mutual funds registered in Page 1 of 7 Exposure Minimum Maximum 80% 100% 0% 20% SEBI * The Underlying Scheme may have equity exposure through investments in shares, depositary receipts, investment trusts, stapled securities, warrants and other participation rights. The Scheme's performance will be benchmarked against a custom benchmark which is a blend of the following indices - MSCI ACWI Industrials, MSCI ACWI Real Estate, MSCI ACWI Utilities, MSCI Materials and MSCI Energy. The weight assigned to each individual index while calculating the custom benchmark is 20%, 20%, 10%, 20% and 30% respectively.
Following are the broad characteristics of the underlying international fund - Fidelity Funds Global Real Assets Securities Fund 1. FF-GRASF has an investment objective to achieve long term capital growth from a portfolio primarily invested in equity securities (at least 70%) of companies from across the world that provide exposure to commodities, property, industrials, utilities, energy, materials and infrastructure. 2. Upto 20% of FF-GRASF portfolio can consist of investments in Exchange Traded Funds, Exchange Traded Commodities qualifying as transferable securities, bonds, warrants and convertibles. The investors may refer to the Scheme Information Document for the Scheme Specific Risk Factors and Special Considerations in the AMC website. Statements or regular reports issued during the investment period 1. The AMC will issue to the Unit Holder whose application for Purchase/Redemption has been accepted, an account statement specifying the number of units allotted. 2. An account statement will be sent by ordinary post/courier/secured encrypted electronic mail by the AMC to Unit Holder. 3. In case of Unit Holders who have provided an e- mail address, the AMC will send the account statement by way on an e-mail at the e-mail address provided by the Unit Holder. 4. Unit Holders holding units in the dematerialized mode, the Fund will not send the account statement to the Unit Holders. Please read the relevant Scheme Information document (SID) available on the AMC website for more details Any cooling off period (right to cancel investment post-sale) No Page 2 of 7
Details of charges associated with cancellation during the cooling off period Investment Conditions Minimum and maximum initial investment in the product Permissible frequency and amount(s) of subsequent investments Minimum and maximum term for investment The minimum application amount: INR 5,000. The minimum balance to be maintained at all times in the Scheme shall be INR 1,000 or 100 units. The minimum balance to be maintained at all time under the Scheme shall be INR 1,000 or 100 units. If, in course of redemption/switch-out from the Scheme, the balance units/amount available under the Scheme falls below the minimum redemption size requirement, all units in the Scheme would be redeemed/switched-out. For subsequent investments: INR 1,000 per application The product is an open-ended fund and as such customers can exit from the product subject to applicable exit loads. Exit load is 1% if redeemed within 12 months from date of allotment. Although investors can exit from the product subject to applicable exit loads, customers should consider this as a long-term investment and should ensure they have sufficient liquid funds available to meet unforeseen circumstances rather than rely on early withdrawal from the product. Product Particulars Any guarantee or protection on the capital or income from the investment in this product Details of the organisation providing the guarantee or protection Details of any situations in which the protection or guarantee may not apply Charges levied on the customer either initially or during the product life There is NO guarantee or protection on the capital or income from the investment in this product No entry load is charged. Exit load of 1% if exited before 12 months from date of allotment. Page 3 of 7
Fee Schedule Recurring expenses FGRAF has estimated that upto 0.75% of the daily average net assets of the Scheme, will be charged to the Scheme as expenses. Investors shall bear the recurring expenses of the underlying schemes in which the Scheme will invest, in addition to the recurring expenses of the scheme. Performance fee mechanism if applicable The frequency and basis of calculation for interest / returns payable Any component funds which make up the investment product How can the customer find out the current worth of their investment? Investors could incur load charges on two occasions. First, on their redemptions/switch-outs in the options under the Scheme and second, on the Scheme's investment/ redemption/switches in the options under the Underlying Scheme, if any. For the actual current expenses charged to the Scheme, please refer to the website of the Mutual Fund - www.fidelity.co.in As mentioned earlier, FGRAF is an open-ended, fund of funds scheme which predominantly seeks to invest into the units of Fidelity Funds Global Real Assets Securities Fund. 1. The Vs of the Scheme/Plans will be calculated by the Mutual Fund on all business days and details may be obtained by calling the toll-free investor line of the AMC at 1800 2000 400 or 0124 3915655 (at long distance rates). 2. The Fund will publish the Vs, Purchase Price and Redemption Price of the Scheme for a Business Day in at least two daily newspapers with a lag of one day. Does the customer have voting rights in any underlying stock Law applicable to the investment contract 3. The V of the Scheme for a Business Day will also be updated on the immediate Business Day on the website of the Mutual Fund i.e. on www.fidelity.co.in and on the AMFI website i.e. www.amfiindia.com. N.A. Securities and Exchange Board of India (Mutual Funds) Regulations 1996 Page 4 of 7
Legal and regulatory status of the product provider (Portfolio Manager) Methodology for calculating returns for tracker (indexed) products, Early Withdrawal Is it possible to withdraw some or all investment funds? Details of charges or penalties incurred through early withdrawal Procedure for making an early withdrawal Liquidity considerations in the event of early withdrawal Risk Factors Whether the investment value, or income arising, can rise as well as fall? Whether the customer could get back less than their original investment? Possibility of any currency risk Other specific considerations important for customers FIL Fund Management Private Limited, the asset management company, set up under the Companies Act, 1956, having its registered office at 56, 5th Floor, Maker Chambers VI, 220, Nariman Point, Mumbai 400 021 and authorized by SEBI to act as Asset Management Company/Investment Manager to the schemes of Fidelity Mutual Fund The product is an open-ended fund and therefore the customer can make withdrawals in full or in part subject to exit loads. The minimum balance to be maintained at all time under the Scheme shall be INR 1,000 or 100 units. If, in course of redemption/switch-out from the Scheme, the balance units/amount available under the Scheme falls below the minimum redemption size requirement, all units in the Scheme would be redeemed/switched-out. Exit load of 1% if exited before 12 months from date of allotment. The redemption requests can be made by providing specific instruction to the AMC, through the Bank. Investors may directly access the AMC as well Redemption request can be given on any business day. No specific liquidity conditions are envisaged. Yes Yes. As the value of the fund is based on the value of the underlying fund(s) and stocks, it is possible that the market value maybe below the amount originally invested. FGRAF is an open-ended, fund of funds scheme investing in international funds, predominantly into the units of FF-GRASF. The fund is therefore subject to currency risk. As the Scheme will be investing in the underlying scheme which in turn will be investing in equity securities of companies throughout the world Page 5 of 7
which involve a degree of risk, investors should not invest in the scheme unless they can afford to take the risk of losing their investment The Underlying Scheme's performance may also be affected by fluctuations in the general and specific level of interest rates internationally or the change in the credit profiles or credit quality of the issuers. Investment in the overseas market also carries country risks including but not limited to events such as introduction of extraordinary exchange controls, deterioration, bilateral conflict leading to immobilization of the overseas financial assets, Although, the Scheme per se will make investments in the Underlying Scheme, the Underlying Scheme may use derivatives instruments like stock index futures, interest rate swaps, forward rate agreements or other derivative instruments. Usage of derivatives will expose the Underlying Scheme and in turn, the Scheme, to risks inherent to such derivatives What would happen if the underlying fund provider were to become insolvent? Impact of the investment on the customer s overall tax position The insolvency of the Portfolio Manager may not have an impact on the value of the investments as the customer s investments are held in a trust by a custodian and the Investment Manager may not have any right or authority to use the customer s funds to meet the latter s financial obligations or liabilities. However, the Investment Manager s ability to manage funds effectively may be significantly impaired in the eventuality of insolvency. Investors are advised to seek independent tax opinion. Important Information HSBC India is merely facilitating your investments into MF products that are independently managed by the respective product providers. Confirmation Page 6 of 7
I/We have read this Key Features Document and I/we understand the information provided therein and the risks associated with this investment Signature Customer s Name Account Number Date The Hongkong and Shanghai Banking Corporation Limited, India 2006 52/60 Mahatma Gandhi Road, Mumbai 400 001 This publication has been issued by The Hongkong and Shanghai Banking Corporation Limited (HSBC India) in India, for the information of its customers only. This publication does not constitute investment advice or an offer to sell, or a solicitation of an offer to purchase or subscribe for any investment. The information herein is derived from publicly available sources that HSBC India considers reliable but which has not been independently verified. Whilst every care has been taken in compiling the information, HSBC makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of HSBC India only and are subject to change without notice. Opinions expressed herein do not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this publication. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed in this publication and should understand that the views regarding future prospects may or may not be realized. Past performance is not indicative of future results. This document is for HSBC customers only. HSBC makes no representations that the products or services mentioned in this document are available to persons of any other country or are necessarily suitable for any particular person or appropriate in accordance with their local law. Among other things, this means that the disclosures set forth in this document may not conform to rules of the regulatory bodies of any other country and investment in the products discussed will not afford the protection offered by the local regulatory regime in any other country. HSBC India or its affiliates or their officers, directors and employees may have investments in any of the products mentioned in this publication (or in any related products) and may from time to time, add to or dispose off any such investment. Please read the Scheme Information Document provided by the Investment Manager/AMC carefully before investing. For private circulation only. The information contained herein is confidential to the recipients thereof and may not be reproduced or otherwise disseminated. Page 7 of 7