Why is Hlod transition not obeying screen space?

Hey all,

I’ve got HLODs set up here and am confused as to why they aren’t obeying screen space transitioning. We are using FOV to simulate zooming on both these cameras here. You can see the trees in the background loding as expected but the HLOD group/actor isn’t transitioning. But, as soon as I step/roll forward the transaction happens. Is what is the expected behavior here?

Thanks!

https://dl.dropboxusercontent.com/u/2071787/SQUAD/Pasted%20image%20at%202017_03_03%2001_56%20PM.png

Is the TLDR; that Hlods really use distance under the hood? Is there a way to let them actually use screen space?